Santa Cruz Mining Company

The Santa Cruz Mining Company was organized in 1908 by J. B. Hancock,from Durango, J.F. Dunn from Alice, Texas, and James R. Dougherty from Beeville, Texas. The company was incorporated in Delaware later the same year. Among its stockholders were some investors from the Hancock, Loving, Roby, and Venable Company, from San Antonio Texas, which also included James R. Dougherty. The SCMC had a sister company, the Santa Cruz Development Company, organized under the State of Delaware in 1917. It became defunct sometime around 1920. Around 1903 these companies were interested in acquiring mines in Mexico, especially in the state of Durango. The mines named Jesus Maria, Santa Cruz, Anexas de Santa Cruz, Dolores, Rosicler and El Placer,located in Otaez, Durango, became property of the SCMC. The mines were in operation until 1913, probably because of the Revolution. They closed indefinitely around 1930 due to the closing of the smelters, trouble with the unions and the drop in silver prices.

The SCMC had a few trusted employees in the area. Pablo Moreno, still employed at the mine since 1919, served as custodian. Frank L. McCaughan,another employee and a former manager, paid the taxes and corresponded with Mr. Dougherty, who passed away in 1950. In 1967 the Dougherty family decided to reopen the mine and asked attorney J. Chrys Dougherty to begin activities towards the rehabilitation of the mine, acting as legal counsel in Texas. Attorney Alberto Terrones Benitez, who knew Mr.James Dougherty and was acquainted with the history of the Santa Cruz mine, was asked to serve as legal counsel in Mexico, as was Durango Attorney Jaime Carranza. A professional geologist, Mr. Philip Beckley, was hired for the project and Dr. Peter Flawn served as consultant.They traveled to the mines in 1967 and other times after that. The mines and the surrounding areas were mapped and photographed. The mine titles were cleared of any controversy with the Bureau of Mines in Mexico, as the taxes were paid through all the years the mines had not been in operation. The price of silver had gone up which made the sale of the SCMC a good prospect. The stockholder lists needed to be brought up to date and all attempts were made to contact every stockholder to keep them appraised of the project. Mrs. James Dougherty was the majority stockholder and made cash advances to the company.

In 1959 Dr. George Stoker had leased the mines until 1964. Dr. Stoker passed away in 1963 and his widow gave the lease rights to Edward Jarvis, who with his Compania Minera Cruz Dolorosa worked the mines. Mr. Jarvis considered the mines as his property and caused quite a few problems for the SCMC, especially when Mr. Dougherty, Mr.Beckley, Dr. Flawn and Mr. Carranza started visiting the mines, in 1967. The police accused Mr. Beckley of drug trafficking due to having found some marihuana in the aircraft used to trasport the ores to the smelter. Both Mr.Terrones and Mr. Carranza took the case to court, and also the Jarvis case for fraud and robbery.

Improvements were made at the mines and needed equipment was purchased, together with the construction of an airstrip, inaugurated in 1968. Later a primary school and a clinic were built in the area, and proper staff hired. A chapel was also built in the area in honor of Mr. James Dougherty, called the Iglesia of Santiago Apostol, and Bishop Francisco Medina came to bless it at the dedication in June 1970. These events were a cause for celebration for the whole community.

The SCMC leased the mines to Compania Minera del Picacho y Anexas, S.A., incorporated in 1972. This company had other mine claims under the name of Mr. Carranza, who served as the head of the company. Later a new company was formed in Mexico, called Compania Minera de Santa Cruz, which took over the claims held by the Compania del Picacho. When Mrs. Dougherty passed away in August 1972 her heirs completed the foreclosure, as she had called the promissory notes given to her by the SCMC. In 1975 the Estate of Genevieve T. Dougherty sold all of the stock of the Compania del Picacho to C.S. Youngblood and M.L. Hall of Gray County, Texas.

From the guide to the Santa Cruz Mining Company Records 1993-19., 1893-1977, (Benson Latin American Collection, The University of Texas at Austin)