REPORT

 

OF THE

 

BOARD OF DIRECTORS

 

TO THE

 

STOCKHOLDERS OF THE BEAVER MEADOM

 

RAILROAD AND COAL COMPANY,

 

JANUARY 20, 1845.

 

TOGETHER WITH THE

 

Proceedings of the Meeting of the Stockholders

 

HELD JULY 11, 1844, AND JANUARY 20, 1845.

________________

 

PHILADELPHIA:

 

 

ELLIOTTS PUBLIC PRINTING OFFICES, 51 CHESTNUT STREET

 

1845

 

BEAVER MEADOW

 

RAILROAD AND COAL COMPANY.

 

STOCKHOLDERS' MEETING, JULY 11, 1844.

 

A MEETING of the Stockholders of this Company was held this day at 10 o'clock, A.M.

John Price Wetherill, Esq., was called to the chair, and Benjamin S. Riley appointed secretary.

A motion was made by W. W. Cook, and seconded by John Cook, that this meeting adjourn till this day four weeks; and the question being put, the motion was lost.

A motion was made by John M. Barclay, and seconded, that the report of the committee appointed at the last stockholders' meeting, in January last, to examine into the affairs of this Company, be now read; which motion was adopted.

The above motion having been adopted, the chairman of that committee, W. W. Cook, was called upon to read that report; which he refused to do, either to rend it himself, or to have it read, after the other member of the committee who signed the report had requested it to be handed to the chairman of the meeting, to have it read.

On motion made and seconded, it was resolved, that whereas some remarks have been made by W. W. Cook, that the Directors have interfered in having a full representation of the stockholders present at this meeting, that the names of all the stockholders present at this meeting be taken down; which was done -- thirty-rive stockholders being present.

On motion mule and seconded, it was resolved, that the stockholders present at this meeting have as yet heard nothing to impair their confidence in the Directors of this Company.

On motion (of Gideon Scull) made and seconded, it was resolved, that a committee of three be appointed to investigate the affairs of this Company, in consequence of the chairman of the former committee refusing to give to this meeting the report of said committee, and report an adjourned meeting of the stockholders, to be held whenever the committee are prepared to call such meeting; whereupon the following committee were appointed Joseph J. Sharpless, Benjamin Davis, and Benjamin W. Richards, Esqs.

On motion made and seconded, it was resolved, that the publication of the minutes of this meeting be referred to the Directors, with power to publish the same, with the exception of the names of the stockholders present, if they should deem it necessary.

The president of the Company stated that he was prepared to lay before the meeting a report in regard to the supplement to the charter, renewal of the loan, and other mailers.

But on motion made and seconded, it was resolved, that this meeting do now adjourn, as any of the stockholders who wished to see that report could see it at any time.

BENJAMIN S. RILEY,

Secretary.

____________________________

 

STOCKHOLDERS' MEETING, JANUARY 20, 1845.

 

ANNUAL Meeting of the Stockholders of the Beaver Meadow Railroad and Coal Company, held January 20th, 1845, at Philadelphia.

On motion of Benjamin Davis, Esq., William L. Schaffer, Esq., was called to the chair, and Benjamin S. Riley appointed secretary.

The report of the president and directors was read.

Also a report of the secretary in regard to the report of the committee on examination, as published by W. W. Cook.

Also a letter from Francis R. Wharton.

And a letter from Benjamin S. Riley, in regard to the report of the committee.

On motion made and seconded the following resolution was passed. Resolved, that the report read by the president be approved, and together with all the documents read, be referred to the directors, with power to publish the whole, or such parts thereof as in their opinion may be best calculated to promote the interests of the stockholders.

The following resolution, offered by W. W. Cook, seconded by H. Budd, was passed. Resolved, that all annual balance sheets not recorded n the leger be copied therein, and that this practice be continued under the especial supervision of the president.

The following resolution, offered by W. W. Cook, and seconded by H. Budd, was lost unanimously: Resolved, That the president and directors of this company petition the legislature without loss of time, for an act which shall enable stockholders holding five hundred shares to convene a meeting.

