STATEMENT OF THE PRESENT CONDITION
OF
^ mm
GO.
le Fhilaidpliia ¡i Eeaing Coal aad Iron Co.
PLAN FOR THEIR FINANCIAL RE-ORGANIZATION,
*
Mr. Franklin B. Gowen,
President of the Company.
JACKSON BROS.,
P n I L A D E L I'III A :
PRINTERS, 400 AND 402 LIBRARY
1880.
STREET.'
STATEMENT OF THE PRESENT CONDITION
0 F
THE PHILADELPHIA k READING RAILROAD CO.,
AND
The Philadelphia k Reading Coal kIron Co,
WITH PUN FOR THEIR FINANCIAL RE-ORGANIZATION.
By MR. FRANKLIN B. GOWEN,
President of the Cojnpany.
To the Shareholders of the Philadelphia and Reading
Railroad Company:
The financial condition of the Philadelphia and
Reading Railroad Company and the Philadelphia and
Reading Coal and Iron Company, including the Re-
ceivershi^ts of both companies, consolidated and treated
as one, is shown by the tabular statement on the following
pages.
2
Assets.
Railroads—equal 791 miles, single track,
as per report of Chief Engineer, - $31,498,200 00
Real Estate of Railroad Comjiany, in¬
cluding all depots, as per rejjort of
Chief Engineer, - - - - 14,316,994 00
Locomotive Engines and Cars, - - 11,534,710 88
Steam Colliers, Vessels and Barges,
Stationary Engines, Machinery and
Tools, Materials and Supplies, Equip¬
ments, &c., ----- 6,233,396 95
Stocks and Bonds, - - - - 7,346,000 00
Current Business Debts due the Com¬
panies, ----- 3,911,768 76
Coal Lands of Coal & Iron Company,
including all Improvements, estima¬
ted at $750 per acre for Coal Land
in addition to actual value of Im-
¡^rovements on same, - _ - 75,600,000 00
Other Real Estate of Coal & Iron Com¬
pany, including Timber and Iron
Ore Lands, ----- 2,200,000 00
Estimated present value of Leases held
Railroad Company, covering 494
miles of Railroad, equal 888 jniles,
single track, after deducting suffi¬
cient amount to cover Losses from
Canal Leases, - _ - - 7,500,000 00
Estimated value all other Assets, - 1,117,000 00
Total Assets, - - - $161,258,070 59
a
Liabilities.
Consolidated Mortgage and Prior Issues, $24,200,500 00
Improvement Mortgage, - - - 9,364,000 00
Divisional Coal Land Mortgages, - 12,638,000 00
Bonds and Mortgages on Real Estate, 2,807,703 91
General Mortgage and Perkiomen Scrimp 1,840,800 00
General Mortgage, - - - - 19,686,000 00
Income Mortgage, - - - - 2,454,000 00
Scrip convertible into Income Mortgage, 3,301,729 10
Convertible Bonds, - - - - 10,527,900 00
Open debenture Bonds, - - - 3,065,500 00
Debts of Leased Lines guaranteed to be
paid at maturity, and on payment of
which annual rentals are reduced equal
to yearly interest on amount paid, 3,074,150 00
Floatingdebtand Receivers'certificates, 12,743,531 77
Unpaid overdue Coupons, Interest, and
Dividends, ----- 730,752 05
Current business obligations due for ac¬
cruing rentals,due to ConnectingRail-
roads, due for wages and materials
last month's business, and for Taxes, 3,450,971 62
Sinking Funds, Insurance Funds, &c.,
principally bookkeeping convenience
accounts involving a liability in cash
of less than $100,000, - - - 1,150,955 21
$111,042,493 66
Preferred Stock, - $1,551,800 00
Common Stock, ,- 32,726,375 28
34,278,175 28
Total Liabilities, - - - $145,320,668 94
Balance—being surplus of property
over debts and share capital, - 15,937,401 65
$161,258,070 59
4
The above shows a valuation of property of about
$50,000,000 in excess of all indebtedness, or about six¬
teen millions in excess of debt and share cajutal.
The liabilities are from the balance sheets of October
31st, and the statement of values are from careful ap¬
praisements by others, except the two items of coal lands
and leased lines, which are my own estimates, but really
far beloAV actual values.
The fact that for some months past the North Penn¬
sylvania and Bound Brook Eailroad leases together have
alone been earning monthly in excess of rental an
amount exceeding the monthly interest upon $7,500,000,
and that with the constantly increasing local business
and the through traffic of the Baltimore and Ohio Rail¬
road Company, thrown upon the line since December
1st, those two leases alone may safely be considered worth
to the Company, in actual earning jjower, from ten to
fifteen millions of dollars, will probably satisfy the most
skeptical that the sum of $7,500,000 is a very moderate
estimate of the value of the leased lines. The question
of the correctness of the coal land valuation will be
hereafter discussed in connection with a review of the
report of Mr. Joseph S. Harris upon the same suhject.
The total fixed charges of the two Com¬
panies for 1880 for interest of all
kinds, including interest on thé float¬
ing debt, but not including sinking
funds, are $6,548,016 88
The total rentals due annually by the
Company, including the guaranteed
interest on obligations involving any
cash outlay by the Conqiany are - 3,424,218 00
Making total fixed charges for 1880, - $9,972,229 88
5
The relief from previous payment by
scrip for fixed charges for 1880 is - 1,551,441 GO
Balance payable in cash, - - - $8,420,788 88
The net earnings of the two Companies
from all sources of business (estima¬
ting the month of November) for fis¬
cal year ending November 30th, are 8,785,586 00
Leaving cash surplus for the year, - $364,797 12
In addition to the above surplus there has been some
saving during the year, resulting from the Receivers
having purchased a considerable amount of interest and
having paid some rentals at less than the actual amounts
due, but of which no account is taken in the above.
Upon the resumption of sinking funds next year,
$837,442 must he added to the total of fixed charges ;
the relief from scrip will be $1,257,365 in 1881 and
$628,682 in 1882, after which full fixed charges must
be paid.
In considering a plan for the extrication of the Com¬
pany from financial difficulty, it is best to leave out of
the question all tem])orary relief from scrip payments
or susi^ension of sinking funds, and to deal with the
total of fixed charges as they will be in 1883, when full
payments, both for interest and sinking funds, must be
made.
The total fixed charges will then be,
including sinking funds and interest
on present floating debt, - - $7,107,903 88
The total rentals, making allowance for
increase of some rents in the interim,
will be- - • - - - - 3,549,213 00
6
Making a total of - - - _ $10,657,116 88
to be earned to meet all charges, as
against a profit for the present year
of but ------ $8,785,586 00
Showing that in 1883, if the earnings are ]io greater
than they have been in 1880, there will be a defi¬
ciency of $1,871,530.88 for fixed charges, or leaving
out sinking funds, a deficiency of nearly $1,000,000
for interest and rentals.
The estimate of the earnings of 1880, published in
the last annual report, was based upon a coal tonnage
for the Railroad of 9,000,000 tons, and an output from
the mines worked by the Coal and Iron Company of
nearly 5,000,000 tons, and had such tonnage and pro¬
duction been secured, the net result predicted for the year
would have been obtained. The sudden collapse of the
iron trade early in the year, greatly prostrated the coal
traffic, and reduced the output of coal : the tonnage of the
Railroad Company being under 7,200,000, and the out¬
put of the Coal and Iron Company under 3,500,000.
The expensive s^'stem of working all collieries three days
ont of the week (instead of working the best collieries
full time, and letting the worst remain idle) which Avas
adopted as the only plan by Avhich harmony in the
trade could be obtained, added at least thirty cents per ton
to the cost of mining coal. So that even with an output
of but 3,500,000 tons, had the best collieries been worked
continuously to produce'it, and the exjAensive collieries
been suffered to remain idle, the profit of the Coal and
Iron Company Avouhl have been over $1,500,000, instead
of $503,956, due to the saving of expenses alone, and
this profit would have been further increased several
7
hundred thousand dollars, from the fact that the best
and most economically worked collieries produce a coal
which nets a larger profit, as well from the higher price
at which it sells, as from the lower cost at which it is
produced.
The following table will show the actual results of
1880, compared with those estimated ipmn tlie larger
tonnage above named :
Coal transportation
Merchandise transportation
Passenger transportation...
Miscellaneous receipts
For shipping coal
All expenses
Except, interest on debt.
Coal and Iron Company
The falling off in miscellaneous recepits for 1880, is
due to the fact that the milk traffic of the Company,
amounting to $120,000, is included in merchandise re¬
ceipts, while for six months of 1879 it wais credited to
miscellaneous receipts.
While it is believed that the earnings of the two
Companies will never again be as low as they have for
the year la,st past, and that in 1881, all fixed charges
and full sinking funds can be earned with something
towards a dividend; and that if, at present rates of trans-
Estimiite upon 9,0(10,000 7®""' "I'""
Kuilicul ckl tounnse, ünllraul tounuire ot
and 0.(1(10,000 Conl and • t ' i ' » »
iron Co. output. , I""; il:,, i I'"'
.200,000 ai d Coal and
C". ontpi
a,•150,000.
$12,150,000 00 I $8,331,130 00
5,COO,000 00 ; 5,005,007 00
2,500,000 00 2,655,517 00
150,000 00 79.430 00
400,000 00 ■ 358,543 00
$20,200,000 00 : $16,489,663 00
11,500,000 00 11,632,246 00
$8.700 000 00 : $4 857.417 00
2,500,000 00 503,956 00
$10,200,000 00 : $5,361,373 00
8
portation and coal prices, a coal tonnage of 9,000,000
on the railroad, and an output of 5,000,000 tons from
the mines of the Coal and Iron Company can be secured—
at least ten per cent, upon the share capital of the Com¬
pany can he made after payment of all present fixed
charges ; yet, in order to place the finances of the Com¬
pany in sound condition, and the Comjjany itself beyond
all reach of fntnre disaster, it is necessary first to pay the
floating debt, and secure the return of the valuable
collaterals pledged with it ; and second, to reduce the
fixed charges to such a reasonable limit as will practically
guarantee dividends to the shareholders in the worst
times through which the Com2)any may have to pass.
First—with reference to the floating debt—
The total amount of this is - - $10,404,045 80
To which add Receiver's certificates
and obligations, - - - - 2,279,485 91
To which should be added overdue and
unpaid conpons, interest, &c., - - 730,752 05
Making a total of - - - $13,474,283 82
The proper parties to furnish money to j^ay the float¬
ing debt are, undonbtedly, the shareholders ; and it has
heen proposed by some to obtain the money from them
either by an assessment n^Don the shares, or by a fore¬
closure and sale of the property of the Company under
the general mortgage, coupled Avitli an agreement, under
which snch of the junior creditors and stockholders as
would pay a ¡)ropor assessment could come into the new
organization in the same relative position they now
occupy, while those who could not, or who would not,
9
should he cut off from all ownership in their property.
The first of these propositions is inadmissible, on account
of the want of legal power to levy an assessment on
shares which are already full-paid ; and to the second I
have always showed a determined opposition, not only
because foreclosure would take from both companies their
present valuable charters, huthecause the Company is not,
and never has been, in such danger as to justify a resort
to such an oppressive method as that which threatens to
sell a man's property unless he complies with a demand
to pay what he really does not owe, and what he may
not have in his power to pay.—A much better,more hon¬
ourable, and more satisfactory way is to ask from each
shareholder some voluntary payment, offering the 02)tion
to each, and giving to those who do subscribe an obligation
which in times of prosperity will give them a great ad¬
vantage over those wdio do not. Such a plan has been
approved by the Managers of the Company and by the
Receivers, and authorized by the Court. It iiiA'olves
the issue of a $50 deferred-income bond for each share
of stock in the Company, each shareholder to liaA'e the
right of subscribing, at the rate of 30 per cent, or $15
per bond of $50, for one bond for every share of stock
held by him, Avith the privilege to willing shareholders
of subscribing for more than their quota, subject to allot¬
ment, in order to absorb the quotas of those Avho do not
care to subscribe. These deferred-income bonds neA'er
become due, and there is no obligation on the part of
the Company ever to pay the principal. They aa'ÍII,
hoAvever, he entitled, only, hoAvever, after the common
shares have had a six ¡ler cent, dividend, to any surplus
of earnings up to six j)er cent., and thereafter they aa-í11
10
rank passu witli the common shares for further
dividend.
A syndicate has offered to deposit $2,058,000, equal
to $3 ui^on each bond to be issued, as a guarantee that
they will subscribe and pay for all of the issue which is
not taken by the shareholders, jmovided they are paid
a commission of five per cent, upon the net proceeds
of the issue, $10,290,000. The money for the guaran¬
tee fund is offered for deposit at any time—but since
the date of the order of Court authorizing the issue some
difficulty has been exjoerienced in securing a proper
agent in London to take charge of tlie matter in Eu¬
rope, and, pending the difficulty, such assurances of the
success of the scheme have been received as, in my
opinion, would justify the Company in offering the
bonds rata to the shareholders without the precau¬
tion of requiring, or the exj^ense of paying for, any
guarantee, thereby saving for the Company the com¬
mission of $514,500. The cash proceeds of such issue
would be $10,290,000, to be applied to the payment of
floating debt, leaving for Receivers' certificates, arrears
of interest, &c., a debit balance of $3,184,283.82, which
could readily be paid out of the proceeds of the sale of
$5,000,000 unissued general mortgage bonds, or by the
proceeds of an issue of part of the new loan hereinafter
pr02:)0sed.
This system of paying the floating debt at once re¬
duces the fixed charges of the Company over $600,000,
and with the additional reduction that will result from
the adoption of the new funding scheme, hereafter re¬
ferred to, there can be but little doubt that dividends.
11
upon both common shares and deferred bonds, may be¬
fore long be exjoeeted, from the general prosperity of
the country and the increasing business of the Com¬
pany ; and when this point is reached the shareholders,
who have subscribed for the deferred-income bonds, Avill
liaA'e so great an advantage over tbose Avho do not that
there can be but little doubt that all who properly ex¬
amine the question, and can afford to do so, Avill become
subscribers, Avhile those who have been offered the op¬
tion, and do not subscribe cannot complain, as their
property will have been saved for them by the voluntary
action of their associates, though its earning poAver will
for some years be limited to six per cent, upon its par
value. The folloAving comparison Avill shoAA" the dif¬
ference in faA'or of those aaTo' subscribe AAdien the
dividends are but six per cent, upon each class of secu¬
rities.
SUBSCEIBER. KON-SUBSCRIBER.
Investment.
Income.
Per cent .
of Investment,
Dividend.
Income.
Per cent.
of
Dividend.
1 share, $50
$3
6 1 share, $50
ïtpo
6
1 bond, 15
3
20 :
Total, $65
$6
9Ä i $50
1
$3
6
Second.—To further reduce fixed charges. To accom¬
plish this several plans have been suggested, principally
afíecting the general mortgage bonds, and the securities
12
below them. It has been proposed by some to scale
the interest npon the general mortgage debt to 4 per
cent., and to make all subsequent creditors accej)t
fifty cents on the dollar. Others have suggested the
issue of preferred income obligations for all securities
below the general mortgage, so that if earned, full inter¬
est should be paid ; while in bad years, if not earned,
no fixed charges would become cumulative for any class
of obligations below the general mortgage. Still another
plan suggested is to give bonds bearing a low rate of
interest for all junior obligations, with an additional
bonus of common shares entitled to three per cent, divi¬
dends out of earnings. Of the above plans, all which
are legal, and do not attempt to force an unwilling credi¬
tor to part with his obligations, are entitled to respect ;
yet, it seems to me that nearly all of them begin at the
wrong end, by siq^posing it possible that the lowest class
of obligations, so far as security is concerned, should be
willing to accept the low^est rate of interest. Fortu¬
nately, the Company has it in its power to offer an un¬
doubted first-class security, accompanied by a moderate
rate of interest, to investors, and with the proceeds retire
obligations and purchase guarantees bearing so much
higher rates of interest, that the difference resulting
from this system of exchange, together with the saving
of sinking fund charges, will alone give all the relief
required to place the Company upon a firm financial
basis and guarantee dividends to its shareholders.
The annexed carefully-prepared table, which includes
the $5,000,000 of unissued general mortgage bonds, will
show the present funded debt of the two companies, the
13
capital upon which rentals of leased lines is paid, and
the amount of such guarantees of the Comj)any as in¬
volve an annual cash outlay hy the guarantor, together
with the annual interest and rentals payable, and the
rate which such annual payments hear, first to the par
of the principal, and second, to its present market value.
Nanio.
No. 1.—Consolidated and prior loans
Improvement mortgage loan
Divisional coal land bonds
Real estate, bonds and ground rents Philada. & Reading B. B. Co.
Baal estate, bond.s, and ground-rents Coal and Iron Co
General morignge scrip
General mortgage loan
Total No. 2..
Totals Nos. 1 & 2
Income mortgage loan
Scrip, convertible into above
No. 3. ( Convertible open debenture loans
I Open debenture loan Philadelphia & Reading Railroad Co
^ Open debenture loan Coal and Iron Co
Total No. 3
No. 2.
OBLIGATIONS.
Ainonnt at
I'ar.
S24,200,500
Present market
value.
Ç0,3G4,0û0j
12,OGÖ,OOOi
1,01G,252!
716,55G¡
],741,C2o!
130,500,190
|i-i,3G4,000
10,277,050
1,916,252
716,556
151,403,428: $44,905,714
$75,609,928' $75,405,904
j
$2,454,0001 $1,79
3,400,009' 2,05
1-0 527,900j 5,26
1,334,5001 54
1,731,000; 51
O
*: z c
Annual charge
11 -
q" S
Í ~ - st
« 5 3
« °
$1,580,800
6.5
5.2
$501,840
6.
6.
905,900
7.
8.8
114,975
6.
6.
48,018
6.7
6.7
104,497
6.
7.5
1,481,760
6.
6.9
$3,216,990
6.3
7.2
$4,797,790
63
6.4
$171,780
7.
9.6
204,054
6.
9.9
736,053
7.
14.
73,453; 5 5
13.4
121,170
■ 7.
2.3.5
$10,448,.309, $10,177,237Í $1,307,410' 6.7 ' 12.8
Mine Hill & Schuylkill Haven Railroad Co
Mount Carbon & Port Carbon Railroad Co
Mill Creek & Mine Hill Railroad Co
Schuylkill Valley Railroad Co
Little Schuylkill & Ea?t Mahanoy Railroad Co
East Pennsylvania Railroad Co
Philadelphia, Germantown, and Norristown Railroad Co
Chestnut Hill Railroad Co
North Pennsylvania Railroad Co..
Delaware and Bound Brook Railroad Co
Total No. 4
Catawissa Railroad Co
Schuylkill Navigation Co
Susquehanna Canal Co
Chester Valley Railroad Co ...
No. 5. / Colebrookdale Railroad Co
J Pickering Valley Railroad Co
I Schuylkill Iron Co
[ Danville Iron Co...,
\ Philadelphia, Newtown, & New York Railroad Co
Total No. 5
Grand Total
■No. 4.
f4,02d,500
$1,505,200
$321,800
8.
7,1
282,350
338,820
36,250
12.8
10.7
323,375
362,180
33,000
102
9.1
576,050
403,235
29,450
5.1
7.3
3,506,650
3,506,650
213 280
6.1
6.1
1.',205,450
2,005,785
138,650
6.3
6.9
2,246,900
4,718,490
277,623
12.4
5.9
120,650
243,713
16,478
13.6
6.8
11,547 789
12,81.2,758
754,115
6.5
5.0
3,386,799
3,641,799
224,207
6.6
6.4
$28,218,513
$32,558,630
$2,044,883
7.2
6.3
$6,161,850
$5,351,987
$365,235
59
6.8
12,736,588
7,660,880
635,776
5.
. 8.3
5,029,396
2,392,665
243.488
4.8
10.2
500,000
200,000
80,000
6.
15.
600,000
300,000
36,000
6.
12.
332,300
132,920
23,261
7.
17.5
12,000
12,000
840
7.
7.
39,000
19,500
2,730
7.
14.
700,000
420,000
42,000
6.
10.
$20,111,134
$16,489,952
1
$l,379,330j 5.3
8.4
$140,387,884
$134,631,723
$9,520,413
6.4
7.1
Character of obligation.
. Amount at par.
Amount at market value.
Annual charge.
Rate per cent, upon
par amount.
Rate per cent, upon
market value.
No. 1.—Consolidated Mortgage and prior issues
$24,206,500
$30,500,190
$1,580,800
6.5
5^2
No. 2.—Obligations after Consolidated and before In¬
come Mortgages
51,403,428
44,905,714
3,216,990
6.3
7.2
No. 3.—All obligations subsequent to General Mortgage..
19,448,309
10,177,237
1,307,410
6.7
12.8
No. 4.—Best Group of Leased Lines
28,218,513
32,558,630
2,044,883
7.2
6.3
No. 5—Second Group of Leased Lines
26,111,131
16,489,952
1,379,330
5.3
8.4
Total
$149,387,884
$134,631,723
$9,529,413
6.4
7.1
17
I have to propose that a new mortgage upon all the
property of both Companies he made, securing an issue
of five per cent, obligations, without sinking funds or
foreclosure clauses, which issue should be divided into
two classes, A and B, the former having priority of
lien and interest charge over the latter. Class A to he
for $75,000,000, to retire Nos. 1 and 2, in above con¬
densed table ; Class B to be for $75,000,000, to retire
No. 3, and to purchase from time to time Nos. 4 and 5.
All securities included in Nos. 4 and S, when purchased,
to be held by the Trustees of the mortgage as additional
security therefor, with proper provisions for the income
of all, and voting power of share capital of leased lines
being received and held by the Company. Class A
should be either perpetual, or 50-year obligations, with
provision in the mortgage for renewal at expiration of 50
years; the interest on Class A to'be cumulative, and
subject to be collected by legal proceedings upon any
default. The bonds of Class B should he perpetual,
and while the interest should also be cumulative, for
the protection of the market value of Class A, it
should be provided that no suit could be brought to re¬
cover interest until three years after default had been
made. There can never be any doubt that the Com¬
pany that has earned nearly $9,000,000 in 1880, will
always be able to earn the $3,750,000 interest upon
Class A ; and as in America three years is undoubt-
edh' long enough to recover from the effects of a panic
or business prostration, that period of grace, given in
case of any possible default on Class B, would enable
the Company to sustain itself against all contingencies,
and would prevent the fall in the market values of Class
3
18
A, whicli miglit otherwise result from suspension or in¬
solvency. A striking instance of the effect of the had
credit of a debtor upon the market value of an obliga¬
tion, the security of which was in no manner affected
b\' the insolvency of the obligor, is shown by the fact
that the Stock Exchange quotations for the consolidated
mortgage of the Company fell to par iqion the announce¬
ment of the suspension last iMay.
When it is considered that the annual charges upon,
say $75,000,000 of Class A, and $05,000,000 of Class
B, making together, $140,000,000, which Avould proba¬
bly be sufficient to retire all present obligations of the
Company, would be at five per cent.
only $7,000,000 00
And that in the present year, with nine
months working at half time, the two
Companies have earned - - 8,785,58(3 00
Showing a surplus of - - $1,785,58(3 00
And that the bonds would be a first
lien upon property worth, according
to the list of assets before given - $1(51,258,070 59
To which must be added for value of
leased lines securities purchased, say 50,000,000 00
Making a total of - - $211,258,070 59
There can he but little doubt that the new issue would
command a high market price.
Assuming that say $140,000,0()0 of the new bonds
conld be sold for no greater sum than par, that all the
obligations in the above list could be retired or pur-
19
chased, and that the deferred income honds are issued,
the saving in fixed charges would he as follows :
Total full fixed charges, including sink¬
ing funds as per statement on
page 6, _____ $10,957,11(5 88
Interest on $140,000,000 at 5 per cent., $7,000,000 00
Saying _____ $3,657,110 88
As the net earnings of the present year
have been _____ $8,785,580 00
If the fixed charges had been but - 7,000,000 00
There would have remained for divi¬
dend fund _____ $1,785,580 00
Or over 5 per cent, on tlie share capital.
It will be, of course, a long time before all tho obli¬
gations in the above table can he retired or purchased.
The consolidated and prior issues being a first lien of
under $25,000,000, averaging 61 per cent, interest, are
not likely to exchange for a 5 j^er cent, security until
their bonds are so near maturity as to make them lesg
valuable than a 5 per cent, perpetual or 50-year obli¬
gation, and therefore but little, if any, relief can be ex¬
pected from any change in the consolidated mortgage
and prior issues.
Witli all obligations under head of No. 2 in the con¬
densed tal)les the case is diiferent. The Improvement
mortgage has no lien upon the coal lands ; the accumu¬
lation of sinking funds, for which the Company has a
right to draw at par, next year will amount to about
20
$1,350,000, or nearly 15 per cent, of tlie entire issue.
This, with the rapidly-increasing accumulative sinking
fund, will prevent the Imjjrovement mortgage from
rising in value much above par, and enable the Company
to exhaust the loan A^ery rapidly, either by voluntary
exchange, or by purchase with the ¡proceeds of the new
issue. The divisional coal land mortgages have but
eleven years to run, and though first liens upon particu¬
lar tracts of land, the great majority of them will doubt¬
less be glad to exchange for a well-secured perpetual
obligation, Avhich will command a higher price in the
market. The bonds and mortgages on real estate can
lie paid at any time, and the general mortgage scrip
matures in 1882. This leaves, out of Group No. 2, but
the General mortgage, noAv selling at 86 per cent., which,
it is expected, will rapidly be absorbed, either by pur¬
chase with the proceeds of or exchange into the new
bonds. Of those embraced in Class No. 8, there will be
bnt little, if any, difficulty. The income mortgagecan be
paid at any time ; the scrip is dne in 1882 ; the debentures
and convertibles noAV selling at from 40 to 60 per cent.
Avill gladly exchange at reasonable rates into a mortgage
obligation, or can be bought from time to time with the
proceeds of the new issue, on very favorable terms. It
will, of course, be necessary that the right of conversion
into stock shall follow all convertible bonds exchanging
into the new issue. With the leased lines obligations in
(dass No. 3, but little can be expected to be accom¬
plished for some time, but Avith those under the head of
Number 4, most favorable exchanges and purchases can
be made. It must of course be expected that as soon
as it is known that purchases and exchanges are to be
21
made, the market value of the securities will appreciate,
hut it is believed that within a year, hy the issue of the
proposed new 5 per cents., and the deferred income bonds,
the following saving in fixed charges can be made :
li per cent, on $100,000,000, - - - $1,500,000
Saving in interest on floating debt hy issue
of deferred income bonds, - - - 600,000
Saving in sinking fnnds, _ _ _ 600,000
Total, - - - - - $2,750,000
Which is much more than the most earnest advocate
of forcible scaling or foreclosure could have hoped to
accomplish. Such a saving would reduce the fixed
charges and rentals to $7,957,116.88, or $728,469.12
less than earned in the present year, and place the Com¬
pany beyond all danger of disaster.
As the proposed new mortgage will be without sink¬
ing funds, and as at least one-half, and possibly all, of
the issues of bonds nnder it will he j^erpetual, it will
he necessary to guard against the loss of security due to
the gradual exhaustion of the coal in the lands of the
Company ; and for this purpose I would propose that
5 cents for every ton of coal taken from the lands,
which would amount before exhaustion to at least
$90,000,000, shonld be annually paid into the hands of
the trustee of the mortgage to be expended hy the Com¬
pany with the approval of the trustee, either upon the
present estates of the Railroad Company, or in the
purchase and acquisition of new proi^erty, provided such
expenditure, or purchase, or acquisition, in the opinion
of the trustee, adds an additional security to the mort¬
gage equal to the amount so expended.
22
It is proper to say that witliiii the last two or three
weeks tliis plan of refiintliiig the debt of the ComjDany,
with all the details necessary for its thorough examina¬
tion, has been confidentially snhinitted to experienced
financiers, representing influential American, English,
and Continental bankers, and has met with their entire
approval. I have had an offer by a most resi^onsihle
and re.spectahle house to take charge in America and
in Europe of the entire scheme, for a commission to he
agreed upon, and to furnish the Comjiany in advance of
the issue of the new loan with all the capital necessary,
from time to time, to purchase the obligations which
must he retired, or idaced in trust, as a preliminary
requisite to the issue of the new obligations. And I have
also had an offer to take at a firm price without commis¬
sions, five million dollars of each A and B classes, and
though the price offered is less than I think the bonds
Avill bring, it was suificient to enable the Company to
save, in any event, in fixed charges an average of from
three to five ¡^er cent, upon the par of the issue. Having
had previously some eommnnication upon the subject
of the proposed issue with Europeans who had pledged
their co-operation, I do not think it would be proper for
the Company to accept any offer of purchase or agency
without furtlier considtation with them, and for the pur-
[)Ose of such consultation I am about to visit London
and Paris, and trust that before my return in January,
all ])reliminary negotiations for the success of the issue
will have been completed.
Although the object of this 2)aper was to present the
above 2)lan of financial relief, it is hut 2)ro|)er, while I
am communicating directly with the shareholders, to
23
make use of the opportunity to refer to other suhjeets
especially as my ahsence may possibly prevent me from
furnishing as full a report of the condition of the Com-
])any as is usually presented at the annual meeting.
Allnding fírst to the prior reference to the value of
the coal lands, and to the estimate I have j^laced upon
their value in the list of assets of the Comjiany, I have
to say that annexed to this statement will he found a
report by Mr. Joseph S. Harris upon the value of the
coal proj^erty of the Company. JMr. Harris was for
several years in the employ of the Coal and Iron Com¬
pany as a mining engineer, next in rank below the chief
engineer, Mr. Pleasants, hut for some years has been
Mining Engineer for the Lehigh and ^Vilkesharre Coal
Company, and the Lehigh Coal and Navigation Com¬
pany, and now occupies the position of General Manager
for the Central Railroad Company of New Jersey. Im¬
mediately after the a2:)pointment of the Receivers, one
of the counsel for the latter, who had been em^^loyed
by the Comj^any at the date of its failure to act as one of
its legal advisers, was anxious to have reports made
ujion the value of the coal aud iron lands of the Coni-
2iany, and suggested the names of Mr. Josej^h S. Harris
to re2)ort iqwn coal lands, and Mr. Lranklin Piatt to
report upon iron ore lands. These selections being ap-
2)roved by the Receivers, I wrote by their request the
following letter to Mr. Harris :
24
"Copy."
Philadelphia, June Ylth, 1880.
Joseph S. Haekis, Esq.
Deak Sie :—I have been requested by the Receivers
to write to ask you to make for tbem a full report upon
the condition, value, and capacity for production, and
present and future earning power of the coal lands and
colliery property of the Philadelphia and Reading Coal
and Iron Comi^any.
It is desired to have your opinion and judgment—
First.—With reference to the value of the whole es¬
tate treated as an entire property, both with reference to
its being an independent estate and as being owned by
and connected with the lines of the Philadelphia and
Reading Railroad Company, and to have your carefidly
considered opinion and advice as to the best manner of
treating and managing the property so as to produce the
greatest revenue consistent with its future safety and
productiveness, both directly for the Coal and Iron Com¬
pany and indirectly for the Railroad Company as a
transporter.
Second.—It is also desired to have your report with
reference to the value, condition, and present and future
earning capacity of each particular tract or body of
lands, and of each colliery which constituted a separate
purchase by the Coal and Iron Company, and especially
of each tract mentioned and described in the accompany¬
ing list of tracts, upon which there are separate mort¬
gage liens, and as the question of the payment of interest
upon the mortgages upon these tracts, must be considered
25
by the Receivers at an early day, it is requested tliat
you take up this second branch of the question first,
and that you report thereon as quickly as possible,
especially with reference to those particular tracts upon
which interest is due on July 1st next, so that the
Receivers may have the benefit of your opinion and
advice, when considering the question of the payment
of such interest.
