By 1930, the nation’s lumber market had suffered big time not only with the economy teetering but supply flooded the market where there was no demand. In the Lassen region, this was a new experience as everyone had been accustomed to the good times. The big three mills had not only scaled back their labor force, but curtailed production. This fueled the rumor mill, and in December 1930, the rumor on the street that the Red River Lumber Company was to permanently shut down its mill. Company officials had to put out the word, that this was utter non-sense. After all, in December there was the usual slow down with the end of logging season, and soon it would be time for annual maintenance of the mill.
On the other, Lassen Lumber & Box Company was in dire financial straits. They closed down Camp Lasco, their logging camp for good and would rely upon logging contractors for their future needs. The company also went through major refinance of all the other departments.