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

 

 

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