Mr. Whiting and all other officers of the Company,
will permit you to have full access to all maps, records,
papers, and accounts in their possession, which may be
of service to you, and will give you such other personal
aid and assistance, as may from time to time be required
by you.
Very respectfully,
(Signed), F. B. GOWEX.
Some two months after his appointment, Mr. Harris
submitted the elaborate report which is hereto annexed.
In this re^^ort, so long as he confines himself to his
profession as a mining engineer, his conclusions are in
the highest degree satisfactory ; the enormous quantity
of coal contained in the lands ; the length of time the
deposit will last ; the fact that during the next few
decades the Schuylkill region and the Company's estates
(even according to the limited idea of future development
entertained by Mr. Harris) will treble their production,
while ^le "Wyoming region in the same time will increase
but 20 per cent., and the Lehigh region will fall off 00
per cent., will effectually demonstrate the great advan-
4
26
tage possessed by the Philadelphia & Reading Railroad
Company over its competitors in holding a body of lands
able to furnish an unlimited tonnage for generations to
come. When Mr. Harris steps beyond the bounds of
his 211'ofessional employment, and ignoring the request
contained in his letter of instructions, that the Avhole
estate should be " treated as an entire property," " so as
to produce the greatest revenue consistent with its future
safety," proceeds to criticise the policy of his former
superior officers—the Managers and President of the
Company—in ¡purchasing so large an amount of coal
lands, and to recommend the disintegration of the estate,
by the sale of a number of tracts ; it is but necessary to
say that he was not requested to express an opinion on
such a subject. Those whose actions and policy he criti¬
cises were wiser in their generation than himself, and
much more competent than he supposes to form a correct
judgment upon such a question. Rothing would be more
detrimental to the best interests of the company than to
follow his recommendations to sell off or get rid of a lai'ge
¡portion of the estate. As the market does not yet take the
quantity,of coal that can now be produced by collieries
actually opened, the company having worked but little
more than half time during the year, with many of
its collieries idle during the entire season—it would
follow that for every new colliery opened or worked
iqpon lands to be sold by the company, or for every
idle colliery of the company started by a purcbaser,
there would be such an increased production thrown
u])on a market already crowded, that to the éditent of
the additional output, would compel the company to
cease working at the collieries it retained. If by work-
27
ing but half its collieries, tlie comj)aiiy succeeds iii
getting fair j)rices in consequence of keeping tlie other
half idle, what would he thought of the policy of selling
the idle ones so that competitors could produce the
tonnage required hy the market, and compel the com¬
pany either to close those which it retained, or to suffer
loss hy continuing them at the low prices caused hy
over production ?
But it is in dealing with the question of the money
value of the land that Mr. Harris makes the gravest
mistakes. This money value is arrived at hy an
algebraic equation—the known quantities being ; First,
that hut 27 per cent, of the coal in the ground, or
400 tons per acre for every foot in thickness of coal
seams, can he sent to market. Second, that thirty cents
per ton only, for all future time, will he realized both
for royalty and for the profit of mining. Third, the
quantity to he jiroduced annually until exhaustion of
the land. Fourth, that 8 per cent, compound interest
is to he charged against the land, of Avhich 2 per cent,
annually, compounded at 8 per cent., is for taxes and
improvements. Fifth, that Aidiile the land is to he
deliited rvith 8 per cent, compound interest, hut 4 per
cent, compound interest is to he alloived for the invest¬
ment and accumulation of a sinking fund to proAÛde
against the exhaustion of the mineral deposit. Mhth
these factors—the unknoivn quantity, or x, being the
value of the land—Mr. Harris ascertains such money
value to he, including all equipments and imiirovements,
in round numbers, $80,000,000.
I iiropose to show that the premises upon Avhich the
conclusion is founded are absolutely incorrect. In the
28
first place, 27 per cent, of tlie coal in tlie ground, or 400
tons per acre for every one foot in thickness of coal
seams, is much less than can he taken to market. It
is doubtless true that in times past, under a wasteful
and extravagant system of mining, especially in large
veins, but from 20 to 35 per cent, of the coal in the
ground was sent to market ; but in those days tlie pea
and buckwheat sizes of coal, and sometimes the chestnut
coal, were thrown on the culm pile. With limited capi¬
tal it was the custom for tenants of mining rights, in
order to get coal quickly, to open their mines so badly
that when the pillars had to he taken out more than
half of the coal contained in them was lost. Again :
tli^ projiortion of coal that can he sent to market from
a small vein is always greater than in a, large one, and
it is unfair to apjily to a whole region a rule appli¬
cable only to one large bed. Apart, however, from all
estimates founded upon the data of the past,it can hardly
be possible that the large anthracite companies, or even
the State itself, would long permit so shameful a waste
of coal in working as 78 percent., or suffer a system of
mining to prevail under which for every 100 tons of
coal in a vein but 27 were sent to market. So far,
however, from the past furnishing any warrant for
the estimate of 27 per cent., the cases upon which
such estimate is founded were the exceptional ones of
large veins, badly worked, and when coal, now con¬
sidered merchantable, was thrown away. At a well-
known colliery in the Lehigh region working the
Buck Mountain vein, 1,000 tons per acre for every
one foot thickness of the vein, or to two and one-half
times tlie amount assumed by Mr. Harris, has been actu-
29
ally shipped to market. It is in my judgment fair to as¬
sume that in the future, when all the smaller sizes and
even the culm itself will he merchantable, more than 50
per cent,, and in the present at least 40 per cent,, instead
of 27 per cent., of the coal in the ground can and will be
sent to market ; and taking 40 per cent, as the jmoper
factor, without changing any other of Mr. Harris'
premises, the total money value of the estate would he
over $45,000,000.
Upon the question of the amount of money to be real¬
ized in the future for the royalty upon coal, as well as
for the profit of mining, Mr. Harris is certainly wrong.
The coal market is now taking about 25,000,000 of tons
of anthracite coal per annum. The consumption of the
future is raj^idly increasing. "With the exception of the
last, there has been no decade in which the consnm])tion
has not doubled ; and though such a ratio of increase
cannot be expected for the future, yet no one suffi¬
ciently familiar with the subject can doubt that it
will not be ten years before the consumption reaches
85,000,000 of tons—an increase of less than thirty per
cent, in ten years, as against one hundred per cent, in
all previous decades prior to the^eriod of business de¬
pression wffiich followed the panic of 1873. From this
point the demand will certainly only he limited by the
output. Now, if Mr. Harris is right in his theory, that
by the year 1890 the total output of anthracite coal can¬
not exceed 32,000,000 of tons ; that by the year 1900
it will not be above 36,000,000, and that the maximum
production, say 37,000,000, will he reached in 1910,
at which time the Schuylkill region will he producing
two-thirds of the entire output ; it is difficult to conceive
30
liüw he limits the united profit of landlord and miner to
thirty cents ])er ton. Certainly, under such conditions
as must exist, according to Mr. Harris, within ten years,
anthracite coal will be considered a luxury, and the
pi'ofit to be made upon it by the owner and miner will
only be limited by the extent to which the rapacity of
shareholders can be controlled by the justice and for¬
bearance of the managers of the anthracite companies.
AVithout the slightest injury to the public tbis ])rofit
may be exjiected to be one dollar per ton, which would
make the actual value of the lands $100,000,000, but if
this profit is restricted to fifty cents per ton, the value of
the estate even at the ratio of production estimated by
j\i]\ Hari'is, would be $70,000,000, though subjected to
the injustice of a debit of 8 per cent, componnd interest.
And as there would be no difficulty in renting the [)ro})-
erties, as now improved, for f50 cents jicr ton, which,
with 40 per cent, for output, according to Mr. Harris's
system of calculation, would make their money value
$75,000,000, there can be but little (piestion that the
value given in the list of assets is entirely Avithin the
bounds of a fair appraisement.
In Mr. Hari'is's report of money value, and in the ])ro-
cess by which he arrÍA'es at the result, he omits all refer¬
ence to the value of the property to the Philadelphia
and Heading Ihulroad Company as a transporter, though
his attention was called to that element of value, and
he refers to it in the ])reliminary discussion of the
general subject. The transjxn'tation of coal has always
been a source of great ¡u'oíit to the Railroad Company,
and the only doubt in the past about the permanency of
the eai-ning power of the Company as a transporter, was
31
due to the fear that rival companies would tap the
Schuylkill Region, and divert the coal tonnage to their
own lines. This danger was happily averted by tlie
purchase of the coal lands, and the fact that at the
lowest probable rates tlie Railroad Company alone will
in the future realize a profit as a transporter of at least
fifty cents 2^er ton for transportation, adds an element of
value to the lands, which, if included as one of the
factors in Mr. Harris's equation, would have produced
an enormous aa;i>;re2:ate even after the most liberal allow-
OÖ o
anee for interest upon the value, and renewal of the
plant required to conduct the transportation.
It will he observed on reading JMr. Harris's report and
referring to table G, which accompanies it, that the sum
of thirty cents per ton is not the result of striking an
average of many different sums representing the respec¬
tive profits to arise from working eighty different tracts,
each having its particular advantages or disadvantages
as compared with the others, but that it is a Procru.stean
bed to the dimensions of which each tract is inexorably
required to conform, and thus a body of lands located
at the shipping point of the main line, where no lateral
railroad freights or terminal expenses are to be paid, is
credited Avith no higher rate of profit than another tract
thirty miles more distant from market, upon the product
of Avhich forty-five cents of lateral tolls have to be paid
before the coal reaches the location of the former, at
which the product of each brings exactly the same price ;
Avhile in other cases the products of collieries producing
a special kind of coal, for which there is an unlimited
demand at good profits, is estimated to be of as little
value as the output of other collieries j^i'oducing the
32
class of coal common to all regions, and the profit upon
which always depends upon the prices established by the
competition of other companies. By this system of com¬
putation the money value of tract No. 72, known as the
the Munson and Williams lands, embracing over 6,000
aci'es of most valuable coal land, and now actually pro¬
ducing an annual profit of at least $400,000, which can
he almost indefinitely increased in the near future, is re¬
duced to $1,642,007, although after paying interest on
that amount, the aggregate profits of the four succeeding
years will (if nothing unforeseen occurs) produce a
much larger sum than that reported as the total value,
ami the land will then be worth, as it is now, from
six to ten millions of dollars.
But, erroneous as Mr. Harris's conclusions are about
the percentage of production, and the future profit tobe
realized from mining, I have not been called upon to
defend the lands in which I take so much pride from
any injustice half so serious in its consequence as that
Avhich reduces their present money value to such a sum
as will remain after deducting the enormous aggregate
of 8 per cent, compound interest during the period of
their exhaustion, or until a sinking fund arising troni
their own revenues, made accumulative at 4 per cent.
])er annum, shall have produced a sufficient sum to
i-epresent the assumed value of the land. This is un¬
just in principle, unjust iu its details, unjust in its
ajtplication to the whole estate, and frightfully unjust
in its effects upon particular bodies of laud. If the
sinking funds are only credited with 4 per cent, com-
])ound interest, why is not the land charged with but 4,
33
or, ut the utmost, 6 per cent. ? It is assumed that 2 per
cent, annually is for taxes and improvements ; hut if
this is required as an annual charge, wliy is it com¬
pounded at 8 per cent., instead of 4, or, at the utmost,
5 or 6. The interest of 6 or 7 per cent, iq^on the
coal land mortgages runs only for ten or eleven years,
and if for the long time over which Mr. Harris's sink¬
ing funds are to extend 4 per cent, is the best rate at
which they can be invested, why is it assumed that a
company which can only invest its money at 4 per cent,
will be compelled to borrow at 8, and why, if such a
condition could possibly exist, does not IMr. Harris
suggest that the sinking funds he invested in reduction
of the Comj)any's own debt ?
'It will he seen also, that this inflexible annual charge
of two per cent., compounded at eight j)er cent., is made
against all tracts as necessary for taxes and improvement,
no matter whether, as in some cases, a tract is already
so well supplied with colliery plant, as never to require
another dollar expended for the purpose, or as iii others,
that all the coal upon the tract will he worked out by the
improvements already erected upon, or hereafter to he
supplied out of the two per cent, annual charge against
an adjoining tract. In the case of the Philadeljihia and
Mahanoy Lands, No. 21 of Table G, reported to he
worth $3,189,877, and to he probably exhausted by the
year 1901, this annual charge of two j)er cent, com¬
pounded at eight, is made, though there are already ten
collieries ui^on the tract, and it is not at all probable
that any additional improvements will he required,
beyond those which will he from time to time provided
5
34
out of tlie aiiiount charged to the mining of coal. Again
this system plays havoc with the values of such lands
iis the Comijany, entirely for its own purposes, will not
he likely to work for many years to come. Thus the
Tamaqua Lands, No. 24 of Table G, located at a ship-
jmig point without lateral railroad charges, and which
contain according to Mr. Harris's report, 68,110,0(X)
tons of merchantable coal, are reported as worth hut
$1,388,797, while the Philadelphia and IMahánoy Lands
above referred to, containing hut 45,144,000 tons, and
subject to lateral railroad charges, of from fifteen to
twenty cents, are reported to he worth $3,167,477, the
difference being produced by the eight 2^er cent, com¬
pound interest, running against the Tamaqua tract,
which may remain idle for many years, during which
no revenue is being produced for the sinking fund.
Again, the two adjoining properties. No. 79 and No.
80, belonging to the ]\Iamnioth Vein Coal & Iron Com¬
pany, and the Delaware Coal Company, which iVIr.
Harris reports as being able, after the year 1905, to
produce a revenue of $180,000 per annum for a hun¬
dred years, are reduced in value by this charge of com¬
pound interest to but $617,902, including improvements,
for 2,299 acres of Mammoth Vein Coal lands, contain¬
ing at 27 per cent, of the total deposit over 60,000,0(K)
tons of merchantable coal, notwithstanding the fact that
the two deep shafts, and colliery plant and equipment
upon these tracts has cost over $1,000,000. And for
the same reason, 10,500 acres of the Schuylkill and
Susquehanna tract, containing, by Mr. Harris's com¬
putation, 42,000,000 tons of coal, which can be sent to
35
market, and being capable of producing at a profit of
but thirty cents per ton, an annual revenue of $120,000
for one hundred and five years, is reported as worth
but $81,416, or less than eight dollars per acre, while
the Philadelphia and Mahanoy lands, above referred to
and reported as being able to produce a revenue of
$150,000 per annum for but 80 years, are estimated as
worth $3,167,477, or $1,245 per acre. Mr. Harris
seems entirely to have overlooked the fact that he him¬
self had recommended the sale of some of the lands, and
that one of the elements of the money value of any
property is the ¡"»rice it would bring in the market, and
it is certain that an estate of coal lands capable, at but
thirty cents per ton for royalty, of producing for 105
years an annual revenue of $120,000, will probably
realize at public sale a sum nearer $1,500,000 than
$81,416, and is apt to find a ready purchaser among
capitalists and coal operators who could within two
years realize the expected annual revenue, without
the danger of the value of their property being over¬
shadowed by an imaginary book-keeping cbarge of 8
per cent, compound interest during fifty years of non-
production.
«
There is a rough " rule of thumb " method of estimat¬
ing the va^lue of coal lands, which can be applied whenever
the quality of the coal, the character of the veins, and the
2:)roximity to market is known—and that is, to rate
them at so much per acre according to current market
value. For some time but little good coal lands in
other regions have been bought at less than from $751)
to $1,250 per acre. In England, where the aggregate
36
thickness of the seams is much less than in the Penn-
S36vania anthracite region, and where the revenues of the
owner are generally produced from rojmlties of from six¬
pence upward per ton, coal lands are worth from $3,000
to $5,000 per acre. It is donhtful whether any of the
other anthracite coal companies of Pennsjdvania would
entertain an offer for the purchase of their coal lands at
$1,500 per acre; and I am sure that some of them,
especially the two corporations whom Mr. Harris now
represents, would consider their balance sheets very
much distorted, if the valuation of their coal estates,
including improvements, v/as reduced to below $350
per acre, the price reported by Mr. Harris as the value
of the coal lands of the Philadelphia and Heading Coal
and Iron Company. The truth is—that those who
were anxious for a report upon the value of the coal
lands desired a low valuation, and it has been obtained
by means of an algebraic equation, though I am confi¬
dent it could not be ¡produced in any other manner. In
saying this I do not intend to reflect in any manner
upon Mr. Harris's motives, nor to find fault with or criti¬
cise anjdhing but his judgment. I doubt whether any
one could be found more pure-minded, or of higher in¬
tegrity of character, than himsejf; but apart from the
open honesty and simplicity of his character, the quiet
paths of his old profession, in which, for many years,
he had to oppose nothing but the secret forces of nature,
have unfitted him to contend with or understand the de¬
pravity of humanity ; and I am sure that in the more
eidarged sphere of a railroad manager, upon which he
has recently entered, he will be shocked to find how often
37
it will require a little of the wisdom of the serpent to
keep himself as harmless as the dove.
The report of Mr. Piatt upon the suhjcet of iron ore
lauds, Avhile not dealing as fully with money values as
does the report of IMr. Harris, is equally uufavorahle,
but the subject is not of suiFicieut iuqiortauce to justify
the expense of printing the report.
The total iron ore estates of the Company cost hut
$655,819.50. Their value is estimated in the list of
assets at hut $300,000. Tliere can he no doubt that the
iron ore lauds could have been acquired at less prices
recently than were paid for them at the (j^ite of i^ru-cliase,
and had it been known through what depre.- sion the iron
trade of America would have to pass in the hist few years,
their purchase would have been delayed in order to take
advantage of lower prices. They were houglit to insure
at all times a suirply of ores to the blast furnaces of the
Schuylkill Valley, and one tract ou the Hudson was in¬
tended to provide hack loading for returning coal barges.
All these laudswere bought after examination and re])orts
by gentlemen of equal professional attainments and of
f.ir greater experience and practical knowledoe than Mr.
Piatt.
Mheu I became President of the Company, uearlv
twelve years ago, I came to the conclusion that its only
weakness was its inability to control its coal tonnage,
and I advocated and secured the jmrchase of the coal
hinds. I said then, as I believe now, that the true
policy of the Company was to purchase the lauds, and
$
38
secure proj)er coiiueetions and terminal facilities at tide¬
water ; that 110 attempt should he made until this was
accom¡)lished to seoure western alliances or huild west¬
ern railroads. I thought I saw then, as I surely do iioiv,
that the struggle to secure east bound Avestern freight
Avould he determined in favor of the Company that
could furnish a western hound tonnage for the returning
cars. The enormous quantity of Avestern produce seek¬
ing shipment from the Atlantic ports is so great in com¬
parison to the quantity of merchandise going Ave.stAvard,
that the trunk lines mu.st depend principally upon anthra¬
cite coal, the future fuel of the prairies and the lakes to
load their returning care, antl the Comiiany that can get a
hacdv load of anthracite at from i to s of a cent per ton per
mile, Avill he ahle to oiithid for east-hound traffic any
rival that has to haul its ears hack empty. The Phila¬
delphia & Reading Railroad Company, OAvning fully
one-third of the area, and considerahly OA'er forty per
cent, of the tonna"'e of the anthracite regions, is the oidv
o o ' »/
Company that in the future Avill he ahle to supply in large
(piukiitities heyond the requirements of its OAvn lines the
tonnage neces.sary for hack loading of trunk line cars.
Without the expenditure of any money hy the Com¬
pany, its system of lines aauII he connected Avith Avestern
roads, and an ahundant east hound tonnage Avill he
secured, that Avill open up a a'aluahle western market foi'
the surplus coal ^^roduct of the Coal & Iron Company.
Already the Reading line is the Philadel2)hia terminus
of the system of roads tributary to, and connected Avith,
the Ncav York Central Railroad Company, and a iicav
connection, about to he built, Avill make a still closer con-
39
nection and alliance with the latter Company, as well as
with the Atlantic and Great Western lines. The Xew
York traffic of the Baltimore & Ohio Railroad Com¬
pany is now going to New AYrk via the lines of this
Com^^any, and in a short time connections to be made via
Harrisburg with the Baltimore & Ohio and Chesa])eake
and Ohio Lines will open the south and southwest mar¬
kets to the coal trade of the Company. The New York,
Lake Erie and Western Railroad traffic to Philadelphia
])asses over the North Pennsylvania Branch from the
Lehigh Yalley Road; and by means of the Delaware,
Lackawanna and Western Railroad, which has always
l)een an ally, the Reading Railroad may expect to se¬
cure the Philadelphia business of the Wabash System ;
and thus, Avithont the expenditure of a dollar, a terri¬
tory far greater than that drained by the Pennsylvania
Railroad is open to supply east bound traffic to the
Reading Railroad, and to take from the Coal A Iron
Company its surplus jiroduction of coal. Indeed, to any
one conversant with the limited area of anthracite coal
owned by the I'ennsylvania Railroad Company, and
the rapid exhaustion of the deposit in other regions,
it must be apparent that before ten years the Pennsyl¬
vania Railroad Companj'^ itself will be glad to divert
ten or tAventy per cent, of its east bound traffic to the
lines of the Reading Company at Milton, Dauphin, or
Harrisbnrg, in consideration of the cars being i-eturned
at the same points loaded Avith anthracite for AA'Cstern
markets.
I must also take advantage of the opportunity hoaa'
aff(Arded to reply to many criticisms upAUi the Company,
40
and upon its General Manager, Mr. Jolin E. MMotten,
based upon an allegation of extravagant and incompe¬
tent management of the Transportation Department.
For many years the Company has invariably inehided
its large payments for rentals of leased lines among its
working expenses ; and althongh this fact is known to
every one of intelligence who reads its reports, yet it
has enabled designing persons, through the medinm of
unfriendly journals, to allege that the working expenses
of the Reading Railroad are generally over 70 per cent.,
while those of other companies are from 50 to GO per
cent.
The truth is, that the Reading Road is one of the
mo.st, if not the most, economically worked roads in the
country. This cannot now be said to be due to the
favourable grades of its main line, as, its system having
grown to cover 826 miles of road, the main line of 98
miles is but a small proportion of the whole, and its
advantages are overbalanced by the 208 miles of coal
laterals, with their heavy grades and inclined planes.
]\Ir. AVootten began his railroad service in the shops of
the Company, and by his own merits has risen through,
all grades of promotion to be its General Manager. The
fact that, (with the exception of the lives lost three
years ago, by the accident on the Pickering Valley
Branch, caused by a washout of the road-bed during
the night, by a freshet of unusual severity, against
which no ordinary precaution would have availed,)
out of ninety millions of passengers carried, no sin¬
gle one has lost his life by any injury suffered when
41
he was occupying his seat in the cars, will show
with Avhat care the transportation of passengers is con¬
ducted, Avhile the following carefully prepared table of
the proportion of working expenses to gross receipts,
for the last ten years, of the principal railroads of the
country, Avill effectually set at rest all reports about the
extravagant management of the Company.
Proportion of Operating Expenses to Receipts, of Railroads named, from
1870 to 1879, inclusive.
KAJIE OF EAILROAD.
Philadelphia and Reading
Allegheny Valley
Atlantic and Great Western
Baltimore and Ohio...
Boston and Albany
Cleveland and Pittsburg
Central, of New Jersey
Delaware, Lackawanna and Western.
Lake Shore and Michigan Southern..
Lehigh Snd Susquehanna
Lehigh Valley
1870 ! 1S71 : 1872
per cent, percent, percent.
'1
58.75
46.75
69.25
51.00 I 57.30
54.75 i 57.50
1873 1874
porccnt.'por cent.
83.25
63.65
68.36 j 72.93
54.25 ^ 48.25
57.18 ! 55.66
62.50
64.00
60.75
50.00
63.75
65.50
84.33
61.40
74.47
44.25
59.49
39.50
65 25
54.25
64.75
55.25
70.00
67.25
64.62
79.26
51.98
47.46
46.07
68.44
39.00
57.75
50.80
65.75
77.75
63.30
75.56
51.22
48.09
42.94
63.13
38.75
51.33
1875
per cent.
53.70
58.25
81.00
63.59
70.46
52.66
55.70
33.62
69.61
54.00
54.00
1870 1877 I 1878 | 1879
percent, percent, percent, percent.
57.00
55.50
80.75
63.94
68.58
60.98
54.34
34.70
65.09
46.00
r.4.50
Average;
percent.
j
50.70
50.40
52.30
53.72
54.00
51.75
57.50
57.17
80.00
78.75
83.00
79.55
62.28
56.44
54.18
62.70
71.26
70.37
61.36
71.20
55.42
57.48
52.40
52.88
56.81
58.80
60.84
55.40
41.80
37.28
33.98
42.03
62.03
57.30
55.64
63.43
54.00
48.50
47.50
47.73
48.75
44.50
50.50
55.25
1871 to 1879
to
1872 to 1879
Michigan Central...;
Northern Central
New York, Lake Erie, and Western.
New York Central and Hudson River..
PennB3'lvania (Penna. R. R. Division)..
Penna. and New York Canal and R. R
Philadelphia and Erie
Phila., Wilmington, and Baltimore
Pittsburg, Cincinnati, and St. Louis...,
Pittsburg and Connellsville
Pittsburg, Fort Wayne, and Chicago...
United, of New Jersey
Gl.OO 63.65 : 69.04
64.00 1 68.00
62.90
64.25
67.25
100.00
64.00
74.25
62.40
63.00
73.50
100.00
63.25
73.00
77.50
52.50
74.00
64.29
62.50
72.75
100.00
59.75
77.75
106.75
53.75
72.38 ;
74.89
71.36 ' 70.11 72.43
63.22
51.74
70.00
88.50
64.38
87.53
99.25
63 38
72.35
73.00
62.34
56.10
51.50
69 75
61.75
68.25 1 74.19
75.00
64.93
57.50
63.50
71.64
58.50
77.00
62.48
59.90
64.00
66.37 63.55 ^ 63.97 | 67 60
67.46 i 69.95 ! 69.66 ! 70.00
74.00 j 68.00
61.16 I 61.11
56.50 I 53.75
57.50 ! 62.75
70.00 ! 72.80
72.12 i 76.99
83.50 89.00
58.55
69.25
58.50
68.00
65,00 I 64.50
70.00
52.00 I 60.19 Í 58.83
72.50 ; 65.80 62.50
68.00 ; 70.75 62.50
61.00 1 57.89 i 54.52
i
58.80 I 71.00 ! 66.33
59.26
54.00
56.00
69.00
55.00
55.91
54.00
55-92
67.00
1873 to 1879
62.40
57.92
63.80
79.80
59.76
71.83
79.00
57.33
66.75
CO
1871 to 1879
1871 to 1879
1874 to 1879
44
From tlie above it will be seen tliat tlie Pliiladelpliia
& Eeacling Eailroad made a better showing than any
except the three following ; The Cleveland & Pittsburg,
which is very nearly the same ; the Lehigh & Snsqne-
hanna, which, being part of the through line of the
Central New Jersey Eailroad Company, by which it is
leased, has no expensive Eastern terminal charges ; and
the Dehnvare, Lackawanna & Western Eailroad Com¬
pany, the exceptionally favoralde showing of which is
probably due to the fact that being the owner as well as
transporter of its coal tonnage it has ahvays made a lai'ger
credit to its transportation account than conld have been
secured in dnll times as freiglit iqion coal tonnage Avhich
it did not OAvn.
I snbmit the folloAving table, shoAving proportion of
operating expenses to receijAts, and cost of moAdng
freight per ton per mile for the elcA^en years since I
liaA'e been President of the Company, during all of
Avhich time the coal lateral railroads luiA'e been AAmrked by
the Company ; as compared Avith the same items for the
ten years preceding my administration, during half of
Avhich time the expenses of the coal laterals AA*ere not
borne by the Company :
o s
^ 3
Oí
to
Ol
o
en
p
Ol
-ï
Oí
CO
Oí
p
Oí
_Oi
CO
ö
00
to
Oí
I-*
M
1—1
h-i
K-i
I—«
h-»
1--
K-i
ts:>
-a
Oí
CO
CD
00
to
00
-a
Oí
Oí
bo
|4^
O
CO
O)
Oí
3'
3»
3-.
3-
3~
-w
«»1
3"
oj"^
3"
>
0
01
S-
O
■=c
O
o
O
0(_
oí*
d
o|^
cT
i
Ml
Ol)(^
Average for 6 years,
o V 8 9
_
Average for 5 years,
o o
o
3^
o o
o
verage for 6 years,
'^TöVV-
Average for 5 years,
0 4 12
^T7\7TJT'
t_j
^_i
(—1
k_i
)-<>
l__l
(—'
H-l
00
CO
OO
OD
OO
CO
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OO
00
OO
CD
CD
CD
CD
Gi
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CD
OS
CD
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-<r
CD
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to
t—'
o
CD
CD
Oi
cn
^í»■
h;:>-
OC
hi».
bi>.
4^
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CO
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CJ
CO
o
p
cn
p
CD
b:>
bi
CD
to
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Í-»
rf».-
bo
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1—1
ISO
to
to
h-'
I—»
1—1
•€f5
-'T
or
CO
Oí
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to
Í
<1
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cn
cn
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to
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to
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3s
d®
Ol
d
-e ■« >
2 ^ ® g
H
c+-
Oiw
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Cl
Oi-4
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o Ö
Ç5 09
?
2. L-,
3
5- 2.
® &
£cñ
o
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» C^o
46
The proportion of expenses to receipts must, of course,
depend entirely upon, and vary with, the fluctuating
amounts received for transportation. If $2 per ton
is received for freight on coal, the proportion of work¬
ing expenses, after making all allowance for increased
rate of wages and supplies, would be much less than it
would if but $1 per ton was received. The true
element for instituting relative comparisons is the cost
per ton per mile for moving freight, and judged by
either standard, the above table conclusively demon¬
strates that Mr. ^Vootten's management of the transjiorta-
tion dej^artment of the Company is entitled to praise,
and not to censure.
There will he found in the appendix to this statement
full copies of letters, whicli recently passed between IMr.
Thomas Wilde Powell, representing the London Com¬
mittee of the general mortgage bondholders, and the
Managers of the Company, upon the subject "of the form¬
ation of an American Committee, as well as co2)ies of
letters between Mr. Powell and myself. These letters
sufficiently explain themselves; and I have only to add
to what is contained in them that, before any of them
were written, and long before Mr. Powell left England, in
deference to the request of the London Committee, that
an American Committee should be formed, I had sug¬
gested for the latter Messrs. J. B. Lippincott, Eckley B.
Coxe, I. V. Williamson, Moses Taylor, and either Mr.
McKean or Mr. C. L. Borie, who held or re2)resented
over $12,000,000 of the junior obligations and securities
of the Company, and I proposed to associate with them
Mr. Anthony J. Drexel, of Philadelphia, as a financier,
together with Mr. John W. Garrett, President of the
47
Baltimore c% Ohio Eailroad Company, and Mr. Baue
Hinckley, of the Philadelphia, AVilmington et Balti¬
more Eailroad Company, as two of the best known and
most conservative railroad managers in America. This
committee did not satisfy Mr. Powell, and in lien of
it, the present American Committee was suhseqnently
formed.
There can he no donht whatever that although IMr.
Powell was a representative of creditors of the Comi^anv,
most of whom it is believed desired nothina: so mnch as to
obtain their money, he was more intent upon making a
changeofthemanagementof the Com2>any, than of collect¬
ing the money due to his constituents, and it is certain that,
when in this country, he did all in his ¡"»ower, directly
and indirectly, to prevent the Eeceivers from paying his
principals, even resorting by means of his counsel to
legal proceedings, to prevent the payment of interest on
the General Mortgage Bonds.
The payment of interest upon these bonds, which may
he expected, upon the adoption of the financial scheme
herewith presented, will doubtless prove more satisfac¬
tory to the bondholders than any change of manage¬
ment without the money, and it will certainly relieve the
Company from the necessity of further considering the
status of Mr. Powell.
FEAXKLIH B. G04VEX,
President.
Philadelphia, December 6, 1880.
APPENDIX.
A.—coeeespondesce BeTWEEX Boaed of Maîv'agees
and Me. Thomas M^ilde Powell.
