Alleghany City Gold Mining Company, Alleghany City, Sierra County, for the following:

Smith's Flat, the development and subsequent exhaustion of which as a placer deposit led naturally to hydraulic mining first, and next to the conception and prosecution of the idea of following the gravel into the mountain by means of tunnels, lies to the south of Downieville, Sierra County, about eight miles.

The place was named in honor of the discoverer of the diggings, who, following a ravine up the mountain side from Kanaka Creek, and taking a fortune out as he went, reached a bench formation situated halfway from creek to summit, and opened on the southerly edge of one of the richest placer deposits ever worked in California. This was in 1850-51; and a prosperous mining camp attested the value of the ground during the period of its working. No vestige of the camp remains, but the town of Alleghany-with its outlying suburb, Cumberland-has since grown into and maintained its existence in the close vicinity.

The first tunnel which entered the mountain was commenced early in 1853, and was named the "Packard," from Dr. Packard, one of its projectors and owners; it still retains its name, and is yet used to work through, the gravel paying fair wages to work again, and an occasional bit of undisturbed ground being discovered and worked very profitably. The Packard tunnel paid from the start. No assessment, beyond the light contributions necessary to a commencement, were called for, and the owners received large individual fortunes from dividends. This was owing to the fact that no "rim rock" was encountered, but the tunnel was in the gravel of the famous Blue Lead from the time of erecting the first set of timbers. Whether the absence of rim rock may be accepted as conclusive evidence that the Blue Lead debouched from the mountain at this point, winding southerly through Chip's Flat, Minnesota, Moore's Flat, etc., is by no means certain, but no other probable outlet for it has been noticed.

Following the Packard, and stimulated by prospects that were almost certainties, came the "Alleghany," "Pacific," "Knickerbocker," "Bay State," "New York," "Red Star," "Excelsior," "Masonic," "Jenny Lind," "Hooking Bull," "Buckeye," "Blue Tunnel," "Clipper," and other companies-the famous "Live Yankee" penetrating the same mountain, but from the westerly instead of easterly side. The histories of these companies were uniformly the same; the tunnels penetrated the rim rock, the gravel on the front of the lead was worked at great profit, and when the main Blue Lead was reached, it was necessary to sink an incline and effect drainage by means of pumping. This method of working was expensive, difficult, and necessarily far from thorough or exhaustive; yet the yield of gold was enormous, and the mines were considered very valuable by their owners.

From the claims of the "Fremont," "Knickerbocker," and "Masonic," were taken respectively the sums of $40,000, $90,000, and $60,000 in the space of a month, and it was not difficult for any of the claims to procure credit for almost unlimited supplies and money. That every owner connected with either of the tunnels was not greatly enriched, was owing more to the fact that they all became entangled in expensive litigation regarding boundaries, and that much of what might have been profit went to pay lawyers and witnesses, than to any other cause. It is one of the unwritten jokes of the vicinity that, on the occasion of one of these trials of title at Downieville, an honest miner gave testimony descriptive of the situation and course of the Blue Lead. He

traced it as far north as that town, and when the attorney asked him, "Where does it go from here?" he replied, "I think it comes right into the court-house here and don't go no further!"

Not one of these companies has worked out the ground reached by their tunnels. Various causes combined to induce cessations of work; mining excitements in distant localities attracted owners away; tunnels became first dilapidated, then ruined, and in 1858-59 the end of exciting rush and competition had been reached, and many of the claims were lying untouched. In several of them, however, work was still done by men who had succeeded to proprietorship, and it was proved that even ground which had once been worked would pay in these days of cheaper supplies and lower wages. In October, 1870, the owners of the "New York" claim discovered a very rich deposit of gravel, which had been passed under by the original tunnel when on its course to the channel. The weekly yield from this deposit where it was first opened was 104 ounces ($1,846) from the gravel got out by "four men at the pick." Its extent is not yet fully determined, but enough has been prospected to denote that there is a very large body of it. In 1868 several of the claims, with portions of others, were purchased, and are now being developed and worked by an incorporated company known as the "Alleghany Consolidated Gold Mining Company." A tunnel was projected that should be low enough to afford sure drainage for all the ground it was designed to work, and, indeed, low enough to drain the Blue Lead at any point in the mountain. It was commenced near the starting-point of the Blue Tunnel, the course of which it followed for 900 feet, at which point it deviated to the east sufficiently to leave 20 feet between them. In December, 1870, this tunnel was near 2,000 feet into the mountain, and was close in the vicinity of a large body of unworked gravel of the Blue Lead. It is a key to the entire mountain, and there are strong probabilities that it will soon develop into a rich paying claim.

CHAPTER II.

NEVADA.

THE COMSTOCK MINES.

