Lehigh Coal & Navigation Company

Lehigh Coal & Navigation Company
Company type	Private
Industry	Mining, Transportation, Manufacturing
Founded	1818
Founder	Erskine Hazard, Josiah White, George F. A. Hauto
Defunct	1964
Headquarters	Mauch Chunk (now Jim Thorpe), United States
Area served	Northeastern United States
Products	Anthracite coal, steel, wire rope

Lehigh Coal & Navigation Company was a mining and transportation enterprise based in Mauch Chunk (currently Jim Thorpe, Pennsylvania). Operating from 1818 until 1964, it was instrumental in advancing the American Industrial Revolution.

As the United States’ first vertically integrated corporation, it unified resource extraction, transportation, and manufacturing sectors, pioneering a business model that expanded its market power and competitive edge.

18th century

In 1791, hunter Philip Ginter uncovered anthracite coal on Pisgah Mountain near what is now Summit Hill, Pennsylvania, close to the border between Schuylkill and Carbon counties.

Ginter quickly notified Colonel Jacob Weiss, who promised him 300 acres in exchange for revealing the precise coal location. Weiss then took samples to Philadelphia where investors John Nicholson, Michael Hillegas, and Charlie Cist authenticated them. After confirmation, Weiss secured the land rights. Although Ginter established a mill on the site, he eventually lost ownership due to a prior claim registered with the U.S. patent office.

By 1792, Weiss, Hillegas, and Nicholson had become founding investors in what would evolve into the Lehigh Coal & Navigation Company (LCMC). Early company management faced challenges from absentee ownership and inefficient operations. The firm attempted to mine anthracite and transport it by mule to the Lehigh River. They built rudimentary arks near Lausanne Landing to navigate river rapids toward Easton, Pennsylvania. While deliveries of coal to Philadelphia were inconsistent, these early efforts laid the foundation for LCMC’s eventual dominance over local mining and transportation rights.

Lehigh Coal Mine Company

Established in 1792 by Michael Hillegas, Jacob Weiss, and John Nicholson, the Lehigh Coal Mine Company (LCMC) was incorporated in 1793 and acquired approximately 10,000 acres around Panther Creek Valley and Pisgah Mountain. Its operations centered on extracting anthracite coal near today’s Summit Hill and transporting it via mule teams to arks on the Lehigh and Delaware rivers for shipment to Philadelphia.

Operating sporadically from 1792 through 1814, LCMC supplied coal to emerging markets but encountered major operational difficulties due to the rough and unimproved conditions of the Lehigh River. These obstacles led to frequent losses of cargo boats and negatively affected financial outcomes. Although ongoing efforts sought to enhance navigation on the Lehigh River, they proved costly and largely ineffective during this time frame.

Eventually, LCMC sold some coal shipments to entrepreneurs Josiah White and Erskine Hazard, who ran a wire mill near Philadelphia. Impressed by the coal’s quality, White and Hazard purchased LCMC’s remaining barges—an event that marked a turning point influencing regional industrial expansion and transportation infrastructure development.

19th century

In 1818, industrialists Erskine Hazard and Josiah White, together with German immigrant miner George F. A. Hauto, established two companies: the Lehigh Navigation Company and the Lehigh Coal Company. Their goal was to enhance coal delivery by constructing the Lehigh Canal and mining coal on land owned by the Lehigh Coal Mining Company. In 1820, after acquiring Hauto’s interest, they merged these firms into the Lehigh Coal and Navigation Company (LC&N), representing one of the earliest examples of interlocking company mergers in American history.

The founders entered the coal sector primarily to supply fuel for foundries and mills throughout the Northeastern United States, including their own operations along the Schuylkill River. Their strategic approach focused on overcoming engineering challenges by building essential transportation and mining infrastructure that significantly propelled regional industrial growth and helped drive the American Industrial Revolution forward.

The Lehigh Canal became operational in 1820 and was upgraded through 1829 into a two-way waterway crucial for shipping anthracite coal—a vital energy source—to major markets across the Northeast. LC&N’s success encouraged additional canal projects regionally as well as investments in raw material transport infrastructure such as the Delaware and Hudson Canal and emerging railroads.

LC&N also broke new ground in anthracite coal mining within Pennsylvania’s Southern Coal Region by securing extensive land holdings totaling around 8,000 acres. They introduced Welsh blast furnace technology to increase iron production in the Lehigh Valley by constructing six furnaces along with puddling furnaces for steelmaking. This steel supplied their wire rope manufacturing operation—the nation’s first—supporting mining activities and cable railway systems with high-strength products.

