The Great Depression of the 1930s hit the lumber industry hard,
as use of lumber and wood products in the United States declined with the economy and stockpiles grew.
In 1944 the mill, town, and about 100,000 acres of timber were sold to the Fruit Growers Supply Company.
The Fernley and Lassen Railroad extended from Fernley, Nevada, to Westwood, where by 1918 two passenger trains arrived daily, along with freight and logging trains. Between 1918 and 1934,
both the Lassen Lumber and Box Company and the Fruit Growers Exchange Company had established branch lines from Westwood into their holdings.
Then, local business slowed with the arrival of the Western Pacific Railroad lines to Westwood in 1931 and by 1934 passenger service to Westwood ended.
Seasonal logging trains continued to run to Westwood until the end of 1952 when the Fruit Growers abandoned its logging railroad and camps.
Local rail freighting ended in 1956 and in 1978 the Interstate Commerce Commission approved the S.P.'s petition of abandonment of the Fernley and Lassen Railroad.