Gold was first discovered in 1858. John Fallon made the first claim in Marshal Basin above Telluride in 1875 and early settlement of Telluride followed. The town itself was founded in 1878. The town was named after the chemical element tellurium, which was never actually found in the mountains of Telluride. Tellurium is a metalloid element sometimes associated with deposits of gold and silver. Some say it originated from the castaway call "To-Hell-You-Ride" shouted by loved ones who knew of the town's boisterousness. Either way, folks were attracted to the young town full of promise and opportunity.
On the eastern side of town, or the falls side, Bridal Veil Falls and the Generator House which sits at the top of the falls overlook the Victorian section of town. The power plant house is owned by Eric Jacobson, who restored the house and the generator inside, which now provides about 25 percent of Telluride with its electricity. The house was originally used to power the Smuggler-Union Mine and requires an aerial tramway for Jacobson and his family to get home. It is the second-oldest operating AC generator in the United States.
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