Editor’s note: This is the sixth in a series of articles exploring the history of Spirit Lake and its environs as the community nears its centennial in August. Spirit Lake native Keith Spencer became interested in local history when he came across some old photographs while remodeling his home. He and his wife, Janette, researched the photos’ origins, began collecting old documents for posterity and now can’t seem to stop.

In 1905 the country between Rathdrum and Newport, Wash., (then called Old Town, Idaho) remained a veritable wilderness. True, there was the occasional homesteader, and folks from Spokane regularly endured a torturous journey to visit Spirit Lake and other lakes in the area. In short, the only transportation route through the area consisted of a narrow, rutted wagon road. It took two days to travel between Rathdrum and Newport, assuming that the path was not closed by snow or mud.

Frederick Blackwell and his deep-pockets Pennsylvania associates had just bought timber rights for more than 100,000 acres of virgin forest in the area (mostly around Spirit Lake) and he had a big problem – transportation. His primary goal was to do logging and lumbering, thereby creating towns and civilization. The transportation routes barely supported the mail run, but certainly not transportation of the materials and heavy equipment required for his newly completed plan for large-scale logging, sawmill-building and town-founding.

It didn’t take Frederick long to figure out that he needed to build another railroad, though it isn’t clear just how extensive he initially thought this railroad needed to be. In the same quiet unassuming way as accomplished for the Spokane-Coeur d’Alene Electric (The Interurban) he began buying right of way from Spokane Valley to Newport and beyond.

His efforts were a bit more difficult on this venture in that the proposed railroad had to be rerouted in several places and there was a lawsuit or two. Fortunately Blackwell was a fair man, who offered good prices for the right of way, and by 1907 he had secured the route. On March 27, 1907, Blackwell announced the incorporation of the Idaho and Washington Northern Railroad and his great adventure began. It was only then that the Spokane papers figured out the importance of what Blackwell really had in mind.

Even with the deep pockets, Blackwell knew that he had to get mills built and money coming in as soon as possible. As such, in a flash of brilliance, he approached D.C. Corbin, who had just completed construction of his Spokane International Railroad, whose mainline just happened to pass through Clagstone and within five or six miles of the proposed I&WN mainline just north of Spirit Lake. An arrangement with Corbin was quickly reached, and Blackwell had his shortcut to Spirit Lake. Legend has it that work on this spur started before the I&WN was actually chartered.

Railroad makes fast progress

The Blackwells disdained hiring real railroad contractors, partly because the Northwest railroad building boom made good contractors hard to find, but mostly because, by their nature, they figured that they could do a better job running the show themselves. As it turned out, they were correct. I&WN General Manager Russell F. Blackwell immediately set about hiring strong, able and enthusiastic workers to build the railroad and the race was on.

With his rapidly growing crew of Bulgarians, Italians, Greeks and others, it didn’t take long to lay rails to the I&WN junction (at what is now called Coleman). After a brief pause to get organized, the railroad-building really started in earnest. Blackwell pointed one Marion steam shovel south and another Marion north. The work crew was divided in half, with work progressing rapidly in each direction. During the height of construction, more than 1,500 workers were employed. The Blackwells paid fair wages, tried to make life as good as possible for the workers, and had the ability to inspire loyalty. In just a jiffy, or so it seemed, rails had been laid to the shores of Spirit Lake, which was to be the core of Frederick Blackwell’s empire.

Rails arrived in Spirit Lake at about the same time as other major developments got under way.

First, the newly formed Panhandle Lumber Co. brought in a temporary sawmill to cut ties for the railroad and timbers and other lumber for the real mill, the depot and the town. Turns out that this temporary mill was capable of cutting 30,000 board feet a day – not a shabby amount. It ended up producing nearly all the lumber used to build Spirit Lake.

Second, work on temporary housing for the workers was quickly started and even more quickly completed. These modest structures were located across the millpond near the mouth of Spirit Creek and were affectionately called “tarpaper shacks.” Several hundred families lived in this tidy settlement until the town was completed nearly a year later. After that, the riffraff moved in, causing problems in the community until these units collapsed a few years later. No trace remains of this community.

Third, construction of the elegant Spirit Lake depot began, clearing and grading of both the Panhandle mill site and the railroad yards started.

Finally, The Spirit Lake Land Co. (another Blackwell enterprise) was incorporated and the platting of the town site initiated.

In the meantime, rails continued to be rapidly laid toward both Newport and Rathdrum. Upon the arrival of I&WN rails in Newport on Oct. 24, 1907, the Newport Miner reported: “That the road will be of benefit to our city is the expectation of all … the date of the road’s entrance into our city, will be a notable day in the history of the town …”

Meanwhile track-laying crews raced south and by Nov. 2, 1907, all track had been laid between Newport and Grand Junction (second connection with the Spokane International) except the underpass of Northern Pacific tracks at Rathdrum. On Nov. 23, the entire mainline between Grand Junction and Newport was completed. On Nov. 25, the first regularly scheduled passenger train left Spirit Lake and arrived at Newport on time. Freight service started at the same time.

