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

Lehigh Coal & Navigation Company was a mining and logistics enterprise based in Mauch Chunk (currently Jim Thorpe, Pennsylvania), operating from 1818 until its closure in 1964. It was instrumental during the American Industrial Revolution and distinguished itself as the first vertically integrated firm in the United States, combining coal extraction, transportation, and manufacturing processes.

18th century

Anthracite coal was first discovered in 1791 by hunter Philip Ginter on Pisgah Mountain near what is now Summit Hill, Pennsylvania. He quickly reported this find to Colonel Jacob Weiss, who offered Ginter 300 acres in exchange for revealing the exact location. Weiss then presented a coal sample to investors in Philadelphia, including John Nicholson and Michael Hillegas, for verification. After confirmation, Ginter obtained land rights but eventually lost them due to a prior claim on the property.

By 1792, Weiss, Hillegas, and Nicholson became the initial backers of the Lehigh Coal & Navigation Company (LCMC). Early management faced challenges due to absentee leadership. Initial operations focused on extracting coal and transporting it by mule teams to the Lehigh River, where rudimentary arks were built to navigate rapids en route to the Delaware River at Easton. The Lehigh Coal Mining Company experienced sporadic success in delivering anthracite to Philadelphia; its operational rights were later transferred to LCMC, which leased them from its predecessor.

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. It acquired approximately 10,000 acres around Panther Creek Valley and Pisgah Mountain for anthracite coal mining. The company’s primary approach involved moving coal from Pisgah Mountain near present-day Summit Hill to Philadelphia using mule trains and arks along the Lehigh and Delaware rivers.

Operating intermittently between 1792 and 1814, LCMC sold all mined coal but suffered considerable financial losses due to dangerous navigation conditions on the unimproved Lehigh River. Attempts to enhance river navigation were expensive and repeatedly abandoned, negatively impacting profitability.

Eventually, LCMC sold coal supplies to Josiah White and Erskine Hazard, operators of a wire mill near Philadelphia. Recognizing the high quality of the fuel, White and Hazard acquired LCMC’s remaining barges, initiating a shift that influenced future advancements in regional coal transport and industrial expansion.

19th century

In 1818, entrepreneurs Erskine Hazard, Josiah White, and George F. A. Hauto established the Lehigh Navigation Company alongside the Lehigh Coal Company with the goal of constructing the Lehigh Canal and mining coal on lands owned by LCMC. By 1820, after purchasing Hauto’s interest, Hazard and White merged these entities into the Lehigh Coal and Navigation Company (LC&N). Their strategy centered on ensuring a reliable anthracite supply for foundries and mills throughout the Northeastern United States, fostering regional industrial development through innovative engineering projects and transportation infrastructure.

The Lehigh Canal commenced operation in 1820 and expanded into a two-way canal by 1829, greatly improving coal shipment capacity to major markets. LC&N’s groundbreaking work in canal engineering and coal extraction stimulated investment in raw material sourcing and bulk transport infrastructure, influencing other ventures such as the Delaware and Hudson Canal and Schuylkill Canal projects. Additionally, the company secured a two-decade lease on mines owned by the Lehigh Coal Mining Company, reinforcing its resource foundation.

Expanding its transportation capabilities further, LC&N constructed the Lehigh and Susquehanna Railroad along with other shortline railroads like the Ashley Planes—forming essential transportation corridors that remain significant today. The company vertically integrated production by developing blast furnace technology within the Lehigh Valley to manufacture steel used for its pioneering wire rope products—the first of their kind produced in America—which were then distributed widely.

In 1822, LC&N consolidated several interconnected companies into one entity, representing one of America’s earliest corporate mergers. By 1827, it completed construction of the Mauch Chunk and Summit Hill Railroad—the nation’s second railroad—improving coal delivery efficiency substantially. The founders’ visionary leadership combined with technical innovation positioned LC&N as a dominant competitor within the anthracite coal sector, controlling vast coal reserves across Southern Pennsylvania’s Coal Region.

Locally referred to as the "Old Company," LC&N established foundational practices in industrial transportation and coal mining that shaped future industry standards nationwide.

Lehigh Coal Company

White and Hazard encountered skepticism from investors regarding their mining venture at Summit Hill, which many deemed unfeasible. To obtain necessary capital, they established two corporations: the Lehigh Coal Company (LCC) and the Lehigh Navigation Company, simultaneously seeking legislative authorization to enhance navigation along the Lehigh River.

