Gilpin observer., 1902-11-27
GIGANTIC NEW ENTERPRISES
PLANNED FOR THE SOUTHWEST

plant will receive all the high.grade
gold ores from the territories. tanned
by the new railroad, as well as millions
of tons of rich ores from sections trib-
utary to older lines.
While the new railroad that Otto
Mears. contemplates building this sum
mer from Eureka to Lake City has not
been as yet formally included in the
project, it will afford an easy route
for the transportation of northern
Hinsdale county ores to the Durango
and Silverton Gage plants, which will
have facilities for saving all their
gold, silver and tellirium values. The
Gould interests are known to be back
ing this new line. and 1t will form a
valuable connecting link in the Dem
yer & Rio Grande system.
The development of the gold-bearing
resources of southeastern San Juan
county has already been started
I,5OO-horse power water plant in the
Rio Grande river will be built this
winter, near the mouth of Bear creek.
by the Bear Creek Mining and Reduc-
tion Company. An electric power plant
Will be constructed here totransfer cur
rent six miles up the creek to the Good
Hope and other mines that have been
under development during the last
year. These mines have furnished the
ores for the practical test of the Gage
chemical process. Although they
yielded little when treated by the old
processes, they return values as high
as $32,OOO ton when treated by the
Gage process. This plant will be in
the center of an area twenty miles
long and eight miles wide,. which is
rich in tellurium and gold deposits.
The company will make its head
quarters in Denver, and offices are to
be opened very soon in an uptown
building. The preliminary work has
been transacted in temporary quarters
in the Continental building.
Before starting Friday night for Sill
verton and Durango Mr.. Gage said:
All our articles OF Incorporation will
be filed very soon. We have had to
work quietly, for business reasons. but
the final details OF the project are be-
ing finished in Pittsburg now. am
not at liberty to state the names of all
the eastern financiers who are inter-
ested. 1t is our intention to not only
build the railroads mentioned, but. the
ore reduction plants and the steel
plant. We will have in operation all
the latest improved methods of treat
ing ores. including the Gage electro
magnetic patents.
"l'he erection of the steel plant will
be under the personal direction Of
George c. Carson, inventor of the Car
son process, and James F. Cullen, who
was superintendent of ahe. Jones &
Laughlin structural steel plant at
Pittsburg for thirteen years. The min
ing properties that come into the
Southwestern Fuel and Iron Company
through the consolidation are the for
mer holdings of the Bear Creek Min
ing and Reduction Company, the Good
Hope, the Giant, the Wonder and the
Jim Cullen group of Mines the latter
at the head of Elk creek 1t will take
some time, of course, for the. 4delting
plants, the power plants and the other
work outlined in the plants, to be
started. but we have guaranteed the
railroads $4,000 tons of freight next
year. We have ordered all our heavy
electrical machinery from the Westing-
house company at Pittsburg, and it
will not begin to arrive for thirty or
sixty days.
''The men behind the Southwestern
Fuel and Iron Company have carefully
considered what they are doing and
are satisfied they are taking no risks
in making an investment of $50,000,00O
in the state. AS l said, we have as
much money behind us as the Ameri-
can Smelling and Refining Company,
and we can handle all the ores sent us
not only from the San Juan district,
but from the state at large. 1 am not
exaggerating when say we offer sal
walton to the mining men of the state.
Indirectly, the Denver & Rio
Grande and other railroads are inter-
ested in the Southwestern Fuel & Iron
Company, but to what extent and
through whom am not authorized to
state"