Because gold had been found at the headwaters of the Blue River at Breckenridge, hopes were high among prospectors who worked the downstream tributaries in Grand County.  However, this lower section of the Blue contained no mineral wealth. 

The Denver and Rio Grand Railroad planned to run a route through the valley and began constructing grades, but the tracks were never laid because Moffatt's railroad crossed the county first.

An enterprising Canadian, 25 year old Willis Charles Call, had been employed as a cook for the grading company in 1881.  When the railroad abandoned the project, Call became a registrar of voters, and in 1886, the county assessor.  By 1890, he had a choice ranch near Kremmling.  His Austrian wife, Mary Rohrocher, was a very popular hostess.  It is believed that they owned the first automobile in the county.

The conflicts between the white settles and Ute Indians came to a climax in 1878 when the Ute leader Tabernash was killed by a posse and the very next day, Abraham Elliott a homesteader on the Blue, was killed in retaliation.  The remains of his ranch can be seen on Highway 9 at mile marker 135. 

Across the river was the ranch of Henry Yust, who settled there in 1885.  Another early ranching family was that of Thomas Pharo, An Englishman from Franham in Surry, near London.  Settling there in 1880, he developed a major cattle and horse ranch. 

The Blue River area was connected with a route west in 1913, when the co-called Trough Road was constructed, beside the Gore Canyon to State Bridge.

Monarch, now a picturesque lake for meandering around on a pleasant summer day, was once a bustling town, the home of the Monarch Consolidated Gold and Copper Mining and Smelting Company, and the rail head of the Rocky Mountain Railroad.  The life of this little company town and railroad was very short lived and now nearly forgotten. 

Boulder business men T.S. Waltemeyer, and Frank and Charles A. Wolcott heard about traces of gold, silver, and mostly copper at the junction of the Arapahoe Creek and the South Fork of the Colorado River.  In 1905 they established the Monarch Consolidated Gold and Copper Mining and Smelting Company and built their company on the assumption that a major belt of minerals extended east through the Continental Divide.  The Monarch Company consisted of several subsidiary companies including lumber companies, an "investment" company, an exploration company, and a development company.  The main objective of the company was to mine metal ores, but supplement it with timber and build a railway to benefit the whole corporation. 

The company had 1740 acres of placer and lode claims; the main mines were the Copper King, Copper Queen, Omaha, Ella C., and High Lonesome. The Monarch Company shipped heavy machinery by flatbed cars to Granby on the new Moffat Road.  They then put an ad in the paper asking for bids to haul heavy machinery 16 miles from Granby to Monarch.  The machinery included "5 boilers (eight and a quarter tons each), one engine (over eleven tons), one flywheel (6 tons), other machinery (from 1 to 5 tons), a carload of nails, and several hundred pounds of miscellaneous supplies."  The task of hauling the heavy equipment was made especially difficult by mud-holes and bridges not made for heavy loads.  Denver hauling companies refused to take on the job and one Swedish logging company from Wyoming abandoned the challenge after the first wagonload stuck in a mud-hole.

Finally Dick McQueary agreed to move the machinery.  To accomplish the job, McQueary purchased several hundred feet of hardwood planks in Denver, 3 inch thick, sixteen inches wide and twelve feet long.  Accompanying the heavy pieces up the mountain was a "4 horse team hauling hardwood plank, a 4 horse team pulling six inch pine poles, 10 feet long, and a four horse team pulling two ton large nails".   The crew built temporary bridges across mud-holes by laying pine poles 3 feet apart with hardwood planks laid across the poles.  2 light loads were driven across to test bridge followed by the heavy load pulled by 12 head horses.  Finally the planks and poles were pulled up to be used at the next mud-hole.  The heavy machinery was hauled in 2 weeks.

Construction on the Rocky Mountain Railway, a standard-gauge line from Granby to Monarch, began in 1907.  The 16 mile line was completed by Thanksgiving.  There were hopes of someday extending the line to Grand Lake for resort passengers and eventually a line to Walden in North Park.  The Denver and Northwest Railroad Company helped survey the line by lending J.J. Argo's services.  Dick McQueary was once again brought in to grade the road bed between the Monarch mill and Granby.  Most of the workers on the railroad were Japanese, Bulgarian, Hungarian, and Austrian day laborers from an employment agency in Denver.  The laborers were paid $2 a day, (plus a fifteen cent fee for their interpreter).

Once the railway was completed and in operation it issued passenger tickets.  However, the company never published a schedule.  Neither did the company hire a full train crew to run their single locomotive.  To meet regulations for switching service on Moffat tracks in Granby, the Rocky Mountain Railroad took on board a couple of interested bystanders.  At gates crossing ranch properties fireman Leo Algier would simply jump off the train to open the gate and close it after the train had crossed through before hopping back on the train.  Ranching families on the line were allowed to catch rides on the train when it passed through or to request package drop-offs. 

