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.