The town had its setbacks. Logging gradually waned, but dairy grew. Prohibition in 1915 shut down the saloons for a while. In 1920 a pool hall and other buildings burned. In 1923 the school burned, but classes shifted to Tupper's Hotel, the bank, the Lutheran church, and a lumber company warehouse, and a new school was ready in 1925. The Sheldon Woman's Club established a library in 1933, which burned in the early 1940s, but was reestablished. In the Labor Day flood of 1941 the Jump River wrecked the road bridge on the south side of town, damaged the railroad bridge, and destroyed buildings. The bridges were rebuilt, but not all buildings. Pickering's lath mill burned in 1947, but was reconstructed for sawing and planing.