yy their Scientific ana ement f ae 4 | i LS 1976 White ae RSA IP LEME TONE TESTE RE NT sRIVATE LIBRARY OF ec _ A. C. NOE t a paey | em, ., in y UNE et ory OF CHICAGO | t PEABODY COAL COMPANY yt " ry ; K { j Ws ae wine eer Pe hi wakes ial.> iat Pie eee ig “Lhe MANAGEMENT of COAL PROPERTIES Lie . PEABODY COAL COMPANY Founded in 1883 . Operating thirty-six bituminous mines in eleven fields with annual capacity of eighteen million tons. General Offices: 532 South Michigan Avenue, Chicago CINCINNATI, OHIO Branches: PINEVILLE, KENTUCKY DEADWOOD, S. DAKOTA SAINT LOUIS, MISSOURI KANSAS CITY, MISSOURI OMAHA, NEBRASKA SHERIDAN, WYOMING MINNEAPOLIS, MINN. PEORIA, ILLINOIS SPOKANE, WASHINGTON O those interested in coal properties or se- curities, the Peabody Coal Company offers its ser- vices, as hereinafter de- scribed, in the capacity of Financier, General Mana- ger, Consulting Engineer, Construction Engineer, Sales Agent, Purchasing Agent, Auditor and Accountant. De eoeed Efficiency Must Supplant Waste By the CHAIRMAN OF THE BOARD The coal industry is primarily a wasting industry; not only a wasting industry but a wasteful industry,— wasteful in the manner in which the wonderful mineral resources that the Creator made have been thought- lessly, uneconomically, unscientifically and wantonly wasted. Coal mining is a science requiring expert knowledge. Waste must not exist if it can be prevented. Coal abandoned can never be recovered. Modern, economi- cal, scientific methods must be adopted; other methods should be classed as criminal. I believe that our organization can show the right way. During our experience of 36 years we have made and overcome almost every kind of mistake. If we, profiting by those mistakes to prevent newer and perhaps more costly ones, can be of service to you, we offer that service. - ae a As solr n yl P. \< % ess | ae an Yip, Wy (eas K2b Ps S Z i7 nate Hie ian aries 7, \ i, Ee ec ay : — Uda Be One Coal Investments during the Reconstruction Period By the PRESIDENT During the present era of disturbed industrial con- ditions, every one should be extremely cautious in see- ing that properties in which they are interested are efficiently managed, or securities which they hold are properly safeguarded. Particularly is this true of coal properties and securities. The urgent necessity during the war period for the greatest possible coal production brought about, and properly so, the development of new mines and the reopening of many others which in pre-war times were unprofitable. It has been demonstrated during the period follow- ing the Armistice that former war production cannot be consumed under normal conditions. Idle days are expensive for consumer, laborer and investor, yet such idleness cannot be avoided when production capacity exceeds seasonal requirements. Under such circumstances the waste in this basic industry—upon which all other business directly or indirectly rests— is readily apparent and greatly enhances the price which the ultimate consumer must pay. Briefly, therefore, we must face, under normal con- ditions, the practical industrial problem of too many producing coal mines, with the inevitable result that some cannot survive. Cost of production will be the all-important factor in determining the future of the doubtful coal operations. Some of these are handi- capped with unfavorable mining conditions, poor quality, impurities which cannot be removed with reasonable care and expense, disadvantageous location as to markets and too great initial cost for the recover- able coal. Many others are in more fortunate position and merely suffer from inefficient management. The first are hopeless. The latter valuable if prop- erly managed. Two Those who have substantial investments in the coal industry are directly interested and vitally affected to the extent of such holdings. The safety of the invest- ment as well as earnings is largely dependent upon the management. Pains should be taken to know whether the investment will continue to yield a fair return and that depletion and depreciation requirements are prop- erly