The Paths of Inland Commerce [12]
at shipping coal to Philadelphia, gave up the effort and allowed the property, which was worth millions, to lie idle. In 1807 the Lehigh Coal Mine Company, in another effort to get its wares before the public, granted to Rowland and Butland, a private firm, free right to operate one of its veins of coal; but this operation also resulted in failure. In 1813 the company made a third attempt and granted to a private concern a lease of the entire property on the condition that ten thousand bushels of coal should be taken to market annually. Difficulties immediately made themselves apparent. No contractor could be found who would haul the output to the Lehigh River for less than four dollars a ton, and the man who accepted those terms lost money. Of five barges filled at Mauch Chunk three went to pieces on the way to Philadelphia. Although the contents of the other two sold for twenty dollars a ton, the proceeds failed to meet expenses, and the operating company threw up the lease.
But it happened that White and Hazard, the wire manufacturers who purchased this Lehigh coal, were greatly pleased with its quality. Believing that coal could be obtained more cheaply from Mauch Chunk than from the mines along the Schuylkill, White, Hauto, and Hazard formed a company, entered into negotiation with the owners of the Lehigh mines, and obtained the lease of their properties for a period of twenty years at an annual rental of one ear of corn. The company agreed, moreover, to ship every year at least forty thousand bushels of coal to Philadelphia for its own consumption, to prove the value of the property.
White and his partners immediately applied to the Legislature for permission to improve the navigation of the Lehigh, stating the purpose of the improvement and citing the fact that their efforts would tend to serve as a model for the improvement of other Pennsylvania streams. 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."
Capital was subscribed by a patriotic public on condition that a committee of stockholders should go over the ground and pass judgment on the probable success of the effort. The report was favorable, so far as the improvement of the river was concerned; but the nine-mile road 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 mind 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 of probable profit to investors. Others were just as positive that the river improvement 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 it provoked was the organization of the first interlocking companies in the commercial history of America. The Lehigh Navigation Company was formed with a capital stock of $150,000 and the Lehigh Coal Company with a capital stock of $55,000. This incident forms 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
But it happened that White and Hazard, the wire manufacturers who purchased this Lehigh coal, were greatly pleased with its quality. Believing that coal could be obtained more cheaply from Mauch Chunk than from the mines along the Schuylkill, White, Hauto, and Hazard formed a company, entered into negotiation with the owners of the Lehigh mines, and obtained the lease of their properties for a period of twenty years at an annual rental of one ear of corn. The company agreed, moreover, to ship every year at least forty thousand bushels of coal to Philadelphia for its own consumption, to prove the value of the property.
White and his partners immediately applied to the Legislature for permission to improve the navigation of the Lehigh, stating the purpose of the improvement and citing the fact that their efforts would tend to serve as a model for the improvement of other Pennsylvania streams. 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."
Capital was subscribed by a patriotic public on condition that a committee of stockholders should go over the ground and pass judgment on the probable success of the effort. The report was favorable, so far as the improvement of the river was concerned; but the nine-mile road 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 mind 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 of probable profit to investors. Others were just as positive that the river improvement 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 it provoked was the organization of the first interlocking companies in the commercial history of America. The Lehigh Navigation Company was formed with a capital stock of $150,000 and the Lehigh Coal Company with a capital stock of $55,000. This incident forms 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