USA > Pennsylvania > Reminiscences of the early history of "Dark Hollow", "Slocum Hollow", "Harrison", "Lackawanna Iron Works", "Scrantonia", and "Scranton, Pa." > Part 2
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The only way to market at that time, and for years later, was to haul the iron by teams to Carbondale and ship by the Delaware and Hudson Canal Company's railroad to Honesdale, and thence by canal to New York, or cart it to Port Barnum, some eight miles, and ship it via the North Branch canal to Philadelphia or Baltimore. It was soon found that so crude a material could not bear such an expensive transportation and compete with other fur- naces located nearer the market.
The natural conclusion was that something must be done to increase the value oft the crude article, so that it would bear the ex -
*Fuller details can be found in Vol. 3, page 152, of the "Transactions of the American Institute of Mining Engineers," May, 1874, to February, 1875, and "Pennsylvania Second Geological Survey," page 91. Vol. A.
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Scranton, Pa.
pense of transportation, and the first thing necessary was more capital.
An effort was made which resulted in the formation of the limited partnership of Scrantons & Grant, September, 3, 1843, with the capital increased from $20,000 to $86,000. Messrs. George W. and Selden T. Scranton and Sanford Grant being the general partners, and Philip H. Mattes, of Easton. Erastus C. and Joseph H. Scranton, of Augusta, Ga., and John Howland, of New York, the special partners.
1844 In May, 1844, 'Mr. Manness contracted with the new firm to build the first rolling mill-110 ft. by 114 ft. -- for the sum of $350 ; the firm agreeing to furnish all materials, including timber stand- ing in the forests. The following November he commenced build - ing a nail factory, 50 ft. by 75 ft. The first iron was puddled 1845 in April, 1845, and the first nails were made on the following 6th of July. This year Mr. Joseph H. Scranton, during his annual visit North, spent some time at the works in September, when he purchased Mr. Grant's interest in the concern, on condition that Mr. Grant should continue his services in the store until April 1, 1846.
Mr. Scranton then visited Connecticut before going South, and his accounts induced me to visit " Lackawanna ," in November, when I decided to take an interest in the iron works and make this my residence for ten years.
On my way here I obtained my first sight of a telegraph line -the first line (consisting of two wires only), between New York and Philadelphia, which had been put up the summer or au- tumn previous.
A TRIP FROM NEW YORK TO SCRANTON IN 1846.
In order to show the saving in time and travel during the last forty years. I propose to give an account of our trip in March. 1846, when I brought my small family here to reside.
There being no railroad, we came by the night steamer from New Haven, and arriving in New York the next morning. found the streets so full of snow that our carriage could hardly get to the Franklin House, on Broadway, corner of Day street. After break- fast it was found impossible to get a hack to take us to the ferry, at the foot of Cortlandt street, on account of the depth of snow, consequently we had to walk, and a hand cart took our baggage. At that time the Morris and Essex railroad only ran between Newark and Morristown. Our car was hauled by the Camden and Amboy company over its road to Newark, where it was dis- connected and drawn by four horses up the same heavy grade that is now used for steam. From this point we were taken by a lo- comotive with one pair of driving wheels to Morristown. At Summit Station we found a novel plan for supplying the engine
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Reminiscences of Early History.
with water. A pair of wheels on a line of shafting were placed beneath the track, the upper side of them being in line and level with its top. The locomotive was chained with its drivers rest- ing on the wheels beneath the track, when the engineer put on steam and pumped what water he needed. At Morristown we took
a stage and arrived at Oxford about dark. Here we spent about a week, owing partly to a heavy rain, which had so raised the Delaware river that we had to cross it by the bridge at Belvidere, and struck the river again at what is now Portland. We were delayed in the Water Gap by ice and logs in the road. After covering small bridges with slabs, hauled out of the river, we finally reached Tannersville, and spent the night. The next morning, finding good sleighing at Forks, we changed our vehicle to runners, and again for wheels at Greenville-now Nay-Aug-and arrived at Mr. S. T. Scranton's about dark, March 17, 1846, the traveling time be- ing one day from New York to Oxford, and two more to reach here. At present the trip is made over substantially the same route in 472 hours, and from New Haven in 8 hours frequently. This route generally took two days and a half to or from New York, and was the usual one followed. The only way to shorten the time was to take the stage at Hyde Park at noon, and, riding through the night, reach Middletown, N. Y., in the afternoon ; then take the Erie railroad to Piermont, and steamer down the Hudson, ar- riving in New York about 6 P. M. the next day after leaving home. As the Erie road was extended to Otisville, Port Jervis and Narrowsburg, the time was shortened, and in 1851, when the road was opened to Binghamton, and the Lackawanna and Western to Great Bend, we could reach New York in twelve hours.