protected. Knowledge is needed as to whether the property is worthy of further investment, or in need of improved mining methods, installation of more modern machinery, scientific development looking to future economical operation, or better preparation and distribution of the product. In other words, does the property need more intelligent and efficient management to make the investment both safe and profitable? Timely investigation and thoughtful reflection have saved many an important business. Ample funds, tech- nically trained men, systematized departmental effort co- ordinated under capable executive direction mean much, but judgment and advice born of knowledge acquired in the school of experience are of even greater value under such circumstances. | The Peabody Coal Company, therefore, offers its services as hereinafter suggested, with the hope that it can be of constructive assistance to those who may need advice and help. It believes that it can do so because it has successfully met many difficult coal problems during its thirty-six years of continuous growth—step by step—from a small retail yard in 1883 to an organization now operating thirty-six mines in the United States and Canada with an annual capacity of eighteen million tons. We invite your confidence. Our service is yours if you need it. Se es ee We 2 irate Peabody Mine No. 3 LOCATION—Marion, Williamson Illinois. Peabody Mine No. 7 LOCATION -— Kincaid, Christian Illinois. County, County, RAILROADS — C. B. & Q., I. C., C. & E.L., Mo. Pac. CAPACITY— 1,350,000 tons per year. RAILROADS-—-C. & I. M.,C & A., I. C., C. & N. W., Wabash, B. & O. CAPACITY —1,(00,000 tons per year. Four Peabody Coal Company Service We act as Financier, General Manager, Consult- ing Engineer, Construction Engineer, Sales Agent, Purchasing Agent, Auditor and Accountant. Financier ©°! properties which are or can be made competitive or merchantable and have the approval of our operating and sales depart- ments, are financed for our own account or others. We act as selling agent for banks, trust companies, bond houses and owners of coal properties. During the last few years we have financed more than thirty million dollars of coal securities. General Manager We operate mines owned by others for their account or the joint account of the owners and ourselves. We operate mines owned by consumers of coal, supply them with their requirements and market the remain- der of the output fortheiraccount. Managing a large number of mines in different bituminous fields, it is obvious that we are able to make daily comparisons of | mining conditions, cost items and sales problems which are helpful to all, both individually and collectively. An emergency seldom arises in any field which can not be immediately handled by our regular organiza- tion, with attendant saving of time and money for our clients. : Consulting Engineer Mining Structural Mechanical Electrical We act as Consulting Engineer in active operations and make recommendations for improvements or changes to secure increased output and lower cost. We examine coal properties, advise as to their commercial value and prepare plans for opening and developing them. Weactin an examining and advisory capacity for banks, trust companies, bond houses and coal operators desiring assistance. Our reports deal with every feature of the busi- ness from initial production to distribution and ulti- mate consumption, and mean something more than theory and figures. Construction Engineer We sink or opennew mines, lay out top works, design and erect mine buildings, machinery, tracks, tipples, washers, screens, coke ovens and power plants, and install water works and fire protec- tion systems in connecticn therewith. Sales Agent We advise as to markets for present or contemplated mining operations. We act as agent for the sale of coal produced by com- panies whose output is too small to warrant their maintaining sales offices. Purchasin g A gent We act as Fuel Agent for large consumers of coal. We purchase mine supplies, equipment and machinery for our clients, giving them the benefit