Lycoming Coal Company records

Most of the following account has been drawn from the Directors' Records and the Correspondence files.

The Lycoming Coal Company was located in Lycoming County, Pennsylvania on the West Branch of the Susquehanna River. It had been a working coal mine. The property was transferred on June 1, 1832, and was held as a partnership between four Boston businessmen, Thomas H. Perkins, Patrick T. Jackson, Edmund Dwight and George W. Lyman. In a separate five-year agreement, William Lyman, also of Boston, was named a partner as he had made known to the four partners "the existence of said mines and the expediency of said enterprise."

These five men had been involved in enterprises which perhaps have some bearing on their involvement in the present venture.

Thomas H. Perkins, merchant and financier, had been one of the founders of the Monkton Iron Company in 1807 which had integrated the whole process of iron manufacture: mining ore and coal, using the coal to smelt the iron, providing sloops for transportation, refining the pig iron, and producing wrought iron nails, pots, sheets and bars for the market. The company also furnished accommodation and provisions for the laborers. Despite early problems, the company was successful by 1831 when it was sold.

Patrick T. Jackson had chiefly been involved with textiles, although this had led to canal building and railroads. Jackson helped organize the Boston Manufacturing Company in 1813. The company's mill on the Charles River in Waltham, Mass. was the first integrated textile mill in the U.S. In 1823, the Boston Manufacturing Company moved to Lowell and through his association with the Locks and Canal Company there, Jackson became involved with building locomotives. Thomas Perkins was also connected with this enterprise and with another of Jackson's concerns, the Boston and Lowell Railroad.

Edmund Dwight was an important cotton manufacturer. He also helped establish the Western Railroad which ran between Worcester and Albany.

William Lyman eventually built the prize-winning, hot-blast, anthracite Pioneer Furnace for Burd Patterson on "the Island" in the Schuylkill River in 1838-39. He was also one of the partners in the Franklin Nail Works that was supplied by the Lycoming Coal Company.

On April 9, 1833, the company was incorporated by the Pennsylvania legislature and authorized to mine, transport and sell coal. The members of the mill for a nail works on the LCC property. This became the Franklin Nail Words owned by Lyman, Forbes and Co. and was in operation by 1835. The LCC proprietors provided the works with land and water rights. The LCC built the mill and furnace, as well as workmen's and agent's houses. The company's accounting records give much detailed information on these projects. The LCC also sold coal to the nail works.

Eventually, the LCC had spread to at least three locations, Ferrandsville in Dunstable (later Colebrook), Larry's Creek and Hemlock Creek. The latter was particularly rich in iron ore.

Early on, the LCC's greatest problem was marketing coal. It seems that the quality of their coal was poor. It was rejected on occasions as being full of slate and dirt and their coke was too light for the railroads. There was also stiff competition from anthracite vendors. Eventually the company turned wholeheartedly to iron production. Coal production for market virtually ceased although it was still mined for use in the manufacture of iron. It should be noted, however, that the records suggest that the proprietors had the manufacture of iron in mind from the beginning. Indeed, they had the coal tested by "scientific gentlemen" for its suitability for smelting iron before buying the property.

Be that as it may, their charter did not authorize the LCC to smelt iron. In November, 1834, the Directors decided to apply to the Pennsylvania Legislature for a supplementary bill which would authorize the company to mine iron ore, and smelt it with coal; and also that would allow the company to hold more real estate than the original charter allowed. The second part was important because the LCC had already improved a great deal of land which it hoped to purchase. The matter was put in the hands of the company's erstwhile agent, now lobbyist, William Ferrand, who shepherded the bill through the legislature in Harrisburg.

There was apprehension on the part of Charles Russell Lowell, in particular, that the bill would founder because of the iron making clause. He wrote that, "I have always have had [sic] doubts the expediency of asking for the right to make iron--it is not necessary--Corporations are always [viewed] with a jealous eye and are particularity [sic] obnoxious to the People of Penn. If the asking for the power will at all [jeopardize] the grant of power to hold additional real estate it had better be [set aside]. The one is indispensable, the other merely a convenience." [12-29-34]

According to Ferrand, the Centre County iron masters objected to the iron section of the supplementary bill. Nonetheless, Ferrand believed that getting permission to make iron was necessary. He wrote that he was afraid to see the Company "commence making iron under their Corporate rights. I fear a hue and cry may be raised." Nothing daunted, Lowell directed Ferrand to give the legislators the impression that the LCC needed more land for coal mining, not for iron. The secrecy was maintained back in Lycoming County, too. The man in charge of mining at Hemlock Creek wrote to the company's agent, Daniel Tyler, that while his crew had found good iron ore, "I told the miners to say they had found some ore, but not perfectly satisfactory, and to say as little as possible without appearing mysterious ... you must not be known in the matter, or to have it traced to you, or we may have trouble." [early 1835]

Despite all the secrecy, news of the LCC's enterprise seemed widespread. Tyler, the agent, received a number of letters from people with detailed proposals for iron making. One is from the owner of the Vesuvius furnace [illegible name] in Ohio who explains his methods in full detail.

Furthermore, two men, Gerald Ralston and Daniel Treadwell, were over in England at this time studying the iron business and attempting to secure a furnace builder and manager for the LCC. They hoped in this way to acquire British technology. But furnace managers were not easily seduced from their present jobs by the offers of the LCC. According to one labor agent, "the requirements are of such a nature that few persons possessing them are to be found and they seem too highly appreciated to be obtained at modest cost." [August 4, 1835]

Eventually, the LCC obtained Edward Thomas, a blast furnace expert from Wales, to come over to supervise the building and operation of the blast furnace. He brought with him a mason and machinist and pattern maker. Thomas wrote a letter filled with detail about what he proposed for the LCC iron works. The company lost him in about a year, however, because for one thing, it did not furnish him with a house.

A lesson was learned by this. The LCC agent, Tyler, was sent to England in late 1836 to study the iron business and to secure a replacement for Thomas. His letters are filled with enjoinders to make sure that suitable housing is provided for whomever took on the job. Tyler went to all the principal works in England, Wales and Scotland and wrote that, "I have come to the conclusion that Yankees can erect and work furnaces as well as Welshmen. We have spent by far too much money on our furnace, but it is no use to cry about it--the furnace is a good one, and the difficulty is it is too good--our next will be different." [3-21-37]

The records show, however, that after much delay, the LCC's furnace was put into blast at the beginning of 1838 and failed to smelt iron in two attempts. It seemed that the coal was too soft. There was discussion about whether adding charcoal would remedy the situation and even about building a smaller furnace. In any case, the company laid off every one not connected to the iron works. The decision was made that if coal would not work for smelting iron, charcoal would be used to melt down the 8000 pounds of iron which had already been mined. The records show that there was some question about what, in fact, the company's business would be and whether it would still supply the Franklin Nail Works. Tyler was fired.

Ironically, the supplementary bill to the Company's charter was passed by the Pennsylvania Legislature in February, 1839, and the LCC was authorized to make iron. But in November, 1839, a stern assessment of the Company's situation was made. Capital stock paid in was $430,220. There had been no profits and no dividends. In January, 1840, the Board of Directors decided to close down the Company. They had to borrow $20,000. It took eight years to sell off the LCC's properties.