The Setback:
The Company Moves Out and Property is Privatized

In 1965, U.S. Plywood transferred town properties to John W. Galbreath and Co. whose job was to help company towns make the transition to privatization. The houses were then sold to the people living in them. The McCloud Community Services District was formed and the utilities, such as water, sewer and street lighting, were turned over to the district. They also assumed responsibilities for fire and police protection, library services and some road maintenance. U.S. Plywood promised that there would be years of employment and a good economic future for the town as there were 50 years of timber to be cut. But, after privatization the economy of the town began to deteriorate due to the diminishing timber industry. U.S. Plywood, who had since merged with Champion International Corp., tried hard to keep going, but the days of the big timber were gone and they were unable to change all their operations and equipment over to meet the requirements of the new lumber industry that was developing: an industry based on second growth trees and new timber management criterion and practices.

 Industry in the 70's and 80's:
The Timber Crisis and the Birth of the Modern Timber Industry

Thirteen years later, in 1979, Champion International closed the mill for good because the timber industry had fallen upon hard times. They were unable to retool and adapt their WWI era machinery quickly enough to survive the changes in the timber industry. The McCloud River Railroad whose well-being is so closely tied to the timber industry hit its low point in 1985/86 when they hauled under 1000 carloads per year. In 1987 it started to recuperate and, now under new ownership, is up to 3000 carloads per year.

These were dark days for the town of McCloud which had always depended upon the lumber industry as their major economic factor. Some 300 lumber workers and their families were now without an income. In July of 1980 the Siskiyou County Board of Supervisors declared the town an economic disaster area. Despite its woes, McCloud is a community made up of fighters, not quitters, and this beautiful small town with its dazzling view of jewel-like Mt. Shasta, majestic forests and rushing mountain streams is well worth fighting for.

In 1980, P&M Cedar Products, Inc. of Stockton, California bought the McCloud mill and reopened the lumber facility. Founded in 1969 as a producer of pencil stock (used to meet 60% of the worlds pencil needs) P&M Cedar Products has evolved into a progressive multi-dimensional wood-products company with diversified, worldwide interests. The P&M McCloud mill is a state-of-the-art fully computerized operation which supplies premium commercial lumber products for custom home builders, and appearance- grade consumer products sold to do-it-yourselfers in home center stores throughout the nation. Today, the McCloud operation employs 150 to 200 individuals and continually strives to obtain the maximum yield from each log processed to assure continued availability of trees. The lands once held by Champion International are now owned by the John Hancock Mutual Life Insurance Company and are managed by Campbell Timberland Management. Land management companies, like Campbell, see their role as one of stewardship over the forests making sure that they survive in a healthy diverse way. Today's timber industry is based on a sustained yield and the average forester spends four years in college to attain a bachelors of science degree. There is nothing done on timber lands that is not carefully planned with an eye to the future. Recently a logging operation on Signal Butte was conducted by helicopter even though it is probably two and a half times more expensive than conventional tractor logging. Campbell selected to use this method due to its lower impact on the environment and to minimize any visual effect to the highly visible Signal Butte. Campbell Timberland Management Co. also works with the government agencies and local community, including school children on special projects, such as the Soda Springs Trail.