From the main tunnel branches were run north and south along the east side of the vein for a distance of over two miles, with which the several companies connected by drain drifts from their mines. The flow of water through the tunnel has at times been over 10,000,000 gallons in twenty-four hours. Between the mouth of the tunnel and the Carson River there are 155 feet of fall, but it has never been utilized for driving reduction works. New connections are still being made with the tunnel for drainage. Though it never paid anything near what was anticipated by Mr. Sutro, the tunnel still brings in a snug sum annually. Last year (the fiscal year that ended February 29, 1888) the receipts for royalties amounted to $237,258.33. It costs a considerable amount annually to keep the main tunnel and branches in repair. This great drain at a depth of 1,600 feet below the surface allows of Pelton water wheels being set up in the shafts of the several mines and worked under immense pressure, there being a free discharge from the wheels. At the C and C shaft of the Consolidated California and Virginia, such wheels have been put in every 500 feet from the surface down to the Sutro Tunnel level. The water used on the first wheel on the surface, in the stamp-mill, is caught up, led to the shaft, and used on the second 500 feet below, and so on down to the tunnel level, the power being brought from wheel to wheel to the surface by means of a system of steel wire cables. Thus is transmitted to the surface the power developed by the whole series of wheels. The Reduction Works of the Early Days. In the early days the building of quartz-mills kept pace with the building up of the towns. As early as October, 1859, Logan & Holmes had a four-stamp horse-power mill in operation at Dayton, and Hastings & Woodworth had two water-power arastras at work, which reduced six tons of ore a day. This ore was not worked as silver ore. It was from the surface of the Comstock Lode, at Gold Hill, and was worked for gold only. In the spring of 1860 many mills for working silver ore began to be erected. The First Silver Mill.