The story
18th century
In 1791, a hunter named Philip Ginter discovered anthracite coal on Pisgah Mountain near present-day Summit Hill, Pennsylvania close to the border Schuylkill and Carbon counties.
To verify this discovery, Philip Ginder, often called Ginter, gave it to Col. Weiss the very next day. Col. Weiss said he would give Mr. Ginder 300 acres (1.2 km2) of land if he showed where the coal was found, and Mr. Ginder agreed to the deal. Col. Weiss took the specimen by horseback to Philadelphia and had it further inspected by John Nicholson, Michael Hillegas, and brother-in-law Charlie Cist. Upon authentication, Weiss was authorized to grant Ginter what he propositioned for his discovery upon pointing out the exact location where it was found. Ginter built a mill on the tract of land he acquired but was later deprived of it by the owner who had filed a prior claim at the US patent office.
In 1792, Weiss, Hillegas, and Nicholson were some of the original investors in the Lehigh Coal & Navigation Company (LCMC). However, management proved inadequate and attempted to operate in an absentee manner. Company personnel ambitiously attempted to trek to the mine site, dig the anthracites, and then use mules to transport bags of it to the Lehigh River, which required cutting down trees and building crude arks near Lausanne Landing and then shooting the Lehigh River's rapids, hoping to reach the river's confluence with the Delaware River at Easton on the Pennsylvania border with New Jersey. The Lehigh Coal Mining Company was sporadically successfully in mining and transporting anthracite coal to Philadelphia, and its rights were eventually absorbed by the Lehigh Coal & Navigation Company, which leased their own operational rights from their predecessor, the Lehigh Coal Company.
Lehigh Coal Mine Company
In 1792, the Lehigh Coal Mine Company (LCMC) was first funded by Michael Hillegas, Jacob Weiss, and John Nicholson. It was incorporated the following year, in 1793, and the company also acquired 10,000 acres (4,000 ha) in and around Panther Creek Valley and Pisgah Mountain, and the aim of hauling anthracite coal from the large deposits on Pisgah Mountain near what is now Summit Hill, Pennsylvania, to Philadelphia via mule train to arks built near Lausanne on the Lehigh and Delaware rivers.
The mining camps were over nine miles from the Lehigh River at Mauch Chunk. Sporadically active between the years of 1792 and 1814, the Lehigh Coal Mine Company was able to sell all of the coal it could mine to fuel-hungry markets but lost many a boatload on the rough waters of the unimproved Lehigh River, contributing to lost operating profits for the company and sometimes outright losses.
The owners later sold some coal to Josiah White and Erskine Hazard, who operated a wire mill foundry at the Schuylkill River falls near Philadelphia. White and Hazard were delighted by the quality of the fuel, and subsequently bought the LCMC's final two barges to survive the trip down the Lehigh River.
19th century
In 1815, convinced they could much improve the reliability of its delivery, they began in 1815 to inquire after the rights to mine the LCMC's coal and hatched a plan to improve navigation on the Lehigh River as a key step.
In 1818 two companies were founded by Erskine Hazard, Josiah White, and George F. A. Hauto: the Lehigh Navigation Company (incorporated March 20, 1818), and the Lehigh Coal Company (incorporated October 21, 1818), for the purposes of constructing the Lehigh Canal and mining coal on the LCMC's land. Two years later on April 21, 1820 the two companies were consolidated under the title of the Lehigh Coal and Navigation Company, after Hazard and White had bought Hauto out of both companies. Founders Hazard and White entered the coal industry to serve customers seeking a steady supply of fuel for foundries and mills on the falls of the Schuylkill River (including mills already owned by Hazard and White themselves). Its role in accelerating regional industrial development by taking on civil engineering challenges initially thought impossible and creating important transport and mining infrastructure, proved influential in spearheading the Industrial Revolution in the United States.
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The Lehigh Canal became usable in 1820, was improved further between 1821 and 1824, and was finally transformed into a two-way canal between 1827 and 1829. The Lehigh Canal played a hugely influential role in the nation's ability to transport anthracite coal, a primary energy source at the time, to the company's primary markets in the Northeastern United States. By the early 1830s, the Lehigh Canal and its bridges along the Delaware River inspired the development and connection of four other regional canals.
Lehigh Coal & Navigation Company's success, along with White's reputation for advancing the state of mining and civil engineering, jump started the Canal Age in the U.S. It also spurred historically significant investments in raw materials and bulk transportation infrastructure projects. The company also supported funding efforts behind the Schuylkill Canal project, which began in 1814, and was finally funded and finished with the company's support. White and Hazard had backed the Schuylkill project since their mills were on the river, but became disgusted with the timid investment and management attitudes of its board, so they explored property and feasibility examinations elsewhere in 1814–1815 and petitioned to build the canal that next year.
