Eben Smith - Mining Operations

Mining Operations

Smith continued mining in Gilpin and Teller counties. Chaffee and Smith organized a group investors in 1867, purchased a mine and formed the Georgetown Silver Smelting Company. Smith invested in a large number of mines, building his wealth. Eben and Emily Smith's first child, Kate May, was born in 1867. But the child died at age thirteen months.

In 1876, he moved from Denver to Boulder, Colorado. Eben and Emily's second child, Cora Isabel, was born in 1870, followed by son Frank in 1871. (Smith's son, Lemuel, joined his father out West in 1880.)

Chaffee purchased the Caribou Mine in 1876. Once the most famous mine in Colorado, it had been sold to Dutch investors in 1873. But with the mine apparently played out and the Dutch unable to invest enough capital to discover new veins in the mine, Chaffee purchased the property with David Moffat and others. Smith was installed as manager and superintendent of the mine, positions he held until April 23, 1879. On June 25, 1880, the Caribou was consolidated with several other mines. Chaffee, Smith and others formed the Caribou Consolidated Mining Company; Smith was the companies superintendent and general manager until 1881. The Caribou claim quickly began producing large quantities of silver again, and Smith made another fortune.

In 1878, Smith used his mining profits to partner with Horace Tabor, Chaffee and Moffat in the buying and developing the Little Pittsburg Mine in Leadville. The Little Pittsburg produced vast quantities of silver and started the silver boom in Leadville. Smith was placed in charge of the mine. Additional stock in the mine was sold. But the ore suddenly petered out, and the stock price collapsed. Investors later learned that Chaffee, Moffat and the other initial owners had sold out early, reaping large profits. Accusations that the initial investors had received insider information about the mine's status were never proved.

Despite Moffat's warnings, Smith did not sell his stock in the Little Pittsburg Mine. He lost virtually his entire fortune.

In 1882, Moffat and Chaffee secured a controlling interest in the Tam O'Shanter group of mines in Pitkin County, which Smith operated and managed for a year. The group of mines did not turn out favorably, so Smith then went to Red Cliff, Colorado, and mined there for a few months. He returned to Leadville and took charge of Moffat's and Chaffee's interests in the Maid of Erin, Henrietta and Louisville mines. He operated those mines for 10 years, rebuilding his fortune and eventually purchasing a financial interest in all of them.

1891 saw the first of hundreds of gold and silver strikes in the Cripple Creek region of Colorado. Smith quickly became invested in a number of mining operations there, including the Anaconda Mine and the Victor Gold Mining Company (later, after numerous mine consolidations, reincorporated as the Battle Mountain Consolidated Gold Mining Company). In 1892, the owners of the Portland Mine bought out Smith's interest in Battle Mountain as part of their successful attempt to consolidate gold mining on Battle Mountain. Smith used the money to buy an interest later that year in the Ibex Mining Company, the owner of the famous Little Jonny Mine in Leadville. (Among the owners of Ibex Mining was James Joseph Brown, husband of 'Unsinkable' Molly Brown.)

In 1893, Smith moved back to Denver.