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Harry Merlo

IWW WISERA Environmental Committee and NARA IWW EUC Reading Group 2: Notes from Hell

Fellow Workers (and fellow travelers, too!)

We are inviting you to the second session of our monthly, online reading group dedicated to discussing the work of and writings by IWW Organiser and Earth First! environmental activist Judi Bari.

The texts we will be reading and reviewing are Notes From Hell - Working at the L-P Mill, by Judi Bari [By Judi Bari - Anderson Valley Advertiser, April 17, 1991; Reprinted in Timber Wars, © 1994 Common Courage Press] and its companion piece, Judi Bari interviews Louisiana Pacific Mill Workers [Transcript of a KZYX FM radio interview; Reprinted in August 1992 issue of the Industrial Worker].

This meeting will be held on zoom.  Register here.

Chapter 3 : He Could Clearcut Forests Like No Other

By Steve Ongerth - From the book, Redwood Uprising: Book 1

Download a free PDF version of this chapter.

“Come to light: L-P’s literally poisonous policies literally poisoning forest workers. Has any other business a higher profit-to-wages ratio? And yet, are any local workers at higher risk? Where’s the IWW? The first Wobbly who writes in gets a free lunch, courtesy of RADIO * FREE EARTH.”

—Marco McClean, Mendocino Commentary, April 18, 1985.

Harry Merlo is one of the highest paid executives in the industry. He makes $353,000 and he just got a 10 percent raise”

—Harold Broome, carpenter.

“Harry was down to see the strike in his mink coat the other day.”

—Walter Newman, spokesperson and business representative for Lumber Production and Industrial Workers Union Local 2592.

Americans are raised on the mythology of the “self-made man”, the “enterprising go-getter” archetype who creates his own fortune and charts his own destiny. Very often he faces incredible odds, and, armed only with his wits and will to succeed, he alone overcomes disadvantages to become a leader among his fellow Americans. The gender specific pronoun is intentional, because in these stories, women more often than not play a subordinate role. There is an element of “pioneer” spirit within this narrative, and this is not entirely coincidental, because much of the narrative stems from the European-American subjugation of indigenous peoples and the wild. This archetype certainly matches the description of most “captains of industry”, particularly railroad bosses, oil magnates, and timber barons. There is more than folktale about such individuals. Indeed there is a strong ideological component to them, a personification of capitalism, perhaps expressed most unapologetically, albeit crudely, in the narratives of Ayn Rand, particularly Atlas Shrugged or The Fountainhead.

Whether fact or fiction, in these narratives, the entrepreneur is always the hero—virtuous to the core—and he is held up as an example to the rest of us to follow. Very often they not only rely on their own means, they often struggle against a cool and callous society, usually personified by a bureaucratic government, who appropriates some or all of the hero’s self-made fortune to serve its own political ends. What these stories consistently omit, is that most often these “conquering heroes” are neither self-made nor are they virtuous. They often lie, cheat, bend or break the rules, stab those close to them in the back, and rely on the benefits provided by the very same “government” they decry when it doesn’t serve their every need. They appropriate the fruits of others’ labor and call it their own. If there are consequences to their actions, they are shifted to the general public, usually upon the backs of those most unable to resist. And, it is the richest and the most powerful among them who commission the narratives that celebrate their triumphs, sanitizing their own histories so that it is difficult to tell what constitutes fact or fiction.

Harry A. Merlo Jr. was such a man. He began his career as a shipping foreman at a small, independently owned mill, advanced to partner, and then, after the mill was bought out by Georgia Pacific (G-P) he quickly moved up ranks of the G-P corporate structure.[1] Georgia Pacific spun off Louisiana Pacific (L-P) as a result of an antitrust suit brought by Boise Cascade (B-C) against the former for monopolistic practices in 1973. The Federal Trade Commission had threatened to break up the former for monopolizing the timberlands of northwestern California after acquiring holdings formerly held by Boise-Cascade, including the Fort Bragg California mill.[2] Merlo took over as head of the newly created L-P, and, under his management, the latter quickly expanded to become the second largest lumber company in the United States with 110 plants and at least 13,000 employees nationwide, with annual sales in excess of $1 billion.[3] Despite Merlo’s reputation as a self-made man, he received achieved many of his “successes” on the backs of others.

