History of Dakota Territory, volume III, Part 4

Author: Kingsbury, George Washington, 1837-; Smith, George Martin, 1847-1920
Publication date: 1915
Publisher: Chicago, Ill. : S.J. Clarke Publishing Company
Number of Pages: 1146

USA > South Dakota > History of Dakota Territory, volume III > Part 4

Note: The text from this book was generated using artificial intelligence so there may be some errors. The full pages can be found on Archive.org (link on the Part 1 page).

SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

resulting from decomposition and erosion of the above formations in the Ter- tiary and recent times. The first discovery of gold in the Black Hills by white man was on French Creek early in August, 1874. Traces of gold have been found in glacial deposits throughout the state, but the quantity is insignificant. Silver ore occurs either in connection with gold or lead. The production is con- siderable, but it does not begin to equal that of gold. In 1893 the silver production was $181,527, while that of gold was nearly four million dollars.

By 1890 the minerals of the Black Hills, particularly the gold, had awakened the whole world. For fourteen years it had remained for the comparatively few residents of the Hills to develop its rare resources and show the world the marvelous richness of its mines. By 1890 capital from all portions of the world had sought investment in the rich deposits of the Hills. At first capital was suspicious, fearing the "wildcat" and "blue sky" schemes of every description which manifestly and unquestionably had found abundant footing in this por- tion of the country. By 1890 large sums of capital had come here not only from the eastern states but also from Europe, and the big mining companies had begun to crush the swindlers and show that the wealth of the Hills was all that had been dreamed of by the country in its wildest and most ardent moments. The Homestake and Holy Terror companies were two of the first to reveal thoroughly the wonders of the mines in the Hills and paint the fascination of the scenery. Others had begun to secure foothold in the 'Sos and the extent of the gold deposits began to be measured with some degree of accuracy. The geological ring which encircled Mount Harney and contained the gold was first found to outcrop at several places south of Lead City. Rich gold ores were found at Ruby Basin, Bald Mountain, Black Tail and near. Deadwood and else- where. So prosperous had become mining operations by 1890 that the output of the Homestake mines during two weeks in July, was $140,000 in gold. As time passed new deposits were discovered not only in the Hills but in many adjoining districts. Pay dirt was struck on Sage Creek, Siebach County, in April, 1891. In September, 1891, twenty-two cars loaded with gold ore mostly from Lawrence County, reached Omaha for reduction in the large smelter of that city. Many of the most prominent men of the Black Hills accompanied this train to Omaha to assist in the delightful task of advertising the wealth of that region. The Omaha smelter at this time employed about one thousand per- sons, and the owners were anxious to secure the trade of the Hills. The train was met by a delegation of Omaha citizens 100 miles from that city and a joyous and exhilarating time was enjoyed by all. By September, 1893, the placer mines on Deadwood Creek had been abandoned. They had been commenced in the early spring of 1876, but now the waters of the creek were clear for the first time in seventeen years, it was said.

In 1893 the Black Hills mineral region proper embraced the counties of Lawrence, Pennington and Custer, but Fall River and Meade likewise contained productive mines. In Lawrence County was the chief gold mining industry, the center of which was Lead. There the Homestake Mining Company operated with many mills, sawmills, blacksmith shops, machine shops, foundries, boiler shops, systems of waterworks and about one thousand five hundred men. The wages paid by the Homestake Company at this time varied from two and one- half dollars to five dollars per day. The Deadwood-Terra and Caledonia mines