The following resolution, offered by W. W. Cook, and seconded by Gideon Scull, was lost unanimously: Resolved, That a committee of stockholders be appointed to ascertain the annual net earnings of the railroad, and decide the question as to the propriety of discontinuing the coal business, and depending upon receipts from a lease of the coal mines, and earnings of the railroad.

The following resolution, offered by \V. W. Cook, seconded by Gideon Scull, was lost unanimously: Resolved, That the salaries of the president, treasurer, and secretary, be reduced twenty-five percent, and shall not be increased without the concurrence of the stockholders.

[The following resolutions were offered by W. W. Cook, but not seconded: Resolved, That no interest shall be paid by this Company on certificates of loan, held by sundry individuals, which originated in a sale of two thousand shares of Beaver Meadow stock, by Charles Macalester and others, to the Morris Canal and Banking Company, 19th September, 1838, and as recorded in the minute book of the Beaver Meadow Company. Also resolved, that should any suits be instituted against this Company by persons claiming under said certificates, the managers of this Company shall employ eminent counsel to defend the same.

The following resolution was offered by W. W. Cook, but not seconded. Resolved, that C. Macalester and others, copartners in a sale of two thousand shares of Beaver Meadow stock to the Morris Canal and Banking Company, September 19th, 1838, amounting to $102,000, repay to this company that amount, with interest from date of sale till paid, and in consideration thereof receive from this Company two thousand shares of stock, which the officers are hereby empowered to issue and apportion to C. Macalester and others, according to their respective interests, and as shown by the books of the Beaver Meadow Company.]

On motion made and seconded, a communication from Mr. Scull was received and read; and on motion made and seconded, it was resolved, that it be referred to the President and Directors, with power to publish if they see proper.

Benj. Davis and Benj. S. Riley were nominated for judges. On motion, adjourned.

Benj. S. Riley

Secretary.

 

The following gentlemen were duly elected for the ensuing year, at an election for President and Managers, held by the Stockholders of the Beaver Meadow Railroad and Coal Company, January 20th, 1945.

 

President.

JAMES ROWLAND.

 

Managers.

 

DAVID WE.ATHERLY,                   JACOB R. SMITH,

JOHN LIVEZEY,                            JAMES LE FEVER,

GIDEON SCULL,                           ROBERT PEARSALL,

FRANCIS R. WHARTON,               WILLIAM A. BUDD,

JOHN W. ODENHIEMER,               THEODOPHILUS E. BRESLEY

                                Signed,              BEYJAMIN DAVIS

                                                            BENJAMIN S> RILEY,

                                                                        Judges

 

REPORT

 

OF TIME

 

BOARD OF MANAGERS

 

TO THE

 

STOCKHOLDERS OF THE BEAVER MEADOW RAILROAD AND COAL COMPANY.

 

_______________________

 

THE Board of Managers of the Beaver Meadow Railroad and Coal Company, herewith present to the Stockholders the Annual Report of the present condition and future prospects of the Company.

The administration of its affairs during the past year, has required much watchful attention and responsibility from the Managers and Officers. They have had to contend with frequent difficulties, not only those peculiar to the uncertainties attendant on an extensive coal transportation business, but others of a character equally onerous and unpleasant, but which cannot properly be included in a report of this nature.

It had been confidently anticipated at the time the last annual report was presented that the business of the season then ensuing, would prove quite a cheering and profitable one; this hope was based partly on the expectation of sustaining the prices of the previous year, the increasing demand for coal, and partly upon the comparatively favourable contract we had made. In this hope we have in some measure been disappointed. Early in the season a large amount of coal was thrown into the Eastern market, and sales made by other large operators at a depressed price, for the alleged purpose of raising working capital, or a large sum of money, then peculiarly pressing. This at once gave a tone to the market, and we were obliged to give up the idea of selling at the rates we had anticipated. The evil policy of this course of forestalling sales, however, became apparent to those who had embarks in it, and it was discontinued; but the mischief was done, and price were permanently reduced is hoped that this course will not again be adopted. That we have suffered from it, is much to be regretted, and in consequence of that, and other causes, we may not be enabled to present quite as flattering a statement of last year's business as could be wished.

