When Red River Lumber Company established its company town in Lassen County many were thankful for the prosperity it brought with it, especially the Fernley & Lassen Railroad. However, the honeymoon would not last long. Red River would exert its influence over so many aspects of life. Certain member’s of Susanville’s business community had a code name for the company: the Red Octopus. After all, in 1920, Red River purchased the town’s local power company, Lassen Electric. They advertised their Big Store specials in the Susanville newspapers, hoping to lure away customers. In 1922, when Red River purchased the Milwood Tract east of the city limits, they were able to block any annexation effort by the city until 1947, which by then Red River was going through a dissolution process.