April 1, 1846, Mr. Sanford Grant retired from the concern, 1846 and the writer took his place in charge of the store and as gen- eral purchaser for the concern, and later as real estate agent.
During his residence in Georgia, Mr. J. H. Scranton made the acquaintance of Mr. Fay, of the firm of Paddeford & Fay, of Savannalı, Ga., but formerly of Boston, Massachusetts. Hearing Mr. Scranton's reports of the immense deposits of coal, the com- parative nearness to New York city, the success of making iron with anthracite. and other advantages of the location, this gentle- man became quite interested in the iron works here, and thought that his eastern friends, being already in the manufacturing busi- ness, would very likely be glad to take a pecuniary interest in the works here. He therefore gave Mr. S. letters of introduction to his friends in Massachusetts, and wrote them that Mr. Scranton would call upon them and explain his plans.
In the meantime Mr. Selden T. Scranton had been correspond- ing with Messrs. Eno & Phelps, the latter being a director in the N. V. & Erie R. R. Co., in reference to supplying that company
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Scranton, Pa.
with rails, and its making the concern a loan of $50,000 to erect the plant for that purpose. The result was a contract for 4,000 tons, at So per ton, delivered at the rolling mill, but the railroad company had use, in building its road, for all the money it could raise, and none to lend.
As usual, Mr. J. H. Scranton came north in the summer of 1846, when he accompanied Colonel George W. Scranton to this place. After a general consultation, they lett September Io, and spent the next week in New York, where they had interviews with Messrs. William E. Dodge, John J. Phelps, and others. They also met Messrs. Paddeford and Fay there, and then went to Boston, where they received a very cordial reception, and found many de- sirous of taking an interest in the iron works. Mr. J. H. Scranton wrote from there on the 23d: " We were offered a cash advance of $100,000 if we could get clear of the contract with the Erie company, and would make one of the same character for 6,000 tons with as good a company as there is in New England."
The Messrs. Scranton having agreed to see the New York gentlemen before committing themselves to the Bostonians, re- turned to New York, where Mr. Dodge invited a number of his friends to meet them, and Messrs. William E. Dodge and Benjamin Loder, President of the N. Y. & Erie railroad, were appointed a committee to visit "Lackawanna " and report. October 4th, Col. Scranton wrote from New York that Messrs. Loder and Dodge would leave for " Lackawanna " on the 15th.
The gentlemen arrived in due time, and although there was a weekly paper published at Providence, the ubiquitous reporter was not around, and they supposed no one outside the firm of Scrantons & Platt would know them or suspect their errand. They had not been here twenty-four hours before Mr. Loder met an old schoolmate in the redoubtable anti-corporation lawyer, Charles Silkman, and privacy was abandoned. The gentlemen remained some two or three days and were shown through the different de- partments of the iron works, including the iron mines on the moun- tain, the coal mines in the valley, and the outcropping of coal at a number of places, that they might judge for themselves as to its evident bountiful supply.
On the 7th of November, 1846, the first firm of Scrantons & Platt was duly organized upon the basis of October I, to take effect November 15. With the retirement of Mr. Grant and change of firm name to Scrantons & Platt, the following gentlemen composed the partners in the firm: Messrs. George W., Joseph H. and Selden T. Scranton. and Joseph C. Platt, as general partners, and Messrs. Philip H. Mattes, Edward Mowry and John Howland, as special partners, with an additional capital of $29,000, making the total $115,000. Four days later-November tr-Messrs. William E. Dodge, Anson G. Phelps, Benjamin Loder, Samuel Marsh,
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Reminiscences of Early History.
Henry Shelden, John I. Blair, James Blair, William B. Skidmore, James Stokes, Philip Dater, Daniel S. Miller, John A. Robinson, William Henry Shelden and Frederick Griffing, put in another $115,000 as special partners.
On October 2, 1847, some of the specials added to their sub- 1847 scriptions enough to make the capital $250, 000.
During the winter of 1846-7 an additional contract was made with the Erie Company, for 8,000 tons of rails to be delivered at the mouth of the Lackawaxen river, on a sliding scale as to price, gov- erned by the market, but within a maximum of $75 and a minimum of $65. Nearly the whole of the two contracts were filled. Soon after this an additional contract for 8,000 tons of rails was made with the Erie Railroad Company, on a sliding scale, to be governed by the market prices within a maximum of $85 and a minimum of $75.
As has been stated, Mr. Joseph H. Scranton had spent a part of the summers here since 1843. In June, 1847, he brought his family with him to make this his permanent residence. He came none too soon, for business was crowding and help needed.
