Placing a Mine in Nevada
By William Daugherty, 1891
The allure of the American West in the 19th century was often fueled by the promise of striking it rich in the booming mining industry. Nevada, with its vast, untamed landscapes, became a focal point for prospectors and entrepreneurs eager to unearth the riches hidden beneath its rugged terrain. In this historical account, William Daugherty, writing in 1891, recounts an intriguing episode from his time working in the County Recorder’s office in Austin, Nevada, in 1865. His narrative provides a fascinating glimpse into the speculative nature of mining ventures during that era, and the methods employed to attract investors to what were often highly uncertain prospects.
Daugherty’s story revolves around a mining prospectus he encountered, one designed to entice investors on the eastern market. As he recalls, the prospectus was a masterclass in persuasive language, carefully crafted to present a silver mine as an unparalleled opportunity for legitimate investment. The document emphasized the "high standing and well-known character" of the mine’s owner, assuring potential investors of his integrity and expertise in silver mining.
The prospectus cleverly addressed potential skepticism by acknowledging that the owner’s capital was already heavily invested in other, as-yet unproductive mines. This admission was framed not as a red flag, but as a testament to the owner’s commitment to the mining industry. The urgency of the opportunity was further heightened by the claim that the offer would only remain open for thirty days, urging swift action from those seeking to capitalize on this "magnificent" prospect.
The guarantee against loss, as outlined in the prospectus, was perhaps the most audacious element of the proposal. It promised that upon the full subscription of stock and the formation of the company, the owner would transfer all his interests to trustees selected by the stockholders. This gesture, it was implied, was as solid a guarantee as one could expect from a financial institution as reputable as the Bank of England.
Following this assurance, the prospectus delved into a detailed description of the mine itself, beginning with its discovery. According to the document, the mine’s discovery was not a matter of mere chance, but the result of "thorough scientific principles." The discoverer, a Senor Alvarez, was portrayed as a seasoned veteran of silver mining, having accumulated and lost vast fortunes in the mines of old Mexico due to the country’s turbulent political climate.
Alvarez’s journey eventually led him to California and, later, to Nevada in 1859, following reports of discoveries at Gold Hill. While others were fixated on gold, Alvarez, with his extensive knowledge of silver mining, purportedly located the celebrated Spanish Mine, from which he amassed considerable wealth. This success story served to further bolster his credibility as a mining expert.
Three years later, when new discoveries were reported in the Reese River section of Nevada, Alvarez wasted no time in organizing a party of prospectors and venturing into the region. Selecting the highest peak in the Toiyabe Range, which his experience had taught him was the likely location of the "mother lode," he initiated a systematic and scientific search for silver. His efforts were eventually rewarded when he discovered argentiferous croppings of significant richness, leading him to the "great mother lode" through a series of cross-cuts and excavations.
The prospectus emphasized the unique character of the ore found in the St. Helena Mine. Unlike the light chlorides that were easily lost during amalgamation, the ore was composed of solid cubes of argentiferous galena, which required only melting to yield virgin silver. This superior quality, it was claimed, meant that the mine’s richness would only increase with depth. The prospectus boldly predicted that at a depth of 500 feet, the vein would transform into a solid body of silver.
Daugherty’s personal connection to the St. Helena Mine added a layer of intrigue to his account. As the former deputy mining recorder in Washington District, where the mine was located, he had personally measured the claim, fixed the boundary monuments, and recorded the mine in the official records. The realization that he had once been in close proximity to this potentially lucrative mine filled him with a sense of regret.
He considered abandoning his work and rushing to the mine to stake a claim, but the thought of Alvarez’s 50-strong crew of Mexican workers, who likely had already secured all the surrounding land, dissuaded him. Daugherty finished copying the prospectus, lamenting his missed opportunity.
The story takes a turn when the agent tasked with placing the property on the eastern market became stranded in Salt Lake City, Utah. This delay led to Alvarez becoming entangled in financial difficulties, resulting in the property being levied upon, the camp breaking up, and the Mexican workers dispersing. As of 1891, the St. Helena Mine remained largely untouched, with the claim that the ledge would become a solid mass of silver at a depth of 500 feet still unproven.
Daugherty’s account serves as a cautionary tale about the speculative nature of mining ventures in the American West. It highlights the importance of due diligence and the potential for even the most promising prospects to fall victim to unforeseen circumstances. The story also underscores the role of persuasive rhetoric in attracting investors to these ventures, and the allure of striking it rich that fueled the dreams of countless individuals during this era.
Published in the Reno Evening Gazette in 1891, Daugherty’s narrative provides valuable insights into the history of mining in Nevada and the legends that surrounded it. Compiled and edited by Kathy Alexander/Legends of America, and updated in October 2024, this account continues to captivate readers with its blend of historical detail and personal reflection.
See Also:
- Mining on the American Frontier
- Nevada Mining Tales
- Nevada – The Silver State
- Pioneers on the Nevada Frontier (Reno Evening Gazette)
About the Author: Written by William Daugherty for the Reno Evening Gazette in 1891. The Reno Evening Gazette was first published on October 12, 1876, and continued for the next 107 years. In 1977, it was merged with the Nevada State Journal and continues to exist today as the Reno Gazette-Journal. Note: The article is not verbatim as spelling errors, minor grammatical changes, and editing have occurred for the ease of the modern reader.