On June 11, 1879, General Palmer won acourt decision that overturned the Santa Fe's lease of the D&RG. Palmer telegraphed James Massy to seize the "Mountaineer", which was in the El Moro yard (guarded by armed Santa Fe men), and bring a force of Rio Grande men north in order to recapture the D&RG's depots and facilities.
Under the leadership of Alexander C. Hunt, the train of flats picked-up hired gunmen and recaptured the stations and yards. A gun battle took place at the Pueblo Roundhouse, which was being held by AT&SF forces under former Dodge City Sheriff "Bat" Masterson. No one was killed, although several Santa Fe men guarding the Pueblo Roundhouse were injured.
By the end of the day, the only Rio Grande depot still controlled by the Santa Fe was Canon City at the mouth of the Royal Gorge.
Nat Holt's "Denver & Rio Grande" (Paramont) movie was loosely (very loosely) based on this event.The film used D&RGW #268 as well as 319 and 345, which were wrecked in a scene filmed near Rockwood.