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referenced study titled 'Analysis of the Export-Base Sectors of the Humboldt County 

 Economy.' This chapter deals with the forest products industry, the tourist industry, the 

 fishing industry, and the agricultural sector. I offer these materials without comment since 

 the data presented speak tergely for themselves, except to note that they reveal a regior^l 

 economy that is experiencing considerable distress. 



I note with some interest that there are now apparently hwo different Pacific Institutes 

 in the San Francisco Bay area. Tlie one in San Francisco noted in Item 5 above has been in 

 existence for many yeara. The one in Oaldand with which Mr. Stewart is affiliated Is 

 apparently as new as his new Ph. 0. One wonders if the choice of its name is coincidental 

 or designed to confuse people into accepting its legitimacy. I do have several specific 

 comments on Mr. Stewart's testinmny. 



First, Mr. Stewart is correct in stating that the forest products Industry has declined In 

 t>oth relative and at>solute terrrs, but he has presented data which understate its Importance 

 and present a distorted picture. For example, in 1990, total wage and salary income in the 

 county was $1 ,041 ,776,000 of which approximately $142,460 came from the forest products 

 industry when logging, savmvlis, remanufacturing, and estimated pulp mili wages are added. 

 This constitutes 13.7 percent of total wage and salary income and 62 percent of 

 manufacturing sector total W&S Income of $173,817,000. Note also that while the forest 

 products industry had 70 percent of the manufacturing employment, it paid 82 percent of the 

 vyages, reflecting the fact that average wages are higher in the forest products industry than 

 in the rest of the manufacturing sector. 



Second, Mr. Stewart apparently does not Include pulp mill wages and employment in 

 his forest products Industry totals. While these latter data are often not reported In ofllcial 

 statistics in order to prevent disclosure, the data were readily provided to me for the study of 

 the local pulp mills I conducted several yeare ago. But the probleirs with Mr. Stewart's data 



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