BOSTON PUBLIC LIBRARY 



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Mr. Hiirwitz commands remarkable 

 fealty on Wall Street **Take the refinanc- 

 ing: It makes very little economic sense ( to 

 bond buyers! because of ail the uncer- 

 tainty around future logging levels," says 

 Peter Thornton, an analyst with Duff & 

 Phelps. "But it flew because Hurwitz has 

 many believers 'm Wall StreeL" Adds Mr. 

 GUmore, the Caiilu.-nia adviser: 'The guy 

 makes some great deals, say whatyou will 

 about him." 



At a New York lunch last year, Mr. 

 Hurwitz was surrounded by admiring Wall 

 Streeters. According to attendees, Mr. 

 Hurwitz took in the plaudits and observed: 

 "Wait till you see what happens with 

 Pacific Lumber - it's going to be worth a 

 whole lot more than you think ... a 

 whole lot" 



He may have been thinking of the 

 Headwaters Forest in California, 



High in the mountains above For- 

 tuna, 4,500 acres of giant ancient red- 

 woods and Douglas firs tower above a 

 crystal torrent called Salmon Creek. 



For neariy five years, Mr. Hurwitz has 

 been threatening to log in the Headwa- 

 ters unless he is paid big money. Privately, 

 some of his advisers concede they probably 

 couldn't cut there because of the environ- 

 mental outcry it would provoke. Yet his 

 lobbyists have been trying to work out a 

 deal with the federal government under 

 which Mr. Hurwitz could get roughly S500 

 million for the Headwaters. Maxxara paid 

 S900 million for all of Pacific Lumber, 

 including its 196,000 acres of prime timber- 

 lands, of which Headwaters represents 

 only a small fraction. 



At today's high prices for top-grade 

 redwood, some timber specialists figure 

 the trees may indeed be worth S600 million: 

 others say that figure is grossly inflated. 



