Actually, RGS (2nd) #1 was *retired* in 1913 but wasn't dismantled until sometime in the 1920's. There were some questions about exctly who owned her, so she sat around Ridgeway until at least 1924. BTW, she may never have actually been on the RGS as #35. The Class 56 engines purchased from RGW had been beaten to death in the last year or so of D&RGW Ry/RGW 3' operations (why spend money on the stuff you're about to quit using) and were sent to Burnham for rebuilding by D&RG. #35 was still there when the Silver Panic hit. This is why the Class 56's were used more than the 60's in the mid to late 1890's on RGS, they were in better shape after the shopping. Once they wre worn out (again) RGS dumped them.
Most of the Class 56 engines still on the D&RG were indeed scrapped in 1908. About a dozen lasted until 1916-17(many rebuilt to 0-8-0) when the 1911 boiler law took full effect, then were scrapped. Also dying in 1916-17 were the remaining Class 45 1/2 4-6-0's (RGS 22, 23 & D&RG 160-164) of 1882 vintage. Originally #'s 158-165, RGS engines had gone to D&RGW Ry in 1886 (D&RG 158, 159 & 165) then to RGS 22-24, 24 sold in 1900. BTW, D&RG's first standard Gauge passenger engines ( Class 46, #'s 155-157, reno to 503-505 in 1887) were basically identical to Class 45 1/2 but built to std ga. (gone by 1906.)
Several of the Class 56 engines hung on until somewhere in the 1920's. In addition to the RGS (2nd) #1 and the SN and SV engines noted above there was one on NML Co at Delores (orig D&RG #46) that *may* have been the last survivor when she was scrapped in '28-'29.
Basically the 1911 law wiped out Classes 45 1/2, 56 RGS 1st 25 (nee Denver Circle, asigned class 47) and several Class 60's on the RGS. D&RG & RGS Class 70 (engines later in Class C-19), Class 47 & all remaining D&RG (along with some of the RGS) Class 60 were re-boilered by 1917 and survived for a while. (AFAIK D&RG/RGS class 70's that woulnd up in Class C-17 were had steel boilers already and were not rebuilt at this time, probably why the D&RG Class C-17 all bit the dust in the 1930's before the older C-19's)
hank
ps For the C&S fans out there, I suspect the 1911 law played a part (along with abandonment of lines Garos-Baldwin (except lines transferred to D&RG and the Hancock/romely branch) in 1910) in the 1914-1921 scrapping/sale of C&S classes B-3-A(#'s11-13), B-4-A(#30) & B-4-B(#37-56). Not sure how MILW kept operating their #4 (ex-C&S #55) on the Cascade Branch (Iowa) until the late 1920's or early 1930's if it did have an outlaw boiler tho'.