" Copy."
Edwin M. Lewi?,—Franklin B. Gowen,—Ftephen A. Caldwell.— Receivers.
Philadelphia and Reading Raileoad Company',
General Office 227 South Fourth Street.
Philadelphia, October 20, 1880.
Thomas Wilde Powell, Esq.
Deae Sie:—I am directed by the Board of Man¬
agers of the Company to say, in response to the sug¬
gestion made hy you at yonr conference with them this
morning that there should he an American Committee
appointed to act in conjunction with the London Com¬
mittee, or "vvith you as the representative of the latter,
that the Board will agree to the appointment of a
proper Committee, and that they vdll he ivilling to act
themselves as a part of such Committee. In response
to your request that they should suggest additional
names, they have directed me to present for your con¬
sideration the following names : Mr. Moses Taylor, of
New York; Mr. B. B. Comegys, President of the
7 ^ (49)
50
Philadelphia National Bank, Philadelphia; Mr. An¬
thony J. Drexel, of Philadelphia; Mr. Isaac Hinckley,
President of the Philadelphia, Mhlmington and Balti¬
more Railroad Com])any ; Mr. Lindley Sinyth, Presi¬
dent of the Pennsylvania Company for Insurance on
Lives, &c. ; and Mr. Thomas Smith, President of the
Bank of North America.
I am further directed to say that the Board \yill unite
with any or all of these gentlemen as such Committee;
or, if yon have the slightest objection to any of them,
the Board will he very glad to act with any gentlemen
yon may name who are interested in the securities of
the Company.
Very respectfully,
(Signed) J. B. White,
Secretary 'pro tern.
"Copy."
32 South Thikd Street,
Philadelphia, October 21si, 1880.
To F. B. Gowen, Esq., President,
And the Board of Managers of the Philadelphia and Reading Railroad
Company.
Gexteemen :—I am in receipt of the letter of your
Secretary, of yesterday's date.
I am sorry to observe that the supjiort which I re¬
ceived yesterday from some members of the Board, in
favor of my theory of the proper constitution of the
proposed Committee, has been overruled in favor of the
51
views expressed by President Gowen; my theory being
that such Cominittee ought to be composed of groups of
representatives of each of the several interests con¬
cerned, with the addition, if possible, of strong names
to give prestige to the scheme ; while President Gowen's
idea, as I understood (and which seems to me to under¬
lie your letter), was that the Committee should consist
of the Board bodily with tlie addition of a few names
of gentlemen who, as I understood, would not neces¬
sarily represent any special interests.
Allow me to refer to the position of the London Com¬
mittee on this subject:
In the month of Julv last the London Committee,
after careful consideration, arrived at the conclusion
that the true policy of those wliom they represented
would be to have an adjustment of the affairs of tlie
Company without foreclosure or sale ; that in any
scheme of this kind, the Company should undertake to
pay us fixed charges only so much as in good years and
bad they would clearly be able to meet, and that the
holders of the subordinate interests should receive either
income bonds or stock (preferred or common), adjusted
upon some fair and equitable basis as between them¬
selves, and also as between them and the Company, and
that under no circumstances should the Company be in
a position whereby the accumulation of fixed charges
could again bring the Company into insolvency.
The Committee also believed that such an adjustment
could be best arrived at by the formation of a committee
in Philadelphia, properly representing these subordinate
interests.
52
On the thirtieth day of July last resolutions were
adopted by the London Committee to this effect, a copy
of which I now enclose. A copy of these resolutions
was sent to the Receivers in due course of mail.
I had hoped that I should find such a Committee in
active operation when I arrived, and I then proposed to
give my most earnest efforts, by conference with that
Committee, for the promotion of such an adjustment.
You will please understand that the London Com¬
mittee are interested in bringing about such an arrange¬
ment, because it would avoid the necessity of a fore¬
closure sale, and place the bonds of the Company upon
a fixed basis as to the future.
Some weeks after the above resolutions had been for¬
warded to the Receivers we were informed no such
Committee had been yet organized, and it now appears
that the difficulty arose from Mr. Gowen urging the
appointment of a committee composed in the main of
members of the present Board. After considering the
matter most carefully, I am constrained to say that I
think the objection well founded, and, recurring to the
words of the resolutions, that the Committee should be
" comj^osed of representative persons, having the confi¬
dence of the varions classes of persons interested in the
fixed charges," it appears to me that the Committee, as
proposed by you, would not accord with the views of the
Committee represented by me.
INIy objections do not arise from any want of respect
for, or confidence in the integrity of the gentlemen com¬
posing the Board. I wish this most distinctly under¬
stood.
53
I do not propose here to re-argue the whole cpiestion
of the fit composition of the Committee, as I presented
my views very fully to you yesterday upon that subject ;
but allow me to urge upon you most earnestly this one
consideration, viz., that the presence of the whole Board
(of which Mr. Gowen is a member), within the Com¬
mittee might embarrass the action of the other members
in many ways in discharging their diflicult duties.
In what ways this embarrassment miglit arise must
be too obvious to require explanation from me.
I wish to add that, as the London Committee have
heretofore cabled Mr. Gowen, the objection is not made
to some members of the Board going on the Committee
as representing their own interests and those of the
classes to which they belong, in some proper propor¬
tions. It is to the undue proportion contained in your
proposition and that, practically, the Board, as a Board,
are to be members of it. In fact, I may describe the
objection as being that the Board propose to resolve
themselves into a Committee with the addition of a few
good names selected by themselves.
Be good enough to understand also, that I am con¬
tending for a principle which, I think, not only impor¬
tant, but essential to success in the scheme of readjust¬
ment, but that I wish to abstain from interfering in the
personnel of the Committee, provided the constitution
of it be good in principle and the representation of in¬
terests be fair and, therefore, in due proportion.
To that extent, I think, I have the right to go.
Under the grave sense of the responsibilities of the
situation and the large interests involved, I have written
54
you at mucli lengtli, and I would most earnestly urge
upon yon to reconsider tlie subject.
I say it with reluctance, but I do think the Board
has hitherto failed to grasp the essence of the policy
that should guide in the formation of the proposed
Committee, and my earnest desire is to see that Com¬
mittee formed and launched without any such serious
mistakes as may impair its usefulness and, perhaps, pre¬
vent its success.
I would ask the favor of a reply at your early conve¬
nience.
Yours, very respectfully,
(Signed) T. W. POWELL.
"Copy."
Edwin M. Lewis,—Franklin B. Gowen,—Stephen A. Caldwell,—Receivers.
Philadelphia ayd Reading Railroad Company,
General Office, 227 South Fourth Street.
Philadelphia, October 25th, 1880.
Thomas Wilde Powell, Esq.
Deae Sir:—I am directed by the Board of Managers
to acknowledge the receipt of your letter of 21st inst.,
and to say that they regret exceedingly that any differ¬
ence of opinion should exist between them and yourself,
either as to the proper course to be pursued in the pre¬
sent condition of the Company, or as to vdiat transpired
on the occasion of your recent conference with them.
You will remember that the Board doubted the ¡iro-
priety of the apjiointment of auy Committee, except one
55
that not only fully represented the interests proposed to
be aifeeted, but was also somewhat conversant with the
business and property of the Company. You will fur¬
ther, doubtless, recall to your recollection that after a
reference by the Board to the fact that a few gentlemen
who were named, were really the owners of"a very large
proportion of the junior securities held in this country,
and that their co-operation in any scheme of reorgani¬
zation was of more imj)ortance than the approval of a
Committee, you acquiesced so far as to say that if the
Board wrote you a formal communication to that eifect,
suggesting in lieu of Committee, a conference with the
few gentlemen as owners of the securities to be affected,
you would give it proper consideration, communicate
it to your friends in England, and probably meet the
gentlemen referred to without the intervention of a Com¬
mittee. I am further directed to say, that as the Board
could not help feeling, at their interview with you, that
you earnestly desired the formation of a Committee,
they agreed, as a matter of courtesy and consideration
for the gentlemen you represent, to yield their own opin¬
ions to your wishes, and they requested you to name
some gentlemen as members of the Committee.
You Avill doubtless remember that you expressed
yourself as unable to select, or not desirous of dictating
who should he the members of the Coinmittee ; that vou
did suggest one name, viz., that of Mr. B. B. Comegys,
which was instantly accepted h}^ the Board, and that
you further requested the Board to name some fit gentle-
]nen to act as the Committee.
I am directed to say that the communication sent to
you, suggesting the willingness of the Board to act as
56
part of the Committee, and proposing tliç names of
Messrs. B. B. Comegys, Moses Taylor, Isaac Hinckley,
Lindley Smyth, A. J. Drexel, and Thomas Smith, as
other members of the Committee, was in response to
your request that names shovdd be suggested, was not
intended in "any manner to dictate as to the formation
of the Committee, that the action of the Board was
unanimous, that no members' views were overruled, as
you suggest in " favor of the views expressed by Presi¬
dent Gowen," and that yon are greatly in error, in
suggesting, to use your own language, that " the Board
propose to resolve themselves into a Committee, with the
addition of a few good names suggested by themselves."
The idea of the Board was that the gentlemen named
in its previous communication, wonld constitute a Com¬
mittee representing all interests, and which, in accord-,
anee with a suggestion of which you a2)proved, could he
divided into sej^arate Sub-Committees, representing each
jjarticular interest likely to be affected by its action. I
am also requested to say, that while the Board thinks
that Mr. Gowen should be a member of any Committee,
the latter gentleman being one of the Receivers, had no
intention of acting as jjart of the Committee, unless his
Co-Receivers were also made part of the same. The
Board desire me to assure you that they are earnestly
anxious to co-operate with the London Committee, or
with you, as its representative, or with any gentlemen
interested in the Company's securities, you may desire
to associate with you in an earnest endeavor to place
the Conijiany in good financial condition. They ask
you to remember that among their number are gentle¬
men who have very large holdings in the lower classes
57
of tlie securities of tlie Company, and that, irrespective
of their private interests, all of them are deeply im¬
pressed with the fact that their position as representa¬
tives of the shareholders, requires every sacrifice and
every exertion on their part to preserve and protect the
vast interests which have been committed to their charge.
They cannot help expressing the opinion, that in their
own judgment the management of the affairs of the
Company may safely be left with the Receivers, who
have been appointed by the Court, hut, if you or the
gentlemen whom you represent, prefer that an auxiliary
Committee should be apj)ointed, the Board is willing to
defer to their wishes in this respect. ISTotwithstanding
the belief of the Board, that all questions may safely he
left to the control and management of the Receivers,
they (the Board) have their own view and opinions as
to the pro|)er cour.se to he pursued with reference to the
financial condition of the Company, and they will he
happy at any time you may desire it to confer fully with
you about the future of the Company, and the plans
they are considering for its relief. I am also directed
to remind you that, with the exception of the previous
reports of the London Committee, as yet you haA^e
neither presented to them any plans for the future, nor
invited any expression of the opinions of those who have
for so long a period been familiar with the affairs of the
Company ; and the Board beg leave therefore with great
repect to yourself, to suggest that if you do not approve
of the course taken by them, you will suggest some other
plan of your oavu, or of the London Committee.
Very respectfully,
(Signed), J. B. WÍIITE,
8 Secretary.
58
"Copy."
Philadelphia, October 26, 1880.
To Feaxklix B. Gowex, Esq.,
President, and the Board of .Managers
of the Philadelphia and Eeading Railroad Co.
Gextlemex :—I beg to acknowledge the receipt of
your letter of yesterday.
I find it difficult to gain a consistent apprehension of
it, but I will try to make it the means of getting for¬
ward—to get it to lead to some ¡practicable result.
First let me clear away some misapprehensions on
your part ; I am sorry if any indistinctness of mine has
led to them.
I did not recommend ]\Ir. Comegys : you pressed me
to say if any names had been recommended to me ; I
said yes, I thought I could recall one—I could not re¬
call it ; you named two or more, one of which was IMr.
Comegys ; I said yes, that name has been mentioned to
me (but the name I was trying to recall, I have since
recalled, viz., Mr. Kennedy, so two names had been
mentioned to me).
I strongly recommended a representative composition
of Committee, but said that if I should come to the con¬
clusion [or should find] a Committee of that sort
hoj^elcss [or unattainable] I would not say that I irould
refuse to meet a Committee otherwise formed ; p)cCiaps I
should consent to confer with them (this statement you
will perhaps recall when I remind you that I said in a
jocular Avay, that I ¡probably would not in such case, he
sulky and refuse, etc).
59
This explanation corrects not only one, but several
parts of your letter, based upon a quite different appre¬
hension of what I said about conferring with any Com¬
mittee not representative in my sense.
Notwithstanding your letter, I cannot dismiss from
my remembrance the fact, that my theory of a repre¬
sentative Committee was ably supported by one, and
approved by another member of yonr Board, during
the discussion.
Now as to the Philadelphia Committee question, I
contend for the sort of Committee desired by the London
Committee, who sent me here, viz., that it shall be one
fairly representing all interests—by which they mean,
and I understood, one in which particular members will
expressly represent particular classes of interest, and I
expect that the classes will respectively select their rep¬
resentatives—and by fairly representing, I mean that
there shall be a due proportion of representation of the
respective classes.
My Committee contend for a Philadelphia Committee,
to which the Board may contribute a proper proportion.
i\Ir. Gowen first, and the managers since, have been
contending for one, of which they are to be the sub¬
stance.
The proi:)er lines of constitution are inconsistent with
a Committee list, in which the Board dominates.
Objection was made by the London Committee several
weeks ago, to Mr. Gowen's list, with this fault in it.
The Avritten offer of the Board on the 20th, was still more
open to the same objection, and it seemed to assume that
I had already considered the attainment of a represen-
60
tative Committee to be hopeless, and surrendered myself
to your wishes ; but I certainly had not, nor have yet
come to that despairing conclusion.
Such a Committee as I advocate ought to, and could,
freely and without embarrassment, investigate, criticise,
object, contest, and courageously discharge delicate and
difficult duties, and they ought to review the past causes
of present embarrassment without flinching.
I don't see how a Committee, including the Board, or
dominated by the Board, could do all this.
That is, in one important as|)ect the issue I raise.
And another aspect is that without thorough freedom
of examination, and unembarrassed liberty of action,
accompanied by a fair class representation, the ont-
come of a Committee's labors cannot be expected to
be satisfactory either for the moment, or for permanency;
nor satisfactory on all points of rearrangement, if
even on any, nor to all interests, if even to any of them.
Against that sort of representative Committee the
Board still seems to argue and contend ; but in your
letter I come upon the following proposal, viz. :
"They cannot help expressing the opinion that in
their own judgment the management of the affairs of the
Company may safely be left with the Eeceivers Avho
have been apj)ointed by the Court ; but, if you or the
gentlemen whom you represent prefer that an auxiliarv
Committee should be appointed, the Board is willing to
defer to their Avishes in this respect."
Such a Committee has not been suggested by the
London Committee or myself; whether desirable or not
I do not noAv pro^AOse to discuss, as that Avould be get¬
ting aAvay from the issue.
61
Pray do not imagine that I am opj)osing what you
contend for, as to the importance of the very large cred¬
itor interest within the Board being represented on the
Committee. Certainly, it ought to be represented. It
is most'important those gentlemen should be in full co¬
operation ; but surely this may be done in some way or
other without making the Board element in the Com¬
mittee so dominant as has been so often proposed, and
as often objected to, both in London and here.
In reply to your remarks, that I have offered no plan
of rearrangement, and to your offer that I may consult
with the Board, my reply is simple, viz., that I am in¬
tent on the formation of a fit Committee, and deliber¬
ately careful not to forestall their work ; and that I am
careful also, so long as I hope for the formation of such
Committee, to contemplate it as the proper' Board of
Consultation.
I hope I have now made a clear exposition of what
the London Committee desire, and of what I think
necessary for making the examination of the situation
thorough enough to produce the wisest arrangement and
to insure the best results in the future ; and now I ask
for a simple answer. Whether the Board of Managers
consent to, and will do their part towards the formation
of, *a representative Committee, as defined by me, or
whether they adhere to the views which they have ex¬
pressed to me in their letters of the 20th and of yester-
day.
I remain,
Yours^ obediently,
(Signed.) - T. W. POWELL.
62
" Copy."
Edwin m. Lewis,—Franklin B. Gowen,—Stephen a. Caldwell,—Receivers.
Philadelphia and Reading Railroad Company,
General Office 227 South Fourth Street.
Philadelphia, October 28t'A, 1880.
Thomas Wilde Powell, Esq.
Dear Sir :—I am directed by the Board of iMaiiagers
to acknowledge the receipt of your favor of the 26th
instant, and to say that nothing which the Board or
any of its members has ever done, written, or said will
warrant the inference that they oppose the formation
of a representative Committee or desired a preiionder-
ating influence upon it. The Board regret that on
account of the absence of three of its members it has
been imjiossible since the date of. the receipt of your
letter to have a full meeting, and they trust you will
permit them to await the return of at least one or two
of the absent members before making a fuller reply to
your letter.
Very respectfully,
(Signed) J. B. WHITE,
Secretary pro tern.
63
" Copy."
COYTIXEXTAL HoTEL, PHILADELPHIA.
October 1880.
J. B. White, Esq.,
Secretary of the Philadelphia and Reading Railroad Company.
Dear Sir :—beg to acknowledge receipt of your
letter of yesterday. The assurance wdiich it contains is,
I confess, different from what I have understood from
former communications. Reserving to myself the
right of justifying my past conclusions from those
communications, I will not here further allude to them,
hut, accepting your letter as indicating consent to the
formation of a representative Committee, I shall he
glad if, hy waiting a few days longer, I can promote
that object.
May I venture to express a hope that I may receive
intimation of the Board's favorable action hv iMondav
next.
I remain, yours respectfully,
(Signed) T. Mh PÓAYELL.
" Copy."
Edwin M. Lewis,—Franklin B. Gowen,—Stephen A. Caldwell,—Receivers.
Philadelphia and Reading Railroad Company,
General Office 227 South Fourth Street.
Philadelphia, November 1, 1880.
Thomas AVilde Powell, Esq.
Dear Sir :—In reply to your favor of 29th inst.,
I would state that the Board of Managers had a meet-
64
iiig of a few of its members on Saturday last, and
expected to have been able to answer your letter to-day,
as you recpiested, but that it has been found impossible
to reply fully for two or three days.
Very respectfully,
(Signed) J. B. WHITE,
Secretary pro tern.
"Copy."
Edwin M. Lewis,—Franklin B. Gowen,—Stephen a. Caldwell,—Receivers.
Philadelphia axd Reading Railroad Company,
General OfSce 227 South Fourth Street.
Philadelphia, November Zd, 1880.
Thomas Wilde Powell, Esq.
My Dear Sir:—I am directed by the Board of
Managers to inform yon that the Receivers of the Com-
ptiny and the Board have unanimously agreed upon the
following gentlemen to act as an American Committee
of creditors and stockholders of the Company, viz. :
Mr. J. B. Lippincott, Mr. I. V. Williamson, Mr. Eck-
ley B. Coxe, Mr. H. Pratt ^McKean, ]\Ir. IMoses Taylor
(or a representative to be named by him), Mr. Cliarles
II. Rogers, Mr. Isaac Hinckley, Mr. Frederick Fraley,
Mr. Daniel R. Bennett, and Mr. Thomas Cochran.
The Board also request me to call your attention to
the fact that you are quoted in one of the Pliiladelphia
¡)apers as stating that " if a satisfactory Committee is
not formed foreclosure is the only eifeet you can see."
The Board are glad to learn from one of its members
65
with whom you have been in communication that you
disclaim having made any such threat, and they trust
you will see the propriety of their asking you to furnish
them, over your own signature, with some evidence that
you have been misrepresented.
Very respectfully,
(Signed) J. B. White,
Secretary pro tern.
"Copy."
Continental Hotel, Philadelphia,
November Ath, 1880.
J. B. White, Esq., Secretary,
Philadelphia and Reading Railroad Company.
My Hear Sir;—I have the pleasure to acknowledge
receipt of your letter of yesterday, on which I will con¬
sult with Mr. Bullitt as soon as he is at liberty—this
morning he is otherwise engaged. The Committee pro¬
posed to me, as far as I can at the moment form an
opinion, seems to afford hope of progress.
On the other matter, viz., that I am quoted in a
Philadelphia paper as stating that "if a satisfactory
Committee is not formed foreclosure is the only effect I
can see," I am glad to give you my assurance that I
neither said or thought anything of the kind—?. e., in
the nature of a threat.
You may see in that report what I authorized the re¬
porter to say—it was contained in two or three lines.
9
66
The rest of the article you alliule to was a mixture of a
little I said with a great deal I did not say. The re-
])orter did ask me what would happen if the Board of
iNIauagers would not help to form a satisfactory Com¬
mittee. Considering that he was only conversing and
not further reporting, heyond what I had authoi-ized, I
answered that the pai'ties holding the lower interests in
Philadelphia were hound somehow, by Committee (»r
otherwise, to get u]) some plan for disembai'rassing the
Company ; that the London Committee expected them
to take a leading j^ort in so doing, were anxious to co¬
operate with them, offered facilities and concessions and
so forth; but if Philadeljdiia should entirely and finally
neglect to respond to the oilers and invitations of the
London Committee, it would be like forcing the bond-
holdei's to their legal remedy.
I have explained thus fully that you may see how, by
attempting to condense my explanation, the reporter
very awkwardly gave it the appearance of, as you say,
a threat. Every member of the Loudon Committee,
but none of them more earnestly than myself, has all
along been, and now is, cordially wishful to give every
reasonable facility and assistance to the stockholders and
junior interests, to rescue the property, and ¡mt the
finances on a safe basis.
Yours, respectfully,
(Signed) T. W. POWELL.
67
"Copy."
Continental Hotel, Philadelphia,
November 4, 1880.
J. B. White, Esq.,
Secret:uy Philidelpliia and Reading Railroad Company.
My Dear Sir :—Referring to your letter of yester¬
day, wliieli I acknowledged this morning, I have now
further to say that, although I should have preferred, on
abstract grounds, a Committee more definitely selected
by the difíerent classes in interest, I am prepared to con¬
fer with the Committee of the gentlemen selected and
named by the Board of Managers, and to co-operate with
them for the purposes set forth in the second report of
the London Committee.
And I take the opportunity of expressing my hope
that the outcome will be a safe and satisfactory adjust¬
ment of the Company's affairs.
I remain yours, respectfullv,
(Signed) T. AC. POAVELL.
" Cqpy."
Edwin M. Lewis,—Franklin B. Gowen,—Stephen A.Caldwell,—Receivers.
Philadelphia and Reading Railroad Conipany,
General Office. 227 »South Fourth i^treet.
Philadelphia, November 11, 1880.
Thomas ACilde Powell, Esq.,
Dear iSir:—The American Committee on the affairs
of this Company will meet at 12 M., to-day, at this
ofhce, for the purpose of organization. I have no doubt
they will be glad to see you, say, at about 12.30 P. AI.
Respectfully yours,
(Signed) J. B. AAHilTE,
Secretary pro tem.
68
B — COREESPONDENCE BETWEEN Mr. ThOMAS WILDE
Powell akd Mr. Gowen.
" Copy."
Continental Hotel.
14 October, 1880.
Dear Mr. Gowen:—I have had some conversation
to-day with Mr. Lewis and Mr. Caldwell. They told
me you were away from the city on account of sickness.
If you have returned to the city, can I see you, either
alone, or witli them, as you may prefer ?
Yours faithfully,
(Signed), T. Mk POAVELL.
Be good enough to reply to this, addressing me at
Mr. Bullitt's office.
" Copy."
E. M. Lewis,—F. B. Gowen,—S A. Caldwell,—Receivers.
Philaoelphia & Beading Railroad Company.
General Office, 227 South Fourth Street.
Philadelphia, October 16, 1880.
T. Powell, Esq.,
Care John C. Bullitt, Esq.
INI Y Dear Sir :—On my return to the office this
morning, I find your note of 14th iiist., and write to say
69
that I shall be very glad to see you at any hour this
morning that it may suit your convenience to call at the
office. As I have not been very well, I may probably
leave for the day about 2 o'clock.
Very respectfully,
(Signed), F. B. GO WEN.
" Copy."
Continental Hotel, Phila.,
ScZ November, 1880.
Franklin B. Gowen, Esq.,
Dear Sir :—I have received to-day a cable message
from Messrs. McCalmonts, from which I understand that
they absolutely refuse to support the Deferred Income
Bond scheme, and they say they have asked you to
discuss with me some practicable scheme of adjustment
to which they can give cordial support.
I have purposely and carefully abstained from form¬
ing any plan before the Philadeljihia Committee is
formed and commencing its duties,—still I shall he glad
to hear from you whether you have received a corres¬
ponding cable message from iNIessrs. McCalmonts, and
whether, if so, you wish to see me about it.
Yours faithfully,
(Signed), T. W. POMPELE.
70
" Copy."
E. M. Lewis,—F. B. Gowen,—S. A. Caldwell,—Receivers.
lOlILADELPHIA & READING EAILEOAD COMPAXA',
General GlBce, 227 South Fourth Street.
FhUadelphla, Xoveinhcr 5, 1880.
T. W. PowEEE, Esq.,
Continental Hotel, Philadelphia.
Dear Sir :—I have yours of od iiist., and regret that
my absence in New York yesterday has prevented an
earlier acknowledgment of its receipt. U})on receiving
a telegraphic request from Messrs. McCalmont Bros. &
Co. that I would consult with yon, I replied that if yon
called upon me as a representative of the London Com¬
mittee, or of Messrs. IMcCalmont Bros. & Co., I would
gladly consult with yon fully about the affairs of the
Company. The next day I was advised that Messrs.
McCalmont Bros. & Co. had cabled to yon requesting
yon to call upon me with reference to the Conqiany's
affairs, and having thus recited the substance of the
telegraphic communications, I have to say that I will he
glad to see yon at any time it may suit your convenience
to call at the office of the Company, and that I am pre¬
pared to give to yon all the information I possess about
the affairs of the Company, and to consult with yon as
to its future. IMeantime it> is but proper to say to yon
that all the conditions required by the Receivers and
the Board of Managers to he complied with by the jiro-
posed guarantors of the success of the issue of Deferred
71
Income Bonds have been accepted, and it is proposée! to
make the issue as soon as the proper papers can be sigaied,
and the guarantee money deposited.
Very respectfully,
(Signed), F. B. GOWEX,
President.
" Copy."
At Mr. Bullitt's Office, 32 S. Third St.,
Qth November, 1880.
F. B. cowey, Esq.,
Président Philadelphia and Reading Railroad Co.
Dear Sir:—Being out yesterday evening, I did not
receive your letter of yesterday till quite late. Mith
the information you give me as to the forward condition
of the Deferred Income Bond scheme, I see, and I infer
that you take the same view, that it is too late to discuss
any other financial scheme instead of it, as suggested
by IMessrs. McCalmonts' cable to me; and that was the
only matter they asked me to see you upon.
I propose to defer any discussion of the general af¬
fairs of the Company till the Committee meet for busi¬
ness, as I presume that is likely to be within tAvo or
three days—as the summoning of their first meeting
seems naturally to rest with you or your Board, I shall
be glad to hear that it Avill be summoned as early as
possible.
Yours, very respectfully,
(Signed.) T. Mb POAVELL.
72
"Copy."
Edwin m. Lewis,—Franklin b. Govven,—Stephen a, Caldwell,—Receivers.
Philadelphia axd Eeading Railroad Company.
General Office, 227 South Fourth Street.
Philadelphia, November 6, 1880.
Thomas W. Powell, Esq.,
Sir:—I have yours of yesterday. I do not agree
with you at all, but have no desire whatever to say or¬
do anything to induce you to confer with me against your
wishes, as I can assure you that it was only at the earn¬
est request of Messrs. McCalniont Bros. & Co., that I
agreed to confer M'ith you about the Company's affairs.
The American Committee will be called together at
the earliest day at ivhich it Mull be convenient for its
members to assemble.
Yours, etc.,
(Signed.) FRANKLIN B. GOTTEN,
President.
" Copy."
Continental Hotel,
8 Nov. 1880.
Franklin B. Gowen, Esq.
Dear Sir :—I received your last letter on Saturday
niglit, but I don't understand how you quite differ from
me.
jMessrs. IMcCalmonts asked me to see you to discuss
some ^ffrin instead of Mr. McEwen's deferred scheme ;
73
you reply in effect that that scheme is settled and pretty
safe to go forwards. How can we discuss other plans
instead of it?
Yours, respectfully,
(Signed) T. W. POWELL.
"Copy."
Continental Hotel, Philad'a,
Qth November, 1880.
Franklin B. Gowen, Esq.
Dear Sir :—Referring to your letter of the Oth, iu
which jmu say that the American Committee will be
called together at the earliest day at which it will he
convenient for its members to assemble, may I venture
to remind you that this Committee has been asked for
by the London Committee for several months jiast, and
that I am only expressing their wishes in pressing for
an early meeting.
I am at the service of the new Committee at any hour,
but I shall accept it as a jioliteness, Avith a vicAv to the
disposal of my time, if you Avill take the trouble to let
me know ivhat answer has been received from the mem¬
bers of the Committee, as to when it Avill be convenient
for them to meet ; and Avhether, in view of the delays
that have already ensued, you will not call a meeting, at
an early day, in order that an organization, at least,
may be effected and some progress made. I cannot
doubt that if you would inform the members of the
■ Committee, that I am awaiting their pleasure, and ex-
10
74
}>eetiiig a conference, they would, even at some incon¬
venience to themselves, give me a meeting some day this
week.
Y ours, respectfully,
(Signed) T. W. POWELL.
" Copy."
E. M. Lpwis,—F. B. Gowea,—S. A. Caldwell,—Eereivers.
Philadelphia & Reading Railroad Company,
General Office, 227 South Fourth Street.
Philadelphia, November 9, 1880.
Thomas Wilde Powell, Esq.
Sir ;—I have your favors of yesterday and to-day.
I differ with you as to the construction you place upon
IMessrs. McCalmont Bros. & Co.'s expressed desire, that
you and I should discuss the affairs of the Comjiany,
and I differ entirely Avith you upon the ¡propriety or
politeness of your expressed determination to ignore the
officers of the Company. This is only written in ansAver
to your inquiry as to hoAV Ave differed. In ansAver to
your letter of this date, • I have to say that the first
meeting of the American Committee Avill be held on
Thursday next, and that I will see that your letter of
yesterday to me is laid before them.
Very truly, &c.,
(Signed), E. B. GOWEX,
President.j
75
Philadelplda, November 11, 1880.
F. B. Gowen, Esq., Philadelphia.
Dear Sir :—There is a matter which I had sup¬
posed would, in due course, come before the considera¬
tion of the Philadelphia Committee on Philadelphia &
Reading matters, hut the action of the Committee to¬
day, in adjourning till the issue of the Deferred Boud
scheme shall be known, and the opinion which seemed
to he to some extent entertained, that if that scheme
Avere successful the Committee ivould Inn-e little or
nothing to do, make it necessary for me to address you
this communication, to avoid further delay.
When you were in London, in 1877, in one of the
conversations before the day of the jiuhlic meeting, an
impiiry Avas made of you, because of some suggestions
in the neAvspapers, as to the perfect purity of tlie
directors and ofncers of the company, in respect to the
sales of coal lands ; you replied that there Avas one case
in AA-hich a director had been interested in the lands
sold, hut there could he no possible imputation of any
impropriety of conduct in that case, because the 2>rop-
erty in question AA'as such an excellent pui'chase, and
had proved so profitable to the company. On the
strength of that, I Avas enabled in my opening sjieech
at the meeting to use very strong language in testifying
to the entire freedom of the directoi's and officers from
the possibility of any imputation (see my jirecise AA'ords
in the report of the meeting, embodied in your annual
report of January, 1878; see also, in the same report,
your OAvn denial of any, the slightest jobbery, in the
purchase of coal lands).