The Monarch Company created Monarch Lake by damming the valley, at the junction of Arapahoe Creek and South fork of the Colorado River, for use with the saw mill and the box factory. A 2800 foot long chute carried tree trunks down the hillside to the lake where they hit the water and could bounce up to 50 ft high.  Then a stern-wheel steamer pushed logs into a system of canals and flumes that led down to the saw mill and box factory. 

The town of Monarch included employee housing, business offices, a post office, and an assembly hall.  Dick McQueary helped haul sawlogs to mill and haul materials for building employee housing in Monarch.  Grand County's first hydro-electric generator was in Monarch.  The waterworks system was created by piping water from the falls at Mad Creek and had pressure up to 300 lbs per inch. 

Even thought the mining company never produced more than $150 a year, the owners continued to promote the business to stockholders and they were able to keep the business running by through their enthusiasm for the project.  During the summer, stockholders were invited to visit Monarch, tour the site, and hear lectures on the operation.  The tour often included a visit to a spruce tree named "Monarch" that was seven feet in diameter.  So, while business might not have been booming, enthusiasm and interest from stockholders was.  

The last piece of Monarch to be constructed was the box factory in 1907.  Unfortunately the factory only operated for 2 or 3 months before it suffered a fire and was totally destroyed.  Robert Black in Island in the Rockies stated that the questionable promotions of Monarch would have been forgiven if the box factory had developed into a solid operation. 

Soon after the fire, a disagreement between management and labor resulted in the entire work force being fired.  For several months the Rocky Mountain Railroad operated the train with one man who acted as engineer, fireman, brakeman and conductor. The company hired Dick McQueary as general manager until fall the fall of 1907 when stockholders discovered the true state of the company and declared bankruptcy.   Stockholders and the community were convinced that the whole company had been created as stock-selling scheme.

Although the Monarch Company and the Rocky Mountain Railroad were no longer in business, the railway continued to be used for a number of years.  For example, Ed McDonald, dude rancher, put a Cadillac touring car on flanged iron wheels to carry mail, supplies, and guests to his ranch.  The center of town was preserved and developed by the Dierks as a summer resort called Ka Rose, after Katherine Rose Dierks, after the owner's daughter.   In 1912 the rail line was used for transporting fisherman along the river by Ernest F. Behr, a former Colorado and Southern engineman.  Finally, in 1918 the rails were sold to a junk dealer in Denver to satisfy the World War I need for scrap metal. 

Currently, the town, mill site, and box factory lay under the waters of Lake Granby and are inaccessible, except in years of draught.  However, there are a couple of remaining pieces at Monarch Lake that are still visible.  On the south side of the lake, near the water's edge, is a boiler that was used to yard logs into a chute and shoots the logs into a holding pond.  Also, the flume still runs down the hillside into the lake.  The trail around Monarch Lake takes hikers directly under the flume.

James "Jimmy" M. Stafford was born in 1849 in Wexford Ireland. Jimmy immigrated to Leadville in the 1870's to work in the booming silver mines. In Leadville, he met and married  Deborah Helen Acey (born 1846 in Trenton New Jersey) in 1880.  In the 1880's the couple moved to Dillon and then homesteaded the Stafford Ranch on the Blue River at Spring Creek Road. Jimmy built their home by hand carrying logs from Green Mountain.  They had one son, Frank Elmer Stafford, born in 1886. Jimmy and Deborah also operated the stage stop, boarding house and saloon called the "Halfway House" between Kremmling and Dillon on Highway 9.  It remained in operation until the stage lines ceased in the early 1900's and the buildings were dismantled in the 1940's.  

Frank went on to marry Alice Smith in 1909 and they had six children, including their first, a son, James Elmer, who died at age 8 in the worldwide flu epidemic of 1918. Frank and Alice built the Stafford General Store, directly across from the "Halfway House".  Frank was instrumental in installing the first telephone lines in the area and served as Grand County Commissioner from 1928 to 1936 and as County Commissioner from 1948 until his death from injuries in a car wreck in 1950.  Alice was called the "Blue River Belle" and kept the general store until 1960.  Alice lived in Kremmling until her death in 1969.  

Most serious ranchers had more than one ditch and most built one or more reservoirs. Hilry Harris, Munroe C. Wythe, Samuel H. Burghard, and John A. Coulter entered the first water claim in the county on September 20, 1874. This came out of Sheep Creek above the head of Gore Canyon.

