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Flagstaff and Last Chance Smelters, Sandy

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Flagstaff Smelter, Little Cottonwood (1872-1874)

(The original Flagstaff Smelter was located at mouth of Little Cottonwood Canyon, on the north side of Little Cottonwood Creek.)

(The Flagstaff mine in Little Cottonwood Canyon, and the Last Chance mine in Bingham Canyon, were under common ownership of the same English directors, investors and superintendent right from each company's beginning in November 1871 and April 1872, respectively. - London Pall Mall Gazette, November 30, 1871; April 27, 1872)

(Read more about the Flagstaff mine in Little Cottonwood Canyon, Utah)

"On the north side of Little Cottonwood Canyon, Buel and Bateman built a plant in 1870 for treating ore from the Flagstaff mine. The product of the Flagstaff furnaces during 1872 was 3,000 tons of metal valued at $750,000. In 1873 the Flagstaff Smelter consisted of three stacks. The Flagstaff was owned by an English company, who shut it down soon after and shipped ore to Sandy." (Early History of Lead Smelting in the West, AX-I-DENT-AX, Volume 14, Number 5, May 1929, page 8)

"Flagstaff Silver Mining Company, (Limited,) -- Incorporated in London; capital $300,000. Have smelting works situated at the mouth of Little Cottonwood Canyon, built by Buel & Bateman in 1870; working Flagstaff ore. Three furnaces; two running; the third expected to start soon. The latter is a hot-blast furnace, and of equal capacity with the other two. When the third furnace is running the yield of bullion will be twenty tons daily for the three furnaces. Superintendent N. M. Maxwell, assisted by J. B. Stanford." (Salt Lake Weekly Tribune, January 18, 1873)

"The Flagstaff company also erected three stacks in this vicinity [of the Jones smelter]; several unsuccessful attempts were made to leach ores on a small scale." (D. B. Huntley, Mining Industries of Utah, Appendix I, Reports of the Tenth Census, 1880, page 422 to 427)

"Colonel Buell's reduction works, at the mouth of Little Cottonwood Canyon, proved to be the next efficient furnaces to operate. Construction of the smelter started November 1, 1870, and it was producing bullion on January 14, 1871. These works had two hexagon furnaces of the improved Piltz pattern. They became the property of the Flagstaff Silver Mining Co., Ltd., which operated them for several years." (Murphy, J. R., The mineral, resources of the Territory of Utah, p. 6, Salt Lake City, 1872.) (USGS Professional Paper 201, Geology And Ore Deposits Of The Cottonwood-American Fork Area, Utah, 1943, page 73)

"Flagstaff Smelter. — This smelter is located at Sandy, and was built about 1873 by the Last Chance Company, of West Mountain district. It was leased to the Flagstaff Company a few years later, and has been subleased occasionally by them. It has been idle since September, 1878, and is consequently somewhat dilapidated. Some of the machinery has been moved to Colorado. There are four stacks, resting on brick pillars 2 feet square. The water-jacket is in four sections, one for each side and end. The sections are from 3 to 5 inches thick and 4 feet 9 inches high. The cross-section of the furnace at the tuyeres is 4 feet by 3 feet 3 inches, and at the feed-floor 4 by 4 feet. The height of the furnace above the tuyeres is 9-1/2 feet. The flue-dust chambers are 24 by 15 by 10 feet, and the 4-foot stack is 80 feet high. A Bruckner cylinder was used to roast the matte." (D. B. Huntley, Mining Industries of Utah, Appendix I, Reports of the Tenth Census, 1880, page 435)

Timeline

(Research suggests that the Buel & Bateman smelter became the Flagstaff smelter in late 1871 or early 1872.)

(English investors took control of the Flagstaff Silver Mining Company (Limited) on November 23, 1871, the date that the formal acquisition agreement was signed between the original owners of the mine, and the U. S. agent of the English investment syndicate. The purchase price was £300,000 (roughly $1.5 million at the time), and the purchase included all net profits generated by the mine retroactively since September 1, 1871.)

January 12, 1872
N. M. Maxwell and J. A. H. Patrick, both of Omaha, were staying at the Townsend House hotel in Salt Lake City. (Deseret News, January 12, 1872)

(Maxwell was the designated superintendent of both the Flagstaff and Last Chance mines. Patrick was, after May 1874, the designated general manager of both companies.)

February 16, 1872
The Ely Record of February 29, 1872, reported that on February 16th Buel had sold his Flagstaff mine and furnaces located in Little Cottonwood for $1.5 million. While the proceeds would have been split with his partners, Buel earned a tremendous return from this transaction that would see him through for a number of years. (Ely Record, February 29, 1872; quoted in otherhand.org/home-page/archaeology/dave-buels-east-fork-flume-san-gabriel-canyon/the-history-of-david-buels-east-fork-flume-san-gabriel-canyon)

(The Ely Record of this period is not available in any online newspaper source. The above citation was most likely copied by a researcher during a review of a microfilmed copy.)