52 miles of track laid

The Blackwells had built and placed in operation 52 miles of railroad in less than eight months and at a cost of roughly $2 million. During its glory years, two passenger trains departed Spirit Lake each day covering the entire route. On Jan. 25, 1908, Blackwell formally presented his new railroad to the business community. A special train carried 200 important guests from Spokane to Newport and return with a luncheon stop and speeches at the brand new and rapidly growing Village of Spirit Lake. The I&WN was officially dubbed the Pend Oreille River Route, but the line soon became affectionately known as the “Blackwell Line.”

The Blackwells believed in doing things well As such, this railroad quickly became regarded as one of the finest small railroads in the country. Nothing in the Inland Empire could compare. Passenger trains ran the route at average speeds of 35 miles per hour, including stops. This was quite a feat in mostly hilly country.

The railroad’s rolling stock was equally impressive, with all equipment purchased new. Five Baldwin built “Ten wheelers” were purchased, intended for passenger service. Six Baldwin 2-8-0 Consolidation engines were purchased for heavy hauling, while two logging Shays and an Atlantic Type locomotive completed the engine inventory. The “Ten Wheelers” proved so versatile on this route that they ended up being used in every imaginable way.

A luxurious ride

The passenger cars were no less impressive as Blackwell ordered top-of-the line Pullman-built passenger cars. According to the April 3, 1908, edition of the Spirit Lake Herald, “The equipment of the road is of the highest standard. The passenger equipment … is the wonder and envy of the passenger officials of other roads.” Each car cost $17,000, at a time when the average car cost about $5,000. These cars were among the first to be lit electrically, with power supplied by generators attached to the axles. The full vestibule coaches could seat 88 passengers in luxurious comfort as they rolled along over ride smoothing six-wheeled trucks. The Pullman Co.’s standard dark green exterior was accented by the use of gold trim and lettering. The high domed interior was no less spiffy with liberal use of oak, mahogany, parquetry and stained glass. Each car contained a separate lavatory space for men and women.

The passenger depots, especially the Spirit Lake depot, designed by noted architect Kirtland Cutter, deserve special mention. All three – Rathdrum, Spirit Lake and Newport – were of brick construction, with handsome sloped-end roofs. Since the I&WN was headquartered in Spirit Lake, this depot was the grandest of them all. It included beautiful hardwood floors and all the amenities that the period could offer, including separate waiting rooms for men and women.

The second floor served as administrative headquarters for the entire railroad, with the dispatcher’s office in a cupola at the center of the building. Many years later this beautiful building was offered by the Milwaukee Railroad as a gift to the Town of Spirit Lake. The city fathers didn’t want either the responsibility or expense and turned the offer down. The depot was soon razed. What a sad day.

It is not really known why Blackwell chose Spirit Lake as headquarters for the I&WN. Most likely it was chosen because of its central location along the railroad, an abundance of level land for building, and it certainly didn’t hurt that tracks abutted beautiful Spirit Lake. It was here that Blackwell built his massive rail yard and shops, which far exceeded the need of the operation.

A change in ownership

The new railroad was very well received and efficiently run, but it quickly began losing money. Blackwell was unlucky in his timing in that a deep and extended recession arrived at about the same time the Blackwell Road commenced operations. The Blackwells struggled to secure loans as best they could in a tight money market. Frederick even mortgaged the apple of his eye, his Panhandle Lumber Co. holdings, to keep on chugging. Rumors concerning the I&WN abounded, ranging from imminent bankruptcy to sale to another railroad. Finally, in 1914 and at the end of his tether, Frederick agreed to relinquish controlling interest to the Milwaukee Railroad.

In return, the Milwaukee would take over management of the line and assume all debts. Even with new management, there was little operational change to the I&WN for two years, and the Blackwells hoped to be able to rescue their pet. This was not to be, as on Jan. 25, 1916, the Chicago, Milwaukee and Puget Sound Railroad purchased the residue of this fine little line, and it became a chapter in Spirit Lake’s history. For the record, the Milwaukee operated the Spirit Lake yards until 1926, finally closing them as a cost-saving gesture. Trains continued to operate on the tracks into the early ‘70s, when the financially troubled Milwaukee abandoned the McGuire-to-Newport section. In 1979, facing bankruptcy, the Milwaukee turned over operation of the Newport-to-Metaline Falls section to the Pend Oreille Country Port District, which still operates the line as the Pend Oreille Valley Railroad.