REPORT

 

OF THE

 

BOARD OF DIRECTORS

 

TO THE STOCKHOLDERS

 

OF THE

 

BEAVER MEADOW RAIL ROAD & COAL CO.

 

January 8, 1844.

 

_________________________

 

Philadelphia.

 

ELLIOTT'S PUBLIC PRINTING OFFICE, 51, CHESTNUT STREET.

 

REPORT

 

Of the President and Directors to the Stockholders of lie Beaver Meadow Bail Road and Coal Company.

________________

 

The undersigned in presenting the annual statement of the affairs offairs of' the Company, respectfully refers the Stockholders to the last yearly Report, which was made by the late President, H. Budd, Esq. for much valuable information, and for a more detailed description of the property and works than is proposed to give now. It would be an unnecessary repetition of information, to which the Stockholders have ready access, as a number of copies of that Report yet remain in the office for distribution. Peculiar circumstances have afforded to the undersigned, but a very limited period for preparing a Report, and he is therefore obliged to be as concise as possible.

 

A satisfactory contract having been made with Van Cleve & Co., at the usual time, in Oct'r. 1842, the Board of Managers had every reason to form the most favourable anticipations of the business of the coming year. They fully calculated on getting down upwards of 70,000 tons of Coal, which they every reason to believe could be sold at a fair remunerating profit. A breach in the Delaware Canal, at the opening of the season, which occasioned a delay of two weeks, was the first unpleasant difficulty which occurred; but, a much more serious arid disastrous interruption soon after followed; and just at the time too, when our Coal, in consequence of its acknowledged excellence, and the very superior manner in which it vas prepared for market, was being eagerly sought after by foreign dealers. The boatmen who were employed in bringing the coal to market, by the different companies of the Lehigh region, turned out for higher freights. Every endeavour was used, by, the officers-of our Own Company, and others interested, to convince them of the great impohicy of persisting in such a course. The injustice and folly of this attempt at coercing the companies into higher wages than the low prices of Coal would justify, was ably represented to them by the then President and present Treasurer of this Company, but for a long time without any visible impression. They persisted in their extravagant demands for upwards of six weeks. At last, however, by unremitting exertions, involving a partial advance in freight, the boatmen employed by us, consented to go again to work. The others, soon after, followed, and the usual routine of bringing Coal to market was resumed. But in the interim, a very serious loss to us had been the consequence. Under the great uncertainty of a resumption of boating, it had been judged proper to suspend sales of our Coal in advance. The dealers in the Coal of another Coal region, under no such difficulty of getting their Coal to market, had, in consequence, been able to forestall us in sales thus suspended, as our customers at a distance, found it too great a sacrifice of their interest to wait on our uncertainty. The loss has therefore been great to us-making, within a low calculation, a difference of 15,000 Tons, and at prices too, which would have afforded a much better profit than sales made in the after part of the season, when freights had advanced, when every one engaged in the business was anxious to find customers, and when competition had rendered profits almost nominal. We have, however, been able to sell this season, under every disadvantage, upwards of 55,000 Tons of Coal, and to those too, who we find are desirous to deal more largely with us in the coming season.

 

The propriety of renting the mines, insteading of contracting for the mining and transportation of Coal, had often been a subject of discussion by the President and Managers; and under favourable circumstances, it had generally been conceded to be the best. It had been for more than a year strongly urged upon the attention of the Managers; and on the 29th of September last, a majority of the Board came to the conclusion, to direct the President to advertise for proposals. It was supposed, that from the excellent order, in which it is well known our Works are maintained, and the high character which our Coal has acquired, that we should find no great difficulty in obtaining offers. Such, however, was not the case. Not a single proposal was received; which can probably be accounted for by the uncommonly low prices which Coal had been sold at during the past season, the uncertainty of future operations, and the difficulty persons willing to propose would have had in procuring the requisite capital to engage in such extensive business. Such, however, being the result of the determination to advertise, the Board again turned their attention to the prospect of making a contract for the ensuing season.

 

A new contract is now negociating with VAN CLEVE & Co., upon terms more favourable to the Company than any preceding one, and which if fully carried out, will, we hope, enable the Board to make a much more flattering statement at the conclusion of the coming season, than, they regret to say, from causes already stated, they are able now to do. One necessary condition, however, of the favourable terms alluded to, was the advance of a considerable sum of money, to satisfy pressing demands which could not be otherwise controlled by the Contractors; and, also, for the purpose of enabling them to prepare for the execution of the contract on the most economical terms. This, at first, seemed a serious difficulty, but was surmounted by several gentlemen of the Direction, undertaking to risk their personal responsibility for the amount. The Contract, which yet requires the adjustment of some matters of detail, will probably soon be perfected; and it is hoped that the persevering energies of the New Board of Managers will be directed to carry it out successfully.

 

Early in September last, HENRY BUDD, Esq. was induced by the pressure of his own business, to resign the office of President: though remaining a Director of this Company. The undersigned was, very unexpectedly to himself, elected by the Board of Managers, to supply the vacancy thus occasioned, and with the view of informing himself more particularly of the state of the property, in the month of October following, he visited the Works at Beaver Meadow, accompanied by the Secretary, Mr. CHAMBERLAIN. They examined the Mines, Workshops and Rail Road, and were gratified to find every thing connected with the property of the Company in the best order. The Rail Road is maintained in excellent condition; the transportation of the Coal upon it by other Companies is considerable, and has every prospect of being increased, in amount, during the coining season.

 

In conclusion, the undersigned will remark, that the prospect of business for the ensuing season, under the contract about completed appears to be of a very favourable character. Our Coal has obtained in this and the Eastern market, a deservedly high reputation, and is much sought after. Numerous letters that have been received from customers at the conclusion of the season, speak warmly in its praise, and express a desire to receive their future supply from us. This increasing reputation is in a great measure attributable to the unremitting attention of our Officers and Agents, to the handsome manner in which the Coal is prepared by the admirable Coal-breaking Machine, invented by VAN CLEVE & Co., at Beaver Meadow, and to the great care exercised at all points of our Works, in extracting from it slate dirt, and all other impurities. This watchful care must be maintained, this close attention must be persisted in, and the Beaver Meadow Coal will continue to claim and possess that high character in public estimation, to which, from its intrinsic excellence and admirable preparation, it is justly entitled.

 

                                   JAMES ROWLAND,

                                                                              President

All which is respectfully submitted..

 

               January 8th, 1844.

 

 

December 28, 1843.         L. CHAMBERLAIN, Sec'y

 

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