After a few years after Fruit Growers Supply Company took over a lumber mill at Hilt, it had turned into a wise investment for the citrus growers to meet the demands for wooden boxes to ship citrus. In 1919, after extensive research Fruit Growers decided to embark on a second mill at Susanville.
To finance the purchase of timberland as well as the cost associated to build a sawmill was not a cheap proposition. To purchase the Collins Tract of timber would cost $1,102,493 and to build a mill and related facilities was priced at $2,331.249. To raise the capitol its was deemed to sell $4 million in bonds.
One half the bonds were sold privately and the other half publicly. The private issue was immediately oversubscribed. Sold in denominations of $500 or $1,000, the bonds yielded 6 1/12 per cent interest payable semi-annually.
To pay for the bonds the growers agreed to assess themselves two cents per box. In addition to the assessment, for every 1,000 board feet of lumber sold, four dollars was budgeted to pay off the bonds generating $300,000 annually. In 1934, Fruit Growers paid off the bonds in record time and the Susanville operation was debt free.