End of the line for the Skunk Train?

friscobob Sep 3, 2003

  1. friscobob

    friscobob Staff Member

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    From the Altamont Press website, some sad news:

    End of line for Skunk Train:
    Historic railroad that brings big tourist dollars to North Coast runs into serious money woes

    A long, mournful whistle echoed over the marsh along Pudding Creek as the celebrated Skunk Train entered the first tunnel on its long, winding route out of Fort Bragg, California and through the redwoods.

    "I've been workin' on the railroad, all my live-long days," sang Greg Schindel, the Train Singer, his banjo jangling and his 100 or so passengers joining in.

    It was an oddly poignant moment for Schindel, who has been working on the railroad for 15 years. Come Tuesday, the historic 118-year-old train line may be gone forever.

    The California Western Railroad, saddled with $2.6 million in debt, exacerbated by inflated insurance costs, went bankrupt this year after a long, slow decline.

    Scenic railroads across the country are facing similar problems as tourism declines in the face of a faltering economy. Meanwhile, insurance companies have in the past year tripled their rates for excursion trains.

    Thanks to loans from the city of Fort Bragg, and a bank, the Skunk Train kept running through the busy summer. But Mike Meyer, a Santa Rosa attorney named the railroad's Chapter 11 trustee, said the railroad cannot afford to run past Labor Day, when tourism typically slows.

    Unless someone with deep pockets is found to buy the railroad, Meyer said, its whistle may never blow again. At stake is not only Schindel's and other workers' jobs, but an international icon and a primary source of tourist dollars for the region.

    "If I had the money, I'd buy it," Schindel said. "It's too nice an entity to lose. I've met people from all over the world on this train, and many of them have taught me train songs. Somebody has got to have the money to save it. "

    The soaring cost of insurance forced the Ohio Central Railroad, in Sugar Creek, to shut down its tourist trains through Amish country in May. That same month, the Corydon Scenic Railroad, in Indiana, stopped its tourist passenger operation for the same reason. In June, Soo Line 2719, a scenic steam train in Chippewa Falls, Wisconsin, also shut down because of escalating insurance costs.

    Dan Ranger, the executive director of the New Mexico-based Tourist Railroad Association, said the problem was caused by insurance companies that invested heavily in the stock market and, like everyone else, lost their shirts when the market collapsed.

    Consumers are now being forced to pick up the slack, he said. In fact, insurance rates have climbed dramatically in many areas, including for monuments like the Golden Gate Bridge, which adjusters fear could be a target for terrorism.

    But vintage railroads are marked because they usually carry passengers in outdated coaches pulled by archaic locomotives riding old tracks, Ranger said.

    "I know of one operator that experienced a 300 percent increase in his insurance premium and his company has had no claims for the past 15 years," Ranger said. "This is all impacting the industry. The Cal Western, while it is well known and has been around for a long time, also got nailed."

    The beloved Cal Western, better known as the Skunk, was already fighting against the tide when its policy was dropped by its insurance company in August.

    The line was built in 1885 to haul lumber along the winding Noyo River canyon. When the connection to Willits was completed in 1911, the railroad wound 40 miles through vast stands of redwood that were used to build the cities of the West.

    The line, which at one point had 115 bridges and trestles, also connected to the Northwestern Pacific Railroad in Willits, allowing lumber, freight and passengers from Fort Bragg to be carried all the way to Sausalito.

    The name "Skunk Train" was apparently first used when the California Western purchased single-car rail buses. Railroad workers said the gas fumes smelled like a skunk. The name stuck.

    By 1961, the Skunk Train, which now uses diesel locomotives, carried 44,359 people. It grew even more popular when a 1924 Mikado-type steam engine was brought back into service in 1966.

    The old steam engine was refurbished this year and is being used on weekends after being out of service for two years.

    The countryside that the train chugs through is lush with moss and ferns. Waterfalls dot the river. Overgrown mining camps pepper the route, with rotting old barns, shacks and rusted equipment.

    Phil Ross, who has worked as an engineer, conductor and brakeman for the past seven years, said he once had to stop for a mountain lion. He said he has seen bears and other wildlife in the woods, and foxes regularly run on the tracks in front of the trains.

    "It's a great job. Where else could you come out here every day?" Ross said, pointing out a shimmering pool below the trestle surrounded by granite cliffs and giant trees. "I sometimes wish I could stop the train and go fishing, but I can't."

    By 1997, the railroad was as popular as ever, with ridership reaching 56, 036. But things have gone downhill ever since. In 2002, only 41,110 rode the train. The consortium of local investors that owned the railroad had lost money five years in a row and their debt was listed at $2,614,983.74 when they filed for Chapter 11 protection Dec. 3, 2002.

