REPORT

 

OF

 

THE BOARD OF MANAGERS

 

OF THE

 

BEAVER MEADOW

 

RAILROAD AND COAL COMPANY,

 

TO

 

THE STOCKHOLDERS:

 

January, 1840

 

_______________

 

PHILADELPHIA:

 

HOGAN & THOMPSON. - 77 CHESTNUT STREET

1840

 

 

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 82 (Pennsylvania State Archives).  The shaded text are entries that could not be recognized from the cursive writing — where possible, the best guess for the word in question has been entered; otherwise the word ÔtextÕ has been entered. The accuracy of the numerical figures is not guaranteed.

J. McV  Dec 2006 


 

Report of the President

 

 

At the meeting of the Stockholders on the 15th August the condition of the Company was fully presented, with such details of its capabilities and operating conditions as it was thought would put every Stockholder in possession of the information by which he might the judge of the value of this position of his property.

 

So recent and particular an exhibition of the affairs of the company text at the present time, to go into details, which would be a but to a repetition of the facts and inferences then submitted to your consideration A brief review of the transactions of the past year would best explain to the stockholders our present condition.

 

The Stock of Coal on 1 January 1839 was 34,000 tons – missing text

 

as the work progresses, indeed this large amount an advance far beyond the Capital of the Company and the debt consequent on this outlay was not only  text but the difficulty of sustaining such an amount, together with that of providing a means for the success for the text  text  added all our operations, it became obvious, as the seasons advance, that the ordinary powers delegated to the Managers were insufficient for the exigencies of the occasion. The Stockholders were called together on the 15th August, a full exhibit of the Company's affairs being made, authority was given to the Board of Managers to execute a Lean to the Amount of $200,00 in addition to the previous Loan of $50,000.

 

In conformity with the provisions of the Bye-Laws thus enacted, a Loan was negotiated at par for five Years to the amount of $160,956 bearing 6 percent interest, and the original Loan of $50,000 was, by the holders of it, merged into this new Loan, making together $210,956.

 

The Loan authorized to be negotiated in Europe for $50,000 has been revoked, and the Bonds sent out for that purpose have been canceled.

 

The heavy Stock of Coal with which the year was commenced, the difficulty of obtaining funds on the ordinary text, the decline in the price of Coal, with the difficulty of effecting sales owing to the competition in the market, and the reduced consumption throughout the Manufacturing district, induced the Managers early in the season to direct their efforts to these great objects: the sale of all the Coal, the payment of debts, and preparation for a successful text of the work at the first favorable opportunity. It is believed that these objects have been attained.

 

By means of the Loan and the sales of Coal not only have the heavy debts been extinguished, but permanent property and improvements to the amount of $73,395.02 have been added to the Stock, in the opening of the Mines, in saleable real Estate and in Stationary and Locomotive Engines of the first class.

 

The expectation held out at the last Annual Meeting, that 60,000 tons of Coal would be brought to market during the first year might have been fulfilled, but it was decided early in the season to text the Mining to the lowest point consistent with retaining a suitable force at the Mines. Subsequent events  have shown the text of the procedure and had others engaged in the same business adopted a similar course, the results would have been greatly to the interests of all those whose purpose is thus invested.

 

The Stock of Coal would have been reduced, the price maintained, a proper compensation to labor would have been given, and the whole coal interest would now be in a state far more healthy and in preparation for returning prosperity in our land.

 

It is gratifying to state that as far as the Managers are enabled to judge, the losses on bad debts on Sales amounting to $218,436 have not been one quarter per cent on the text, although the year has not been one of more than ordinary hazard, nor are any other text apprehended

 

Coal has been widely distributed and  maintaining its character for peculiar excellence and the case which has been taken in possessing & delivering it during the past year has established its reputation wherever it has been used. It has been subjected to the finest scrutiny & comparison by the most exact and observant manufacturing in various parts of the Country and the communications which are received with orders from the largest consumers lead us to believe that the Sale may be extended to our highest calculation of production.

 

One important means of attaining this object has been the appointment of a general agent for New England with whose success the Board of Managers are satisfied and it is to be regretted that  an earlier appointment of such an agent had not been made.

 

As a part of the system for reducing the stock of coal, it may it may desirous to close all the Agencies where Coal may be held on Account of the Company and this has been almost completely effected. Whatever may have been the policy of establishing such agencies in the earlier stage of the CompanyÕs business, it is obviously in our interest to avoid them in the future.

 

Under the expectation of mining a larger quantity of Coal at the beginning of the past year and with a view to the most economical transportation, a contract was made for a Locomotive Engine of the largest class, the completion of it was however delayed and it has not been but recently finished. After being tested for two weeks on the State road to Columbia, where it proved satisfactorily, the practicability of using Anthracite Coal in ascending the most difficult grades with heavy trains, the Engine has been taken to the CompanyÕs Road, where it is found to answer our expectations. The smaller engines may now be dispensed with and sold or applied as Stationary Engines in the Mines.

 

At Beaver Meadow, ample preparation has been made for extensive mining whenever it may be deemed expedient to bring the Coal to market. The Wharton Vein has been penetrated to the depth of 250 feet and a Stationary Engine of 60 horsepower, with the appropriate buildings  & fixtures are all in readiness. The thickness of this vein which is 11 feet, its vast extent and purity, renders it well worth all the cost which has been expended upon it. The other veins heretofore noted have been opened, still function with a view to excavating their content to the greatest advantage.

 

In order to furnish accommodations to the Miners, six double houses have been constructed.

 

The purchase of the Weatherly property at the foot of the inclined planes for the workshops, with the benefit of a valuable water power has been followed up by the occupation of that site, and the prospects of advantage in large savings of expenses and greatly increased efficiency, which led to the purchase of that property it is still believed will be realized.

