279 



Mr. Hunvltz, who controls Northern 

 California's Pacific Lumber Co. throug^h 

 his 317c-o\vned cong-lomerate. Maxxam 

 Inc., has become Public Enemy No. 1 to 

 some environmentalists for his stand on 

 Headwaters and for Pacific Lumber's 

 heavy and possibly ille^ logging in other 

 parts of California in recent years. 



Junk Bonds 



Rep. Dan Hamburg:, who introduced 

 the bill to buy the forest, adcnowledg-es 

 that it is "distasteful to many people" to 

 give Mr. Hurwitz a taxpayer-funded wind- 

 fall for the trees. "But the alternative is to 

 lose an environmental treasure," says the 

 California Democrat 



Maxxam is a creature of the 1980s 

 takeover and junJc-bond frenzy, and re- 

 mains heavily indebted. Environmental 

 opposition has slowed Pacific Lumber's 

 logging", and Maxxam's other main busi- 

 ness, aluminum, is swooning: because 

 of world-wide price cutting. Mr. Hurwitz 

 could use the sale of the Headwaters to 

 make Maxxam financially healthy. 



Don't be surprised if he pulls it off. 

 The 53-year-old Houston businessman has 

 gotten into and out of more controversies 

 than almost any other major financial 

 player oilhe past decade. He is still being- 



sued by investors who claim he committed 

 fraud in the takeover of Pacific Lumber. 

 And he is still negotiating a settlement 

 with the Federal Deposit Insurance Corp. 

 over the collapse of United Savings Associ- 

 ation of Texas. Mr. Hurwitz controlled 23% 

 of the parent of United Savings, whose 

 demise may cost taxpayers as much as SL6 

 billion. 



