The Idaho Springs siftings-news., 1908-01-25
Newhouse and Profits

Newhouse and Profits
Quite recently there appeared in a
Denver newspaper an article which con-
veyed the impression. that the New
house tunnel had suspended work. or
had been shut down completely because
of the lack of patronage from the mine
owners whose properties had been bene-
fitted by drainage of their mines. The
article was entirely inopportune and
wholly misleading for the reason that
work was suspended on the heading of
the Newhouse tunnel the middle of last
February, or nearly year ago.
In an interview Manager George E.
Collins is quoted as saying that numer-
GUS properties have been drained which
have not paid cent for this important
benefit, and that it is not the purpose
of the tunnel company to continue the
tunnel under the Quartz hill district and
drain mines which will be directly ben
efitted until some arrangement has
been made whereby the tunnel com
pany shall receive substantial recog-
milton. Further, Mr.. Collins said:
The Newhouse tunnel has been
project of such size that it should pay
something besides ordinary profits.
The original plans will take it consid-
cradle distance further than the tunnel
reaches at present but it will not be
done until some definite understanding
is reached regarding the portion of ex-
penses to be borne by the proper ties
which will receive the direct benefits. y
The declaration of Manager Collins is
not new. 1t has been the policy of the
owners of the Newhouse tunnel for a
number of years back, ever since they
realized the great mistake they had
made in not acquiring the property
lying along the line Of the tunnel before
the tunnel was driven. The value of
these properties enhanced with each
foot the tunnel was extended, and this
applies to the rich properties lying just
ahead of the breast of the tunnel today.
While decade ago the whole of Quartz
Hill might have been purchased with a
half million in cash. the same proper
where less than ten million collars.
Only recently report was seat out
from Central City to the effect tnat a
large group of properties on Quartz
Hill was to be purchased by the tunnel
company for a consideration of Sc, 900,
600 The report was denied by Mana
ger Collins who admitted however,
that himself and W. H. Wiley. of this
city, were making an examination Of a
group of Quartz bill mines for eastern
investors.
While the owners of the Newh alse
tunnel may complain of the lack of
patronage from some of the mines
which have been d.ained by the tunnel,
the tunnel company cannot blame the
mine owners for the lack of foresight
on the part of the pr ojectors of the big
enterprise.
The Newhouse tunnel was the pioneer
crosscut tunnel in nhis county, and it
was ridiculed for several years as a
foolish undertaking. 1t was claimed
that values did not extend to the depth
at which the veins would be cut by the
tunnel-even if the veins were there; a
theory which was upheld by some OF
the leading mining writers at the time,
but which has since been most emphat-
ically disproved.
Samuel hewhouse located the big
tunnel bearing his name on February
13, 1891, and nothing further than sur
he of
1893, since which time the tunnel has