High in the mountains above the Alliance lies the Sampson Mine. When the owners were unable to repay the $50,000 they had borrowed from banker William McCormick, the mine was sold at sheriff's sale in 1888. New owners immediately assessed a levy of $1 per share to build the Hanauer tunnel from the flooded 400 ft level. The tunnel worked and The Park Record newspaper reported in December 188 that the Sampson would ship ore one again and that the "affairs of the company were in order for a profitable winter of mining".
Alliance was born on February 16, 1889 as the Alliance Mining Company with Abraham Hanauer as President and Nicholas Treweek as Vice President. It should come as no surprise that they appointed banker William McCormick to the Board of Directors. Another Director, John Daly, was well aware of the mineral possibilities in Empire Canyon, since he was constructing the nearby Anchor drain tunnel.
These wise men realized the only way to mine the wet Sampson Mine economically was to dig another drain tunnel 800' below the Hanauer Alliance Tunnel. They realized the Sampson was even richer at greater depths, but the deeper the mine extended, the worse the water problem became. On May 21, 1889, John Judge was awarded the contract to dig the 4,576' Alliance Tunnel which he completed in 14 months.
John Judge had worked for John Daly as foreman of the Daly mine. During construction, rich ore was encountered and by 1892 the Alliance was shipping quantities of ore. Litigation soon arose between the Alliance and its neighbor, the Silver King in Woodside Gulch. The suit was ultimately resolved in 1889 when the Alliance was purchased by the Silver King for $65,000.
For many years, the Alliance was a reliable source of city water. For the water, the city paid the Alliance $125 per month.