During the early 1990's logging contractors in the Piney Woods were being slowly strangled with impossibly high rates for workers's compensation insurance.

The better contractors - those with mechanized operations, including shears and grapple skidders, who monitored their logging sites carefully to avoid accidents, and kept pristine records - were paying $51 in comp insurance per $100 in payroll. Others, with less than totally modern and well-managed operations were paying upwards of $70 and above per $100 in payroll. Total insurance outlays were costing major contractors from $175,000 to $225,000 per year.

Something had to give, as they began to be forced to the wall, and out of business for some.

That's when a group of seven loggers decided to organize for self-help. These were Robert Franks, Michael Franks, Robin Fair, Steven Gaar, Tony McManus, Don Tant, and Donald Carpenter, who began the process of organizing the Self Insured Fund of the Louisiana Loggers Association, based in Winnfield. Lamar Hutto participated in the organization of the Association, and served as Association executive director until his retirement.

At its official beginning in April, 1994, the founders had their personal assets pledged to secure startup money and the required reserve to become legally self-insured. How far the organization has come was reviewed at the Louisiana Loggers Association Self Insured Fund 10th Anniversary membership meeting on April 23 in Winnfield.

After treating about 225 members and guests to a fabulous seafood dinner, the Fund management team reported that the organization is in a very secure financial position.

Randy Maxwell, manager of the Edward Jones investment brokerage office in Winnfield, reported that the Self Insured Fund is earning top market interest rates with an average of $2 to $3 million in government agency bond funds.

Administrator Donald Carpenter said the Fund maintains investments in certificates of deposit with area banks, in addition to the federal agency funds, to maximize interest return, and to keep money available for operations, claims, and other expenses, as investments roll over in various amounts throughout the year.

Carpenter said that since organizing, the Self Insured Fund has returned over $7 million in premium refunds to members, including over $1 million in the current year alone.

The Self Insured Fund achieves its financial success in several ways, beginning with review of applicants for membership. "We turn down almost as many as we accept," Carpenter said. Member loggers' operations are checked by the Control Engineer at least once every 60 days, to observe safety and other aspects of the job.

Operating overhead is at a minimum, with only three staff members - all of whom have working and family background in the logging and forest industry.

The Association and Fund currently has 137 members, and as their advertising slogan says, "We are accepting a few good loggers."

Membership is limited to logging contractors or truckers working in the forest industry.

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