April 30, 1872
The Flagstaff - "The following telegram was received on Saturday the 27th inst., from the Flagstaff Silver Mining Company of Utah (Limited): 'Start furnaces steadily to-morrow. Patent issued. Lode where intersected by tunnel, has increased in width to 5 feet, all good ore.'" (London Daily Telegraph, April 30, 1872)

May 7, 1872
"The directors of the Flagstaff Silver Mining Company of Utah (Limited) state that they have entered into an engagement with Mr. N. M. Maxwell to proceed to Utah and take charge of the mines and works as resident manager. The shareholders are aware that Mr. Maxwell is the gentleman who was selected by the directors to examine the mines, and that it was on his full and satisfactory report that the property was purchased." (London Standard, May 7, 1872)

July 12, 1872
Telegram received "this day" in London, "One hundred twenty tons of bullion produced in the past two weeks; one furnace stopped few days; 30,000 bushels charcoal on hand; mine producing 40 tons daily; machinery for new furnace deliverable in month; all satisfactory. - Maxwell" (London Times, July 12, 1872)

July 18, 1872
"Wanted. — Five good Smelters at the Flagstaff Furnaces, mouth of Little Cottonwood canyon. [signed] N. M. Maxwell, Supt." (Utah Mining Journal, July 18, 1872)

("Smelter" was a job title for a person that smelted ore, rather than a facility the smelted ore, which in those days was usually called a "furnace.")

August 6, 1872
Maxwell reported in a telegram, dated August 6th, that production at the smelter was reduced due to several men becoming sick with "lead colic." The smelter has produced 59 tons of bullion in the last week of July. Maxwell had put up a third furnace, and there was a fourth furnace under construction. (London Morning Post, August 12, 1872)

January 4, 1873
"Flagstaff Silver Mining Company (Limited), incorporated in London, capital £300,000; two furnaces, capacity ten tons each per day. Situated at mouth of Little Cottonwood Canyon; built by Buel & Bateman in 1870; a third furnace building; working Flagstaff ores. J. A. H. Pattrick, superintendent." (Salt Lake Weekly Tribune, January 4, 1873)

January 18, 1873
"Flagstaff Silver Mining Company, (Limited). Incorporated in London—capital $300,000. Have smelting works situated at the mouth of Little Cottonwood Canyon, built by Buel & Bateman in 1870; working Flagstaff ore. Three furnaces; two running; the third expected to start soon. The latter is a hot-blast furnace, and of equal capacity with the other two. When the third furnace is running the yield of bullion will be twenty tons daily for the three furnaces. Superintendent N. M. Maxwell, assisted by J. B. Stanford." (Salt Lake Weekly Tribune, January 18, 1873)

May 2, 1873
"Little Cottonwood’s ore shipment for last week was 600 tons. The Flagstaff is shipping thirty tons of ore daily to the Davenport Smelter. This mine has just shipped seven tons and $1,100 worth of bullion. Fifty tons are to follow." (San Francisco Examiner, May 2, 1873)

The following excerpts about the Flagstaff smelter come from "Geology And Ore Deposits Of The Cottonwood-American Fork Area, Utah" USGS Professional Paper 201, published in 1943, page 120.

(Beginning in November 1873, the financial future of the two mines, the Flagstaff and the Last Chance, began to collapse.)

(The story of the Flagstaff smelter at Little Cottonwood, and its closing in 1874, continues with the Last Chance smelter at Sandy after 1874.)

Last Chance Smelter, Sandy (1873-1874)

(The Last Chance Smelter was located at approximately 9200 South, on east side of Union Pacific tracks, near the site of the original Mount Jordan Middle School.)

The Last Chance Silver Mining Company of Utah, Limited, was organized in England in April 1872 for the purpose of purchasing the Last Chance mine in Muddy Fork of Bingham Canyon. Its directors were also directors of the Flagstaff Silver Mining Company of Utah, Limited. The two mines also shared the same superintendent, N. M. Maxwell, who furnished a report on the Last Chance mine in January 1872.

(Read more about the Last Chance mine in Bingham Canyon)

(The Last Chance mine in Bingham Canyon, and the Flagstaff mine in Little Cottonwood Canyon, were under common ownership of the same English directors, investors and superintendent right from each company's beginning in November 1871 and April 1872, respectively. - London Pall Mall Gazette, November 30, 1871; April 27, 1872)

"The Last Chance smelter was situated at Sandy, at the place where the public-school building now stands. This plant, which was afterward known as the Flagstaff smelter, had three cupola blast furnaces and used steam as motive power for the blast engines." (Utah Mining Gazette, April 11, 1874, p. 281.) (USGS Professional Paper 201, Geology And Ore Deposits Of The Cottonwood-American Fork Area, Utah, 1943, page 74)

April 26, 1873
"The Last Chance Mining Company of Bingham Canyon are erecting a fine, capacious [smelter] building a few hundred yards east of the [Sandy] station on the line of the W. and J. V. Railroad to contain two furnaces. The timbers and lumber, also stone for foundation and brick for the walls, are all on the ground. The building and works are under the management of Mr. W. J. Wressels, who is the company's Superintendent." (Salt Lake Weekly Tribune, April 26, 1873)

The decision by the Last Chance company to build its smelter at Sandy rather than in Bingham Canyon had to the completion, in September 1871, of the Utah Southern Railroad between Salt Lake City and Sandy, turning the town into a crucial transportation hub.