of price reduc- tion on the aggregate quantities with a large saving for mines we manage. Auditor and Accountant We ct as Treas- urer and Auditor for mines we manage, set up books, cost sheets, accounting records, Auditor’s reports, pay payrolls andfurnish cost statements and other essential dataas to the daily, weekly and monthly mining costs and results. Fuel Supply We enter into long term contracts with large con- sumers of coal at cost, and minimum percentage of profit, some of whom require the entire output of one or more mines, giving such consumers the benefit of owning the mines without investment or responsibility of management. A good example of the advantages of such contracts may be found in the experience of the Commonwealth- ison Company of Chicago, to whom we furnish -two million tons per annum. The annual report of that com ipany gives its contract with us credit for keeping it regularly and adequately supplied with satisfactory fuel during the most trying period which has ever confronted the coal consumer, and saving one million dollars during the year. Peabody Mine No. 8 RAILROADS—C. & I. M., C. & A., I. C., aa C. & N. W., Wabash, B. & O. LOCATION — Humphrey, Christian County, Illinois. CAPACITY~— 1,000,000 tons per year. Peabody Mine No. 5 LOCATION— Pawnee, Sangamon County, Illinois. Peabody Mine No. 6 LOCATION—Sherman, Sangamon County, Illinois. foes Pau cas omy * : RAILROADS—C. & I. M., C. & A., I. C. & N. W., Wabash, B. & O. CAPACITY — 500,000-tons per year. RAILROAD — Chicago & Alton. CAPACITY — 625,000 tons per year. Eight WW Btn — ; asconcanslaas © mwene ty Bs es Peabody Mine No. 9 RAILROADS—C. & I. M., C. & A., I. C., LOCATION— Calloway, Christian County, C. & N. W., Wabash, B. & O. Illinois. CAPACITY— 350,000 tons per year. (The capacity of this new mine is being steadily increased and will eventually reach 1,250,000 tons per year or more.) By-Products Mine No. 18 RAILROADS--C. & E.I., I. C., C. B. & Q. CAPACIT Y—590,000 tons per year. LOCATION — West Frankfort, Franklin County, Illinois. Operated for By-Products Coke Corporation, Chicago, Iilinots. Nine eS By-Products Mine No. 19 RAILROADS—C. & E. I. and I. C. CAPACITY—500,000 tons per year. LOCATION — West Frankfort, Franklin County, Illinois, Operated for By-Products Coke Corporation, Chicago, Illinois. We Boe. Peabody Mine No. 21 RAILROAD — Wabash. LOCATION —Stonington, Christian County, CAPACITY—500,000 tons per year. Illinois, Ten [ AE: TOE ET RT LMM ee Peabody Mine No. 24 RAILROADS—C. & E. I. and C. C. C. & LOCATION— Westville, Vermilion County, St. L. Illinois. CAPACITY —525,000 tons per year. Burr ‘‘C’’ Mine No. 25 RAILROAD — Illinois Central. CAPACIT Y— 400,000 tons per year, LOCATION —Carterville, Williamson County, Illinois. Operated for Federal Coal Company, Chicago, Illinois. Eleven he Development of Unit Number One at kvai Designed, constructed, developed an for Black Mour Capacity 1,25( Located on Louisv: In designing and building this camp care was taken to make it attrac- tive to labor. Living quarters were provided by the erection of several hundred miners’ houses. There is a well-furnished hotel and three comfortable and popular club-houses. Deep wells were drilled to insure ample pure water for drinking and fire protection. An electric lighting system is being installed throughout the camp. A fully equipped modern hospital with trained nurses and camp welfare workers has been established. For recreation there is a dance-hall, pool and billiard tables and Twelve SLACK MOUNTAIN . Harlan County, Kentucky managed by Peabody Coal Company in Corporation. 