To improve logistics further, LC&N built the Mauch Chunk and Summit Hill Railroad in 1827—one of America’s earliest railroads—enhancing coal transport efficiency significantly. The company also developed the Ashley Planes incline system plus various shortline railroads throughout northeastern Pennsylvania, establishing transportation corridors still influential today.

LC&N’s vertically integrated structure encompassed coal extraction, transport infrastructure development, steel production, and manufacturing—creating competitive advantages that sustained business growth throughout the nineteenth century. Referred to locally as the "Old Company," it established foundational industrial practices that shaped regional market dominance and infrastructure expansion.

Lehigh Coal Company

White and Hazard initially encountered skepticism from investors regarding their mining ventures at Summit Hill, with many viewing their efforts as high-risk undertakings. To secure additional funding, they established two organizations: the Lehigh Coal Company (LCC) and the Lehigh Navigation Company, while pursuing legislative approval to improve navigation on the Lehigh River.

In 1817, they leased and assumed control of the Lehigh Coal Mine, officially incorporating the Lehigh Coal Company on October 21, 1818. They sought legal authority to enhance river transport, supported by a series of legislative acts spanning several decades. After acquiring their partner Hauto’s share in 1820, White and Hazard dissolved LCC and consolidated their enterprises into the Lehigh Coal & Navigation Company (LC&N), intending to utilize American Canal Era infrastructure—such as canals, locks, and railroads—to move coal efficiently to markets like Philadelphia.

On March 20, 1818, the company obtained authorization to navigate vessels carrying up to ten tons of coal along the Lehigh River. The state reserved the right to implement a comprehensive slack-water navigation system between Easton and Stoddartsville should service prove insufficient. Although doubts persisted about the viability of mining operations and river improvements, investment was secured based on optimistic shareholder evaluations of navigation enhancements.

The Lehigh Navigation Company allocated $150,000 toward constructing infrastructure including dams and sluice gates—an innovation introduced by White—to sustain navigation during low water periods. Concurrently, the Lehigh Coal Company constructed America’s first roadway engineered with precise grade calculations to optimize coal transport from Summit Hill down to the river-loading chute at Mauch Chunk.

By 1819, navigable depths were established between Mauch Chunk and Easton. Following their merger under LC&N, annual coal deliveries surpassed two thousand tons by 1823. This integration of extraction and transportation represented a groundbreaking business strategy in American industrial development, creating a competitive edge in coal distribution through targeted infrastructure investments combined with legislative backing.

Lehigh Navigation Company

Showcasing pioneering engineering with the world’s inaugural iron wire suspension bridge spanning the Schuylkill River, White and Hazard partnered with industrialists to secure steady anthracite coal supplies. To facilitate efficient coal transport, they negotiated navigation rights on the challenging Lehigh River and founded the Lehigh Navigation Company around 1817–18. Their stock offering committed to consistent barge shipments of coal to Philadelphia by 1824, addressing previous delivery shortcomings experienced by the poorly managed Lehigh Coal Mine Company (LCMC), which had struggled with cost control and reliability.

Following state sanction in 1818, construction began on locks, dams, and innovative water regulation gates under Josiah White’s direction. Their patented "bear trap" hydrostatic locks allowed for artificial freshets that maintained navigable water levels during droughts, guaranteeing steady coal shipments. Infrastructure improvements included enhanced mule trails from Summit Hill mines as well as facilities for boat construction and docking near Jim Thorpe (formerly Mauch Chunk).

By early 1819, shipments commenced ahead of schedule and became routine by 1820. Coal tonnage escalated rapidly—from 365 short tons in 1820 to over 40,000 by 1831—reflecting robust market demand and operational expansion. In 1820, White and Hazard consolidated control by removing George Hauto from partnership, merging the Lehigh Navigation Company with the Lehigh Coal Company and acquiring approximately 10,000 acres across three valleys between Mauch Chunk and Tamaqua.

The official incorporation of Lehigh Coal & Lehigh Navigation in 1822 unified their coal production with transportation services, creating a vertically integrated enterprise that strengthened market position and competitive advantage in anthracite coal distribution.

Non-mining enterprises

Between 1822 and 1865, under the leadership of managers White and Hazard, the company adopted forward-thinking business approaches aimed at boosting income. A key strategy involved vertical integration, which allowed tighter control over expenses and enhanced profit margins. The firm regularly backed nascent projects by injecting essential capital or purchasing subsidiaries once their concepts demonstrated viability, thereby expanding its market presence and fostering business development.

