Henry M. Blackmer

Henry Myron Blackmer was one of the more colorful characters in the Cripple Creek saga, and by all accounts, one of the most notorious. His many business interests took him across the nation and around the world, but it was the gold of Cripple Creek that laid the basis for his incredible fortune.

Blackmer came to Colorado Springs from Massachusetts in 1885. Six years later, at the young age of 22, he was elected El Paso County Attorney. After only two years of service, the citizens of El Paso County rewarded Blackmer by electing him district attorney. His keen legal mind and sharp intellect would come in very handy in the years ahead.

Like so many others, Henry Blackmer flung himself into the Cripple Creek boom with abandon. With the Carlton family as partners, Blackmer contributed much of the capital to form the Colorado Trading & Transfer Company. The near-monopoly this firm had on freight hauling and coal selling made a great deal of money for all concerned within a few short years. Henry Blackmer was on the fast track to riches.

The profits from the transportation business made it possible for Blackmer to invest in and control several Cripple Creek mining companies. Among his conquests were the Orphan, Olive Branch, Buck Horn, Findley, Morning Star, New Haven and Pilgrim mining companies. The profits from these companies, whether they came from gold discovery or stock jobbing, expanded Blackmer's fortunes tremendously. Even with all these new business interests and activities, Blackmer managed to maintain an active law partnership with Henry McAllister.

His next big move was the formation of the Cripple Creek Central Railway Company in 1904. This firm acquired some choice properties from the Denver and Southwestern Railway Company, including the Midland Terminal, Florence & Cripple Creek, and the Golden Circle railroads. Most rail traffic in and out of the District was under Blackmer's control. Because of his control over rail traffic, Colorado Trading & Transfer became the preeminent tool for local traffic as well. Even the famous Short Line Railroad, formed to break Blackmer's dominance, was eventually forced to capitulate and came under his control in 1905.

The massive Midwest oil refinery in Wyoming.

With his place as one of the Cripple Creek millionaires assured, Henry Blackmer went looking for even greater fortunes. He wound up his affairs in the District and went into the oil business in 1912 at the great Salt Creek field in Wyoming. Along with Verner Z. Reed, future Colorado Governor Oliver Shoup, and a handful of other Cripple Creek luminaries, Blackmer helped form the Midwest Refining Company. Soon, 25,000 barrels of Salt Creek crude were flowing through the Midwest refinery each day. Henry's future looked brighter all the time.

Even with his fortune blossoming, Blackmer could not resist the aggressive and greedy pursuit of more money. His greed, combined with his sharp, scheming mind, led Blackmer to concoct an oil trading deal that would net him a fortune. In 1923, Continental Trading Company was formed by Blackmer and a few titans in the oil industry. His partners included Harry Sinclair of the huge Sinclair Oil Company, James O'Neill of Prairie Oil and Gas, and Colonel Robert Stewart, president of Standard Oil of Indiana. Continental bought 8.7 million barrels of crude oil from the giant Mexia, Texas oilfield, marked up the price by 25 cents per barrel, and instantly unloaded the oil on Sinclair and Prairie. The result: a $2 million profit for a few days of work.

The great Mexia, Texas oilfield.

Interior Secretary Albert Fall

Unfortunately for all involved, Harry Sinclair, Colonel Stewart and Secretary of the Interior Albert Fall became the focus of a federal investigation for fraud and bribery. Sinclair's lease of lands owned by the Naval Oil Reserve had come under the sharp focus of government investigators and ignited a nationwide uproar. This outrage became known as the Teapot Dome Scandal.

When the government discovered that some of the Continental Trading profits had been paid to Secretary Fall, bribery was alleged and the whole trading scheme made headlines. Though no charges were brought against Blackmer or his partners as a result of the Continental deal, the stigma of the Teapot Dome scandal forever tarnished the reputations of all involved. Sinclair was acquitted of bribery but later convicted of jury tampering. O'Neill fled the country to avoid testifying before the Senate and died in exile. Stewart was forced out as chairman of Indiana Standard by John D. Rockefeller Jr. Albert Fall became the first U.S. cabinet secretary to be sent to prison.

Henry Blackmer did not escape unscathed, but certainly managed to land on his feet. In a great irony, he had negotiated the sale of Midwest Refining to Standard Oil of Indiana back in 1921 and became a multimillionaire in the process. His handling of this affair, combined with the Continental Trading scandal, made bitter enemies of his former allies. At least one of Verner Z. Reed's descendants still speaks of Blackmer with disdain 80 years later.

Like O'Neill, his former partner, Blackmer fled to France to avoid testifying before Congress and remained there until 1949. In a negotiated settlement with the Justice Department, Blackmer paid a record $3.7 million in back taxes and fines in exchange for being allowed to return to the United States. The exile of the 80-year-old Blackmer was lightened, according to an article in Life magazine, by "a second marriage and some high living in France."

The government continued its legal pursuit of Blackmer for many years, even beyond his death in 1962 at the age of 92. He left his multimillion dollar fortune to his wife and sister. At the time his wife later died, the government was still litigating Blackmer's estate.

Henry M. Blackmer left a legacy of brilliance, wealth, scandal and infamy. He earned a place not only as one of the Cripple Creek millionaires, but also as one of its more notorious citizens.