History of Dakota Territory, volume III, Part 7

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 7


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The condition of the mining operations in the Hills in 1908 was never better nor more prosperous. Greater attention was paid to the security of life, and every provision known to modern mining operations was adopted to prevent accidents. In case of suffocation or injury measures for prompt rescues or assistance were up with the times. The system of mine ventilation was vastly improved and among the best in the country. Generally the mines of the Hills were dry, and few were so wet as to require the continual working of pumps. Thus far the precautions for safety and health were so thorough that mining was


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regarded as safe as any other business operation. Mine managers complied with the laws better than formerly, because they found it best for their interest to do so. In smaller mines protection from fire was greatly improved. During the year the mines of the state produced in gold and silver bullion $7,459,850. This was a large increase over the output of former years. Several mining companies did not report this year and their production was not included in these figures. The principal companies were as follows: Homestake, Mogul, Golden Reward, North Homestake, Imperial, Wasp No. 2, Gilt-Edge Maid, Portland, Lundberg, Door & Wilson, Minnesota, Branch Mint, Standby, and a few others. Placer mining realized about $10,000 in gold and silver bullion. During this year the Westinghouse Electric and Manufacturing Company produced about eighty-five thousand dollars' worth of mine run mica. The total tonnage of all the gold mining companies was 1,938,000. The total number of men employed was 3,560. The Homestake employed 2,650 men, Mogul Company 225, Golden Reward 140 and the others all less than one hundred each. This total did not include the number of men employed in placer mining. The serious fire in the Homestake Mine in March, 1907, which generated poisonous gases and resulted seriously, was desperately fought and was finally conquered. This casualty had done much to cause the mining authorities and the state inspector to improve the conditions surrounding workmen in the mines. A thorough study was made of how to overcome the effects of poisonous gases which had been inhaled. The result was a vast improvement within a comparatively short time of the surroundings under which the miners worked.


Mining operations in 1910 received a serious setback owing to strikes and other opposing causes. Operations were interrupted almost wholly for several months during the year. In addition the mill of the Wasp No. 2 Company was destroyed by fire January 25, 1909, which caused a considerable decrease in the total production of the Hills. In October, 1909, a mass meeting of the Lead City Miners' Union No. 2 and the Central City Miners' Union No. 3 passed resolutions demanding all ex-members who were in arrears to reinstate and place themselves in good standing with the union. On October 25 the union published in the local newspapers the proceedings of a meeting held on October 24, when resolutions were passed calling upon all workers under the jurisdiction of the unions to join the organization. They further resolved that all men neglecting or refusing to become members in good standing of the local union in whose jurisdiction they might be working would be declared unfair to the union. They also resolved that the members of the unions would thereafter refuse to work with any and all men who should thus become unfair to the organization or refuse to comply with the provisions of the resolutions. On November 10, 1909, the Homestake Mining Company commenced suit in the United States Court against the Lead City Miners' Union No. 2 to recover damages resulting from the intimidation of non-union employes, and a week later the same com- pany issued the following notice: "That the Homestake Mining Company will employ only non-union men after January 1, 1910. The present scale of wages and the eight-hour shift will be maintained. All employes who desire to remain in the company's service must register at the general office of the company on or before December 15, 1909." The registration required them to sign the follow- ing card : "I am not a member of any labor union and, in consideration of my


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being employed by the Homestake Mining Company, agree that I will not become such while in its service." On November 21 a strike was voted by the union which was referred by wire to the Western Federation of Miners officials at Denver, Colo. This course was approved and the strike was set in progress. On November 24 the Homestake shut down its works and immediately after- ward the mines of the Bald Mountain district ceased operations. Thereafter nothing was done until January 19, 1910, when the Homestake Company again commenced operations, requiring each employe to sign the card previously pre- pared before going to work. Within forty-five days after resuming operations the Homestake Mining Company was again running to its full capacity, and soon after the other companies involved in the strike were likewise in full oper- ation. A large number of the old employes returned to work. In 1910 the mines produced in gold and silver bullion $5,201,304. This decrease was due to the strike. The ore tonnage handled this year amounted to 1,523,903 tons and the number of men employed was 3.331. In 1910 the Westinghouse Electric & Manufacturing Company increased the output from its mines at Custer to a total of 1,856,409 pounds of mine run mica. At this time the company had three mines in operation, were installing new and more modern machinery and employed here 110 men.


