USA > Pennsylvania > Cambria County > History of Cambria County, Pennsylvania, Volume I > Part 37
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404
HISTORY OF CAMBRIA COUNTY.
On July 10, 1850, Mr. King sold his interest in the Bens- creek furnace to Dr. Shoenberger, and on September 17, 1852, sold him his one-fourth interest in the Sharon furnace. These sales did not affect the other partnership property.
No coke was made here in those days, and it was necessary to use charcoal in the furnaces; consequently a large amount of timber land was required, which the firm owned to the extent of about twenty-five thousand acres.
The machinery for making a blast was very crude and to bank a furnace was a dangerous undertaking, in consequence of which it was kept going day and night to prevent a "chill." Subsequently improved appliances were introduced by which the matter could be safely controlled and operation sus- pended temporarily. A furnace in Blair county was the first to introduce the new machinery which permitted work to cease on Sundays, consequently to this day the place is called "Sabbath Rest."
On February 14, 1847, the partners in Mill Creek and Bens Creek furnaces were George S. King, P. Shoenberger and John Bell. They made the following list of lands belonging to these furnaces, located in Conemaugh townships of both Somerset and Cambria counties :
"2 tracts purchased of Oliver Woods and George Gates 811 acres.
1 tract of David Shrock 150
3 tracts of David T. Storm 1,320
1 tract warranted in name of J. Bell. 41
1 tract of Jonas Yodder 2181/2
2 tracts of William R. Thompson 819
1 tract of John Wertz
271
3 tracts of Jacob Miltenberger 1,038
1 tract of C. Hershberger 75
1 tract of John Alwine 100
1 tract of Garret Ream .. 2821%
6 tracts of King & Shoenberger 2,500
7,626 acres."
Each of these furnaces had an output of from four to five tons of pig metal per day, the market value of which was from $22 to $25 per ton in Pittsburg. Sometimes it was sold as low as $17 and at other times bringing $30, but its value was always about twelve per cent less than other metals on account of its hardness, which will be referred to in detail hereafter.
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HISTORY OF CAMBRIA COUNTY.
At this time, King & Shoenberger were producing about one hundred and twenty-five tons of pig metal per week, of a market value of about $3,000. They had an agent in Pittsburg and a metal yard, to which they shipped it by the Pennsylvania canal, but on account of its brittleness they had some difficulty in selling it or exchanging it for dry goods and groceries.
By itself it did not make good bar iron, but when mixed with Juniata or Hanging Rock pig, or other softer metals, in proportion of one-fourth Cambria, it made the best iron in the market, especially for nails; but the skill for making proper mixtures was not as perfect then as now, nor was it so scien- tifically looked after.
The local managers of the several furnaces in the order of their service, were: Cambria, John Galbreath, George Long and James Cooper; Benscreek, Samuel Bracken and William McCormick; Blacklick, John Mathiott and David F. Gordon; Millcreek, John Bell, Gordon Clifford, John Stewart and W. L. Shryock.
After an abandonment of about forty six years, the furnace at Millcreek was the only one that could be recognized as ever having been used. It stood about four miles from Johnstown, on the westerly side, and not far from the source of the Mill- creek, a beautiful mountain rivulet.
The old stack was recently torn down. In construction it was thirty feet square at the base, and tapering to a height of forty-five feet, the inside was shaped something like an egg, with the slender part at the top. It rested on the bosh, so that the raw material would drop as it was consumed. Many of the stones were two feet square and four feet in length. Some of the fire-bricks which rested on the bosh had been taken out to a height of five feet, but from there to the top of the stack they seemed to be as perfect when torn down as when put in place. The inside of the bosh was about four feet square. The tuyere, where the engine was located, was on the northerly side of the stack, and the casting house, 30 by 40 feet, was on the easterly side. The arch on the easterly side was about twelve feet wide, while those on the northerly and southerly sides were about eight feet.
On the westerly side was the bridge house, and above it on the hillside were the charcoal beds. Charcoal as fuel for fur- naces was abandoned for coke forty years ago, therefore a charcoal kiln is a matter of interest. These beds seem to have
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HISTORY OF CAMBRIA COUNTY.
been about twenty-five or thirty feet square. Logs of wood of almost any variety were placed end to end, like a V inverted, with a draft and a vent to permit combustion for a while, after which the air would be excluded by covering the wood with
Ritter Furnace, near Vintondale. Abandoned in 1857.
earth. After several hours' smouldering the covering would be removed, and the charcoal, when properly treated, would consist of carbon mixed with inorganic ash.