There usually was some natural irrigation; but the challenge of getting the water from the creek required laborious construction of diversion dams, headgates, and ditches, the earliest ditches being dug by hand and often taking up to four years to complete. Later, ditches were dug using teams and scrapers. The grade was figured out initially by simple gravity flow, letting a trickle of water move down the ditch. Soon ranchers refined the process, using a 16’ long board placed with a 1/8" slope, determined by a carpenter’s level. A.F. and Roy Polhamus surveyed a great many of the water ditches, especially those impressive ones in West Grand County, some of which even had tunnels involved. Most small ditches supplied just one ranch, but if a ditch had to cross another ranch, that rancher usually got a share. And some of these ditches were long!

For instance, Dr. Henry Hoagland, on the Blue River, anticipated getting water close at hand from Spruce Creek. Instead, he discovered an old timer had previous rights that forced him to go back into the mountains and build a 13-mile long ditch. Hoagland had figured on spending about $7000; in the end, the actual cost was $26,000! His crew dug the ditch around side hills and across valleys using flumes and siphons. Then his real troubles began. Terrible leaks and washouts occurred everywhere. Finally he hauled in adobe and put this in the bottom of the ditch, rented sheep, and drove them day after day up and down the ditch to pack it. After a couple of years of using this tamping process, the ditch held. Other ditches were even longer. The Church Ditch at Willow Creek and the Wheatley Ditch on the back Troublesome were both 16 miles long.

The Company Ditch (aka the Williams Fork Ditch), eight feet wide on the bottom, was another long one. Built between 1903 and 1907, it cost $44,000 and had a decree for 150 cubic feet / second. The ditch went uphill and down, requiring many flumes and bridges. One flume was actually 1200 feet long! Subsequent breakdowns, leaks, and slides were so frequent and repairs so extremely costly that old-timers have said the reason the Company Ranch went broke about 1920 was the expense of The Ditch. The Lyman Ditch (or the Curtis), started about 1891, was just as complicated as the Company Ditch. Crossing high above the Williams Fork River, the ditch eventually needed cement piers to carry the pipe (1928). This ditch had so many slides, leaks, and washouts, that it had to be inspected once or twice daily! Siphons were required over draws. Flumes, sometimes ¼ mile long, might be 25-30 feet high, and one flume was actually 177 feet high; but these heights were necessary to maintain the elevation.

Flumes, being of wood, rotted and were guaranteed to leak. Sometimes wind blew a portion of the flume down. Finally the county put in big pipes to help the ditches across the Williams Fork. It might be noted that, when water leaked out of ditches, a side benefit was that ranchers along the way could use the "lost" water. Along with the ditches came reservoirs.

Fred DeBerard had four reservoirs on the Muddy: the Albert, the Binco, Milk Creek, and a low one that flooded the Jones place near Kremmling. All were dirt, of course. The Hermosa Ranch on the Little Muddy had water rights through the Sylvan Ditch and Reservoir Company and they built the Sylvan Reservoir dam and the Hermosa Ditch starting in 1911 and completing it by the spring of 1916. The Stein Ditch, started in 1897, was another large ditch, this one later purchased by the Taussig family. These ditches were all built originally to provide water to meadows and fields for ranching purposes. For years, people hauled in water for baths and household use, but that gradually changed. Leon Almirall, near the Horseshoe Ranger Station on the Williams Fork, decided that he wanted water for his home, so he built a 1700’ pipeline to his house, added an inside bathroom, and was shocked when the line froze the first winter – it was only three feet deep. He called in workers who dug down and insulated the line with manure and straw. It froze again. Finally, Almirall gave up and buried the line six feet deep. Now he had his water!

On Ranch Creek in the east end of the county, E.D. Shew cut a ditch upstream from his house, placing it along the edge of the creek, but directing the water back into the main channel near his house. At that point, he put a little water wheel that pushed the water up the hill to his cabins -- and furnished electricity besides. Eventually he replaced the water wheel with a gas engine. There was a similar water wheel, used for the same purpose, up in Hideaway Park.

Water was used to transport lumber as well. A flume ran down the mountain into Monarch Lake, in the days when the Monarch Company was timbering there. There was a flume along St. Louis Creek, carrying lumber from the camps upstream. Perhaps the most ambitious flume ran from Western Box Sawmill. This area is now under Meadow Creek Reservoir. In 1906, the Deisher Lumber Company paid Nathan Hurd for a right of way through his land and built a flume with a 2% grade down Hurd Creek. Logs were placed in the flume and a horse harnessed to the last log. The horse then pushed the logs down the flume with the help of the water. Three years later, the mill was moved to "Sawmill Meadow" on Meadow Creek.

In 1911 construction on the seven-mile-long Vaver Flume began, with 117 cubic inches of water allotment. This flume ran down Meadow Creek and over to Tabernash, carrying partially processed logs for further manufacture. A flume rider checked along the way, making sure there were no jams, and phone line allowed the rider to report troubles. Hikers can see remnants of both the St. Louis Creek flume and that one coming down Meadow Creek today.