76
Now, I am obliged to tell you that within the last
week or ten days I have heard in Philadelphia things
quite contrary to all this, and that I feel it ahsolntely
necessary to ascertain the truth of the rumors that I
have heard respecting the " Taniaqua Lands."
The following is an outline of what I have heard,
put broadly, and I submit it to you, with the request that
you will say whether or not there is any serious mis¬
take in the im^^ressions which I have received. Is my
statement fairly correct, or is it seriously wrong ?
In the first place, I find that your explanation as to
the innocence of a Director who was a small owner in
certain good lands, is consistent Avith Avhat I hear (ex¬
cept that there Avere tAvo Directors) in rcsjAcct of a small
interest in the "dfahanog Lands;" but noAV I have col¬
lected from so innch evidence as to convey the appear¬
ance of truth, the folloAving circumstances :
Mr. Borie and Mr. Mclvean (brothers-in-laAV and
partners), being then one or both in the Direction
of the Little Schuylkill Company, joined a syndi¬
cate of seA'cn, aa'hich bought the " Tamaqua " tract
for bonds betAA'ccn 1600,000 and f650,000 ; that they
also bought another tract adjoining ("The Tuscarora")
for about $200,000 ; that the syndicate held the lands
from three to fiA'e years, and spent considcrahle money
upon them, but aa'ith results a'cry disapjAointing, proba¬
bly aa'ith considerable loss. That the disappointment
in tlie rcsnlt of this purchase aauas pretty Avidcly knoAvn
in Philadcl})hia, and that the tract Avas called the
" M'hite Elephant " (the name, I heard, having been
given to it by one of the syndicate) ; tliat the syndicate
77
still including those gentlemen sold both tracts to the
Reading Company, of which they too were Directors,
for 12,250,000, and made a large profit (with interest
at 7 per cent, compounded at 6 per cent, the cost to the
Company at this date amounted to $3,500,000). The
purchase has, I believe, been absolutely unprofitable to
the Company.
Mr. Harris has condemned the lands in his report, as
not worth the remaining encumbrances, and values
them at about $1,300,000 (but the exact figures I can
get from the Report itself).
First, Then I have to ask whether there is any material
misstatement in this summary ? Second Iy, Did you know
that state of affairs when you were in England in 1877 ?
In your answer to this second question depends very
much what amount of blame I have to attribute to you
personally.
If the statement is substantially correct, I can under¬
stand the object that poor George ]\IcIIenry had in view
when he was striving to get me to listen to what I
guessed to he mere slanders, and refused to listen to ; hut
now that I have the information upon testimony which
I can scarcely doubt, I shall, unless you can show me
that I am in mistake, feel bound to publish my recanta¬
tion of what I said on the faith of your assurance.
If I do not hear from you by Saturday, stating the
particulars in which you may say this statement is in¬
correct (if in any), I shall assume that it is correct, and
unless you disavow it, I shall assume that you knew the
facts at the time of the bondholders' meeting.
Yours respectfully,
(Signed), T. W. PO^VELL.
78
"Copy."
Philadelphia and Keadixg Eailroad Company,
General Office, 227 South Fourth Street.
Philadelphia, November 12, 1880.
Thoíias Wilde Poavell, Esq.,
Sir :—I liave your letter of yesterday, and Avliilst its
language and inferences leave me at perfect liberty, if I
choose, to decline to rejdy to it, or to have any further
communication ivith yon, I have to say :
First.—That ]\Ir. McKean and Mr. A. E. Borie had
together, I believe, one-sixth interest in the Tamaqna
lands. That neither of the gentlemen took any part
Avhatever in the sale of the lands to the Company.
That the large majority interest in the lands was held
by the gentlemen with ivhom I negotiated the pur¬
chase, nearly all of ivhom had affiliations with a rival
line of railway that it was important to keep out of
our territory. That we bought the land at the rate
of $479 per acre about the time Avhen a rival cor¬
poration bought the adjoining tract at from $1,000 to
$1,200 ])er acre. That the Tamaqna tract according
even to Mr. Harris' report (avIiícIi estimates the amount
of coal to be sent to market from any tract, at but 27i
per cent, of the total contents) contains 68,110,000 tons
which can be sent to market, or more than 50 per cent,
in excess of the amount contained in the Philadelphia
and Mahanoy tract, which latter Mr. Harris estimates
to be Avorth at present $3,189,877. That the real in¬
trinsic value of the Tamaqna lands, owing to their deep
basins, to the hu'ge quantity of coal contained in them.
79
and the fact that they are nearer to market than any oí
the Mahanoy lands, is at least five millions of dollars.
That it would have been the height of suicidal folly for
the Company, through any sentiment due to the fact
that two of its directors were interested, to have per¬
mitted these lands to drift into adverse ownership and
thus open the entire Schuylkill A^alley coal-field of
which they are the key to the incursions of a rival line.
That the low value given to the Tamaqua lands by Mr.
Harris, is due to his novel theory of charging all lands
which the Company does not work with eight })er cent,
compound interest u])on their value, up to the period at
which it may suit the Company's convenience to work
them, and thus to accumulate an enormous and over¬
whelming load of bookkeeping debt, against a tract
wliich may not 1)e worked for ten or twenty years.
That when we bought the Tamaqua lands, they were
developed by three or four collieries, and had the Com¬
pany continued to work these collieries, and in addition
thereto, expended upon the Tamaqua lands the same
amount of money that it expended uiDon the Mahanov
lands, the former would now be producing such a
tonnage as would, according to Mr. Harris's system of
computation of value, make them worth many mil¬
lions of dollars. That, as the iCompany bought many
more lands than were necessary to supply it with ton¬
nage for some years to come, and as the demand for
coal was not sufticient to take anything like the pro¬
duction, even of the collieries existing at the time of
the purchase, it became necessary for the Company to
dismantle and close up a great many collieries. That the
question of which should be closed, and which be con-
80
tinuecl, was one entirely for tlie Company to decide.
That in making this decision, the former owners were
in no manner consulted, and nothing can therefore he
more unjust and preposterous than to make one tract
containing double the quantity of coal which another
does, worth less than the latter, because since the
date of purchase, and without any consultation with
or control by the former owners, the Company, for its
own purposes, has chosen to let one remain idle, and to
expend a large amount of money in developing and
working the other.
Thus far, I have restrained myself sufficiently, to
answer as much of your letter pertaining to the busi¬
ness of the Company, as it is at all necessary to reply
to, and now I have to say to you :
First. That from past experience and knowledge, you
are entirely incompetent to form any correct judgment
upon such a question as the value of coal lands.
Second. That your real position as a confidential
agent of the Pennsylvania Railroad Company makes it
highly indelicate and improper for you to attempt to in¬
ject yourself into the affairs of the Philadelphia and
Reading Railroad Company.
Third.—That your statement that you have but
lately learned about the transactions connected with the
purchase of the Tamaqua lands, or that I, at any time
or in any place, by thought, word, or deed, ever conveyed
or attempted to convey to you or to anybody any im¬
pression concerning the same that was not strictly true,
is infamously false.
81
Fourth.—That Mr. Henry Pratt McKean is still
living and thorouglily able to defend his own character,
as a gentleman and a man of integrit}', from any pos¬
sible assanlt which yon can make upon it. My poor
friend, Mr. Adolph E. Borle, is indeed dead, but I can
assure you that any effort to tarnish his character will
but recoil upon you, if you dare to make the attem]>t,
as all his friends in America can look back upon his
life in the most perfect confidence that his re})utation as
a man of honor is absolutely safe from the mendacity
and malignity of any such person as yourself.
Fifth.—Any other communication received by me
from you will be returned unopened.
Kespectfully yours,
(Signed) FBAAKLIN B. GOM'EX.
11
REPORT
OF
JOSEPH S. HARRIS, Esq.,
UPON
THE COAL LANDS
OF THE
Philadelphia k Reading Coal t Iron Co.
1880.
PHILADELPHIA:
JACKSON BEOS., PEINTEES, Nos. 4Ü0 d- 402 LIBBAEY BTEEET.
1 88o.
REPORT.
E. M. Lewis, F. B. Gowen, S. A. Caldwell,
Receivers Philadelphia and Reading Coal and Iron Co.
Gentlemen:—In accordance with your instruction.s of
June 17, 1880, I submit herewith "a report upon the condi¬
tion, value, capacity for production, and present or future
earning power of the coal lands and colliery property of the
Philadelphia and Beading Coal and Iron Company."
This Company has acquired within the last ten years, and
mostly in the years from 1871 to 1874, an estate situated in
Schuylkill, Columbia, Northumberland, and Dauphin Counties,
and lying for the most part within the limits of that great
deposit of coal, known as the anthracite field of the State
of Pennsylvania. Of the tln-ee great regions into which the
anthracite field is divided, the Schuylkill, the Lehigh, and
and the Wyoming, this estate lies wholly in the former, of
which it constitutes the larger part.
For convenience of description, the Schuylkill region will,
in this report, be divided into four districts ; the territory
north of the Broad Mountain constituting the Shamokin and
Mahanoy districts, their common boundary being the line of
the Locust Mountain as far east as the town of Centralia,
and thence turning northward alona: the water-shed, between
O o /
the waters of the Shamokin and Mahanoy Creeks; and that
south of the Broad Mountain and west of the Little Schuyl¬
kill Biver at Tamaqua, forming the Pottsville and Tremont
districts ; divided by a northwesterly and southeasterly line.
4
between tlie waters flowing into the west branch of the
Schuylkill River and those tributary to the Swatara Creek.
The territory east of Tamaqua, belonging to the Lehigh Coal
and Navigation Company, will, as usual, be included in the
Lehigh region.
The Company's'estate contains 160,566 acres, or 251 square
miles of land, of which 69,417 acres are classed as probably
containing no workable coal, 46,627 acres as containing only
the coals underlying the Mammoth seam, 26,253 acres as
containing the Mammoth and the underlying seams, and
18,269 acres as containing, with the seams last named, the
overlying white ash and the red ash seams.
It would take much space and be of little use to give a
detailed description of all these seams or " veins," for the
same vein varies in different localities so greatly in thickness
and quality of coal, that none but a very general statement
could be made. It may sufiice to say that the lowest beds
of the series are the Lykens Valley Veins, which are found
in workable condition throughout the Tremont and in the
larger part of the Shamokin districts, and in the western
end of the Mahanoy district ; there being reason to think
that they can be worked in this locality as far east as Locust
Summit. In the Mahanoy and Shamokin districts, there are
two of these veins whose average thickness of workable coal
may be stated at seven feet, while in the Tremont distinct
there is usually thirteen feet of good coal in two veins; though
over a limited area, near Lincoln Colliery, they contain twenty
feet of workable coal in four veins. The other veins below
the Mammoth are usually rather rough, hard coals ; though
at some points in the Mahanoy district, the Buck Mountain
Vein, which is the principal one in this series, approaches in
quality the Mammoth Vein. As a class, however, these coals
have slightly less carbon and more ash than the Mammoth
Vein, though analysis shows them to have as high an average
5
heating power. They are all classed as white ash coals.
Taken as a series, they vary in thickness from a maximum
of twenty-six feet, near Mahanoy City, to an average of
about seven feet throughout the Pottsville district. They are
however to a great extent undeveloped, and therefore not
accurately known, on account of their great depth from the
surface.
The Mammoth Vein is the greatest bed of the whole series,
and has thus far produced throughout the anthracite field
much more coal than all the other veins combined. Its
quality—except where, by local geological disturbances, it
has been thrown out of its normal condition—is uniformly
good, and its chief variation is in its hardness, which reaches
its maximum at the eastern end of the Mahanoy district, and
its minimum at the western end of the Shamokin district.
In thickness this bed varies from forty-five feet in the centre
of the Mahanoy district, to about four.een feet, which is its
size in the western ends of the Shamokin and the Pottsville
districts. It burns to a white ash, except in the western end
of the Tremont district, where the ash inclines to redness.
The veins overlying the Mammoth, with the exception of
the two lowest ones, are red ash veins, of thicknesses varying
from three to nine feet. They are most numerous and valu¬
able in the Pottsville district, where they have an aggregate
thickness of twenty-seven feet of workable coal, but they are
also found to a considerable extent in the eastern part of the
Mahanoy district.
According to their physical characteristics, the coals of
this estate are divided into—
\
1. Hard white ash coal.—This coal is produced in the
Mahanoy district, east of the town of Ashland. It comes
principally from the Mammoth Vein, but the Buck Moun¬
tain, Skidmore, and Seven Feet Veins also furnish part of it.
6
It is in great request for blast furnace and locomotive pur¬
poses, having, to an unusual degree, the qualities of resisting
change of form under high heat and pressure, and, owing to
its high percentage of carbon, it is valuable for producing
steam ; but for domestic use on a small scale, and for open
grate fires, it does not ignite readily enough to be a favorite.
It furnishes about fifty-one per cent, of the total of the com¬
pany's product, and is now, and is likely to remain, one of
their most salable and most valuable coals.
2. Free-hurning white ash coal.—This variety is produced
in the Mahanoy district west of Ashland, in the Pottsville
district, and in the Shamokin district as far west as the
meridian of Locust Gap. The distinction between it and
the hard-burning white ash coal is, that under such a fire
as is ordinarily used for smelting metals or producing steam,
the impurities melt or clinker, which is not the case with
the harder coal. This practical test is not, however, a very
exact one. Some of the anthracites can be clinkered with a
strong draft and with a thick bed of fire, ând would, by a
person who used them under such circumstances, be classed
as free-burning, while another, whose method of burning
coal was more economical, would call them hard. Analysis
shows that the free-burning white ash coals are quite as
rich in fixed carbon, and that they have even higher heat¬
ing power, as tested by the amount of water evaporated,
than the harder variety, but their limited range of useful¬
ness, which is due to their clinkering, prevents their price
rising as high as the hard white ash coals. They are mined
from the Mammoth and underlying veins, and constitute
about twenty-eight per cent, of the Company's product.
For export from Port Richmond and Elizabethport, free-
burning coals sell a little lower than hard coals, the broken
and egg sizes bringing twenty-five cents less per ton, and
7
the other sizes being sold at the same rates as the bard coals.
Along the line of the Reading Eailroad, the free-burning
and hard coals are equal in price. The former is used exten¬
sively for blast furnace purposes, in localities reached by the
Reading Railroad lines, but no lump coal of this grade is
shipped from the seaports, Port Richmond and Elizabeth-
port, the markets reached by the sea-going coal preferring
the hard coals, which approach in character the Mammoth
Vein coal of the Lehigh region.,
3. North Franklin white ash coal.—This variety of Mam¬
moth Vein coal is mined only on the Trevorton estate, at
the western end of the Shamokin district. The coal is pure,
but its heating properties are rather low, and it is of so fri¬
able a nature that it does not stand transportation well.
The demand for it is therefore but limited, and it furnishes
only two per cent, of the Company's total product.
4. Schuylkill red ash cocd.—For this coal there was some
years ago a great demand in New York and Eastern markets.
It is easily ignited, easy to keep burning, and where used in
open grates makes less floating dust than white ash coal,,
because its ash is composed of larger particles, and on ac¬
count of the oxide of iron, which constitutes its coloring
matter, has greater specific gravity than the ash of the white
ash coal. It was therefore greatly in use for all domestic
purposes where small quantities of coal were burned, and
the reason of its being now in decreased request is partly
that its place has been taken by the still freer burning coals
of Lorberry and Brookside, and the Franklin coals, which
can be more cheaply mined, and partly because, as it burns
rapidly, it is not considered as economical for domestic use as
the slower burning coals. It will doubtless come into use
again to a large extent, as the coals which have supplantéd it
are limited in quantity, but at present it furnishes but two
8
per cent, of the Company's production, selling for about the
same price as hard white ash coal. It is now produced only
at the Pottsville Shafts Colliery and the two Phœnix Park
Collieries in the Pottsville district and comes entirely from the
higher beds of coal; the Orchard, which is the third vein
above the Mammoth, being the lowest true red ash vein,
though the next lower one—the Primrose—a pink ash vein—
is sometimes so classed.
5. Shamokin coal.—All white ash coal from the Company's
lands in the Shamokin district, between the meridian of Locust
Gap and the east line of the Trevorton lands, is known as
Shamokin coal. It comes mostly from the Mammoth Vein,
follows in hardness and in ease of ignition next after the
free-burning white ash coals, and is used still more specially
for domestic purposes, its lower percentage of carbon making
it ill adapted for purposes requiring intense heat. This coal
finds mostly an eastern and southern market, not being largely
used along the line of the Philadelphia and Reading Railroad.
Egg and stove sizes bring a somewhat smaller price than the
corresponding hard white ash coals, but the other sizes are
on a par with them. Four per cent, of the Conxpany's pro¬
duction belongs to this grade.
6. Lorherry coal.—This coal is mined by the Company
only in the Tremont district at Colket and East Franklin
Collieries. It burns with a little flame, and is much in re¬
quest for domestic uses in the eastern markets. It is pro¬
duced from the Mammoth Vein and the next overlying
veins, and ranges in price a little above the hard while ash
coal. It forms three per cent, of the Company's production.
7. Lykens Valley coal [Brookside).—This coal comes from
the Lykens Valley Veins, and is mined at present at but one
of the Company's collieries, the West Brookside. It burns
9
with considerable flame, and is greatly liked in» the eastern
market for open grates, other domestic uses, and for steam
and heating purposes, wherever quick heat is required. It
ranges in price about half-a-dollar per ton above hard white
ash coal, and is by far the most profitable of the Company's
coals, being the most cheaply mined and the highest priced
of all of them. It furnishes ten per cent, of the coal sent to
market by the Compány.
This general description, from which are omitted some of
the minor varieties of coal not at present mined, such as the
Shamokin red ash and the Lykens Valley red ash (North
Franklin), shows that the Company can furnish from its own
lands every grade of anthracite from the hardest to the fi'eeest
burning, thus meeting competition in every quality of coal.
As the coal estate is unrivalled in its size, in its coal con¬
tent, and in the variety of its products, so is it in the com¬
pleteness of the arrangements for marketing its coal.
Of the 1,775 miles of railroad track owned and controlled
by the Philadelphia and Beading P^ailroad Company, 441
miles, or about one-fourth, lies within the Schuylkill region,
being nearly two miles of track for each of the 238 square
miles ol coal territory in this district. About si.xty per
cent, of the remaining mileage of this great system of roads,
and the whole of the 153 miles of the canal system controlled
by the Philadelphia and Beading Bailroad Company, are
available to distribute the product of the Company's collieries
to nearly every part of the great manufacturing district
lying between the Lehigh and Delaware Biver on the north
and east, and the southern boundary of Pennsylvania and
the Susquehanna Biver on the south and west,—one of the
most populous districts in America, and one of the greatest
manufacturing regions in the world. This magnificent home
market consumes about three-eighths of the coal mined by the
10
Company, and tlie whole of the seaboard market is accessible
by the Eailroad Company's steam colliers, which take the
coal from the ports of Philadelphia and New York, where
that Company's railroad lines deliver it; while many of
the less exposed waters are also traversed by the smaller
boats which are loaded at the head of navigation of the
canals, and deliver their products at the wharves of the
manufacturing cities without further handling.
This estate is much the largest body of anthracite lands in
the State under one ownership, and as all the thoroughly
developed beds of anthracite in the United States are within
the limits of Pennsylvania, it will at onçe be seen that the
Company's position as a producer of anthracite is unique and
unapproachable. The area underlaid by this coal in Penn¬
sylvania is 483 square miles, of which area the Company
owns or controls 91,149 acres, or 142 square miles, being
nearly 30 per cent, of the whole. Its share of the coal that
may be mined is not so easily estimated, as the thickness of
the different beds of coal varies so greatly throughout the
anthracite field that it is difficult to get reliable averages.
There are in general more beds and a greater aggregate
thickness of coal in the Schuylkill region, in which the Com¬
pany's estate is situated, than in the Lehigh and the Wyoming
regions; but on the other hand the coal in the two last named
is at more accessible depths, and geological changes have
there disturbed the position and injured the quality of the
coal less than in the Schuylkill region.
From the best existing data, I estimate that the anthracite
in Pennsylvania is distributed as follows:
11
A.—Statement shoiving the estimated production of Penn¬
sylvania anthracite.
Anthracite production.
Company's estate
Comp'ys interest.
IlegioD.
District.
Area.
Thick.
Area.
Area.
a.
b.
a X 5.
a.
a X 6.
a.
a X 5.
eq. m.
ft.
sq. m.
sq. m.
f
Tremont I...
16.4
12
190.8
16 4
196.8
16.4
196.8
1
Tremont II..
45.4
34
1543.6
36.4
1237.6
350
1190.0
Schuylkill -i
Pottsville
84.3
42
3540.6
48.2
2024.4
40.1
1936.2
¡Mahanoy ....
40.0
41
1040.0
18.7
766.7
18.4
754.4
I
Shamokin....
52.0
22
1144.0
22.7
499.4
19.3
424.6
Lehigh
Lehigli I
Lehigh II...
12.9
38.0
42
15
541.8
570.0
Wyoming
Wyoming ...
Lackawanna
91.3
99.7
30
20
2829.0
2991.0
j 4S3.0
113999.8
142.4
4724.9
135.2
4502.0
From wliich statement it appears that taking as the unit
of cubic measurement one square mile of coal of the thickness
of one foot, the anthracite field contains 13999/g of such
units, of which the estate controlled by the Company con¬
tains 4724j®5 ; but as the Company is not the sole owner of
the estate, its interest is 4502.0 of these units. The produc¬
tion of coal will then be as follows : from the Schuylkill
region per cent, from the Lehigh region per cent.,
and from the Wyoming region per cent. The estate
of the Company will produce BSy'jj per cent, and the Com¬
pany's interest in that estate will be per cent, of all the
anthracite in Pennsylvania.
The " thickness of coal " in Statement. A, which is the ag¬
gregate of workable coal in the different beds, is less than has
been generally assumed, but while in certain parts of each
district it will amount to more than the figures given, they
12
cire high enough when the coal is considered as evenly spread
over the whole area, and after the coal already mined is
subtracted.
The subject of the actual content of coal in the Company's
lands is one which has been very carefully studied by differ¬
ent persons in the past few years, and a good estimate can
now be made of the amount that may be sent to market from
the estate. A very elaborate calculation of fhe coal content
was completed in 1876 by Henry Pleasants, the late Chief
Engineer of the Company. From data which, in the unde¬
veloped portions of the property, were obtained by thorough
explorations by trial shafting, and in that part of the estate
where the mines had been ' worked, from the knowledge
gained by mining, a number of geological cross-sections were
drawn. Using these cross-sections and the known areas
underlaid by the different seams of coal, detailed calculations
of content were made with great care, and the highest accu¬
racy attainable; and, as the result of the investigation, Mr.
Pleasants reported that the Company's estate contained
4,476,000,000 tons of coal. In July, 1879, I prepared a
report on the probable duration of the Pennsylvania anthra¬
cite supply, in which, from independent data, I estimated that
1,189,000,000 tons of coal could be shipped from the Head¬
ing Company's estate.
Within the last few months the Company's engineers have
again investigated the subject, in a new manner, and from
data not heretofore used. From the actual shipments of a
number of the older collieries they have found how much
coal several of the leading veins on the estate can be
expected to yield per acre. From this the yield of each of
the veins has been deduced, and, knowing the limits under¬
laid by each vein, the total content of the estate has been
readily computed. This estimate gives 1,208,254,000 tons as
the amount that the estate should yield. This quantity
13
agrees closely with that reported by me, as quoted above;
but as mine was but a good general estimate, and this
was derived from a much more careful computation, I have
adopted it as being the best attainable result. Comparing it
with Mr. Pleasants estimate of the content of the lands, it
gives the result that about 27 per cent, of the coal existing
in the lands can be sent to market. There is a reasonable
agreement between these estimates of content and possible
shipment, as may be inferred from the experience of the
Lehigh Coal and Navigation Company, which Company has
for sixty years mined in the territory east of the limits of
and adjoining the Schuylkill district. From an area which
is computed to have originally contained 52,266,000 tons of
coal, that Company has shipped 18,100,000 tons, or Sly'y
per cent. ; and it is estimated that when the coal within that
area shall be entirely exhausted, the shipment will have been
20,240,000 tons, or per cent, of the original content.
This unusually favorable result has been made possible by
the coal being mined at comparatively small depths, and at
considerable inclinations,—the latter cause much increasing
the yield per acre,—and by its having been very thoroughly
worked. Taking into consideration the differing circum¬
stances, it is a fair inference that 27 per cent, represents
well the proportion between shipment and content on the
whole of the Reading Company's estate.
Taking the total content of the Company's estate, as
above stated, at 1,208,254,000 tons, we have as the value of
one of the units of statement A, or in other words, as the
product of a body of coal one square mile in extent and one
foot in thickness, 1,208,254,000 divided by 4,724.9 = 255,721
tons per square mile, or 400 tons per acre, one foot thick.
We have also ;
14
B.—Statement showing the estimated proditct of each, region.
Products.
Percentage.
Total anthracite field
3,580,036,000
100.00
Schuylkill region
2,062,386,000
57.61
Lehigh region
284,310,000
7.94
Wyoming region
1,233,340,000
34.45
Company's estate
1,208,254,000
33.75
Company's interest
1,151,254,000
32.15
The Company's estate has a certain easily estimated value
on account of the timber growing upon it, all of which will
very soon be used for mining purposes, and for the erection
and repair of buildings. Another element of value that
involves no difficulty, is that derivable from town lots and
farm lands. The remaining, and much the greatest value
belongs to the coal; and this being much more difficult of
estimation, the method employed will require an e.Ktended
explanation.
We may as well dismiss from our minds at once the idea
that such an estate has or can have a market value. No
purchaser could be found for so vast a property as a whole ;
and if it were broken up into tracts, a long period would be
needed to dispose of it, and the price of the separate tracts
would fluctuate so greatly in value with the dullness or
briskness of the coal trade, that there cannot be said to be
any market value to these coal lands.
Their true value is undoubtedly a factor of the tonnage of
coal they can produce, but the relation between the two is
not an easy one to find. It depends on the cost of mining,
and the value of coal when mined; and though we can over
a large estate assume averages of costs and value that will
15
be satisfactory, there is another still more important element
to be considered,—the time when the value can be realized.
These two subjects, then, 1. The rate at which the estate can
be made to yield, and 2. The profit that can be realized on
mining, will need to be carefully investigated.
I.—The rate at which the estate can be made to yield.
This is a question involving to a great extent the growth
of the industries of the region where anthracite is to be used
in manufactures, of the population in the still wider region
where it is to come into service as a domestic fuel, and of the
railway and other systems of transportation by which its
carriage is to be cheapened, and the area extended through
which it can be economically used. We have no safe guide
in estimating the future except the experience of the past
carefully employed, and I have therefore endeavored to deduce
from the published statements of the history of the anthracite
trade, the law of growth of the demand for this fuel. I say
the demand, rather than the production, because the many
speculative elements which largely affect the latter, act with
less force on the former, which therefore fluctuates less wildly,
and more easily discloses upon investigation the law of its
increase. In deducing the demand from the production, I
have reasoned as follows :
Let us assume that when the supply of coal and the demand
for it are at any time fairly adjusted to each other, there will
be at the commencement of the active season 1,000,000 tons
of coal that has been sent from the mines, but remains unde¬
livered to the consumers, this being under the assumption the
normal working stock on hand. Under the good demand that
will spring up with general business prosperity,and buta moder¬
ate supply of coal unsold, the producers, knowing that both min¬
ing and transportation are cheapened by increasing tonnage,
will stimulate the production of working collieries, and make
16
new openings to keep up the supply ; the production will begin
to draw ahead of the demand, stocks will accumulate, and the
season will close with, say 2,000,000 tons ahead. The mar¬
ket will then begin to flag, the reasons for stimulating pro¬
duction having ceased ; but as each Company wishes that its
neighbors and not itself should restrict, each desiring by keep¬
ing at work to realize on the heavy expenditure for improve¬
ments and equipments already made to meet the expected
increased demand for coal, the movement goes on by its own
momentum, till a third year finds 3,000,000 tons of unsold
coal on the market. The price now breaks badly, the pri¬
vate shippers can no longer work at a profit, and begin to
close their collieries or sell them, the Companies commence
to curtail, and restriction is the rule until the stock of coal
falls by the fifth year to the natural working surplus of
1,000,000 tons.
This statement is of course ideal and never exactly realized
in praetice, but it is near enough the truth to suggest that iu
making a table of anthracite demand, we should find it more
regular, and would be nearer the truth, if we were to take for
each year's demand the mean of that year's shipment com¬
bined with the two preceding and the two succeeding years,
thus eliminating the irregularities of alternate excessive and
deficient production, caused in the manner just stated.
Statement 0 submitted with this report (see appendix)
shows the shipments for each year from 1832 to 1882, those
for 1880, 1881, and 1882 being estimated to bring the
demand down to 1880; the demand (obtained as above ex¬
plained); the ratio of change from year to year for each of
the three anthracite regions, and the total for the whole
anthracite field; and the accompanying diagram D (see
appendix) represents the percentages of change by profile
lines, in which for greater distinctness of vision, the verti¬
cal scale is enlarged to twice its natural size. The first
17
profile shows for the whole anthracite field the ratios of change
in the shipments, and it will he seen from the irregularities
of this line how difficult it would be to deduce the ratio
of change if the problem were treated in this way. The
second profile, in which the fluctuations are much less violent,
shows for the whole field the ratio of the yearly changes in
the demand, the demands being taken from statement C; and
the next three profiles show the ratios of change in the de¬
mand for the three regions. Then follows a profile in which
the variation in the demand for the whole field is estimated
to the year 1930. No attempt is made on this diagram to
carry the demands for the different regions into the future,
because their fluctuations are local, and less subject to ascer¬
tainable laws than the total demand. One region may have
its trade temporarily interrupted, but its customers will be
supplied from the other regions, and the total will show no
disturbance. The black lines in each of the first five profiles
represent the results derived from statement C, and the red
lines are average lines which represent the rate of increase.
It is worthy of note, how closely in the profile of the demand
for the total anthracite field the depressions and elevations in
the black line coincide with similar fluctuations in the general
business of the country. The first depression extending from
1839 to 1844, shows the result of the crash of 1837; from
1844 to 1848 the elevation coincides with years of prosperity ;
from 1852 to 1857 again shows a prosperous era ; from 1859
to 1865 the depression shows the stagnation following the
revulsion of 1857, and lasting through the war; from 1870
to 1875, a period of great business activity is represented
by an elevation, but the depression corresponding to the period
of stagnation in business from which we are just emerging is
not shown to be very great, possibly because we cannot tell
to what point the line of rate of increase in demand will rise
for 1881 and 1882. Disregarding the region profiles we find
2
18
that from 1832 to 1852 the demand compounded at the ratö
of Mj-g per cent, per annum ; from 1852 to 1872, at the rate
of 6y% per cent,, and from 1872 to 1880, at the rate of
per cent. For a few years in the future we may expect the
increase to follow the same general law, the percentage of
increase slowly diminishing; but before many years the in¬
creased cost due to deeper mining will begin to put anthra¬
cite at a disadvantage as compared with bituminous, and
some of the regions will begin to be exhausted. These causes
will interfere with the natural increase of the demand, and
the output will pass its maximum near the close of the cen¬
tury, and thence commence to decline. These changes I es¬
timate as follows :
E.—Estimate of the anthracite shipments from 1880 to 1930.
[Note.—Quantities are all stated in thousands of tons.]
Year.
Kalio of increase.
Katio compounded
for 10 years.
Shipments whole
field.
Shipment from regions.
Shipments from
Company's estate.
bX)
S
o
>,
Lehigh.
Schuylkill.
Total.
Percentage of
Schuylkill
regiun.
