573 



Mr. Metcalf. Not that I am aware of. 



Senator Wirth. Do you know anything about the Shee Atika 

 trade on Admiralty Island? 



Mr. Metcalf. Yes. 



Senator Wirth. Were you here during the discussion we had ear- 

 lier about that trade? 



Mr. Metcalf. Yes, I was. 



Senator Wirth. Is there anything else to that story that did not 

 appear in the discussion that we had here? 



Mr. Metcalf. Yes, I think so. There was some very valuable land 

 that was identified for trade for Shee Atika. Some of that land was 

 around Sitka, some of it a LUD 2 in the Bay of Pillars. Essentially, 

 as I understand it, the parties that were in that discussion about 

 the trade said it, the LUD 2 and the area around Sitka, would not 

 be adequate to compensate Shee Atika. 



Right at that point I believe Senator Murkowski either sponsored 

 or favored blindly wording that would have resulted in additional 

 road credits for the mill, some $41 million the first year and $20 

 million the second year, and it was felt by all parties that I was 

 involved with that that had absolutely no business in the Shee 

 Atika land trade bill and the parties walked away from the land 

 trade at that point. So, I guess there is a different perspective as to 

 why that agreement fell apart. 



Senator Wirth. I have another question. You talked about phony 

 companies being set up by the two mills. When were those phony 

 companies 



Mr. Metcalf. In the 1960s. 



Senator Wirth. That doesn't exist anymore? 



Mr. Metcalf. No, not that I am aware of. 



Senator Wirth. When did they stop existing? 



Mr. Metcalf. I am not sure. 



Senator Wirth. Were those phony companies operating during 

 the long term contract? 



Mr. Metcalf. Yes. 



Senator Wirth. Has that been documented, that those phony 

 companies existed? 



Mr. Metcalf. Yes, sir. 



Senator Wirth. Where is that documentation? 



Mr. Metcalf. I am sure that it is in the Reid Brothers suit and 

 the Justice Department has that information and the Forest Serv- 

 ice has it. 



Senator Wirth. Again, looking at these contracts and whether or 

 not those ought to be terminated and, if so, if they can be terminat- 

 ed for cause or terminated for public interest, there are categories 

 of termination and sometimes it is easier to terminate than others. 

 One of the easiest ways to terminate is to show that the parties to 

 the contract have violated the contract. Part of my discussion earli- 

 er, I had earlier with Mr. Roppel. Do you know of any other viola- 

 tions that ought to be part of the record? 



Mr. Metcalf. There are a lot of alleged ones but none I personal- 

 ly know about. 



Senator Wirth. None that are documented other than the ones 

 we talked about previously this morning, the three, the charges 

 earlier, and then the phony companies, and the Reid Brothers? 



