This $500 Million Wool Empire Became an Oregon Ghost Town Almost Overnight in 1911

Take a Look at this Town’s Downfall

Deep in north-central Oregon, in Wasco County, is what the Oregon Centennial Commission once called the state’s “Ghost Town of the Year.”

Its name is Shaniko, and here’s a quick look at the town’s rise and downfall.

Stagecoach Roots to Railroad Riches 

August Scherneckau, a pioneer, settled in the area after the Civil War and bought a farm near the present site of the town.

Shaniko was a center for wool and wheat in the early 1900s. It became known as the “Wool Capital of the World” and had the largest wool warehouse in the state.

Collapsed Due to River Railroads and Fires

The town started to decline in 1911 when the Oregon Trunk Railway diverted 70% of freight to Bend in 1911, undercutting Shaniko’s economy.

Fires in 1910–1911 also destroyed 80% of downtown, including critical wool storage facilities.

By 1920, the population crashed to 124. Snowmelt finished the job in 1964 by washing out key rail tracks. Oregon’s government formally declared it a ghost town in 1959.

From “Cross Hollow” to “Shaniko”

The town was initially called “Cross Hollow.” It became known as “Shaniko” because that’s how local Native Americans pronounced Scherneckau’s name.

There Were Revival Attempts for Shanico

Investor Robert Pamplin Jr. spent $3.1 million in 2000 acquiring 90% of the town, including the historic Shaniko Hotel.

A 2008 water rights dispute halted renovations until 2023, when preservation groups restored the hotel’s 18-inch brick walls and reopened its National Register-listed rooms. 

Check Out Shaniko’s Abandoned Homesteads

Fewer than 30 residents remain in Shaniko, though temporary workers occasionally boost numbers.

In town, you can still find intact 1901 jail cells in City Hall and 1920s Ford trucks rusting near abandoned homesteads. The original water tower still uses 1900s wooden pipes from Cross Hollow Canyon.

Shaniko’s Original Jail Still Stands

The 1982 National Historic District protects 12 structures, including a 600-foot wool warehouse and the railroad’s gravity-fed water tower.

Be sure to check out City Hall’s original jail bars or examine pioneer diaries at the Sage Museum. The restored Shaniko Hotel now offers rooms with views of Mount Hood.

Walk the 1899 Street Grid When You Visit

Wooden sidewalks follow the original street grid past sheep shearing pens and a 1912 schoolhouse with intact chalkboards. Faded storefront murals advertise wool prices, while the 10,000-gallon water tower relies on its pioneering plumbing system.

Join Shaniko Days Festival

This August event draw 400+ visitors for live wool-baling demos using 1900s equipment and quilts made from local fleece.

Gunfight reenactments echo down Main Street, while the 2023 revival featured chuckwagon dinners celebrating the hotel’s reopening.

Amazing Ghost Town Photography

Capture the Shaniko Hotel’s Italianate architecture against Oregon’s high desert skies.

Document peeling 1910s railroad posters on post office walls or attend workshops on archiving structural decay in collapsing barns.

Seasonal Businesses to Visit 

April–September brings an ice cream parlor operating in the 1903 bank building (original vault included).

Weekends open the 1911 schoolhouse’s toy museum, while shops sell wool goods and Columbia Southern Railway artifacts.

Attractions Near Shaniko 

After exploring Shaniko, hike 0.7 miles to White River Falls’ 1910 hydroelectric ruins.

Drive Highway 97 past Native American burial mounds or find 1860s stagecoach ruts in Cross Hollow Canyon.

Railroad enthusiasts explore Oregon Trunk trestles near the Deschutes River.

Go on a Self-Guided Ghost Tour 

Grab yourself one of the self-guided maps available at the hotel, which will point you to 14 accessible ruins in Shaniko.

The town also holds annual photography workshops focused on documenting decay patterns.

Another fascinating feature you need to check out are oral history projects that record descendants’ stories of 1900s boom years.