Letter Alleges Pattern Of Mismanagement at Chehalis-Centralia Railroad & Museum

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A pointed letter from the Port of Chehalis to leaders of the Chehalis-Centralia Railroad & Museum alleging a pattern of organizational malpractice figures to further strain the relationship between the two sides as the port continues to look at offloading ownership of the rail line used by the CCR&M for its steam train excursions.

The letter, dated Sept. 6 and signed by Port of Chehalis CEO Randy Mueller, cites a recent incident in which the CCR&M missed filing deadlines with the state Department of Revenue and Department of Labor and Industries as the latest in what Mueller does not consider to be a one-time mistakes.

Mueller closes the letter by writing, “For the port, we can only say that something needs to change with the management of the CCR&M for us to continue working with the group. The current situation is simply unacceptable. While we would rather have a community asset generating tourism dollars and entertaining families, the option of simply shutting down the rail line for good will be the one taken by the port if we don’t have complete confidence in your operation.”

Bill Thompson, president of the CCR&M nonprofit, said Monday that he hadn’t seen a copy of the letter, though Mueller says he sent paper and digital copies to every board member and executive.

Thompson, whose wife Wanda Thompson serves as the organization’s secretary and treasurer, said there have been a number of long-simmering issues between the CCR&M and the Port of Chehalis. He blames a person he declined to identify, other than to claim they hold a position of authority within Chehalis city government.

“There’s a whole bunch of crap going on that nobody’s had the [guts] enough to put their name to it,” Bill Thompson said. “He’s got some little followers while he himself won’t say or do nothing. It’s kind of a dog-eat-dog thing and I’ve been there more than 20 years, so I’m not just going to go away.”

Bill Thompson went on to say the nonprofit paid fines of about $7,000 last week and that they are all squared away at the state level, an assertion backed up by CCR&M 

Vice President Bill Deutscher. The Department of Revenue is barred by state law from discussing tax details regarding an individual business and thus could not confirm the payment.

The issue of CCR&M falling months behind on its obligations with state agencies is at least in part due to Wanda Thompson having suffered a medical emergency earlier this year that she is still recovering from.

Mueller acknowledges that hardship in his letter but dings the nonprofit, which relies mostly on the efforts of volunteers, for not having bookkeeping procedures in place for when Wanda Thompson is unable to work. In addition, he claims the problem was made worse by a lack of digital financial records.



Deutscher and Bill Thompson both said they aren’t sure what accounting methods Wanda Thompson uses to handle the CCR&M finances. Deutscher said he knows she uses a computer “to some extent.” 

The nonprofit claimed $196,741 in total revenue and accounted for $223,718 in total expenses on its 2016 tax filing with the Internal Revenue Service.

“I don’t know what she does,” Bill Thompson said. “All I know is that all the money goes to the bank. When she gets a bill, she writes a bill.”

Though obviously frustrated with how the CCR&M is being run, Mueller said it’s not his place to precipitate a change in leadership. It’s for the organization to decide what it wants to do, he said. All he can do is point out that the current situation is not acceptable to Port of Chehalis leadership.

The port itself has been exploring options for how it can transfer ownership of the 10-mile stretch of railroad track it owns and that the CCR&M uses seasonally for events centered around one of the only active steam-powered locomotives in Washington.

“An organization wishing to acquire the asset would need to demonstrate a sound professional business plan and a track record of meeting all their obligations,” Mueller wrote. “The CCR&M is not currently doing so.”

A study commissioned by the port earlier this year showed the nonprofit generated an economic impact of more than $800,000 a year through direct and indirect contributions to the local economy. The study has not yet been finalized and is being revised to account for additional revenue streams not included in the first calculation.

Bill Thompson pointed to the study and what he figures to be several hundreds of thousands of volunteer hours that have gone into the organization since its inception in 1986 as reasons why the power structure should remain intact.

“Most of us that want to see it continue are volunteers, then along came a few troublemakers and who knows what their intentions are?” he said. “It’s just one of those deals where I’ve been there and spent many dollars out of my own pocket, but I’m sure if my wife and I leave the operation, it’ll go on.”