Lehigh Coal Mining Company

Lehigh Coal & Navigation Company

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

Lehigh Coal & Navigation Company was a mining and transportation enterprise based in Mauch Chunk (currently known as Jim Thorpe, Pennsylvania), operating from 1818 until it ceased operations in 1964. It was instrumental in the American Industrial Revolution, recognized as the first vertically integrated firm in the United States that combined resource extraction, transportation, and manufacturing processes.

18th century

In 1791, hunter Philip Ginter uncovered anthracite coal deposits on Pisgah Mountain near what is now Summit Hill, Pennsylvania. He disclosed this discovery to Colonel Jacob Weiss, who promised Ginter 300 acres in exchange for the precise location. Weiss then had the coal sample verified by prominent investors John Nicholson and Michael Hillegas. Despite initial disputes over land ownership, Weiss, Hillegas, and Nicholson became early stakeholders in the Lehigh Coal & Navigation Company (LCMC) established in 1792.

The company’s initial phase encountered managerial difficulties and logistical obstacles in transporting coal. Attempts were made to haul anthracite by mule to the Lehigh River, where rudimentary arks were constructed to navigate rapids en route to Easton, Pennsylvania. Although these efforts only intermittently succeeded in delivering coal to Philadelphia, they laid the foundation for LCMC’s future expansion. The firm ultimately acquired rights from the earlier Lehigh Coal Mining Company and leased operational privileges to strengthen its market position.

Lehigh Coal Mine Company

Established in 1792 by Michael Hillegas, Jacob Weiss, and John Nicholson, the Lehigh Coal Mine Company (LCMC) was formally incorporated in 1793. It secured roughly 10,000 acres around Panther Creek Valley and Pisgah Mountain with a focus on anthracite coal mining near present-day Summit Hill. The company’s business approach involved transporting coal via mule trains to arks on the Lehigh and Delaware rivers for shipment to Philadelphia markets.

Operating from 1792 through 1814, LCMC supplied coal to expanding markets but suffered considerable financial setbacks due to the perilous conditions of the unimproved Lehigh River, which hampered its economic viability. Attempts to enhance river navigation proved expensive and largely ineffective, restricting the company’s distribution capabilities and profitability.

Eventually, LCMC sold some of its coal to Josiah White and Erskine Hazard, industrialists managing a wire mill near Philadelphia. Impressed by the quality of the coal, White and Hazard purchased LCMC’s remaining barges, a transaction that influenced regional coal transportation infrastructure and fostered growth within the industry.

19th century

In 1815, Erskine Hazard, Josiah White, and George F. A. Hauto aimed to increase reliability in coal delivery by acquiring mining rights and improving navigation along the Lehigh River. By 1818, they established both the Lehigh Navigation Company and the Lehigh Coal Company to develop the Lehigh Canal and mine coal on lands previously held by LCMC. These entities merged into the Lehigh Coal and Navigation Company (LC&N) by 1820 after Hazard and White bought out Hauto’s interest.

The founders targeted clients requiring consistent fuel supplies for foundries and mills—including their own operations along the Schuylkill River. LC&N accelerated industrial development regionally by overcoming significant engineering challenges and constructing essential transportation and mining infrastructure, thereby playing a pivotal role during the U.S. Industrial Revolution.

The Lehigh Canal became operational in 1820 and underwent enhancements through 1829 that converted it into a two-way canal system. This facilitated efficient transport of anthracite coal—a critical energy source—to markets throughout the Northeastern United States. By the early 1830s, this canal spurred construction of four additional regional canals.

LC&N’s achievements alongside White’s engineering innovations helped initiate America’s Canal Age by encouraging investments in raw materials extraction and bulk transportation infrastructure. The company also supported development of the Schuylkill Canal project and pioneered anthracite mining across much of Southern Pennsylvania’s Coal Region. Introducing vertical integration strategies, LC&N recruited Welsh specialists to develop iron production using blast furnace technology in Lehigh Valley; it established steel furnaces and puddling furnaces that supplied its wire rope manufacturing facility—the first such operation nationally—located in Mauch Chunk.

