HOW THE FIRST AUTHENTIC NEWS REACHED US.

Placer mining had been going on at Circle City and the settlement of Forty Mile for some time, and news of the wonderful productiveness of the mines there had reached the United States, but the gold fever did not become pronounced until the arrival in San Francisco, on the 14th of July of this year, of the steamer Excelsior with forty miners and gold dust valued at over $500,000.

These forty miners were the first to bring the story of the almost fabulous richness of the new Klondyke mines near the Upper Yukon. One of these miners, J. C. Hestwood, who brought home $10,000 worth of gold as the result of two months' work, had this story to tell:

"Circle City and Forty Mile have suffered the usual fate of mining camps which have petered out, only these camps have not petered out. When gold was found in such astonishing quantities on the tributaries of the Klondyke the whole population of those camps moved bodily to the junction of the Klondyke and Yukon rivers, where Dawson City is established. This district, the richest placer country in the world, was discovered by an old hunter named McCormick, who has a squaw for a wife and several half-breed children. McCormick went up in the spring of 1896 to the mouth of the Klondyke to fish, as salmon weighing ninety pounds are caught where this stream meets the Yukon. The salmon didn't run as usual and McCormick, hearing from the Indians of rich placers nearby where gold could be washed out in a frying pan, started in to prospect.

"Near what is now Dawson City he struck very rich pay dirt in a side hill. As soon as news of his discovery spread men from Circle City and Forty Mile rushed in. The richest claims are in Bonanza Creek, which empties into the Klondyke three miles above Dawson City. There are three claims in that district, each 500 feet long, extending clear across the creek on which it is located. No one can file an additional claim until he has recorded his abandonment of his old claim.

"In the adjoining Bunker district there are 200 claims. The two districts have been well prospected, but further up the Klondike is much territory which has never been travelled over.

"Old miners declared that the north side of the Yukon was worthless, so no prospecting was done until McCormick started in. There is no claim-jumping, as the Canadian laws are rigid and well enforced. The rich pay dirt is only struck near bed rock and this generally lies from eighteen to twenty-five feet below the surface.

"The method of mining is to remove the surface mass, which is eighteen inches thick, and then build a fire which burns all night. In the morning the gravel is shaved down about two feet. This is shovelled out, and another fire is built, and in this slow and laborious way the ground is removed to bedrock. This work can be carried on all winter, except when the mercury falls below 60 degrees.

"Dawson City is a booming town of about 3,000 inhabitants and is growing every week. Provisions were scarce and dear last winter, and all supplies are costly. An ordinary 75-cent pocket knife sells for $4, and shoes bring from $6 to $8. A dog-sledgeload of eggs was brought in last winter from Juneau. About half were spoiled, but the whole lot sold readily at $4 per dozen. Flour sold as high as $1 a pound."

Mr. Hestwood showed many small nuggets from the new Bonanza Creek district, where his mine is situated. The gold is the color of brass, and is worth $16 to $17 an ounce. It isn't as pure gold as found elsewhere on the Yukon.