How Oregon's most famous ghost town is being resurrected

SHANIKO, Ore. — Just three hours southeast of Portland lies Shaniko — Oregon's most famous ghost town. 

Once known as the "Wool Capital of the World," this historic gem is now home to only 32 residents. But as we discovered, both current inhabitants and spirits from the past are eager to welcome visitors and breathe new life into Shaniko.

A ghost town with a living spirit

As the golden hour settles over the tranquil two-street town just off Highway 97 in North Central Oregon, one can't help but sense the ghosts of Shaniko — and the spirit that still lives. Ernie Martin, whose father Ed bought several time-worn buildings in the 1970s, is continuing his dad's legacy. 

"It's Oregon's favorite ghost town," Ernie said. "It's where you come to escape the politics of the big city."

Ernie remembers fondly spending weekends in Shaniko with his twin brother, pretending they were part of the Wild West.

"For me as a child — I get emotional... It was so much fun having this as a weekend stomping ground," he recalled.  

Now, he's working to keep his father's dream alive. 

"This was Dad's dream to bring this town back to life, and I'm hoping to continue his legacy and put my stamp on it as well," Ernie said. 

From wool capital to ghost town

In its heyday, Shaniko was a bustling hub of commerce. The Columbia Southern Railroad terminated here, bringing wool buyers from all over the globe. At its peak, Shaniko set a one-day sales record of five million dollars — worth $176 million today.

David Long, a managing partner of the Shaniko Hotel, painted a picture of the town's wild past. 

"During sheep sales, 20,000 to 40,000 people would come," he explained. "It was kind of a rough place... Saloons, brothels... You had a lot of wild nights."

But the boom was short-lived. A competing railroad and two catastrophic fires in 1910 and 1911 sealed Shaniko's fate, transforming it into a ghost town.

'It could die if people don't care'

Today, a small but dedicated group of individuals are working to preserve and revitalize Shaniko. 

Selina Kephart drives 80 miles from Lone Pine in the summer months to open her antique store, The Raven's Nest, she rents from Ernie Miller.

"It could die if people don't care," she says. "My dream is Shaniko will live for a long time after I am long gone."

Selina's shop is a treasure trove of history. 

"I bring in stuff all the time. You just never know what you're going to find here," she explains. 

From boots to banjos to bonnets, her store captures the essence of the Old West. 

"My main seller is palm leaf hats," she adds with a smile.

The heart of Shaniko

The centerpiece of the town is the Shaniko Hotel. Gene and Dorothy Farrell renovated the hotel in the 1980s, then Robert Pamplin, Jr. bought it, but it closed because of a water dispute in 2007.

Still, the hotel refused to die.

And it just reopened again in August 2023 as part of a nonprofit run by the South Wasco Fire and Rescue.

David Long and Scott Mars, who serve as hotel managers and volunteer firefighters, are passionate about preserving the town's history while supporting the local community.

"Once it dies, it's gone," David warned. "It came to death in the 60s... buildings were falling over. If people don't take care of them, it's gone, and you can't get it back."

Scott Mars, who retired to Shaniko in 2017, jokes about his decision to get involved.

"It had to be insanity. I can't think of anything else," he laughs. 

But his commitment is clear: "No one person is making money off these projects... it's basically to donate to the city, i.e., the fire department — when we first started, it was all out of pocket."

Ghost stories

What's a ghost town without ghosts? Some say Shaniko's past residents never truly left. 

The hotel is rumored to be haunted by Nettie, the wife of a railroad doctor from the early 1900s. 

David explained, "Nettie seems to be a sweet soul, and a lot of people interact with her. You'll smell her perfume. It's not the style you can get today... you can tell this is an old-style perfume."

There's also Amelia, a 4-year-old spirit whose toy ball mysteriously moves up and down the hallways. 

"It makes a good noise and woke everyone up on the floor. They could hear it bouncing down the hall like it had been thrown," David recounted.

Looking to the future

As Ernie Martin hangs up the old "Gold Nugget" sign — a nod to Shaniko's rough-and-tumble past — there's a sense of hope for the future. 

"We are going to put up the old Gold Nugget sign. It's rustic, and it's the one my dad had up there," Ernie explained.

Through the perseverance of its protectors, this ghost town's golden days may not just be in the past. As a new day dawns on Shaniko, casting a warm glow on its weathered buildings, one can't help but feel that its best days may still lie ahead.

Shaniko Days

If you're planning your summer travels, consider a stop at Shaniko. The town is preparing to welcome visitors for its 50th annual summer festival, “Shaniko Days,” happening August 2, 3 and 4. They're anticipating music, a beer garden, parade, cloggers, line dancing, raffles, Native American dancers and history talks. 

Who knows? You might even have your own ghostly encounter in Oregon's favorite ghost town.