They leased the coal mine properties in 1817 and officially incorporated the LCC on October 21, 1818. They submitted petitions for navigation improvement rights, building on existing laws. In 1820, after purchasing partner Hauto’s shares, White and Hazard dissolved the LCC on April 21, merging it into the newly formed Lehigh Coal and Navigation Company.

The lease agreement mandated an annual delivery of no less than forty thousand bushels of coal to Philadelphia along with a minimal rental fee. Despite widespread doubts about controlling the Lehigh River’s flow and the practicality of mining operations, capital was raised on three occasions to finance river improvements. By 1820, partial navigability was achieved four years earlier than planned, with coal hauled by mule-drawn carts from Summit Hill to Mauch Chunk.

Following the merger, the company embraced cutting-edge American Canal Era innovations—incorporating canals, locks, and rail systems—to optimize coal transport to Philadelphia and further markets. On March 20, 1818, legislative authority was granted to operate navigation accommodating boats carrying up to ten tons of coal. The state retained the right to implement a comprehensive slack-water navigation system if service standards were not met.

Investor trust increased after a positive committee evaluation of river enhancements, although doubts about mining profitability persisted. This situation prompted the creation of two interconnected firms: the Lehigh Navigation Company with $150,000 in capital and the Lehigh Coal Company with $55,000 in capital—demonstrating early American commerce’s dependence on inland transport infrastructure. The Navigation Company constructed dams and retaining walls while the Coal Company developed America’s first consistently graded roadway, which later influenced railroad engineering. To mitigate water scarcity issues, White introduced sluice gates linking pools to maintain reserve water supplies.

By 1819, sufficient water depth was maintained between Mauch Chunk and Easton. The two companies merged into the Lehigh Coal and Navigation Company. By 1823, they had transported over two thousand tons of coal to market, signifying substantial progress in coal transportation infrastructure.

Lehigh Navigation Company

Leveraging their engineering prowess showcased by constructing the world’s first iron wire suspension bridge over the Schuylkill River, White and Hazard partnered with industrial leaders to secure a reliable anthracite supply. To facilitate efficient coal shipment, they negotiated navigation rights on the challenging Lehigh River, founding the Lehigh Navigation Company between 1817 and 1818. Their objective was to deliver consistent barge shipments of coal to Philadelphia by 1824, overcoming previous delivery failures by the mismanaged Lehigh Coal Mine Company (LCMC), which struggled to compete cost-effectively with imported bituminous coal.

Following state approval in 1818, construction commenced on locks, dams, and weirs incorporating innovative water control gates designed by White. Their approach narrowed river channels using wing dams to sustain navigable depths. To counter drought-related water shortages, White implemented artificial freshets through dams and sluice gates that released controlled water flows enabling loaded barges to travel downstream.

Infrastructure improvements included upgrading mule trails from Summit Hill mines and establishing docks plus boat-building yards near the canal head above Mount Pisgah in what is now Jim Thorpe, Pennsylvania. White and Hazard developed a descending navigation system featuring "bear trap" hydrostatic locks that efficiently transported coal from mines via river barges destined for local sales or distribution throughout the Delaware basin.

By early 1819, shipments commenced ahead of schedule with regular deliveries established by 1820. Coal volumes transported surged rapidly—from 365 short tons in 1820 to more than 40,000 short tons by 1831—reflecting growing market demand and operational expansion. In 1820, after removing co-founder George Hauto from leadership, the company merged with the Lehigh Coal Company, consolidating ownership of approximately 10,000 acres spanning three valleys from Mauch Chunk to Tamaqua. This union resulted in Lehigh Coal & Lehigh Navigation in 1822, streamlining operations and reinforcing their dominant position in anthracite coal supply and transportation.

Diversified Business Activities

Between 1822 and 1865, managers White and Hazard implemented forward-thinking approaches aimed at expanding the company's growth and increasing its income. They adopted vertical integration to reduce expenses and enhance profit margins. Frequently, the enterprise invested in promising opportunities either through direct involvement or by acquiring subsidiary firms to fortify its market standing and broaden its asset base.