The English company erected the Flagstaff smelter (three stacks) at the mouth of Little Cottonwood canon, and ran it until November, 1873, when they leased the Last Chance smelter, near Sandy. Smelting was not as profitable as selling the ore, which, after April, 1876, was disposed of in the Salt Lake market. (D. B. Huntley, Mining Industries of Utah, Appendix I, Reports of the Tenth Census, 1880, page 423)

(In 1929 a history of early lead smelting in the West was published in the USSR&M employee magazine AX-I-DENT-AX. In that article, it was stated that the Last Chance smelter at Sandy had been built by the Wellington mining company. This is an error.)

(Read more about the Last Chance smelter at Sandy not being built by the Wellington company.)

(The Last Chance smelter at Sandy was built by the Last Chance mining company of Bingham, and was later owned and operated by the Flagstaff company.)

Operations Combined (1873)

(With the completion of the new smelter at Sandy, and due to a large debt and local mismanagement, the operations of the Flagstaff and Last Chance mines, and the new Sandy smelter were combined under a single general manager and single superintendent.)

Sandy was the perfect location for this combined operation for one major reason: logistics. Wagons could haul ore directly down from the combined companies mines, the Last Chance mine in Bingham Canyon and the Flagstaff mine in Little Cottonwood Canyon, right to the smelter. From there, the processed metals could be shipped immediately by Utah Southern Railroad.

(The Flagstaff and Last Chance mines were under common ownership of the same English investors as early as February 1873. The same group also owned the newly organized Tecoma Silver Mining Company.- Salt Lake Weekly Tribune, February 15, 1873)

(The Tecoma Silver Mining Company mine was located in Lucin Mining District, in the remote northwestern corner of Box Elder County, Utah. The Tecoma mine was roughly 6 to 7 miles south of where the Central Pacific (later Southern Pacific) railroad tracks crossed the Utah-Nevada border. The easy ore was taken within 60 feet of the surface, then played out. The failure of the Tecoma mine by late 1873 was "the last straw" for this group of investors, and they began pulling out of their Utah investments.)

July 5, 1873
"The Flagstaff mine is now making arrangements to ship 100 tons of ore per day. The force of men is to be increased, and everything about the mine is in a prosperous condition, reports to the contrary notwithstanding. The smelters are being torn down, but new ones are to be immediately constructed on the site of the old ones; in the meantime the ores are to be shipped to the Last Chance smelter, at Sandy. The product of the week before last amounted in value to £6,000, the largest ever yet realized from this mine in one week; it will be recollected that the product of the previous week amounted to £5,000. Official advice state that the mine never looked better than now, and its full capacity is 200 tons daily. It is not, however, purposed to work the mine faster than can be done with prudence to its further development, but that the hauling may shortly be expected to be 150 tons daily." (Salt Lake Weekly Tribune, July 26, 1873, citing the London Mining World, July 5th)

August 30, 1873
"Flagstaff. The warrants for the eighteenth monthly dividend were posted yesterday, making the aggregate amount 123,000l. Last week's product was 6300l., being an increase of 1400l. as compared with the previous week." (Utah Mining Gazette, August 30, 1873, citing the London Mineral Journal of August 2nd.)

(In British money of the 1870s, the lowercase l stands for pounds. An amount written as 123,000l (as above) means £123,000 (123,000 pounds sterling). This usage comes from the traditional £sd (or l.s.d.) currency system, where the letters represented the Latin names for the denominations: l = librae (pounds); s = solidi (shillings); d = denarii (pence). In 19th-century newspapers, legal documents, and financial records, typesetters frequently placed a lowercase, often italicized l. after or above the number because it was sometimes easier to format than the modern £ symbol at the front.)

August 30, 1873
"Last Chance. The warrants for the eighth monthly dividend were posted yesterday; the produce of the mine is increasing in quantity, and the ore is of a higher grade than formerly, and works more satisfactorily, the manager becoming more familiarized with the 'fluxing,' which necessarily requires some little experience in all descriptions of new ores. The first blast tried did not work well, but satisfactory progress is now being made; the ore, it will be remembered, is much richer than Flagstaff and requires more careful treatment." (Utah Mining Gazette, August 30, 1873, citing the London Mineral Journal of August 2nd.)

