541 



Senator Murkowski. And how does that process — well, you must 

 have thought about it — how does it work? You have employees to 

 take care of and consider. 



Mr. RoppEL. That is one part of it. The damage that we would 

 have to seek would be the damages on the part of our corporation. 



I am not sure whether we can seek damages on the part of our em- 

 ployees. We do not think that we could seek damages on behalf of 

 the community, other than where we were involved in a long-term 

 contract with an obligation to supply a certain amount of funding. 

 So, the damages that we would seek would be for those the compa- 

 ny has, as it suffers financial damage as a result of the cancellation 

 of the contract. 



Senator Wirth. In other words, if you have 15 years left, or 20 

 years, and you were making so much each year, theoretically you 

 would go in to negotiate from that point, plus an appreciated value 

 of your mill? 



Mr. RoppEL. Plus, yes. 



Mr. Murkowski. I wonder if we can get for the record. Senator 

 Wirth, the losses the company has sustained, roughly, since they 

 have been in business because it is my observation that the Japa- 

 nese have a little different philosophic application due to an invest- 

 ment than some of the more direct U.S. investment policies, like 

 corporations have where they lose money and they shut her off and 

 walk away. Do you think you could give us a little reference on it 

 as a result of the change while you stayed in business? 



Mr. RopPEL. The company had a history of on and off profitabil- 

 ity from the time we started in 1960 until about 1979. 1979 was the 

 last profitable year the company had until this year, until the year 

 that just ended, and we will finish up this year with a modest 

 profit. We suffered losses that were well over $40 million in two of 

 the years that we operated. I think that was 1984, 1984, and 1985. I 

 do not remember the exact year, but it was within that period we 

 had losses. Most American corporations, in my experience, would 

 have said, "Enough is enough," and shut down. 



Senator Wirth. Now, you indicated you had losses for 9 or 10 or 



II years? 



Mr. RoppEL. Since 1980 to 1988. 



Senator Murkowski. And how much did you lose during that 

 period, roughly? 



Mr. RoppEL. In excess of $150 million. 



Senator Murkowski. Now, if you lost $150 million, Why did not 

 you shut her down? 



Mr. RoppEL. That is a good question. I do not know. I would have, 

 if it been my decision. 



Senator Murkowski. Obviously, for whatever it is worth, Mr. 

 Chairman, it is an emotional interpretation, but I have heard some 

 of the Japanese owners express an obligation to the people, not 

 only in Southeast Alaska but, more appropriately, to this communi- 

 ty. Just take that with a grain of salt, but I think it is appropriate 

 because if you are running that corporation I am sure, in looking 

 at losses of over $150 million in a 10-year period, you would decide 

 to do something else with your time and money. 



Thank you, Mr. Chairman. 



Senator Wirth. Who are the owners of the mill? 