The Benscreek Furnace has been entirely obliterated, and nothing remains of it except the level ground on the hillside, to
407
HISTORY OF CAMBRIA COUNTY.
mark where the stack stood. A small portion of the Cambria Furnace stack remains.
At the time the erection of the Cambria rolling mill was begun, the projectors also commenced to build four coke fur- naces at a point below the mill, but they were completed by Wood, Morrell & Co.
"We give the product of two of the Cambria Iron Company's Furnaces last week, as follows:
"Furnace No. 2 made 188 tons, 800, and 2 quarters.
"Furnace No. 3 made 201 tons, 200.
"Now, that's what we call making iron by the wholesale. And they could have made more-at least No. 2 would have yielded as much as the other one, but she was with smaller sized tuyeres than No. 3, and so did not come up to her full capacity. We give this as a specimen of what the Cambria Company's fur- naces have done, and we have the authority of Thomas M. Col- lins, the founder, to challenge any establishment in the State, or the world, of the same size, to equal it. When that is done, we will do better. Will our Hollidaysburg neighbors accept the banter?"-Tribune, April 22, 1857.
Messrs. King & Shoenberger had great confidence in their plant and had a large amount of money invested; their output was satisfactory; they had a large number of men employed; they believed the raw materials were ample for future opera- tions; and, notwithstanding the partial embargo placed on the Cambria pig metal by the iron men of Pittsburg, they looked for another market. In after years their judgment was con- firmed, and the stone which had been rejected became the pillar of the American iron rail market on account of its hardness. The rails made by the Cambria Iron Company led in an open market, and on one occasion J. Edgar Thomson, president of the Pennsylvania Railroad Company, said he always preferred them, especially where heavy hauls were made or on curves, as they were much harder and, more nearly than any other, ap- proached the English steel rail, which was then selling at $200 per ton.
In 1893 a gentleman of this city was traveling on the Queen and Crescent line, en route to Birmingham, Alabama, when, in passing over a particularly smooth piece of track, the conductor took care to inform him that they were running on iron rails made by the Cambria Iron Company in 1867.
About 1850 the opening up of the great West to civilization began, and from then to 1860 may be considered as the first
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HISTORY OF CAMBRIA COUNTY.
decade of railroad building in this country. During the earlier part of this period, also, there arose a considerable demand for iron kettles to be used in making sugar and molasses on the plan- tations of Louisiana. With these two different channels opening up for the disposal of their product, a question as to what was the best thing to do arose in the minds of Messrs. King and Shoenberger. Dr. Shoenberger advocated the erection of a foundry in Johnstown by which to turn their metal into iron kettles, while Mr. King had faith in it for railroad bars. The question required and received due consideration, and in Feb- ruary, 1852, they agreed to build a rail mill, and Mr. King at once started East to organize a company.
At Boston and New York he met parties who were inter- ested in the iron business, and it was agreed between them that the Cambria Iron Company should be organized with a capital of $1,000,000. Messrs. King and Shoenberger were to put in their twenty-five thousand acres of land and four furnaces, with all the tools, teams, tracks and appliances, at a valuation of $300,000, and were to receive $100,000 in stock and $200,000 in cash. The Boston parties, who were Daniel Wild and John Hartshorn, were to provide the necessary cash in six months.
At the expiration of six months the Boston parties had failed to meet their obligations in the enterprise. A further extension of six months was given them, at the end of which, they and those interested in the project residing in New York, united and agreed to take $300,000 as their portion of the stock. Simeon Draper became security for this payment. Thereupon a permanent organization was effected by electing Dr. Peter Shoenberger, president; Simeon Draper, treasurer; George W. Hodges, of New York, secretary, and George S. King, manager. At this organization King & Shoenberger changed their subscrip- tion to $200,000 in stock and $100,000 in cash.
The company issued $500,000 in bonds, but they were not negotiated. There had been no investment of cash or its equivalent, except what King & Shoenberger had contributed in property.
The company was incorporated under the General Act of As- sembly relating to manufacturing industries, and a supplement. When it became financially involved through the failure of the' eastern parties to perform their part of the contract, the Gener- al Assembly passed the following act, which was approved by Governor Bigler February 27, 1854:
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HISTORY OF CAMBRIA COUNTY.
"AN ACT RELATIVE TO THE CAMBRIA STEEL COMPANY.