In 1910 the School of Mines at Rapid City was doing a work of great value to the mining industries of the state. Its rigid investigations of all mining and metallurgical problems were productive of the most important results. At this time graduates of the school held responsible positions in the mines of the Hills and throughout the West generally and were doing much for the development of the state's mineral interests. The mining course of study, particularly in the line of electrical engineering and metallurgy, was greatly added to and strength- ened and much valuable apparatus was installed and used. At the close of 1910 the alumni of the institution numbered sixty-nine, nine of whom had been given diplomas the previous June. The degree of Engineer of Mines had been con- ferred upon thirteen graduates of the institution. In 1910 the total attendance was sixty-five.


During the year of 1912 the mining industry of the Hills enjoyed a greater degree of prosperity than ever before. Steadily it had been getting upon a more substantial basis each year. The production of gold in 1912 was the largest total since the establishment of the office of state mine inspector. The quality of ore treated showed a large increase, and the average value of the ores milled was greater than ever. Many new works were under way or contemplated, which meant still further development and prosperity. Old plants were enlarged, new mills put in operation, additional ore bodies discovered, and the outlook at this date was exceedingly bright. The mines were managed better than before and fewer accidents under ground than in any former year had resulted. With 4,000 men employed in 1912 there were but three fatal accidents under ground. The number previously had been as high as fourteen and the lowest six.


The Lawrence County mines were exceedingly prosperous. The Homestake Company had the best year in its history. The entire plant maintained the highest standard of efficiency. Of the 2,600 employes there were only two fatalities. The company's big Spearfish hydro-electro plant was finished and put in opera- tion ; this represented an outlay of more than $1,000,000. In October the com-


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pany was using 2,850 electric horse power in its mills and hoists, and the com- bined capacity of the Spearfish and Eaglewood hydro-electric plants was 5,450 horse power. During the year the company erected at Lead a recreation building for the comfort and pleasure of its employes. It likewise purchased 1,000 acres of mining ground lying north of and adjoining its property. This purchase included the Columbus and Hidden Fortune ground, together with the surface mines. The Homestake Company in 1912 produced $6,596,000 in gold bullion, this sum being taken from 1,529,474 tons of ore. During the year the company - paid in dividends $1,310,400.


The Golden Reward Company operated steadily throughout the year and con- structed a roasting plant at Astoria Mine in the Ruby Basin district at a cost of about fifty thousand dollars. Crude oil was used for fuel. This plant had a . capacity of seventy-five tons per day. After the ore was treated it was shipped to the company's cyanide mill at Deadwood. The company experimented much with roasting different ores to improve the extraction of the metal. During the year this company turned out $323,846 from 52,583 tons of ore. One hundred and thirty-three men were employed.


The Mogul Mining Company lost its mill at Pluma by fire in March. After the fire the company shipped its ore to Lundberg, Dorr & Wilson at Terry. During the year the company produced $242,568 from 59,384 tons of ore. About eighty or ninety men were employed.


The Wasp No. 2 Mining Company at Flat Iron operated steadily throughout the year except for about forty days in January and February. They installed a new No. 6 Gate's crusher. This company was the first in the Hills to use a steam shovel for removing surface dirt and waste from the top of the ore body. The ore here cost the extremely low price of $1 a ton to be mined and milled. The mill capacity was 500 tons per day. The gross value of the bullion produced during the year was $308,596 from 158,840 tons of ore. About 100 men were employed and $85,000 was paid in dividends.


The Trojan Mining Company in the Bald Mountain district enlarged its scope of operations this year and made substantial improvement about the mine and mill. Several new places were opened from which ore was taken. The capacity of the mill was enlarged from about one hundred and eighty tons daily to about four hundred tons. They mined during the year 62,061 tons of ore and employed 118 men. Lundberg, Dorr & Wilson, at Terry, operated steadily during the year. It handled much custom ore, largely from the Mogul Mines. From its own mine it produced $77,297 from 21,264 tons of ore.