X880
-fO.03
1.341
23,630
11,484
4,157
7,989
4,300
53.8
1890
-i-0.010
1.105
31,759
16,500
3,895
11,364
5,620
49.5
1900
+0.005
1.052
35,094
17,000
3,000
15.094
9.338
61.9
1910
.00
.00
36,919
16,000
2,500
18,419
12,607
68.4
1920
—.005
1.052
36,919
15,000
2,000
19,919
13,158
66.0
3930
—.015
1.161
35,091
13,500
1,500
20,094
13,366
66.5
The tonnages are spoken of as shipments here because the
demand, which would keep on increasing, is, after 1910, inter¬
fered with by the inability of the anthracite field to main¬
tain production, which thereafter is limited by what can be
shipped. In this statement the maximum annual shipment
from the whole field is placed at about thirty-seven millions
of tons, and the culminating point at about the year 1915.
19
The Lehigh Eegion is estimated to pass its maximum in
the next decade, and thence to decline steadily in shipments.
The Wyoming Kegion is estimated to reach its maximum in
about twenty years, and the Schuylkill Eegion in about fifty
years. The Company's estate should attain its greatest de¬
velopment about the same time, its largest annual output
being placed at about 13,360,000 tons, at which figure it will
stand for about thirty years, and from which it will fall off at
about the same rate it rose, till 1990, after which time no
estimate is made of the product of the estate. The estimate
of the Company's tonnage is based on a careful examination of
its property, locating the proposed collieries where they will
be best calculated to develop it economically, and arranging
the dates of opening so that the cost of improvements shall
not bear too heavily at any time, nor the tonnage increase
more rapidly than a market can be found for it. This esti¬
mate was made independently by the Company's engineers,
and as it shows that their estate will ship a generally in¬
creasing percentage of the Schuylkill Eegion, the two esti¬
mates may be considered to fit well together. This develop¬
ment of the estate will be considered as being as rapid as
can probably be made, when we reflect that in the years from
1871 to 1876, when the Company's credit was good, and
when every nerve was strained to place the estate in a posi¬
tion to make large shipments, there was expended in opening
new collieries and repairing old ones the sum of $3,341,732.98,
while the estimate of the expenditures on new collieries in
the future, which expenditure must be made out of earnings,
without increasing the capital accounts, is as follows :
20
F.—Statement showing new collieries required to meet esti¬
mated increase of shipments from Company's estate.
Period.
Collieñes to
be opened.
Cofll.
1880 to 1890 :
23
?2,375,000
1890 to 1900
33
3,280,000
1900 to 1910....
22
2,835,000
1910 to 1920
6
500,000
1920 to 1930
12
1,610,000
Total 1880 to 1930
95
$10,600,000
These sums include nothing for work of any kind to he
done at the fifty-four existing collieries.
The object of carrying these estimates of tonnage and cost
of improvements so far into the future, which involves so
many unknown quantities, is solely to get the best possible
basis for a valuation of the Company's estate ; and it was in
order to examine the subject from as many sides as possible,
and leave no ascertainable cause of error, that the examina¬
tion had to he extended over the whole anthracite field.
II.— The profit that can he realized on mining.
In making an estimate of profit on mining, I have taken
as a basis what may be considered a fair royalty charge,
considering the Company in the light of a land owner, and
assuming that the average price paid to land owners will
represent roughly the amount that can be realized from coal
lands. It will he said that this would exclude all profit to
private individuals who are working collieries under leases,
and paying royalties on their coal. This is true, and it is
21
the history of the coal trade in the Schuylkill region, that
only where private operators have unusually good and
cheaply worked collieries, or unusually good coal that com¬
mands a high price, have they been able to maintain them¬
selves. If this has been the history in the past, when
collieries were cheaply opened, when neither coal nor
water had to be brought up from great depths, when the
ventilation was simple and the expense of timbering the
mines light, the only safe conclusion is that which the state
of the trade shows has practically been reached in the Schuyl¬
kill region, where in the whole of the Mahanoy and Pottsville
districts, there is hardly to be found one successful private
operator working a mine at any considerable depth below the
surface. Those who have had deep mines have been obliged
to part with their collieries, and the few who now make a
living are working comparatively near the surface.
The royalties paid vary considerably throughout the anthra¬
cite field, being generally highest in the Lehigh region, where
the coal is cheaply mined, and commands a very high price
and lowest in the Lackawanna and Shamokin districts, which
are distant from market, and where the coal is not choice.
The Eeading Company pays to the City of Philadelphia for
the coal taken from the city lands, an average of 29cents
per ton. It is true that this coal is exceptional in its quality,
and in the cheapness with which it can be mined, and it is
not certain that in the future such high royalties can be paid
for the inferior coals at greater depths ; but under the rea¬
sonable supposition that there will be in the future a fair
degree of prosperity in the coal trade, it seems right to con¬
sider that this will not prove an excessive rent, and to
assume as the royalty or profit on which to base the esti¬
mates of value the sum of 30 cents per ton. This is fully up
to the average price paid throughout the anthracite field, for
though many of the royalties are higher for the larger sizes.
22
they are very low on chestnut and pea coals, and usually
nothing on the smaller coals.
As this allowance for profit in mining may seem to be
small, it will be well, in order to justify it, to cite the history
of some of the mining enterprises in the State.
Of the cornnanies who own coal lands and mine, trans-
1. '
port, and sell the coal, there are very few whose reports are
published, but the reports of the coal companies controlled
by the Pennsylvania Eailroad Company for the last few
years are accessible. The Pennsylvania Railroad Company
is a large producer of coal, the shipments from its anthracite
collieries having averaged 1,250,000 tons for some years
past. In order to reach the figures which represent the ac¬
tual cost of mining, it will be necessary to subtract from the
expenditures as published, all royalties paid to other compa¬
nies, interest, dividends, &c. After doing this so far as the
reports give the necessary information, I find that in the last six
years, from 1874 to 1879, the shipments have been 7,592,161
tons, and the profits $2,301,674, or 30(% cents per ton.
Now the Pennsylvania Railroad Company's experience should
be unusually favorable. Their collieries are at the western
end of the Wyoming, Shamokin, and Tremont districts, and
therefore nearest of all the anthracites to the western mar¬
ket; they should mine cheaply; they have practically the
control of the markets of western Pennsylvania and of part
of Ohio, which can only be reached over their railroad
lines; they have usually moro demand than they can meet
from their own collieries, which are therefore enabled to
run more steadily and thus more economically than most
others, and they have in their Franklin coal, which they
mine largely at Williamstown and Wiconisco, a fuel which
commands about 75 cents above the price of the ordinary
anthracites. If they could only realize 30 cents per ton, it
would be unwise to assume that the Reading Company
23
can make in the future a greater profit. Of the six years
emhi'aced by the reports before me, the first two were years
ill which they did a very profitable business. That Com¬
pany has not usually joined in movements to restrict ton¬
nage, and therefore had to some extent, the advantage
without the cost of the restrictions of 1875 and 1876.
The Reading Company's own experience has been even less
of an argument in favor of high profit from mining coal.
From their reports for the last four years, which embrace all
the period for which they have published reports of cost of
mining, I find ;
That in 1876 (11 mos,), thoy shipped 4,330,101 tons at a loss of $653,359
" 1877 " 4,890,362 " " 468,940
" 1878 « 3,552 053 " " 512,806
And in 1879 " 5,267,752 " " 325,532
Total for 4 years, 18,040,268 $1,960,638
This includes coal shipped by their tenants from the Com¬
pany's estate, and the royalty received therefor, but does not
include the royalty paid for coal mined by the Company on
others' lands ; the problem being to find what profit or loss
there would have been had they mined their own coal ex¬
clusively. The iron ore traffic is also included, as the means
of separating the office and selling expenses of this branch
of the business is not given. The iron ore transactions were
comparatively small, but as they always have showed a profit,
they do not certainly make the case of the coal department
any worse.
Nor can it he said that the Coal and Iron Company lost
money because the Railroad Company charged exorbitant
rates of freight. In these same four years the Railroad-
Company earned $3,414,628 less than enough to pay interest
on its bonds, in addition to a deficiency of $3,988,026, by
which the Coal Company earned less than its interest, and
the further actual loss before reported of $1,960,638, so that
on the whole four years business the allied Companies lost
=15.1 cents per (on.
= 9.6 " «
—14.4 " "
6.2 « «
=10.9 « «
24
51.9 cents per ton, not counting royalties paid, or 56.9 cents
if royalties are included.
As tlierefore the Eailroad Company can hardly be expected
to lower its charges, it is evident that the Coal and Iron
Company will have to increase its net profit 41 cents per ton
before it can realize the royalty I have assumed. As the cost
of mining cannot be lowered, but will increase above the
average of the past four years, this increased profit on min¬
ing must come from higher prices realized for coal ; and as
these bring with them increases in freights and in wages, it
will require an advance of at least 75 cents per ton in the
average price realized for coal to make the profit required.
I have gone over this question minutely, because on the profit
that can be realized from mining depends the value of the
coal in the ground, which measures the worth of the Com¬
pany's estate. I am firmly of opinion that with coal selling
at prices which experience has shown us to be probable, with
freights at rates at which the Eailroad Company can pay its
way, and with the inevitable increase of cost of mining from
the many expenses consequent on inci'easing depth, it is un¬
wise to expect any profit greater than 30 cents per ton for a
term of years.
The coal trade has apparently entered on an era of large
production and small profits. In the earlier days when the
resources and the credit of individual producers, who then did
most of the mining were small, and when there was not so
much cost of pumping water and mine repairs as to make the
stoppage of the mines a very serious affair, unremunera-
tive prices for coal had more tendency to work their own
cure by rapidly restricting production ; but with all these
conditions of resources and cost of standing idle changed, the
natural tendency must be to stimulate production, and so
prevent any great rise in prices. Those companies which
can produce coal cheaply, which are not heavily in debt, and
«
25
the coal production of which is only one of many elements in
their business, will not permanently consent to the restrictions
that those less favorably situated would prefer, and large
product and low prices will probably be the rule of the trade
hereafter.
Lest, however, some one should press these arguments still
further, and say that judging from the past there is no value
in anthracite lands, and that no revenue can he expected from
them, I would add that it is not reasonable to suppose that
an article of such prime necessity as anthracite can be pro¬
duced for a long period of years below cost; that we have
just passed through a time of great depression in business,
and in prices of commodities of all kinds ; that the concen¬
tration in one ownership of the coal lands, the mining, carry¬
ing, and selling of the coal, which were formerly divided
into four distinct interests, being comparatively new, has
given rise to a fierce and unreasoning competition between
the great coal owners for the control of the markets of the
country ; that there are reasons to hope that the losses in-
cuiyred in this contest have determined all the interested par¬
ties to adopt for the future a harmonious course of action,
which will bring the price of coal up to a point at which by
economy and judicious management the owners of the prop¬
erty shall have some reasonable returns for their investments,
and that so many interests can be harmonized in this course
of action as to secure the practical co-operation of all. If
these results cannot be reached, there will until reason re¬
sumes her sway, be, as there has been for a few years, very
little value in coal lands ; but if, as seems probable, the present
harmony of action can be maintained, there is no reason
why a moderate profit on mining should not be realized.
Considering the question of royalty or average profit of min¬
ing settled, let us next inquire—
26
What is the money value oj the Company's coal lands f
To consider the question thoroughly lias involved the study
of the proper method of developing separately each of the
eighty-two tracts of land which was the subject of a separate
purchase: where collieries should be placed; when they
should be opened,—which involved the question of how soon
the special coal produced on that tract could probably be
marketed; and whether the deduced value in each case was
equal to the incumbrance remaining on the property. After
making these separate examinations, the same questions have
been considered for the estate as a whole.
I submit with this report statement G, being a tabulated
estimate of the value of the coal estate of the Philadelphia
and Eeading Coal and Iron Company. The tracts named
therein are arranged as nearly as convenient in geographical
order; beginning at the western end of the Shamokin dis¬
trict, passing eastward to the eastern end of the Mahanoy
district, thence southward to the eastern extremity of the
Pottsville district, and thence westward to the western end
of the Tremont district. These tracts are also divided into :
I. Tracts in which the Company has an undivided owner¬
ship of the lands ; and
II. Tracts which the Company controls through ownership
of the stock.
In the first section of the statement, the coal product of
the estate is estimated. The actual experience of mining,
through a term of years, gives reliable data of the yield per
acre of lands that contain certain veins of coal. These lands
are divided into four general classes, to each of which is
assigned its proper acreage and yield ; and from these data
the wliole possible product is estimated, giving the grand
total before stated of 1,208,254,000 tons. Next, the time
27
required for developing the lands so as to bring each tract
up to a specified production is shown, the revenue to accrue
from this production at thirty cents per ton of profit, the
time at which this production will exhaust the property, and
the date of maturity of the sinking fund, which will again
be referred to in a later part of this report. This gives the
elements required to complete the value of the coal in the
estate, and the next columns show the value of the standing
timber, and of the surface where there are farm lands pro¬
ducing rent, or town lots. The sum of these values makes
the total estimated value of the estate; but, as in many of
these tracts the Company has a limited ownership, there
follows an estimate of the Company's interest in all these
elements of value, and the statement closes with the value
per acre of the property, and the encumbrances remaining
thereon.
The method of deducing the present value of the coal
from the present and future revenue, can perhaps best be
e.xplained by an example, and I will take for that purpose the
Tamaqua lands. These lands have a present revenue from coal
rents of |3,171 per annum, but as this is practically absorbed
in taxes and superintendence, I have disregarded it. The
estimate of development gives an annual yield of 200,000
tons in 1885 and thereafter; and an additional annual yield
of 300,000 tons in 1890 and thereafter; this rapid develop¬
ment, which contemplates the re-opening of two collieries
now unworked by 1885, and the opening and extension of
two other old ones, with the construction of an entirely new
one by 1890 (the whole entailing a cost of $500,000), being
proposed on account of the nearness of this estate to the
market, the desire to realize as soon as possible a revenue
to meet the heavy interest charges remaining as an encum¬
brance on the estate, and because there are two collieries
which without very great expense, can be made to produce
largely by 1885.
28
The conditions of the problem present two unknown
quantities; X representing the present (1880) value of the
coal, and Y an annual contribution to a sinking fund, which
shall accumulate so as to retire the value or X by a certain
date. The maturity of the sinking fund for tracts which
will be exhausted before the year 1930, is taken at the date
of exhaustion ; for tracts which will be exhausted between
1930 and 1980, at a date found by adding to 1880 ninety
per cent, of the term between 1880 and the time of exhaus¬
tion ; for those which will cease to produce between 1980
and 2030, eighty per cent, of the working term is added to
1880; and after 2030, the term added to 1880 is seventy
per cent, of the working term. This restriction of the sink¬
ing fund term for the distant future, is made to allow for the
increased cost at the great depth at which most of the coal
will then be mined, it being considered prudent that the land
should be paid for before the era of greatest cost is reached.
The date thus found for the maturit}' of the Tamaqua
lands sinking fund is 1995.
The equations to determine the values of X and Y, are
X= (A—Y) ^1", and X=B Y, where A is the annual
revenue, and B is the sum of the multipliers of the annual
contributions to the sinking fund ; these multipliers being
what one dollar, invested at compound interest, will realize in
the number of years to elapse between each year of the term
and the date of the maturity of the sinking fund. The
annual revenue will then be divided into two parts ; one
which will pay interest on the value of the lands, and the
remainder, a part of which will be used as the contribution
to the sinking fnnd, and the rest for the maintenance of im-
O ' '
provements, for taxes, &c. The first is capitalized at six
per cent., which is one per cent, lower than the Company is
now paying on most of its tract mortgages, but not. lower
than it may hope to reduce its interest charge after a re-
29
organization, with its burdens reduced and its credit re¬
established. The contribution to the sinking fund is sup¬
posed to yield a revenue of four per cent., which is as much
as it is safe to estimate for a fund running into the far distant
future, and loaded with the charges above mentioned. We
have then, for the Tamaqua lands, two cases :
I. Where the annual revenue in 1885 amounts to $60,000;
and
II. Where the additional annual revenue in 1890 amounts
to $90,000.
The solution of the first case shows that that part of the
lands producing the $60,000 revenue will have in 1885 a
value of $991,044, and that part which will produce $90,000
in 1890, will be then worth $1,483,636. To bring these
values to 1880, they have been reduced by finding the sums
which invested at compound interest, at the rate of eight
per cent., would reach at the given dates the sumé named.
This gives as the value of the lands in 1880, for case 1,
$674,488, and for case II, $687,207, or a total value of
$1,361,695.
The compound discount, as it might be called, is calcu¬
lated at eight per cent., because there must not only be in¬
terest paid, but a fund for improvements must be provided,
the oijject being to place a value on these knds, such that
the estimated revenue will not only pay interest and the
principal at maturity, but also all taxes, maintenance, and
improvements, so that no money need be borrowed from any
other source except that, as in this case, the revenues must
for a time be anticipated.
It will be seen that this compound discount makes a very
rapid reduction in the value of the property if its develop¬
ment is delayed, but that this reduction is not excessive, will
appear from an examination of several cases.
30
If in the case of the Tamaqua lands this reduction is
made at the rate of six per cent, per annum, the value in
1880 will be, in case I, $740,566, and in case 11, $910,823.
The sum of these is, $1,651,389, which is $289,694 more
than the amount found by reducing at eight per cent. Now
if this sum is invested at six per cent, compound interest, it-
will produce, in 1884, $352,125. Taking out of this $150,000
to make the two collieries to be opened by 1885, and re¬
investing the balance, $202,125, for five years, we shall have
by 1889, $257,965 to open three additional collieries in 1890,
whose cost is estimated at $350,000.
In the Eepp tracts, where the estimated revenue is $9,000
per annum from and after 1910, and $36,000 additional per
annum from and after 1930, the difference between the 1880
values at eight per cent, and at six per cent, compound dis¬
count, is $28,735. This compounded at six per cent., will
yield in 1908, $146,884, of which $60,000 is needed to open
a red ash colliery to be ready to produce coal in 1910.
Compounding the balance, $86,884, it will yield in 1928,
$278,649, and it is estimated that $200,000—one-half the
cost of a deep shaft—will then be charged to this tract, be¬
ing needed to produce coal in 1930.
In the Associate lands, near Shamokin, the anticipated
revenue from and after 1900 is $150,000. The difference
of the values in 1880, reduced at eight per cent, and at six
per cent., is $227,850, which invested at six per cent, till
1895 will yield $546,056, and the money required to open
five colleries is $500,000.
These last two instances were taken as the ones most
likely to show a defect in the rule, on account of the long
periods through which the compounding goes on; and the
substantial agreement between the sums produced and those
required for improvements, shows that the rule is as good as
any simple rule that could have been adopted.
31
When the same rule is applied to the whole estate, it pro¬
duces up to 1930, the period at which the shipments are ex¬
pected to reach the maximum, and after which there is no
more to be allowed for improvements, §10,883,566, while
the sums required to make the improvements are, as before
stated, $10,600,000.
It may be thought that the properties whose development
is late have been hardly treated, and might have been made
to produce earlier, but the collieries were assigned to the
tracts, and their time of opening was determined by the
Company's engineers, before I had devised the present
method of valuation ; and if any one tract is faster developed
than here stated, it must be by retarding the development
somewhere else, for the development of the estate, as a whole,
cannot reasonably be expected to be more rapid than is here
estimated.
The low values placed by the rules adopted on some
of the properties whose development is distant, emphasize
with great force the truth that it is ruinously costly to keep
for many years properties against which there is a heavy
interest charge constantly accruing, and from which im
present revenue can be derived.
That it is only those properties which are not likely to
be used for years, that are given a low valuation by the sys¬
tem adopted, will appear from an inspection of Statement
G, where, for instance, tracts Nos. 20, 21, and 22 are valued
respectively, at $1,439, $1,169, and $1,206 per acre; and
this though large quantities of coal have been taken from
each of them. It is such properties as Nos. 35, 51, and 55,
which cannot come into use for from thirty to fifty years,
whose interest charges and other expenses so diminish their
value, that they are now only worth $64, $67, and $61 per
acre respectively. All of these last named tracts are rich in
coal, and will in time yield large revenues, but for the
32
present they serve no purpose except that of preventing
their use by rival interests.
Continuing the explanation of Statement G :—after the
value of the estate due to its future coal product is obtained
as above described, the values of the timber and surface are
added, giving the total estimated value of each tract; and
the sum of these values, $32,394,799 is, of course, the total
value of the estate, of which $31,303,902 is the value of the
coal, $913,572 the value of the timber, and $177,325 the
value of the surface. Next follows an estimate of the Com¬
pany's interest in this estate, the division being made on the
basis of the Company's undivided interest in the lands in
Part I of Statement G, and on the basis of their stock
ownership in Part II.
This gives the Company's interest an estimated value of
$30,630,648, of which $29,603,041 is the value of the coal,
$861,426 is the value of the timber, and $166,181 is the
value of the surface. This estimate includes the colliery
improvements on the lauds owned, and on those controlled
by the Company, as without them the lands would not be
prepared to ship coal, and therefore could not produce the
revenue which is the basis of their valuation ; and it is for
this reason that in the case of those tracts whose improve¬
ments are not yet made, it has been necessary to provide a
fund out of the difference between the compound discount
computed at eight per cent, and at six per cent., with which
to make the necessary improvements, the money being vir¬
tually provided by pledging the future revenues.
The valuation does not include the colliery improve¬
ments on lands of other owners held by the Company
under lease. The last valuation put by the Company's officers
on these improvements was $566,836, which seems to me a
reasonable valuation. Together, these sums amount to
$31,197,484, which is my estimate of the value of all the
S3
Company's property in coal lands, timber lands in the an¬
thracite field, and colliery improvements. The value of the
Company's interest in the coal on the estate, stated above as
$29,603,041, was found by adding together , the computed
values of the separate tracts. If we consider the estate
from another point of view, regarding it as one body of lands,
and using the total shipments anticipated at the several de¬
cennial periods, as previously stated, with the revenues due
to the assumed profit of thirty cents per ton, the present
value of the Company's interest in the coal in the estate is
found, under the rules before explained, to be $30,668,525;
the coal in the whole estate being valued at $32,431,609.
These values differ from those derived from the sum of
the tract values by about three per cent., which is as near an
agreement as could reasonably be expected. Statement G
closes with a list of the encumbrances on the property, being
the indebtedness due mainly to parties other than the Phila¬
delphia and Reading Railroad Company, which indebtedness
amounts to $14,715,058.
As the general result of this inquiry we have these facts :
I. That the Philadelphia and Reading Coal and Iron Com¬
pany has in its anthracite lands in the Schuylkill region an
estate which is not, and cannot hereafter be paralleled in
America for extent, productiveness, or value; and that over
the railway, canal, and steamship lines of its ally, the Phila¬
delphia and Reading Railroad Company, it has unequalled
facilities for reaching at low cost, the markets where its
products are required, which are the best markets in the
country.
II. That this estate includes nearly thirty per cent, of all
the anthracite lands in Pennsylvania, and that it can send to
market nearly thirty-four per cent, of all the future product
of anthracite of that State.
3
34
III. That judging from the history of the coal trade, the
annual production of this estate, which may be taken at
4,300,000 tons at present, will go on increasing till in fifty
years it will reach its maximum at about 13,360,000 tons ;
that after remaining at that figure for about twenty or thirty
years it will begin to decline, but that the estate will not be
wholly exhausted at the end of the next century. ,
IV. That assuming the profit on the future coal product
of the estate to be 30 cents per ton of coal shipped; that the
Company will be able to reduce the rate of interest on the
money needed to hold and develop the property from 7 to 6
per cent, per annum, and that the development will be at the
rate just stated, the whole estate has a value of $32,394,799 ;
that the Company's interest in the estate is worth $30,630,648,
and that, including colliery improvements belonging to the
Company, but situate on lands owned by others, the whole of
the Company's property is worth $31,197,484.
V. That of the original price of these lands there still re¬
mains unpaid the sum of $14,715,058.38, which amount is
represented by mortgage bonds, and is mostly in the hands
of parties other than the Philadelphia and Heading Railroad
Company.
The estate is, as has been just shown, worth much more
than the encumbrances remaining on it, but as there may be
some of the tracts which were separately purchased which
are overweighted with debt, I will, in further compliance
with your instructions, proceed to make a series of short re¬
ports, in which, after some notice of the special circumstances
of each case, I will consider the subject of the indebtedness
remaining on each of these tracts.
In order that these reports may be as concise as possible,
I will refer you for information on many points to Statement
35
G {see appendix), and will not usually report the facts which
may be obtained from an inspection of that statement, nor will
I comment on the value of the lands as compared with the cost
or encumbrances except where the latter are excessive, nor
speak of the geological structure except where it is dis¬
turbed, or where there is reason to think that mining will
be less than usually successful.
I will also refer you to H, a map showing the position and
extent of the Company's estate {see appendix), defining the
limits of each of the separate tracts, the collieries, railroad
lines, and giving such other information as can be shown on
such a map, and may serve to illustrate this report.
I. Tracts in which the Company has an undivided owner¬
ship of the lands.
1. Trevorton Estate.
This estate is owned by the Company and the Lehigh
Valley Railroad Company, the two companies having equal
undivided interests. The Company pays to the other owner
a royalty of thirty cents per ton for sizes above chestnut,
fifteen cents per ton for chestnut, and five cents for pea, for
one-half of all the coal shipped ; and it also pays five-eighths
of all taxes that may be levied on the property.
There are two collieries on the estate ; No. 1, which is not
now in operation, being on the Lykens Valley Veins, and
No. 2 on the Mammoth Vein, which is here split in two parts.
These veins are all good, but the coal is so soft as to crumble
in transportation. Some additional developments are needed
underground before work can be resumed at Colliery No. 1,
but No. 2 is working, and in good order. The buildings and
machinery at both are good.
No. 2 is a cheaply worked colliery, having no water to
pump, as the workings have not gone below water level ;
and the four additional collieries, which are needed to develop
36
the estate thoroughly, will all by being opened above water
level avoid pumping expenses for some years.
The chief drawbacks to the value of this property are, 1.
The softness of the coal, and 2. Its distance from the eastern
market. Should the western market ever be opened to the
Company's coal, its situation will be correspondingly advan¬
tageous.
2. Associate lands.
Under this title the Zimmerman and Boyd tracts will be
considered, as well as those marked "Associate Lands " on
the map. In this case also, the interest which does not be¬
long to the Company, which is about twenty-nine per cent,
of the whole, is owned by the Lehigh Valley Kailroad Com¬
pany. These properties yield no revenue at present, and no
branches of the Beading Eailroad penetrate them. Surface
shaftings show that the coal is probably of good quality, and
as it can be reached without going to great depths, the five
collieries which are assigned to this body of lands will not
be very costly. The timber is exceptionally fine.
The Company's interest is valued at less than its cost
mainly because the property will be late of development, and
it is worthy of consideration whether the Lehigh Valley
Railroad Company or some other lessee might not be per¬
mitted to open one colliery to create a revenue, and lessen
the burden of the cost of the property.
3. Shamokin and Bear Valley lands.
In the computations of Statement G the Russel tract is
included with the Shamokin and Bear Valley lands proper.
These lands contain three collieries. Bear Valley Shaft
Colliery works the Mammoth Vein, which has twenty feet of
excellent coal. No new developments will be required at this
colliery for some years, and the buildings and machinery are
in good order. George Fales Colliery, working the two veins
37
immediately over the Mammoth, has not m.uch coal opened
at present, and some further developments will be needed to
again make it a successful colliery. The machinery and
buildings are good. Sterling Colliery, now operated by les¬
sees, is on the Eussel tract, and furnishes an outlet for coal
from an adjoining tract belonging to individual owners, which
coal pays five cents per ton to the Company for the use of
the Sterling colliery improvements, and for right of way.
The two additional collieries assigned to these lands will
have to be opened by shafts of moderate depth.
4. M. E. Leverson tract.
This tract is at present producing no coal. It contains
the Mammoth and underlying veins, with, perhaps, some of
the upper ones, and they will probably be found good. Tue
shaft which will develop the northern part of the Sharaokin
and Bear Valley lands will also work this tract, s > that the
charge against it for improvements will not be excessive.
5. Wm. M. Bockafdler tract.
No colliery is located within the limits of this small tract,
but nearly one-half of the coal shipments of Sterling Col¬
liery are made from it. The Mammoth Vein is here very
good, and contains twelve feet of workable coal. No charge
for improvements need be made hereafter against this prop¬
erty, as the colleries which are or will be located on other
tracts, and their extensions, will reach all of its coal.
6. Big Mountain Improvement Company's estate.
Of the lands belonging to this estate which contain no
coal, the larger part is in a timber tract which is entirely
outside of the coal measures.
The Burnside and Big Mountain Collieries are located on
this estate. The former has lately come into the possession
of the Company by purchase from the lessees; and having
38
been put in ordex', is now in good pi'oducing condition, and
will require in the near future no considerable expenditure
for improvements. The latter is still a leased colliery. The
coal tributary to it above water level is nearly exhausted, but
the lessees are now sinking a slope and making the other
necessary improvements at their own expense. The build¬
ings and machinery at Burnside Colhery are good, and the
colliery will, if woi'ked continuously, produce coal cheaply.
At Big Mountain Colliery the buildings and machinery are
of little value, but will probably outlast the lease, which
expires in 1886. This, too, will be a cheaply worked col¬
liery. The two new collieries assigned to these lands will be
opened by shafts of moderate depth.
7. Brady, G-ray, and Wetherill tracts.
There are no working collieries on these lands except the
Greenback, a leased colliery on the Brady tract.
Henry Clay Colliery Ho. 2, on alien lands, takes a large
tonnage from the Gi'ay tract, paying a royalty therefor ; and
the Peerless Colliery gangways are also about entering the
same ti'act.
There are some small openings on the Wetherill tract
which mine coal for domestic use in the town of Shamokin,
but their product is insignificant. The Daniel Webster Col¬
liery on the Wetherill tract was abandoned in 1875, the
available coal having been exhausted, and the lessees being
unable to continue the development further. The collieries
yettobe opened will be compai'ativelyinexpensive to construct,
and will be of only moderate producing capacity.
8. Melntyre lands.
These lands contain no working collieries, but the Excel¬
sior and Locust Gap—leased collieries—derive a large por¬
tion of their tonnage from them ; and the Company's Locust
Spring Colliery will soon extend its western gangways into
them.
39
These neighboring collieries will mine all the coal from
this pioperty, except that one shaft will be needed in the
Southern or Mahanoy basin ; but this expenditure will not
be made in the near future.
9. William Sheed tract.
No colliery is situated on this tract, nor do the gangways
of any colliery penetrate it now, nor will they in the near
future. The lateness of the development alone causes this
tract to be valued lower than those immediately surrounding
it, for there is no reason to doubt the goodness of the coal.
A part of this tract projects into the territory of the Penn¬
sylvania Eailroad Company, and is somewhat isolated ; but
as a portion of their property immediately to the westward
projects similarly into the Company's estate, it may some day
be found to the advantage of both parties to revise the com¬
mon boundary, each giving the other what is not valuable to
itself, and receiving what is desirable.
10. Samuel Morgan tract.
The same remarks as to want of present revenue, lateness
of devolopment, and consequent low valuation, which were
made concerning No. 9, apply to this tract, which adjoins it
on the south.
It, however, is so placed in regard to other parts of the
Company's estate, that it should certainly be retained.
The gangways of Mount Carmel Shaft Colliery will in
time penetrate it, and no improvements will probably ever
be needed within the tract limits.
11. Mt. Carmel Coal and Iron Company's estate.
Mt. Carmel Shaft Colliery is the only one whose improve¬
ments are on this property. Coal Mountain Colliery having
been abandoned by the lessees about six years ago. Stuart-
ville Colliery, on alien lands, is mining on the eastern end of
the property, and will for some years pay a considerable sum
in royalties.
40
One more collierj' is all that will probably be needed to
develop this estate, but it will not be required for some fifteen
years.
Mt. Carmel Shaft is one of the largest and best collieries
owned by the Company, working cheaply, and having pro¬
duced as much as 17,000 tons in one month. The buildings
and machinery are nearly new, and are very good.