CYANIDE PLANT, LARGEST IN THE WORLD, HOMESTAKE GOLD MINING COMPANY, LEAD

GOLDEN STAR MILL, ONE OF FIVE 200-STAMP MILLS OF THE HOMESTAKE GOLD MINING COMPANY, LEAD

SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

of the Homestake group were at Terraville. These mines were closed from June, 1893, to August, 1894, and 300 men were thrown out of employment. At Bald Mountain, five miles west of Lead, were rich mining regions known as Ruby Basin, Fan-Tail Gulch, Nevada Gulch, Portland and Annie Creek. The ores from this region were not free milling like those of the Homestake group, but were refractory and required special treatment. The names of the mines in this vicinity were Ross-Hannibal, Horseshoe, Golden Reward, Double Stand- ard, Little Bonanza, Tornado, Welcome, Hardscrabble, Boscobel, Buckston and Mark Twain. The Golden Reward Company owned the Deadwood smelter and the Chlorination Works. The men here were paid about the same as at the Homestake Mines. The term Carbonate Camp was given to the mining region eight miles northwest of Lead, where both gold and silver were found. It was officially described as "a gold and silver camp with an abundance of siliceous gold ore croppings, with as yet but little development." The mines here were called Iron Hill, Ajax, Pocahontas, U. S. Grant, Victory, Red Cloud, Transit, and Yankee Boy. About five miles north of Lead a gold mining section was known as Garden City. At Galena, twelve miles southeast of Lead, was a valu- able silver mining deposit. The mines here were called Two Bears, R. B. Hayes, Silver Queen, Bullion and Hester A. Black Tail was the name of a mining region about one and one-half miles north of Lead where the following gold mines were operating: Marion, Wells Fargo, American Express and Esmerelda. At Central City, one mile northeast of Lead, were several gold mines, one of which was called Columbia. Near Lead, over the hill, was Yellow Creek, and along its banks were rich gold mines. This ore was refractory, but assayed as high as $258 to the ton. The Alma Mine was being opened at this time. In 1893 the South Dakota Mining Company, with headquarters at Deadwood, became the owners of a group of mines on Annie Creek at Bald Mountain. This was largely an English company, at the head of which was E. W. Locke, of London.

Among the industries of Meade County the quarrying of building stone was early of great importance. At Doyle Station on the Fort Pierre & Black Hills Railway, extensive quarries were opened at this time by the Black Hills Quarry Company. They procured a pure sandstone of three distinct colors, pink, white and red. This stone ran in strata of from one to twelve feet in thickness, per- mitting the quarrying of the stone in immense blocks for any and every building purpose. Already this company was furnishing large quantities of stone for building purposes over a considerable extent of the United States. The greatest source of wealth of Meade County, however, was agriculture. Choice farming land lay in the north and east portions. Sturgis was the agricultural center of the Hills and was the home of the Black Hills Exposition Company, which already had inaugurated a perpetual series of harvest festivals to be held annu- ally. At these displays were shown apples, pears, plums and grapes of the Black Hills Nursery at Rapid City; a fine display of cheese and butter from the Sturgis Creamery; fruit, jellies, preserves, apples and plums from private orchards. Hereford cattle were also shown at this exposition by G. B. McPher- son. Many fine imported horses were also exhibited. The vegetable entries could scarcely be surpassed anywhere in the United States. The inauguration of this exposition enterprise was mainly due to the efforts of John Scollard, of Sturgis.

SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

The mines of Pennington County were principally gold, the most notable being J. R., about twenty miles from Rapid City, Summit, Keystone and Standby. In this county also was the center of the tin mining industry of the Hills. Per- haps the most noted was Harney Peake, with headquarters at Rapid City.

Custer County was the seat of gold and mica mining, the leading mines being Northern Star, Mecca and Placer. In this county, in connection with inica mining, was an axle grease factory. In 1904 the buildings and equipment were completed and in a short time Sylvan City and other points were lighted by electricity. At this time a rich strike of gold was discovered at Holy Terror Mine near Keystone. The ore was free milling and ran about forty dollars to the ton. A stamp mill was being erected by the Holy Terror Company.

In Fall River County the quarrying of building stone in immense quantities was already in progress. The stone was beautiful, very hard and promised great utility. Near Hot Springs several extensive quarries had already been opened. Among these were the Patrick and Moody quarries, which turned out red and white sandstone; the Evans, a cream-colored sandstone; the Odell, a red sand- stone similar to that obtained at the Patrick, Harney and Moody quarries. In the vicinity of the latter two, on Lame Johnny Creek, was mined a beautiful quality of kidney marble, which took a high and mirror-like polish. Another valuable feature of Fall River County was the natural springs of mineral water. Already they were famous throughout the world.

The gold production of the Hills in 1893 was $4,053,500. The gold mines were Homestake, Highland, Deadwood-Terra, Caledonia, Big Missouri, Hawk- eye, Minerva, Columbus, Bartholemus & Wilson, Standy, Minnesota, Keystone, J. R., Red Cloud, Golden Reward, Rapid City, D. & D. Smelter and Two Bears. The amount of placer gold obtained this year was only $32,000. The gross value of the silver produced was $9,346.64.

