During the reorganization of Red River in the early 1930s, it was only a matter of time that bank issue once again would be scrutinized. On June 6, 1934, Clinton questioned how the bank operated: “As to the Westwood National Bank, I feel that this should be run as a bank and not as a subsidiary financial department of Red River. I think that the Bank board of directors should direct the policy and business of the bank and that the finance committee of the bank should pass on loans and these be on the merits of the loan and not from the standpoints of its convenience of Red River.”            

Clinton’s concerns were confirmed when investigations were conducted on the bank’s affairs. It was disclosed that certain family members used the bank to obtain dubious loans, which would not have been approved by a regular bank. For instance, a loan was made to finance a portion of the construction of the Walker-Hovey railroad in Modoc County, which was being bailed out by the same time by the government’s Reconstruction Finance Corporation.           

These events allowed Clinton to move forward on his case to dissolve the Westwood National Bank. Clinton cited it was an ill conceived venture as no one in the Walker family had any banking expertise. While it was agreed to dispose of the bank, that was easier said than done. After all bank failures were a common occurrence across the nation, so it was not the best time to put a bank on the market. It was even suggested they could sale it to the residents of Westwood. One of the obstacles to sale the bank was Willis, who also served as the bank’s president. After two years of stalling by Willis, it was decided to put Wellington Henderson (Clinton’s son-in-law) in charge. Wellington, it should be noted had banking experienced as he had worked for Bank of America. On September 18, 1936 Willis made the announcement that the Westwood National Bank reached an agreement with the Bank of America for the sale of the bank. Willis stated “This sale brings an affiliation for our local bank that will enable us to render an even greater service to the local community. Our bank will become a branch of the state-wide institution in the near future. The local officers and staff will remain.”            While the bank building has long since been demolished, the concrete vault still remains, a testament to better times.

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This was no ordinary bank, but then the Red River Lumber Company was not an ordinary operation either. Red River wanted to capture as much of its employee payroll at Westwood, as possible. This was no small sum, with an average monthly payroll of $350,000. Red River was able to retain a majority of the payroll being returned in the form of rent payments, the costs of necessities of life such groceries and other amenities purchased from its company stores.           

 The Big Store, noted for have everything under one roof, served as a de-facto bank. It was one of few places were employees could cash their payroll checks. In one instance this seemed like a good business maneuver, with an employee having plenty of cash in his pocket might splurge on something in the Big Store after cashing his check. With 2,000 employees cashing their checks, the Big Store was insufficient to handle the volume. A number of employees found that method disagreeable and began doing their banking by mail. It was the latter that concerned Red River watching their money going into someone else hands.            

 Fletcher Walker, the resident manager, came up with a solution.  Why not go into the banking business, after all except for the mortuary, they controlled every aspect of Westwood.  Of course, this met with opposition from T.B. and Gilbert Walker, as it was nothing related to the lumber business.

In the spring of 1920, Red River moved forward with its announcement that it was going into the banking business. This was foreign territory with a lot to learn. Much to their chagrin was the amount of compliance of government regulations they had to contend with. While Red River had to deal government inspections, mainly for health and safety issues, for the most part they could do as they saw fit, but operating a financial institution was on entirely different level, since the government placed a series of requirements on the latter.           

 On October 1, 1920, with little fanfare the Westwood National Bank opened its doors for business. The bank was located in the Red River’s office building across the street from the Big Store and the mill entrance. To greet the new customers, the first manager and cashier was A.G. Graham. The Board of Directors consisted of Willis Walker, president; Fletcher Walker, vice-president, R.F. Pray, C.E. Hunter and Fred L. Cleaves.[

After a year in operation the bank reported having  $265,905 in deposits on hand. In comparison, Lassen County’s oldest financial institution the Bank of Lassen County reported $1,208,810.59 in deposits. In time the Westwood National Bank began to flourish and in 1925 saw its deposits soar to $914,384.

The Westwood National Bank was a unique institution. Banks in this era, were very progressive to provide loans for building businesses and homes in an effort the communities they serve would prosper. However, this was not the case with Westwood, as Red River owned all the businesses, and all the houses. The bank did provide loans of a personal nature for its customers to purchase big ticket items such as automobiles. However, in one instant, the bank did assist in financing the ill-conceived Red Rock Irrigation District in northeastern Lassen County.