"WHEREAS, The Cambria Iron Company, incorporated un- der the laws of this Commonwealth, have been induced by large subscriptions to the capital stock of the Company to contract debts to mechanics, laborers and others, in the construction of their works, and which stock the Company have been obliged to take back; and
"WHEREAS, At a meeting of the stockholders of said Com- pany it was resolved, in order to pay said debts and complete the works of said Company, to sell and dispose of said stock and to issue and sell five hundred thousand dollars of the bonds of said Company, secured by a first mortgage on the entire real estate of said Company, and convertible, at the option of the holders thereof, into the common stock of said Company; there- fore
: "Be it enacted, etc., That the aforesaid acts and proceedings of said Company are hereby approved, and the Directors thereof are authorized to sell and transfer the stock and bonds of said Company on the best terms they can procure for the general interests of said Company, and that the sale of such bonds or stock at less than the par value of the same, or an agreement to pay a larger rate of interest than six per cent per annum shall not be deemed usurious, or in any manner invalidate any con- tract authorized to be made by this act.
"SECTION 2. That the holders of the bonds aforesaid, be- fore and after their conversion into the common stock of said Company, be entitled, for every twelve dollars and one-half paid, to the same privileges of voting, according to the scale of votes, as the stockholders of said Company are now entitled by law."
Notwithstanding the unfortunate financial complications, the erection of the rolling mill and the four coke furnaces was commenced in February, 1853, and just at that time a trust agent for the Ohio & Toledo railroad appeared in New York to purchase rails to finish the road. He had no money, but he had bonds of the company worth $200,000, which he was willing to exchange for railroad bars. Mr. Draper agreed to take the bonds and deliver the rails at $85 per ton, which terms were accepted. This was before the mill was completed. The bonds were sold and the order given to the Cambria Iron Company at $55 per ton.
The market value of rails was about $80, but the order was so large and the Cambria Tron Company so eager to get it that with this combination they furnished the rails, and it is a fact worthy of note that the profits of this order was the only money that went into the original rolling mill, as Simeon Draper, who had secured the subscription of $300,000, had failed.
410
HISTORY OF CAMBRIA COUNTY.
After the preliminary meeting Mr. King was authorized to procure a charter for the Cambria Iron Company. He pro- ceeded about it in the usual manner, but it required a special act of Assembly to remove a restriction which prevented a cor- poration from holding more than five hundred acres of land. This limitation was repealed by an act passed in 1852. Mr. King procured the charter in blank and took it to Philadelphia, to have Francis W. Hughes, secretary of the commonwealth, sign it, but the secretary declined to do so until twenty-five per cent of the stock, or $250,000, was actually paid in, or that much de- livered to him in trust.
While they were discussing the subject, Jeremiah S. Black, who was then chief justice of the state, came in. He was well acquainted with Mr. King and interceded with the secretary in his behalf, but to no avail, and the result was that the evidence of the payment had to be produced. As it was then, as now, somewhat unusual to carry that much money, Mr. King went to New York, and Simeon Draper, an eminent broker and banker, gave him a certificate of deposit for $250,000. With this he re- turned and presented it to the secretary, who promptly signed the charter; and the certificate, having served its purpose, was returned to Mr. Draper.
Mr. King then came back to Harrisburg to have Governor Bigler execute the document. Arriving at a late hour, he ascer- tained that the governor intended leaving the capital early in the morning, and time was an element of value. Accordingly he called at the residence of the governor, who had retired, and was conducted to his bed chamber. After apologizing for appearing in his night robe, the executive signed the charter, on June 29, 1852.
The preliminary agreement to organize the Cambria Iron Company was as follows:
"Articles of agreement made this 21st day of April, 1852, by and Between Daniel Wild and John Hartshorn of the City of Boston, Mass., of the first part, and Geo. S. King of Johns- town, Cambria County, Pennsylvania, of the second part, Wit- nesseth : That the parties of the first part together with such other persons as they may associate with them, not to exceed more than three persons, agree with said King to become joint owners in a company or companies for the purpose of mining and manufacturing at Johnstown, or near said town in Cam- bria, or adjoining counties, Pa.
"That it is hereby understood that they are to be joint.
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HISTORY OF CAMBRIA COUNTY.
owners in the undertaking of getting up said Company. The stock of which is to be one million (or more) dollars, divided into eighty thousand shares, to purchase the property as per article of agreement entered into by said Wild and Hartshorn, with P. Shoenberger, dated April 21st, 1852. Eight thousand shares of which are to be given to said Shoenberger as part payment on said property. Thirty thousand shares to be dis- posed of for working capital. Twenty-five thousand shares to be used by said Wild and Hartshorn and to be equally divided between the said Wild, Hartshorn and King to do with as they shall jointly determine for getting up the company, paying ex- penses, etc., and to be the property of the aforesaid parties- Wild, Hartshorn and King-together with such other parties or persons they shall admit into the project.
