1964-1992 The nature of McCloud railroading had changed. McCloud was no longer a company town as US Plywood began selling off company assets like housing and stores. Expansion stopped, as the need to extend rail lines into the pines was no longer necessary. Major shippers on the line remained The McCloud Mill (now owned by US Plywood) The Pondosa Mill and the Scott Mill in Burney. During this period the Railroads love affair with Baldwin Locomotive works was ended and three SD-38s were bought From GE Electro Motive Division. It was thought that the 6 axel arrangement of the SD’s would spread the weight of these big locomotives out over the rail. This was not always the case and improvements hade to be made. In 1977 Itel purchased the railroad from Champion and operated it for many years. In this time the McCloud mill was shut down severely affecting the railroad and town. A smaller operation moved into the mill and processed cedar for shipment. The adding of a paper warehouse – Sprint Reload and some work for PG&E rounded out the rest of the trade.
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