16 



Even if we are far from a thorough understanding, we can no 

 longer plead blind ignorance. We know that these forests are finite. 

 We know that when they are cut, there inevitably will be job loss 

 unless the industry invests in remanufacturing. The question is not 

 whether jobs harvesting and milling old-growth redwood will be 

 lost, but when and wherever the few irreplaceable ancient forests 

 will be standing or gone forever. 



We know also that, in the largest sense, we are not separate 

 from these forests. We, too, are part of the ecosystem. Undoubtedly 

 we gain when these giant trees cohabit the planet with us. We can 

 pretend the problem just doesn't exist. Or we can deal responsibly 

 and creatively with the problem of the decline of our ancient for- 

 ests, as this bill seeks to do, and be much richer for it in the long 

 run. 



Thank you, Mr. Chairman. 



[The prepared statement of Mr. Hamburg appears at the conclu- 

 sion of the hearing.] 



Mr. Baesler. Mr. Stark. 



STATEMENT OF HON. FORTNEY PETE STARK, A REPRESENTA- 

 TIVE IN CONGRESS FROM THE STATE OF CALIFORNIA 



Mr. Stark. Thank you, Mr. Chairman. I wanted to add to my col- 

 league's testimony and point out that this legislation is probably 

 also cosponsored by the New York Cheddar Cheese Tasters Asso- 

 ciation, the Hubert Humphrey 4-H Club, the California Central 

 Valley Cotton Farm, Swim Club, and Family Preservation Act As- 

 sociation and the Red Rooster Peach Wine Vinters Booster Club of 

 Eastern Georgia. 



While we have not heard in final word from those societies, I do 

 anticipate that they, too, will endorse this bill. 



Someone will not, although I am pleased to join with Mr. Ham- 

 burg in supporting H.R. 2866, and he has described the legislation 

 to you well. I wanted to outline some of the issues with which the 

 members may not be familiar. 



You will hear today about the Pacific Lumber Company, which 

 was in the history of our State for over 100 years a company that 

 was revered for its forward-looking employment policies and timber 

 preservation policies. That history was pretty much decimated by 

 the junk bond financed buyout of Pacific Lumber by the Maxxam 

 Corporation controlled by one Charles Hurwitz. Since Maxxam's 

 takeover, the interests of north coast community anticipates — those 

 interests being a sustainable timber harvest and the environ- 

 ment — have given way to the relentless need to make interest pay- 

 ments on junk bonds and send the profits to Maxxam's Houston, 

 Texas headquarters. 



You will probably hear wonderful testimony to the grand history 

 of Pacific Lumber. What they will not tell you is the rather sordid 

 history of one Charles Hurwitz and the Maxxam Company. 

 Hurwitz' business associates in his acquisition of Pacific Lumber 

 are the convicted felons, Michael Milken, Ivan Boesky, and Drexel 

 Bumham, Incorporated. Lawsuits from former Pacific Lumber 

 shareholders are still pending on accusations of stock fraud by 

 Hurwitz and the Maxxam operation. 