September 6, 1873
"The smelters at Sandy and vicinity are in active operation, that of the Last Chance at Sandy is running forty men, the company seeming bent upon making hay while the sun shines. One hundred and fifty bars of base metal are brought to the [Sandy] station daily." (Salt Lake Weekly Tribune, September 6, 1873)

September 6, 1873
The Flagstaff smelter at "Granite" at the mouth of Little Cottonwood Canyon, was still operating, having received its usual 25 to 30 tons of ore per day. The Flagstaff mine had shipped "nearly 1,000 tons" during August. (Utah Mining Gazette, September 6, 1873)

September 13, 1873
The Flagstaff and Last Chance mines would not being paying their usual monthly dividends, causing the stock on the London market to become depressed. The Flagstaff had shipped 49 tons of bullion during August, and the Last Chance has shipped 64 tons of bullion. The two mines and smelters were apparently under the common management of a Mr. Maxwell in Utah, who was communicating regularly with London by telegraph. (Utah Mining Gazette, September 13, 1873, citing the London Mining World of August 23rd)

September 13, 1873
"From the Last Chance mine twenty-five tons of ore were being shipped daily to the smelters at Sandy." (Utah Mining Gazette, September 13, 1873)

October 25, 1873
"The Last Chance is at present the only mine shipping ore, except, perhaps, one other that is filling a contract. The others having stopped until such a time as the smelters can afford to pay more than eighty cents per ounce for silver, a drop of twenty cents per ounce from the regular price. This the mine owners consider 'bleeding,' and are determined to let their ore remain on the dumps sooner than sell it at a discount. A few weeks ago Bingham Canyon shipped three hundred tons of ore a day; now about twenty-five or thirty tons constitutes the amount of our shipments. The Last Chance mine alone has shipped over three thousand tons during the present summer, clearing over one hundred thousand dollars." (Salt Lake Weekly Tribune, October 25, 1873)

November 22, 1873
"The Last Chance smelter at Sandy, is running three shifts, and turning out about 140 bars of crude iron." (Ogden Junction, November 22, 1873)

1873
The receipts for the Flagstaff mine and smelter during 1873 were £168,137. The lack of profits for the English owners comes from 75 percent staying in Utah for management of the enterprise, 4 percent staying with English management, and the remainder being used for dividends already declared and unpaid. (Utah Mining Gazette, March 28, 1874)

(The £168,137 in 1873 receipts translates to approximately $911,312 in U.S. dollars in 1874, and to roughly $26.6 million in U.S. dollars today.)

The Collapse (1873)

(Beginning in November 1873, the financial future of the two mines, the Flagstaff and the Last Chance, began to collapse. From early 1874 onward, operations of the the Flagstaff mine and original Flagstaff smelter, and the Last Chance smelter at Sandy and the Last Chance mine at Bingham were tied together due to common ownership by the British-owned Flagstaff Silver Mining Co. of Utah.)

By November 1873, it was becoming apparent that the Flagstaff and Last Chance mines were being badly managed by the English directors and the local management. The shares on the stock markets were being severely discounted. Dividends were paid but debt was increasing rapidly. Then the dividends stopped in August 1873, raising all manner of questions.

The Utah Mining Gazette of November 1, 1873 ran a lengthy article about the trouble brewing in London and Utah with the common ownership of the Flagstaff and Last Chance mines and smelters. Following is a summary of that article.

• There was a sudden drop in London stock prices (a "severe collapse") for British-owned Flagstaff and Last Chance mining companies operating in Utah. (This was likely due to the collapse of the British and European silver markets.)
• Investors who were previously told the mines were highly profitable and paying out millions in dividends are now facing unexpected financial trouble and confusing corporate reports.
• The Flagstaff Mine: Shareholders were led to believe the mine was packed with valuable ore. Instead, the mine suddenly closed down for "exploration" and further development. The article suggests the mine may have already been completely cleared out of its valuable resources, leaving investors worried that management isn't telling the whole truth.
• The Last Chance Mine: Faced with identical panic, the English directors of the Last Chance mine formed an official committee to investigate what was actually happening. According to their internal reports from the superintendent, Mr. Atwood.
• As with many of the Utah mines with absentee owners, local management always seemed to say a new ore strike was coming any day, and that more money was needed to ensure the next big strike. There was always rich new veins of silver and lead ore deep in the mine, and work was ongoing to secure the mine against winter weather and flooding.
• The newspaper remained highly skeptical. It notes that despite three months of promises, very little actual progress has been proven, and the shifting information from directors looked suspicious.
• And then there was also a massive $25,000 debt owed to the Illinois Central Company, which could result in seizure of the entire property, leaving ordinary shareholders with nothing.

November 8, 1873
"Flagstaff -- Official advices have been received that the mine is now free from debt, and private advices state that it never looked so well as it does now; the produce is about sixty tons of ore per day with the force now working and about the same quantity is smelted daily. Everything seems to justify its previous reputation. Last Chance -- The ore is yielding 75 to 90 ozs. of silver per ton, but remunerative returns cannot be looked for until the deep tunnel shall have been completed, by which the lower workings will be effectually drained, and the mine more economically developed. The result of the financial panic is beginning to be felt in Utah; no bullion or ore can be moved for want of currency, and the Flagstaff and Last Chance have not been able to sell any for some time, and have on hand bullion of the value of $100,000." (Utah Mining Gazette, November 8, 1873)

Last Chance and Flagstaff Consolidation (1874)

(From early 1874 onward, the Flagstaff mine and original Flagstaff smelter, and the Last Chance smelter at Sandy and the Last Chance mine at Bingham were tied together due to common ownership by the British-owned Flagstaff Silver Mining Co. of Utah.)