In 1822, LC&N secured control over coal mines through a 20-year lease agreement—one of America’s earliest examples of interlocking corporate mergers. The company constructed the Lehigh and Susquehanna Railroad along with various shortline railroads including the innovative Ashley Planes system, enhancing vital transportation corridors that remain significant today. The Mauch Chunk and Summit Hill Railroad built in 1827 was among America’s earliest dedicated coal railroads.

LC&N’s vertically integrated model combined coal extraction, iron and steel production, wire rope manufacturing, and transportation infrastructure into a cohesive business strategy that created competitive advantages within energy supply and industrial materials markets. The visionary leadership of founders White and Hazard propelled growth through innovations in mining techniques and civil engineering.

Locally dubbed the "Old Company," LC&N established foundational infrastructure that influenced subsequent canal and railroad developments throughout the Northeast. Its corporate evolution through early mergers shaped its dominant position within anthracite coal production and transport services.

The entrepreneurial founders—Josiah White, Erskine Hazard, and miner George Hauto—leveraged their expertise to pioneer advances in mining technology and logistics essential for their business model's success. Their strategic investments positioned LC&N as a leading force in Pennsylvania’s coal industry throughout the nineteenth century.

Lehigh Coal Company

White and Hazard encountered skepticism from investors regarding their mining venture at Summit Hill, which many considered unfeasible. To obtain necessary capital, they established the Lehigh Coal Company (LCC) alongside the Lehigh Navigation Company, pursuing legislative authorization to enhance navigation on the Lehigh River.

In 1817, they secured a lease on the Lehigh Coal Mine properties and formally incorporated the Lehigh Coal Company in 1818. They sought legal permission to improve river navigation, building on existing statutes. After purchasing their partner Hauto’s share in 1820, they chose to dissolve the Lehigh Coal Company.

The lease agreement obligated them to supply a minimum of forty thousand bushels of coal annually to Philadelphia and its vicinity. Despite widespread doubts about controlling the Lehigh River and mining viability, funding was successfully raised on three occasions to advance navigation improvements. By 1820, partial navigability was achieved four years ahead of expectations, with coal transported via mule-drawn tracks from Summit Hill to a loading chute at Mauch Chunk.

Capitalizing on these advancements, the entities merged into the Lehigh Coal & Navigation Company, implementing American Canal Era innovations—such as canals, locks, and railways—to streamline coal transportation to Philadelphia and beyond.

On March 20, 1818, the company obtained authorization to transport boats carrying up to ten tons of coal. The Pennsylvania government maintained close oversight of progress, reserving authority to mandate a comprehensive slack-water navigation system if necessary.

Capital acquisition was contingent upon stockholders’ approval regarding project viability. While river improvements garnered support, the nine-mile road connecting river to mines was viewed as impractical. Public opinion was divided: some dismissed coal mining as unrealistic but endorsed river enhancements; others doubted river navigation success yet believed in coal mining’s potential.

This division resulted in the establishment of two interconnected companies—the Lehigh Navigation Company with $150,000 in capital and the Lehigh Coal Company with $55,000—underscoring the vital connection between commercial ventures and inland transport infrastructure. The Navigation Company constructed dams and retaining walls; meanwhile, the Coal Company built America’s first roadway engineered by grade over total distance and elevation drop. To mitigate water shortages, White introduced sluice gates linking pools to maintain reserve water supplies.

By 1819, adequate water depth was maintained between Mauch Chunk and Easton. The companies consolidated as the Lehigh Coal and Navigation Company. By 1823, they had delivered more than two thousand tons of coal to market, marking substantial progress in regional coal transport and infrastructure expansion.

