Cerf Brothers were Gold Miners

San Luis Obispo County had a gold rush in 1877-78, and Ernest and Moses Cerf were in the middle of it. The gold mines of La Panza Grade, comprising claims that began as early as 1872, were located along the San Juan River where the San Jose Range of mountains joins the Santa Lucia Range. By 1877, somewhere between 250 and 400 miners, primarily Hispanic with some Chinese and Americans, were reportedly mining for gold in that area. They lived around the town of La Panza, now a ghost town.  Just over the summit from La Panza is the town of Pozo. The Pozo Saloon, built in 1858, is a favorite weekend destination for locals today, offering historical color and weekend music concerts.

La Panza post office and store in 1892.

Historical photo of Pozo Saloon.

On March 1, 1875, Ernest Cerf paid $800 to P. P. Louvell for the gold mining claims known as San Jose, Tres Amigos and Ivanhoe Tunnel. Then on January 23, 1877, Ernest Cerf and others sold several mining claims (San Jose, El Rincon, Tres Amigos and Ivanhoe Tunnel) for the sum of $1 to La Rinconada Quicksilver Mining Company. The Sacramento Daily Union reported on March 14, 1877, “Articles of Incorporation of the La Rinconada Quicksilver Mining Company.  Capital $1,000,000, in shares of $10 each.  Directors: Juan Castro, Hypolite Dallidet, Estevan Castro, L. Landeker, Ernest Cerf and P. P. Louvell.  The principal place of business will be in San Luis Obispo.”  The deed recording the $1 sale noted that Ernest Cerf owned 6,560 shares of La Rinconada.  At $10 a share, that’s a huge investment. I’ve learned that things aren’t always what they seem, so it’s possible I am missing something here. Probably he received the shares in exchange for the mining claims.

Why did Ernest transfer the rights to the claims instead of keeping them for himself?  In the History of San Luis Obispo County, California, the following information was found that might answer that question. “Gold has been found in the various gulches and creeks of the county. Specimens worth over $5.00 have been found at the head of the Santa Rosa Creek, and the placer diggings at San Jose and La Panza are sufficient proof of gold existing in paying quantities.  We have been informed by merchants here that over $100,000 worth of gold has been taken out of the two districts named during the past two years. Scarcity of water prevents the working of these mines during the summer months, hence the labor is confined to two or three months in winter and a little dry rocking during the summer. Competent engineers have examined the water system of the La Panza District, and say abundant water can be obtained within two miles of the mines, and by an investment of $10,000 can be conducted thereto. It appears to us to be a small risk and expenditure for a scheme that might prove of incalculable value to the projectors, and great benefit to our county. We draw the special attention of our readers to this probable source of profit.” (Angel 252-3)

How successful was the gold mining? Most miners averaged about $2.50 a day at a time when gold sold for $20 an ounce (Dart 46). The mine owners were optimistic, as we see in this quote: “...we have no hesitancy in asserting that good returns will be made from a proper working of these claims.  The present owners, Messrs.  A. Blochman and Co., have great faith in the future of this property, which is evidenced by the great watchfulness observed over it by them.” (Angel 251). And then published in the SLO Tribune on February 23, 1883:

On Monday last we were shown by Mr. Cerf, of Blochman and Co., a fine lot of several hundred dollars’ worth of gold-dust from the mines of La Panza, in this county. In the receipts of bullion at San Francisco, as reported annually by various statisticians, the name of San Luis Obispo never appears, and thus in the reports sent abroad, one—as many others are—of our important interests is neglected. Throughout the San Jose Mountains, between the Salinas and the San Juan Rivers, gold is found, and, where water is obtainable, can be mined with profit. On La Panza, Navajo, Montezuma, and other streams of that region, mining has been carried on quite extensively; and during the gold excitement of 1878-79 several hundred were engaged in washing for the precious metal. Numerous quartz veins have been found showing gold, but no machinery has been erected for crushing the ore. The gold is altogether obtained from the placers by cradle and sluice washing. The want of water is the chief obstacle to successful mining. The annual product, unless the drought prevents work, is about $10,000 of gold-dust annually; also some $60,000 worth of chrome iron ore, and possessing immense deposits of quicksilver, copper ore, gypsum, onyx, alabaster, and asphaltum. If San Luis Obispo is a first-class “cow county,” so is it able to take high rank in mining, as its mineral resources are of a wonderfully rich and varied character. (Angel 250)

In the end, the lack of water in the semi-desert area of San Luis Obispo probably ended the gold rush at La Panza. I looked for a deed showing La Rinconada Quicksilver Mining Company had sold its interests in the mining claims, but none was to be found.

References:

Angel, Myron. History of San Luis Obispo County, California, Oakland, CA: Thompson & West, 1883.

Dart, Louisiana Clayton. Vignettes of History in San Luis Obispo County, San Luis Obispo, CA, 1978.

Sacramento Daily Union, Vol. 3, No. 18, 14 Mar 1877, California Digital Newspaper Collection, http://cdnc.ucr.edu/cdnc.

San Luis Obispo County Deeds, SLO County Recorder's Office, San Luis Obispo, CA.