The Victoria Gold Mining Company made several important improvements and extensions. There were found several large chutes of fair grade ore on this property. The mill operated during only the latter part of the year, but extracted $14,675 from 3,247 tons of ore. The Victoria Extension Company was owned and operated by the same men who controlled the Victoria. It made extensive developinents and opened large bodies of high grade ore which required treatment by the cyanide process.


Richmond Operating Company at Galena was a steady producer in 1912. As it was a close corporation, statistics were not given out. Near there was the Merritt Mine leased by H. C. Osterman, who did considerable development work. The Imperial Company at Deadwood was not in operation.


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The Bismarck Consolidated Mining Company near Wasp No. 2 handled about three hundred tons of ore daily, and the Deadwood-Standard Company under lease handled about three thousand five hundred tons during the running season. The Pluma Company was preparing for active work. The Northern Homestake property was developed below the quartzite level by a shaft sunk 600 feet deep. Cross-cuts were extended out with the expectation of reaching vertical veins. The Minnesota Mining Company was idle part of the year. The Echo Mining Company at Midland did considerable work.


This year the Deadwood Homestake Mining Company was organized to take over the McHugh, Garfield, Montezuma and Whizzer's properties adjoining the Homestake Mine on the east.


Others in Lawrence County which operated more or less during the year were Gilt Edge Consolidated Mining Company, Black Hills Consolidated Min- ing Company, Black Hills Consolidated Mining Company, Evans Consolidated Mining Company, Deadwood Zinc & Lead Company, Custer Peak Mining Com- pany, Heidelberg Group in the Two Bit district; Kriemer Gold Mining & Milling Company, Mineral Hill Mining Company, Anaconda Mining Company, Puritan Mine, Eagle Bird Mine, Republic Mining Company, Ruby Mine and a few others. The ore of the Deadwood Zinc & Lead Company was rebellious in character and contained zinc, lead, gold and silver. The Custer Peak Company produced considerable copper pyrites which carried gold as well as copper. The Kiemer Company produced a highly mineralized porphyry ore. The Mineral Hill Com- pany mined ore carrying both gold and nickel.


The mines of Pennington County were prosperous and quite extensively operated during 1912. At the Golden King property on Silver Creek, new shafts were sunk and a fine vein of pyritic ore was discovered. At the Fair View Mine active development work was in progress. The owners of the Crown Mine did a small business. The same of the Golden West Mine. The Denver Company developed considerable mining property. The Hymalulu Company, near Mystic, secured good results on a mill test of certain ore .. At Silver City much develop- ment work was done. The dredge at Mystic was at work during much of the summer. In the Hill City district the Golden Slipper Mine produced consider- able bullion. The Forest City Company operated most of the year. Their mine was in fine condition and their plant was equal to the requirements. This property was promising at the time. The Hill City Company showed up several large veins and prepared for future operations on a large scale. The Golden Summit Mine yielded several thousand dollars in high grade ore. At Keystone, the Etta Mine yielded several car loads of spodumene ore which commanded a good price on account of the lithia and phosphoric acid. At Rapid City U. S. Gypsum Company produced stucco, building tile, terra cotta, etc., to the value of $31,000. It employed twenty-seven men and had a capacity of thirty-five tons daily. The Dakota Plaster Company at Black Hawk placed on the market con- siderable gypsum products.


The Custer County mines in 1912 were quiet. About the only gold property worked was the Heartwell Mine, where much development was under way. The mica industry was also quiet. Mr. Peterson shipped a considerable quantity of mica this year from his property three miles east of Custer. Fine blocks of mica were taken out and shipped to St. Louis. Several old dumps of the Westing- Vol. III-4


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house Company were sorted and the mica taken from them was also shipped to St. Louis.