Chapter 2 : Pollution, Love it or Leave it!

By Steve Ongerth - From the book, Redwood Uprising: Book 1

Download a free PDF version of this chapter.

"Since when are humans solely a biological product of wilderness? (What is ‘wilderness’?) If you accept an evolutionary development of Homo sapiens, as I do, it does not mean that you profess a disbelief in God. Quite the contrary. It was God, the Creator, who created humans, who imbued them with a will, with a soul, with a conscience, with the ability to determine right from wrong. It is inconceivable that the Creator would create such vast resources on earth without expecting them to be utilized."

—Glenn Simmons, editor of the Humboldt Beacon and Fortuna Advance, February 1, 1990.

"Growth for the sake of growth is the ideology of the cancer cell.

—Edward Abbey

Earth shattering though it may have seemed, the IWW’s victory was both transitory and incomplete, and historical currents would never again mesh as perfectly. To begin with, the strike on the job had taken place only in the Pacific Northwest, and had excluded California at that. The Wobblies recognized one strategic weakness in this situation in noting that the employers could have eventually organized a lockout of that region and relied instead on wood production from the southern or eastern United States. They knew—in the abstract at least—that their victory would never be complete until they organized all lumber workers nationally and internationally.[1] The Wobblies inability to make inroads among the highly skilled redwood loggers of California’s North Coast was especially troublesome, and it portended their undoing. Two companies, Pacific Lumber (P-L) and Hammond Lumber Company (HLC) had each adopted separate techniques that had kept the IWW out and would soon be duplicated by the Lumber Trust elsewhere. That combined with the much larger shockwaves brought on by the Russian Revolution in 1917 conspired against the One Big Union and led to the eventual decline of the American working class as an adversarial force and the liquidation of the forests of the Pacific Northwest.

Although most corporations comprising the Lumber Trust had refused to budge, lest they embolden the Wobblies, there were those that adopted “welfare capitalism” on their own initiative, in which they would provide amenities and benefits to their workers—union or not—in an attempt to win over their loyalty. It was in the crucible of timber worker unionism, Humboldt County, where this was first attempted with any lasting success, by the Pacific Lumber Company (P-L), based in Scotia, beginning in 1909. P-L had discovered that by creating a wide variety of social programs, employee benefits, and community based events, it was able to secure the loyalty and stability of its workforce. P-L general manager A. E. Blockinger described these efforts in great detail in an article featured in the Pioneer Western Lumberman:

"A reading room with facilities for letter writing and any games, except gambling, is easily and cheaply put into any camp. Arrange subscription clubs for papers and periodicals or let the company do it for the men. If you can have a circulating library among your camps and at the mill plant, it will be much appreciated. Let the daily or weekly papers be of all nationalities as represented in your camp. Lumber trade journals are especially interesting to the men and they can and will readily follow the markets for lumber and appreciate that you have some troubles of your own.

“Organize fire departments among your men. The insurance companies will give you reductions in rates for such additional protection while it offers another opportunity for your men to relax and enjoy themselves.

“Shower baths at the camps or mill are easily and cheaply installed. They will be used and appreciated after a hot, dusty day’s work.

