Fellows Morton & Clayton Ltd was, for much of the early 20th century, the largest and best-known canal transportation company in England. The company was in existence from 1889 to 1947.
The company started in 1837 when James Fellows, an agent for a canal carrier, decided to start his own company. James was 32 and based in West Bromwich. His first boat was called "Providence". In January 1839 he was allowed toll credit on the Warwick and Napton Canal as his boats were working down to London so frequently. He expanded rapidly and moved his operation to Toll End in Tipton in 1841. His business was as a "Railway & Canal Carrier" even though his rail activities were minor. James died in 1854 aged 49, and his widow Eliza carried on the business until their son Joshua was old enough to be an official partner. By 1855 he was transporting 13,000 tons of iron castings between London and Birmingham each year.
In the late 1850s a new boat-building facility was built at Tipton and by the early 1860s the fleet had grown to some 50 boats. Long-distance carrying was the mainstay of the business during these early years.
In 1876 Frederick Morton brought with him investment capital to expand the business, and the company name was changed to Fellows Morton & Co. This new company continued to absorb smaller traders, so expanding with new boats and also with acquired vessels.
In 1888-1889 William Clayton of Saltley, who operated a special fleet of liquid cargo boats as well as traditional loads, became the third partner. William died before the companies merged formally but his son, Thomas, took his place. Fellows, Morton & Clayton Ltd. was formed on 3 July 1889.
The three managing directors appointed at the first meeting of the new company were Joshua Fellows, Frederick Morton and Thomas Clayton, on salaries of £600 (equivalent to £60,000 in 2015), each. The new chairman of Fellows, Morton & Clayton Ltd was Alderman Reuben Farley the majority of shareholders being family members of the directors of the company.
At the time of formation the general cargo fleet amounted to some 11 steamers and around 112 butty boats. The tank boats were transferred to another new company which was called Thomas Clayton Limited of Oldbury.
The company's first results for the 18 months ending 30 June 1890 showed a net profit of £7,497 (equivalent to £740,000 in 2015),. Trading had not been easy to start with - a dock strike in London had caused a serious financial loss and an epidemic of Russian influenza amongst the horses had caused many deaths. However, as there was new traffic, a new basin and headquarters were completed at Fazeley Street in Birmingham. The headquarters were by the builder, Edwin Shipway. Also the company had acquired the interests of a rival carrier, Fanshaw and Pinson. The capital then stood at £84,620 (equivalent to £8,400,000 in 2015),; barges, boats and steamers were valued at £20,852 (equivalent to £2,070,000 in 2015), and horses at £4,000 (equivalent to £400,000 in 2015).