Lehigh Coal 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), Pennsylvania , United States
Area served	Northeastern United States
Products	Anthracite coal, wire rope, steel cables

Lehigh Coal & Navigation Company was a mining and transportation enterprise based in Mauch Chunk (currently Jim Thorpe, Pennsylvania), active between 1818 and 1964. It was instrumental in the development of the American Industrial Revolution and distinguished itself as the first fully integrated company in the United States, combining extraction, transportation, and manufacturing processes under one organization.

18th century

Anthracite coal was discovered in 1791 by hunter Philip Ginter near what is now Summit Hill, Pennsylvania, close to the boundary of Schuylkill and Carbon counties. Ginter informed Colonel Jacob Weiss, who promised him 300 acres for revealing the precise location. Weiss then confirmed the coal’s presence with Philadelphia investors John Nicholson and Michael Hillegas. Although early land ownership disputes arose, this discovery became the cornerstone for future coal enterprises.

In 1792, Weiss, Hillegas, and Nicholson took initial stakes in what would become the Lehigh Coal & Navigation Company (LCMC). Early management encountered difficulties due to remote operations. The anthracite was extracted and transported by mule teams to the Lehigh River, where rudimentary arks were built near Lausanne Landing to navigate river rapids en route to Easton, Pennsylvania. Eventually, LCMC consolidated its position by absorbing the rights of the Lehigh Coal Mining Company, securing control over anthracite mining and its transportation to Philadelphia.

Lehigh Coal Mine Company

Established in 1792 by Michael Hillegas, Jacob Weiss, and John Nicholson, the Lehigh Coal Mine Company (LCMC) was officially incorporated in 1793. It acquired roughly 10,000 acres surrounding Panther Creek Valley and Pisgah Mountain. The company’s strategy centered on moving anthracite from deposits near modern-day Summit Hill to Philadelphia using mule-drawn trains that delivered coal to arks stationed at Lausanne on the Lehigh and Delaware rivers.

Mining sites were located more than nine miles from the Lehigh River at Mauch Chunk. Operations occurred intermittently from 1792 until 1814. While all extracted coal was sold to expanding markets, financial results were hindered by dangerous and unimproved navigation conditions on the Lehigh River. Despite legislative attempts dating back to 1771 aimed at enhancing river passage, these obstacles persisted, restricting profitability.

Some coal was eventually sold to Josiah White and Erskine Hazard, proprietors of a wire mill near Philadelphia. Recognizing the superior quality of this fuel, White and Hazard acquired LCMC’s final two surviving barges. This purchase signified a strategic shift that spurred further advancements in regional coal transportation and industrial expansion.

19th century

In 1818, industrialists Erskine Hazard, Josiah White, and George F. A. Hauto established two companies: the Lehigh Navigation Company on March 20 and the Lehigh Coal Company on October 21. Their objective was to enhance coal mining operations and improve transport along the Lehigh River. By 1820, after acquiring Hauto’s interest, Hazard and White merged these entities into the Lehigh Coal and Navigation Company (LC&N), concentrating on supplying dependable anthracite coal to foundries and mills across the Northeastern United States. This integration of mining with transportation infrastructure played a crucial role in propelling America’s Industrial Revolution.

The Lehigh Canal became operational by 1820 and underwent improvements through 1829, serving as a vital channel for distributing anthracite coal. Its success influenced the construction of four additional regional canals by the early 1830s. LC&N’s engineering achievements and targeted investments accelerated industrial development within the region and inspired projects such as the Delaware and Hudson Canal and Schuylkill Canal, where LC&N also provided financial backing.

By securing a 20-year lease on Lehigh Coal Mining Company's assets, Hazard and White expanded into railroad ventures including the Lehigh and Susquehanna Railroad while pioneering innovative transport methods like the Ashley Planes incline railway. The company gained a competitive edge by integrating coal extraction with steel manufacturing—importing Welsh expertise to establish blast furnaces in Lehigh Valley—and founding America’s first wire rope factory in Mauch Chunk. These steel cables were produced both for internal use and external customers requiring high-strength wire products.

In 1822, LC&N achieved a historic milestone by merging interconnected companies into one entity—the first such consolidation in U.S. business history. Five years later, in 1827, it constructed the Mauch Chunk and Summit Hill Railroad—the nation’s second railroad—which significantly improved coal transportation efficiency by replacing mule-drawn wagons with railcars that doubled delivery frequency.