Upon their return, the company's two founders took over Lehigh Coal Mining Company's mines and mining rights in a 20-year lease. built the Lehigh and Susquehanna Railroad and had its hands in many other northeastern Pennsylvania shortline railroads, spurs, and subsidiaries; created the Ashley Planes and made or supported means to other novel solutions of transport problems; and created transport corridors still important today.It also pioneered the mining of anthracite coal in the United States, acquiring virtually the entire eastern lobe of the Southern Pennsylvania Coal Region, and brought in Welsh experts to bootstrap Iron production using blast furnace technology in the Lehigh Valley, building the first six such furnaces and puddling furnaces to create steel, which the company then provided to its own wire rope (steel cable) manufactury, the countries first it set up in Mauch Chunk. Completing the vertical integration, the wire ropes were then marketed to other mining operations, cable railways, and other industries needing high tensile reliability in managing weighty loads.
In 1822, Lehigh Coal Company bought out partner George Hauto and formed the Lehigh Coal & Navigation Company (LC&N) by combining the Lehigh Coal Mining Company, the Lehigh Coal Company, which was leased, and the Lehigh Navigation Company. The transactions represented the first merger of interlocking companies in the nation's history. Five years later, the company built the Mauch Chunk and Summit Hill Railroad, the first coal railroad and just the second railroad company in the country to be constructed after the Granite Railroad in Quincy, Massachusetts.
The company was founded by industrialists Josiah White and Erskine Hazard, who sought to improve delivery of coal to markets. and a German immigrant miner named Hauto.
The company is known in the Lehigh Valley as the "Old Company", as distinct from the later 1988–2010 company, which was very similarly named the Lehigh Coal and Navigation Company and was known as the "New Company" in the region.
Lehigh Coal Company
White and Hazard very shortly found themselves on the receiving end of investor criticisms that the improvements and mining operation at Summit Hill were failing and were both considered crackpot schemes. The majority opinion was that improvements were possible, but that coal mining was less likely to succeed. They secured additional investors by forming two companies, the Lehigh Coal Company (LCC) and the Lehigh Navigation Company, and began seeking legislative approval for improving the Lehigh River's navigation.
The desired opportunity "to ruin themselves," as one member of the Legislature put it, was granted by an act passed March 20, 1818. The various powers applied for, and granted, embraced the whole range of tried and untried methods for securing "a navigation downward once in three days for boats loaded with one hundred barrels, or ten tons." The State kept its weather eye open in this matter, however, for a small minority felt that these men would not ruin themselves. Accordingly, the act of grant reserved to the commonwealth the right to compel the adoption of a complete system of slack-water navigation from Easton to Stoddartsville if the service given by the company did not meet "the wants of the country."
In 1817, they leased the Lehigh Coal Mine's properties and took over operations, incorporating it on October 21, 1818, as the Lehigh Coal Company. They petitioned the legislature and proposed acquiring rights to make improvements to the Lehigh River for which there had been a string of supportive legislation going back decades. In 1820, White and Hazard bought out their partner Hauto and dissolved the Lehigh Coal Company on April 21, 1820.
Under the conditions of the lease, it was stipulated that, after a given time for preparation, they should deliver for their own benefit at least forty thousand bushels of coal annually in Philadelphia and the surrounding districts, and should pay, if demanded, one ear of corn as a yearly rental.
White and Hazard found a wide divergence of opinion on whether the Lehigh River could be tamed, and even fewer believed that the mining of coal from the Lehigh River's surrounding lands was feasible. On three separate occasions, funds were raised to improve the Lehigh River's functionality. By 1820, the two companies had a marginal level of navigability on the Lehigh over four years ahead of their targeted 1824 deadline. Coal was transported by mule track from Summit Hill to a loading chute at the huge slack water pool at Mauch Chunk.
Riding this success, the two companies were merged into the Lehigh Coal & Navigation Company, which resolved to apply American Canal era technology, including canals, locks, and rails to bring coal to their foundries and the stoves and furnaces of Philadelphia and beyond.
On March 20, 1818, the company was granted various powers they sought to secure navigation in the Lehigh River, including with boats loaded with one hundred barrels, or ten tons on coal. Pennsylvania's state government kept an eye on the operation, however, and a minority felt the two men might succeed. The state reserved the right to compel the adoption of a complete system of slack-water navigation from Easton to Stoddartsville if the company did not succeed satisfactorily.
Capital was subscribed by a patriotic public on condition that a committee of stockholders go over the Lehigh River ground and pass judgment on the probable success of the effort. The report was favorable so far as the improvement of the Lehigh River was concerned. But the nine-mile road from the river to the mines was unanimously voted impracticable. "To give you an idea of the country over which the road is to pass," wrote one of the commissioners, "I need only tell you that I considered it quite an easement when the wheel of my carriage struck a stump instead of a stone." The public, meanwhile, was divided. Some held that the attempt to operate the coal mine was farcical, but that the improvement of the Lehigh River was an undertaking of great value and would prove profitable to investors. Others were just as positive that improvement's to the river's navigation would follow the fate of so many similar enterprises but that a fortune was in store for those who invested in the Lehigh mines.