Tomorrow the demise of the bank.

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The following is some promotional 1923 literature courtesy of the Lassen County Chamber of Commerce: Westwood is the big lumber town of the Red River Lumber Company and probably the most unique town in the United States. It is a modern town in every respect and entirely managed by the company. The company owns all the houses and operates all the business enterprises at a small margin of profit. But this system enables the company to furnish its employees with good houses, heat, light, food, education facilities and entertainment at low cost and keeps them satisfied.

The town is located in the midst of the timber area on a level plateau. It is laid out in wide streets lined with pretty homes with here and there a tall pine as a symbol of the industry which supports the town. The big company department store is the largest in Northern California and there is a cafeteria that feeds over a thousand men an hour, and a great club house where the men can spend their leisure hours.

The schools of Westwood are modern and maintain a high scholarship. There is a union church where all sects can worship, and a Catholic church; and there are libraries, clubs and fraternities. In no aspect is Westwood a lumber camp—it is a city built around one industry and it is a permanent city.

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In 1935, President Franklin Roosevelt signed into law the Wagner Act. This was a gigantic leap forward for the labor movement. Of course, any type of sweeping reform like this gets challenged in court. In 1937, the Wagner Act was upheld and was a catalyst for union organizing. Of course, the sawmill workers of Lassen County embraced, it but there would be struggles.

By the late 1930s, a majority of the local workforce, outside the agricultural community organized their respective union, whether barbers or bartenders. The latter, however, would be included in the Culinary Workers Union. It Westwood the Local Union No. 654 from time to time would flex its muscle. Their protagnist was not the Red River Lumber Company, but H.S. Anderson Company who operated Red River’s commercial enterprises in Westwood. In 1940, H.S. Anderson had taken over the Westwood Club. They fired fry cook, Bill Knighton. In retaliation the four waitresses walked off the job and formed a picket a line. The Westwood Club would be forced to shut down for eight weeks until the issued was resolved.

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In 1861, Carlton Goodrich settled at Mountain Meadows and would become one of the largest property owners there, as his ranch totaled over 7,000 acres. He located his ranch house just west where the highway crosses Goodrich Creek, approximately across from where the old chimney stands. It became known as Mountain House and was a popular stop for weary travelers. In April 1875, Sylvester Daniels paid Goodrich a visit while touring the region and wrote, “I love these mountain folks. No aristocracy among them.” When Goodrich died in 1886, due to estate issues and the subsequent sale to John Crouch, the popular establishment closed. When the Red River Lumber Company established its Westwood operation, in 1912, they transformed the old Goodrich ranch into a dairy.

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It just a few short years after Red River Lumber Company established Westwood in 1912, it became for awhile Lassen County’s largest town. This title would be short lived when Fruit Growers and Lassen Lumber established mills in Susanville, the greater Susanville region rivaled Westwood.

It was not until the summer of 1916 when an accurate head count was done to ascertain Westwood’s population. The Lassen County Board of Supervisors ordered a special census be conducted for Westwood to fulfill a requirement by California Political Code Section 4055. Westwood resident, Leo H. Donnelly, was commissioned by the Board take the census. On September 5, 1916, Donnelly reported to the Board that Westwood had a population of 2,319. Red River officials had estimated there were only 1,600 residents. The town continued to grow. 

The 1920 United States Census indicated there were 3,300 inhabitants in the Westwood Township. This included a small group of people residing on ranches in Mountain Meadows who were not associated with Red River. In 1921, Frank Graham, who held a variety of positions with Red River over the years, prepared a list of interesting statistics concerning Westwood. Graham stated it was not sawmill camp or sawmill town, but “ a little city that that has sprung up in the woods during the last few years.”

Graham duly noted the town’s population at 3,638 that another 800 inhabitants lived in logging camps making for a grand total of 4,438. Among other items, Graham observed there were 700 dwelling houses, 350 telephones and 400 cars. In summation, Graham remarked, “Not bad for a lumber jack town.”            