    The Skunk Train costs $35 for an adult round-trip ticket during the week and $40 on weekends. It still picks up and carries mail to cabin dwellers in the forest, making it the last train in the United States that still has a mail run.

    Meyer, the Chapter 11 trustee, said three companies have expressed interest, but the system would need $500,000 in upgrades.

    Most residents of this seaside town, where Paul Bunyan remains a celebrated figure, cannot even fathom not having their beloved Skunk. - Peter Fimrite, The San Francisco Chronicle, courtesy Larry W. Grant
     
  2. BoxcabE50

    BoxcabE50 HOn30 & N Scales Staff Member TrainBoard Supporter

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    I fear that this time there will be no redemption.

    What ever happened to the supposed reopening of the NWP? Wasn't there some work "in progress" toward that event? Track rehabilitation ongoing?

    :(

    Boxcab E50
     
  3. WPZephyrFan

    WPZephyrFan TrainBoard Member

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    Being that I live in Santa Rosa, through which the NWP tracks pass, I've been waiting for the sound of a horn for several years now.
    Every so often, an article about what is going on shows up in the local paper. Most if not all of the crossing gate arms have been removed. The tracks don't look to be in the best shape. There are ties that need to be replaced and weeds that need to be cut all along the right of way.
    Things were certainly better when the California Northern was in town. I'm curious if the NWP can get back all of the business that was lost.
     
  4. friscobob

    friscobob Staff Member

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    Here's an update from a newpaper in Mendocino, CA, as posted in Yahoo's Shortlines group:

    Mendocino (CA) Beacon:

    Mendocino Beacon article on Skunk Train

    Skunk buyer comes forward

    The Fort Bragg, CA City Council heard an update on the current status of the
    California Western Railroad at their regular meeting Monday. According to
    Mayor Jere Melo, railroad officials wanted to stress that the railroad had
    every intention of opening in the spring, even if it was through a
    contracted company. Melo also reported that after writing a letter
    requesting conferences with the mayor and community of Willits, that they
    were already meeting for discussions.

    When asked by Council member Lindy Peters if the city had been repaid $75,000
    owed by CWR, Melo said no, but he was told by the trustee that it would be
    repaid.

    City Attorney Adam Lindgren noted that since the city made the loan to the
    railroad after the start of its bankruptcy proceedings, it would have
    superiority over CWR's other creditors.

    A venture capital group from Grants Pass, OR has made an offer to purchase
    the railway on behalf of its subsidiary, Pacific Cascade Railway. Fort
    Benton Funding made the offer Aug. 20 to bankruptcy Trustee Mike Meyer, and
    a management and operational overview summary was submitted by Fort Benton's
    attorney, Michael Bird. Although the company never released a dollar amount
    with its offer, Mayor Melo gave council members a figure of $1.3 million.

    Fort Benton Funding had been looking into the possibility of such a venture
    since March of 2003, and has held many meetings with citizens of Fort Bragg
    and Willits. A decision was made to move ahead after an April meeting,
    attended by several prominent railroad shareholders.

    "Initial feedback from the trustee is that the undisclosed offer is worthy
    of consideration," said a report from Fort Benton Funding. "Fort Benton had
    outlined a strong management team, represents significant funding asset
    reserves, and notes a serious desire to serve the broadest public interest."

    Fort Benton spokesperson Bill Korpa said, "We're not interested in scrapping
    out the railroad, or further limiting its operation. We'd like to see the
    California Western returned to its original operational mandate and fully
    utilize its track system."

    According to reports, Fort Benton had also offered to maintain mail delivery
    service to residents along the line, following the recent, seasonal closure.
    According to Korpa, the trustee has requested further information from Fort
    Benton, and they are working to provide it as soon as possible.

    Lindgren told council members that their leadership in making the loan to
    the train had been positively influential to other city councils in their
    decision-making processes.

    Melo said that city staff and its attorneys would continue to follow the
    status of the railroad, to keep the city and the community informed.
     
  5. wig-wag-trains.com

    wig-wag-trains.com Advertiser

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    Where does this stand? Any one know?
     
  6. John Barnhill

    John Barnhill TrainBoard Member

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    Wig-Wag,
    This is a very old thread. The news after all the above is that Sierra Railroad bought the California Western. It is up and running just fine. Sierra is planning on restoring the Willits Depot and also has a chance of becoming the operator of the old NWP. See the other threads on the NWP and the Willits, Depot in the Shortlines Class III forum.
     

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