12. Mt. Carmel Locmt Mountain Coal Company's estate.
The Eeliance Colliery, which has lately passed from the
hands of lessees into those of the Company, is the only colliery
on these lands. It is now in all respects in good order, and
will be cheaply worked and produce good coal. The value
of the tract is less than the encumbrances remaining on it by
$40,000, but as the Reliance Colliery is a good one, with a
large producing capacity, and as the Lehigh Valley Railroad
Company could enter into immediate possession should the
Company abandon the lands, I advise Receivers to retain the
property, making an effort to reduce the encumbrances as
much as possible.
13. Helfenstein lands.
This body of lands contains the Helfenstein and Ben.
Franklin Collieries, both on the Lykens Valley Vein near
its southern outcrop. The stratification along the southern
edge of the coal field is disturbed, and these collieries have
never been very successful. The former has not been worked
for the last three years, and will probably not work again
till a tnnnel is driven through to the next northern basin, in
which the coal will probably be found to be good. The
buildings and improvements, which are sufficient for a colliery
of moderate capacity, are in good condition.
The Ben. Franklin Colliery is now in the hands of lessees.
It is in much the same condition as the Helfenstein Colliery,
not being able to produce much more coal without further
41
developments. The buildings and machineryare in fair order.
The collieries necessary to the further development of these
lands will be sunk in the main Mahanoy basin, in which
there will no doubt be an abumlance of good coal.
This property is greatly over-encumbered, and I do not
think it to the Company's interest, there having been but
little of the original purchase money paid, to retain posses¬
sion of it. It is true that the Philadelphia and Heading
Railroad Company has a branch running into these lands,
about seven miles long, which might be rendered useless were
they to pass into the hands of any rival railroad company,
and that it would not be a very diíEcult nor costly matter to
extend the Lehigh Valley or Pennsylvania system of rail¬
roads into them, the distance from Mount Carmel being only
five miles, but the lands are not an attractive investment,
and I think it wise to abandon them now, and run the risk
of regaining them again if they shall ever be wanted.
If the bondholders are willing to make large concessions
to induce the Company to keep the property, I would advise
Receivers to require a reduction of the outstanding bonds to
one-half the present amount.
14. Locust Summit Improvement Company's lands.
The improvements of Locust Gap and Locust Spring Col¬
lieries are on this tract. The former is a leased colliery, the
lease expiring in about seven years. The buildings and ma¬
chinery are good, and the colliery should have a prosperous
future. Locust Spring Colliery is a first rate colliery, the
coal good, and the buildings and machinery almost new. No
further expenditure will be required for improvements on this
tract for some years.
15. Locustdale tract.
The Merriam and Potts Collieries are both situated on this
tract, and the Monitor Colliery gets part of its coal from it.
42
The Merriam Colliery is in good order, and capable of a large
production at a moderate price. The Potts Colliery is also
in good working condition, but on account of a fire which
somewhat endangers a part of the workings, and the great
quantity of gas which makes mining costly, and to some extent
dangerous, it is not likely to work quite as cheaply as the
Merriam.
Neither of these collieries will'need in the near future any
considerable expense for improvements; and the new collieries
which will be required to complete the development of the
tract will not be wanted for some years.
16. Ashland estate.
There are no collieries at present working on this estate,
as new levels are now being opened in both the Tunnel and
Keystone Collieries. They can both be made ready for ship¬
ments next year, but will require a large expenditure to bring
them up to the point of full production. They both work
the Mammoth Vein at a considerable depth, and are not among
the Company's cheaply worked collieries. When the present
improvements are completed, these two collieries will be in
good condition.
From the northern side of the estate the Potts and Bast
Collieries will draw a large part of their coal for many years,
and to get the coal near the bottom of the basin will require
one or more deep shafts.
17. Fountain Spring tract.
This is farm land containing no coal. Its value is derived
from a farm of twenty acres, a country tavern, and a fine
spring, which supplies the Tunnel Colliery with water.
18. Fecho Allen tract.
There is but little workable coal on this tract. It includes
the town plot of South Ashland, but there is a very small
demand for the building lots, there being little likelihood that
town will grow up at this point.
43
19. Locust Mountain tract.
This tract contains the openings of Bast Colliery, and fur¬
nishes a considerable amount of coal to Preston Colliery No. 2.
Bast Colliery is in good w^orking order, and will not require
further extension for some years. It mines coal cheaply, and
its coal is good.
Its valuation is low considering its large present production,
but this is due to the fact that there is not a great amount of
coal left in the tract.
20. William Jones tract.
This tract contains within its limits the Shenandoah City,
Plank Ridge, and Indian Ridge Collieries. It is in the heart
O ' O
of the Shenandoah Basin, which is the most productive part
of the Schuylkill region, these three collieries having for the
last five years had an aggregate tonnage averaging 213,046
tons per annum.
Shenandoah City Colliery will need to tunnel for the lower
veins to keep up its shipments, and will probably not last
more than fifteen years.
Plank Fudge Colliery is working on the veins underlying
the Mammoth, and does not at present require any expendi¬
ture to open additional coal.
Indian Ridge Collitry has coal enough for several years
supply, at its present levels, after which the shaft will have
to be sunk to the underlying veins.
The buildings and machinery at all these collieries are in
good order.
There will be some difficulty about working out the coal on
the'western part of this tract, as the principal business por¬
tion of the town of Shenándoah is situate,d on it. The coal
lies at considerable depth below the surface, but it cannot be
as thoroughly worked out as if the ground were unoccupied.
44
21. Philadelphia and Mahanoy lands.
This property is tlie most productive of all those owned by
the Company, having for the past five years averaged three-
quarters of a million tons of coal. It contains ten collieries
worked by the Company, and three in the hands of lessees.
Bear Run Colliery was bought from the lessees in 1879.
Its pumping facilities are not equal to the work required of
them, but the colliery is otherwise in good order. The lower
member of the Mammoth vein is about exhausted at the pre¬
sent working level, but the upper members are being worked,
and the driving of a tunnel to the Buck Mountain Vein at
the lower level will open a supply of coal sufficient for several
years without further sinking. The Buck Mountain Vein
has been cut by a tunnel at the upper level, but little coal
has been taken from it. It will yet yield largely.
St. Nicholas Colliery was bouglrt from the lessees in 1880-
The two upper benches of the Mammoth Vein are at present
producing nearly all the coal shipped by this colliery. A
tunnel must soon be driven to the Buck Mountain Vein, which
is in good condition here also, and the colliery will then be
well supplied with coal. There is a great deal of pumping
to do at this colliery, but the machinery is sufficient for the
work.
Suffolk Colliery is still in the hands of the lessees, the lease
expiring December 31, 1883. The Primrose and Orchard
Veins are worked in good condition, though the veins are
somewhat irregular in structure. The buildings and ma¬
chinery are in good order, and there is coal enough opened
to continue shipments on the present scale for several years.
Elrnwood Colliery is not now working, the present lift being
exhausted. To put it in good order again would require the
sinking of a slope on the bottom bench of the Mammoth Vein to
a level below the present one, and the driving of a tunnel to
45
the Buck Mountain Vein. The colliery will then be in con¬
dition to produce coal cheaply for several years. The machin¬
ery is adequate to its present work of pumping water, but
must have some additions when a new lift is sunk.
Tunnel Ridge Colliery passed from the hands of the lessees
to those of the Company in January, 1880. The machinery
and buildings were not in good order, and have ever since been
undergoing repairs which are now about finished. The Mam¬
moth and underlying veins will be worked here. The eastern
workings are somewhat restricted by the necessity of keeping
up the surface in the southern part of Mahanoy City, and
the western by the swamp bordering on Mahanoy Creek, but
the swamp can bo drained without great expense, and the
coal under it can then be taken out. The colliery will then
last without further sinking for several years.
Boston Run Colliery. A new level has just been opened
here on the Mam.moth Vein, which is in fine condition, but
the permanent pumping machinery has not been put in.
The Buck Mountain Vein will be opened by a tunnel at the
new level, and the colliery will need no other extensive im¬
provements for some time. The machinery and buildings
have lately been put in good repair.
Staffordshire Colliery is a small colliery in the hands of
lessees, working the Orchard and Diamond Veins, both of
which are nearly exhausted within present lease limits.
There is some question as to the propriety of extending the
lease ; but if it is decided not to do this, the colliery will soon
cease operations. The buildings and machinery which belong
to the lessees are of little value.
Webster Colliery is also a small leased colliery, working
the Buck Mountain Vein. By opening the next overlying
vein, the Seven feet vein, the liie of this colliery can be pro¬
longed for several years. The buildings and tlie machinery
are the property of the lessees. Tiiey are sufficient for the
work required of them.
46
Ilahanoy Œty Colliery works the Mammoth and Primrose
Veins, which both contain good coal. This colliery is in all
respects in good order, producing a large amount of coal at
a low cost, and will require no expenditure for improvements
for several years.
'North Mahanoy Colliery mines coal from the veins under¬
lying the Mammoth Vein, which are in. good condition.
This is also a cheaply working colliery with large producing
capacity, and will require no outlay for improvements in the
near future.
Ellangowan Colliery is opened by a shaft 335 feet deep,
which develops the Holmes Vein and the three members of
the Mammoth Vein, all in good coal. This will remain for
many years one of the Company's best collieries, the ma¬
chinery and buildings being new and good, and the colliery
being capable of a large production at low cost.
Kniekerhoeker Colliery works the same veins as Ellan¬
gowan Colliery. It will also have a large production at low
cost for a number of years, without much further expendi¬
ture for improvements. The underlying veins have not yet
been opened above water level.
Schuylkill Colliery was purchased from the lessees in 1878.
A slope has since been sunk on the Buck Mountain Vein
which is here in fine condition, and the outside machinery
and buildings put in order, but the permanent hoisting and
pumping machinery for the new level have not been sup¬
plied. When this want shall have been met the colliery will
be a very good one, with a large product at low cost. The
coal product will come mainly from the James McNeal tract.
This estate is producing so large a tonnage in proportion
to its area that its valuation is very high, but it is well
worth the amount> of the estimate.
22. James. McNeal tract.
This tract has at present no working collieries within its
47
limits, nor are any likely to be opened soon, as tbe coal of
the northern basin will be taken to the Knickerbocker Col¬
liery, and that of the southern basin partly to Ellangowan
and partly to Schuylkill Colliery. The tract contains all
the veins up to the Primrose in good condition, they having
been all developed by the former owners through the Coal
Run, Yatesville, and West Lehigh Collieries. These three
collieries have all been abandoned, and the buildings and
machinery removed.
23. Kear and Patterson lands.
These lands contain at present only two small collieries,
Forrester and North Star, both in the hands of lessees. Hill¬
side Colliery, at the eastern end of the lands, having exhausted
its supply at the first lift below water level, was abandoned
in 1874, the tunnel which was driven across the basin having
failed to find any workable coal. The improvements were
removed, and the colliery allowed to fill with water, but it
is possible that further explorations may prove that there is
still workable coal within the colliery limits.
The chief product of the lands is from Boston Run Colliery,
whose gangways extends into the tract. Tunnel Ridge Col¬
liery will also take a part of its coal from this property.
24. Tamaqua estate.
There are at present no working collieries within the
limits of this estate, except West Lehigh Shaft Colliery, which
is shipping at the rate of ten thousand tons per annum. Of
those which have been worked within the last decade, Nexu-
kirk, Colliex-y was temporarily abandoned in 1876, because
the Company had then enough collieries in producing condi¬
tion to supply the demand for its coal, and there Avas con¬
siderable expenditure needed to bring up the production of
this one to the point where it could work economically. The
mine was allowed to fill with water, in which condition it
48
still stands, and the outside improvements have been partially
removed. Before work can be resumed here the boilers
will have to be replaced, the pumping machinery com¬
pleted, the mine freed from water and put in repair, and
such of the machinery as has been removed, replaced in the
breaker. The coal at this colliery is good, but as the old
levels were worked out and the new one not completely
opened, there is some work to be done underground before
large shipments can be made.
Buckville Colliery was stopped about the same time as
Newkirk, the different members of the Mammoth Vein, and
all the other veins down to the Buck Mountain Vein, being
in fault. The outside machinery and buildings have been
generally removed (the pumping machinery with its engine
house alone remaining), and it will require a considerable
expenditure of time and money to replace the machinery,
remove the water, and make such explorations and develop¬
ments underground as shall again open coal enough for the
colliery's supply.
Wabash Colliery has not worked since 1873. At that
time the pillar below the water level broke, and let into the
lower workings such a great body of water that it was not
thought wise to incur the expense of pumping out the mine,
and providing the permanent machinery necessary to prevent
its being again flooded. The coal was very good, and the
colliery will no doubt be a profitable one some day. All the
outside machinery and buildings have been taken away.
West Lehigh Shaft Colliery has for some years been ship¬
ping on a small scale only. The geological structure is much
disturbed in this locality, and so little coal could be procured
that it was found impossible while working the lower levels
to make the colliery pay. The lower workings were there¬
fore abandoned, the mine allowed to fill, and the supply of
coal has since been taken by the lessees, who have possession
49
of the colliery from the workings above water level. Nothing
remains of the machinery and buildings but the breaker,
which will have to be rebuilt when the colliery is reopened.
There is a reasonable probability that further explorations
in the next basin to the northward will develop workable
coal, which can be opened by deepening the shaft and driv¬
ing a tunnel through the anticlinal bounding the basin in
which the old colliery worked, thus making useful the present
colliery openings.
Alaska Colliery, having been worked out at the existing
level by the lessees, was closed in 1876. There is nothing
left of the machinery and buildings, and the colliery will not
be reopened, as the coal can be taken from the eastward ex¬
tension of the gangways of Newkirk Colliery. The lowest
veins of the series were worked here, and were found in mod¬
erately good condition.
Tucker Colliery, near the western end of the properly, was
abandoned before the Company purchased the estate in 1872,
because the mine, as then opened, was exhausted. The coal
of the Holmes vein, which was the one principally worked,
was good. It is proposed to unite this colliery with Buck-
ville hereafter, and it will therefore not be reopened in the
present locality. None of the machinery and buildings of
this colliery remain.
It will be seen from this description that the Tamaqua
estate is not likely to produce much revenue iu the near
future, nor indeed at any time without considerable prelimi¬
nary expenditure. There was, many years ago, a large pro¬
duction from these lands, but their later history has not been
encouraging. The geological disturbances will always make
mining here comparatively costly, even though we have
learned much of late years about working faulty ground to
advantage.
The computed value of this estate, $1,388,797, is based on
4
50
an anticipated production of 200,000 tons, to be obtained in
1885 by reopening Newkirk and Buckville Collieries, and
an additional product of 300,000 tons, making 500,000 tons
in all, to be realized by 1890 from Wabash and West Le¬
high Shaft Collieries, and a new colliery to be opened by
sinking a shaft which would probably be nine hundred feet
deep. This is the utmost that these lands can be expected
to do, and only because they are so near to market, and
therefore will have an advantage in freights, can their de¬
velopment with this rapidity be at all justified.
It should be considered, in deciding on the Company's
policy with reference to this estate, that it is the most acces¬
sible to rival mining and transporting companies of all the
Company's property in the Pottsville District ; the railroad
lines of the Central Eailroad Company of New Jersey reach¬
ing its eastern boundary, and those of the Lehigh Valley
Eailroad Company being only a few miles distant.
Were there no encumbrance on this property, or but a
small one, and wei'e this the only tract about the retention
of which there could be any doubt, it might wisely be kept
to serve, as it was originally intended, as a barrier to aggres¬
sion on the part of rivals; but under all the circumstances I
have no hesitation in saying that the encumbrances are far
beyond its value to the Company, and I advise Eeceivers to
pay no more interest, and to part with the estate on the best
attainable terms, unless the liabilities can be reduced at least
one-half, and the interest lowered to six per cent. I think,
however, the wisest course will be to part with the property
entirely.
25. Coal Hill tract.
No coal has been taken from this tract, except that about
forty years ago a gangway was driven into it from the east¬
ward, which developed a good vein of coal ten feet thick.
51
Coal Hill Colliery, which is on the Valley Furnace estate
just west of the boundary, was worked prior to 1870 on the
Mammoth Vein, or the next vein underlying the Mammoth,
the identification not being positive. The vein showed about
six feet of good coal, hut the gangways went into fault as
they approached the boundary line. Little is therefore
known of the general condition of the coal on this property,
but as it lies wholly on the north dipping measures of the
Sharp Mountain, which are very frequently faulty, it cannot
confidently be counted good.
As the value is far below the amount of the encumbrance,
as the coal is of doubtful character, and as these lands have
no important" connection with any other property belonging
to the Company, I advise Keceivers not to pay any interest
on the bonds, and to surrender the property.
26. Wood and Abbot tract.
This tract has never produced much coal. A number of
small drifts and two small collieries opened by slopes were
worked to a limited extent some years ago on the red ash
veins, and the Whitfield tunnel was driven on the northern
part of the tract to the top member of the Mammoth Vein,
but the coal mined from it was mostly taken from the Valley
Furnace tract. From the developments made on three sides
of this property, there is reason to think that the coal will
be good, and as it contains all the veins from the bottom of
the series up to and including the red ash veins, there is
nothing but the lateness of its probable development which
prevents its having a large present value.
27. Valley Furnace lands.
This estate contains no working colliery at present, nor is
there a likelihood that any coal will, in the near future, be
taken from it by the gangways of other collieries.
52
The coal near its northern out-crop is in good condition,
and has been somewhat extensively worked ; but all the col¬
lieries have been abandoned, and the machinery and build¬
ings have been removed, except at the Ledger Vein Colliery,
where they belong to the lessees.
Ledger Vein Colliery is situated in the northernmost basin,
which it worked out, exhausting the coal of the Skidmore
and Mammoth Veins, which were here in good condition.
Windy Harbor and Butler Collieries were opened in the
next southern basin. The coal in this basin was also very
good, the Skidmore Vein being eleven feet thick, and the
Mammoth from twenty to twenty-five feet thick.
Sillymans Colliery, which is probably in the same range,
on the eastern end of the tract, also worked the Mammoth
Vein in good condition.
These three collieries were abandoned before the Company's
purchase in 1874. Windy Harbor was closed in 1869, be¬
cause of trouble with the workmen, and because of insuffi¬
cient pumping facilities, leaving almost untouched a newly
opened level of very fine coal. Butler Colliery slope was
allowed to break down in 1871, and it is such a wreck that,
it is doubtful whether it may not be better on this account,
and because the old plan required two hoists to be made to
get the coal to the surface, to sink a new shaft rather than
re-open the slope. The coal was good, and a new lift had
just been opened when the colliery was abandoned. At
Sillyman's Colliery the Mammoth Vein was good, but the
work was closed about 1851 because there was no more coal
to be had without further sinking.
These mines are all flooded, but the probability is that one
of them can be opened with profit in a few years, the coal
being so good and the geological formation tolerably regular.
That they are now closed is due to mistakes in management
53
made by the lessees, to deficient knowledge of mining geology,
and to difficulties of other kinds which have now passed
away.
In the next southern basin, the coal is good in the few
places where it has been tested, but the Mammoth Vein lies
so deep that its development is somewhat remote. Near the
southern boundary of the estate, where the Coal Hill Col¬
liery was worked, the coal was workable toward the eastern
end of the property, but further west where the north dip¬
ping measures of the Sharp Mountain were encountered, it
deteriorated greatly. It is probable that a colliery of mod¬
erate capacity can be opened, without much expense, in this
neighborhood.
There is north of the coal territory described, an unde¬
veloped basin, near the Silver Creek reservoir, which is
known to contain coal, but its character is not proven. The
opening of this territory will probably be delayed for some
years, as there is no railroad within several miles of it, and
it lies at so great an elevation as to require very steep grades
to reach it.
The computed value of the tract, $837,550, is based on a
rapid development of the property, which will open two col¬
lieries, with a capacity of 150,000 tons by 1890; three more,
with a capacity of 350,000 tons in the next ten years ; and
two more, yielding 200,000 tons in the next five years ; so
that the production of the estate should reach 700,000 tons
in 1005, and there continue for many years. No more rapid
opening of the estate can reasonably be anticipated, but this
would leave the value so far below the cost, that I do not
think the Keceivers should continue to pay interest, nor
should the propeidy be retained, unless very much better
terms can be made with the bondholders.
On account of its nearness to market, and because of its
connection with other properties of the Company, I would
54
advise its retention, if the cost can he reduced one-third, and
the rate of interest to six per cent; or if, on tlie present in¬
debtedness, the interest can be reduced permanently to four
per cent.; otherwise I would surrender it to the bondholders.
There was but little of the purchase money actually paid on
this tract, so that its surrender would involve little pecuniary
sacrifice, except the interest and taxes which have been paid.
The surrender of nearly all the Company's lands, as far
west as the western boundary of the Valley Furnace lands,
would, of course, invite the occupation of the territory by
rival interests; but it is a very serious question whether the
Company can afford the drain on its resources, which will be
necessary to keep them out.
28. Glentworth tract.
Contains no working colliery; Cedar Hill Colliery having
been abandoned about five years ago, and the machinery and
buildings removed. The coal is good, but the colliery re¬
quired e.xtensive developments to make it again productive,
and the tract can be more economically developed from Eagle
Hill Colliery, and the proposed colliery north of Eagle Hill,
on the next tract to the westward,
29. Eagle Hill tract.
Eagle Hill Colliery, a large operation, is situated within
the limits of this tract. It works the Mammoth Vein,
which is in fine condition, and from twenty to thirty feet
thick.
Glentworth Colliery, the only other working on the tract
was temporarily abandoned about six years ago, the existing
level having been nearly worked out. The Holmes Vein
was found there nine feet thick, and the Primrose Vein was
ten or twelve feet thick, the coal of both being excellent. A
red ash vein, still higher in the series, was extensively
worked some years ago by a drift. It was of good size, and
55
tlie coal was fine. Glentworth Colliery now stands partly
filled with water, and it is proposed after pumping it out to
unite it with Eagle Hill Colliery, by sinking the slope
another lift, and tunnelling to the Mammoth Vein at a level
lower than the present Eagle Hill gangways.
The machinery and buildings at Eagle Colliery are good,
having been lately thoroughly overhauled, and the breaker
is so designed that with some additions it can prepare the
coal from the Glentworth Colliery when that colliery shall
have been reopened.
It is proposed to open another colliery within a few years
on the north dipping measures north of Eagle Hill shaft,
which will drain a large field of coal on this and the adjoin¬
ing tracts.
30. Mary Patterson, and
31. P. M. and L. Lewis lands.
These tracts, as they are contiguous, and were united in
their purchase, will be treated together. They will need no
improvements within their own limits, their coal being tribu¬
tary to Eagle Hill Colliery, and to the other colliery which
will be opened on the Eagle Hill tract. They contain all the
veins below and several above the Mammoth, which are all
supposed to be in good order.
32. Ravensdale tract.
This tract is all underlaid with coal of very good quality,
all the veins below the Mammoth and three or four work¬
able veins above the Mammoth being found on it.
There is at present'no colliery on these lands, but they
furnish Pine Forest Shaft Colliery with about one-third of
its supply, or 10,000 tons per annum. This yield will in¬
crease as the gangways from this cqlliery penetrate the tract
56
further, and its production will be still greater when the
west gangways from the proposed colliery on the Eagle Hill
tract enter its limits,
33. Dilcamp tract.
There are no collieries on this tract, nor is there any one
whose gangways will soon penetrate it. It is on the range
between Pottsville Shafts Colliery and the proposed colliery
at Eagle Hill, but it will probably be several years before
any of these gangways reach it.
The lateness of the development makes the present value
small compared with the adjacent tracts. Its encumbrances
are greater than its valuation, but its fortunes must probably
remain united with those of tracts Nos. 29, 32, and 40, they
having been all bought from the same parties, and the mort¬
gage covering the several properties. As the other tracts
are worth much more than the encumbrances, it is to the
Company's interest to retain the whole four.
Wetherill estate.
Under this title I have grouped seven parcels of land in
which the Company bought the Wetherill interest, which
amounted to about two-thirds of the whole. The tracts are
No. 34, Lee lands; No. 35, Kepp tracts, including the Repp
and Keim tract, and the Repps' heirs tract; No. 36, Saw
Mill tract ; No. 37, Oak Hill tract ; No. 38, Ellmaker tract,
and No. 39, Flowery Field tract.
These tracts were all included in the same purchase, and
are covered by the same mortgage, so that the same action
will probably have to be taken in regard to all of them.
34. Lee lands.
Contain the openings of the Eagle Colliery only, but the
gangways of Pine Forest Shaft Colliery run through the
southern portion of the estate, and Wadesville Shaft Col-
57
liery will, after a time, take coal from the veins under¬
lying the Mammoth in the same section. Eagle Colliery
which is in the hands of lessees, has nearly exhausted the
Mammoth Vein coal within the limits of its lease, hut it will
continue for ten years to work the Skidmore Vein, and when
the rougher coals come into the market the Buck Mountain
Vein will also be worked here. Most of the Mammoth Vein
coal on these lands has been worked over once, but so incom¬
pletely (as was the practice twenty years ago) that it will
yet yield largely from the ground once traversed by the work¬
ings of the Hickory and Pine Forest Collieries.
35. The Repp tracts,
Including Bepp and Keim tract, and Repps' heirs tract.
These contiguous tracts being of the same character, will
be described together. They have no collieries on them,
nor do any collieries send their gangways into them.
It is possible that the East Primrose and Diamond Vein
gangways from the Pottsville Shafts Colliery may enter
this territory; but if they do not, it will be many years
before much revenue is derived from it, as the veins though
good lie deep. This late development makes the computed
present value of these tracts very small.
They could well be spared from the Company's estate, as
their coal will not be wanted for twenty or thirty years, but
I do not suppose the owners would consent to the estate being
broken up.
36. The Saw Mill tract.
Contains within its limits the openings of Pine Forest Shaft
Colliery. At this mine the Mammoth and Skidmore Veins
are worked, and are both very good, the latter exceptionally
so. Without further sinking this colliery can ship largely
for ten years. A tunnel must in a few years be driven
southward from t'ne shaft level, which is one lift above the
58
present lowest gangway. It will develop the Holmes and
Primrose Veins, of which the latter is known to contain coal
of very good quality.
37. Oak Hill'tract.
Tliere is no colliery on this tract, but the western gang¬
ways of Beechwood Colliery penetrate it, and will continue
to take coal from it for many years. The Mammoth Vein
and the overlying veins are in fine condition, and when red
ash coals are wanted, the latter can be worked to great ad¬
vantage. The computed value of the property is compara¬
tively low, because the realization of a large revenue will be
delayed for some years.
38. EUmaker tract.
"Within the limits of this tract the openings of Wadesville
Shaft Colliery are located, and the gangways from the northern
end of the tunnels at Pottsville Shafts Colliery will soon open
coal in it. When red ash coal is needed, a large amount can
be taken from this tract, as it contains several red ash veins
of good quality. The large present production of the tract
gives it the high value shown in the tabular statement.
39. Flowery Field tract.
lias no working collieries at present. Wadesville Shaft Col¬
liery takes a large amount of its coal from it, and the gang¬
ways of Pottsville Shafts Colliery will enter it within a few
}mars.
'Assuming, as I do, that the owners of this estate will in¬
sist on keeping it intact, I advise Receivers to retain posses¬
sion of it. The tabular statement shows that it is worth its
encumbrances, and it is part of a large and compact body of
lands, all of which should remain the property of the Com¬
pany.
69
40. West Flowery Field tract.
The revenue of this tract will be derived from the Wades-
ville Shaft Colliery, whose gangways are now ready to cross
its eastern boundary, from the Pottsville Shafts Colliery,
which will enter it from the same side in two or three years,
and from Beechwood Colliery, whose workings will soon pass
its western line.
The coal is excellent, and no money will probably ever be
needed for improvements to develop it, except, perhaps, to
drive some tunnels in the remote future.
41. Mt. Laffee estate.
Beechwood Colliery is the only one on these lands. It is
in good working order, but needs some additional hoisting
machinery to increase the economy of its working. It is not
at present a cheap colliery. The Live Oak and several col¬
lieries on the southern part of the estate having been worked
out at the existing levels, were abandoned some years ago. No
new collieries will be needed,—the coal that will not be
reached by Beechwood, going to Wadesville and Pottsville
Shafts Collieries.
42. The St. Clair tract.
Has no working collieries on it, but the St. Clair shaft,
whose improvements stand within its limits, will long con¬
tinue in use for pumping and ventilating the present or future
workings in the neighborhood. Wadesville Shaft Colliery is
now taking coal from the tract, and the east gangways from
the Pottsville Shafts Colliery will soon enter its limits. No
improvements will be required to be made on these lands,
those on the adjacent properties being sufficient to take all
its coal.
The encumbrance is heavy, but as the loss of the tract
would make a bad break in a part of the Company's property
where it is very important that there should be no alien owner-
60
ship to conflict with the free developement of the mine work¬
ings, I advise Eeceivers to keep the property, securing, if
possible, a reduction in the fixed charges.
43. The Diamond or Williamson tract.
There are no collieries on this property, nor are any likely
to enter it soon. The veins are probably good, but they lie
so far below the surface that it would take a shaft of 600 feet
deep to reach the Primrose Vein, and a long tunnel thence
to reach the Mammoth Vein. This will delay the opening
of the property and the realization of revenue for about
twenty years.
44. The Minersville tract.
Adjoins the last named tract on the westward, and, like it, has
no revenue now, nor can any be anticipated in the near future.
The collieries of the Wolf Creek Diamond Coal Company
worked extensively on the northern part of this tract some
years ago, but they have been abandoned, and are now full
of water.
These two tracts should be considered together, being in
the same range and subject to the same difiiculties in develop¬
ment. The coal though good will cost so much to open
on account of its depth, and the great difliculty of taking
out the water from the very extensive abandoned workings to
the northward, that its development will be much delayed ;
and this postponementof revenue greatly lessens the co.mputed
value of the properties. They are each worth less than the
encumbrances, and unless the owners will consent to a reduc¬
tion of the principal to about three-fourths of its present
amount, or the interest to four per cent., I would advise Re¬
ceivers to let the bondholders take them.
Some town lots have been sold by the Company from the
Minersville Tract, but as the money received for them was
used to retire a corresponding amount of the purchase-money
61
mortgage bonds, the alienation of these lots should not
seriously complicate the question of the return of the prop¬
erty to the bondholders.
45. Coal reserve, Minersville.
The coal under the town of Minersville is likely to be late
of development, and will probably be worked in connection
with the two tracts last naméd. The value of this property
will be somewhat impaired by the fact that the coal cannot
be taken from under some parts of the tract without
endangering the stability of the houses above. The prop¬
erty is paid for, and no question need arise as to the pro¬
priety of retaining it, though it might be sold if the Diamond
and Minersville tracts are surrendered.
46. Hammer and Hoy tract.
This tract is entirely isolated from all other lands of the
Compan}'', and unless the Company should acquire other
tracts contiguous to it, there will be no means of taking its
coal.
The coal is estimated as being late of development; and
the tract has therefore but little present value; but as there
is no incumbrance on it, and as no opportunity of selling it
is probable, it will be best to retain it.
47. Carey and Hart tract.
The situation of this tract is similar to that of the Ham¬
mer and Hoy, No. 46. It probably has plenty of good coal,
but it will remain unworked for a long time.
48. Salem Coal Company.
These lands contain the higher red ash veins and all the
veins below them, but as there is much red ash coal to be
opened at points where the Mammoth is not so deep, and as
there are no improvements on these lauds, their development
62
must be delayed. The old collieries which were worked on
this estate can hardly be reopened, and the property will
have to be opened by a shaft.