The contracts with the Erie company made it necessary to en- large the rolling mill and erect special machinery, which was so far accomplished, that on the 23d of the next month, July, the first steam engine between Carbondale and Wilkes-Barre was started in it, and two rails made.
On the 9th of August the mill commenced turning out rails regularly for the Erie company, which from that date were shipped in every way possible. The roads in all directions leading towards the railroad were full of teams hauling rails or returning empty; some days over seventy loads being sent off. All available teams were employed, and as some drivers took more rails than their teams could haul through, a portion were unloaded by the roadside, and could be seen by travelers for months after the last rail on the contract was delivered from the mill. As late as November, 1850, men were sent to pick up and forward them. On June 25, IS50, and from that date on, large numbers of rails were sent over our ore mine railroad to its junction with the Pennsylvania Coal Com- pany's gravity road, and thence to the Delaware and Hudson Canal, and distributed at points nearest the Erie railroad.
At the opening of the Lackawanna and Western railroad, in October, 1851, Mr. Benjamin Loder, President of the Erie railroad. was one of the guests and, in his remarks to the assemblage, stated that, owing to the location of the iron works and the energy of its proprietors, the New York and Erie company had not only secured the release from the State of New York of all claim to a loan of $3,000,000, but had saved his company from bankruptcy, the Legislature of New York having offered to release all claim to the loan, on condition that the road should be opened to Binghamton on or before a certain date, which was accomplished.
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Scranton, Pa.
1848
Having but one blast furnace, and that a small one, it could not supply the rolling mill with the iron needed. A contract with Messrs. Quick & Moore was made for the erection of two, and during the winter the work was commenced. On July 23, 1848, Nos. 2 and 3 stone stacks were finished. No. 2 was first lighted Monday, September 24, 1849, and blast put on October 5. Blast was first put on No. 3, in November, 1849.
It appears to be inherent to all manufacturing business in this country that every concern must be constantly making improve- ments to reduce the cost and improve the article manufactured, in order to meet competition -- or lose its business. Such was the case with the Lackawanna Iron Works, and, consequently, more capital was needed, as before.
Col. G. W. Scranton and family moved from Oxford to Scran- ton, June 21, 1848.
A second re-organization of the firm of Scrantons & Platt was arranged, more capital put in by new associates, and, on November 1, 1848, the papers were signed, the capital being then $400,000.
THE LACKAWANNA IRON AND COAL COMPANY.
During the session of the Legislature for 1853, a special charter was granted to Scrantons & Platt and their associates, nnder which, on the Ioth of March, 1853, The Lackawanna Iron & Coal Co. was organized, more money having been paid in, and the capital in- creased from $400,000 to SS00,000. The original stockholders were as follows : James Blair, John I. Blair, Philip Dater, William E. Dodge, F. R. Griffin's estate, Lucius Hotchkiss, John How- land, Benjamin Loder, Samuel Marsh, P. H. Mattes, D. S. Miller, Edward Mowry, Anson G. Phelps, J. C. Platt, John A. Robin- son, Henry Sheldon, W. H. Sheldon, E. C. Scranton. G. W. Scranton, J. H. Scranton, S. T. Scranton, W. B. Skidmore, James Stokes ; total, 8,000 shares. Mr. John Howland was by far the largest stockholder. Moses Taylor was probably interested in the company at the time of its organization, but does not appear as a stockholder until June 27, 1853. The following became stock- holders in the order named : Theodore Sturges. 1856; Percy R. Pyne, 1861 ; Samuel Sloan, 1864; William E. Dodge, jr., 1864; E. F. Hatfield, 1872, and B G. Clarke, 1873. Mr. S. T. Seran- ton was made president of the company, and remained so until he returned to Oxford. in 1858, when he was succeeded by Joseph H. Scranton, who held the position until his death, June 6, 1872.
The business of the company continuing to increase, made still more capital necessary. The stockholders were again called upon, and the capital increased. April 30, 1860, to $1,200,000, and again in 1873-4, when the steel works were built, SI, Soo,ooo additional was put in by the stockholders, making the capital what it now is, $3,000,000.
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Reminiscences of Early History.
ORE MINE RAILROADS.
