S. R. Engine 101 was transferred to the S. N. but henceforth was to go by the number of 1. Of course, the company could borrow a locomotive or other equipment from the S. R. or the D. & R. G. as needed.
Ever since the panic of 1893 with its demonetization of silver, mining in the San Juan had been seriously crippled but, since the Sunnyside mine near Eureka and the Silver Lake mine near Waldheim produced good values in gold, the S. N. could make a profit.
Mining men, Mears among them, had great hopes that mining would revive as of old if William Jennings Bryan could be elected as president. Bryan, it should be remembered, was running in 1896 on a platform of silver coinage at 16 to 1 with gold. When he was defeated Mears lost hope for any improvement in mining and moved to the East where he took up several projects. One was the building of the Chesapeake Beach railroad from Washington to the beach. Another was the promotion of the Mack Truck Co. with himself as the first president. He, at that early date, saw the possibilities of automobile transportation.
Though Mears stayed in the east until 1907 he exercised a strong supervision over his San Juan railroads and made a number of trips back to the country to oversee them.
In 1901 the company owned one locomotive, one passenger coach, ten box cars and one service car. For the year ending June 30, 1901 it had operated 3376 miles of mixed and 1310 miles of passenger service. In 1902 it paid a dividend of 10%.
The Gold Prince mine, four miles up the Animas River canon from Eureka, was then flourishing so Mears decided to build a railroad to the place. He hired Thomas Wigglesworth as surveyor and constructor. Construction from Silverton to Eureka had been easy—no hard grading and only two small bridges—but from Eureka to Animas Forks, the little town near the Gold Prince, it was to be very difficult—up a rough canon and over 7% to 7½% grade, the very maximum for a steam railroad.
Mr. Vest Day gives an account of its building:
“Mr. Thomas Wigglesworth, for whom I had worked several times before, hired me to get stuff together and go up to Animas Forks to establish a camp. Late in May of 1904 I loaded on the train at Durango about a carload of surveyor’s equipment and camp supplies, among which was a 350-lb. cook stove, all to be taken by rail to Eureka. There the two Peck brothers packed it on burros and, since the snow was deep and soft, they often had to spread gunny sacks out for the burros to step on, especially for the one with the stove, to keep them from sinking in too deeply. Everything arrived at Animas Forks in good order.