0 tons per year Nashville Railroad. ALLEY moving-picture theatre. There is also a well-lighted and properly ventilated school under capable teachers. Enforced idleness at the mines, caused by lack of demand in summer and by shortage of railroad cars in winter, has always been one of the most serious problems confronting the coal industry. To reduce such idleness a storage plant is being installed which will enable the mines to operate without these interruptions. As the entire capacity output has been sold under contract for a term of twenty years, continuous operation is thereby assured with its attendant economy of production. Thirteen New Virginia Mine No. 26 RAILROADS — C. & E. I. and I. C. LOCATION—Johnston City, Williamson CAPACIT Y— 400,000 tons per year. County, Illinois. Operated for Big Muddy Fuel Company, Chicago, Illinois. Kettle Creek Mine No. 27 RAILROAD —C. T. H. & S. E. LOCATION —Shelburn, Sullivan County, In- CAPACIT Y— 250,000 tons per year. diana. Operated for Indiana Hocking Coal Company, Shelburn, Indiana Fourteen ee | CO eT aE a ee Manufacturers Mines No. 28 CAPACITY— 300,000 tons per year. LOCATION~— Hellier, Pike County, Kentucky. Entire output made into coke in a battery of 200 RAILROAD — Chesapeake & Ohio. Mitchell type Bee Hive ovens. Operated for Manufacturers Coal & Coke Company, Hellier, Kentucky. A Superior Mine No. 29 RAILROAD — Midland Valley. LOCATION — Tahona, LaFlore County,Okla- ©CAPACITY—150,000 tons per year. homa, Operated for Superior Smokeless Coal & Mining Company, Tahona, Oklahoma. Fifteen Wa Jasper Park Mine No. 36 / RAILROADS~—C. N. and G. T. P. LOCATION—Pocahontas, Alberta, Canada CAPACITY-—350,000 tons per year. Operated for Jasper Park Collieries Company, Ltd., Duluth, Minnesota. Spiketon Mine No. 37 RAILROAD — Northern Pacific. LOCATION-— Morristown, Pierce County, CAPACITY ~— 159,000 tons per year. Washington. Operated for Pierce County Coal Company, Morristown, Washington Sixteen Sheridan Mine No. 40 RAILROAD— Chicago, Burlington & Quincy. LOCATION — Dietz, Sheridan County, Wyo- © CAPACITY—400,000 tons per year. ming. Operated for Sheridan-Wyoming Coal Company, Inc., Sheridan, Wyoming. Sheridan Mine No. 41 RAILROAD — Chicago, Burlington & Quincy. LOCATION — Dietz, Sheridan County, Wyo- CAPACITY —625,000 tons per year. ming. Operated for Sheridan-Wyoming Coal Company, Inc., Sheridan, Wyoming. Seventeen eee an See eee ae ee ee Ce Acme Mine No. 42 RAILROAD — Chicago, Burlington & Quincy, LOCATION — Acme, Sheridan County, Wyo- CAPACITY— 1,000,000 tons per year. ming. Operated for Sheridan-Wyoming Coal Company, Inc., Sheridan, Wyoming. Model Mine No. 43 RAILROAD — Chicago, Burlington & Quincy. LOCATION — Carneyville, Sheridan County, CAPACITY— 475,000 tons per year. Wyoming. Operated for SheridaneWyoming Coal Company, Inc., Sheridan, Wyoming. Eighteen WW 2 oS Carney Mine No. 44 RAILROAD — Chicago, Burlington & Quincy. LOCATION — Carneyville, Sheridan County, CAPACITY —1,000,000 tons per year. Wyoming Operated for Sheridan-Wyoming Coal Company, Inc., Sheridan, Wyoming. Monarch Mine No. 45 RAILROAD — Chicago, Burlington & Quincy. LOCATION—Monarch, Sheridan County, CAPACITY —1,000,000 tons per year. Wyoming. Operated for Sheridan-Wyoming Coal Company, Inc., Sheridan, Wyoming. Nineteen & K) a ie aie ane VENTE Tae La fare nn Meee er ee a a OT es opin at pe tn Oe Wa 2 Kooi Mine No. 46 LOCATION — Kooi, Sheridan County, Wyo- ming. Cora Mine No. 51 LOCATION — Andrew, Sangamon County, Illinois, RAILROAD — Chicago, Burlington & Quincy. CAPACITY—500,000 tons per year. Operated for Sheridan-Wyoming Coal Company, Inc., Sheridan, Wyoming. RAILROADS— C. P. & St. L. and C. & N. W. CAPACITY — 325,000 tons per year. Operated for Springfield District Coal Mining Company, Springfield, Illinois. Twenty Riverton Mine No. 52 RAILROAD — Wabash. ! LOCATION ~—Riverton, Sangamon County, CAPACITY —525,000 tons per year. Illinois. Operated for Springfield District Coal Mining Company, Springfield, Mlinois. Woodside Mine No. 53 RAILROAD — Wabash. LOCATION — Springfield, Sangamon County, CAPACIT Y— 450,000 tons per year. Illinois. Operated for Springfield District Coal Mining Company, Springfield, [llinois. / Twenty-one , 3 4 : mania Aaa ene ness ee a eee a oN Ne We Black Diamond Mine No. 54 RAILROADS —C. & A. and I. T. S. LOCATION—Auburn, Sangamon County, CAPACITY— 625,000 tons per year. Illinois. Operated for Springfield District Coal Mining Company, Springfield, Illinois. Klondike Mine No. 55 RAILROADS —C. & A. and Wabash, Genre Springfield, Sangamon County, CAPACITY— 500,000 tons per year. inois. Operated for Springfield District Coal Mining Company, Springfield, Illinois. Twenty-two Capital Mine No. 57 RAILROADS — Wabash, C.