The aggregate yield of the mines on the Comstock lode was. considerably greater for the year 1870 than for 1869, closely approximating, indeed, the production of 1868; and, during the latter part of the year, the amount disbursed in dividends was notably large. This is partly due to the fact that a few companies extracted large quantities of ores, the costs upon which were kept low by the large scale of operations. Thus the Chollar-Potosi produced the enormous sum of $2,627,938, of which $658,000 was paid out in dividends, and the Hale and Norcross, producing $1,708,281, paid out $512,000 in dividends. The advantages of the Virginia and Truckee Railroad have been very evident in the cheapening of freights and timber. The explorations of the Bullion, Imperial, and Ophir have been barren of results up to the end of the year; on the other hand, the deep workings of the Gould and Curry, Yellow Jacket, and Crown Point, have furnished much reason for encouragement as to the future. Of especial significance is the discovery in the latter mine, at the close of the year, and at the deepest level, I believe, ever reached upon the Comstock lode, of a new, large, and valuable body of ore, which is apparently disconnected with any other hitherto worked. The San Francisco Weekly Stock Circular quotes from a letter dated January 15, concerning this discovery, as follows: The winze in the soft ledge at cross-cut No. 1, on the 1,100 level, is down on the line of the incline, following the west clay, 44 feet. The face of it is in clear bright-looking quartz, showing spots here and there. The entire face on the raise of the east body, from cross-cut No. 1, 1,100 level, is in ore that will mill $50 per ton. The character of the ore is black sulphurets and chlorides mixed through it. The incline raise is four feet high, and it is safe to calculate that the ore extends two feet beyond, making an ore body six feet in width. The mine has never been prospected in this section from the 1,100 level up to the 300, and while this ore body may and doubtless will vary in size and quality, there is no doubt but that it will prove an extensive body of ore. The improvement in the quality and extent of the raise occurred at a point 30 feet up from track floor.

I learn that subsequent developments still further enhanced the importance and extent of this discovery, and I regard it as a striking demonstration of the continuance of ore-bearing character on this vein in depth. Especial significance is attached to the fact that the level in which this body has been struck is but three or four hundred feet above that of the proposed Sutro tunnel-the 1,100 feet level of the Crown Point being 1,563 feet below the croppings of the Gould & Curry. (According to the Virginia Enterprise, the Sutro tunnel level would coincide with the 1,300 foot level of the Crown Point; but this is probably erroneous, since Mr. Carlyle's survey makes the tunnel intersect the Savage claim 1,922 feet below the floor of the Savage works, or about 1,960 feet below the croppings of the Gould & Curry. The rise in drifting 6,900 feet, from Savage through Crown Point, would not be more than 6 feet.) Since much doubt has been thrown upon the enterprise of Mr. Sutro, on account of the alleged barrenness of the Comstock in depth, it is fortunate that this development has occurred in time to encourage the prosecution of the much-needed deep tunnel.

This tunnel is now in process of construction, and has been carried in about 1,900 feet, through various alternatious of rock, and several veins, none of which, so far as I am aware, have been prospected. A good deal of water has been met with, which may be considered, so far as it goes, a favorable indication of the existence of fissure-veins in the neighborhood, though, at the inconsiderable depth thus far attained, the sig nificance of its occurrence is not important. My opinion as to the necessity and value of this tunnel remains unchanged, except so far as it has been strengthened by recent developments upon the Comstock. Asa means of exploring that vein to a depth heretofore unattained in metalmining, it will be indispensable. Some of the shafts in the Comstock are now approaching the level of the tunnel-survey; but the expense and difficulty of going deeper will be well nigh insurmountable, without an adit as a new basis of operations. The effect of a tunnel, adequate for drainage, transportation, and ventilation, is to create a new, artificial surface, with the added advantage of a hydraulic power, measured by the quantity of water and the height of its fall above the tunnel level. A few months ago, suggestions of this nature were met with the reply that the Comstock shafts were not finding ore in depth, and that nobody was likely to desire to go much deeper in barren ground. In successive reports I have uniformly regarded this barren ground as a zone, beyond which ore bodies would again be found; and this opinion is now so far confirmed that I presume no one will now discourage further explorations in depth, up to the limits of mechanical practicability.

As it is understood that Congress will order an examination of this subject by a commission of military and mining engineers, the further discussion of it upon the present occasion is unnecessary. The report of that commission would be rendered, probably, in the winter of 1871. Meanwhile, I trust that the tunnel may be pushed forward. This is one of the few localities in the country where such a work is really required.

The prospects of the Comstock mines are certainly better than they were a year ago. Prices in all departments have never been so reasonable as now; and the general economy of management has never been better. The reserves in the Chollar, Hale & Norcross, Savage, and Yellow Jacket are understood to be still large, and those of the two former are in their lower chambers. The Washoe stocks have shown, in a general advance in price, the effect of this encouraged aspect of affairs.