Founders White and Hazard applied their technical knowledge and strategic vision to position LC&N as a leading force within Southern Pennsylvania’s Coal Region. They controlled extensive coal lands stretching from Jim Thorpe to Tamaqua. Their approach combined resource ownership with innovative transport infrastructure development, fueling substantial growth and market dominance during America’s early industrial era.

Locally referred to as the "Old Company," LC&N established foundational infrastructure that continues to influence present-day operations through subsidiaries and rail lines now managed by carriers such as Reading, Blue Mountain and Northern Railroad or Norfolk Southern Railway.

Lehigh Coal Company

Initially, White and Hazard encountered skepticism from investors who doubted the viability of their mining venture at Summit Hill. To attract additional capital, they established the Lehigh Coal Company (LCC) alongside the Lehigh Navigation Company, seeking legislative authorization to improve navigation on the Lehigh River.

They leased the coal mine properties in 1817 and formally incorporated the Lehigh Coal Company on October 21, 1818. With legal rights secured to enhance the river—backed by years of legislative support—they acquired partner Hauto’s interests in 1820 and subsequently dissolved LCC on April 21, merging its operations with the navigation company.

The lease agreement obligated them to supply a minimum of forty thousand bushels of coal annually to Philadelphia and surrounding markets. Despite widespread doubts about controlling the Lehigh River and the practicality of mining, funds were raised on three occasions to improve river navigation. By 1820, limited navigability was realized four years ahead of projections, allowing coal to be transported by mule track from Summit Hill to a loading chute at Mauch Chunk.

Building on this achievement, the two companies combined into the Lehigh Coal & Navigation Company, employing American Canal Era innovations such as canals, locks, and railways to efficiently transport coal to Philadelphia and beyond. On March 20, 1818, they obtained legislative authority for navigation using boats capable of carrying up to ten tons of coal. The Pennsylvania government closely oversaw progress, retaining the right to implement a full slack-water navigation system if deemed necessary.

Investor sentiment improved following a positive stockholder committee report on river enhancements; however, the nine-mile road connecting river to mines was considered impractical due to challenging terrain. Public opinion was divided: some dismissed coal mining as unrealistic but acknowledged benefits in river improvements; others doubted river enhancements would succeed but valued mining investment prospects.

This situation resulted in two interconnected entities—the Lehigh Navigation Company with $150,000 capital and the Lehigh Coal Company with $55,000—highlighting inland transportation’s vital role in commercial success. The Navigation Company constructed dams and retaining walls while the Coal Company developed America’s first roadway engineered by grade principles later applied in railway construction. To mitigate water shortages, White introduced sluice gates linking pools for reserve water storage.

By 1819, adequate water depth was maintained between Mauch Chunk and Easton, facilitating the merger into the Lehigh Coal and Navigation Company. By 1823, over two thousand tons of coal had been delivered to market, marking significant early growth in Pennsylvania’s coal industry.

Lehigh Navigation Company

Showcasing engineering innovation with the world’s inaugural iron wire suspension bridge over the Schuylkill River, White and Hazard collaborated with industrial partners to secure anthracite coal supplies. To enable efficient coal transport, they obtained navigation rights on the challenging Lehigh River and formed the Lehigh Navigation Company between 1817 and 1818 with intentions to provide consistent barge shipments to Philadelphia by 1824.

The company addressed earlier delivery failures and high expenses linked to the Lehigh Coal Mine Company, which struggled against imported bituminous coal competition. Following state approval in 1818, they rapidly installed locks, dams, and proprietary water control gates to regulate river navigation.

Under Josiah White’s direction, they engineered a descending navigation system utilizing innovative "bear trap" hydrostatic locks alongside artificial freshets that sustained water levels during dry periods. Infrastructure improvements included mule trails from Summit Hill mines as well as boat construction and docking facilities near Mount Pisgah.

By early 1819, Lehigh Navigation was transporting substantial volumes of coal ahead of schedule and maintained regular shipments by 1820. Coal was moved from Summit Hill mines downriver to Philadelphia and other markets, supporting regional development and satisfying increasing demand.

In 1820, after acquiring George Hauto’s shares, White and Hazard reorganized leases and merged the Lehigh Coal Mine Company with the Lehigh Coal Company. This consolidation granted control over approximately 10,000 acres spanning three valleys near Mauch Chunk (present-day Jim Thorpe) and Tamaqua. These holdings were merged with Lehigh Navigation to form Lehigh Coal & Lehigh Navigation in 1822, streamlining operations to strengthen market presence and accelerate growth in anthracite coal transportation.

