McCloud River Railroad

What is going to happen to its locomotives now that the railroad is dead?
http://www.railpictures.net/showphotos. ... 20Railroad

When and why is the railroad dead? Looks like the physical
plant is in good shape. So is the rolling stock. What happened?

http://www.trainweb.org/mccloudrails/News.html
This happened.

Is the McCloud Ry still owned by Itel? If so then the 3 SD-38s would probably go to other Itel companies. What would happen to the historical equipment though?

Itel sold the McCloud Railway to Jeff Forbis on July 1, 1992. For the record, she's not dead either, so no locomotives going anywhere, except maybe to interchange with UP at Mount Shasta and then return to McCloud! They couldn't earn money east of McCloud, especially with the cost of future improvements that would have been needed, so like any good business, they abandoned that section of track.