(December 16, 1873 - The consolidation of operations was under the control of Erwin Davis, who had made a loan of $25,000 to the Flagstaff company in June 1873 to cover expenses at the time. After the Flagstaff company failed to repay the loan or make other needed changes, in December 1873, Davis and the Flagstaff company made a contract that put Davis in control of the company for the purpose that he recover his investment. - U. S. Supreme Court, 122 US 138)

January 10, 1874
"The Flagstaff Management. — It is alleged that Captain Forbes, before starting for Utah, received from Mr. E. Davis, one of the vendors of the Flagstaff, 550 shares in the Tecoma Company, which shares he afterwards sold, and that the Directors emulating the liberality of Mr. Erwin Davis, promised to pay Captain Forbes £3,000 further, out of the money of the Shareholders in the Flagstaff, Last Chance and Tecoma for going out to assist Mr. Maxwell in overlooking the three mines. Not getting the money - ex nihilo nihil fit [nothing comes from nothing] - he has attached the Flagstaff Mine." (Utah Mining Gazette, January 10, 1874, citing the City Argus of London)

January 31, 1874
The Flagstaff mine in Little Cottonwood was shipping approximately 30 tons per day. The ore was taken from the mine and skidded by rawhide down the steep mountainside to Central City, where it was loaded into wagons and hauled to the Flagstaff's smelter furnaces at the mouth of the canyon. (Utah Mining Gazette, January 31, 1874)

February 14, 1874
In a report on the state of Utah mines owned by English companies, a correspondent to the Helena Independent of February 14, 1874 wrote.

February 19, 1874
A report to be submitted on February 24th by the Flagstaff Silver Mining company blamed the Utah management, considering the 15,000 tons of ore shipped from the mine, for not continuing the dividends that had been suspended in August 1873. Except for the Utah management, the company would have had no debt, and would have continued declaring monthly dividends, although smaller. New arrangement had been made by the London directors, with dividends to resume shortly. Mr. Cullen, "a tried and competent man" was to resume work with 40 men, and the next three months was to be spent developing the mine, allowing dividends to resume by the close of the year. (Yorkshire Herald, February 18, 1874)

February 19, 1874
"The directors of the Flagstaff Silver Mining Company of Utah (Limited) have issued their report to the adjourned meeting on the 24th inst. The revenue account shows that the total receipts for the past year amounted to £108,187 ($586,374), and the expenditure to £126,294 ($684,513) for the Utah management, and £7,837 ($42,477) for the management in London; leaving a balance carried to profit and loss account of £34,505 ($187,017), which has been absorbed by dividends already declared and paid, and a balance of £2,506 ($13,582) has been carried to the balance-sheet. The failure of the anticipated results of the past year's working is attributed to the costs of management in Utah." (London Daily News, February 19, 1874)

(A review of the above figures, with British pounds to U. S. dollars being approximate, shows that the company expenses exceeded revenue by more than $140,600. Dividends were being paid, but debt as it accumulated was not being reduced. And London blamed Utah, when in fact it was London that was paying excessive dividends.)

March 17, 1874
"The Flagstaff Smelter, formerly called the Last Chance, is running two stacks on Flagstaff ore." (Salt Lake Tribune, March 17, 1874)

(There was a planned meeting of the Flagstaff Silver Mining company to be held on April 16, 1874 in London, to receive the report of the new board, and to consider other matters of special purpose. But there are no online references to the meeting actually being held.)

May 2, 1874
"In Muddy Fork are situated the Ontario, Peabody, Jersey, American Flag, Last Chance, and extension of same, which was owned by Carson & Buzzo, who have lately commenced work upon it. The Last Chance, one of the oldest mines in Bingham, was purchased by the Flagstaff Co., who employ twenty-five or thirty miners, under the superintendence of George Cullen." (Utah Mining Gazette, May 2, 1874)

May 2, 1874
From the Utah Mining Gazette, May 2, 1874.

July 4, 1874
"In Muddy is the famous Last Chance mine, owned by the Flagstaff Co., which, under the management of the Patrick Bros., is considered the best worked mine in the district. A tunnel has been run to the distance of 400 feet, to connect with the main shaft 700 feet from the surface." (Salt Lake Weekly Tribune, July 4, 1874)

July 14, 1874
An "extraordinary general meeting" was held in London on July 14, 1874. "At the last meeting [no date given] they were led to believe that some terms of compromise would be proposed for settling with Mr. J. Davis; but he regretted that no terms had been sent in for the consideration of the directors, who would have given the matter their mature and calm deliberation." The board resolved that they had complete authority to take steps against Mr. Davis, as legal counsel might advise. An informal meeting of shareholders was held and a special committee was appointed to meet with Mr. Davis, with a report forthcoming. (London Morning Post, July 14, 1874)

August 14, 1874
At a meeting of the shareholders, with 2,666 shares present in person, and 8,944 shares by proxie, an ammendment was presented to give the board full authority in dealing with Mr. Davis. The amendment failed in a vote of 2,720 in favor and 8,890 against. A long discussion followed with the result that three majority shareholders were voted to seats on the board. The meeting was adjourned until October 1st, to determine if the reconstructed board could work together to find a solution in dealing with Mr. Davis. (London Morning Post, August 14, 1874)

