Installment #9 of our Trackside Series will again be of a historical nature however, like the previous article, will deviate from being purely railroad oriented. The idea for the subject of this installment stems from the fact that a fellow in Southern California is currently researching material for a book that he is writing about the operations of the U.S. Army’s Spruce Production Division during World War I. As a result of my interest in the subject, we’ve shared much information and it’s renewed my own research into this facet of Lincoln County’s railroad history.
The Army’s operations in this county resulted in the construction of three separate railroads in close proximity to Newport and Toledo. The Toledo & Siletz RR. ran north from Toledo, into the area along Wessel Creek and was an extension of a railroad already in existence at the time. At the outbreak of WWI it was being used by J.B. Miller to supply logs to the Bade Lumber Co. sawmill in Toledo.
In addition to this line, two completely new railroads were built. The Yaquina Northern RR. began at a connection with the end of Southern Pacific’s line at Yaquina and extended northward through Newport to Otter Rock. The Alsea Southern RR. was constructed from South Beach, southward along the coastline, through Waldport, to a point two miles north of Yachats. The subject of this article, the sawmill in Otter Rock, was associated with the construction of the Yaquina Northern RR.
Benjamin F. Jones was a prominent citizen from this area, having arrived in Toledo in 1870 with his mother, his sister and most of his brothers. He had an extensive public life, being appointed the newly formed Lincoln County’s first County Clerk, serving as mayor of Toledo and being elected to the Oregon House of Representatives. He also became involved in numerous business ventures around Toledo and Newport, including becoming a real estate developer and being interested in the lumber industry.
In 1907 he purchased much of the land that makes up today’s Otter Rock and platted the townsite. In 1908 the steamer Minnie Kelton was wrecked and much of the lumber she carried washed ashore at Otter Rock. Taking advantage of the situation, Jones used the lumber to build several cottages and a hotel nearby. By 1912 most of the lumber had been used and Jones, along with several other investors, decided to build a small sawmill in Otter Rock, near the mouth of Dope Creek. He had been involved with a mill in Toledo for several years so the sawmilling business was not new to him.
The main sawmill building was 40 x 80 ft. and an attached lean-to that measured 20 x 20 ft. was used as the boiler room. The boiler was 5 ft. in diameter, had a length of 18 ft. and put out 90 horsepower. This boiler had arrived in Newport and required a twelve-horse team to transport it up the beach to the millsite in Otter Rock. The log carriage had been built by the Albany Iron Works and the mill’s daily capacity was around 20,000 Bd.Ft.
For the next several years the sawmill produced lumber that was used around the local area, mostly by people who had decided to build houses in Otter Rock. As with most small mills of the period, it operated on and off, running only when there was a need for lumber by someone nearby. However, this all changed during the summer of 1918.
It was during that time that the Army had decided to build a railroad northward from Yaquina in order to tap the large stand of Sitka spruce that grew along the coastline. The country was at war and spruce lumber was being used in the construction of the much needed “aeroplane” being used in combat for the first time. Most of the dimension lumber that was needed in the construction of the Yaquina Northern RR was coming from the mills in Toledo but in order to expedite the building of the railroad, a source for the lumber needed to be found closer to the site. The sawmill in Otter Rock was deemed perfect for the needs of the Army and for its contractor that was building the line, the Warren Spruce Co.
As a result the Army entered into an agreement with Jones and decided to purchase his mill. A bill-of-sale was drawn up, signed on September 7, 1918 in which the Warren Spruce Co. purchased a one-half interest in the sawmill for the sum of $2500. This document states that the sawmill was located in Lot 1, Sec.32, T.9S., R.11W. An earlier item in the Yaquina Bay News of July 11, 1918 stated that “the mill property has an oceanfront of 450 ft. on the beach just north of the Punch Bowl” and that a camp was to be located “in the timber on a flat on Dope Creek.” This camp was designated as Camp 7-I by the Army and was used to house the soldiers that worked in the mill.
The mill was used to produce much of the dimension lumber that was needed along the northern end of the railroad. Included in this were the railroad ties, the large bridge timbers and much of the bracing needed on the numerous trestles that the line required. A map dated October 1918 that shows the location of the camps along the line, also indicates that a short spur was to be built from the mainline of the Yaquina Northern RR., westward towards the mill site but it was never completed.
When the war ended on November 11, 1918 the Army’s need for the railroad and their mill at Otter Rock quickly disappeared. As a result, along with the rest of their holdings in Lincoln County, the properties were put up for sale. The sawmill in Otter Rock, valued at $10,000 at the time, was included with the Yaquina Northern RR. in the sale packet that was produced by the Army for review by prospective buyers.
In November1920, Fred Douty, president and general manager of the Multnomah Lumber & Box Co. of Portland, submitted a bid for the purchase of the railroad and sawmill. After taking several months to review the bid, it was finalized on August 12, 1921 whereas Douty paid $400,000 for the properties. The Yaquina Bay News printed an article in the January 21, 1922 issue that stated “they have announced that they will commence operations in February 1922. They will enlarge the Otter Rock mill and put in a number of camps along the line of the railroad.”
It’s at this point in time that knowledge of the sawmill drops off. No further mention of the facility has been found in the local newspapers of the time nor has anything been uncovered in other publications. The railroad itself was sold by Douty in 1929, to the Hutchinson Co., owned by Tom Hutchinson and continued to operate until he abandoned it in 1936. However, no mention has been found as to how long the mill existed or whether it was acquired by Hutchinson.
Written by Lloyd Palmer
January 25, 2005