Before going further, we desire to draw your attention to a statement, the result of elaborate scientific experiments, which justifies and sustains the high character our coal has heretofore borne, and which ranks it first and leading among the anthracite coals of this or any other country. The Report on Coal, recently made by Professor \V. R. Johnson to Congress, contains a vast amount of information, deeply interesting to those engaged in coal operations, and from which the following brief extracts are made: --

" For the purpose of steam navigation, the rank most important to be considered is the fifth, in which the coals stand in the order of their evaporative power under given bulks. This is obviously true, since if other things be equal, the length of a voyage must depend on the amount of evaporative power afforded by the fuel which can be stowed in the bunkers of a steamship, always of limited capacity. At the head of the filth rank stands Atkinson & Templeman's Cumberland Coal," (a bituminous coal) "on the right of which is 5662, the number of pounds of steam produced by one cubic foot of that coal. This number used as a divisor for the whole series, gives the relative value as follows:

 

"It will be remarked that the justly celebrated foreign bituminous coals of Newcastle, Liverpool, Scotland, Pictou, and Sydney, coals which constitute the present reliance of the great lines of Atlantic steamships, are fully equalled or rather surpassed in strength by the analogous coals of Eastern Virginia; that they are decidedly surpassed by all the free-burning coals of Maryland and Pennsylvania; and that an equally decided advantage in steam-generating power is enjoyed by the anthracites over the foreign coals tried, whether we consider them under equal weights or equal bulks."

*Note-the numbers marked with a star * are specimens of Cumberland Coal which is bituminous.

 

In addition to the above extracts we find from a hasty glance at the main report, that in freedom from a tendency to form clinkers, waste from ashes, evaporative power in proportion to bulk, and in rapidity of ignition, our coal stands the very highest of the anthracites. It the least proportion of earthy or incombustible matter of any other coal, bituminous or anthracite. Of its heating powers, Professor Johnson unfortunately had not the ready means of testing, as there was not a single mechanic in the Washington navy-yard that knew how to use it in a blacksmith's forge; but of its superiority on this point there is ample testimony from the various iron-works that have used it.

The result of these experiments, so decidedly showing the excellence of Beaver Meadow coal, is of the greatest interest and importance to this Company. It is, we apprehend, destined to exert a marked and fortunate influence on our future business. We cannot reasonably doubt that our coal will be eagerly sought after in future by dealers in every section of the country, and will command the highest price. And it will be the duty, and doubtless the pleasure of the new board to spread this truly gratifying information throughout every coal market in the country.

It has long been considered a matter of great interest and importance to the Lehigh and Beaver Meadow coal region, that the Morris Canal should be so enlarged as to admit the passage through it or the same boats which are used on the Lehigh and Delaware Canals. And it is now with great satisfaction we can state that this desirable object is about being accomplished. The Morris Canal having been recently sold by the assignees or receivers of the Morris Canal and Banking Company, the present wealthy and enterprising proprietors are now earnestly engaged in the completion of the work of enlargement, which we have the pleasure to state will be finished and open for the passage of sixty-ton boats by the 1st of May. This will yield us such ready access to the New York and Eastern coal markets as will enable us successfully to compete in price with the other coal regions, and more especially so as the policy of the Morris Canal managers in relation to tolls, freights, and other facilities, is understood to be of the most liberal and encouraging character towards our Company.

A supplement to our charter being considered desirable for the purpose of prescribing the manner in which unpaid stock of the Company should be forfeited, inasmuch as the original charter did not appear to be on this point sufficiently explicit, application was made to the Legislature of Pennsylvania at the last session to obtain this modification. The Legislature granted what was asked for, together with such other powers as will appear in the act itself.

