Poor Blue Goose. A local tourist hotspot that once hauled railroad enthusiasts for over a quarter-century has hit hard times, financially. The owners of the
have many outstanding debts owed to other parties and were hoping to auction off their coveted locomotive and be able to keep it in Yreka. Unfortunately, a third party collector has filed a lawsuit to make a claim to the locomotive and other property assets. SiskiyouDaily.com published an online article recently to highlight the latest developments and it reads:
By Kevin Dickinson
Posted Oct. 25, 2013 @ 10:21 am
Yreka
The sheriff's sale of Yreka Western Railroad's Baldwin 2-8-2 No. 19 has been postponed indefinitely after another bout of litigation hit the locomotive's future prospects.
Railroad Services and Supply Co., based in Portola, Calif., has filed legal action, claiming its lien against No. 19 has seniority over the debt owed to Chelatchie Boiler Works, Inc., of Camas, Wash. – the debt the sheriff's sale was designed to settle.
"The party that was moving for Siskiyou County is basically in third position, behind my client and another firm," said Bryan R. Whipple, the attorney who filed the legal action for Railroad Sevices.
Railroad Services' lien stems from a security agreement made on Jan. 21, 2000, according to the Surface Transportation Board. The agreement was the result of debts YWR owed to the Cecil family. It was signed by then-YWR President Don Marshall.
Whipple said the security agreement went "through a series of owners" before Railroad Services came into possession of it.
The Chelatiche Boiler Works security agreement was reached on Oct. 3, 2008.
"Our long-run intention is to preserve both the railroad and the locomotive," Whipple said.
Robert Winston, attorney for Chelatchie Boiler Works, said the law provides a hearing procedure where a judge will sort out the issues. He added there is no date scheduled for such a hearing yet.
"It's way too early to know where we are going on this," Winston said.
Joan Reed-Nickerson, president of Chelatchie Boiler Works, declined to comment.
John Nixon, who is spearheading a movement to purchase No. 19 for the people of Siskiyou County, said he hopes the case will be brought to court but feels criminal court is a more acceptable venue.
"I believe there has been a unification of interest between the debtor (YWR) and the lien holder (Railroad Services)," Nixon said.
YWR owner Courter Hammond declined to respond. Representatives of Railroad Services could not be reached.
This has not been the first time legal issues have derailed plans for No. 19.
The La Grande Observer reported in February that the Wallowa Union Railroad Authority contracted with Hammond to run excursions in Northeast Oregon using the historic locomotive.
Due to a breach in the agreement, unpaid insurance, and money owed to the railroad and vendors, the WURA?board ended Hammond's contract in January, according to the Observer.
Mary Jo Culp, civil processor for the Siskiyou County Sheriff's Department, said the locomotive will remain in the department's legal possession until it is told something has changed.