Reprinted with permission by the Sierra County Historical Society from The Sierran of April 1971, Vol 3., No.1

History of the Discovery of Great Blue Lead

After the first pass at the rich surface stream placers, the more enterprising of the gold-rush prospectors turned their attentions to the perplexing but highly productive “hill diggings.” The shrewder miners, like Chips in the narrative below, figured out that these were the remnants of ancient fossil rivers. The author of “Early Annals of Downieville and Vicinity,” chapters of which have appeared in these pages in recent months, participated in the hill diggings boom of the 1850’s, up on the ridge south of town.

In Chapter 6 of “Early Annals,” reprinted from the Tuolumne Courier (1860), he expands on his favorite theme and records some of the events that took place in this boom. The discerning reader will recognize this chapter as the source of the oft-quoted tale of the short but illustrious mining career of “Chips,” the English ship carpenter, Alleghanian M.A. Singleton wrote Bancroft the historian, in 1862, that Chips’ real name was Wilson. But posterity undoubtedly will continue to think of him as just Chips, and the big hydraulic scar as “Chipses Flat” will long endure as a monument to the part he played in the goldrush of south Sierra. Likewise, the Smith’s name has been fittingly retained to designate the corresponding flat on the Alleghany side of Kanaka Creek. The narrator of “Early Annals” would have done far better to have joined the Smiths rather than try to find another Blue Lead on upper LaFayette Ridge. That strike turned out to be just a high bench remnant of the main Blue Lead. But we should let our chronicler tell the story in his own words.

— William Pickiepoche

In July 1852, the hill diggings of Minnesota were discovered by Old Joe Taylor, Chips and Mike Savage, as they were prospecting in Taylor’s Ravine, near its head. Chips, whose right name, as far as I am able to tell, was never rightly known, was supposed to be an old English sailor, a ship carpenter by trade. He was an original sort of a character, living alone in an old dirty cabin, and hardly ever sober; but one of the luckiest prospectors of this vicinity. Chips, then, whilst prospecting on the Ravine, observed an outcrop of blue gravel, and informed his partners, Taylor and Savage. Starting a tunnel here, they soon found it to pay extremely rich; and as such men could not long keep their secrets, it was not a great while before others got scent of the wealthy claims in this vicinity. This was the starting of the Blue Tunnel, the Irish claims, the Wisconsin Tunnel, and the Minnesota Drift.

At first, it was thought that the rich hill claims were only peculiar to this ravine; nor did they look further than the outcrops, for diggings, for some months. But, as ground became scarce, the miners tried other localities, even commencing in the solid rock. Chips, who could never sit down to regular hard work, but who was, perhaps, the best prospector of the whole district, now began to prospect on the opposite of the ridge; rightly arguing that as both the creeks were rich, the lead must be in the center of the hill. Accordingly, selling out to his partner, Taylor, he commenced at, or near to, what is now known as Chips’ Flat, nearly opposite of his old claim, the Blue Tunnel, with the avowed intention of running a tunnel so as to meet the other and make an opening from Minnesota Flat to Chips’ Flat; the understanding being that each company should own to the center of the hill.

Chips soon struck richer gravel than had been struck before by any company, and his fame spread accordingly. He sold shares in his tunnel to anyone disposed to buy, bought others in different parts of the hill, and was in a fair way of becoming a millionaire; but this ruined him, as well be seen hereafter.

Fred O. Smith and Henry Smith, taking the hint from old Chips, now commenced on the falt on the top of hill opposite to Chips’ Flat and directly above the Forks of Kanaka Creek, and finding the soil and rock similar, commenced tunneling with good prospects. The Smiths, finding that the surface dirt would pay expenses, determined to run a bedrock tunnel until they struck gravel. Most persons at this time, thought them insane, and the movement more than doubtful; but nothing daunted, these enterprising men determined to invest their all in this speculation, which everyone deemed to be chimerical.

Next week, the Annalist's story will continue and provide information concerning the fate of Chips, the Smiths and the wide extent of the rage for hillside mining.