For want of clearly understanding the situation of our Company, and a distinct appreciation of its obligations, it has been hastily said by some, that as the profit on coal is at present so slender, the mines had as well not be worked, and the coal be allowed to remain in the veins, until increased price and demand shall warrant its being taken out. This all sounds very plausible, but let us take a brief practical view of the effects that would ensue from such a state of inaction, in the first place, the mines must fill up with water, for the expense of pumping alone would be very considerable, especially as we have no means, but from the mines themselves, to pay for it. Our miners, engineers and machinists would be scattered, their local attachments broken up and to reassemble them would be a difficult task; our stationary engines, locomotives, dwelling-houses, mining tools, car-houses, coal-cars, workshops implements, &c, all deteriorate for want of use and repair, and would have to be renewed at very large outlay, when it might be deemed proper again to commence operations. The rapid decay of an unused railroad is well known. Ours ought, and must be kept in repair, if not for our own use, for the convenience of others. And from whence but the coal mines is this expense to be disbursed, for the tolls would be inadequate? Our taxes too, now about $900 a year, how are they to be paid, with our numerous houses tenantless and unrented? And what, let us inquire, is to become of the interest on our loans and other debts? If not paid it accumulates and becomes a dead weight, to hang like blight upon us, when the times might induce a renewal of mining operations. And can we suppose that we should be suffered to rest in inaction, without an effort to redeem our promises and keep our faith? Certainly not; the whole property would be speedily swept away by the action of our creditors, justly incensed, as they would have reason to be, at our not making use of the means in our power to fulfil our obligations. This course of inaction then cannot be entertained for a moment; we must go ahead, and keeping all things in good order, endeavour to reduce gradually the debt we have been and are yet labouring under, not consequent on bad management, but mainly the unfortunate effect of the great damage we sustained by the ever memorable flood of 1841, by which we incurred a loss of over $50,000. We are then, if we keep moving on, and maintain our position, in a far better situation to take advantage of a favourable turn in the coal trade than if we were to stop, and had then every thing to renew. Our experience as a company in the management of the business is augmenting; and the present board feel well assured that the demand for coal is steadily increasing, that the prices for the coming season will be much better than the last, and that the facilities of transportation and for getting our coal to good markets, are opening and improving, far beyond our previous calculations. The high character of our coal is now placed beyond dispute; it leads the market, and it is, without cavil, estimated beyond any other. This has been proved by the past. Last year we could have sold more than double the quantity we were able to get out, and we did sell 70,000 tons; in fact, we could have sold almost without limit, so great was the demand for it. For two years past we have contracted to supply the United States Navy, who were so well satisfied with the quality of our coal, that in their advertisement for what was required tar the Boston yard, the Beaver Meadow coal was expressly named as the only anthracite coal for which proposals would be received. This itself is high praise, and in addition to which, as already stated, the report made by Professor Walter B. Johnson of his recent investigation into the qualities of coal, undertaken by order of the United States Government, proves conclusively that to the Beaver Meadow coal belongs the palm of superiority.

And with all this to cheer us on, ought we to sit quietly down and cease from our labours, in view too of the great injury to our works which must necessarily follow? Unquestionably not. We must continue our exertions, and success, let us hope, will finally sanction our efforts to act will, justice to those who are entitled to it from our hands, and eventually benefit to ourselves, who have persevered unfalteringly to accomplish it.