Governor Mellette in his message to the Legislature in 1893 dwelt on the vast importance of mining in South Dakota. He declared that the advance in that industry had been phenomenal-that the previous two years had shown marvelous mining developments and evolutions. A notable fact, he said, was the great increase in the quantity of silver bullion that was then being taken out. Though considered but a secondary product, the yearly output amounted to about $250,000. However, the greatest advance in the mining industry, he stated, had been in the successful treatment of the refractory gold-bearing ores. These high grade and other rich ores had long baffled the genius of invention and the skill of science in the efforts to extract the metal with. profit. Persistent experiment aided by the school of mines, had succeeded after many years in solving the problem and now, in 1893, the governor declared, the many large mills in operation and the many more in various stages of completion proved how successful had been the discoveries of new methods of reducing the ores. He said: "The ores after perfect trituration and roasting are subjected to a chemical treatment of chlorine in vast iron retorts, which process carries off the precious metal, thus yielding most satisfactory business results. The profitable treatment of these ores, which are numerous in extent, marks the beginning of a new and most important era in the development of the mineral resources of the state and has increased by 331/3 per cent the shipment of gold bullion from the Hills. The output from the low grade free milling ores of the Homestake

SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

group of mines bids fair to continue indefinitely with excellent results. The entire gold bullion product of the mines will reach $5,000,000 during the present year, while during the same period $10,000,000 of foreign capital has been invested in mining property and $500,000 expended in the erection of new plants ; but the crowning success of our mineral industries during the past year has been the putting in successful operation by the Harney Peak Milling and Mining Company a large and thoroughly equipped mill for the reduction of tin ores, which product will be placed upon the market early in the present month. It seems now a well-established fact that South Dakota will before many years be producing bulk tin sufficient to meet the entire demand of the United States for this immense product, to pay for which we now send abroad annually over $25,000,000. The future of our state as a mineral producer is now assured here; mining prospects never looked better." He noted that the mines of the state employed a total of about 13,000 men and complimented Titus E. Corkhill, state mine inspector, for what he had accomplished to protect the lives of the miners. He stated that the inspector had decreased accidents in mines fully 50 per cent. The inspector had in one year investigated 250 complaints and made 300 official inspections.

Up to May, 1894, the Black Hills had produced a total of $56,000,000 in gold alone. Associated with the ores taken out were silver, copper, tin, antimony, iron, nickel, lead, uranium, mica, graphite, asbestos, salt, all varieties of build- ing stone, granite, sandstone, white and colored gravels, porphyry, brick clay both white and red, clay pottery, cement rock, limestone, gypsum, and many other natural products.

From a distance the Hills form a striking picture. They occupy an elevated tract and are heavily timbered, principally with white pine, which at a distance make them appear black, and hence the name. All the strata of rock has been shoved up edgewise, forming a circle around the central point åt Harney Peak. The entire region is about as large as the State of Connecticut. It was and is the only heavily timbered portion of South Dakota. Around the Hills is an excellent agricultural soil and the water of the springs is sweet and abundant.

Late in 1894 the state mine inspector made a complete report showing the condition of mining in the Black Hills. There were then in operation upon a paying basis fifteen companies, which produced in 1894 613,500 tons of ore, yielding $3,354,891. During the year there were thirteen accidents in the mines, of which eight were fatal. As a whole the miners were contented. The Home- stake and its associated mines were the prominent ones in Lawrence County. In Pennington County were five large and active companies. The Old Charlie Mine in Custer County was in operation this year. The most noteworthy event in mining circles was the development of the McArthur Forest or cyanide proc- ess for the recovery of gold and silver from refractory ores. This process was put in operation and proved of the greatest value throughout the mining regions of this state. About a year before a cyanide plant was erected in Deadwood under the supervision of J. S. Childs and had a capacity of about sixty tons per day. The Golden Reward Company, in addition to their chlorination plant, com- pleted also in 1894 a cyanide plant with a capacity of 100 tons per day. The Homestake Mining Company had erected an immense air compressor plant and had added 20 stamps to the Homestake or 80-stamp mill, making a 100-stamp

SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

mill. In addition the Homestake Company had thoroughly overhauled and remodeled their mills and added concentrators. The Bullion Company near Galena erected new housing works. The Holy Terror Company about the same time purchased the Hardscrabble or Ruby Basin field for $50,000. Prospecting was indulged in quite extensively this year, and placer mining was quite active. The discovery of free-milling ores in Pennington and Custer counties was a notable event. The total gold production of 1894 was $3,401,891.

