Alleghany, "The Treasure Town," was made up several mining camps; Smith's Flat, Kanaka Flat, Wet Ravine, Cumberland and Kanaka City. All were established within a few months period in 1851, with Smith's Flat being the first.
Among the first miners were J. McCormic and Perry Bonhanm from Alleghany, Pennsylvania. They started a drift mine called the Alleghany Company Tunnel in April 1853 and tapped paystreak in 1855. In early spring of 1856 a town, originally called Jericho or Alleghanytown was laid out.
On Nov. 19, 1857, Alleghany received recognition when the Chips Flat post office was transferred there. Several rich load mines were near Alleghany, the largest being the Sixteen To One, which ultimately yielded between 25 and 50 million dollars in gold. In 1854 there was considerable business activity; a banking house, express companies, merchandise stores, saloons - one complete with a bowling alley, a hardware store, butcher shop, clothing establishments, bookstore, drugstore, several hotels and brothels. On July 27, 1877 an attempted robbery of an E Clampus Vitus treasure box on the Mountain House Rd. took place. Masked men demanded the box, but upon the Clamper sign being given, the returned it. Fortunately the bandits were Clampers and allowed Brother Lane to pass without molestation. Alleghany mines were known for huge nuggets. One nugget weighed 45 pounds and immense boulders of quartz laden with gold, one piece was 6 feet in length.
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