47 



areas where the fires will occur. Obviously, if we cut all the forests 

 down, they would not have a fire problem. I guess that is the gist 

 of that particular issue. 



So I think it is sort of scapegoating the salvage problem or the 

 degree of harvest with the fires. In other words, I do not think that 

 there is much, if any, correlation between them, but nevertheless, 

 it is an attempt to try and superimpose an event that is obviously 

 negative and put it at the feet of the amount of salvage that takes 

 place. 



Mr. Mayr, I read your statement and the progress of your com- 

 pany and so forth, the development. It is very interesting in terms 

 of its history. But you point out in here you are 95 percent depend- 

 ent upon the Olympic National Forest for harvest. 



Mr. Mayr. We were. 



Mr. Vento. But you suggest that that was the predicate. Does 

 your corporation or company or your entity specifically have under 

 contract the contracts you were talking about, or were they indi- 

 rectly under contract? 



Mr. Mayr. No. We were 95 percent dependent upon national for- 

 est timber for the mill. At the time we took out the loan, the con- 

 tracts I am speaking were in the name of Mayr Brothers. We actu- 

 ally had 



Mr. Vento. They were your contracts? 



Mr. Mayr. Yes. Some of the contracts are harvested. Some of 

 them have roads built. In fact, one of them actually has timber that 

 has been on the ground since 1991. 



Mr. Vento. Is your concern here with regards to the fact that the 

 Farmers Home Adminstration did not do diligence with regards to 

 your loan? 



Mr. Mayr. No. 



Mr. Vento. Or you did not do diligence with regards to your 

 loan? 



Mr. Mayr. We did. 



Mr. Vento. Or the Forest Service is supposed to do diligence 

 with regards to your loan? 



Mr. Mayr. No. Everyone did the due diligence. It is the fact that 

 the Forest Service has not performed on the contracts. 



Mr. Vento. I think that all the laws are in effect that affected 

 this. For instance, we talked about NEPA and we talked about the 

 Forest Management Act and the Endangered Species Act. All of 

 those were in law in 1990, were they not? 



Mr. Mayr. Right. But what I am speaking to is the fact that the 

 Forest Service owes us damages. They have admitted 



Mr. Vento. Well 



Mr. Mayr. No. They have admitted such. We have had offers 

 from them. They have admitted they owe us damages, but they 

 have not done the honorable thing and paid them. 



Mr. Vento. In other words, they have not come to a negotiated 

 agreement with you? Is that what your contention is, is that they 

 should come to a negotiated agreement with regards to your 



Mr. Mayr. They should either honor the contract by letting us 

 harvest it, they should cancel the contract 