The lateness of the probable development diminishes
greatly the present value of these lands, and as they are
overweighted with debt,—there having been no money paid
on them,—I advise Receivers to let the bondholders take
possession of them. '
49. Llewellyn.
50. Hughes and Langton. And
51. Little Klauser tracts.
These contiguous tracts are treated together, though not
covered by the same purchase. They are undeveloped, except
that the east gangway of the Black Mine Colliery on the
Dundas and Stroud lands, extends into the southern part of
the Hughes and Langten tract. They will probably have to
be opened by a shaft, which, however, will not be needed for
many years. They contain the higher red ash veins, so that
the Mammoth Vein will be found at considerable depth, and
there is so much red ash coal in this neighborhood, and the
demand for that grade of anthracite is so light, that a more
rapid development of these properties than that indicated in
Statement G should not be looked for.
I
52. Phœnix Park Lands.
\
The collieries on this estate are the Phœnix Park Collieries
Nos. 2 and 3. The former colliery which works the Prim¬
rose Vein has its product lessened by geological disturbances
which have made the measures faulty, and the coal difficult
to reach. It is proposed to straighten the slope, and to tunnel
to the Mammoth Vein, about one hundred and fifty yards
distant. This will open a large amount of coal. The ma¬
chinery will have to be renewed, and a new breaker built,
63
before this colliery can again be v/orked economically. It is
now, from the smallness of its product, an expensive colliery.
Phœnix Park No. 3, on the Diamond Vein, has the promise
of being a good colliery, when its eastern gangway, by being
extended, gets into a more regular formation. The western
gangway has been in a fault which it has now passed through.
The buildings and machinery are good.
At the old Branchdale Collieries, now abandoned, the
veins were faulty, but as they were the higher red ash veins,
this does not necessarily discredit the lower veins, which
there is reason to hope may be found good.
The eastern gangways of Otto Colliery and the western
gangways of Forrestville Colliery will in time penetrate
these lands, and take from them a large amount of coal.
The new collieries required for the developmertt of this
property will not be costly ones, as they will at first only
need to go down to the red ash veins, which are near the
surface.
53. Andrew Lytle tract.
The Company's interest in this tract was purchased with
the Manhattan lands. Its revenue is derived from the
workings of Forestville Colliery, the collieifies whose open¬
ings are located on the tract being all abandoned.
Diamond Colliery, which was worked until within a few
years contains some coal, but the buildings wete burned
and the colliery flooded, and it will not at present pay to re¬
open it.
54. Manhattan Lands.
Of this large body of lands a little more than one-half is
underlaid with coal. On that part of the property which
lies north of the Mine Hill, the Thomaston and Glendower
Collieries are the only ones now in operation.
64
Thomaston Colliery works the Mammoth Vein, which is
here divided into three parts, and the Church or Holmes
Vein. The coal is good, and the colliery is in good order,
and will not require much expenditure for several years.
Glendower Colliery will work all the coal in the Heckscher-
ville basin, west of the Catharine Groh tract, for a mile or
more. It will produce a large amount of coal without fur¬
ther expenditure for improvements, but the cost of the coal
is rather above the average.
Taylorsville Colliery—nearly opposite—is abandoned, and
is full of water. Most of the machinery and the buildings
have been removed, and as the coal will be reached from
Glendower Colliery it is not expected that Taylorsville will
again be worked.
O ,
Anchor Colliery has been flooded for several years, a fire in
the upper levels having proved unmanageable by other
means. This is a serious matter, as all the workings on the
south dip of the Heckscherville basin are connected for a
distance of five miles east of the Catharine Groh tract, and
flooding the Anchor Colliery has drowned the Pine Knot
Collieries to the eastward ; nor can the fire be extinguished
except at great cost.
South of the Mine Hill the only collieries in working
condition on this estate are Forestville, Otto, and Pyne.
Forestville Colliery is not working at present, the coal which
is from the Skid more Vein being rough, difficult to prepare,
and not in demand. The colliery costs very little when
standing idle, and can start at any time without expense.
Otto Colliery.—The red ash veins which have been the
principal producing veins at this colliery for some years are
exhausted down to the third lift below water level, but the
northern basin has been lately opened by a tunnel which de¬
velops a large amount of coal. There is, however, a great
65
deal of water standing in the old workings, which must he
taken out before much mining can be done in this new locality;
but, this done, there will be coal enough accessible to keep up
the colliery's production for a number of years.
Pyne Colliery.—This colliery will for several years get its
supply of coal from the old level, so that the cost of sinking
may be postponed. When it becomes necessary to sink, new
machinery will be needed, but the old machinery and build¬
ings are sufficient for the present needs,
Of the other collieries which have at times worked on
these lands, there is none now in working order, and none at
which working is likely to be resumed in the near future.
The small production of this great body of lands (not more
than two medium collieries should produce), and the delay in
its probable development, with its comparatively large amount
of timber lands of small value, combine to reduce the value
of this property much below its original cost. There is,
however, no debt remaining on it.
55. Gettle and Wagner Estate.
This property contains only Mine Hill Gap and Ellsworth
Collieries, the latter being in the hands of lessees. The two
Pine Knot Collieries were abandoned in 1876, partly because
the veins are not in first rate condition, but mainly because
the fire at Anchor Colliery, to the westward, on the Manhattan
lands, made the working of the Pine Knot Collieries danger¬
ous, the three collieries being all connected. There will be
no additional collieries opened on these lands, nor can the
Pine Knot Collieries be opened till some means is found of
controlling or extingttishing the fire at Anchor Colliery.
The veins on this property are in good condition from the
Holmes down to the Mammoth, and some of those underly¬
ing the Mammoth will probably be found workable.
5
66
Eepplier's Colliery has been abandoned and flooded for
about ten years. There is still a large quantity of coal
there, but the colliery was so costly on account of the difñ-
culty of keeping the gangways open, that it entailed- heavy
losses on Mr. Repplier, the lessee.
Mine Hill Gap Colliery is in fair working order, but it is,
and is likely to remain, an expensive colliery, the cost of re-
timbering and pumping being large.
The machinery and buildings at "West Pine Knot Col¬
liery are in good condition, but heavier hoisting machinery
will be needed before the colliery resumes operations.
At East Pine Knot Colliery the machinery is partially
removed, it being probable that this colliery will not again
be worked.
66. James Laing tract.
This tract contains principally the veins underlying the
Mammoth. It will be worked from West Pine Knot Col¬
liery, and will probably require no additional improvements.
57. Catharine Groh tract.
On this tract are located the improvements of the Eich-
ardson Colliery, which gets much of its coal from within its
boundaries; and the west gangways from Thomaston Col¬
liery will also take from it a part of their shipment. The
coal is in good condition, and the improvements at Eichardson
Colliery are also good, but the coal in the Church or Holmes
Vein is approaching exhaustion, and the property cannot do
more than maintain its present revenue.
The property is greatly overweighted with debt, and as
there is no likelihood that in any event its coal tonnage
would pass over other railroads, and as this tract does not
form an important connection between other parts of the
Company's property, I advise Eeceivers to insist on a reduc-
67
tion of the encumbrances to $300,000, and failing in this, to
surrender the property.
58. Beed,
59. Little Schall,
60. Hartman and Myer, and
61. Big Schall tracts.
These lands being covered by one ownership, are treated
together. The three first are in the western end of the
Heckscherville Basin. There are no colliery openings on
them, but the Glendower Colliery takes coal from them. It
is probable that all the coal may be taken from this colliery,
so that no further openings will be required. They contain
no workable vein above the Holmes, but the Holmes and the
lower veins are in good condition.
The Big Schall tract lies in the next basin to the south¬
ward, and is not now productive. The coal is probably good,
but will be late in development, which diminishes the present
valuation.
Taken as one body, the.se lands are estimated to be worth
much more than the encumbrances ; and of the separate
tracts, the Big Schall is the only one that is not worth the
remaining debt. As the property must probably be held or
parted with in one body, I advise Eeceivers to keep it.
62. Gunkel and Branham tract.
There are no working collieries on this property, and those
which were opened some years ago did not prove the veins
in good condition. There are no collieries at all in this
vicinity now, and there is no likelihood that any will be
• opened for some years to come.
The tract was originally well timbered, but most of it has
been cut off since the Company held the land, and what re¬
mains is of little value.
68
On account of the doubtful character of the coal, and the
delay in realizing revenue from the property, the computed
valuation is but little more than half the debt; and, as it is
entirely isolated from any other portion of the Company's
property, and of so little intrinsic value, and as so little of the
purchase money was paid, I advise Eeceivers to let the bond¬
holders take possession of it.
63. The Swatara lands.
Contain no collieries in working order hut Lower Kausch
Creek and Lincoln. These aré both in the hands of lessees,
the leases expiring in January, 1884; they are both pro¬
ducing largely, and Lincoln Colliery is likely to continue to
do so for some years. Lower Rausch Creek Colliery has
reached a considerable depth, and it may prove diiScult to
continue the slope much further. This colliery works the
Mammoth Vein, and Lincoln Collie.ry mines from the Lykens
Valley Veins, which are here increased in number to four,
with an aggregate thickness of thirty feet of workable coal;
this being the greatest thickness that these veins are any¬
where known to contain.
The west gangways of Middle Creek Shaft Colliery will,
in time, penetrate this territory and increase its revenue.
jEekert Colliery is worked out at the present levels, the
improvements have been removed and the mine flooded. It
will not be opened again, but its coal will be taken to some
other colliery. The future development of the property will
be expensive, as the veins on much of the property lie deep.
64. Francis Spaetzer tract.
The western gangways of Lower Rausch Creek Colliery
pass through this tract, but the Mammoth Vein is about
exhausted, and .the tract will be without revenue till the
underlying veins are opened.
/
69
65. John Myer tract, and
66. Henry Houtz tract.
On this body of lands the East Franklin is the only work¬
ing colliery. It works the Mammoth Vein, which is here
much disturbed by faults. The colliery is in fair working
order, but as it has never been able to make a large yield it
has always been rather expensive. Another colliery will
probably be needed on the underlying veins, the opening of
which will require a shaft about 400 feet deep.
67. Alexander Klinger tract.
No collieries now take, or will take in the near future coal
from this tract. When the workings of Colket Colliery shall
reach the bottom of the basin, or when a tunnel shall be driven
from the south dip across to the north dip, this tract will
commence to have a revenue.
68. Philip Kuntzleman tract.
The remarks just made about the Alexander Klinger
tract apply to this one. The late development brings down
the valuation in both cases.
69. Eckert, Forbes, and Delano lands.
These lands have never yielded any coal except a little
taken by the westward extension of the Eckert Colliery gang¬
ways. There is reason to believe that they contain good
coal, but it cannot be largely worked for some years.
70. Leonard Illig tract, and
71. Peter Levengood tract.
These tracts lie within the limits of the Eckert, Forbes,
and Delano lands, are in the same range as the Alexander
Klinger and Philip Kuntzleman tracts. Nos. 67 and 68, and
to them apply the same general remarks as were made con¬
cerning the two last named.
70
These properties, Nos. 64 to 71, were to a considerable
extent bought from the same owners, and are covered by the
same mortgage. They are valued at about five per cent, less
than their cost, but about that much higher than the re¬
maining encumbrances.
72. Munson and Williams lands.
The East and West Brookside Collieries are on this prop¬
erty. The former is abandoned for the present on account
of some difficulties in mining the coal, the bottom slate heav¬
ing and making it very difficult to keep gangways and air¬
ways in repair, and very hard also to prepare the coal
properly. The machinery has been removed, but the slope
is in good condition, and the colliery will probably be re¬
opened.
Schmoeles Broad Mountain Colliery was opened on the
eastern end of the property on the Mammoth Vein, but the
vein was in fault, and the place has been abandoned, and
nothing remains but the slope.
West Brookside Colliery is the most valuable one owned by
the Company. It shipped over four hundred thousand tons
last year. Its product cost less per ton, and sold for much
more than that of any other of the Company's collieries.
The property is very incompletely opened, and it is not
likely to be developed fast enough to increase the revenue
rapidly. The estate has been valued on the same basis of
profit per ton as all the other property of the Company.
While this rate of thirty cents per ton is high enough in the
average, the Munson and Williams lands might fairly be
credited with more. This would bring the valuation nearer
the price paid, but it is already high enough to more than
cover the remaining encumbrance.
73. Joseph Keffer tract.
This tract contains only the lower veins. They will be
71
worked tkrough the eastern gangways of Lincoln Colliery,
and will require no new openings within the limits of the
tract.
74. Fishing Creek lands.
The Kalmia Colliery \a the only one situated on this estate-
It works the Lykens Valley Vein near its northern outcrop.
The colliery is a profitable one to the lessees, though there
is a good deal of irregularity and fault in the vein. The
estate probably contains a basin of the Mammoth Vein, but
it will be many years before it is opened so as to produce
much coal. The computed value of the property is just
equal to the encumbrance, which should, if possible, be re¬
duced.
75. 'Schuylkill and Susquehanna lands.
This large property has only about one-quarter of its area
within the coal measures. The developments which have
been made are not such as to lead to an early opening of
mines within its limits ; the experiments of working collieries
having resulted thus far in failure.
It has a large quantity of valuable timber, from which the
estate derives most of its value. The property is without
debt.
II. Tracts which the Company controls through ownership of
the stock.
76. Fulton lands.
The Excelsior and Enterprise Collieries, both of which are
in the hands of lessees, are the only working collieries on this
property. They are both on the Mammoth Vein, which is
in good condition, and the collieries will for some years to
come ship on a large scale.
Margie Franklin and Emory Collieries have been aban¬
doned for several years, the veins on which they were opened
being faulty.
The eastern gangways of the Greenback Colliery will prob¬
ably soon enter these lands on the westward.
77. Locust Gap Improvement Company's lands.
The Monitor Colliery, which is in the hands of lessees, is the
only one on these lands ; but the Locust Gap and Locust
Spring Collieries, on the westward, and Merriam Colliery, on
the eastward, will get a large part of their tonnage from them.
There is a lar^e amount of coal untouched on the southern
O
part of the property, which will be opened from a slope on
the next tract to the westward, so that no more openings will
be required on this estate.
78. Preston Coal and Improvement Company's lands.
These lands contain Preston Collieries Nos. 1, 2, and 3.
Preston Colliery, No. 1, is a red ash colliery. The slope was
temporarily abandoned in 1877, the vein being in fault; but
there is no reason to doubt that when this class of coal shall
be required, the fault can be easily penetrated. The build¬
ings and machinery are in fair order, but are not likely to be
used soon again.
Preston No. '2 Colliery works the Holmes, Mammoth, and
Buck Mountain Veins, all in good condition, though the
Holmes Vein has a bad slate top, which falls among the coal,
and makes it difScult to clean. The buildings and machinery
are good, and the colliery is a moderately cheap one.
Preston No. S Colliery works only the Mammoth Vein,
which is in fine condition. The colliery is in good order, and
should work cheaply.
More than one-third of the area of this tract is outside
the coal measures. This helps to lower the valuation, which
73
is only about two-tbirds of the encumbrances ; but as the out¬
standing bonds are held by the Philadelphia and Reading
Railroad Company, there can be no question of the propriety
of retaining the lands.
79. Mammoth Vein Coal and Iron Company's lands.
This property contains the east shaft of Pottsville Shafts
Colliery, which is sunk to the Primrose Vein. The geologi¬
cal structure here is extraordinarily disturbed, and much
time and money have been expended in endeavoring to reach
a locality where the veins are in their normal condition. It
is hoped that this end is about being attained ; and if so, the
colliery will be able to ship largely for many years. There
will, however, be a new breaker needed, and additional
machinery at the west shaft, before a large product can be
reached. The low valuation is caused by the fact that the
product of the Pottsville Shafts Colliery for the next twenty
years will not come from this tract, but from the next prop¬
erty on the north.
The encumbrances on these lands are beyond the estimated
value of the property, but as the debt is held by the Phila¬
delphia and Reading Railroad Company, and as so much
money has been expended in improvements, the lands should
be retained.
80. Delaware Coal Company's Lands.
These lands contain the west shaft of the Pottsville Shafts
Colliery. The remarks as to development and cost made
about the Mammoth Vein Coal and Iron Company's lands,
are applicable here.
81. Tremoni Coal Company's Estate.
This estate contains the Middle Creek Shaft Colliery and
the Colket Colliery.
74
The former colliery has thus far had an unsuccessful his¬
tory, the veins being faulty. It is now standing full of water.
Colket Colliery is working the Mammoth, Holmes, and Prim¬
rose Veins, all of-which are in good coal. The buildings and
machinery are good, and when the yield shall reach the
full capacity of the colliery,, it should be cheaply worked.
There is a fire on the east side of the Mammoth Vein which
has interfered with its production, but it is now probably
under control.
West End Colliery is standing full of water. It will
not again be opened until the time shall come to tunnel to
the Lykens Valley Veins, which are in good condition. The
buildings and machinery are in fair order, but the pumps
have been removed.
Collieries on alien lands.
These collieries are Conner, Hammond, Girard, North
Ashland, Gilberton, Furnace,' Turkey Run, West Shenan¬
doah, and Girard Mammoth, the first four being on lands
belonging to the City of Philadelphia, the ne.vt four on the
Gilbert lands, and the last on lands belonging to the Girard
heirs. They all lie near the centre of the Mahanoy district.
Conner Colliery works the Buck Mountain Vein, which is
here in fine condition. It is still working above water level,
and will continue to do so for several years. It is therefore
a cheap colliery, and the machinery and buildings, though
old, do their work well.
Hammond Colliery works the Mammoth Vein at its first
lift below water level, and the Holmes Vein, which are both
good, though there is a good deal of refuse in the latter vein.
The colliery is in good condition, and works cheaply.
Girard Colliery works the southern basin of the Mammoth
Vein. This will continue to produce for three or four years,
75
but the principal supply for the future must come from the
underlying veins.
There is a great deal of water to pump, but the colliery
nevertheless works cheaply. The coal is fine, and the col¬
liery generally is in good order.
North Ashland Colliery works the Mammoth Vein. It
ships largely and works cheaply. The breaker is rather too
small to handle the coal that the colliery can produce, so that
the production is somewhat limited, except when the largest
sizes of coal are in good demand. The Bupk Mountain Vein
is in unusually fine condition, and will when tunnelled to at
the present level yield largely. The machinery and build¬
ings are good.
All of these collieries are valuable property. The coal is
choice and cheaply mined, and the royalty is moderate. The
leases can no doubt be renewed on favorable terms, as the
policy of the City of Philadelphia is to lease all the collieries
on its lands to strong tenants.
Gilberton Colliery is not at present in producing condition.
The Mammoth Vein at the present lift, which is the second
below water level, has been entirely exhausted. A tunnel
was driven to the first overlying vein—the Holmes—but it
was found in bad condition, and it is doubtful whether any
of the overlying veins at this level can be worked, because
the mining on the Mammoth Vein has cracked the rocks
above it. As the outcrops of the overlying veins are in the
swamp bordering an Mabanoy Creek, any attempt to work
them will greatly increase the quantity of water to be
pumped, which is now very large. A tunnel to the Buck
Mountain Vein has cut it where it is in fault, but this may
be merely a local disturbance.
From present appearances this colliery will not again be
profitable till a new lift is sunk on the Mammoth Vein,
76
which would take a year, and would require heavier hoisting
and pumping machinery. The breaker is good. There is
a yearly royalty charge of |18,000 on this property, whether
any coal is shipped or not, which, in its present unproductive
condition, is an added weight to be carried. On the whole,
the colliery is likely to be unprofitable, and the lease should
be surrendered if it can be given up without parting with
the other collieries on these lands.
Furnace Colliery works the Buck Mountain Vein, which
yields here a rough coal that does not sell freely. It will
last but two or three years longer, as the Gilberton Colliery
will take the coal from the lower levels of this vein. The
breaker is a poor one, but will work out the tributary coal.
The colliery runs cheaply, but the coal is not a choice one.
Its shipments are small, and will so continue.
Turkey Run Colliery is a good colliery, working the Mam¬
moth Vein. The coal is good, and the colliery is a cheap
one with a large production, and will need no further ex¬
penditure for sinking for some years. The buildings and
machinery are good.
West Shenandoah Colliery works the Buck Mountain,
Seven Feet, and Mammoth Veins. It produces cheaply,
the buildings and machinery are good, and there will be no
further cost for improvements, except for pumping machinery,
in the near future. The coal is good, and the production is
large.
Taken all together these leases on the Gilbert lands are
O
valuable to the Company, the royalties are moderate, and
the coals good and cheaply mined, except at Gilberton. If
the leases must all be held, or all given up, they should be
held, but Gilberton by itself is an undesirable possession.
Girard Mammoth Colliery works the Buck Mountain
Vein, which is in good condition. At the present level
77
Ihere is but a small daily product possible, and the level
will not last more than a year or two without sinking.
There is, however, on the western end of the tract, a good
deal of Buck Mountain Vein and Mammoth Vein coal re¬
maining. It will require considerable time and money to
develop these veins and to repair the breaker, but when this
IS done, the colliery should work cheaply for several years.
It is doubtful, however, whether the coal remaining will
justify the cost of the improvements, unless the Cuyler Col¬
liery, adjoining, should be worked with it, in which case the
lease should be valuable. An agreement has been made
with the landowners by which, at the expiration of the pres¬
ent lease, about four years hence, the Cuyler Colliery will
come into the Company's possession.
On the whole, taking into consideration the royalties paid,
the colleries on the city lands produced coal in the year 1879
at a cost slightly in excess of the average cost of all the Com¬
pany's coal, and the coal from those on the Gilbert lands cost
about five cents above the average, so that the gain to the
Company from these leased collieries, was that their own coal
was, to the extent of the production of these colleries, 767,305
tons, left in the ground, and that this tonnage was kept out
of the hands of rival mining and transporting companies.
However, as the Lehigh Valley Kailroad interest, which is
the only one likely to compete for the possession of these
collieries, had all the coal that it could sell, it is doubtful
whether this policy worked to the injury of that interest
last year.
The Girard Mammoth Colliery came into the Company's
possession this year, so that its production and cost of coal
are not included in last year's statements.
Loeust Run Colliery was one of the Company's collieries
on alien lands, and the cost of the improvements appears
with those of the other collieries; but the lease has expired.
78
and the improvements have been exchanged with the land¬
holders for a corresponding valne of colliery equipments.
These equipments will appear in the appraisers' estimate of
personal property, and thereforè I have placed no value on
the improvements at Locust Run Colliery.
To sum up the recommendations of this part of my report,
I advise Receivers to make the following changes in the
Company's estate. In doing this I shall of course make no
suggestions as to the exact course to be followed to secure
these modifications. I consider them very desirable, but the
steps to be taken do not fall within the province of this re¬
port :
I. Surrender to the bondholders the tract named in State¬
ment I, unless the modifications proposed in the detailed re¬
ports shall be accepted by them.
Statement I.—Tracts which should be surrendered, unless the
bondholders will consent to better terms.
No.
Tract Name.
Valuation.
■ Cost.
Cash paid.
Encum-
bruuces.
Coal product
tons.
n
^83,516
1,388,797
39,973
837,550
21,050
111,096
82,047
327,604
86862
$654,000 00
2,234,042 31
69,158 75
1,298,085 99
26,870 94
134,529 72
150,000 00
475,000 00
165,479 37
$31,000 00
138,042 31
158 75
3,085 99
870 94
1,470 28
$623,000
2,096,000
69,000
1,295,000
26,000
136,000
150,000
455.000
165,000
12,044,000
68,110,000
1,194,000
53,978,000
2,425,000
12,490,000
36,612,000
4,464,00(1
25,350,OGO
94.
25...
27...
43...
44...
48...
57...
62...
Coal Hill
Salem Coal Company...
20,000 00
479 37
Gunkel & Branliam
53,278,495
$5,207,167 08
$192.167 08
$5,015,000
216,667,000
II. Make special efforts to obtain better terms in the cases
mentioned below, being cases where the encumbrances nearly
79
or quite equal the valuation, but where it is not desirable to
part with the property :
No. 12. Mount Carmel Locust Mountain Tract.
No. 42. St. Clair Tract.
Nos. 64 to 71. Eckert, Forbes, and Delano lands, and the
lands connected therewith.
No. 74. Fishing Creek lands.
III. Insist on a reduction of the interest on the purchase
money mortgages in all cases to as low a rate as six per cent.
If this can be done in no other way, the present bonds may be
paid off, and other bonds bearing six per cent, interest substi¬
tuted as fast as the Company's improved financial condition
shall make such a change possible.
If all the property named in Statement I,—the incumbrances
on which amount to $5,015,000,—should be surrendered to
the bondholders, the Company would lose only the small
amount paid on account of the purchase money, amounting to
$192,167.08, which is about as much as seven mouths interest,
and the annual saving of interest would amount to over
$350,000. The money already paid for interest and taxes is
gone, whether the property be retained or surrendered.
As these lands are, except the Catharine Groh tract, en¬
tirely undeveloped, they cannot, if they should at once fall
into the hands of rival companies, produce much co.al for
several years. Meanwhile the Company could be developing
other parts of the estate, and could increase the product from
the lands that would remain, as rapidly as it can be increased
from the whole estate, the limit being in the demand, and not
in the possibility of production. It will be many years before
the estate, as diminished, can be brought up to its full pro¬
ductive capacity, and in those years there will, no doubt, be
80
other opportunities of buying coal lands. The proposed sur¬
render of property would diminish the Company's interest in
the estate nineteen per cent., and its indebtedness to parties
other than the Railroad Company, thirty-eight per cent. It
is not, however, likely that the whole of either of these reduc¬
tions will be made, as some of the owners will doubtless prefer
to make better terms for the Company, rather than take back
their lands. Should, however, the whole or any part of the
tracts named in Statement I be surrendered, a recomputation
would show that the increased production of the remainder
of the estate would so increase the revenue, that what would
remain would be nearly as valuable as the whole now is.
But little weight should be given to the fear that rivals
will possess the surrendered property. Most of it is not a
tempting investment. If individuals develop it, the Phila¬
delphia and Reading Railroad has a better chance than any
other road to take the tonnage. But I will go further, and
say that I think the policy of attempting to monopolize
anthracite is a mistaken one. It was a necessary and, there¬
fore, a wise step, that was taken by the Company when it
bought coal lands to secure tonnage for the railroad, but when
O o '
this policy is pushed much further, and the attempt is made
to buy up all lands that might serve a rival interest, it does
not prevent that interest from mining and selling coal, but
simply drives it away from the Schuylkill Region, in whose
general prosperity the Company is interested, and so aids in
the development of some other region which is in no way
tributary to the Company's interest. Twenty or thirty years
hence there may be some opportunity to monopolize anthra¬
cite lands, but the present policy should be to surrender the
lands in question, and having retained coal enough to last
for one hundred yeai's, trust to future opportunities to acquire
what may hereafter be needed.
As to the question of the best manner of working the
81
property in the future, I advise that the Company continue
to mine its own coal. It might succeed in leasing a number
of the best and cheapest collieries ; but there are many for
which no responsible tenant can be found, and these the
Company would have to work at a loss. None of the collieries,
exoept a few of the best, would prove steadily remunerative
to the lessees, and they would mostly be thrown, one by one,
on the Company's hands, in the same wretched condition as
they were when the Company first acquired them. Mining
in the Schuylkill region, in most cases, has become too ex¬
pensive for individual operators, and ten years of a policy of
leasing would again find Schuylkill coal discredited by its
bad preparation, collieries ruined, the labor question again a
threatening one (for the same causes would bring the same
results), the market passed into the hands of rivals, and gen¬
erally the work that has cost so much time, money, and
some valuable lives to accomplish, all to be begun again.
The Company's mines are now, and have been for five
years, worked more intelligently and more economically
than they could be under a system of leases ; and I think
that a resumption of that system would be a long step back¬
ward, and no wiser than it would have been, two years ago,
when the country had incurred all the cost of getting back
to specie payments, to return again to the inflated currency
that had worked so much mischief.
A continuance of the present system of mining, with the
use of all the economy that is possible and wise, conservative
action in harmony with other interests to keep selling prices
at a remunerative point, and an inflexible refraining from
attempts to push coal into the market faster than responsible
buyers at full prices can be found for it, are the elements of
a policy that will (in the words of your instructions as to
the questions on which I should report) " produce the greatest
6
82
revenue consistent with the future safety and productiveness
of the property."
I may be permitted, in closing to say that in all the in¬
vestigations which have formed the basis of this report, I
have had the heartiest co-operation and assistance from all
the officers of the Company with whom I have come in con¬
tact, and that their help has greatly aided me in my work.
Yours, respectfully,
JOSEPH S. HAREIS.
PoTTSViLLE, Pa., July 31, 1880.
APPENDIX.
C.—Statement showing the shipments of Anthracite in Pennsylvania, vñth
the demand and the rate of growth of demand.
Note :—All statements of tonnage are in thousands of tons.
Total Anthracite Field.
Five Year.
« _
i
c e'
■s|i
. p.
363 ...
488:+,
377I
561' ,
684!+,
869'
739:—,
818^ +
8641 +
, 960! +
' l,108i +
' 1,264;+,
I 1,631! +
2,013'+.
, 2,344'+,
' 2,882!+,
' 3,089 +.
3,243 +,
] 3,359,+.
I 4,449'+.
I 4,9931+,
! 5,195!+,
i 6,002
I 6,609, ,
i 6,92RI+,
i 6,645'
I 6,839
I 7.808
I 8,513
I 7,954
1 7,869—,
1 9,566; +
10,177! +
i 9,652:—
12.704 +
112,989!
13,801
13,886 +
16,182+.
15,709.—.
19,670,+,
21,263 +,
20,1791—
19,725—.
18,536 —,
20,8481
17,605|—
2G,143|
23,800
24,800
25,800
bo
S)
bO
2,473
2,979
3,230
3,671
3,074
4,250
4,489
5,014
5,827
6,976
8,360
.23 10,134 2^027 +
.16 11,959 2,392 +
.231 13,571
.07 14,917 2,983 +
.05 17,022 3,404 +
.04 19,133 3,827 +
.32 21.239 4,248 +
schutlkill kegion.
Five Year.
:::!:
495...
596 +
646 +
734 +
795
850 +
898
1,003 +,
1,165 +
1,395
1,672 +
2,714
.12. 23,998 4,799 +
.04 27,248! 5,449 +
.15' 29,727. 5,945 +
.10 31,379! 6,276 +
.05' 33.0231 6,605 +
.04' 34,829. 6,966 +
.03' 36,7331 7,347; +
.14' 37,759; 7,552 +
.09 38,983! 7,797 +
.07' 41,7101 8,342 +
.01 44,079! 8,816
.22 45,218i 9,044
.06' 49,068! 9,994
.05 55,088:11,018 ,
.32 59,323;il,865 +
.02 63,032112.606 +
.06 69 56213,912 +
,01. 72,567114,513 +
.16 79,248¡15 849 +
-.03 86,710117,342 +
.251 93,003,18,601 +
,08 96,546 19,309
.05 99,373'19,876
.02 I00,55ll20,110
.06 96,89319,379
-.12102,857120,571 .
■.16106.932!21,386! +
-.48 113.196 22,639 +
-.09118,148123,630; +
-.04 1... '
.04 1...
209
2531...
227 1
340, 1:
432' 1,
530
447
475
491
624
, 583
710
■ 888
1,132
1,308 6
1,666 7.
1,734 8
1,728 9
1,841 10
2,329 11
2,637 12
2,665 14
3,192 15
3,553 je!
3,603 16
3,374 17
3,273 17
3,449 \7[
3,75017
3.161 17
3,373 18
3,91218!
4.162 21
4,357 23
5,788 24
5,162 26!
5,331 27
5,775 27
4,968 29
6,553 31
6,695 32
7,213 33
6,867 33
6,282 34,
6,222 33.
8,195 35!
6,282 37,
8,960 39.
7,800 39^
8,300 ..
8,600|.,
Lehigh Begion.
Five Year.
2 o I
o c3 1 .2
.<« SI 'S
292 ....
356 +.
3951+.
4451+,
475]+,
613 +
524 +.
577 +
6591 +
787: +
924! +
,704 1,141 +.