Among the casualties of the year were two, which claim particular attention, as indicating special sources of danger in the mines upon this lode. The first was a cave between the 800 and 900 foot levels of the Yellow Jacket mine, caused by a flake of ore and vein matter falling from the hanging wall. Three sets of timbers in length, two in height, and two in width, were crushed, and four miners were buried under the mass. The following extract from a local paper vividly describes the vain attempt to rescue the only victim who was not immediately killed: As soon as the cave occurred in the Yellow Jacket mine, several brave men from the floors below hurried up the ladders to the rescue, knowing full well that some of their comrades must be there, and in need of immediate help. The danger was great, for the timbers were still cracking and pieces of ore falling; yet they ventured close to the ruins, and the light of their candles revealed one man jammed among the debris, and still alive. This man was Hanson. They could get near enough to touch him, and he was able to freely converse with them. A heavy timber across his hips and others about his legs held him fast. Only one or two men could work in the narrow space at a time, and very cautiously, by reason of danger from the still moving mass. They worked with saw and axe, and for over two hours the poor fellow talked with them as they worked. He called for water, which they gave him three or four times. He was

in great pain, but cool and sensible to the last. One of his comrades bade him keep up
good spirits, and they would have him out shortly. "Ah, boys," said he, "good spirits
is getting played out." Then, at times, in his agony, he would beg them to end his
sufferings by splitting his head with the axe.
longer, and on examination he was found to be dead.
At last, his voice could be heard no

The system of timbering employed on the Comstock lode is very expensive; and it is hardly practicable to renew the timbers, so large is the amount of material required. The extent of the open spaces left by stoping, the very steep dip of the lode, and especially of the ore-bodies in it which are removed, and the impracticability in most cases of filling up with "deads," or leaving sufficient pillars for support, necessitates a vast complex of heavy morticed timbering. At the same time, the carelessness of early workings has left large quantities of low-grade ore in the upper levels, so that the companies for several years have extracted ore from old workings. This unfortunate combination of circumstances makes it necessary to keep open portions of the mines which might otherwise be abandoned. The great expense of mining in this district is due, next to the cost of prospecting for ore-bodies, to the necessity of extensive timbering; and the same cause has led to several accidents, the principal of which was the disastrous fire in the Kentuck and Crown Point, mentioned in a former report.

Another accident, occurring at the Hale and Norcross mine on the 24th of August, was more directly the result, in my opinion, of repre hensible carelessness. The Gold Hill News describes it as follows:

Thomas Stanton and David Ryan, together with John Cochran and Matt. Sullivan, were engaged in sinking the shaft deeper. An empty car was being lowered on the cage; when near the top of the shaft the heavy bolt connecting the brake-lever with the friction-band around the brake-wheel broke square off. The consequence was that cage and car, weighing nearly a ton, immediately descended with frightful velocity to the bottom of the shaft, which is 1,200 feet deep, the heavy wire cable following it just as fast as the swiftly revolving reel would allow. Indeed, the engineers ran out of the way, expecting every instant to see the reel and brake-wheel fly into fragments. They say a perfect stream of sparks flew from the friction-wheel and brake-strap nearly to the ceiling. Fortunately, however, the flying end of the cable, as it left the reel and dashed down the shaft, did very little damage. The cage and car, in their descent, passed through two strong platforms of heavy timbers a foot thick; one of them about 45 feet from the bottom, and the other only 10 or 12 feet above the heads of the men, passing through both as though shot from a cannon. standing erect, or nearly so; therefore they were both crushed down to instant death, Stanton and Ryan were the bodies of both being considerably mutilated and broken. Cochran was bent over, working, and was knocked prostrate, with his legs under the cage, but the other unfortunates receiving the full force of the falling weight saved him, and he escaped with comparatively light injuries. We were present at noon to-day while Drs. Webber and Hall were making a surgical examination of him at his cabin. They found the head of the right thigh bone fractured at the hip joint. A pick, or something of the sort, had also evidently been driven several inches into the fleshy part of the thigh at the under side, but this wound was not considered serious. Sullivan, the fourth man, was working beneath another compartment of the shaft, a few feet distant; therefore was lucky enough to escape entirely unhurt. The cable fell, coiled among the debris of the broken platforms, upon the car and cage; therefore it was quite a job to extricate the dead bodies. The bolt broken was not defective. It was two inches in diameter and showed no flaw, but simply a square break of good solid iron. This accident of course developes the now evident fact that a two-inch iron bolt was not strong enough, yet no one could hardly be blamed for mismanagement; it was a purely accidental circumstance, and one of those unforeseen calamities continually occurring in our mines. Two strong brakes instead of one might be used, and thus the recurrence of a similar accident prevented in the future. Engineering invention certainly can contrive some sort of safeguard to apply in such emergencies. The cage was of the safety pattern, but owing to the tension kept upon the cable the safety clutches were not free to act, as they would have infallibly and effectually done in case of the cable breaking. We append this last remark by reason of having heard several persons state this was not a safety cage. It was, and a very good one at that-so strong that it was but little injured by its fall.

It seems to me that no "engineering invention" is required to prevent