Mark,
I recall similar photos that are in "Narrow Gauge to Central & Silver Plume"-CRRM RailAnnual, but the shots were of C&S oil-burner #70 hauling the #71 (dead in train) and combine #20 to Central City for display. The 71 and combine had been cosmetically "dolled up" as you said. If you know of any shots of the #60 being moved, I would be very interested to know were they might be.
There are quite a few stories of how #60 came to be in Idaho Springs. Another that I have heard is that the #60 and coach #70 were meant to be donated to the town of Silver Plume, and on the way up the canyon, the small train stopped in Idaho Springs, where the residents of Idaho Springs proceeded to get the traincrew quite drunk, so they could not proceed to Silver Plume with the train. Therefore, Idaho Springs got a display locomotive and coach.
Does anyone know the date of the donation or move of the #60 and coach to Idaho Springs? I know that the #71 was transferred to Central City in 1941. The date could be the same for the #60, because the rails to Idaho Springs were still in place in 1941 (they were also torn up the same year). If the #60 was transferred to Idaho Springs later than 1939, it would disprove the Silver Plume version, because the rails from Idaho Springs to Silver Plume were torn up in 1939.
Shane