Non-mining Enterprises

Between 1822 and 1865, managers White and Hazard adopted forward-thinking approaches to enhance business expansion and increase earnings. They embraced vertical integration strategies to better manage expenses and optimize profit margins. The firm consistently allocated resources to new ventures, either through direct investment or by acquiring affiliate companies, aiming to seize lucrative prospects and reinforce its competitive standing.

Grand Lehigh Canal – Upper Canal Division

The flood on June 6, 1862, revealed serious weaknesses in White’s canal system infrastructure. The dams and locks, constructed to facilitate coal barge navigation, formed reservoirs that, when overwhelmed by heavy rainfall, failed catastrophically, resulting in severe flooding and considerable fatalities. In the aftermath, state lawmakers barred the company from reconstructing the damaged canal segment, adversely affecting its transportation operations.

Railroads

Main source

Summit Hill and Mauch Chunk Railroad

In 1827, the enterprise finalized construction of a 9.2-mile gravity-powered railroad—the Mauch Chunk and Summit Hill Railroad—recognized as the second railroad in the United States. Developed swiftly atop a surveyed wagon trail foundation, this pioneering transportation solution enhanced coal shipment efficiency from mining sites to river ports.

The line traced a sloped path along Pisgah Ridge to a loading chute positioned over 200 feet above the canal banks at Mauch Chunk, streamlining coal logistics and fostering regional industrial development.

Room Run Railroad

The Room Run Railroad was a brief rail spur engineered by Josiah White within the Nesquehoning Valley.

Non-railroad Business Operations

During 1821–1823, the partners acquired critical expertise in canal construction and winter ice damage mitigation. The expensive repairs in 1821 led to restructuring as the Lehigh Coal & Navigation Company, which purchased George Hauto’s interest, leaving White and Hazard as principal proprietors who provided most of the additional funding. In 1823, the upper four locks of the Lehigh Navigation were reconstructed as large bi-directional trial locks.

White proposed a dual-direction lock canal system linking Mauch Chunk to Philadelphia in 1823; however, this plan was declined in favor of a state-sponsored Delaware Canal. Consequently, the company was compelled to rely on costly single-use coal arks and deplete timber resources while awaiting state infrastructure progress.

• Delaware Division Canal Company – Following its 1831 opening, which exposed significant leakage issues, state authorities enlisted Josiah White for repairs. By 1834, control passed to the Lehigh Coal & Navigation Company, which established the Lehigh Navigation Coal Company subsidiary to oversee both canals well into the 1930s.

By mid-1832, White’s team had resolved major leaks allowing resumed operations. This subsidiary managed extensive assets including approximately 8,000 acres of coal lands stretching from Jim Thorpe to Tamaqua, leases generating annual revenues exceeding $2 million from railroads, along with substantial stakes in power enterprises. This diversified asset base granted the company considerable market leverage and robust financial results.

Mill Parks

Before the 1815 right-of-way laws and the takeover of the struggling LCMC operations, founders White and Hazard—who originally owned mills and foundries—acted swiftly to secure fuel supplies for their enterprises. In 1814, they invested in the competing Schuylkill Canal, but delays in planning and financing frustrated them; it did not become operational until 1823, whereas their own company progressed sooner. White demonstrated his engineering prowess by inventing the Bear Trap lock-gate system, which generated artificial floods to help boats navigate rapids. His surveys of the Lehigh River revealed sites suitable for water-powered mills, and legislation granted the LNC control over the entire river until rights reverted to Pennsylvania in 1964.

After initial canal enhancements, severe winter damage during 1821–1822 drained LCN’s financial resources, compelling White and Hazard to raise additional funds. This led to dissolving both the LCC and LNC and forming the Lehigh Coal & Navigation Company. Capitalizing on their founders’ expertise, the company transformed waterpower locations into early industrial parks along its waterways. By 1840, Abbott Street near Lock 47 (currently part of Hugh Moore Park in Easton, Pennsylvania) housed nearly a dozen factories employing over 1,000 workers. This industrial expansion stimulated growth in Allentown and Bethlehem and reinforced connections with the Delaware Canal, which the company managed from 1834 onward.

Upper Lehigh Canal

Following revisions to the 1837 Main Line of Public Works legislation granting eminent domain authority, the Lower Lehigh Navigation was extended upriver by an additional distance via the Upper Lehigh Canal through the Lehigh Gorge, stretching from Jim Thorpe to White Haven. Completed in 1843, this extension boasted the greatest carrying capacity of any U.S. canal at that time.