October 10, 1874
At a special meeting of the shareholders of the Flagstaff Silver Mining company, the board informed the shareholders that Mr. Davis had declined any manner of settlement and had gone to America to take possession of the mine, and the shareholders were "left without any resources," waiting for the situation with Mr. Davis to be resolved. The result of the meeting was that the problems could be laid at the feet of the old board, and that the current board need not resign. (London Morning Post, October 10, 1874)

December 29, 1874
"The Last Chance smelter is also busy, running three stacks, and a large number of teams are busy hauling ore from Butterfield and Big Cottonwood canyon." (Utah County Times, December 29, 1874)

April 19, 1875
A petition for "winding up" the Flagstaff Silver Mining company (Limited) is to be heard before Vice Chancellor Hall on April 30, 1875. (London Morning Post, April 19, 1875)

(Research suggests that the petition was not allowed, and the company remained in business.)

The Court Cases

By June 1873, the British-owned Flagstaff company was deeply in debt, under the combined expenses of its mining operations, the cost to haul its ore to it smelter at the mouth of Little Cottonwood Canyon, and the cost of operating its own smelter. The resulting profits were not covering the debts. On June 12, 1873, Erwin Davis advanced £5,000 ($24,300) to the Flagstaff company, without good results. To recover his investment, in an agreement dated December 16, 1873, he forced the English directors and shareholders into an agreement that stipulated that the Flagstaff company "should be put under the sole management of J. N. H. Patrick, to be worked and controlled by him until such time as the ore sold had been delivered and the sums borrowed had been repaid."

J. N. H. Patrick and his brother M. T. Patrick, under the name of the Patrick Brothers, began in early 1874 to aggressively manage the Flagstaff company's assets, extract as much ore as possible, and recoup the massive debts. The Patrick Brothers were essentially given a blank check to manage and operate the Flagstaff mine and smelter as they saw fit.

The need to balance the Flagstaff mine's ore to improve recovery of precious metals resulted in the Patrick Brothers taking control of the Last Chance mine in Bingham Canyon, to use Last Chance ore as a flux for the Flagstaff ore. The Last Chance mine was regularly reported as being the "best worked mine" in the Bingham District.

To take advantage of the recently completed railroad between Bingham and Sandy, this blending of Last Chance ore and Flagstaff ore took place in the Last Chance company's smelter at Sandy, which in-turn resulted in the Flagstaff company closing its smelter at the mouth of Little Cottonwood Canyon. The Flagstaff smelter was not yet served by a railroad, which would result in additional haulage costs.

Three law suits were filed that brought to light the details of these actions. One was a case decided by the U. S. Supreme Court in 1881 (Mining Company v. Cullins, 104 U.S. 176 (1881)) in which the manager by the name of George Cullins, hired by the Patrick Brothers to maximize ore extraction from both mines, sued for unpaid wages, and won. (Some reports show the magagers name as Collins.)

A second and third lawsuit, also decided by the U.S. Supreme Court in 1887 and 1891 (Davis v. Patrick, 122 U.S. 138 (1887) and Davis v. Patrick, 141 U.S. 479 (1891)), were brought by Erwin Davis against the Patrick Brothers firm, which included a third Patrick brother, A. S. Patrick. The law suits were meant to resolve the liability for what Davis believed were exorbitant haulage fees incurred by the Patrick Brothers’ firm. Paid by the ton hauled, the Patricks aggressively increased extraction to satisfy the company’s debts, effectively overwhelming the Sandy smelter with raw ore and creating a production bottleneck. This desperate attempt to maximize smelter output and satisfy the debt to Davis forced the facility to operate beyond its capacity, leading to significant maintenance neglect and reduced precious metal recovery. While the legal disputes centered on the Patricks' right to recover these excessive transportation costs, the Supreme Court ultimately held that because Davis had specifically induced the Patrick Brothers to continue these operations under the promise that he would be responsible for the expenses, he could not subsequently disclaim liability for the debt. This affirmed that Davis, as the primary beneficiary of the mine's output, was legally bound to honor the contracts entered into by his appointed managers.

(In the original law suit, filed in Nebraska, A. S. Patrick alleged that around November 15, 1873, he was employed by Erwin Davis to transport silver ore from the Flagstaff mine in Utah Territory to furnaces at Sandy, Utah. He claimed he continued this work until about November 20, 1875, at which time an account of services settled from Davis' books showed $26,539.54 due to Patrick, and he sought judgment for that amount with interest.)

(In November 1891, after the U. S. Supreme Court had returned the case to the federal court in Omaha for a retrial, the jury again found in favor of Patrick in the amount of $70,000. - Fremont (Nebraska) Tribune, November 12, 1891)

There was also a law suit, Davis vs. Flagstaff Silver Mining company, that was first heard in Third District Court, appealed to the Utah Territorial Supreme Court, then appealed to the U. S. Supreme Court. The newspapers mentioned this case only at each step of the legal proces, but did not give details of the case. (Salt Lake Tribune, January 31, 1880, appealed to the U. S. Supreme Court)

The lawsuits were a symptom and a final legal consequence of deeper and preexisting financial troubles. The quality of the ore was deteriorating and it was the major creditors (Davis and the Patricks) fighting over the scraps of an already failed company. By the time those cases reached the U. S. Supreme Court in the 1880s, the company had already effectively disintegrated as a viable business entity in Utah.