Grand Lehigh Canal – Upper Canal Division

The flood on June 6, 1862, revealed significant weaknesses in White's canal infrastructure. The dams and locks designed for coal barge passage also formed large reservoirs which, upon failure during heavy rainfall, resulted in catastrophic floods with considerable fatalities. After this event, state authorities banned the company from reconstructing the damaged canal structures.

Railway Systems

Main source

Summit Hill and Mauch Chunk Railroad

Constructed in 1827, this 9.2-mile gravity railroad—America’s second of its kind—linked the coal mines at Summit Hill to Mauch Chunk. Built using wooden ties set on a gravel foundation, this highly effective transportation system greatly enhanced coal delivery to river barges. The project benefited from earlier survey efforts conducted by White which accelerated its completion.

The gravity railroad extended from Summit Hill along Pisgah Ridge to Mount Pisgah, ending more than 200 feet above the canal banks at Mauch Chunk’s loading chute—serving as a vital component in the company’s integrated coal transport strategy.

Room Run Railroad

The Room Run Railroad was a brief rail line constructed by Josiah White originating from a ravine within the Nesquehoning Valley.

Non-Railroad Enterprises

During the period from 1821 to 1823, the partners acquired essential knowledge regarding ice-related damage and canal construction challenges, acknowledging that some winter deterioration was unavoidable. The requirement for funds to cover repairs in 1821 led to restructuring into the Lehigh Coal & Navigation Company, which purchased George Hauto's stake, positioning White and Hazard as majority shareholders after substantial personal investment. In 1823, four upper locks on the Lehigh Navigation were reconstructed as experimental models featuring a bi-directional lock design.

In 1823, White suggested constructing a two-way lock canal linking Mauch Chunk to Philadelphia via the Lehigh and Delaware Rivers; however, the legislature declined this proposal in 1824, opting instead to develop the Delaware Canal. Consequently, the company had to invest heavily in one-way coal arks and deplete timber resources while awaiting state infrastructure development.

• Delaware Division Canal Company – Following severe leakage issues with the state-built canal upon its 1831 opening, Josiah White was tasked with repairs. By 1834, his enhancements enabled operational use, leading the Lehigh Coal & Navigation Company to oversee this project through its subsidiary Lehigh Navigation Coal Company. This entity managed both canals well into the 1930s.

By mid-1832, sufficient leak repairs allowed operations to commence. The Lehigh Navigation Coal Company (LNC Co.) was established as an independently managed subsidiary responsible for canal administration. At its height, LNC controlled approximately 8,000 acres of coal properties within key anthracite regions and leased railroads generating annual revenues exceeding $2 million. Its rail connections linked coal mines with major commercial centers and supported local cement manufacturing facilities. Furthermore, LNC possessed extensive land holdings in the Poconos and significant shares in what evolved into Pennsylvania Power & Light Co., reinforcing its market dominance and financial strength.

Mill Parks

Before the 1815 right-of-way legislation and their acquisition of the struggling LCMC operations, founders White and Hazard—originally owners of mills and foundries—acted quickly to secure fuel supplies for their enterprises. In 1814, they invested in the competing Schuylkill Canal, but became dissatisfied with its inadequate planning and financing, which postponed its opening until 1823, while their own company was already operational. White engineered the innovative Bear Trap lock-gate, which generated an artificial flood to help boats navigate rapids. Through surveying the Lehigh River, he pinpointed sites suitable for water-powered mills, and legislation granted the LNC ownership of the entire river until rights reverted back to Pennsylvania in 1964.

After initial canal enhancements, severe winter damage during 1821–1822 drained LCN's financial reserves, compelling White and Hazard to seek new investment. This resulted in dissolving both the LCC and LNC and forming the Lehigh Coal & Navigation Company. Drawing on expertise from founders involved with the Little Schuylkill River, they transformed waterpower locations into early industrial parks. By 1840, the Abbott Street vicinity near Lock 47 (currently within Hugh Moore Park in Easton, Pennsylvania) employed over a thousand workers across nearly twelve factories, driving industrial expansion in Allentown and Bethlehem. Additionally, managing the Delaware Canal after 1834 further integrated industry with regional transportation.

Upper Lehigh Canal

Following legislation in 1837 granting eminent domain powers, the Lower Lehigh Navigation was extended upriver by approximately via the Upper Lehigh Canal through the Lehigh Gorge from Jim Thorpe to White Haven, completed in 1843. This extension provided it with the greatest carrying capacity of any canal in the United States at that time.