Lehigh and Susquehanna Railroad

To establish a connection with the Susquehanna River at Pittston, just north of Wilkes-Barre, the company created a subsidiary railroad traversing difficult terrain. This project included a cable railroad known as the Ashley Planes and double-tracked lines running from Ashley to Pittston’s barge docks. It provided links to seven major railroads servicing the anthracite coal region. At the Ashley Planes summit, an assembly yard was connected at Mountain Top, Pennsylvania, with a steep double-track branch extending to White Haven. There, loading docks facilitated integration of multiple transportation modes feeding into an extension of the Lehigh Canal through the Lehigh Gorge. Backed by strong political support aimed at connecting Philadelphia and the Delaware River with Northern Coal Fields in Wyoming Valley and the Susquehanna basin, the Lehigh and Susquehanna Railroad was established with eminent domain powers. Both LC&N’s Lehigh Navigation and L&SRR were extended upriver through the Lehigh Gorge from Jim Thorpe to White Haven.

Other railroads

Between the late 1820s and mid-1830s, industrial leaders across Pennsylvania, Delaware, and South Jersey sought to connect their manufacturing centers with trans-Appalachian markets to compete against competitors like the B&O Railroad and Erie Canal. This initiative resulted in creating the Main Line of Public Works to support manufacturers in the Delaware Valley.

The company developed several key short line railways as joint ventures that tackled complex civil engineering challenges. Together with their original line—the Mauch Chunk & Summit Hill Railway—these were consolidated under the Lehigh and Susquehanna Railroad, which evolved into a holding entity owning and leasing vital rail corridors throughout northeast Pennsylvania.

Subsidiary shortlines

• Nesquehoning & Mahanoy Railroad: Drawing on experience from freight operations along both Lehigh and Delaware Rivers, this line overcame transportation bottlenecks by constructing a seven-mile grade through Nesquehoning Ridge. It connected Hazelton with Mahanoy Creek valleys near Tamaqua, Pennsylvania. The tracks extended into Schuylkill Valley, serving Reading’s industrial market.
• Panther Creek Railroad: Constructed to reach valuable coal deposits located 5–6 miles eastward up Panther Creek Valley.
• Hauto Tunnel: To alleviate expensive steep-grade coal transport on the Nesquehoning line, a mile-long tunnel was excavated through Nesquehoning Ridge leading to Lansford, Pennsylvania—which temporarily served as corporate headquarters. This tunnel provided three distinct coal transport routes until selling off the Mauch Chunk Switchback Railway, which had gained fame as the world’s first roller coaster tourist attraction.

Lehigh and New England Railroad

The acquisition of the Lehigh and New England Road allowed the corporation to terminate leasing agreements previously held with CNJ by assigning those rights to the newly formed subsidiary, thereby optimizing operational efficiency and broadening its market presence.

Decline

Lehigh Navigation ceased operations in 1932 after the expenses for upkeep 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 ventures with greater profitability. The drop in coal demand—attributable to the rise of diesel engines and alternative heating methods—led to a sharp decline in earnings. The company’s boards directed a gradual downsizing and divestiture of assets. In 1966, Greenwood Stripping Co. purchased the remaining coal holdings in Panther Creek Valley and later sold them to Bethlehem Mines Corp. in 1974.

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

New company

The legacy name continued within the anthracite mining sector through an independent organization established in 1988. This New Company was headed by former executive and shareholder James J. Curran Jr., who acquired Lehigh Coal from Bethlehem Mines in 1989. Throughout the 1990s, it maintained its position as the largest anthracite producer nationwide.

In 2000, due to a steep decline in coal prices, Lehigh Coal ceased operations and laid off 163 workers. The company reopened in 2001 after securing a $9 million loan from the USDA. During bankruptcy proceedings in 2010, creditor BET Associates, linked to Toll Brothers, purchased the company at auction. As of mid-2013, mining activities persisted at sites between Lansford and Nesquehoning, with the Lehigh Coal and Navigation Company name still displayed on property signage.

See also

• Lehigh Canal
• Lehigh and Susquehanna Railroad
• Panther Creek Valley
• Spider Bridge

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 railroad, the first to transport passengers for fare, the earliest extended railway (exceeding five miles), and acknowledged as both the first tourism railway and roller coaster, which inspired The Switchback—the inaugural amusement park roller coaster.