With Hagerman's health somewhat restored, and he and his family returned to the U.S. in 1884. He moved to
Colorado Springs, Colorado, hoping that the dry air and high altitude would continue to improve his health. (See
Tuberculosis treatment in Colorado Springs). Hagerman built the
Hagerman Mansion and quickly became involved in local business. He built an office building and became a major stockholder in the First National Bank.
Colorado Midland Railway Hagerman's new-found interest, however, was in railroads. In June 1885, Hagerman gained control of the
Colorado Midland Railway, which ran from Colorado Springs to
Buena Vista. Hagerman sought to expand the railroad to Aspen and Grand Junction, and possibly west to Utah. He bored the
Hagerman Tunnel through the
Sawatch Mountains, and completed the line to Grand Junction in 1888. Hagerman also used lucrative coal mines to not only power his railroad but also to sell coke to the Leadville smelters. In 1890, Hagerman sold the railroad to the
Atchison, Topeka and Santa Fe Railway.
Mollie Gibson mine A miner at heart, Hagerman was not about to be left out of the silver boom hitting the region. H.B. Gillespie, a mine owner in the region who had been involved in several major silver strikes, owned the Mollie Gibson mine, near Aspen. A major silver vein had been discovered in the mine, but Gillespie was convinced that the vein also ran under a number of other, nearby mines. Seeking capital to purchase these properties before news of the strike got out, Gillespie contacted Hagerman, who agreed to invest heavily in the new company. In 1890, the Mollie Gibson Mining & Milling Company was organized with Gillespie as manager and Hagerman as president. The company quickly purchased the Lone Pine, Silver King and Sargent mines and invested heavily in the Emma and other smaller mines. The company announced its silver strike on December 9, 1890. The combined Mollie Gibson mine became the richest silver mine in the world until that time. Still suffering from the effects of tuberculosis, Hagerman moved to
New Mexico in 1892. But he retained his Colorado holdings, and took an active hand in managing his interests there. The
Panic of 1893 and repeal of the
Sherman Silver Purchase Act caused the value of silver to collapse. But the price of gold remained unaffected, and the gold mining industry was still strong. A major gold strike near
Cripple Creek, Colorado, led Hagerman to become involved in gold mining.
Isabella gold mine and the Cripple Creek strike Hagerman was approached by the owners of the Buena Vista mine, who were convinced that properties adjacent to their claim also contained gold. Following the pattern established in Aspen, Hagerman and his partners purchased 22 adjoining properties and formed the
Isabella Gold Mining Company. The mine became a major success. Hagerman was one of three mine owners to precipitate the
Cripple Creek miners' strike of 1894. The mine owners, who employed about a third of the miners in the area, extended the work-day to 10 hours. At the time, this was the best pay for miners anywhere in the United States. The workers, represented by the
Western Federation of Miners, struck. Although some smaller mining companies capitulated immediately, some owners raised a paramilitary force under the legal protection of the local sheriff. After a tense and somewhat violent standoff, the governor sent in the state militia to protect the miners. Hagerman was nominated by the other mine owners to handle the conflict and agreed to return to the
eight-hour day. It was seen by some as a major victory for the union. In 1898, Hagerman sold his stake in the Isabella Gold Mining Company and turned his remaining Colorado interests over to his son, Percy. ==New Mexico ventures==