Grand Lehigh Canal-Upper Canal Division

The flood on June 6, 1862, revealed a significant vulnerability in White's canal system. The dams and locks, originally constructed to facilitate coal transportation, created extensive reservoirs that, when overwhelmed by heavy rainfall, triggered catastrophic flooding with considerable casualties. In response to this calamity, the state legislature prohibited the company from reconstructing the damaged canal segment, which adversely affected its transportation operations.

Railroads

Key source

Summit Hill and Mauch Chunk Railroad

Completed in 1827, the company established a 9.2-mile gravity railroad known as the Mauch Chunk and Summit Hill Railroad—recognized as the second railroad in the United States. Constructed swiftly along a mule road graded under White's survey, it transported coal efficiently from mining sites to river docks using wooden sleepers paired with rolled iron rails. This early infrastructure investment improved operational productivity and secured a competitive edge in coal transportation logistics.

The railroad’s engineering maximized coal delivery efficiency and volume, thereby enhancing the company’s financial results and solidifying its leading position in regional coal transport markets.

Room Run Railroad

The Room Run Railroad was a short railway line constructed by Josiah White originating from a ravine located within the Nesquehoning Valley.

Non-railroad enterprises

During the winters spanning 1821 to 1823, the partners accumulated valuable knowledge regarding canal construction and damage caused by ice, recognizing that some deterioration was unavoidable. The necessity for repair funding in 1821 led to restructuring into the Lehigh Coal & Navigation Company, which acquired George Hauto's interest, leaving White and Hazard as principal owners who personally financed most repair efforts. By 1823, the upper four locks on the Lehigh Navigation were reconstructed as experimental models featuring a spacious two-way lock system.

In 1823, White proposed a canal system equipped with two-way locks designed for ships and steam tugs running from Mauch Chunk to Philadelphia along the Lehigh and Delaware rivers; however, this plan was rejected in 1824 after the state committed to building the Delaware Canal. Consequently, the company was compelled to construct expensive coal arks and deplete timber resources for single-use boats while awaiting governmental progress.

Delaware Division Canal Company – Following extensive leakage upon opening in 1831 of the state's poorly built 60-mile canal stretching from Easton to Bristol, Josiah White was summoned for repairs. By 1834, these efforts restored functionality, enabling the Lehigh Coal & Navigation Company to oversee operations through its subsidiary Lehigh Navigation Coal Company (LNC Co.), which managed both canals into the 1930s. By mid-1832, White’s team had resolved major leaks permitting partial use. LNC Co. maintained independent management over these assets.

This strategic expansion reinforced Lehigh Coal & Navigation's market dominance by integrating control over coal lands, railroads leased at over $2 million annually, and substantial property holdings including stakes in National Power and Light Co., highlighting its competitive strength and growth within anthracite coal transport and energy industries.

Mill Parks

Before 1815, White and Hazard—originally proprietors of mills and foundries—strategically secured fuel supplies for their enterprises by acquiring the faltering LCMC operations. In 1814, they invested in the competing Schuylkill Canal, but dissatisfaction with its inadequate planning and financial delays arose, as it did not commence operations until 1823. Meanwhile, their own company pioneered canal innovations. White developed the Bear Trap lock-gate mechanism, which generated controlled floods to facilitate navigation through rapids, demonstrating his engineering prowess. Capitalizing on waterpower potential along the Lehigh River, the founders utilized legislation granting them ownership rights over the entire river, a privilege maintained until 1964.

After early canal damage between 1821 and 1822 severely drained financial resources, White and Hazard sought additional funding. This led to the dissolution of both the LCC and LNC and the establishment of the Lehigh Coal & Navigation Company (LC&N). Applying their experience from the Little Schuylkill River, they created water-powered industrial complexes along their waterways. By 1840, nearly a dozen factories operated near Abbott Street by Lock 47 (present-day Hugh Moore Park in Easton, Pennsylvania), employing upwards of 1,000 workers. This industrial foundation propelled economic growth in Allentown and Bethlehem and reinforced ties with the Delaware Canal, which the company managed after 1834, thereby fueling Philadelphia’s Industrial Revolution.

Upper Lehigh Canal

Benefiting from eminent domain authority granted under the revised 1837 Main Line of Public Works legislation, LC&N extended its Lower Lehigh Navigation system upriver through the Upper Lehigh Canal within the Lehigh Gorge, completed in 1843. This expansion resulted in the largest canal carrying capacity in the United States at that time, significantly boosting the company’s dominance in coal transportation.