Westwood still had more growing pains. In July 1924 in order to have a better understanding how many people were in the community, Fletcher employed the services of Mrs. Sherwood (Winnie) Zinn to conduct a special census. In her findings she reported a population of 4,647. This included those who resided at the Goodrich Dairy, company ranches and Town Camp. In relaying this information to Willis, Fletcher wrote: “This count, along with absent and unfound citizens would justify a reckoning that we have over 5,000 people here.”            Over the years, folklore of imaginations run amuck held that in Westwood’s heyday it boasted a population of 10,000.  However, the Zinn census portrays an accurate record. The 1930 U.S. Census indicated a population of 4,602 and a similar number in 1940 before the population began a slow decline. In the meantime, while the population stabilized, production from the plant continued to increase. Innovations with machinery made the operations more efficient, thus no need to increase the workforce. In 1956, with the pending mill closure the population plummented to 600.

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This was unlike other patriotic events taken place across the nation that particular year. In 1914, after the completion of the Fernley & Lassen Railroad to Westwood, the Red River Lumber Company was eager to host an event to its neighbors to showcase their new town. However, it always turned out as a logistical nightmare, as other events prevailed. Instead of attempting to do something hasty in the short term, the company focused its attention on July 4, 1915. It was a grand success. A special train came from Susanville to Westwood for the day and those who traveled by car, allowed for thousands to attend not only traditional activities associated with the Fourth, but to sight-see and explore the new town.

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The county wanted to oblige, but it had no funds. They deferred to take any action and turned the matter over to the federal immigration officials. J.C. Borden of the Immigration Bureau was brought in to investigate the situation. What he found on his arrival was that of the forty-five applicants only a handful were eligible to receive aid to pay for their return to Mexico. Yet, the issue was also moot, as Borden noted, because all the Mexicans had gone back to work. He informed the Board, should the issue arise again, that under a federal ruling any alien who had been in the United States for three years and becomes indigent can be returned to his native land with the cost borne by the federal government.
Yet, Red River’s actions caused a lot of anxiety and speculation among its Mexican workforce. In January 1931 rumors circulated that it was going to eliminate all Mexican labor. Red River issued a statement to ease fears among its Mexican employees: “The policy is to employ this [Mexican] labor on certain classes of work as they are very satisfactory in certain moderately well paid positions, do not move around looking for other positions which cuts down the cost of labor turnover. They are considered essential and desirable as part of the plant personnel. It is not the policy to employ outside Mexicans while work is scarce, but it is the policy to take care of those who have been here for some time and have proven to be good workmen and citizens.”

The deportation issue did arise again, as unemployment was persistent with the stagnant economy. In the fall of 1931, Lassen County transported more than one hundred Mexicans to San Francisco, who were then handled over to federal authorities to deport them to Mexico. The county deemed it was cheaper to pay the transportation costs than to provide aid. Many of the Mexicans were willing to leave, and those who had the means left on their accord. The issue was not isolated to Lassen County for 50,000 Mexicans throughout California had been deported that year.

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Note: This was one of my early posts, that a few people expressed an interest. It should be duly noted that mills of Fruit Growers and Lassen Lumber & Box also hired large contigencies of immigrants.

One of the more unusual annals in Red River’s history was deportation. Red River hired a large percentage of foreigners whether it be Scandinavians, Italians or Mexicans. With the downturn in the lumber market, the company was forced to layoff some of its workers. If they thought that the layoff was temporary, they allowed the affected worker to remain. By 1930, however, Red River sought alternatives, as they could no longer bear the financial burden.

In December 1930 Red River notified the Lassen County Board of Supervisors of the lay offs and sought aid to provide for the unemployed Mexicans in Westwood, with the emphasis to pay the costs for their deportation. This had not been the first case where aid for the indigent and/or deportation had been raised by Red River. In the fall of 1929, the first deportation occurred at Westwood. Six members of the Phil Trudeau family, who were in the country on a visitor’s permit, were returned to Canada and eight Mexicans were deported to their native land.

On January 5-6, 1931, the Board of Supervisors held a two-day hearing concerning the deportation of Mexicans at Westwood. There were forty-five indigent Mexicans at Westwood who had been laid off and Red River took care of their needs. Again, Red River felt that it was either the county or the federal government’s obligation to provide them with food and other basic necessities and not the company. The Mexicans did meet the requirements to receive government aid. Even though they were not citizens, they were legally here and had been previously employed.

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