FDR and Timberline Lodge
While I think that the so-called “stimulus” bill that the new administration will enact is poor policy for a number of reasons, it’s now the reality. Perhaps some lasting benefits will come out of this pork-fest.
Something like, say, Timberline Lodge at Mt. Hood, offering a base for both winter and summertime riding and skiing.
Perhaps anticipating another FDR-style flurry of government spending, the Wall Street Journal ran an article last month (“Shining Example: A New Deal Gift That Keeps On Giving,” January 23) about the lodge, one of the many projects of the Works Progress Administration.
The building of the lodge, finished in 1937, was a make-work project, designed “to employ as many artisans as possible.”
While government could pay workers to produce works of art, it couldn’t fulfill President Franklin D. Roosevelt’s dream of the lodge’s business venture meeting the test of the “workability of recreational facilities installed by government itself and operated under its complete control.”
Install facilities, it could do. Operating them well as another matter. As Leslie Hook writes, “Market forces [which is to say, the freely made choices of consumers] had nothing to do with the design or siting of the lodge, and the early operators struggled.” As a result, the lodge was profitable during only two of its first five years.
Lodge operators were renters only and not owners who could profit from eventually selling the place to someone else. That discouraged investments in facilities. (Here’s an experiment: How much renovation have you made to your house? Now how much renovation have you made to your last apartment?)
The lodge was closed during World War II and briefly reopened, but it soon became clear that “only one thing could turn around this government-made disaster: private investment.”
In exchange for a fee (4.5 percent of revenue) the U.S. Forest Service leased the business out to RLK & Co, which (despite being a renter) put in a lot of upgrades to the investments.
Even today, the U.S. Forest Service (that would be you and me, taxpayers) spends somewhere between $1.2 and $1.5 million each year on maintenance. Much of that money comes from fees that the company pays to the USFS.
Over the last 30 years, federal taxpayers have kicked in $8 million. Hook notes that the lodge company hoped that it would snag some money from the stimulus bill. (Since few people actually know what’s in the bill, it will be a while before we know whether they got their wish.) Meanwhile, the Friends of Timberline have coughed up another $4 million.
Hook concludes, “Don’t get me wrong: Timberline today is probably one of my favorite places in the world. But it thrives in spite of, not because of, the ideas it was built on.”