Lehigh Navigation Company

Leveraging their technical expertise demonstrated by constructing the world’s first iron wire suspension bridge over the Schuylkill River, White and Hazard partnered with industrialists to ensure a dependable anthracite supply.

To facilitate efficient coal transport, they secured rights to navigate the challenging waters of the Lehigh River. Between 1817 and 1818, they founded the Lehigh Navigation Company with intentions to provide consistent barge shipments of coal to Philadelphia by 1824. The existing Lehigh Coal Mine Company faced difficulties supplying anthracite cost-effectively due to losses and unreliable deliveries.

Following state approval in 1818, immediate efforts commenced to install locks, dams, and innovative water management gates aimed at taming the river. An 1884 historical account describes how Josiah White personally oversaw channel improvements using wing dams and artificial freshets created by dams at Mauch Chunk (present-day Jim Thorpe), employing his innovative sluice gates to regulate water flow for navigation purposes.

They also established mule trails from Summit Hill coal deposits and developed docks, boat-building yards, and canal head facilities. The canal’s upper terminus was strategically positioned above Mount Pisgah’s gap to optimize timber and coal handling for slack water navigation.

Within two years, White and Hazard completed a descending navigation system utilizing their patented "bear trap" hydrostatic locks that enabled coal boats to traverse via controlled artificial floods. Coal mined from Summit Hill and Panther Creek floated downstream where barges were sold for fuel or further transport.

By early 1819, significant coal shipments were underway ahead of schedule, achieving regular delivery by 1820. Coal tonnage surged rapidly—from 365 short tons in 1820 to over 40,000 tons by 1831—reflecting robust demand and business expansion.

In 1820, after acquiring George Hauto’s interest, the company merged with the Lehigh Coal Company but was officially rechartered only in 1822. By late 1820, improvements along the Lehigh Valley waterway allowed reliable transport of large coal volumes to White’s mills and Philadelphia markets, resulting in a temporary oversupply.

Following buyouts and lease renegotiations, White and Hazard consolidated ownership of roughly 10,000 acres spanning three valleys from Mauch Chunk to Tamaqua. They combined the Lehigh Coal Company with the Navigation Company under incorporation as Lehigh Coal & Lehigh Navigation in 1822—creating an integrated business model that reinforced their market position and competitive edge in anthracite coal distribution.

Non-mining enterprises

Between 1822 and 1865, managers White and Hazard implemented progressive approaches aimed at expanding business operations and increasing profits. They adopted vertical integration as a fundamental strategy to reduce expenses and enhance earnings. The company regularly allocated capital to nascent ventures, either by direct investment or through acquiring subsidiaries once these businesses demonstrated viability, market promise, or strategic importance.

Grand Lehigh Canal – Upper Canal Division

The flood on June 6, 1862, revealed significant weaknesses within White's canal system. The dams and locks formed large reservoirs of water that, when overwhelmed by heavy rainfall, resulted in catastrophic flooding and considerable loss of human life. John J. Leisenring Jr., who was Superintendent at the time, approximated the death toll at around 200 between White Haven and Lehighton. Following this disaster, the state legislature banned the company from reconstructing the affected canal segment.

Railroads

Main source

Summit Hill and Mauch Chunk Railroad

Completed in 1827, the company constructed a 9.2-mile gravity railroad known as the Mauch Chunk and Summit Hill Railroad—America’s second railroad. It was swiftly built along a previously surveyed wagon path and utilized wooden sleepers laid on gravel with rolled iron rails to efficiently convey coal from mines to river docks. This transportation advancement greatly improved coal distribution efficiency and expanded market access.

This gravity railroad linked Summit Hill on Pisgah Ridge to a loading chute atop Mount Pisgah, positioned more than 200 feet above the canal banks, streamlining coal handling at Mauch Chunk’s upper terminal yard.

Room Run Railroad

The Room Run Railroad was a short rail line engineered by Josiah White originating from a ravine in Nesquehoning Valley.

