Durango semi-weekly herald., 1902-12-11
HUGE SOUTHWESTERN PRO-
JECT UNDER HEADWAY

That this section of the state is
receiving attention at the hands of
the press, and while the reports pub
hshed concerning proposed enterpris-
es are on a mammoth scale and tend
to make one skeptical at times as to
the truth, at the same time there is
evidently much back of what appears
in the Denver papers, and for this
reason The Herald has republished
the articles in order to show that this
section is on the map and that our
natural resources are coming to the
front. Tl Denver Post arriving last
night co tains additional informa
tion concerning the movements of the
new $50,0J0,000 combine which tends
to show that business is meant. as
follows:
Heavy contracts have been let by
representatives. of the Southwestern
Fuel company, the Independent op-
ponent of the smelter trust. Mining
and electrical machinery has been
ordered from the Westinghouse com
pany of Pittsburg, and contracts made
with eastern railroads and the Den
yer & Rio Grande railway to haul a
first consignment of 100000 pounds
as soon as it is ready for delivery at
Pittsburg. This machinery will BE-
shipped to the San Juan district,
where the first refining plant and
electric power plant will be built.
Since the announcement in the
Post of the plans of the Pittsburg,
New York. Chicago and San Francis
co capitalists to develop the south
western part of Colorado there have
been settled the final details looking
to the building Of the Independent
plants. To take up several options
and in expenditures in the Bear
Creek district $4,000 has been paid
out.
The machinery called for in the
contracts with the Westinghouse com
pany assures a complete plant and
tram for the subsidiary concern, the
Bear Creek Mining company, which
will be embraced in the merger of in
terests to be known as the Southwes-
ter Fuel company. The plant will be
located near the group of mines ac-
quired by the company, eighteen
miles from Silverton, and about an
equal distance from Lake City.
Plans Are Enormous.
Charles II. Gage is now on the
ground with a party of Pennsylvan-
ians, stockholders in the Southwest
ern Fuel company. which, Mr. Gage
says will be Incorporated within the
next few weeks with capitalization
of S50,000,0O0 The completion of the
plans of the big corporation will
take, necessarily, some time, but two
large plants will be in operation by
January, 1904, it is said, work will be-
gin on the other three projected, in
Guiding the refining works at Denver,
as soon as the San Juan and South
western Colorado plants are built.
Large sections Of coal and precious
mineral land have been purchased
outright. Mr. Gage makes no secret
that the company will bid for ore
treatment in opposition to the smell
ter trust, and claims that the process
the new plants will use will enable
low grade properties to make more on
their ore than thought possible at
present.
The steel works are to be located
at Pennington, ~ NJ, and plans are
now being drawn in Pittsburg mod
eled after the best features. in the
great works there. The men whose
names are withheld are said to be
large operators in the steel works in
Pittsburg, forced by the United
States Steel corporation to seek new
fields whore Independent plants, as in
the case of the Colorado Fuel & Iron
company, can hold their own against
the monopoly controlling the eastern
mills. Because Of the opportunities
smelling and refining of ores will
form the greater part OF the business
Mr.. Cages statement that there is
more money behind the Southwestern
Fuel company than there is behind
the American Smelling and Refining
company, the trust which is capital
lied at slOO,OO0,O00.
Lyman j.. Gage Interested.
Mr.. Gage is a nephew of Lyman j.
Gage, formerly secretary of the treas
ury, and large banker of Chicago
The secretary had young Gage edu-
Gated abroad and he is said to be one
of the best chemists and metallurgists
in the country. His education in this
line has been thorough. 1t is said,
and has not been denied, that with
T. p. Shonts, Paul Morton and Lyman
r. Gage, there are other millionaires
backing the company. exclusive of
the Pittsburg men, who are able to
resist any fight that may be waged
by any other interest.
1t developed today that C. T.. Nc
Connell, formerly mayor of Durango,
and one of the originators of the
State League of Municipalities. is in
terested in the company and has accom-
plished much work in the quiet buy
ling of the immense tracts of land
sr@he company will mine in the San
Juan and in the southwestern coun-
ties. Through his efforts the sur
veys and rights have been secured of
the proposed railway the Southwes-
'ern Fuel company will build to Farm
ilgton, y. NJ, and thence west. From
Creede the present terminus of a
branch of the Denver & Rio Grande