The railroad to the ore mines on the mountain, when built, was considered quite an enterprise. By act of the Legislature, in March, 1848, Scrantons & Platt and their associates were author- ized to build it Mr. Seymour, of what has since been called Jessup, surveyed and located the road the same spring. Mr. H. H. Easton, from Syracuse, N. Y., was the builder. Up to August 1, $15,000 had been expended upon it. On the line of this road a vein of limestone was discovered-somewhat of the oolitic order-the grains ranging about the size of the end of one's little finger. It was hoped it would answer for furnace purposes. On December I a few car loads were brought down on the new rail- road for that purpose, and the transportation continued until it was found useless, owing to the large admixture of rock with it. The road was so far finished June 7, 1849, that a car load of ore was run down to the furnace. The cars were hauled to the mines- some five miles-by mules, and rup back by gravity. During this month a party of ladies and gentlemen visited the mines, being . one hour going out and thirty-five minutes returning by loaded cars-the speed being as fast as any of the party desired in such cars.
RAILROADS. (See page 5 for first project).
The year 1849 witnessed the beginning of what proved to be 1849 developments of great importance, not only to Scranton, but to the entire coal basin and its surroundings. Those interested in the iron works soon found it was necessary to have a more direct, ex- peditious and economical outlet to market for their products The demand for anthracite coal was constantly increasing. The New York and Erie Railroad was pushing its way to Dunkirk, on Lake Erie. All these things taken into consideration, it was believed that with only forty-eight miles of railroad to connect with the Erie at Great Bend, coal could be delivered in western New York markets at paying prices that would defy competition. To insure business for the railroad it was proposed to purchase coal properties and open mines, to be operated by the company ; and, as Col. Scran - ton put it, " Have a depot full of freight all the time, waiting to be taken away." The attention of capitalists was called to the project, and sundry parties were brought here to see for themselves the great abundance of coal, and the business the iron works would give the road ; to which the almost universal reply was, that they would want an interest in the iron works also. This was so gen- eral that it was found necessary to accept the proposition, in order to secure the subscriptions necessary to build the railroad. Sub- scriptions were then taken, with the agreement that they were to
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carry a pro rata interest in the iron works, which the associates were to surrender for the same amount in railroad stock. It was on this basis that the firm of Scrantons & Platt built the road and turned it over to the proper officers in running order, without letting a contract for a section on the entire line; Col. Scranton having general supervision, assisted by Mr. Peter Jones, of New Hampshire. I remember purchasing the shovels, steel, sledges and other tools, besides hundreds of barrels of beef and other pro- visions, which Superintendent W. F. Hallstead and many others delivered on the line "where they would do the most good." This quotation recalls to mind the fact that the shovels were made by O. Ames & Sons, who stamped "Scrantons & Platt" in the metal of each one, and the remains of them were found along the line of the road for years later.
After considerable preparatory work for the purpose, on March 7, 1849, Messrs. Henry W. Drinker and Jeremiah Clark, as Com- missioners, held a meeting at the hotel kept by D. K. Kressler, and opened books for subscriptions for stock of the Liggett's Gap Railroad .* Over $250,000 were received, and ten per cent. on the amount paid in.
The day had passed for operating railroads by horse power, and providing, under $20 fine, that the conductor of a wagon should blow a horn to notify the collector to be ready to take toll, consequently Mr. S. T. Scranton started for Harrisburg on the 9th, via New York and Philadelphia, as the quickest route, and was successful in getting legislation enabling the company to operate the road with locomotives, and make such other changes as were necessary to make the enterprise a success.
PRELIMINARY SURVEY.
April 25, 1849, Mr. James Seymour, of Seymour, since called Jessup, under the general direction of Major Morrell, of New York, commenced the preliminary survey for the Liggett's Gap Rail- road.
The following is copied from the original minutes now in my possession:
"Pursuant to public notice, a meeting of the stockholders in the Liggett's Gap Railroad Co. was held at the house of D. K. Kressler, in the village of Harrison, Luzerne county, Pa., at 2 o'clock, on the afternoon of Wednesday, January 2, 1850.
The meeting was organized by the appointment of Henry W. Drinker, chairman, and John Sherrerd, secretary.
On motion of H. W. Drinker, Esq., the meeting proceeded to the election of officers and managers of the company for the present year, or until others are elected to fill their places.
*On the northwest end of the Washington Avenue car shops can still be seen two keystones of iron, bearing the letters " L. G. R. R. S., 1851."
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Reminiscences' of Early History.
On motion of H. W. Drinker, Esq., it was resolved that the Board of Managers be requested to appoint a committee to facilitate the business of the company.
William H. Tripp and Joseph C. Platt were appointed judges of election.
On motion, the polls were closed at 4:30 o'clock, P. M.
On an inspection of the votes, the following named gentle- men were declared duly elected to their respective offices, each having received 633 votes, being the whole number polled, rep- resenting twenty-nine hundred and sixty-six shares of stock.