Non-railroad enterprises

From 1821 to 1823, the partners developed expertise in canal construction and managing ice-related damages, acknowledging that some winter deterioration was unavoidable. This understanding prompted additional funding and reorganization into the Lehigh Coal & Navigation Company in 1821. White and Hazard retained majority control after purchasing George Hauto’s shares and personally financing repairs. In 1823, the top four locks on the Lehigh Navigation were reconstructed as experimental models for a two-way lock system.

In 1823, White suggested constructing a bi-directional lock canal stretching from Mauch Chunk to Philadelphia; however, the legislature rejected this proposal in favor of building the Delaware Canal. Consequently, Lehigh Coal & Navigation had to depend on expensive single-use coal arks and extensive timber harvesting while awaiting governmental progress.

• Delaware Division Canal Company – Pennsylvania’s canal built along the Delaware River from Easton to Bristol opened in 1831 but suffered from severe leakage issues. The state appointed Josiah White to carry out repairs, leading to operations being managed by Lehigh Coal & Navigation Company starting in 1834. This development resulted in forming the Lehigh Navigation Coal Company, a subsidiary overseeing both canals well into the 1930s. By mid-1832, restoration efforts allowed operations to resume.

The Lehigh Navigation Coal Company controlled considerable holdings including 8,000 acres of coal properties spanning Jim Thorpe to Tamaqua, three leased railroads generating over $2 million annually in rent, extensive real estate in the Poconos region, and substantial shares in National Power and Light Co., thereby solidifying its market position and competitive strength.

Mill Parks

Before the 1815 legislation granting right-of-way and the acquisition of the struggling LCMC operations, founders White and Hazard—originally owners of mills and foundries—secured fuel supplies essential for their enterprises. In 1814, they invested in the competing Schuylkill Canal, but dissatisfaction grew due to its inadequate planning and funding setbacks; it only became operational in 1823, after their own company had already introduced advanced canal technology. White pioneered the Bear Trap lock-gate mechanism, which enabled controlled artificial flooding to navigate rapids, showcasing his engineering innovation. The company was granted ownership of the entire Lehigh River through a legislative act, recognizing its value for water-powered mills—a critical asset maintained until 1964.

After initial canal enhancements and a financially damaging winter during 1821–1822 that drained cash reserves, White and Hazard sought additional funding. This effort resulted in dissolving both the LCC and LNC and forming the Lehigh Coal & Navigation Company to improve fiscal stability. Utilizing the founders’ expertise, the company transformed waterpower locations into industrial parks along its waterways. By 1840, the Abbott Street district near Lock 47 (now part of Hugh Moore Park in Easton, Pennsylvania) employed upwards of 1,000 workers across nearly a dozen factories, driving industrial expansion in Allentown and Bethlehem. Additionally, after 1834, the company operated the Delaware Canal on behalf of Pennsylvania, broadening its regional market influence amid the Industrial Revolution.

Upper Lehigh Canal

Authorized by eminent domain powers granted in 1837, the Lower Lehigh Navigation extended approximately upriver via the Upper Lehigh Canal through the Lehigh Gorge, connecting Jim Thorpe to White Haven. Completed in 1843, this extension boasted the highest carrying capacity of any canal in the United States at that time, solidifying its competitive edge in transporting anthracite coal.

Lehigh and Susquehanna Railroad

To establish a link with the Susquehanna River at Pittston, located just north of Wilkes-Barre, the company created a subsidiary railroad designed to traverse difficult terrain. This undertaking included the cable-driven Ashley Planes and double-track rail lines connecting Ashley to Pittston’s barge docks. The summit of Ashley Planes led to an assembly yard at Mountain Top, Pennsylvania, with a steep branch line extending to White Haven, facilitating integration between rail and canal transport through the Lehigh Gorge.

