Sherman related how the party crossed the bay, and first went to San Rafael, then to visit Gen. Vallejo at Sonoma before moving onward to New Helvetia. Col. Mason, with Lt. Sherman and John L. Folsom, finally arrived at Sutter’s Fort.

---

At that time there was not the sign of a habitation there or thereabouts, except the fort, and an old adobe-house, east of the fort, known as the hospital. The fort itself was one of adobe-walls, about twenty feet high, rectangular in form, with two-story block-houses at diagonal corners. The entrance was by a large gate, open by day and closed at night, with two iron ship’s guns near at hand. Inside there was a large house, with a good shingle-roof, used as a storehouse, and all round the walls were ranged rooms, the fort-wall being the outer wall of the house. The inner wall also was of adobe. These rooms were used by Captain Sutter and by his people. He had a blacksmith’s shop, carpenter’s shop, etc., and other rooms where the women made blankets. Sutter was monarch of all he surveyed, and authority to inflict punishment even unto death, a power he did not fail to use. He had horses, cattle, and sheep, and of these he gave liberally and without price to all in need. He caused to be driven into our camp a beef and some sheep, which were slaughtered for our use. Already the gold-mines were beginning to be felt. Many people were then encamped, some going and some coming, all full of gold-stories, and each surpassing the other. We found preparations in progress for celebrating the Fourth of July, then close at hand, and we agreed to remain over to assist on the occasion; of course, being the high officials, we were the honored guests. People came from a great distance to attend this celebration of the Fourth of July, and the tables were laid in a large room inside the storehouse of the fort. A man of some note, named Sinclair, presided, and after a substantial meal and a reasonable supply of aguardiente [brandy] we then began the toasts. All that I remember is that Folsom and I spoke for our party; others, Captain Sutter included, made speeches, and before the celebration was over Sutter was enthusiastic, and many others showed the effects of the aguardiente. The next day (namely July 5, 1848) we resumed our journey toward the mines, and, in twenty-five miles of as hot and dusty a ride as possible, we reached Mormon Island. I have heretofore stated that the gold was first found in the tail-race of the saw-mill at Coloma, forty miles above Sutter’s Fort, or fifteen above Mormon Island, in the bed of the American Fork of the Sacramento River. It seemed that Sutter had employed an American named Marshall, a sort of millwright, to do his work for him, but Marshall afterward claimed that in the matter of the saw-mill they were co-partners. At all events, Marshall and the family of Mr. Wimmer were living at Coloma, where the pine-trees afforded the best material for lumber. He had under him four white men, Mormons, who had been discharged from Cooke’s Battalion, and some Indians. These were engaged in hewing logs, building a mill-dam, and putting up a saw-mill. Marshall, as architect, had made the “tub-wheel,” and had set it in motion, and had also furnished some of the rude parts of machinery necessary for an ordinary up-and-down saw-mill.

Labor was very scarce, expensive, and had to be economized. The mill was built over a dry channel of the river which was calculated to be the tail-race. After arranging his head-race, dam and tub-wheel, he let on the water to test the goodness of his machinery. It worked very well until it was found that the tail-race did not carry off the water fast enough, so he put his men to work in a rude way to clear out the tail-race. They scratched a kind of ditch down the middle of the dry channel, throwing the coarser stones to one side; then, letting on the water again, it would run with velocity down the channel, washing away the dirt, thus saving labor. This course of action was repeated several times, acting exactly like the long Tom afterward resorted to by the miners. As Marshall himself was working in this ditch, he observed particles of yellow metal which he gathered up in his hand, when it seemed to have suddenly flashed across his mind that it was gold. After picking up about an ounce, he hurried down to the fort to report to Captain Sutter his discovery. Captain Sutter himself related to me Marshall’s account, saying that, as he sat in his room at the fort one day in February or March, 1848, a knock was heard at his door, and he called out, “Come in.” In walked Marshall, who was a half-crazy man at best, but then looked strangely wild. “What is the matter, Marshall?” Marshall inquired if any one was within hearing, and began to peer about the room, and look under the bed, when Sutter, fearing that some calamity had befallen the party up at the saw-mill, and that Marshall was really crazy, began to make his way to the door, demanding of Marshall to explain what was the matter. At last he revealed his discovery and laid before Captain Sutter the pellicles of gold he had picked up in the ditch. At first, Sutter attached little or no importance to the discovery, and told Marshall to go back to the mill, and say nothing of what he had seen to Mr. Wimmer, or any one else. Yet, as it might add value to the location, he dispatched to our headquarters at Monterey, as I have already related, the two men with a written application for a preëmption to the quarter-section of land at Coloma. Marshall returned to the mill, but could not keep out of his wonderful ditch, and by some means the other men employed there learned his secret. They then wanted to gather the gold, and Marshall threatened to shoot them if they attempted it; but these men had sense enough to know that if “placer”-gold existed at Coloma, it would also be found farther down-stream, and they gradually “prospected” until they reached Mormon Island, fifteen miles below, where they discovered one of the richest placers on earth. These men revealed the fact to some other Mormons who were employed by Captain Sutter at a grist-mill he was building still lower down the American Fork, and six miles above his fort. All of them struck for high wages, to which Sutter yielded, until they asked ten dollars a day, which he refused, and the two mills on which he had spent so much money were never built, and fell into decay.