In Fall River County operations in the mines were somewhat limited this year. At Hot Springs two large quarries were worked steadily, producing high grade sandstone which had a market value of $80,000. This stone was steadily coming into favor. Practically every large building that was being erected in the western part of the state was either built of this stone or it was used for trimming purposes.


In March, 1915, for the first time in its history, the Homestake Mining Com- pany paid off its employes in paper money. This fact led to much speculation and it was asserted in financial circles that the action was in accordance with the national policy to reserve the gold supply of the United States, which was in danger of being depleted by the enormous demand caused by the great war rag- ing in Europe. It was stated that the banks in all parts of the country were instructed not to pay drafts from Canada, but to hold them for collection, and that there was a growing belief that gold was likely in a short time to be worth a considerable premium. Accordingly banks in South Dakota and other sections of the country increased their gold reserves and paid out in the main only cur- rency and silver.


In July, 1915, the Rapid City Quarries Company, with a capital stock of $500,000, was duly chartered by the secretary of state. The incorporators were Isaac M. Humphrey, Harry M. Jones. John C. Hainez and J. P. Eisentrant of Rapid City ; G. A. Hanson of Hot Springs ; and J. D. Mount of Belle Fourche. They prepared to place a large amount of available building stone on the market.


The copper deposits of South Dakota are numerous and extensive and their development is rapidly taking place. They are found amid the Archaean rocks which show copper deposits from 50 to 500 feet in width. At the Blue Lead there is a large quantity of gossan ore. In sinking through the deposits the miners reached a decomposed portion of the bed. Much surface copper also has been found in the Hills. It consists of malachite, red oxide, native copper and copper glance. The ores at first showed about 35 per cent of pure copper or about seven hundred pounds of metal copper per ton. In the vicinity of Galena there is silver-bearing galena found in considerable quantity. In several places the ore is principally carbonate of iron and silver. Considerable iron has been found in this state and has been worked to some extent. Extensive deposits of siliceous iron ore are in the Archaean rocks on Boxelder Creek and elsewhere. In some places the formation has a thickness of over fifty feet. Several hills are largely composed of it. Such deposits are found on Rapid Creek. Ores of manganese have been found in the Hills; nineteen tons of this metal were shipped from Custer County in 1892. The ores showed as high as 46 per cent of this mineral. Nickel is likewise found in the Hills at several points. It appears in the form of pyrrhotite on Spring Creek and elsewhere.


As early as 1890 the cement deposits at and near Yankton were being worked profitably. The product was a cement-like clay and was the next formation immediately over the chalk-rock deposits and in places was about fifteen feet thick. Thus far it was the only deposit of that character that had been found along the Missouri River. Near the chalk deposits was a potters' clay which likewise proved valuable. At a later date cement deposits were found at other


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places along the Missouri River in South Dakota. As early as 1891 they were found to outcrop in the vicinity of Chamberland and Mitchell, companies were formed and cement has been made to a considerable extent down to the present time.


In the summer of 1890 about three thousand acres of chalk land west of Yankton was sold to English parties for about sixty thousand dollars. Their plan was to commence manufacturing cement on a large scale for commercial purposes. The company prepared to be in active operation by September. Pro- fessor Free was secured to make a geographical survey of the tract. His report was forwarded to the English purchasers. The capital represented by the English concern is said to have been $5,000,000. Another large company began work about the same time in the vicinity of Yankton. The rock and clay had been tested for two years and had been pronounced excellent in every way for the manufacture of cement. It showed a much greater per cent of strength than the product of the famous English cement mines.


Specimens of graphite, but not in large quantities, are found in the Hills. The granite of the Black Hills yields in places a considerable quantity of mer- chantable mica. Occasionally sheets fifteen inches in length are found. Among the building stones are the splendid granites of the Black Hills region and the no less excellent stone called the Sioux Falls granite or jasper found in the eastern part of the state. This gives South Dakota an excellent variety and quality of building stone. Beds of excellent sandstone are likewise found in the eastern and the western portion. Several large mines are on the James River. No limestone is found in the eastern part of the state except the chalk-stone which is found near Scotland, Springfield, Mitchell, Brandon and other towns. The same stone is known in Kansas as magnesian limestone. Its composition is really argillaceous chalk. It is widely exposed at a few points on the Missouri River between Yankton and Chamberlain. In the Black Hills deposits of lime- stone are found in the carboniferous rocks. Porphyry is found in the Black Hills. Different varieties are called trachyte, rhyolite and phonolite. Green porphyry is extensively exposed near Tilford and is as durable as granite and is more easily worked.


