What is the city of Industry? A brief history of its eyebrow-raising origins

You would think the city of Industry is self-explanatory — it’s a place for industrial business. But how Los Angeles County’s second smallest city began is quite a roller coaster.

For decades, Industry has been a haven for warehouses, factories and not much else. As of the last U.S. Census, only 265 residents live in its 12 square miles. Under state law, Industry today wouldn’t even reach the minimum number of voters required to form a city.

So how did it get here? Industry’s tumultuous origins include alleged corruption, corporate influence and a struggle over territory.

A family business

Before the city became one of L.A. County’s foremost industrial hubs, it was an unincorporated agricultural area in the La Puente Valley, under the control of the L.A. County Board of Supervisors.

Ranchers grew crops such as oats and alfalfa, according to research from Cal Poly San Luis Obispo. The area would sharply change in the 1900s.

A man named Clifford Clayton Stafford (also known as C.C. Stafford) established a feed mill in La Puente in the 1920s. The business’ proximity to railroads and access to labor helped it thrive. At one point, the 15 employees were said to generate at least $1 million annually by providing hay, grain and other foods to ranchers and dairies across the state.

Then, Stafford destroyed his career. He went on trial in 1929 for rape and went to jail a year later, according to author Victor Valle in his book, City of Industry: Genealogies of Power in Southern California. The case was followed closely by news outlets at the time. Valle said the fallout had an enormous impact on Stafford's son, James Marty Stafford, that may have played a role in his lust for power.

After James took over the family business, he became one of the most influential people in Industry’s history. He doesn’t get a mention on the city’s Wikipedia page, but the wealthy grain dealer and landowner is credited with Industry’s founding.

A cable car carries golfers and carts up a hill in a 1984 image of a course at the Industry Hills Convention and Recreation Center, which was built by the city of Industry.

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Mike Sergieff

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Herald Examiner Collection / Los Angeles Public Library

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Forming a city

James took over the family business and later joined the L.A. County regional planning commission. One of the functions of the commission was to determine whether to recommend a proposed city.

So when residents in La Puente’s suburbs decided to pursue incorporation, James had a front row seat on the decision making. And when he saw the proposed boundaries of the new city, he realized it included his property — something he definitely didn’t want.

According to Valle, James then organized the few landowners in La Puente Valley’s industrial corridor to submit a separate cityhood petition, with the backing of the county. This new city would prioritize manufacturing and production — not residential elements — and would reflect that in its name: Industry.

The Southern Pacific Railroad, one of the city’s largest landowners, also threw in its support. It saw residential encroachment from La Puente as potentially harmful to its development interests.

The control board at Alta Dena dairy in city of Industry on Jan. 29, 1984. The dairy is still in Industry.

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Paul Chinn

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Herald Examiner Collection / Los Angeles Public Library

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The pressure James orchestrated worked. While he was on the planning commission, the body recommended that the Board of Supervisors should approve Industry’s cityhood petition.

La Puente incorporated first in August 1956. Industry incorporated a few months later on Dec. 4. But the next week, certification of the city was halted by the courts.

La Puente residents were fighting back with lawsuits. News reports at the time said residents were worried Industry’s bustling future would disrupt La Puente’s peace. This kind of push and pull over the two areas would mark the cities’ futures for years.

A numbers game

One of the lawsuits, from Walter F. Pyne, a property owner in the area, argued that James’ behind-the-scenes role in forming Industry and high-profile connections were a conflict of interest.

Another one was about the voter base. State law required a minimum of 500 registered voters to form a city, and an early plan for Industry’s boundaries fell short of that number.

So to make up for it, nearly 200 patients and staff in El Encanto Sanitarium, a private mental institution, were included. (El Encanto is still around today as a skilled-nursing facility.)

Pyne argued it was illegal to include the patients because they likely weren’t able to make decisions for themselves — like voting.

El Encanto's dormitory, seen in the 1940s.

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Courtesy The Homestead Museum

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The Southern Pacific Railroad, determined not to lose the fight, came up with its own way to defuse the situation. It sent a real estate agent to secretly buy out Pyne’s property, which forfeited his lawsuit rights.

Ultimately, Pyne dropped his suit, and La Puente buried the hatchet. Industry formally became a city on June 18, 1957.

Although James never became an official politician in the city, he continued to influence policy and development. Many of his connections took on elected roles in the new city government. For example, the attorney the railroad company provided James in that lawsuit went on to become Industry’s first city attorney. James also reaped millions of dollars from land purchases, including one for higher-than-assessed value.

As with his father, James’ career ended with legal trouble in the 1980s. He was sentenced to 10 years in prison for a sweeping kickback scheme in which he accepted $750,000 in payments to help builders get lucrative deals in the city.

Lina Haaga contributed to this report.