
In 1919, Fruit Growers Supply Company purchased the Collins Tract west of Eagle Lake the contained an estimated a billion board feet of timber. Lassen National Forest officials suggested a mill site on Pine Creek near Eagle. Lake. Fruit Growers examined two sites, in the region what is known as Spalding Tract. They were informed that Eagle Lake had dropped from 3 to 4 feet during 1917-18. There was also the uncertainty where Leon Bly had obtained water rights to the lake for irrigation in the Honey Lake Valley. It was suggested that Fruit Growers place a dam at the Pine Creek estuary for a millpond and in the worst case scenario drill wells for a water supply. After a short debate Fruit Growers decided to locate the sawmill at Susanville.
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