REPORT
OF
THE BOARD OF MANAGERS
OF THE
BEAVER MEADOW
RAIL ROAD AND COAL COMPANY,
TO
THE STOCKHOLDERS:
January, 1846
_______________
PHILADELPHIA:
HOGAN & THOMPSON.-77 CHESTNUT STREET
1846
Ed. This report has not been located
in printed form. Rather, this rendition was constructed from notes that appear
in the 1838 et seq. Minute Books, Page 333 (Pennsylvania State Archives). The shaded text are entries that could
not be recognized from the cursive writing. The numerical values have not been
checked and are susceptible to error.
J.
McV Dec 2006
Report of the Board of Directors to
the Stockholders
of the Beaver Meadow Rail Road and Coal Company
The
Board of Directors herewith present to the Stockholders the annual report of
the present condition and prospects
of the Company. The last report having been prepared win a text to give particular
information as to the state of the property text its future years, was necessarily a full one;
is therefore desired
to make the present statement as brief as possible consistent with a clear
exposition of our affairs and refer the Stockholders to the last report for
many matters of detail we should which it is the deemed unnecessary to repeat
here.
The
business of the Company during the past season, we are gratified to state, has
been carried on with but one serious interruption, which occurred during the
month of October. It was caused by a heavy freshet damaging the Lehigh & Delaware canals to such an extent that the repairs occupy
aid more than two
weeks; by this delay a difference of at least 5000 Tons of coal has been occasioned in the amount
we have been able to bring to market this year; nearly the whole of which
remains upon our wharf at Mauch Chunk; yet by eight persevering exertion we have succeeded in
shipping the past year over 77,000 tons of Coal which has been disposed of at fair remunerating prices;
being any increase of 7000 tons more than we have ever previously shipped in
one season.
The
rail road continues to be maintained in excellent order, nevertheless, as we
have reason to expect that a greatly increased quantity of coal will passed
over our road hereafter. The attention of the Management therefore has been
more particularly directed to the necessity of its improvement. That portion of
the road between the Inclined Planes and Penn Haven, a distance of nearly five miles being much more
traveled by large engines than any other parts of it, now requires close
watchfulness, as the Iron though apparently unworn has become granulated and
consequently more libel to fracture by the continued action of the wheels of
heavy Locomotives drawing larger trains of loaded cars over it. It is is deemed
necessary therefore to commence the renewal of it this year by relaying parts
at a time has the exigencies of travel will permit, and continue this course
until the whole is relaid. The Iron which is taken off can be used with
advantage either on the other parts of this road were lighter power is applied, or for
new turnouts which will soon become indispensable.
During
a visit of the President and a committee to Beaver Meadow early in November
last for the purpose of making arrangements for the business of the succeeding
year, it was announced to them by the firm of Van Cleve & Co. though the then
contractors, that was their desire and determination to settle up their account
with our Company and not again to contract. Thus unexpectedly notified, the
committee directed their immediate attention to other means for ensuring what
had been earnestly desired by the Board, namely an increased business for the
coming season. William Milnes of the firm Wm. Milnes
& Co. who had previously offered to contract to make new openings, being
then at Beaver Meadow, the President requested him to make a full examination
of them Mines with a view to working them. To this he readily assented and was
furnish with every facility for making a satisfactory investigation.
After
his return for the Mines, a negotiation was entered into with him, which was
further prosecuted by the parties on their return to the City and terminated in Wm.
Milnes, George Spencer and text Jones contracting to mind
and deliver coal to us at Shipping Port for the term of three years upon
certain conditions which the Managers are satisfied with will prove of material
advantage to all parties interested. They are to furnish us the first year with
80,000 tons, the second year with 90,000 tons, and the third year with 100,000
tons all of Merchantable Coal, which with that the Lineburners produced
therefrom will further increase the quantity about 15,000 tons annually, and all additional
coal offerings
required to fulfill contract part to be text at their own expense.
The
above mentioned
contractors have also entered into an engagement with the proprietors of these Summit
Coal Co. lands to
work their mines and take from them a very large quantity of coal text. This will be transported
by them over our railroad the from its commencement to Mauch Chunk, to a
distance of 20
miles, their paying us certain stipulated tolls thereon.
If
is also the intention of the Board to work miners from the
coal regions to commence operations on vacant coal lands, and thus increase the revenue of the company by
paying us mine lease for our land and
tolls upon our road. To accommodate the text of travel consequent upon the increased
quantity of coal coming upon our road and to encourage the furtherment of new
operators in our region, it may text long to text
to construct a double track between Weatherly and Penn Haven and most liability
exists of interruption in the text from the circumstances of the Hazleton Road joining ours at
Weatherly. The Catawissa R. Road intersect ours also near the terminus and it is
understood that this road is speedily to be re-laid and text done upon it by the present proportion. The other
portions of our road will probably afford sufficient facilities for some years
to come after laying down a few more turnouts at suitable distances.
It
was in the necessary during the summer to open anew slope into the coal basin
which had been partially worked from No. 5 for the purpose of securing the
immense amount of coal contained below the present workings. This has been
commenced and will now be continued by the present contractors at their own
expense. After the company shall have furnished the engine and some other
fixtures now in progress thus opening into large veins of coal, which Mr.
Fisher in his report
estimated would produce at least 300,000 tons as stated in the Report of last
year.
