Potlatch Lumber Company records, 1901-1979

The Potlatch Lumber Company, Potlatch, Idaho, was incorporated in 1903 under the laws of the state of Maine, with Charles Weyerhaeuser named as its first president. For timber the company relied on the holdings of the Northland Pine and the Wisconsin Log and Lumber Companies. Soon it acquired mills and timber of Codd Lumber Company of Colfax, Washington, and Palouse River Lumber Company of Palouse, Washington. The Codd mill did not operate and the Palouse mill served only to cut lumber to build the Potlatch town and plant.

In 1904 the building of the largest white pine mill in the world began. It was steam powered and driven by belts and shafts. W. A. Wilkinson of Minnesota was in charge of the design, plans, and construction. The company believed a company town was a necessary investment and a proper step in labor relations and community improvement. When the mill began operating in the fall of 1906 the company had finished 128 houses, 2 boarding houses, 2 schools, a hotel, 2 churches, a store, bank, post office, and an opera house. Saloons were barred and gambling was not allowed in the bunkhouses. In 1952 the town of Potlatch was incorporated and houses were sold to those who wanted to purchase them; the last property was sold in 1982.

Under the general managership of William Deary the mill began operation on September 11, 1906. Assisting him in the management of the mill were Allison W. Laird, assistant manager, and timber cruiser, William Helmer. According to the Palouse Republic, September 14, 1906, "The first log cut will be white pine and the lumber will be fashioned into a desk for assistant manager A. W. Laird."

In 1910 the company built a mill in Elk River which operated until 1930. They also supported their operations through the creation of other companies. In order to haul logs to the mill and lumber from the mill to an existing railroad at Palouse, the company built a 50 mile long railway, the Washington, Idaho, and Montana, which ran from Palouse to Purdue, Idaho. The Townsite Company and its commercial center, the Potlatch Mercantile Company, as well as Potlatch Brick Company, were located at Potlatch, Idaho. They also operated the Palouse Flour Mill in Palouse, Washington.

In 1930 the Weyerhaeuser conglomerate faced the possibility that, due to heavy taxation of privately owned timber land by the state, all of its North Idaho mills would go bankrupt. So, in 1931, they merged Potlatch Lumber Company, Edward Rutledge Timber Company, and Clearwater Timber Company to form Potlatch Forests, Inc., with headquarters in Lewiston. The mills were modernized, managerial talents pooled, and by the early 1940's the business was making a profit. The Potlatch mill was again modernized in 1962 and a new office building was completed in 1964.

The mill continued to operated until August 14, 1981 when, due to a depressed lumber market, it closed. It was thought that this closure, like several before it, was temporary, but on March 16, 1983, announcement of a permanent closure effective April 1 was announced. Shortly thereafter dismantling of the mill began.