It has been said that we are prematurely working out our coal mines, and that in a few years we shall have no coal to mine; and we are led to notice the matter now, as it has been injuriously rumoured, by ill-informed friends, or envious competitors that we have no large amount of coal on our property. This is a great error; our coal beds are, for all practical purposes, inexhaustible. We have at Beaver Meadow 1093 acres of land, the most, if not all of which, is full of coal. The Piatt tract alone, yet untouched, except by boring to ascertain its coal measures, is believed, by every indication of those explorations, to contain many millions of tons. " An opening on the south side of Pismire lull, near its base, has disclosed a vein of coal thirteen feet thick, in a position well suited for furnishing an immense supply of coal, and economical work. The length of the Piatt tract in the direction of this coal vein, is twenty-two hundred yards, and the distance from the crop to the south line of the company's lands, towards which it dips, is eight hundred yards; thus yielding, if the coal be continuous through the basin, more than seven millions of yards from this vein alone. Another vein of about the same thickness has been discovered overlaying the last mentioned, which has the same range in the company's land, east and west, with about six hundred yards north and south. Those may be opened for future extensions of business, but before any other expense can be prudently incurred, their position and direction must be perfectly known, in order that the openings may be made in the right place, that is, where the most coal can be got at, with the toast expense."* In a vein of coal called the Perpendicular Vein, near the present workings, at a moderate calculation, recently made by Colonel Vancleve, there is also at least 500,000 tons of coal. This perpendicular vein can be worked with more economy and facility by the English method of perpendicular shaft working than by our present plan of slopes. This source of supply is not now, however, needed, but will come in play at a future time, when the demand, and the means of the company, are more ample, to incur the necessary expenses.

But there are other parts, near those we have been working, which contain immense quantities of coal. To illustrate this in some measure, let us recur to what we have been doing within the last month or two, with a view of preparing for the business of the next season. It having been reported by the present contractors that a fault had impeded part of the workings, the President and Secretary went up to the mines to decide upon what should he done, as it required prompt action. A mining engineer of great reputation, and who was previously well acquainted with the mines, was joined with them, by authority of the board, to assist in the examination. A report was made by the President and Secretary of the result of their visit. A report was also made by Mr. Fisher, from which it appears that "the coal which has been taken out, has been taken out keeping in view the safety of the mines, and that the workings have been well secured"

 

In all the breastings driven out in gangway No, 1, Seven Foot Vein, the coal continues good, and breaks off abruptly in the gravel without any

 

*Extracted from Mr. Ingham's Report for the year 1837.

 

appearance of crop, and Mr. Fisher tins no doubt but that the vein has been merely broken off, and extends with a different dip from the present workings to Judge Coxe's lands, before it crops out, and will produce to the Company 359,000 tons of coal, the greater part of which can be taken out at slope No. 1. To prove the ground satisfactory shafts and borings were recommended to be made on the high ground, north of the swamp, and a tunnel driven from gangway 1, to prove its position. These explorations have been ordered, and are now going on.

Mr. Fisher also states, that there appears to be another basin, as represented in an accompanying diagram, which will probably produce about 300,000 tons of coal. It can be obtained by putting down a slope and engine near the "stack." These two basins reported on by Mr. Fisher, are in immediate juxtaposition with the present workings; and can be got at without very large outlay, especially the first basin alluded to, which will cost according to his estimate, about $1,700 to communicate with. These few points hastily cited, may serve to show the character of our coal lands, and some of our abundant sources of supply; many others could be particularised if it were at all necessary.

A new contract for the mining and delivery of coal this year, and for the care and superintendence of the railroad and other property of the Company, has been recently entered into with A.H. Vancleve & Co., who are now engaged in preparing a stock of coal, to be ready for transportation at the opening of the boating season.

It may not be uninteresting to the stockholders to hear some information as to the state of our railroad, mines, and other property. That part of the railroad now used is about twenty miles in length, from the mines to Shipping Port, opposite Mauch Chunk, where our coal has been shipped into the boats, since the unfortunate flood of 1841, which destroyed a considerable part of the road below Mauch Chunk, and our former landing at Parryville. It being then deemed expedient to erect a landing at Mauch Chunk, the portion of the road below that place, about six mites in length, was not repaired. On the part of the road now used, are two self-acting inclined planes, rising 1 foot in 11.20, the length of each plane being about 2200 feet they are managed with much ease and economy. The iron above the planes is two by half-inch flat bars, and below them it is two and a quarter inches by five-eighths. The grade above the planes for two miles, is fifty feet to the mile, the remaining four miles nearly level. Below the planes the road for about five miles, to the mouth of the Quakake creek, where it forms a junction with the Lehigh river, is a heavy grade, varying from fifty to ninety feet per mile. The remainder, from Penn's Haven to Mauch Chunk, averages a grade of about twenty feet to the mile. 

