The Town of Chattanooga was founded in March 1883. The town served as an early supply depot for goods to and from the red mountain district prior to the arrival of the silverton Railroad. At one time there were over 75 buildings and a population of 300 people. chattanooga was the site of the famous loop on the silverton railroad. The horseshoe shaped loop made of a 200 degree curve climbed approximately 500 feet in only 1 1/4 miles. Today, highway 550 follows the route of the loop closely as it climbs to the top of red mountain Pass. a snowslide in 1888 Destroyed part of the town and a second snow slide in 1892 destory more of the town and it Quickly Disappeared.