"And it is further understood that any sales of said stock sold by any of the owners is to be for the mutual benefit of the whole. A correct account to be kept of the same in order that reference may be had thereto by the parties. No expense paid by either one of the parties can be called for only from the sale of the stock which is for the present to be held in common, and no part is allowed to come into this agreement without the consent of every one hereunto signing.
"Witness our hands and seals. "Witness : "DANIEL WILD, SEAL.
"EUGENE HOMER HARTSHORN, "JOHN HARTSHORN, SEAL.
"HIRAM E. FELCH." "GEO. S. KING. SEAL.
The subscriptions for stock were as follows:
"New York (January) 31, 1853.
"Memorandum of an agreement entered into by and be- tween the undersigned for the subscription to the Cambria Iron Company stock, of two hundred and eighty thousand dollars. "The said subscription is made by D. Wild, William A. Shepard, and George W. Hodges for themselves and others and has reference to two contracts entered into this day,-one for the purchase by them of 12,000 tons Iron rails at $55 from the Cambria Iron Company; the other for the sale of 8.000 tons of rails by them at $571% to J. P. Resner: Now, therefore, it is agreed that the profits or losses that may arise from this sub- scription and from the above contracts shall be apportioned and borne in the following manner, namely :
"One Eighth part by and for William A. Shepard.
"One Eighth part by and for Daniel Wild.
"One Fighth part by and for Geo. W. Hodges. "One Eighth part by and for Geo. S. King. "One Fourth part by and for JJ. P. Resner.
"One Eighth part by and for Eugene Ledentu.
"One Eighth part by and for
and we hereby authorize and empower the said Daniel Wild,
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HISTORY OF CAMBRIA COUNTY.
William A. Shepard and Geo. W. Hodges to subscribe the said amount of $280,000 to the Cambria Iron Company's stock for us in proportion to our respective interest as above.
"Witness :
"W. H. TAYLOR.
"DANIEL WILD, SEAL "GEO. W. HODGES, SEAL
"EUGENE LEDENTU, SEAL. "GEO. S. KING, SEAL.
"J. P. RESNER."
SEAL. SEAL.
The following shows the value of property February 15, 1853:
"It is hereby agreed by and between the undersigned, Geo. S. King and Dr. P. Shoenberger, that the sale made by them to the Cambria Iron Company is to be divided in the following way, to wit:
"For Cambria Furnace $ 80 000 00
"Ben's Creek Furnace 65 000 00
"Mill Creek Furnace 60 000 00
"Blacklick Furnace 55 000 00
"Horner tract of land 5 000 00
"King's tract of land 5 000 00
"Dr. P. S. other lands 20 000 00
$300 000 00
"And for all the Jackson lands in the schedule of prop- erty furnished three dollars per acre is to be allowed for to Cambria, or K. & S., the owners.
"Witness our hands and seals this 15th day of February, 1853."
The by-laws of the Cambria Iron Company read as fol- lows :
"Articles of Association of the Cambria Iron Company, made in pursuance to an Act of Assembly, passed June 16, 1836, P. L., 799, and a supplementary Act passed June 29, 1852. "Witness that the subscribers, citizens of the United States, whose names are hereto affixed have associated them- selves under and pursuant to the acts aforesaid for the purpose of making and manufacturing iron from the raw material, with coke, mineral coke and charcoal, and mining the mineral and using the product of the land of the association, and do certify and declare the articles and conditions to be as follows :
"Article 1, The name and style and title of the Company shall be the Cambria Iron Company.
"Article 2, The lands to be purchased and held by the Com-
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HISTORY OF CAMBRIA COUNTY.
pany shall be in the counties of Cambria, Indiana, Somerset and Westmoreland.
"Article 3. The capital stock of the Company shall con- sist of one million dollars.
"Article 4. The said capital stock shall be divided into 80,000 shares of $12.50 each. The subscribers have subscribed for the number of shares set opposite to their respective names and appointed Daniel Wild as Receiver to receive $250.000, said sum being 144 of the capital stock subscribed.
"Article 5, The Board of Directors shall consist of seven; one of whom shall be chosen President.