Officers: John J. Phelps, president ; Selden T. Scranton, treasurer; Charles F. Mattes, secretary.
Managers : John I. Blair, Frederick R. Griffing. Daniel S. Miller, Henry W. Drinker, Jeremiah Clark, Joseph H. Scranton. Joseph C. Platt, Andrew Bedford, George W. Scranton and Charles Fuller.
On motion, it was resolved that the Board of Managers do now organize a meeting of that body.
HENRY W. DRINKER, Chairman.
Attest : JOHN S. SHERRERD, Secretary."
April 30, 1850, Mr. Peter Jones arrived, bringing his men 1850 and the implements he had used in rebuilding the Cayuga & Sus- quehanna Railroad from Owego to Ithaca, for the Liggett's Gap interest, which was to connect the Erie Railroad with the Erie Canal, via Cayuga Lake, for the transportation of Scranton coal. The grading of the "Liggett's Gap Railroad" was commenced early in May, but before the month closed there was an Irish war in Liggett's Gap, between the "Corkonians" and "Far-downers," as they called each other.
IRISH WAR-MAY, 1850.
Each side was determined to drive the other off the road, but both parties were, if possible, more hostile to the Germans, and as determined to oust them. The Germans armed themselves and continued at their work. A battle was fought on the 28th, one person being killed instantly and a number wounded, all of whom were said to be " Corkonians." Two bodies were found in the woods near by the following month, bearing marks of having been shot. On the 30th the Connaught men, to the number of some 200, returned to drive the "Corkonians" further. On their way they came to the "Dutch Shanty" and demanded the fire-arms, but failed to get them. The Irish were said to be armed with almost everything that could be used in a melee, including guns, pistols, stones and sticks. One had an iron candlestick and another part of a buck-saw fastened to a shovel handle. Neither party succeeded in driving off the other. Work was soon resumed.
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Scranton, Pa.
1851
During the Legislative session of 1851, authority was given to change the name from " Liggett's Gap" to the " Lackawanna and Western Railroad Company," and the change was made on the 14th of the following April.
The first locomotive bought for the road was the " Pioneer," from the Cayuga and Susquehanna Railroad. It came down the river on an ark from Owego to near Pittston. The first one set in operation on the road was the "Spitfire." It was of English make and bought of the Reading Railroad Company, by Mr. D. S. Dotterer, who took some pride in getting his purchase on the road first. Both engines came from Port Griffith, on the Pennsylvania Coal Company's Railroad, to the junction of the ore mine railroad, and by the latter to the iron rolling mill. Mr. Dotterer ran the "Spitfire" its first trip from the rolling mill on Friday, May 16, 1851. Being the first locomotive that many here had seen, it was a great curiosity, and when it reached the furnaces was covered by men and boys, some of them astride of it. The first engine that came down on the road from Great Bend was the " Wyoming," on the 11th of October, 1851, having two pas- senger cars.
On the opening day, October 15, 1851, sixty-five ladies and gentlemen, the latter being nearly all interested in the railroad and iron works, came over the railroad from Great Bend to Scran- ton in 234 hours. On the next day the first coal train was started for Ithaca, N. Y. October 20, a passenger train commenced regu- lar trips, with Mr. R. W. Olmstead as temporary conductor.
On the 22d I made my first all-rail trip to New York, returning on the 29th, leaving there at 6 A. M. and reaching home at 6 P. M., duly appreciating the great improvement over staging to Nar- rowsburg to reach the Erie railroad, or the earlier and longer trips I had made so many times.
That a railroad to Great Bend was only a part of the improve- ments contemplated by the associates interested in the iron works, will be readily admitted when attention is called to the fact that before the road to Great Bend was opened, on October 15, IS51, a meeting had been held at the house of Jacob Knecht, in Strouds- burg, November 28, 1850, by the commissioners authorized to re- ceive subscriptions to the capital stock of the Delaware and Cobb's Gap railroad. Eighteen thousand shares of $50 each were sub- scribed for by the following gentlemen : John I. Blair, T. W. Gale, J. H. Scranton, J. C. Platt, Scrantons & Platt, F. R. Griffing, Samuel March, Edward Mowry, William E. Dodge, John J. Phelps, James Stokes, Daniel S. Miller, J. S. Sturges, Roswell Sprague, Henry Hotchkiss, George Bulkley, Anson G. Phelps, each 1,000 shares: S. T. Scranton, 180; George W. Scranton, 500; James M. Porter, Samuel Taylor, Philip H. Mattes, and H. W. Nicholson, each 5 shares; on which ten per cent., or $90,ooo, was paid in. A meeting of the subscribers or stockholders was held in
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