Friday, June 20, 2014

Weyerhaeuser Timber Company

On January 3, 1900, the timber industry in Washington underwent one of the biggest changes in its history. On that day, Midwestern lumber magnate Frederick Weyerhaeuser purchased 900,000 acres of land from the Northern Pacific railroad in the largest private land transaction in American history to that point in time. He paid $6 an acre.

Frederick Weyerhaeuser
Frederick Weyerhaeuser

Weyerhaeuser’s company brought economies of scale that modernized the industry. Part of the company’s deal with Northern Pacific give it low rates on shipments to the eastern markets. At the same time, the formerly thriving lumber industry of Wisconsin and Minnesota was in decline, due to deforestation. Thus, the national prominence of the Pacific Northwest timber industry was ensured.

Worker’s compensation laws

Weyerhaeuser did not take a hard line on wages and working conditions. He came more from the tradition of those who saw value to good morale and decent pay, though of course his employees may not have always agreed with that statement.

The issue of injuries and deaths on the job was central. The dangers came from being cut and crushed, and the protections and compensation were inconsistent. However, some workers brought suits in state court and were awarded large sums. Many companies maintained that workers routinely ignored safety measures and were frightened by the size of the judgments.

In any event, a compromise was reached. Working with the American Federation of Labor, the largest timber companies including Weyerhaeuser’s drafted a worker’s compensation law, which was implemented in 1911. Thus, Washington joined the first wave of states to establish such programs.
While the labor situation in the area remained volatile, groups like the Wobblies never gained the influence that they aspired to.

No comments:

Post a Comment