Ok, here's what I know. Crystal was a mining town about 8 miles from Marble CO. which was served by the Crystal River RR (there, now we've got a narrow gauge railroad connection). The structure shown has been described as one of the most frequently photographed structures in Colorado (and for good reason IMHO). Anyway, it apparrently had a horizontal water wheel which powered an air compressor for use in the mines, and may have also provided power to a stamp mill located next to it.
My *GUESS* is that the laddery sort of structure was actually the water flume, and that the wheel itself was located at the bottom of the flume. There seems to be a single rod just to the right of the "flume" up to the small extension of the building which connected the waterwheel with the compressor. There was also a flume to the left of the building which I believe fed the waterwheel, although why it is extended out over the river, I can't even guess.
Two more photos from the
Denver Public Library Western History Collection.
And a more contemporary image from
Ghost Town Gallery.
No matter what else, it is a pretty cool structure.
Don