Early in 1895 the Golden Reward Mining Company showed as the product of six days work a flat brick worth $17,000. That company had recently made important discoveries. About the same time the Holy Terror Company made a rich strike at Keystone. At a depth of eighty feet they found ore that assayed $100 per ton. This discovery caused a rush 'for that locality. In 1894 the Government brought suit against the Homestake Mining Company for $700,000 for having cut a large amount of valuable timber from the natural forests. In the spring of 1899 the mines of Lawrence County enjoyed the greatest period of prosperity in their history. Many new strikes of gold, silver and copper were made. An important event was the establishment of smelters in the Black Hills. In the 'gos the companies used the old iron process to separate the gold from the ore. In the Black Hills were large veins of auriferous pyrite. This was found to be an excellent flux for the separation of gold from the ore. Almost every year new discoveries and new processes of ore reduction were discovered either by the Government or by some one of the companies engaged in mining. The product of 1901 amounted to about eight million dollars in gold from the entire region of the Hills. In ten months the following amounts were taken out by the different companies; in this operation there were employed 3,207 men :

Homestake

$4,303,997.57

Imperial

180,000.00

Golden Reward

1,223,688.99

Spearfish

165,000.00

Horseshoe

575,000.00

Deadwood-Standard

20,000.00

Holy Terror

180,000.00

Golden Slipper

20,000.00

Portland

84,000.00

Placer

100,000.00

Clover Leaf

80,320.00

Alder Creek

45,231.00

Dakota

150,000.00

Intermittent Producers.

50,000.00

Rossiter

90,000.00

Wasp No.

75,000.00

Total

$7,342,217.56

"The wealth of the Black Hills has been known for years and yet the Hills have not been developed one hundredth part as they should have been for the reason that unscrupulous men have sand-bagged capital and made willing investors afraid to touch properties that would pay hundredfold. Fortunately for the Hills, the railroads which have only recently been completed to the cen- tral portions, have let the light in on the real wealth of the varied resources and now capital is stealthily and steadily creeping in and developing the riches which man's dishonesty has kept imprisoned. The so-called white people of the Hills are now getting the upper hand and are realizing how much they have suffered from the schemes and machinations of the daylight highwaymen who preferred a salted prospect of tenderfoot to selling a good property for a round price. Abandoned works are to be found in all parts of the Hills, but a future for the Hills and the wonderful resources which they now contain seems assured. Good property can be now secured at reasonable prices and new processes are

SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

being discovered to extract the gold from formerly rich but refractory ores. The black times are past and the prospects for the future are now so good that it would not be surprising if another generation made what have been the Black Hills of the present day, the Golden Hills of South Dakota." -- Minneapolis Times, January, 1895. The Times stated in the same article that the Black Hills were one of the wonderlands of the world; that it had been thrown up by vol- canic action from the level plains and that they contained almost every mineral known to mankind and nearly all of them in paying quantities. It noted the presence of gold, tin, nickel, platinum, coal beds, excellent water, heavy pine forests and beautiful scenery.

During the year 1897 ten deaths from accident occurred in the mines of the Black Hills. The refractory ore mines produced $2,219,287.58. The names of the refractory mines were as follows: Golden Reward, D. & D. Horse Shoe, Bonanza, Wasp No. 2, Dividend, Clifton & Ashton, Carroll Group, Harrison, Little Blue, Wasp Mining Company, Wasp No. 4,' A. J. Smith, Dacy, Rua, Balmoral, Buxton, Eva H, and Yellow Creek Gold Mining Company. The Golden Reward produced the most, over six hundred and eighty-two thousand dollars. The product of the free milling mines during the same year was $3,511,- 200. The free milling mines were as follows: Homestake, Highland, Dead- wood-Terra, Holy Terror, Columbus, Dead-broke, Sunnyside, Grizzly Bear, Hawkeye and Burlington. There were other mines which failed to make reports, among them being Durango, Swamp Eagle, Kicking Horse, Placer, and a few others which produced about one hundred thousand dollars. This includes both gold and silver. The amount of silver was very small. Close estimates were made in a few cases. In several instances it was impossible to secure a record of the output. The total output was about double what it was in 1894.