Like many British-owned mining ventures in Utah during the 1870s, the Flagstaff company suffered from the problem of an absentee landlord. The London-based directors lacked technical understanding of Utah's mines and mining oprations. Rather than use established processes to mine and smelt the ore under sustainable mine development, these absentee owners consistently invested in expensive, unproven smelting technologies promoted by so-called experts known only to the London directors. When these expensive plants failed to produce high-grade bullion and the associated high profits, the company resorted to borrowing capital just to pay dividends, creating an unsustainable financial structure that made insolvency inevitable. The legal battles were the result of desperate attempts to recover value from the failed company.

Liquidation and Reorganization

(Research strongly suggests that two New York City banks, Seligman Brothers and Wells, Fargo, and Co., were acting as agents for the two British-owned mining companies, having agreed to furnish the needed working capitol. During these times of legal difficulties, the mines themselves were under lease to a variety of small operators, was the Sandy smelter. The leasers themselves determined where the ore was sent, either to the Sandy smelter, owned by the company, or sent to other local smelters. Any income went to the New York banks to repay their loans of operating capitol. None apparently went to London.)

The year 1875 is the critical pivot point, as it marks the legal proceedings (Re Flagstaff Silver Mining Co. of Utah, 20 Eq. 268) in the English Chancery Court, which officially initiated the "winding up" (liquidation) of the company. Because the company was an English limited entity, its physical assets in Utah were placed under the control of the banks. The Utah assets dropped from public view, and all entered into an extended period of low or no activity.

Following the financial collapse and the subsequent legal entanglements in the mid-1870s, the Flagstaff property, which included the Flagstaff mine and original Flagstaff smelter, and the Last Chance mine and smelter, underwent a transition from ownership by an English parent company, to a period of fractured, smaller-scale, and often intermittent operations.

The Flagstaff properties were liquidated as separate assets, carved up and picked over as the original London-based Flagstaff Silver Mining Company was wound up in the British courts.

The mines were leased to small operators and the mining claims themselves eventually sold and consolidated with larger adjacent properties in Little Cottonwood Canyon, and in Bingham Canyon.

The original Flagstaff smelter was abandoned, but the Sandy smelter was operated under various leases to local operators, and briefly became a custom smelter, accepting a variety of ore from a variety of mines.

October 1, 1875
"The Last Chance at Sandy station is to start up the fires on the 4th of this month. They will run on the ores from the Flagstaff mine, Little Cottonwood. This smelter has been one of the best paying enterprises in the Territory, and its resumption is another indication of the improvement of times in Utah." (Real-Estate and Mining Gazette, October 1, 1875)

(During 1876, there were numerous law suits filed locally against the Flagstaff company. These were likely for work performed but not paid for.)

February 19, 1877
"The Flagstaff Silver Mining Company of Utah (Limited) have received a telegram from the agent at Salt Lake City stating that the Supreme Court confirms the judgment given in favour of the company and declares Davis's contracts wholly fraudulent and void. Privately we are informed that the court took the case out of the usual course in order to render immediate justice to English interests. A private telegram states that Seligman Brothers and Wells, Fargo, and Co., of New York, have accepted the agency of the company and placed $25,000 to the manager's account." (London Morning Post, February 19, 1877)

June 3, 1877
The Flagstaff (Last Chance) smelter, located on the Union Pacific tracks in Sandy, was processing the lead ore from the Spanish mine in Bingham. The price in lead had declined sharply, but the Spanish mine was still in operation because they had a fixed-price contract with the Flagstaff smelter. (Salt Lake Tribune, June 3, 1877)

October 25, 1877
In the Third District Court in Salt Lake City, there were two cases notable concerning the two companies, the Flagstaff company and the Last Chance company. In one case, the two companies were suing each other, and in the second case, Wells, Fargo & Co. was suing Erwin Davis. This last suit was a trial by jury, and was in progress. The first case was continued into the court's next term. (Salt lake tribune, October 25, 1877)

November 13, 1877
Among the judgments against the Flagstaff Silver Mining company was one for $10,400 in favor of Baskin & DeWolfe. (Salt Lake Tribune, November 13, 1877)

The Last Chance was reorganized as the Last Chance Consolidated Silver Mining Company in September 1878. The Last Chance claim was 100 feet by 1200 feet, and it was hoped that consolidating with the adjoining claims (Hooper, 200 feet by 1500 feet; Opulent, 200 feet by 1500 feet; Silver Maid, 200 feet by 1200 feet) would provide sufficient access to paying ore to re-establish the company as a paying investment.