Lehigh and Susquehanna Railroad

To optimize coal distribution, LC&N founded a subsidiary railroad connecting to the Susquehanna River at Pittston, Pennsylvania. This route traversed difficult terrain using advanced infrastructure such as the cable-driven Ashley Planes. The double-tracked line linked Ashley to Pittston’s barge terminals and connected with seven major railroads servicing anthracite coal regions. At the Ashley Planes summit, an assembly yard was established at Mountain Top, Pennsylvania, with a steep branch line extending to White Haven, Pennsylvania, integrating rail and canal transport through the Lehigh Gorge.

Guided by strategic vision and legislative backing, LC&N expanded both its Lehigh Navigation system and Lehigh and Susquehanna Railroad upriver from Jim Thorpe, Pennsylvania to White Haven. This integrated multi-modal network reinforced its competitive edge in coal logistics between Philadelphia, the Delaware River corridor, and Northern Coal Fields located in Wyoming Valley.

Other railroads

Between the late 1820s and mid-1830s, industrial leaders across Pennsylvania, Delaware, and South Jersey aimed to connect their manufacturing centers with markets beyond the Appalachians. To rival competition from the B&O Railroad and Erie Canal, they initiated the Main Line of Public Works project to serve manufacturers within the Delaware Valley.

The company developed several key short line railways as joint ventures that overcame earlier engineering challenges. These lines, alongside their original railway—the Mauch Chunk & Summit Hill Railway—were consolidated under the Lehigh and Susquehanna Railroad, now functioning as a holding entity owning and leasing track rights throughout critical northeastern Pennsylvania corridors.

Subsidiary shortlines

Nesquehoning & Mahanoy Railroad: Drawing on expertise managing freight along both Lehigh and Delaware Rivers, this railroad tackled transport constraints by constructing a seven-mile grade crossing Nesquehoning Ridge into Hazelton and Mahanoy Creek valleys, including Tamaqua. The tracks extended through Schuylkill Valley to serve industries based in Reading.
Panther Creek Railroad: Built from Tamaqua to access coal deposits located five to six miles east within Panther Creek Valley.
Hauto Tunnel: To minimize expenses associated with steep-grade shipments, a mile-long tunnel was excavated through Nesquehoning Ridge leading to Lansford—briefly serving as corporate headquarters. This infrastructure provided three distinct coal transport routes from Pisgah Ridge and Nesquehoning Mountain until the sale of the Mauch Chunk Switchback Railway, which then primarily operated as a tourist attraction—the world’s first roller coaster.

Lehigh and New England Railroad

The purchase of the Lehigh and New England Road allowed the company to eliminate its leasing agreements with CNJ by assigning those rights to the newly formed subsidiary, thereby optimizing operations and broadening its market presence.

Decline

Lehigh Navigation ceased operations in 1932 after maintenance expenses surpassed the income generated from its activities.

By the middle of the 20th century, Lehigh Coal & Navigation Company had become predominantly dependent on coal revenue, while its subsidiaries managed railroads and other lucrative sectors. The drop in coal demand—attributable to the rise of diesel engines and alternative heating solutions—led to a sharp decline in earnings. Company boards managed a gradual reduction in scale, including divestitures of assets. In 1966, Greenwood Stripping Co. purchased the remaining coal holdings in Panther Creek Valley, which were later sold in 1974 to Bethlehem Mines Corp.

In 1986, following the sale of its final enterprise, Cella's Chocolate Covered Cherries, to Tootsie Roll, shareholders opted to dissolve the company.

New company

The corporate name continued under a separate organization established in 1988. This New Company was headed by former executive and shareholder James J. Curran Jr., who reacquired Lehigh Coal from Bethlehem Mines in 1989. Throughout the 1990s, it maintained its position as the leading anthracite coal producer in the United States.

In 2000, Lehigh Coal halted operations and dismissed 163 workers due to a significant drop in coal prices. The company resumed activities in 2001 after securing a $9 million loan from the USDA. Facing financial difficulties again in 2010, it was purchased at auction by BET Associates, affiliated with Toll Brothers. As of mid-2013, mining operations between Lansford and Nesquehoning continued under the Lehigh Coal and Navigation Company name.

External links

Switch-Back Gravity Railroad: Exclusive photographs of Lehigh Coal & Navigation's Mauch Chunk Switchback Railway, recognized as North America's second continuously operating railway, first to transport passengers for payment, and considered the pioneer tourism railway and roller coaster that inspired The Switchback amusement ride.