45 



be produced. What I am pointing out is, the size of that impact is 

 probably one-half of what has often been estimated for, say, the ex- 

 pansion of Redwood National Park in the 1970's or even some of 

 the estimates for the Pacific Northwest, and that — when we add up 

 the total cost including the purchase price over time, the impact on 

 the local economy in terms of dollars will probably be more impor- 

 tant or can be more important than the initial costs. 



Mr. Rose. I see. 



Mr. Stewart. So I think one example of this in the late 1970's, 

 as has been mentioned. Redwood National Park, there was an ex- 

 pansion of that park in the same county. At that time, there were 

 many estimates made that this inclusion of 70,000 acres of old 

 growth into that park would create an economic catastrophe in 

 Humboldt County. 



When I compared the projections that were given in congres- 

 sional testimony in 1977 with the actual pattern of job loss in the 

 county of Humboldt, Humboldt actually experienced no net loss of 

 jobs and no increase in unemployment relative to other counties in 

 the State that also experienced the national recession, but did not 

 have a national park. 



Mr. Rose. Well, so they may not have experienced any economic 

 loss or very little. 



Mr. Stewart. Right. I mean, in the early 1980's, all counties 

 went through the national recession, but there was no relative drop 

 in the whole county of Humboldt. 



Mr. Rose. What went to the value of these trees during that pe- 

 riod of time? 



Mr. Stewart. The value of trees are very much tied to the busi- 

 ness cycle; they dropped significantly from the peak in the late 

 1970's and are only now approaching levels, in real terms, close to 

 what they were in 1977. 



In conclusion, I think the record from Humboldt County clearly 

 shows that guaranteeing old-growth redwood logs for sawmills is a 

 very weak economic strategy for the local economy. Job growth 

 within the forest industry depends on new investment in remanu- 

 facturing that can use both young and old-growth logs. Job growth 

 in the economy as a whole depends on the expenditures and invest- 

 ment patterning of immigrants and retirees who have come to this 

 region because they value the high quality of environment there. 



Thank you. I am glad to answer any questions you have. 



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

 sion of the hearing.] 



Mr. Rose. Mr. Farr. 



Mr. Farr. I have a question of Ms. Bailey. 



Does the land in question — does the county put a timber harvest- 

 ing zone on that land? 



Ms. Bailey. Yes, sir. I believe it is all in the timber production 

 zone. 



Mr. Farr. So the revenues from that to the counties and schools 

 are, and cities are, derived by that process set up, that you out- 

 lined? 



Ms. Bailey. That is right. The major portion of the money comes 

 at the time of harvest. 



