48 



[Recess taken.] 



Mr. Rose. The subcommittee will please come to order. 



When we recessed our panel of witnesses, Ms. Lanman, Ms. Bai- 

 ley, and Dr. Stewart, were fielding questions. And the gentleman 

 fi-om California, Mr. Pombo, had 2^2 minutes remaining for his 

 questions. 



Does the other gentleman, Mr. Doolittle, seek time? 



Ms. Bailey. Pardon me, Mr. Chairman. If it would be possible 

 for me to complete my answer to Mr. Pombo. 



Mr. Rose. Go ahead. 



Ms. Bailey. Thank you. 



I wanted to also point out that Maxxam is in a very unique posi- 

 tion, that has them not only looking at the California State Regu- 

 latory System — Maxxam earlier this year underwent, or the Pacific 

 Lumber part of Maxxam, underwent a total refinancing structure. 

 And what they have done is they have issued more than 300 mil- 

 lion dollars' worth of a security called timber collateralized note. 

 And these notes make the trees security for the notes. 



And I would like to add into the record, if that would be possible, 

 an article by Allan Sloan of New York Newsday, as reprinted in the 

 Los Angeles Times, which explains how these notes work. Because 

 of the timber collateralization of this 



Mr. Rose, Without objection, so ordered. 



[The information follows:] 