Two engines are used above the planes, of seven tons weight each, six wheels with one pair of driving wheels. Load eighteen cars of three tons weight each. Three engines are used below the planes. The weight of two of them is thirteen tons each, with adhesion of all the wheels, (three pair). The road is regulated by the number of empty cars that they can take back, usually about thirty-five cars. The other engine is something smaller. The road cars are without springs, and usually load seven thousand pounds each. The freight of the road is almost entirely down, and almost exclusively coal. The cost of transportation per average of years 1840 and 1841, has been 20.15 mills per ton per mile, a little greater in consequence of the engines anti cars not being fully employed. This expense however, is now included in the price or which the contractors deliver the coal into boats at Shipping Port. The cost of repairs of the road for the same time was nine mills per ton per mile, for the whole tonnage over it, including the amount run over it by the Hazleton Company, the Sugar Loaf Company, &c.

The road is now in the best order, a supervisor being constantly engaged in attending to any repair that may be necessary. The shops belonging to the Company at the town of Weatherly, where we have a large machine shop, foundry, saw-mill, blacksmith shop, and other buildings, together with the valuable fixtures and tools in each, are reported to be in excellent repair, being kept so by the contractors for mining and delivering coal, by the terms of the contract. The large number of dwellings at the mines and at Beaver Meadow belonging to the Company, are also in good repair, and under fair rent to the present contractors. The mines have, we believe, been worked with much carefulness, and a proper regard for the interests of the Company. They are so reported by S. B. Fisher, Esq. mining engineer, in November last.

In the progress of the works during past years, many great difficulties have been encountered and overcome, and much experience has been gained. It may, therefore, be presumed that with the economy resulting from this experience, that many expenses will hereafter be avoided or greatly reduced, and the future business of the Company will have the advantage of facilities obtained by previous labour and outlay, necessarily incurred in bringing our mines and property into their present efficient state.

In concluding this report the Managers desire to observe that they have no disposition either to deceive themselves or others in relation to future prospects, nor to put forth flattering statements which have not just and obvious foundation; and for this reason it is desired that the stockholders should examine for themselves, and judge of the capabilities of the company for future usefulness. And with reference to this subject, it would afford much satisfaction to the managers, if the Stockholders of this Company would take such increased personal interest in the works, as would induce them generally to pay a visit to Beaver Meadow. They could then better appreciate the great value of their property, and the excellent and efficient order and condition in which it now is. They would be better able, also, to estimate the immense mineral wealth and abundant resources of our coal region, and the labour, care, and untiring vigilance, necessary to make them serviceable to the wants of the community.

All this ought to be seen to be fully valued and understood; and apart from a mere pecuniary interest, a summer excursion there would amply repay them, in the renewed health and vigour resulting from the pure air of the mountains. It is a region which possesses great and peculiar attractions; its wild and romantic scenery being unsurpassed for rugged grandeur in this, or perhaps any other country, It is very easy of access, being not more than a day's journey from this city, by way of the Reading and Little Schuylkill Rail Railroad  to Tamaqua, end from thence about fourteen miles in stages to Mauch Chunk or Beaver Meadow.

The accommodations for visitors at our beautiful little town are truly comfortable, there being more than one hotel of excellent character, the proprietors of which are moderate in their charges, and spare no exertions to afford a hospitable welcome to their guests. It is hoped that this invitation will have its effect with the stockholders, and prove the means of awakening an interest in the region which has far too long been suffered to slumber.

By order of the Board of Managers.

JAMES ROWLAND,

President.

Philadelphia, January 20th, 1845.

_________________________

 

L. CHAMBERLAIN.

Secretary.

December 31st, 1844.

 

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