By Steve Ongerth - From the book, Redwood Uprising: Book 1
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“There’s a little story about the golden rule: those who have the gold, rule”
—Charles Hurwitz speaking to Pacific Lumber employees in December 1985
In the town of Kilgore, Texas was born a tailor’s son,
From the killing of the Indians he learned how the west was won.
His name was Charlie Hurwitz and he terrorized the land,
His killing field was Wall Street and his gang was called Maxxam…
—lyrics excerpted from Maxxam’s on the Horizon, by Darryl Cherney
By the fall of 1985, the Pacific Lumber Company (PL), based in southern Humboldt County, had existed for over 115 years and remained a virtual eye in the hurricane of class conflict, capitalist boom and bust, and ecological battles that raged throughout the Pacific Northwest. The company had been established in 1869 along with the company town of Forestville with the help of two Nevada venture capitalists named A. W. MacPhereson and Henry Wetherbee for a grand total of $750,000. [1] It was, in fact, the first foray by absentee owners into the redwood lumber industry of Humboldt County, predating even the California Redwood Company. Although it didn’t commence actual lumber operations until 1887, it grew quickly, and by the last decade of the 19th Century, it was the largest lumber company in the county. [2] By 1904, P-L owned 40,000 acres of timberland and its mill (“A”) operating on two ten-hour shifts, could produce 300,000 feet of cut lumber daily. By 1909, the construction of a second mill (“B”) increased the company’s productivity to a whopping 450,000 feet per day with one eight-hour shift working in both mills. The milling complex was one of the largest such facilities on the Pacific Coast. The town’s population increased from 454 in 1890 to over 3,000, and the company’s workforce numbered at least 2,000. [3]
There had been but one significant change in Pacific Lumber’s ownership over its history. In 1905, Maine lumberman Simon J. Murphy acquired the company with the help of east coast investors. [4] Upon acquiring the company he changed the name of the town to Scotia, in honor of his family’s roots in Nova Scotia. [5] It was under Murphy’s leadership that the company instituted its “welfare-capitalist” paternalism in a clear attempt to stave off attempts by the IWW (and other unions) to gain a foothold among Pacific Lumber’s employees. [6] In an effort to ensure that peace would reign supreme, the company closed its saloon, “an infamous whorehouse and gambling parlor” known as the “Green Goose”, in 1910, and replaced it with a bank. That establishment was later transformed into Bertain’s Laundry, which would at one time become the largest cleaning establishment in the county. [7] By the second decade of the 20th Century, Scotia was one of the nation’s most developed company towns, boasting of two churches, two banks, a saloon, a hospital, a schoolhouse, a library, a clubhouse, and a large company owned general store. It also included several cultural and social institutions, including four fraternal orders and a volunteer fire department. [8]
The IWW spared no vitriol at the obvious—and essentially overt—attempt by the employing class to steal their thunder, but the scheme worked. [9] The company wasn’t ever entirely free of dissenters, and there was at least one attempt at a wildcat in 1946 during the Great Strike. [10] Yet, the company remained nonunion throughout its history, resisting organizing attempts by the IWW, various AFL unions, and the IWA, even though ironically it was the threat of unionization that had inspired P-L to implement its benevolent dictatorship in the first place. [11] When Murphy’s grandson, Albert Stanwood Murphy, assumed the role of Chairman of the P-L board of directors, he carried on and enhanced his grandfather’s practices. [12]