Palmer built his dream home, which he called Glen Eyrie (Eagle's Nest) near Colorado Springs in the northwest foothills north of the Garden of the Gods rock formations (now owned by the Navigators.) Palmer's dear friend and partner Dr. William Bell built his home, Briarhurst, at the opposite end of Garden of the Gods. Palmer built a large carriage house, where the family lived for a time while Palmer and Queen built a 22-room frame house. This house was remodeled in 1881 to include a tower and additional rooms.
Queen Palmer, at age twenty, opened the first public school in Colorado Springs in November, 1871. The Palmers had three daughters, Elsie, Dorothy, and Marjory.
In 1880, Mrs. Palmer suffered a mild heart attack and was advised to move to a lower altitude. She and the girls moved to the East Coast and then to England where General Palmer visited them as often as he could. Queen died on December 28, 1894, at the age of 44. In sorrow, General Palmer went to England to return Mrs. Palmer's remains and the girls to Colorado Springs.
Palmer set upon making his railroad extend from Denver to Mexico, but failed in his bid. His north-south narrow gauge railroad was subjected to conflicting right of way issues from the Atchison, Topeka and Santa Fe Railway, and the U.S. Supreme Court ruled against his interests in 1880. In 1901, Palmer sold the Rio Grande Western Railroad, which extended from Grand Junction, Colorado, to Salt Lake City, Utah, and retired.
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