Lehigh and Susquehanna Railroad

Utilizing consolidated legislative backing, the company established a subsidiary railroad connecting to the Susquehanna River at Pittston, overcoming challenging terrain. This multi-modal system featured cable-driven Ashley Planes and double tracks linking Ashley to Pittston’s barge docks. The network connected with seven major railroads transporting anthracite from the valley. The Ashley Planes summit connected to an assembly yard at Mountain Top, Pennsylvania, which fed a steep branch line to White Haven, Pennsylvania, where loading docks interfaced with an extension of the Lehigh Canal running through the demanding Lehigh Gorge. Empowered by eminent domain authority, the Lehigh and Susquehanna Railroad established vital links between Philadelphia, the Delaware River, Northern Coal Fields in Wyoming Valley, and the Susquehanna River, strengthening LC&N’s seamless transport infrastructure upriver through the Lehigh Gorge.

Other railroads

From the late 1820s through mid-1830s, industrial leaders in Pennsylvania, Delaware, and South Jersey aimed to connect their manufacturing centers with trans-Appalachian markets. To rival competitors such as the B&O Railroad and Erie Canal, they initiated the Main Line of Public Works supporting manufacturers within the Delaware Valley.

The company developed a series of strategic short-line railroads through joint ventures that overcame complex civil engineering challenges. These lines, together with their original railway—the Mauch Chunk & Summit Hill Railway—were consolidated under the Lehigh and Susquehanna Railroad, which became a holding entity owning and leasing essential rail corridors in northeastern Pennsylvania.

Subsidiary shortlines

• Nesquehoning & Mahanoy Railroad: Applying engineering know-how gained from freight operations along both the Lehigh River and Delaware River, this line addressed transportation constraints by constructing a seven-mile grade over Nesquehoning Ridge to reach Hazelton and Mahanoy Creek valleys. It served industrial centers like Tamaqua, Pennsylvania and connected with the Schuylkill Valley near Reading, Pennsylvania.
• Panther Creek Railroad: Extended rail lines from Tamaqua eastward by 5–6 miles into Panther Creek Valley to access significant coal deposits.
• Hauto Tunnel: To reduce expensive shipments over steep grades on the Nesquehoning route, a one-mile tunnel was excavated through Nesquehoning Ridge into downtown Lansford, Pennsylvania, which briefly served as corporate headquarters. This infrastructure supported three coal transportation routes until the sale of the Mauch Chunk Switchback Railway, which had evolved into a pioneering tourist attraction—the world's first roller coaster.

Lehigh and New England Railroad

The acquisition of the Lehigh and New England Road allowed the company to terminate its leasing agreements with CNJ by assigning rights to this newly formed subsidiary, thereby optimizing operations and broadening its railway system.

Decline

By the mid-1900s, the Lehigh Coal & Navigation Company had transitioned from a varied business approach to a heavy dependence on coal-generated income, with its subsidiaries overseeing railroads and more lucrative divisions. The decreasing demand for coal—prompted by the rise of diesel engines and alternative heating methods—substantially diminished profitability. Over time, the company steadily downsized, divesting various assets. In 1966, Greenwood Stripping Co. purchased the remaining coal holdings in Panther Creek Valley, which were subsequently sold to Bethlehem Mines Corp. in 1974. The company ceased operations in 1986 after selling off its final enterprise, Cella's Chocolate Covered Cherries, to Tootsie Roll.

New company

An independent organization founded in 1988, though legally distinct, resurrected the Lehigh Coal and Navigation name as the New Company. Under the leadership of former executive and shareholder James J. Curran Jr., who obtained it from Bethlehem Mines Corp. in 1989, it became the foremost anthracite coal producer in the United States throughout the 1990s. Nevertheless, a steep decline in coal prices led to a shutdown in 2000, resulting in 163 job losses. The business resumed operations in 2001 following a $9 million loan from the U.S. Department of Agriculture. During bankruptcy proceedings in 2010, BET Associates—connected to Toll Brothers—acquired it through auction. As of mid-2013, mining activities continued on sites between Lansford and Nesquehoning, retaining EPA permits under the historic company designation.

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 and the first to transport fare-paying passengers, regarded as the earliest tourism railway and a forerunner to modern roller coasters.