&A., I. C., B. & C. LOCATION — Springfield, Sangamon County, US eh Sec W png aa Illinois. CAPACIT Y— 450,000 tons per year. Operated for Springfield District Coal Mining Company, Springfield, Illinois. Taylorville Mine No. 58 RAILROADS—C. & I. M., C. & A., I. C,, LOCATION — Taylorville, Christian County, CoS NeW Ny abashaB 20. Illinois, CAPACITY — 625,000 tons per year. Operated for Springfield District Coal Mining Company, Springfield, Illinois. Twenty-three cy 4 CALGARY Ba ds 7A eee eae jee ee mS s wom wer TAHONA® Twenty four 3 ie. (XS oN Mines Operated by Peabody Coal Co. Annual Capacity over 18,000,000 Tons o Sd Sd ILLINOIS Located On . Shellbark, Marion, Williamson Co. C&EI-CB&Q-IC-MO PAC Victor, Pawnee, Sangamon Co. C&IM-C&A-IC-WAB-C&NW-B&O . Sherlite, Sherman, Sangamon Co. C&A . Victor, Kincaid, Christian Co. C&IM-C&A-IC-C&NW-WAB-B&O . Victor, Humphrey,Christian Co. C&IM-C&A-IC-C&NW-WAB-B&O . Victor, Calloway, Christian Co. C&IM-C&A-IC-C&NW-WAB-B&O . Peabody, West Frankfort, Franklin Co. C&EI-IC-CB&Q Peabody, West Frankfort, Franklin Co. C&EI-IC . Stonington, Stonington, Christian Co. WABASH . Westville, Westville, Vermilion Co. C&EI-BIG FOUR Burr, ‘‘C’’ Carterville, Williamson Co. IC - New Virginia, Johnston City, Williamson Co. C&EI-IC . Cora, Andrew, Sangamon County CP&StL-C&NW Riverton, Riverton, Sangamon Co. WABASH . Woodside, Springfield, Sangamon Co. WABASH Black Diamond, Auburn, Sangamon Co. C&A-ITS . Klondike, Springfield, Sangamon Co. C&A-WABASH . Capital, Springfield, Sangamon Co. CI&W-B&OSW-IC-ITS-C&A-WABASH-C&NW . Taylorville, Taylorville, Christian Co. WABASH-C&IM-C&A-IC-C&NW-B&O INDIANA . Kettle Creek, Shelburn, Sullivan Co. CTH&SE . Polk Patch, Boonville, Warrick Co. SOUTHERN KENTUCKY Manufacturers, Hellier, Pike Co. - Black Mountain, Evarts, Harlan Co. OKLAHOMA Superior, Tahona, Le Flore Co. WASHINGTON Spiketon, Morristown, Pierce Co. WYOMING . Sheridan, Dietz, Sheridan Co. Sheridan, Dietz, Sheridan Co. . Acme, Acme, Sheridan Co. Model, Carneyville, Sheridan Co. . Carney, Carneyville, Sheridan Co. Monarch, Monarch, Sheridan Co. Kooi, Kooi, Sheridan Co. CANADA . Jasper Park, Pocahontas, Alberta Twenty-five eS WA 2 SOME OF OUR CLIENTS Acme Coal Company, Acme, Wyoming Amalgamated Development Corp., Carneyville, Wyoming Big Muddy Fuel Company, Johnston City, Illinois Black Mountain Corporation, Evarts, Kentucky By-Products Coke Corporation, Chicago, Illinois Central Ill. Public Service Company, Chicago, Illinois Chicago, Burlington & Quincy Railroad, Chicago, Illinois Chicago, Rock Island & Pacific Railway, Chicago, Illinois Commonwealth-Edison Company, Chicago, Illinois Consumers Company, Chicago, Illinois Continental & Commercial Nat.onal Bank Chicago, Illinois Department of the Interior, United States Government Federal Coal Company, Carterville, Illinois First National Bank, Sheridan, Wyoming Fuel Controller for the Dominion of Canada Indiana Hocking Coal Company, Shelburn, Indiana Iowa Railway & Light Company, Cedar Rapids, Iowa Jasper Park Collieries Co,, Ltd., Duluth, Minn. and Pocahontas, Alberta, Canada Kooi Coal Company, Kooi, Wyoming Manufacturers Coal & Coke Company, Hellier, Kentucky Merchants Loan & Trust Company, Chicago, Illinois Middle West Utilities Company, Chicago, Illinois Monarch Coal Mining Company, Sheridan, Wyoming Peabody, Houghteling & Company, Chicago, Illinois Peoples Gas Light & Coke Company, Chicago, Illinois Pierce County Coal Company, ‘ Morristown, Washington Public Service Co. of Northern Illinois, Chicago, Illinois Scandanavian-American Bank, Tacoma, Washington Semet-Solvay Company, Syracuse, N. Y. Sheridan- Wyoming Coal Company, Sheridan, Wyoming Springfield Coal Mining Company, Springfield, Illinois Springfield District Coal Mining Co., Springfield, Illinois Superior Smokeless Coal & Mining Co.. Tahona, Oklahoma United States Distributing Corporation, New Yceurk City New York City J. Woolley Coal Company, Evansville, Indiana Harry Payne Whitney, Twenty-six i * Sey — As 3 01 ['