When two Germans, having imbibed too liberally shot up the mining town of Lulu City, they were run out of town. They went higher and established camp, on the side of Red Mountain near timberline. There they found a lode of low grade gold, silver and lead.
While it lasted only two years, this encampment came to be called "Dutch Town". Gradually the fierce winters and lower quality of ore drove the settlers out, leaving only a few empty cabins about a mile west of Lulu City.
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Sources:
Perry Eberhart, Guide to the Colorado Ghost Towns, Sage Books, Denver, 1959