Cements, glass, sands, etc., are utilized extensively in this state. From. the rich beds of the Triassic period are obtained inexhaustible supplies of gypsum. Several mills for the manufacture of plaster of paris and stucco have been established in the state. In 1891 the crude gypsum which was ground to land plaster amounted to 1,560 short tons and was valued at $4,680. The quantity used for plaster of paris was 2,055 tons, valued at $4,938. Within the state are also found potters' clay near Sioux City and elsewhere; fire clay in the Black Hills; brick clays at numerous places; and an abundance of stone and gravel in many portions of the state. In 1895 there was found near Hill City a deposit of lithographic stone, which, while not as valuable as the product obtained from Europe, was suitable for many lithographic purposes. About the same time there was found in Custer County a considerable quantity of fuller's earth, the vein being about twenty feet thick.


Coal in one form or another was known to exist in North Dakota and South Dakota from the early settlement. Indeed it was found here by Lewis and Clark on their way up the Missouri River in 1804-5. The quality was poor but it


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would burn and furnish heat and that was what the early settlers wanted. It began to be mined in the districts where it was found at the time of the first settlement and afterwards as wells were sunk many reports were circulated concerning the finding of lignite or coal. It remained for the state or Govern- ment authorities to investigate and report finally to what extent lignite or coal could be found probably in South Dakota. In 1889 there were mined in Dakota Territory 28,907 short tons of coal, of which amount 7,292 tons were from ranchmen's diggings and local mines. The total product was valued at $41,431. The coal field upon investigation was found to cover the region northwest of a line drawn from Turtle Mountains through Burley County to the south line of the Black Hills. Small quantities were found here and there south of this line. The diggings were mostly on the Northern Pacific Railway and on the Missouri River in 1891. There were also a few mines being worked in the Black Hills. Lignite or brown coal of a fair quality was found. It was good for heating and for steam and the beds varied in thickness where found from four inches to twelve feet. In the autumn of 1890 about five hundred men were employed to work in the coal mines near Spearfish. There were two excellent veins, one from seven to nine feet thick and the other from eleven to fourteen feet thick, and about sixty carloads per day were taken from these mines. Small quantities of lignite or coal were found in Yankton and Turner counties about this time. The supply of timber in the Black Hills combined with the supply of coal and lignite, gave that region abundant fuel in early days. There was much pros- pecting for coal throughout both of the Dakotas at this time. Strong indications were found at numerous places, but generally the supplies were quickly exhausted. A shaft that was sunk near Rapid City passed through several valuable forma- tions. Good indications of coal were found at Red Canyon as early as the sum- mer of 1889. North of the Hills near Hay Creek a vein was found. Another was found about the same time in Butte County and still another near the Wyoming line. The most of this product was a hard shiny lignite which burned readily, evolved great heat and left little ash, but it was far from being as good as anthracite. In 1892 it was planned to bring North Dakota lignite down the Missouri River in barges for distribution from Pierre, Chamberlain and other points. By 1894 large quantities of coal were being mined in the Black Hills. One company worked 700 men and shipped five trainloads per day. Coke ovens were at work also. More or less coal has been taken out of the South Dakota mines since that time, but the quantity is too small to settle the question of fuel in this state. In 1904 a vein of lignite of good quality was struck four miles from Mansfield, Brown County. Seven other shafts were sunk there with the hope of obtaining coal in quantities; only a comparatively small amount was secured. One bed of lignite from three to twenty-three feet thick and seven miles long, was reported to have been discovered in this part of the state. A company was organized at Aberdeen to work this product. They succeeded in taking out a considerable quantiity. They had trouble with floods of water, etc., which poured into the shafts.




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