"Article 6. The company shall in all things be subject to and governed by the provisions of the acts of Assembly under which it is created, and shall have the same and no other or greater powers, privileges and franchises than are conferred on it by virtue of said Acts."
Dated August 1, 1852.
The rolling mill, when completed in 1853, was a balloon frame structure, one hundred and fifty by six hundred feet, with two wings and four heating furnaces and thirty puddling furnaces.
During the financial embarrassments a syndicate of Phila- delphia people, of whom Matthew Newkirk was the active mem- ber, came into the company, and Newkirk was elected president. Under this organization the company issued and disposed of $500,000 in bonds, at from sixty to seventy per cent., in addi- tion to the $500,000 in bonds issued and held as collateral by the New York organization, and the balance of the stock, which was $800,000. This was the first money that was ever realized from stock or bonds.
The New York organization did not operate the works for more than sixteen months, when the Newkirk organization took control Mr. King resigned as manager.
On September 20, 1853, Dr. Peter Shoenberger and Sarah K., his wife, executed a deed for the property to the Cambria Iron Company for a consideration of $300,000, and on Decem- ber 9, 1853, Mr. King and Eliza King, his wife, executed their deed for the half interest to Dr. Shoenberger.
The first rail was rolled on July 27, 1854, and the Gam- bria Tribune for Monday, July 31. 1854, had this item :
"On Thursday the Cambria Tron Company made a fair and, we are gratified to say, satisfactory trial of the entire ma- chinery of the rolling mill. It worked admirably. Four large T rails were rolled and pronounced perfect by competent
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HISTORY OF CAMBRIA COUNTY.
judges. Thursday may be regarded as the commencement of an era in the history of the iron manufacture of Pennsylvania, worthy of special remembrance. On September 18, 1854, it also notes that the mill is making 'a hundred T Rails per diem.' "'
For the week ending May 14, 1859, the output of iron rails was 722 tons, which broke the record and exceeded that of any other mill in the United States.
On occasion. pig metal was used as collateral security. Bell, Smith & Co. were bankers in Johnstown. Two months before the leasing of the works to Wood, Morrell & Co. on May 1, 1855, by the Newkirk organization of the Cambria Iron Company, the latter had secured a loan of $1,000, and gave about sixty tons of pig metal as collateral. The details were: "Having sold to Bell, Smith & Co. a lot of Pig Metal now lying on the bank of the Canal in Johnstown, say about 60 tons, and delivered to said Bell, Smith & Co. said metal as collateral se- curity for the payment of the Cambria Iron Co.'s note in favor of Geo. C. Ferree, agent, dated March 8, 1855, at 60 days for one thousand dollars." After authorizing the sale if the note be not paid at maturity, it provided "that said metal shall not be sold by said Bell, Smith & Co. until the expiration of five days after the maturity of said note." The instrument was dated at Johnstown. 30th day of March, 1855, by Cambria Iron Co., Per John Anderson, Agent.
The Cambria Iron Company, on May 21, 1855, by M. New- kirk, president, and John T. Kille, secretary, leased its prop- erty to Wood, Morrell & Co .- Charles S. Wood, Daniel J. Mor- rell, Edward Y. Townsend, Wyatt W. Miller, William H. Oli- ver and Thomas Conarroe. "To have and to hold unto the second party, their executors and administrators, for and dur- ing the full term of five years, one month and eleven days, from the date hereof, which term is to be fully completed and ended on 30th June, 1860." Then follows the description of the proper- ties : The Cambria Furnace lands, about 8,570 acres ; the Black- lick lands, 3,723 acres; the Ben's Creek lands, 5,930 acres; the Mill Creek lands, 5,044 acres; the lands along the river and railroad, and in Johnstown and vicinity, upon which were erected the rolling mill, etc., 2,577 acres. Total 25,844 acres.
The conditions were that the lessees could surrender the lease at any time, upon giving six months' written notice to that effect, or if the rent were in default, or the works ceased opera- tion for a period of thirty days, unless caused by unavoidable
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HISTORY OF CAMBRIA COUNTY.
accidents, fire or flood, the company reserved the right to re- enter and take possession. The rents were fixed thus :
For the one month and eleven days, expiring,
June 30, 1855, $ 4,555.55
For the year expiring June 30, 1856, 40,000.
For the year expiring June 30, 1857. 60.000.
For the year expiring June 30. 1858, 70,000.
For the year expiring June 30, 1859, 80,000.
The lessees were authorized to make improvements to the value not exceeding thirty thousand dollars in any one year, and deduct the same from the rent.
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