 

The Board suggests to the Stockholders the propriety of obtaining from the Legislature such amendments to their act of Incorporation as may authorize the Company to make & vend Iron, Iron Castings, and such articles as may be needed in the Mining and transportation on railroads. There must be kept at the shops a number of men, more than can be steadily employed in the CompanyÕs work, whose labor may then be undue in benefit to the adjoining mines, and a means of self support.

 

The Rail Road has been very extensively repaired and some of the text work has been  text  permanent, during the past season.

 

The prosperity of revenue from the use of this road by Companies and individuals, which have been hitherto entertained, are being confirmed by the increasing receipts from this source, the Amount accruing from tools and freight the past year being $6930.19

 

The early completion of the Little Schuylkill & Catawissa railroad, with which a junction is now made & the development of the resources of the adjoining country, so rich in coal, iron, together with the more distant products of agriculture which text pass over this road, render it certain that it will become a source of profit, and it is hoped that before long, the sagacity which lead to its construction, will be demonstrated by the best evidence, an ample revenue.

 

It is suggested, as before has been done, that a sufficient number of Boats should be owned by the Company, to regulate the freight, and to test the losses and accidents to which the Coal is exposed in the transportation.

 

The Board has happily adjusted a number of disputes in relation to land titles and claim for damages on the line of the railroad, which none in litigation, and nothing, it is believed, remains to be done in that way, but to obtain redress for the injuries sustained by the over flowing of the works constructed on the first location of the railroad by the Lehigh Coal and Navigation Company in extending their Canal along this route.

 

From what has been presented in the foregoing statements, the Stockholders are prepared to learn that the Board of Managers have deemed it expedient to make a dividend at the present time. Some further explanation may however be expected.

 

The report from various departments at the close of the year have come in too recently to enable the Board to make a satisfactory apportionment of the expenditures they É

 

Is there a missing page?

 

Éthe propriety of making the fiscal year of the Company to close on the 1st December instead of 1 January. Some of the reports not having been received even at the last meeting of the Managers.

 

Two causes are assessable for the want of the dividends. The one is the low price at which Coal has been sold throughout the past year and the increased expense at which the small quantity, which a text to our ultimate interest made it proper to bring to market, was mined and transported, a result which the most inexperienced will understand. The other is the overvaluation of the Stock of Coal on hand at the last settlement. On 1 Jan. 1839, as has been before stated, the stock was taken at 34,180 tons valued at $144,315, the estimation being updated by the prices then prevailing. Subsequent events have proved this evaluation to have been far too high and the deficiency thus occurring has led to a statement on the Books of the Secretary showing a loss of $1342.40 which would appear to be the result of this text business. The facts are known to the contrary as the following details will explain. On closing the several depots it has been found that considerable loss has arisen from waste and dust, not however more than might have been expected, but which however was not duly estimated in the former valuations. In addition to this, the rate of valuation was in some cases too high.

A strict adjustment of the accounts would probably exhibit a profit on the business of the year 1839 even under the disadvantages peculiar to the past season, many of which we may hope to avoid in future.

 

In common with other pecuniary interests throughout the United States, that engaged in the coal business has, during the past year, suffered from the general prostration  of trade and the derangement of the currency, but it is a matter of congratulations to the proprietors of this Stock, that they have passed through the year with so little loss, and that at the present time, the concerns of the Company are in condition to be enable them to commence business under more favorable auspices then heretofore. The Board are satisfied from the inexhaustible supply of Coal on our lands, the skill acquired in working the mines, the ample preparation made for this purpose and the increasing estimation in which this Coal is everywhere held, that all that is wanting to enable the Company to meet the expectations of its Stockholders is a fair price and a reasonable demand for Coal. The depression now existing in the Manufacturing districts, and to these text chiefly look for text cannot continue permanently with returning prosperity, we must participate in the profits of a well managed business. Under these circumstances we may indulge the hope of a more favorable result to our future operations than has commonly of late been anticipated, if we may judge by the depressed price at which the Stock has been held. It is believed that an investigation into our affairs would lead to a very different estimation of its value.

 

On a general services of the years business it will be found although we are not satisfied with the receipts of profit in which we had confidently text text as may be relied, yet that much has been accomplished for the good of the Company, and compared with the opening of the last year it is obvious that its state is decidedly improved. A Loan, adequate to the present wants of the Company has been negotiated on advantageous terms and it needs but a moderate contribution on the part of the Stockholders to be sufficient for the text intended operations, very valuable accession of property of text  kind and highly important to the business of the Company have been made. The Stock of Coal which had accumulated to an excessive amount has been reduced so that we now expect the entire quantity to be sold before the opening of a new season. The amount of debt which required a constant sacrifice, and which engaged the time and anxiety of the Officers and Managers to a degree injurious to our general interests, have been extinguished, instead of text incumberances, and an text all our operations. The obligations of the Company are now under the easiest control.

During the year the local agencies have for the sale of Coal been very nearly closed up. A general agency for New England has been established. The Coal has been very widely distributed to the extent of 50,000 Tons - its character much enhanced in public estimation – a  large demand secured. New mines have been extensively opened with the opportunity for working them efficiently. text  and ample means of transportation founded so that we can fully assure that the Company may bring to market the present year if they shall deem it expedient from 100,000 to 120,000 tons of Coal. General distracting claims which were in litigation have been adjusted  - the credit of the Company has been established. So many difficulties being overcome it is hoped that prosperity may attend our future operations, and the result of following years prove a full compensation for the disappointments and labors of the past.

 

By order of the Board of Managers

Joseph N. Scully

President

 

 

Expenditures on Account of Permanent Property

 

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