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The first discovery of coal in the Coal Basin area <br /> was in 1881 by C . D . Griffith and W. D . Perry . Prior to <br /> this time, the area was used almost exclusively by the Ute <br /> Indians as part of their summer hurting range . Reportedly , <br /> the Redstone area was a popular summer encampment , possibly <br /> because of the hot springs located approximately three miles <br /> north of town . <br /> John C . Osgood , founder of the Colorado Fuel and <br /> Iron Company, purchased the claims in 1883 . After obtaining <br /> eastern financing for his venture , a wagon road was built <br /> westerly from Redstone some eight miles to the mine site and <br /> mine development was begun. Company towns were laid out <br /> both in Coal Basin for the miners and in Redstone for miners <br /> and employees who operated the batteries of bee-hive coke <br /> ovens also at Redstone. <br /> In 1897-98 a standard gauge railroad link was <br /> completed from Carbondale to Redstone connecting the Redstone <br /> operation to the Denver and Rio Grande trackage at Carbondale . <br /> This line was later extended up the Crystal River in 1899 to <br /> Marble , Colorado . Marble was quarried commercially there <br /> for many years thereafter . In 1900 a narrow gauge spur from <br /> Redstone was completed to the mine site in the Coal Basin . <br /> The high-grade metallurgical coal from the mine was trans- <br /> ported to Redstone by way of narrow gauge railroad, converted <br /> to coke and then shipped by way of standard gauge railroad <br /> to the company ' s steel mills located at Pueblo , Colorado . <br /> 5 <br />