In 1883, the Korbel family bought the line which had about of track split between common carrier lines and private logging track. The Korbels organized the company on December 29, 1891, as the Arcata and Mad River Railroad Company. In the late 1880s, the A&MR line carried lumber for the (Isaac) Minor Mill and Lumber Company of Glendale. In 1890, the A&MR engines included "Arcata", " North Fork", " Eureka" and "Blue Lake" as well as a small engine named "Gypsy"; by the early 1900s, a new Baldwin 1901 engine named the "Hoopa" was added.