The direct result of the examiners' report and of the public debate ultimately was the organization of the first interlocking companies in American commercial history. The Lehigh Navigation Company was formed with a capital stock of $150,000 and the Lehigh Coal Company was launched with capital stock of $55,000. This formed one of the most striking illustrations in American history of the dependence of a commercial venture upon methods of inland transportation. The Lehigh Navigation Company proceeded to build its dams and walls while the Lehigh Coal Company constructed the first roadway in America built on the principle, which was later adopted by the railway, of dividing the total distance by the total descent in order to determine the grade. The Lehigh Navigation Company, then suffering from an unprecedented dearth of water, adopted White's invention of sluice gates connecting with pools that could be filled with reserve water to be drawn upon as needed for navigation.
By 1819, the depth of water between Mauch Chunk and Easton was obtained. The two companies were immediately amalgamated under the title of the Lehigh Coal and Navigation Company. By 1823, the two companies delivered over two thousand tons of coal to market.
Lehigh Navigation Company
Having displayed great technological skills by creating the world's first iron wire suspension bridge, which spanned the Schuylkill River at their wire works, White and Hazard schemed with other industrialists to secure a reliable source of anthracite.
To move the coal to market, they entered political negotiations to acquire rights to tame the turbulent and rapids-ridden Lehigh River for navigation. By 1817–18, they had organized the separate Lehigh Navigation Company and had written stock flyers announcing plans to deliver barge loads of coal regularly to Philadelphia by 1824. The LCMC had trouble delivering Anthracite to Philadelphia at costs cheaper than imported Bituminous Coal from Britain or Virginia. Their last expedition had been sent out in 1813 during the war & blockade caused bituminous shortages, and by the time five arks were sent down river, three sank, leaving the directors of LCMC disgusted and unwilling to fund more losses.
The company began to prepare plans and surveyed sites, and when the state legislature approved the river work in 1818, immediately hired teams of men and began to install locks, dams, and weirs, including water management gates of their own novel design.
The desired opportunity "to ruin themselves," as one member of the Legislature put it, was granted by an act passed March 20, 1818.
According to a history of the navigations, authored in 1884:
The improvement of the Lehigh was begun at the mouth of the Nesquehoning Creek, during the summer of the year 1818, under the personal supervision of Josiah White. The plan adopted was to contract the channel of the river in the form of a funnel, wherever it was found necessary to raise the water, throwing up the round river-stones into low walls or wing dams, thus providing a regular descending navigation.
It soon became apparent that the carrying out of this plan would not insure sufficient water in seasons of drought to float a loaded ark or boat, and the success of the whole enterprise hung in the balance. White resorted to the expedient of creating artificial freshets. Dams were constructed in Mauch Chunk in present-day Jim Thorpe, and sluice gates of a fairly new design, invented for the purpose by White, were used so water could be retained until required for use.
When the dam became full and the water ran over it long enough for the river below to regain its ordinary depth, the sluice ates were let down, while the boats, which were lying in the pool above, passed down with the artificial flood. In this manner the difficulty was overcome. Crews were sent up Mount Pisgah to improve the mule trails down from the coal deposits at Summit Hill, Pennsylvania, and others to build docks, boat building facilities, and the canal systems head end pool and locks.
The canal head end needed a location where barges could be built and timber and coal could be brought into slack water. The challenge was to do it above the gap made by the east end of Mount Pisgah, a hard rock knob that towers 900 feet above the Lehigh River towns Jim Thorpe, formerly Mauch Chunk, to the towns west, and Nesquehoning to its north. Both towns are built into the flanks, the traverses, of the mountain, with flats along the river banks. (A few decades later, railroads would follow the canals.)
Within the next two years, White and Hazard constructed a descending navigation system that used their unique "bear trap" or hydrostatic locks, which allowed the passage of coal boats by means of artificial floods. The coal arrived at the head end from the mines at Summit Hill or down along the steep mule trail from near the headwaters of Panther Creek. It floated down the navigation; at journey's end, the barges were sold as fuel or for Delaware basin transports.
The navigation company began shipping significant quantities of coal by early 1819, ahead of expectations, and attained their goal of regular shipments in 1820.
In 1820, the company was combined with the Lehigh Coal Company with the ouster of George Hauto, but was not rechartered officially until 1822.
By late 1820, four years ahead of their prospectus's targeted schedule, the unfinished but much improved Lehigh Valley watercourse began reliably transporting large amounts of coal to White's mills and Philadelphia. The nearly 370 tons of coal brought to market that year not only salved the winter's fuel shortage but created a temporary glut. After buying out co-founder George Hauto, White and Hazard reworked their lease deal with the Lehigh Coal Mine Company, and merged it with the Lehigh Coal Company, acquiring ownership of its 10,000 acres spanning three parallel valleys in the 14 miles (23 km) from Mauch Chunk to Tamaqua. A few months later, they merged the LCC and the Lehigh Navigation Company. In late 1821, they filed papers to incorporate Lehigh Coal & Lehigh Navigation, which took effect in 1822.
From Wikipedia’s article on Lehigh Coal & Navigation Company, shared under CC BY-SA 4.0.3