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In 1938 the resort closed, after a series of lawsuits that were probably brought about by the Great Depression, but was leased by the government in 1941 and became a military interrogation camp housing both German and Japanese prisoners of war, known as Camp Tracy, until 1945, when orders were sent to dismantle it.
Additional information about its usage during WWII can be found in the book, The History of Camp Tracy: Japanese WWII POWs and the Future of Strategic Interrogation.

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