INTRODUCTION

General William Palmer, a retired Civil War general, dreamed of building a railroad south from Denver to Mexico City. His experience on the plains and in the mountains laying the Union Pacific tracks westward to complete the nation’s first transcontinental railroad convinced him of the potential of the Rocky Mountain West. He was enthusiastic about the opportunities presented by its vast open lands, mild climate, and grasslands with their agricultural possibilities.

The West was separated from the rest of the country by distance and semiarid regions, but Palmer believed it could develop a self-sufficient, independent economy by raising its own crops and livestock, mining its own coal and minerals, and developing productive industries.

Palmer believed the Rocky Mountain West needed a regional railroad system to pull it together and unite its integral parts. He envisioned a railroad that ran from north to south, with connecting lines to settlements in valleys and up the canyons to mining camps. To achieve this, in 1870, Palmer organized the Denver & Rio Grande Railroad. This would be a narrow-gauge railroad whose smaller engines could maneuver more easily around the sharp curves and handle the steep mountain grades. He planned the first section and began laying tracks south from Denver to Santa Fe. By 1871, the Denver & Rio Grande Railroad had reached the base of Pike’s Peak, where Palmer planned the city of Colorado Springs.

Work stopped for four years while Palmer raised money to lay tracks south to Trinidad and Raton Pass. This delay cost the D&RG its monopoly on Southern Colorado. The Atchison, Topeka, and Santa Fe Railroad, which was laying its tracks west from Kansas, reached Raton Pass one day ahead of Palmer. A contract was made that gave the rival railroad the right of way over the pass into New Mexico. Palmer could no longer continue south, so he turned the railroad toward the west.

By 1878, the D&RG tracks were snaking their way across the San Luis Valley toward the silver camps of the San Juan Mountains. The towns of Colorado Springs, Manitou Springs, Alamosa, and Antonito had been founded by Palmer, and his land companies were promoting them. The railroad boosted industrial and commercial growth and provided a means of getting agricultural products to market. Palmer placed advertisements in the United States and Great Britain promoting the agricultural and the commercial opportunities presented by ownership of parcels of land near the railroad. These new towns were ideal locations for supply centers, mills, and smelters, and the railroad would get agricultural, industrial, and commercial products to market.

The fabulously rich discoveries of silver and gold in the San Juan Mountains had not been developed because their remote locations made transportation very expensive. All supplies, food, and equipment had to be hauled in by pack trains, which also carried the rich ore to smelters for processing. The eastern newspapers described the San Juan Mountains as “the wealthiest district in the wide west,” but this did not bring wealthy investors. Production and transportation costs were higher than the profits. It was obvious that reliable transportation was vital to the development of the mines in the San Juan Mountains.

The arrival of the Denver & Rio Grande Railroad lowered the costs of mining and attracted investors. This money went into developing rich strikes and supported more mineral discoveries. Silver and gold ore from the mines in the mountains were shipped by rail to the smelters at Denver and Pueblo. The value of the precious metals remained the same, but every factor of their production went down. The cost of machinery was less, and the price of food, clothing, and fuel dropped, while mills and smelters operated more cheaply.

Historian Herbert Brayer wrote, “It was essentially the railroad and in an equal measure the land companies it founded that gave substance to the development of south and west Colorado.” The Denver & Rio Grande was responsible for the development and expansion of the mining industry and the tremendous growth and development of Southern Colorado. Alamosa, Colorado Springs, Antonito, and Durango were founded by the Denver & Rio Grande Railroad. Commerce generated by the railroad supported business and economic growth, and the population of this part of the state increased dramatically.

The Silver Decade, a period of spectacular expansion from the 1880s through 1892, was an exciting time of immense wealth in Colorado. Ramshackle mining camps grew into bustling cities, and poor prospectors became overnight millionaires. Luxurious hotels and modest boardinghouses were built in towns that flourished in the railroad’s shadow. Many of these historic buildings were lost to neglect and deterioration, consumed by fires or demolished in the name of progress. A few were rescued by local citizens, who recognized the importance of preserving these historic landmarks. They were restored with historic grants, donations, community fundraisers, and innovative programs. Today, these hotels are listed in the National Register of Historic Places, included in a National Historic District, are Landmark Hotels, or have been designated a local historical landmark. They are full of memories of the past and a few spirits, too. Ghosts of yesterday still roam the halls and whisper on the stairs. Their footsteps are heard in the night, and their shadows may drift through your dreams.