During
the past season difficulties occasionally occur in shipping our coal in
consequence of the number of boats not being sufficient, and in view of the
greatly increased quantity which is contracted to be mined this year, the
Lehigh Co, our own company, and others have contracted to make advances for the building
of a considerable number of boats suitable for this purpose, which will be ready
for service about the opening of the navigation season. This was absolutely
necessary to be done, or we might have great difficulty in getting our coal to
market the ensuing summer. Our lease from the Lehigh Coal and Navigation
Company for the premises where our Shipping Port is located above Mauch Chunk
being about to expire, the Board has applied for and obtained from that Company
a renewal of it for the further term of Five years from the 1st of
July 1846.
The
large claims which the Girard and United States Banks held against us, have
long been a subject of anxiety to the Managers, hand a possible means of
settlement has often claimed their serious the deliberation. They have recently
had their attention more directly drawn to these claims from the assertion of
the right to 5000 shares of the stock of our company by persons claiming under
the Morris Canal and Banking Company; 3000 Shares of
which Stockholders have been forfeited according to law to the end of the Beaver Meadow Rail Road & Coal
Company, and 2000 shares yet remain standing in the name of the Morris Canal
and Banking Company, but held subject to certain charges against said company
in our books.
The
Board have now much pleasure in congratulating the Stockholders on the
settlement of all these various and conflicting claims. They have succeeded in
making an arrangement with the Girard and United States Banks (with the consent
of the claimants under the Morris Canal and Banking Company) that those Banks
shall accept in compensation and complete extinguishment of all their claims
against us the 3000 forfeited shares at par for the principle of the claim of
$150,000 together with $18,000 of the unsold Loan of this Company for the two
notes given for two years interest on the above sum of $150,000. At the time
the claim accrued and not exceeding 500 Shares of new Stock at par to be issued
by this Company for the interest subsequently accumulated. This interest the
two parties claiming had agreed in the spirit of Compromise to calculate at the
rate of 3 percentum per annum. The above assets are to be divided pro rata
between the Girard and United States Banks. The parties claiming under the
Morris Canal and Banking Co.are to have transferred to them the remaining 2000
Shares of Stock less a sufficient number of Shares to cover the amount of a
claim against the said Company in our books. The above arrangements and
settlement has been conducted under the legal advice and direction of Horace
Pinney and text and
W. Hubbell, Esquires. our counsels, and will relieve the property of this
Company from one of the greatest obstacles to its future usefulness and profit
to the stockholders.
The
following Preamble and Resolution have been prepared by our Counsel for the
action of the Stockholders.
As
a meeting of the stockholders of the Beaver Meadow Rail Road & Coal
Company convened this 19th day of January in the year 1846, the
following preamble and resolution was adopted and passed.
Whereas
by a certain act of the Legislature of the Commonwealth of Pennsylvania
entitled Òa supplements to an act entitled an act to incorporate the Beaver Meadow Rail Road & Coal
CompanyÒ passed on the fourth day of April in the year 1831 it was provided
that it should be lawful for the Beaver Meadow Rail Road & Coal Company to
continue their railroad to any convenient point or place on the Lehigh or down
the valley of the said River to the Delaware Canal at or near Easton, Pa and that if any increase
of Capital Stock be deemed necessary by the Stockholders to complete the said
railroad it shall and may be lawful for the President and Directors of said
Company at a slated or special meeting convened for that purpose to increase
the number of shares so that the Capital of the said Company shall not exceed
eight hundred thousand dollars, and whereas in the year 1839 Beaver Meadow Rail
Road & Coal Company did in order to complete the said railroad in pursuance
of said act of Assembly issue 3000 shares of stock and sold the same to the
Morris Canal and Banking bompany who were negotiated to raise money for the
purpose aforesaid, and whereas the said notes were text at maturity by the said Morris Canal
and Banking Company that, that the said Beaver Meadow rail road and Coal
Company became a libel to pay and take up the same and whereas under and by
virtue of another act of assembly of the Commonwealth of Pennsylvania the said
Beaver Meadow Rail Road & Coal Company have caused the said the three
thousand shares of stock to be forfeited for the non payment of this said Post
notes, and whereas the holders of these said Post Notes are willing to receive
the said 3000 shares thus forfeited, and not exceeding Five Hundred and ten
additional shares of Stock at par in part payment of their said claims and
those said claims having been contracted to raise funds to complete the said
railroad, it is within the power, so confessed by he said supplemental act to issue the said
stock. Therefore by theÉ.
Resolved, That an increase of the Capital stock of the Beaver Meadow
Rail
Road & Coal Company is deemed necessary by this meeting and that
the Board of President and Managers of said Company shell be authorized and
empowered at a slated or special
meeting convened for that purpose to increase the number of shares of the
Capital Stock of said Company to such extent as may be necessary to be issued
to satisfy said debts so controlled as aforesaid at par or any less than number
of shares provided always that such increase shall not with that already issued
cause the whole Capital Stock of the said that Company to exceed $800,000 and
be it further Resolved that all such increase of Stock as may at anytime
heretofore have been made for the purpose aforesaid is hereby declared valid
and confirmed.
In conclusion the Board feel gratified in communicating a
belief to the Stockholders that a reasonably fair prospect exists of their
receiving at no very distant day some remuneration for the long suspension of
profit on their stock. If Clove maintains its price, and no adverse events
ensue of a character now unforeseen, and which the Board cannot be expected to
anticipate, they see no sufficient reason why that desirable result should not
be realized.
By direction of the Board Hall of
Managers
January 15th 1846
James Rowland
President
January
5th 1846
L. Chamberlain, Secretary
Go
to the Corporate Report Index
About The
Hopkin Thomas Project
Rev. July
2010