REPORT
OF THE
BOARD OF DIRECTORS
TO THE STOCKHOLDERS
OF THE
BEAVER MEADOW RAIL ROAD & COAL CO.
January 8, 1844.
_________________________
Philadelphia.
ELLIOTT'S PUBLIC PRINTING OFFICE, 51, CHESTNUT STREET.
REPORT
Of the President
and Directors to the Stockholders of lie Beaver Meadow Bail Road and Coal
Company.
________________
The undersigned in presenting the annual statement of
the affairs offairs of' the Company, respectfully refers the Stockholders to
the last yearly Report, which was made by the late President, H. Budd, Esq. for
much valuable information, and for a more detailed description of the property
and works than is proposed to give now. It would be an unnecessary repetition
of information, to which the Stockholders have ready access, as a number of
copies of that Report yet remain in the office for distribution. Peculiar
circumstances have afforded to the undersigned, but a very limited period for
preparing a Report, and he is therefore obliged to be as concise as possible.
A
satisfactory contract having been made with Van Cleve & Co., at the usual
time, in Oct'r. 1842, the Board of Managers had every reason to form the most
favourable anticipations of the business of the coming year. They fully
calculated on getting down upwards of 70,000 tons of Coal, which they every
reason to believe could be sold at a fair remunerating profit. A breach in the
Delaware Canal, at the opening of the season, which occasioned a delay of two
weeks, was the first unpleasant difficulty which occurred; but, a much more
serious arid disastrous interruption soon after followed; and just at the time
too, when our Coal, in consequence of its acknowledged excellence, and the very
superior manner in which it vas prepared for market, was being eagerly sought after
by foreign dealers. The boatmen who were employed in bringing the coal to
market, by the different companies of the Lehigh region, turned out for higher
freights. Every endeavour was used, by, the officers-of our Own Company, and
others interested, to convince them of the great impohicy of persisting in such
a course. The injustice and folly of this attempt at coercing the companies
into higher wages than the low prices of Coal would justify, was ably
represented to them by the then President and present Treasurer of this
Company, but for a long time without any visible impression. They persisted in
their extravagant demands for upwards of six weeks. At last, however, by
unremitting exertions, involving a partial advance in freight, the boatmen employed
by us, consented to go again to work. The others, soon after, followed, and the
usual routine of bringing Coal to market was resumed. But in the interim, a
very serious loss to us had been the consequence. Under the great uncertainty
of a resumption of boating, it had been judged proper to suspend sales of our
Coal in advance. The dealers in the Coal of another Coal region, under no such
difficulty of getting their Coal to market, had, in consequence, been able to
forestall us in sales thus suspended, as our customers at a distance, found it
too great a sacrifice of their interest to wait on our uncertainty. The loss
has therefore been great to us-making, within a low calculation, a difference
of 15,000 Tons, and at prices too, which would have afforded a much better
profit than sales made in the after part of the season, when freights had
advanced, when every one engaged in the business was anxious to find customers,
and when competition had rendered profits almost nominal. We have, however,
been able to sell this season, under every disadvantage, upwards of 55,000 Tons
of Coal, and to those too, who we find are desirous to deal more largely with
us in the coming season.
The
propriety of renting the mines, insteading of contracting for the mining and transportation
of Coal, had often been a subject of discussion by the President and Managers;
and under favourable circumstances, it had generally been conceded to be the
best. It had been for more than a year strongly urged upon the attention of the
Managers; and on the 29th of September last, a majority of the Board came to
the conclusion, to direct the President to advertise for proposals. It was
supposed, that from the excellent order, in which it is well known our Works
are maintained, and the high character which our Coal has acquired, that we
should find no great difficulty in obtaining offers. Such, however, was not the
case. Not a single proposal was received; which can probably be accounted for
by the uncommonly low prices which Coal had been sold at during the past season,
the uncertainty of future operations, and the difficulty persons willing to
propose would have had in procuring the requisite capital to engage in such
extensive business. Such, however, being the result of the determination to
advertise, the Board again turned their attention to the prospect of making a
contract for the ensuing season.
A new contract is now negociating with VAN CLEVE &
Co., upon terms more favourable to the Company than any preceding one, and
which if fully carried out, will, we hope, enable the Board to make a much more
flattering statement at the conclusion of the coming season, than, they regret
to say, from causes already stated, they are able now to do. One necessary
condition, however, of the favourable terms alluded to, was the advance of a
considerable sum of money, to satisfy pressing demands which could not be
otherwise controlled by the Contractors; and, also, for the purpose of enabling
them to prepare for the execution of the contract on the most economical terms.
This, at first, seemed a serious difficulty, but was surmounted by several
gentlemen of the Direction, undertaking to risk their personal responsibility
for the amount. The Contract, which yet requires the adjustment of some matters
of detail, will probably soon be perfected; and it is hoped that the
persevering energies of the New Board of Managers will be directed to carry it
out successfully.
Early in September last, HENRY BUDD, Esq. was induced
by the pressure of his own business, to resign the office of President: though
remaining a Director of this Company. The undersigned was, very unexpectedly to
himself, elected by the Board of Managers, to supply the vacancy thus
occasioned, and with the view of informing himself more particularly of the
state of the property, in the month of October following, he visited the Works
at Beaver Meadow, accompanied by the Secretary, Mr. CHAMBERLAIN. They examined
the Mines, Workshops and Rail Road, and were gratified to find every thing
connected with the property of the Company in the best order. The Rail Road is
maintained in excellent condition; the transportation of the Coal upon it by
other Companies is considerable, and has every prospect of being
increased, in amount, during the coining season.
In conclusion, the undersigned will remark, that the
prospect of business for the ensuing season, under the contract about completed
appears to be of a very favourable character. Our Coal has obtained in this and
the Eastern market, a deservedly high reputation, and is much sought after.
Numerous letters that have been received from customers at the conclusion of
the season, speak warmly in its praise, and express a desire to receive their
future supply from us. This increasing reputation is in a great measure
attributable to the unremitting attention of our Officers and Agents, to the
handsome manner in which the Coal is prepared by the admirable Coal-breaking
Machine, invented by VAN CLEVE & Co., at Beaver Meadow, and to the great
care exercised at all points of our Works, in extracting from it slate dirt,
and all other impurities. This watchful care must be maintained, this close
attention must be persisted in, and the Beaver Meadow Coal will continue to
claim and possess that high character in public estimation, to which, from its
intrinsic excellence and admirable preparation, it is justly entitled.
JAMES ROWLAND,
President
All which is respectfully submitted..
January 8th, 1844.
December 28, 1843. L.
CHAMBERLAIN, Sec'y
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