May 7, 1879
The Flagstaff Silver Mining company lost its appeal before the U. S. Supreme Court, in its case defending against a trespass and encroachment suit by an adjacent company, represented by Helen Tarbet. The Flagstaff company was claiming apex rights, but the court found that because the lengthwide boundaries of its mining claim were perpendicular to the run of the ore vein in question, the Flagstaff company had no apex rights. (Deseret News, May 7, 1879)

By 1880 the Last Chance mine had 6,000 feet of tunnels, which provided access to mineral veins of other adjacent companies. Its later value came from its surface property lines and its infrastructure, including its underground tunnels and a reduction mill situated at the head of Muddy Fork (or Gulch).

In 1880, the property consisted of the Flagstaff, South Star and Titus, Virginia, and Nabob. The Flagstaff is 2,200 by 100 feet, but it extends across and not along the belt." (D. B. Huntley, Mining Industries of Utah, Appendix I, Reports of the Tenth Census, 1880, page 423)

March 1, 1881
On order of the High Court of Justice, Chanery Division, in the matter of the Flagstaff Silver Mining Company of Utah (Limited), on February 3, 1881 the court ordered all creditors of the company to present their claims on or before April 4, 1881, to James Waddell, the official liquidator of the company. (Salt Lake Herald, March 1, 1881)

July 13, 1884
The U. S. Marshal in Salt Lake City received a letter from the lawyers of the Flagstaff Silver Mining Company of Utah (Limited), dated June 26, 1884, acknowledging that he was in possession of the company's property in Utah on behalf of the London Bank of Utah, and informing him that an order winding up the company had been obtained, notwithstanding the opposition of the board of directors. The letter also informed the Marshal that the property must not be interfered with or removed pending the appointment of an official liquidator. The letter was accompanied by a copy of the order of the English High Court of Justice, Chancery Division, winding up the business of the Flagstaff Silver Mining Company of Utah (Limited). (Salt Lake Tribune, July 13, 1884)

Flagstaff After 1884

Summary of later Flagstaff events:

• The Flagstaff mine was a significant early producer in the district, but its primary period of active production concluded around 1881. By the time of the 1887 litigation, the mine had largely transitioned away from the high-volume output of its early 1870s peak.
• Following the 1887 Davis v. Patrick decision, the original English company structure effectively faded. During this period, the mine became largely inactive regarding large-scale company management. Instead, independent "leasers" frequently operated on the property, often working the old dumps or cleaning out smaller ore bodies that the major English-funded enterprise had bypassed. Some of these "leasers" were actually squatters due to the unclear and unsettled documentaion of actual ownership of the property.
• The Little Cottonwood district experienced a notable decline during this time, often referred to as a "bust" period. During these decades, the Flagstaff mine was mostly inactive or operated on a very limited scale, often by independent leasers rather than by the original English company.
• The resurgence of the district began when the Columbus Consolidated Mining Company was organzized in 1902. The Columbus Consolidated company was part of a major district-wide effort to solve the water problem that plagued all of the Little Cottonwood mines after the 1880s.

July 1, 1885
"Prof Vincent, manager of the Flagstaff mine, is said to be in the city, with a view of extensive improvements on the old property." (Salt Lake Evening Democrat, July 1, 1885)

December 9, 1885
"The Flagstaff Mine, Alta." The Flagstaff mine is still in the hands of an English company, "Each month the company forward a full report of the mine to the head office in London." (Salt Lake Evening Democrat, December 9, 1885)

October 19, 1887
"Professor Vincent, of London, the president of the Flagstaff Mining Company, has just returned to this city from Alta, where he has been examining the famous property. It was on his recommendation that the Flagstaff was bought by the English syndicate which owns it, and he has never lost faith in the ultimate success of the venture." (Salt Lake Herald, October 19, 1887)

October 29, 1890
"Prof. M. C. Vincent has returned from Alta, where he was superintending the erection of a shaft for the Flagstaff mine." (Salt Lake Herald, October 29, 1890)

December 17, 1891
"The celebrated Flagstaff mine is reported to have a large quantity of good ore ready to sack and ship. The new machinery is in place and working well." (Salt Lake Herald, December 17, 1891)

July 25, 1902
"The old Flagstaff mine at Alta, which astonished the nation with its riches over twenty years ago, but which has been practically idle since the first great boom in the camp, is back among the producers, the first lot having reached the smelter yards yesterday. Meanwhile lessees are preparing to concentrate the large volume of milling ore on the dumps of the Flagstaff." (Salt Lake Tribune, July 25, 1902)

August 8, 1903
"In the district are iron ores of a character such as needed by the smelters for fluxing purposes. The old Flagstaff mine, which, one time, came near causing international complications, is said to contain a vast amount of iron ore of the class mentioned." (Deseret News, August 8, 1903)

December 16, 1905
Alta Consolidated - "During the past few months the old Emma and Flagstaff properties have passed into the hands of a syndicate of Milwaukee and Salt Lake capitalists. Both these mines are to be opened again, this time, in a systematic manner. There is not the slightest doubt but that both are capable of producing many millions more than they did in their early history. The Alta Consolidated is the name of a new company that has been formed to develop the Flagstaff." (Deseret News, December 16, 1905)

(Read more about the mines in Little Cottonwood Canyon)

Last Chance After 1880

(Read more about the Last Chance mine after 1880)

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