Re: GAP make money with PALCO without NWP? Some history
Author: Mike Pechner
Date: 06-18-2008 - 17:59
First, don't be so hard on yourself, Little Lake Listener, There are bigger fish to fry! First point, ever since Maxxum took over PALCO, they have been dumping Redwood on the market like drunken sailors to pay off the debt. Point two, my cousins husband is a owner/operator in Laytonville, right in the heart of the Humbolt-Mendocino Lumber area. He says his business first started to go way up after the Island Tunnel Fire in 1977. Prior to that, the NWP with parent SP operated a HOT lumber train from Eureka to eastern Markets through East St. Louis, Ill. back in the early and mid 70's. It promised and delivered 5th morning delivery through the East St. Louis gateway. The rates were favorable and trucks only did the short haul which didn't pay. Just a sidelight, the train left Eureka around 6 p.m. arrived Willits at 12 a.m. and arrived Schelville and the SP connection at 6 a.m. 12 hours running time from Eureka. Everything switched to trucks during the closure of the North End because of the Fire. When the tunnel reopened in early 1979, the mill and lumber companies held the NWP hostage by staying with trucks and essentially saying that if they didn't match the truckers rate, then they would not ship by rail. Of course the high interest rates and recession didn't help and the floods of 1981-1983 brought major disruptions to the NWP and the business never recovered.