In 1911, the California Legislature implemented a voluntary Workmen’s Compensation Act. It failed way short of its goals. In 1913, the introduced a new version, but this time it was mandatory. It initially affected large manufacturers. In yesterday’s column, T.B. Walker was not pleased with this legislation and with the construction of Westwood underway, there was no way to avoid it.
Companies had two options: 1) They could make payments to the State which set up a special account or 2) They could self insure.
Red River Lumber Company went the self-insured route. Each month one-dollar was deducted from employee’s salaries. This money would fund the Westwood Hospital. For employees it was a good deal. In turn, they received full medical coverage, and even for not work related injuries. As far as I am aware Red River continued with the self-insured route until they sold Westwood in 1944.
When Fruit Growers Supply arrived on the scene they, too, opted for self-insured, just as they did at Hilt. In 1942, Fruit Growers opted out of self-insured and money collected from employees were sent to the State. This was not so good for employees, because their insurance covered only accidents on the job. One of the side effects was hospital at Hilt was closed, but converted into a first aid clinic.