118 



COLORADO. 



Denver and Rio Grande Railroad then going 

 forward. This matter was the subject of a 

 correspondence between Governor Pitkin and 

 Secretary Kirk wood. The Secretary called at- 

 tention to the fact that as yet settlers have no 

 rights upon the old reservation lands, for the 

 protection of which they can properly invoke 

 the aid of the Government, as those lands have 

 not yet been formally opened for settlement. 

 Nevertheless, white settlers flocked upon them 

 as soon as the Indians retired, and for the most 

 part the issuing of patents will be subsequent 

 to taking possession. In the valleys of the 

 streams on the reservation there is land enough 

 for 1,500 ranchmen and stockmen, and the 

 great fertility of the soil, the mildness of the 

 climate, the abundance of fruit, vegetables, for- 

 age, fish and game of all kinds, will cause the 

 whole region to be rapidly peopled. But few 

 Indians now remain in Colorado, and these are 

 in such close proximity to the whites, in the 

 extreme southwestern portion of the State, that 

 there is very little fear of any disturbance from 

 them. The Uintahs and White River and Un- 

 compahgre Utes are now located together along 

 the Uintah River in Utah. 



In the annual report of the Director of the 

 Mint, Colorado is credited with a production of 

 $3,400,000 in gold and $15,000,000 in silver for 

 the fiscal year ending June 30, 1881, a total of 

 $18,400,000. The production of the previous 

 fiscal year was somewhat larger, being $3,200,- 

 000 in gold and $17,000,000 in silver, a total of 

 $20,200,000. Local estimates put the total 

 bullion product of the calendar year 1881 at 

 $23,500,000, of which more than half, or $13,- 

 170,576, was turned out by the smelting-works 

 in and about Leadville. There was more hard, 

 intelligent, and well-directed work done in the 

 mines of Colorado in 1881 than in any previous 

 year. The falling off in the out-put was due 

 to failure of one or two leading mines pre- 

 viously yielding large amounts of ore, and the 

 closing of half a dozen others through the in- 

 cessant flow of water in their best workings. 

 Some new mines were opened, but nothing in 

 the nature of a "bonanza" was brought to 

 light. A more serious falling off in the aggre- 

 gate production was prevented only by a bet- 

 ter system of working existing mines, the avoid- 

 ance of wasteful methods, and a more careful 

 attention to small results. By the use of bet- 

 ter machinery the cost of treatment was in 

 many cases materially reduced ; grades of ore 

 which were formerly considered worthless, and 

 were thrown into the waste-dumps or left in 

 heaps in the mines, were taken out and treated 

 with fair profits. Not only in and around 

 Leadville but throughout the mining districts 

 there was evidence that the era of wild specu- 

 lation and extravagant expectations is rapidly 

 passing away. There is a growing disposition 

 to take a more sober and sensible view of the 

 business of mining, to be content with returns 

 which wosld be recognized as liberal in any 

 other business, and to manage a mine with a 



view to a production within reasonable limits, 

 but constant, rather than in the foolish hope 

 of sudden and enormous gains. Instead of is- 

 suing an excessive amount of capital stock and 

 trying to pay a dividend on the first batch of 

 ore smelted, mine-owners are now beginning 

 to put faith in the wiser policy of moderate 

 capitalization, with a sufficient amount paid 

 up to develop the mine and put it in order 

 for uninterrupted and productive working. In 

 fissure-mining, for instance, experience has 

 proved that a manager can not undertake to 

 pay dividends before the shaft has been sunk 

 500 feet, with four or five levels at intervals of 

 from 75 to 100 feet ; and, until adequate hoist- 

 ing and pumping machinery has been provided, 

 and a large reserve of ore is on hand or in 

 sight, no prudent manager will attempt to di- 

 vide any money among the share-holders. It 

 was through following the old, reckless meth- 

 ods of mining development that the state of 

 things described in the following paragraph 

 from an article in a Denver newspaper was 

 brought about: 



The records of each mining county, and those of 

 the Secretary of State, are burdened with mining cor- 

 porations with capital stocks ranging from ten thou- 

 sand to twenty million dollars. Outside of Leadville 

 very few of these have paid any dividends at all. It 

 is safe to estimate that ninety-five hundredths of them 

 never will pay -dividends as at present organized and 

 conducted. A large proportion of them are conceived 

 in fraud and full of iniquity from top to bottom. A 

 great many are dangerous schemes, to be avoided by 

 honest men. 



The horizontal veins in the vicinity of Lead- 

 ville have thus far yielded large returns. It is 

 the opinion of the State Geologist that upright 

 or inclined fissures will ultimately be found in 

 the granite formation beneath the volcanic 

 rocks in which ores are now being mined. 

 This theory is confirmed by discoveries lately 

 made in various parts of the State. Some of 

 the telluride veins are of enormous richness. 

 One mine yielded ores which, for nearly two 

 years, gave an "average of over five thousand 

 dollars per ton in gold, and some ores yield as 

 high as eighty dollars per pound. 



Coal, iron, and petroleum are now among 

 the products of Colorado, the two former be- 

 ing turned out in considerable quantities. At 

 Rico, coking coal of a high quality is found in 

 great abundance. A valuable lignite is pro- 

 duced at Como, in the South Park ; and un- 

 limited quantities of anthracite and bituminous 

 coal are found at Gothic, Irwin, and Rugby 

 mining-camps. The lignitic coals, found in 

 the northern part of the State, are very dense, 

 jet-black in color, of a high luster, and without 

 any fibrous or woody structure. They have an 

 average specific gravity of 1'33, are remarkably 

 free from sulphur, the average admixture not 

 exceeding one per cent ; and they burn readily 

 and freely, with a high heating power, and a 

 small residuum of ash. Some of the mines 

 from which these coals are obtained have been 

 worked continuously for twenty years. None 



