Juneau Spruce Corp. began its sawmill operation in Juneau April 30, 1947, at 496 S. Franklin Street, previous site of Juneau Lumber Co. A “million dollar company, owned primarily in Oregon,” it was created from the combined assets of the Juneau Lumber Company, Juneau Logging Company and Juneau Motorship Company. H.F. Chaney of Portland, Oregon, was named first president and E.S. Hawkins was vice president and resident manager.

Difficulties plagued Juneau Spruce Corp. from the beginning. Although the U.S. Army Corps of Engineers originally agreed to buy all lumber in excess of what was sold retail, the agreement had been withdrawn and the new company found it necessary to build dock facilities, lease barges, purchase a sea-going tug and find new markets almost immediately. Mill renovations forced the mill’s closure 6 months after opening, from December 1947 until March 10, 1948. By March of 1948, the company had spent $2,500,000. and was operating at a net loss.

The question of union jurisdiction for barge-loading existed from the beginning. Contracts had not been renewed with the International Longshoremen and Warehousemen’s Union (ILWU) or the International Woodworkers of America (IWA), but instead, Juneau Spruce Corp. negotiated a new contract with the IWA in Nov. of 1947. On April 9, 1948, ILWU picketed the sawmill and shut the mill for another year, less than a month after it had reopened. Troubles continued for Juneau Spruce Corp. By threatening to stop all shipments of Alaska frozen fish through their port, Juneau Longshoremen convinced Prince Rupert Longshoremen to strike the company barges in Prince Rupert.

On August 21, 1948, the National Labor Relations Board charged the ILWU with violation of the Taft-Hartley Act. The ILWU appealed and on October 8, 1948, the Juneau Daily Empire reported that Juneau Spruce Corp. would close its doors with no plans to reopen. On April 2, 1949 the ILWU was found guilty of unfair labor practices and ordered to pay $750,000 in damages. They appealed to the Supreme Court claiming the Territory’s lack of jurisdiction but the decision was upheld. On August 8, 1949, a 19-year old worker, James McClellan, was killed at the Juneau sawmill and on August 28 the sawmill was completely destroyed by fire.

On Jan. 7, 1952, the Seattle Daily Times headlines read:

High Court Upholds $750,000 Award Against Bridges’ Union for Picketing. … The suit charged that Harry Bridges' International Longshoremen’s Union damaged the company’s business by setting up picket lines and making “coercive” statements during a jurisdictional row between rival labor organizations. ... . His union was expelled from the CIO for the leadership following Communist Party line.

June 27, 1955, Juneau Spruce Corp. collected $250,000 from the ILWU, less than half the original settlement. The company had not operated successfully for over six years. On December 19, 1955, a certificate of final dissolution was filed and the company was sold to Juneau Lumber Company.