,728:1,345; +
,568:1,.514 +
,27711,6.55.+
,298 !l 859 +,
,269'2,054 +
,200 2,240 +
,664 2,533 +
,S76¡2,875 +
,6r)0!3,130 +
,387|3,277 +
,995 3.399 +
,25213,450 +.
,449'3,490 +
,007 3,401 —
,006,3,401 +
,645l3,529 +
,358¡3,672' +
,965,3,793 +
,592 4,318 +
,381 4,676 +
,800i4,960' +.
,413 5,283'+.
,024'5,405i +
.78915,558 +
,32215,864' +
,20416,241 +,
,296i6.459 +
,610!6,722 +
,279 6,656 —,
1,77916,956 +
8486,770—
•,941 7,188 +
■,459 7,492 +
,537 7,907! +
,942:7,988;+.
70
123
106
131
148
224
l!
578
732
823
938
214| 1,032
221; 1,027
225! 1,076
143! 1+30
2731 1,286
268! 1,490
I 3771 1,864
1 429' 2,225
! 517, 2,627
I 634 3,032
' 670 8,293
I 782 3,740
I 600. 4,178
' 964 4,562
1,072 4,987
1,054 5,581
1,207 6,969
1,284 6,216
1,352. 6,542
1,319 6,963
1,380 7,501
1,628 7,887
1,822 7,919
1,738 8,434
1,351 8,861
1,895 9,080
2,055: 9,521
2,041 10,672
2,179 11,280
2.502 11,175
2.503 12,373
1,95012,430
3,239 13,801
2.236 15.004
3,873 16,828
3,70616,424
3,774 18.043
2,835 18,503
3,855 18,034
4.333 18,856
3.237 20,271
4,596 20,766
4,250 20,783
4,350
4,350;
116
146
165'.+
188: +
206 +
205
215 +
226 +
257
298 +
373
445
525 +
606
659
748 +
836 -t-
912 +
097 +
1,116 +
1,194
1,243 +
1,308 ,
1,393 +
1,500 -r
1,577 -f
1,584 -r
1,687 4
1,772 +
1,316 .
1,904 +
2,134 .
2j256 +_
2,235 —.
2,475
2,486
2,760 .
3,001 +
3 366
3,285
3,609 +
3,701
3,607 —,
3.771 +
;4,054 +.
'4,153 +,
14,157 +.
Wtommíg Begion.
Five Tear.
84
112'
44!
90'
104;
115
78
122
148
434
465
431
509
567
655
703
i
-.01
.11
,00
.11
.09
.12
.02 10;
.10 9,
,02 10,
•.02 8
,04 s;
,07 8,
,02 12,
,00 11,
.... 12,
.... 12:
192 1,001
253' 1,245|
286 1,549
366 1,875;
452 2,205;
518 2,604!
583 2,971
685 3,347
733 3,985-
828 4,686'
,156 5,477 1.
,284 6,347 1-
,476 7.291 1.
,603 8,108 1.
,772 8,777 1,
,973 9.487' 1.
,953 10,615 2.
,186 11,785 2.
, '31 12,867 2.
,94214,060 2.
,055 15.634 3,
,146 16,864 3.
,76017,177 Z.
,961 18,859 3!
,255 21.038 4!
,737 23,246 4.
,325 25,426 5.
,968 30,146 ei
,14132,329 6.
,975 36,106 7.
,920 40,483 8.
,102 43,880 8.
,345 46,514 9!
,538 48,053 9.
,609 47,271 9!
,459 45,032 9.
,320 48,060 9.
,086 49,201 9;
,586 52,892 lo!
,750 57,422 11,
,150 ! -
,850 1
871
93:+.07
86 — 07
102 +.19
113 +.11
131 +.16
159 +.21
200 +.26
249 +.24
310 -I-.24
3T5 +.21
441 +.18
621 +.18
694 :¡;.i4
669 +.13
797 +.19
937 +.18
,096
,269 í:í¡
Xl5
-1-11
i697 +.08
.123 +.12
-'SI 4-.11
+ .09
+ .09
.1^' +'.n
.373 + 08
.435 +I02
.772 +'.ic
.208 +.12
.649 + .10
,085 + .09
,029 + .]9
.466 + .07
,221 12
.097 +.12
.776 +.08
|303 +.06
.611 +.03
,454 —.02
.002 —.05
.612 +.07
,840 +.02
.678 +.07
,484 +.09
il
JOSEPH S. HAEEIS.
/
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^ , líRXüOx"^
0E'. or
Frbvortox Juxcy
^LETSHköY
l+ÄlAHAXOY
'í-
'ip'
^efmnce.
Pennsylvania Railroad Co.,
Lehigh Valley Railroad Co.,
Central Railroad Co. of J^ew Jersey, .
Proposed Union Central Railroad,
Boundary Line of South^ern and Middle Coal Fields, . .
OF THE
OF THE
PBIMBlIiFHIA
/^UUKB
AJuistctioît
WILLIAM LORENZ,
Chief Engineer.
1
IPiXE GHOVK
iSciik P^MUcs fo 1 Inch,
Diagram to illustrate the Rate of Increase of the Demand for Anthracite
in the United States.
Scales of Increase: Horizontal Scale^ Base =
fottsviUe, Pa., July 31, 1880.
10 Inches / Vertical Scale^ 1 per Cent. = ^/lo Inch.
JOSEPH S. HARRIS
G.
s
ESTIMATE OF TÍE VALUE OF THE COAL ESTATE OF THE PHILADELPHIA & READ '^G COAL AND IRON COMPANY.
I.—TRACTS IN WHICH THE COMPANY HAS AN UNDIVIDED OWNERSHIP OF TB LANDS.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
NAME or TEAOT.
ESTIMATE or THE GOAL EEODUff OE THE ESTATE.
ALL VEINS.
Acres.
Trevorton Estate
Associate Lands
Shamokin & Bear Valley
M. E. Leversen
W. M. Rockafeller
Big Mountain
Brady, Gray & Wetherill
Mcjntyre
William Sheed
Samuel Morgan
Mt. Carmel Coal & Iron Co....
Mt. Carmel Locust Mountain..
Helfenstein
Locust Mt. Summit Impt. Co..
Locust Dale
Ashland Estate
Fountain Spring
Neoho Allen
Locust Mountain
William Jones
Philadelphia & Mahauoy
James AIcNeal
Kear & Patterson
Tamaqua Lands
Tons per
Acre.
1,676
Coal Hill
Wood & Abbot..
Valley Furnace.
Glentworth
Eagle Hill
Mary Patterson.
Lewis Tract
Kavensdale
Dilcamp
400
1,316
186
180
Lee Lands...
Rep Tracts.
Saw Mill
Oak Hill
Ellmaker
Flowery Field
West Flowery Field
Mt. Laffee
St. Clair
Diamond
Minersville
Coal Reserve (Minersville)
Hammer & Hoy
Carey & Hart..
HQIotv» Cnal Crk
107
128
48
500
Llewellyn.
Hughes & Langten.
Little Klauser
Phœnix Park.
Andrew Lytle.
Manhattan
156
94
20
104
96
156
97
490
22
60
205
1,3.56
182
178
1,948
' 180
904
Gettle & Wagner
James Laing....
Catharine Groh
Reed
Little Schall
Hartman & Myer....
Big Schall
Gunkel & Branham.,
Swatara Lands.
Francis Spaetzer
John Myer
Henry Houtz
Alexander Klinger.
Philip Kuntzleman.
1,014
1,552
Eckert, Forbes & Delano.,
Leonard lllig
Peter Levengood
Munson & Williams
140
58
166
59
868
286
252
460
Joseph Keffer
Fishing Creek
Schuylkill & Susquehanna.
Total of 1 15,072
30,000
26,000
28,000
28,000
28,000
25,000
25,000
25,000
25,000
25,000
25,000
25,000
25,000
25,000
25,000
25,000
25,000
25,000
22,000
27,000
27,000
27,000
27,000
27,000
22,000
22,000
24,000
25,000
27,000
27,000
27,000
25,000
25,000
25,000
25,000
25,000
25,000
MAMMOTH
And Lower Veins.
Acres,
1,024
1,824
1,212
891
68
992
627
1,060
177
84
1,020
132
856
447
568
1,562
82
162
1,549
388
164
810
48
117
558
170
131
44
80
6
28
104
10
181
13
110
16
875
108
1,813
292
192
32
30
825
103
251
80
76
1,780
1,204
22,771
Tons per
Acre.
17,000
17,000
18.000
18,000
17,000
18,000
19,000
13,000
13,000
13,000
14,000
12,000
17,000
18,000
20,000
20,000
15,000
20,000
24,000
21,000
16,000
17,000
13,000
18,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
16,000
16,000
16,000
16,000
16,000
16,000
16,000
16,000
14,000
18,000
18,000
18,000
18,000
18,000
LOWER VEINS ONLl
VITHOUT
COAL.
1,296
484
564
9,000" 1,712
9,000 ' 1,037
6,000. 318
88
852
220
589
6,ooo1....V!..
5,000 8,061
220
382
856
188
413
760
159
308
996
181
216
812
114
8
1,752
22
64
6
5,000
5,000
6,000 1,302
6,000
7,000 815
6,000
4,000 226
6,000
52
155
216
24
183
12
1,138
90
21
91
180
467
257
171
7,784
701
390
232
129
286
150
2,278
104
260
68
420
29
4,132
98
2,164
10,500
43,597
-r*
6,000 1
8,000
8,<X)0 ;
13,000 1
10,000 ; 1,093
5.000 ! 895
5.0001 541
5,000 Í
5,000 ; 8,724
5.000
5,0<X)(
5,000
5,000 J.
5,000 I
5,000
6,t)00 :
6,000'
6,000
6,000
8,000
6,000
6,000
6,000
6,000:
1,000
i,000
!,000
S,000
b
8,000
■ 8,000
8,000
4,000
8,000
4,000
670
5,(X)0 i.
5,000',.
5,000 ,.
5,000 '.
9,084
846
376
4,851
211
3,571
31,266
66,325
TOTAL
AREA.
4,032
8,845
2,094
391
106
4,905
847
1,649
177
84
2,542
514
2,027
685
1,202
2,822
52
155
407
489
2.728
569
1,478
4,198
703
525
7,360
328
325
50
187
141
76
1,912
500
100
358
185
200
117
678
413
97
506
22
60
205
1.356
182
178
2,323
459
19,585
993
390
424
161
30
649
253
1,014
4,927
104
408
126
166
59
1,244
236
357
11,173
309
6,939
41,766
TOTAL
PRODUCT.
147,765
29,072,000
35,364,000
25,200,000
7,038,000
1,384,000
17,156.000
13,018,000
16,725,000
2,301,000
442,000
15,600,000
3,876,000
12,044,000
9,174,000
12,912,000
85,800,000
1,434,000
5,664,000
45,144,000
10,501,000
4,784,000
68,110,000
1,194,000
11,961,000
53,978,000
6,468,000
5,925,000
690,000
3,125,000
3,225,000
1,620,000
7,2.50,000
12,500,000
600,000
6,720,000
2,805,000
1,400,000
2,795,000
6,385,000
5,185,000
2,425,000
12,490,000
550,000
1,320,000
5,535,000
36,612,000
Present Annual
Product.
TONNAGE.
REVENUE.
72,785
$21,836
101,837
30,551
14,604
4,381
188,212
56,464
57,348
17,204
89,341
11,802
129,037
84,515
60,664
26,003
129,018
188,303
4,914,000
4,806,000
2,241,000
48,856,000
6,714,000
97,408,000
8,878,000
1,170,000
4,464,000
1,286,000
480,000
6,616,000
2,842,000
25,350,000
64,646,000
832,000
5,860,000
2,110,000
4,150,000
1,475,000
14,000,000
5,900,000
7,900,000
75,696,000
392,000
38,984,000
42,000,000
1,044,866,000
24,528
213,046
788,484
166,903
14,138
10,570
6,000
86,952
17,406
160,821
82,885
38,711
10,355
15,199
7,801
38,705
56,491
7,358
68,914
221,545
50,071
4,241
3,171
1,800
11,086
5,222
48,246
24,865
10,588
3,175
21,166
6,850
10,583
3,175
20,000
6,000
15,685
4,705
57,859
17,358
15,685
4,705
26,566
7,970
43,858
13,007
20,858
6,257
46,578
18,973
68,623
20,587
66,402
19,921
70,547
10,641
851
17,878
21,164
3,192
255
5,363
147,935
44,380
6,852
6,852
2,056
2,056
255,427
76,628
84,873
8,487
25,462
2,546
8,587,698
$1,061,304
No.
1
2
3
4
5
0
7
8
9
10
11
12
18
14
15
16
17
18
19
20
21
22
23
24
25-
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
Progressive Development
of the Estate.
Date.
1895
1900
1890
1895
1880
1885
1890
1890
1905
1905
1895
1880
1905
1890
1890
1890
Annual Yield,
600,000
500,000
450,000
100,000
14,004
400,000
150,00.0
800,000
30,000
5,000
400,000
75,000
800,000
125,000
200,000
500,000
Annual
Revenue.
1,000
150,000
135,000
30,000
4,381
120,000
45,000
90,000
9,000
1,500
120,000
22,600
90,000
37,500
60,000
150,000
DATE or
Exhaus¬
tion-
1941
1970
1944
1965
1975
1925
1973
1944
1982
1998
1929
1932
1941
1961
1948
1957
Maturity
of
Sinking
Fund.
1935
1961
1938
1956
1965
1925
1964
1938
1962
1970
1929
1927
1935
1953
1941
1949
1880
24,528
7,358 i
1885
150,000
45,000
1900
500,000
150,000
1900
100,000
30,000
1890
100,000
30,000
1885
200,000
60,000
1890
500,000
150,000
1895
30,000
9,000
1905
150,000
45,000
1890
150,000
45,000
1900
500,000
150,000
1905
700,000
210,000
1890
75,000
22,500
1890
100,000
30,000
1880
10,583
3,175
1880
20,000
6,000
1890
40,000
12,000
1895
10,000
3,000
1930
15,000
4,600
1890
75,000
22,500
1910
30,000
9,000
1980
150,000
45,000
1880
15,685
4,705
1880
26,566
7,970
1880
43,358
13,007
1880
20,858
6,257
1880
46,578
13,978
1880
68,623
20,587
1880
66,402
19,921
1900
20,000
6.000
1900
100,000
80,000
1930
7,000
2,100
1930
15,000
4,500
1930
50,000
15,000
1900
40,000
12.000
1930
" sooirocr
1900
7,000
2,100
1930
50,000
15,000
1930
50,000
15,000
1900
8,000
900
1980
20,000
6,000
1900
800,000
90,000
1905
500,000
150,000
1890
100,000
30,000
1900
450,000
135.000
1905
700,000
210,000
1910
900,000
270,000
1885
150,000
45,000
1895
30,000
9,000
1880
70,547
21,164
1885
20,000
6,000
1885
5,000
1,500
1890
70,000
21,000
1900
25,000
7,500
1905
100,000
30,000
1910
200,000
60,000
1895
400,000
120,000
1905
650,000
195,000
1895
25,000
7,500
1895
100,000
30,000
1895
25,000
7,500
1910
50,000
15,000
1910
10,000
3,000
1930
15,000
4,500
1895
200,000
60,000
1895
50,000
15,000
1895
75,000
22,500
1900
500,000
150,000
1910
800,000
240,000
1885
20,000
6,000
1920
500,000
150,000
1930
400,000
120,000
1938
1916
1961
1951
1986
2024
1985
1985
1978
1975
1947
1945
2086
1966
2015
1978
2009
1918
1958
1945
1947
1940
1973
1956
2021
2024
2010
2018
2040
1932
1916
1953
1944
1930
1995
1930
1964
VALÏÏE or OOMPANT'S ESTATE.
Coal.
1968
1965
1940
1939
1989
1957
1988
1968
'mm
2028
2026
2042
2000
1955
2005
1941
1934
1943
1946
1980
1982
1993
1983
1918
1950
1938
1940
1934
1964
1948
1998
1995
1984
1990
1992
1998
1997
1993
1976
1948
2084
1995
1928
1962
1975
1993
2005
1965
2013
2000
1980
1935
1929
1987
1939
1960
1962
1970
1988
1972
1928
1954
1965
1970
1980
1956
1986
1976
1992
1925
1991
2085
1970
1925
1969
1989
$1,041,725
502,651
1,198,080
147,674
70,985
1,440,387
486,284
721,975
20,278
8,446
923,786
333,288
378,881
341,103
753,491
1,571,379
Timber.
$153,075
8,642
9,775
2,425
3^298
177
84
4,294
514
10,135
111,495
694,691
3,167,477
686,498
232,846
400
"i'ööö
1,377,911
38,567
102,069
881,550
195,168
263,613
49,219
99,231
129,069
16,106
821,625
25,998
65,680
127,131
201,344
97,884
213,378
334,282
316,151
21,050
105,596
682
1,492
5,006
■ 68,699"
11,715
38,667
4,917
594,741
260,782
1,36.5,437
587,133
38,188
826,756
78,924
17,600
202,492
25,634
8,886
1,406
Surface.
$1,000
"VÖÖÖ
4,000
2,500
2,582
5,000
1,000
20,000
200
4,000
775
2,325
9,000
22,000
2,500
" 2^500
2,000
6-50
150
'Ï',9Ï2
600
75
300
3,000
"ÖÖ
•TQ;84y
910
712
4,000
Total.
$1,041,725
6.55,726
1,196,672
158,449
70,985
1,442,812
488,284
725;273
20,455
3,480
932,080
336,302
383,516
841,108
761,073
1,592,879
4,200
3,100
111,495
708,691
3,189,877
686,493
236,346
1,888,797
89,973
102,069
Per
Acre.
$258
196
571
405
670
294
576
440
116
102
367
654
189
537
683
686
81
20
274
1,439
1,169
1,206
160
1,500
1,500
5,000
6,000
2,500
1,500
2,500
2,000
2,500
VöÖÖ
-^;500
1,000
500
11,615
58,755
119,066
1,283,834
31,477
169,990
60,458
23,223
5,224
295,427
77,455
114,962
1,950
848
450
90
1,800
1,012
6,084
29,562
104
1,224
2,490
5,000
4,000
10,000
5,000
837,550
195,168
264,263
49,219
100,731
180,709
16,106
328,532
31,998
65,680
130,231
201,344
98,884
215,948
336,582
316,151
21,050
111,096
682
3,992
5,096
«2,047
13,625 75
34,879 196
331
57
194
114
595
813
984
785
927
212
172
64
657
864
1,088
494
1,846
500
765
217
220
31
67
25
4,917
611,856
264,782
2,500
"■r'ööö
1,434,192
592,188
40,138
327,604
79,374
17,690
204,292
26,646
1,642,007
57,894
501,593
81,416
$27,837,813
885
18,660
8,540
5,355
111,730
618
69,390
334,128
$884,655
5,000
5,000
127,650
1,820,396
31,581
171,214
60,458
25,713
6,109
314,087
80,995
120,317
59
268
577
78
596
103
773
498
590
815
105
126
268
804
420
480
155
$155,825
1,758,787
58,512
570,983
420,544
$28,878,293
104
252
343
337
157
189
82
10
S -Vvî"
No.
VALUE or OOMPANT'S INTEEEST IN ESTATE.
7cf:~
Coal Tonnage.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
ill
20 '
21
22
23
24 .
25
26 li
27
2,h6
1 >76
1?74
i91
06
4JI05
U7
li«49
.77
• 34
4l42
114
Ííf27
-;85
1,4)2
2;.22
52
.10
•)7
■Î9
2. 18
i9
: 78
708
«25
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
70
71
72
73
74
75
78Ö0
328
325
50
137
141
76
1*34
•••I"
850
50
1(58
'{39
d59
403
P78
. 113
'97
«36
ms
182
.A™..
'■ 38
2323
153
ig58.5
993
390
.424
'161
! 30
'608
'253
690
j 447"
64
108
i26
146
Coal.
14,536,000
25,119,541 :
23,755,874
7,038,000
1,384,000 i
17,156,000 I
13,018,000
16,725,000
2,801,000
442,000
15,600,000
8,876,000
12,044,000
9,174,000
12,912,000
35,800,000
$520,868
. 357,040
•1,124,662
147,674
70,985
1,440,387
486,284
721,975
20,278
3,446
928,786
383,288
878,381
341,103
753,491
1,571,279
Timber.
Surface.
Total.
$108,731
3,433
9,775
,000
1,434,000
5,664,000
45,144,000
10,501,000
4,784,000
.1
59
1244
'236
357
1 173
108
039
■"e (66
68,110,000
1,194,000
11,961,000
53,978,000
6,468,000
5,925,000
690000
8,125,000
3,225,000
1,620,000
5,437,500
6,250,000
800,000
6,720,000
2,107,541
413,000
2,460,555
6,385,000
5,185,000
2.425,000
12,490,000
550,000
1,820,000
5,535,000
111,495
694,691
3,167,477
686,493
232,846
1,377,911
38,567
102,069
831,550
195,168
263,613
49,219
99,281
129,059
16,106
241,219
12,999
32,840
127,131
151,280
28,714
187,841
334,282
316,151
21,050
105,596
682
1,492
5,006
2,425
3,298
177
34
4,294
514
10,135
2,582
5,000
1,000
200
20,000
4,000
775
2,325
400
"iiööö
8,386
1,406
2,000
650
150
1,434
600
2,000
4,000
2,500
9,000
22,000
2,500
2,500
4,000
1,500
1,500
3,750
"3,000
2,500
66
300
4,914,000
4,806,000
2,241,000
11,715
33,667
48,856,000
2,238,000
97,408,000
8,878,000
1,170,000
4,464,000
1,286,000
480,000
6,198,040
2,342,000
17,250,000
4,917
594,741
86,927
1,865,437
587,133
88.188
326,756
78,924
17,600
189,700
25,634
910
712
11,615
58,755
58,848,034
512,000
5,860,000
2,110,000
3,650,000
81,021
1,158,760
19,370
169,990
60,458
20,425
1,950
848
450
90
1,686
1,012
442
2,201
2,000
2,500
'2,600
1,000
500
$520,863
. 465,771
1,128,095
158,449
70,985
1,442,812
488,284
725,273
20,455
3,480
932,080
336,302
388,516
341,103
761,073
1,592,379
4,200
3,100
111,495
703,691
3,189,877
686,493
286,846
1,888,797
89,973
102,069
Per
Acre.
$258
196
571
405
670
294
576
440
116
102
367
6.54
189
587
688
686
81
20
274
1,489
1,169
1,206
160
Encum¬
brances.
EEMAEKS.
$300,000
88,000
111,000
229,000
331
57
194
837,550
195,168
264,263
49,219
100,731
180,709
16,106
246,403
15,999
32,840
130,231
151,280
29,156
190,108
336,582
316,151
21,050
111,096
682
3,992
5,096
5,000
1,834
10,000
5,000
4,140
26,682
64
1,224
2,190
13,625
84,879
4,917
611,356
88,261
1,701
"¿"Ms
1,434,192
592,188
40,188
827,604
79,374
17,690
191,386
26,646
114
595
813
984
735
927
212
172
64
657
364
1,088
494
1,846
500
765
217
220
31
67
25
75
196
876,000
628,000
265,000
156,000
217,000
709,000
220,958
20,000
2,096,000
69,000
51,000
1,295,000
209,000
159,000
44,000
59
19,000
524,000
9,000
49,000
Includes Russell Tract.
285,000
26,000
186,000
263
577
Includes Clark Lot.
Cost included with Phoenix Park.
Cost included with Manhattan.
86,862
1,191,760
19,434
171,214
60,458
22,615
73
596
103
773
493
590
315
105
126
455,000
221,000
268
304
420
480
155
165,000
""l","Ó84,ÍÓ0
1,475,000
14,000,000
5,900,000
7,900,000
75,696,000
130,667
38,984,000
42,000,000
14 Î64 987,986,752
5,224
295,427
77,455
114,962
1,642,007
19,298
501,593
81,416
$26,429,244
885
18,660
8,540
5,355
111,730
206
69,390
334,128
$833,925
6,109 I
814,087
80,995
120,317
104
2.52
343
387
748,000
5,000
"ö'ÖüÖ
$146,071
1,758,737
19,504
570,988
420,544
157
189
82
10
1,340,000
""""5"7"i,Ö0Ö
$27,409,240 ' : $12,915,058 )
II.—TRACTS WHICH THE COMPANY CONTROLS THROUGH OWNERSHIP OP STOCK.
"t.72
1,674
Mi5
846
"1.268
i
„438
76
77
78
79
80
81
Fulton Coal Co
Locust Gap Impt. Co
Preston Coal & Impt. Co....
Mammoth Vein C. & 1. Co.
Delaware Coal Co
Tremont Coal Co
Total op 11..
Total of I. & IL.
1,031
1,268
898
3,197
26,000
26,000
25,000
18,269
348 : 18,000
856 1 18,000
868 i 20,000
1,910 18,000
3,482
26,253
1,144
621
625
640
3,030
46,627
5,000
6,000
6,000
8,000.
176
1,011
853
1,052
3,092
69,417
1,668
1,988
2,346
1,081
1,268
4,500
12,801
160,566
10,244,000
10,410,000
21,110,000
26,806,000
32,968,000
61,850,000
163,388,000
1,208,254,000
98,350
$29,505 '
152,776
45,883
108,340
82,502
22,000
6,600
20,000
6,000 :
76,129
• 22,839
477,595
$143,279 '
4,015,288
■I
$1,204,583
76
77
78
79
BO
81
1895
1880
1885
1905
1905
1900
1930
200,000
152,776
200,000
300,000
300,000
400,000
600,000
$60,000
45,833
60,000
90,000
90,000
120,000
180,000
1939
1948
1987
1992
2018
2011
1933
1941
1966
1970
1986
1985
$583,038
717,668
832,837
299,803
297,759
734,984
$8,466,089
$31,303,902
$7,077
2,000
6,340
13,500
$28,917
$913,572
$5,000
6,000
8,000
2,500
$21,500
$177,325
$583,038
724,745
839,837
805,803
312,099
750,984
3,516,506
$32,394,799
$350
365
358
297
246
167
76
77
78
70
80
81
T
U,913
ll*,177
9,040,269
8,765,765
19,931,228
21,990,000
32,908,000
60,997,844
153,699,101
1,141,685,853
$514,527
604,814
786,382
246,007
297,759
724,858
$3,173,797
$29,603,041
$5,959
1,888
""¿,340
18,814
$27,501
,426
$4,721
4,923
8,000
2,460
$20,110
$166,181
$514,527
610,273
792,941
250,980
312,099
740,638
3,221,408
$80,630,648
$350
365
358
297
246
167
1,200,000
300,000
300,0«)
$1,800,000
$14,715,058
JOSBPH S. HARRIS.
"REFEEENCE TO COLLIEKIES
COLLIERIES OPERATED BY THE P. A R. COAL AND IRON CO. ON LANDS OF THE P A B. COAL AND IRON CO.
COLLIERIES OPERATED BY THE PAR COAL AND IRON CO ON LANDS OF OTHERS
COLLIERIES OPERATED BY INDIVIDUALS ON LANDS OF THE P. A R COAL AND IRON CO
COLLIERIES ABANDONED ♦
Tb« num&er« of ih« löllowing CoUi«r1*« corrcapond with tho«« on th* m«p «howing ib« Coat Laiarala of ih« Phitadalphia and Raading Railroad Company.
Jfame of CoUiery.
Name of CóÜMry.
.Muñe of Cotiiery.
North MahoJioy.
Makanoy City.
Tunnel Ridge.
St. Ntoholaf.
Suffolk.
EUangowan.
Knioker^Moker.
Bear Run.
Boston Run.
S. Beeehu'OOii.
4. M'luletviJle Sluiff.
8. Ruinbow with nadunfiUe.
10. EugLe.
12. Pine Forest Shaft.
IS. Peach Mountain.
10. (rientioorth with EngJe HiU.
20. Ragle .Hill Shrift.
21. mndy ffarbor.
22. Cedar HUI.
23. Ledger Fein.
28. Kentucky.
29. fCahash.
30. ßuckvUie.
fil. Reeoaedate.
33. Newkirk.
34- ^'est Lehigh Shaft.
33. JXojtha.
44- Coal HiU.
40 Butler.
Ccal Mountain.
.Ejnory.
ETUerprise.
Margie Franklin.
GreeTibaok.
Henry Clay, No. 1.
Big Mountain.
Franklin.
Daniel Webster.
REPORT
port trevorton
fjilberton
Furnitre.
Turkey Run.
West Shenandoah.
Shenandoah CUy.
Plonk Rulge.
Conner.
Girard Mammoth.
Bear Valley.
£y,mside.
North Franklin. No. I.
herndon
George Fales.
Royal Oak.
Tndioin Ridge.
Elnuoood.
p} tston. No. I.
F}est(in, No. J.
North Ashland:
Staffordshire.
Hammond.
Locust Gap.
North Franklin, .vo. 2.
.Ht CuTTnel Shaft
Webster.
•76". hittrriils Stuiff.
lO-i. Uve Oak.
Pioneer.
100. f ine h'lwl, East.
110. Pine hiwt, West.
113. Anchor.
Stiriing.
Schuylkill.
Henry Clay No. 2.
JOHN BOYO
Girard.
114. Onkdale.
Preston, No. 3.
1 IS. Richardson.
Preston, No. 4-
Cambrian.
I Jti. (rlenriowrr.
118. 'Salem.
shamok;n
Reliance.
121. lOurnix Pirk, .^Vb.
StiiartviUe.
US. Phftiix i'urk. No. I.
Monitor.
JJ3. IHamund.
Forestville.
US. Branchdaie.
Keystone.
TjOcust Spring.
Locust Summit with Mt Car^ d Shaft.
HeLfenetein. ^
Sxoajtam.
TRACTS
130 Middle Crrek Shrft.
133. EaM Franklin.
13 S. West End.
134- Eckert.
WITH BIG MOUNT A! N
IMPROVEMENT CO.
MARSHALL
PHILIP KUNTZELMAN
SAMUEL WETHERILL
ALEXANDER KLINCER
lis. Lower Ruitsch ( 'reek
SAMUEL MORGAN
136. Liru'iiin.
FOUNTAIN SPRING TRACT
LITTLE SCHALL TRACT
l-ti). K'aimit:
140. B.'THXil .Hounúutf.
141. East Jímohúdf..
142. ^'eM ■Pmnksid'i.
104. Mine HiU GtL/>
144. Thomasian.
HAMMER & HOY
Shamok
xtti LITTLE KLAUSER TRACT
xrv MARY PATTERSON
WITH HEAR & PATTERSON
Hrd .Hoanlain.
COAL WORKINGS COLORED THUS
148. Eileitforth.
ISO. TaylorsiUle with Gicndoicer
153. Black
157- Phtznix Hjrk. No.
202. North 1^
303. HÜltid4'-
—\ àiT.CAfià^ tfnCOST Mf:
FUNGTOVYN
STATION
ringtown
millersburg
OSTEIN
locust mu¡
T/mben ;
\ TBAjbr :
gordon
^ckvi
BROOK.
delano
Brcunchj
p mylr a"
J. HARTMAN
PALLOY ß
ÍASPOR
jam.
i05
'ÍÍ^TLE
□onalosqn
[OÍLAITAm
i COAL CB^
clair
bayards j
VICTORIA PBRRACE
rsvillle
isyvatarjt
lewellyn
Co.
coal co.
tAVCHSOALi
tract
i mammoth tram coal a "wn
xjfiop mini: hill
(itara
riTTiHj
Pant.
tamaqua
dauphin
>r coal mcasur es
¡^InOE COAL 'measures
torkvh , r
Tishing
'pottsville
ilforb
'daupín OEPjt
poftt carbon
\MAA/HAT TAN
! COAL CO
jMANHA rrAN\
• COAL CO. ;
West
eYATER
rausch gap
"y^STNTIOH
"•eas'r^
PALO ALTO
yellow sphiho
STATIOH
RATTLiNG RUH
eta.
vit carbon
envood
north pinegrove
ifrieoensburg
schuylkill
it- haven