444 



loggers in the region. In addition, in its 1981 ruling in the 

 Reid Brothers case, a U.S. District Court found that APC and LPK 

 had engaged in a remarkable and extensive conspiracy to restrain 

 market competition for timber from the Tongass . The Ninth 

 Circuit subsequently affirmed this decision. On the issue of the 

 50-year contracts, the reform in S. 346 is long overdue. 



Ending a Failed Employment Strategy 



Even when measured against their original rationale of 

 supporting wood products industry employment, the Tongass Timber 

 Supply Fund and 50-year contracts have failed. The 1988 GAO 

 report confirmed that "[i]n the 6 years following the passage of 

 ANILCA, the Forest Service spent about $257 million to maintain 

 industry employment," but "Tongass timber industry employment 

 levels have declined by nearly 50 percent."® The dramatic drop 

 in wood products jobs in Southeast Alaska appears largely 

 attributable to a housing development slump in Japan, the 

 principal destination for most wood extracted from the Tongass. 

 In addition, some Alaska Native Corporations lately have been 



H. Rep. No. 100-600, Part 1, 100th Cong., 2d Sess. 21 

 (1988) . 



Reid Brothers Logging Company v. Ketchikan Pulp Company and 

 Alaska Lumber and Pulp Company , No. C75-165SR (W.D. Wash. 1981), 

 aff 'd . , 699 F.2d 1292 (9th Cir. 1983), cert, denied , 464 U.S. 916 

 (1983) . 



® GAO report. Part 1, 100th Cong., 2nd. Sess. 21 (1988). 