Motivated by strategic objectives to connect Philadelphia and the Delaware River with Northern Coal Fields in Wyoming Valley and access to the Susquehanna River, the company established the Lehigh and Susquehanna Railroad under eminent domain authority. Both this railroad and LC&N’s Lehigh Navigation extended upriver from Jim Thorpe to White Haven via the gorge, enhancing global operations and strengthening their dominance in coal transportation markets.

Additional Railroads

Between the late 1820s and mid-1830s, industrial and civic leaders across Pennsylvania, Delaware, and South Jersey aimed to link their manufacturing centers with markets beyond the Appalachian Mountains. To rival the B&O Railroad and Erie Canal, they initiated the Main Line of Public Works project, designed to support manufacturers in the Delaware Valley.

This initiative resulted in a network of short line railroads developed as joint ventures, overcoming earlier engineering obstacles. These lines, including the original Mauch Chunk & Summit Hill Railway, were eventually unified under the Lehigh and Susquehanna Railroad. This holding company now owns and leases track rights throughout vital rail corridors in northeastern Pennsylvania.

Subsidiary Short Lines

• Nesquehoning & Mahanoy Railroad: Utilizing expertise gained from freight operations along the Lehigh River and Delaware River, this railroad addressed transportation challenges in Panther Creek Valley by constructing a seven-mile incline crossing Nesquehoning Ridge to access Hazelton and Mahanoy Creek valleys near Tamaqua, Pennsylvania. The line extended along the Schuylkill Valley, serving industrial centers in Reading, Pennsylvania.
• Panther Creek Railroad: Established to reach coal deposits located 5 to 6 miles eastward along Panther Creek Valley from Tamaqua.
• Hauto Tunnel: To minimize expensive coal transport over steep terrain, a mile-long tunnel was excavated through Nesquehoning Ridge leading into downtown Lansford, Pennsylvania, which briefly functioned as the company's headquarters. This tunnel facilitated three separate coal shipment routes from mines situated on Pisgah Ridge and Nesquehoning Mountain until the company sold the Mauch Chunk Switchback Railway, notable as the first-ever roller coaster and an early tourist attraction.

Lehigh and New England Railroad

The purchase of the Lehigh and New England Road allowed the company to terminate its lease agreements with CNJ, transferring those rights to this new subsidiary. This transition simplified operations while broadening market access.

Decline

Lehigh Navigation ceased operations in 1932 after maintenance expenses surpassed income.

By the mid-1900s, Lehigh Coal & Navigation Company had become predominantly dependent on coal revenues, with its subsidiaries managing railroads and other profitable sectors. The drop in coal demand—triggered by diesel locomotive adoption and alternative heating methods—caused significant profit declines. Company boards oversaw a gradual downsizing and asset liquidation. In 1966, Greenwood Stripping Co. purchased remaining coal holdings in Panther Creek Valley, later selling them to Bethlehem Mines Corp. in 1974.

In 1986, after divesting its final enterprise, Cella's Chocolate Covered Cherries, to Tootsie Roll, shareholders formally dissolved the company.

Reestablishment

The corporate identity was revived by an independent firm incorporated in 1988 under former executive and shareholder James J. Curran Jr., who acquired Lehigh Coal from Bethlehem Mines in 1989. Throughout the 1990s, this reincarnated Lehigh Coal maintained its status as the largest anthracite producer in the United States.

Confronted with falling coal prices, Lehigh Coal halted operations in 2000, resulting in layoffs of 163 workers. It resumed activity in 2001 following a $9 million loan from the USDA. During bankruptcy proceedings in 2010, BET Associates—affiliated with Toll Brothers—purchased the company at auction. As of mid-2013, mining continued on company-owned properties between Lansford and Nesquehoning.

External links

• Switch-Back Gravity Railroad: Exclusive images showcasing the Lehigh Coal & Navigation's Mauch Chunk Switchback Railway, distinguished as North America's second railway to operate continuously, the pioneer in transporting passengers and fare-paying riders, and acknowledged as the earliest tourism railway and roller coaster, which served as the inspiration for The Switchback amusement attraction.