Durango was founded by the Denver & Rio Grande Railway in 1880. The railroad arrived in Durango on August 5, 1881 and construction on the line to Silverton began in the fall of the same year. By July of 1882, the tracks to Silverton were completed and the train began hauling both passengers and freight.
From the very beginning, the railroad was promoted as a scenic route for passenger service although the line was constructed primarily to haul mine ores, both gold and silver, from the San Juan Mountains. It is estimated over $300 million in precious metals has been transported over this route.
By 1885 the population of Silverton had grown to 1100 and Otto Mears completed the toll road to Ouray and additional narrow gauge track out of Silverton was laid down in 1887. In 1893, 10 large mines in the Silverton district were forced to close when silver prices dropped from $1.05/oz to $.63/oz. Just three years later the Yankee Girl and Guston Mines played out. In Durango, the fire of 1889 virtually destroyed downtown and the first automobile arrived by train in 1902. By 1906, Mesa Verde was designated a National Park, increasing the potential for tourism promotions.