At this time, T. J. Grier was superintendent of the Homestake mines. This was the best mine of free milling ore in the United States. A depth of 800 feet had been reached and within sight was an unlimited amount of ore. Thus far three shafts had been put down-Star, Old Abe and Ellison. The Ellison was the newest one, having been put down in 1896. Great care was used at this time to prevent accidents. About four hundred stamps were constantly at work in the Homestake Mine. The concentrates were saved and sold to the Deadwood smelter. Every scheme known to the scientists or miners was employed to save gold. The Highland Mine was under the same management as the Homestake Mine. It had a shaft 500 feet deep. The cage was large enough to carry two cars of one ton each. This mine was connected by tunnels with the Deadwood- Terra and Homestake mines. A mill of 140 stamps was kept at work here. Richard Blackstone was superintendent of the Deadwood-Terra Company. This was located at the head of Bobtail Gulch, a tributary of Deadwood Gulch. It had been a producer since the early days, was owned mostly by the Homestake stockholders, and in early times paid large dividends. The shaft was being sunk now down to the 800-foot level, and the ore chute or ledge was about three hundred feet west of the shaft. At this time the Caledonia Mine had been idle for a number of years, but was good property and could be worked from the Deadwood-Terra Mine. There was no timber used in this mine, as the ore was broken down and was left under foot with just enough taken away to make it convenient for the miners to work.

SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

The Columbia Mine was located at Saw Pit Gulch. Christian Ruth was fore- man and manager. This property was located in early days, but had remained idle most of the time and had not yet been thoroughly developed. Ruth & Lard- ner were the owners. In 1895 a shaft 200 feet deep was sunk and a vein of high grade free milling ore was found. A ten stamp mill was set at work. Black Trail Gulch, a tributary to Deadwood Gulch, had several good mines, among which were the Dead Broke, Carroll Group and Kicking Horse. The Dead Broke was owned and operated by Nelson & Godfrey. The ore was what is called cement, which is gravel cemented with clay, constituting an auriferous stratum. It was free milling and had rich pockets. A ten stamp mill was at work. The Carroll group of mines consisted of twelve mining claims in the Black Tail Gulch. These mines were being actively worked in 1897. Over 700 feet of drifts had been driven and 400 feet of shafts sunk. The output of first class ore in the summer of 1897 was from 15 to 25 tons per day, ranging from $25 to $65 per ton in gold and 2 ounces of silver.

The Kicking Horse property was in the Carroll group and was regarded as very valuable. There were several chutes of high grade ores. It was owned by Godfrey & Johnson. The C. O. D. group consisted of sixteen full claims and was owned by a party of eight men. Thus far nothing had been produced. A shaft had been started and it was the belief that the whole property was valuable. It was east of the Kicking Horse Mine. There were several small yet valuable mines around Lead, among them being Durango, Harrison, Golden Crown, Golden Summit, Swamp Eagle, Iowa and Reddy. The Durango was owned by Foley, Sullivan & Cusick. The Harrison was operated by the Harrison Min- ing Company. The Golden Crown, Golden Summit, Iowa and Reddy were bonded during the year, but had not yet been worked. The Swamp Eagle had been worked a portion of the year and yielded handsome profits. There were large returns in working many of these smaller mines. For instance, the Har- rison mines with five men working every day in the year at $3.50 per day, real- ized $6,387.50. This sum deducted from the total output left $34,719.30 to pay for supplies, shipping, milling, etc.

On Yellow Creek were a number of important mines. Already several for- tunes had been made there. Two Bit Mines were valuable. A large body of ore was found in the Hardin shaft at a depth of 200 feet. It was iron pyrites and was valuable for use in smelters. This was a Chicago company. The shafts being worked were the Hardin, Great Eastern, Chicago, Two Bit, Great North- ern and Hardin Standard. Several others were being sunk. The Clifton and Ashton mines were in Nevada Gulch. They had produced well and were under the same management as the Bonanza. Ragged Top Camp was five miles west of Bald Mountain. Several promising strikes had been made there. Seams of ore had been found from two to four feet thick. The ore was high grade, rang- ing from fifty dollars to five hundred dollars per ton. The Dacy Shaft here was down 430 feet. .

The Deadwood & Delaware property was situated south of the Golden Reward and Horseshoe mines at Bald Mountain and was a steady producer. F. R. Carpenter was superintendent. The ore in 1897 was taken from the Fannie and Union shafts. Other shafts were being sunk.

Need help finding more records? Try our genealogical records directory which has more than 1 million sources to help you more easily locate the available records.

History of Dakota Territory, volume III, Part 4

Author: Kingsbury, George Washington, 1837-; Smith, George Martin, 1847-1920 Publication date: 1915 Publisher: Chicago, Ill. : S.J. Clarke Publishing Company Number of Pages: 1146

Author: Kingsbury, George Washington, 1837-; Smith, George Martin, 1847-1920
Publication date: 1915
Publisher: Chicago, Ill. : S.J. Clarke Publishing Company
Number of Pages: 1146