Robert "Bluejacket" Watson followed the Boone River north from its mouth until he came to Section 14, Webster Township, where the river takes a sharp horseshoe bend. Carefully measuring, he found that the river fell 6 1/2 feet as it went around that bend, and the width between the upper and lower curves measured only about 450 feet. He decided that if he could tunnel through the hill, he could then build a dam at the upper end another 4 1/2 feet high and put in a gate to give him an 11-foot drop. This would be sufficient to turn a mill wheel.

Exactly when he came to the area is a subject of dispute. Effie Kantor, MacKinlay Kantor's mother, wrote about the mills along the Boone River for J. W. Lee in his 1912 Hamilton County history book. She states that Watson built the mill in the 1850's. Her sources were her father, Adam McKinlay, who was the miller at Bone's Mill, and also her grandfather, Joseph Bone, who owned what is now called Bell's Mill. But the fact that Watson's nickname was "Bluejacket" would indicate that he served in the Civil War. He was a member of the 8^th Regiment of the Iowa Infantry, but he is not listed as joining the Union forces from Hamilton County. A check of courthouse records revealed that Robert Watson purchased 50 acres from three different owners in 1866, and the mill was put into operation starting in 1867. To the writer, it seems highly unlikely that Watson would have dug a tunnel on property that was not owned by him.

In any event, Watson's feat was remarkable. With one assistant, and using a pocket compass and a level he dug through 400 feet of hillside. He dug halfway from the south end and halfway from the north. He dug and placed the dirt on a cart which was pulled from the tunnel by the assistant. The ceiling of the tunnel was lined with 3-inch planks of oak and walnut. The sides were shored up with 3 X 8 inch posts. The finished dimensions of the tunnel were 3 ft. high and 2 ft. 9 in. wide. The floor of the tunnel was not lined. He then constructed the dam and gates through which he controlled the flow of water to the tunnel.

Watson operated the mill for one year as a saw mill to which he added corn grinding. Then sold it to Lyman Perry for $6,000 on January 17, 1867. The dam property was excluded from the sale. Perry operated the mill for one year, when he was joined by his brother, Gilbert. They added wheat burrs to make flour. In the first advertisement appearing in the Hamilton Freeman on Nov. 10, 1869, it was announced "Tunnel Mill in Operation." It further stated that "the mill was located nine miles south of Webster City and would do all kinds of grinding on short notice. A stock of flour was offered for sale by the pound or ton." Lyman sold out to his brother, Gilbert, on October 24, 1870.

In 1869 Watson moved further upstream and constructed another mill, named Turbine Mill, on the river about 5 miles south of Webster City. This mill was sold to five different owners until it was finally purchased by Lyman Perry in 1878. This mill was not a financial success and was torn down by A. D. Arthur.

Lyman Perry continued operating mills along the Boone. He purchased what we now call Bell's Mill from Joseph Bone. This mill was another turbine mill with two turbines. When the mill finally ceased operations, one of the wheels was displayed in Bell's Mill Park and the other was moved to Bonebright Park.

Some farmers paid for the grinding, but most paid the Perrys with what was called the "Miller's Toll." In the beginning the millers generally kept one-eighth of the corn and wheat as their toll. Later, in the latter 1880's it was changed to one-seventh. An attempt at Bone's Mill to change it to one-sixth met with resistance and the local farmers formed a strike until it reverted to one-seventh. This meant that the miller had wheat and cornmeal to sell. Perry opened a small store in the mill, where local people could purchase flour, salt, soda, and other staple goods. An article in the Hamilton Freeman in 1883 reports, "Tunnel store has a big trade now days, as it rightly deserves to have, for it has a good looking clerk, a big proprietor, and gives good bargains." Lyman Perry built a large house east of the mill, and Gilbert's family moved in with them. The Perry home accommodated many farmers overnight while they waited for the grinding of their grain. In 1884, Gilbert replaced the burr mill wheels with a roller, which produced a finer grade of flour.

The Perry home had advanced features for its time. Lyman Perry tapped into a spring and piped the water into the house, so his wife had running water all of the time. He also constructed cob chutes into the kitchen. An outside bin was filled with cobs, and Mrs. Perry opened a small gate in the wall to catch cobs for her stove.

The Indians lived in the woods along the river and came to the mill to sell their goods to the waiting farmers. The farmers would get their grinding done, get supplies from the store, or get their mail. Nina Bishop related that her mother told her of the Indians boiling sap to produce maple syrup to sell. Her mother told her that sometimes the Indians cooked their game in the sap, hanging it by leather straps to a stick across the kettle. Fish caught by the Indians were offered for sale. Local farmers also brought in bags of coal which were sold at the store. There were many coal mines along the banks of the river nearby.

In April 1889, the tunnel collapsed, shutting down operation of the mill until repairs could be made. The entire tunnel was relined, this time with a floor as well as a ceiling.

It was customary for a rowboat to be left on the river bank so people could cross as they did their business at the mill. School children also rowed across from the mill to attend school at the Harmony Center School, which was about a half-mile south of the mill. This school building has been moved to Bonebright Park in Webster City.

On Nov. 4, 1889, the mill was destroyed by fire. Perry had been grinding buckwheat all day and a hot box on the mill wheel bearing caused them to shut down. The men worked to repair the bearing, which took until nearly midnight. Satisfied that everything was repaired, the men returned to the Perry home to sleep. Early in the morning, Solomon Dick, who lived south of the mill, discovered light coming from the mill area. He hurried to the Perry home to alert the family that the mill was on fire. It was too late for the men to put the fire out. The entire mill and a very large stock of grain, flour, and other goods were completely destroyed.

The post office was moved to the John N. Williams home, which was located just west of the former mill. He was named postmaster on May 10, 1893. The name of the post office remained Tunnel. Williams served until Oct. 31, 1897, when he was succeeded by Hezekiah Fisher. The Tunnel Post Office was closed on Oct. 31, 1899, and all mail was then handled from the Homer Post Office.

Merl Williams, grandson of John N. Williams, related that as a child he and other children played in the abandoned tunnel. Fearful that someone would be hurt, his father, Carl, dynamited the tunnel at both ends. Today the major portion of the tunnel remains buried as a silent reminder of the mill's history.

The Lon Crosby family now lives at the mill site. Their home is near the location of the original Perry house, which has now been torn down.