53 



And then here on the west side was a shelterwood removal. And 

 when you start to look closely at these pictures, you can see that 

 there is very little difference between a clearcut and a shelterwood 

 removal. A shelterwood removal is simply a two-stage clearcut, 

 where you come back in maybe 3, 5, or whatever years, and you 

 take the rest of what you left. That cut was approved probably in 

 1985 and finished maybe 2 or 3 years later. And as you can see 

 from the aerial photo in 1991, there has been very little recovery 

 of the area in terms of vegetation. 



Mr. Hamburg. Thank you very much. 



I think this photograph really is graphic demonstration of what 

 is happening under the management of Maxxam and also under 

 the regulatory environment as interpreted by the Department of 

 Forestry. 



Thank you, Mr. Chairman. 



Mr. DOOLEY [assuming chair]. Mr. Doolittle. 



Mr. Doolittle. Mr. Chairmsui, I wonder if I might ask unani- 

 mous consent to have entered into the record a letter to members 

 of the Subcommittee on Speciedty Crops and Natural Resources, by 

 Sal Chinnici, on behalf of Pacific Lumber Company. 



Mr. DoOLEY. Without objection, it will be included in the record. 



[The letter appears at the conclusion of the hearing.] 



Mr. Doolittle. Thank you. 



I think you indicated that you felt that $1 in $9 is generated by 

 the timber industry, and of course, we don't have them here to tes- 

 tify before us, but Professor John Grobey from Humboldt State 

 University gave a different set of figures, indicated over 70 percent 

 of the local economy is directly driven by the forestry resource. 



Do you have a sense of what might account for that discrepancy? 



Mr. Stewart. Yes, sir, there is a simple answer. Mr. Grobe^s 

 numbers, I presume, are based only on wage income from workers 

 from jobs. When you look at all income coming to people of the 

 county of Humboldt or northern Humboldt County, you would find 

 when you include Social Security, Medicare, disability payments, 

 interest and dividends, that percentage will drop from 70 percent. 

 The economic stimulus, I think what he is picking up, would drop 

 from 70 percent down to 12. The number I quoted from $1 in $9, 

 is for the whole north coast, which includes Del Norte and 

 Mendocino County, and for this region of Humboldt County, it may 

 be $1 in $6, something like that, but not $7 in $10. 



Mr. Doolittle. But you are saying in order to get it down, you 

 have to count the transfer- type payments, the social welfare-type 

 payments? 



Mr. Stewart. And people's money they have saved over their 

 lifetime and they are spending as they are retired. 



Mr. Doolittle. Or they are spending as a result of being out of 

 a job? 



Mr. Stewart. That is around 5 percent of those transfer pay- 

 ments, sir, less than 5 percent. 



Mr. Doolittle. But as far as if you just — I mean would you 

 agree with him, if you simply limited it to the wage-based income? 



Mr. Stewart. I would agree with him that he has a bad model, 

 yes. If he used the correct model, I would have to disagree. 