“Get your men loyal and keep them so. Let this replace loyalty to a union. The spirit is what you want in your men. Ten good men will accomplish as much as fifteen ordinary laborers if the spirit and good will is there. Treat them right and they will treat you right.”[2]

The employers’ introduction of paternalism achieved its intended goal. The Secretary of the Pacific Logging Congress, an employers’ association had declared in his 1912 report, “The best cure for the IWW plague—a people without a country and without a God—is the cultivation of the homing instinct in men.”[3] When the IWW campaign for the eight hour day ensued in 1917, P-L simply added more programs. Carleton H. Parker, a onetime U.C. Berkeley economics professor working for the War Department as a mediator during the lumber workers’ strike, had previously conducted sociological studies on workers, including agricultural and timber laborers. Parker was familiar with P-L, and had some fairly extensive knowledge of the Wobblies.[4] Some of the latter had been gained through first-hand studies by two of his assistants, Paul Brissenden[5] and F. C. Mills[6] who had posed as IWW members and later produced extensive studies on the organization. Using this knowledge, Parker offered many suggestions to Disque which the latter somewhat reluctantly adopted. The LLLL created social halls for its members and replaced the employment sharks with free employment agencies. The IWW quite rightly recognized these amenities as a means to buy the workers’ loyalty and likely to be liquidated when the employers drive for profits once again accelerated, but this process would take a long time, and convincing the workers of a threat that could take one or more generations to manifest proved futile.[7]

Chapter 1 : An Injury to One is an Injury to All!

By Steve Ongerth - From the book, Redwood Uprising: Book 1

Download a free PDF version of this chapter.

The mill men all insist on one thing: that the Government will grant the manufacturers protection from the lawless element of the I.W.W.’s”

—J. P. Weyerhaeuser, 1917

Is there aught we hold in common with the greedy parasite,
Who would lash us into serfdom and would crush us with his might,
Is there anything left to us but to organize and fight?
The union makes us strong…

—Lyrics excerpted from Solidarity Forever, by Ralph Chaplin, ca. 1915

The timber industry has, throughout nearly its entire history, been in the control of an elite minority of the very rich and powerful, and they have been especially avaricious, violent, and repressive towards all who would challenge their power. They have also—in spite of a barrage of slick propaganda trumpeting their careful management of the resource—depleted most of the virgin forests of the Pacific Northwest. Many environmental organizations can trace their origins to opposition to such practices, and in the struggles by environmentalists to preserve forestlands, timber workers have had a reputation for being their fiercest adversaries, and in many cases, this is true. Timber workers have a well deserved reputation for being outspoken about the pride of purpose in their job, as well as a deeply ingrained cultural machismo. Yet lumber harvesting and production is historically one of the ten most dangerous jobs in the industrialized world, and timber workers are among those most exploited by their employers. One would logically expect the timber workers to be highly resistant to such treatment, but in recent years they haven’t been. This wasn’t always so. To understand why, one must examine the industry’s origins.

Before the arrival of European-American settlers to the Pacific Northwest, the entire region stretching from northern California to Canada and Alaska from the Pacific Coast to the Rocky Mountains was dominated by coniferous old growth forests. At least 20 million acres of this land was forested, dominated by various species of trees, some of them hundreds of feet in height, over a dozen feet in diameter, and centuries or even millennia old.[1] In the southwestern part of this region, stretching from Big Sur to roughly what is now the Oregon state line, in a belt that was at least twenty miles wide for most of its expanse a very unique species of tree dominated, Sequoia sempervirens, commonly known as the California redwoods, some of them standing over 350 feet tall. Their close (and similarly large) cousins, Sequoiadendron giganteum, better known as the Giant Sequoia, only grew in a few isolated spots in the southern end of the Sierra Nevada foothills. These vast forests were far more then the trees, however. Hundreds, if not thousands of plant and animal species lived and flourished within these wooded habitats, and as far as is known, the indigenous population of the Americas had no significant lasting impact on California’s ancient redwood forests, nor did they have any lasting effect on the timberlands of the Pacific Northwest in general.[2] Like the Native Americans, the old growth forests of the Pacific Northwest had remained left more or less untouched for thousands, if not hundreds of thousands of years.

The coming of the white man changed all of that. The Russians first began exploiting the redwoods for the construction of Fort Ross in 1812, during their very brief settlement there.[3] As more Europeans arrived, the forests south of San Francisco were the first to be logged, usually through clearcutting, until these ancient stands were completely liquidated by 1860. In those days, loggers used hand saws, and felling an ancient redwood could take anywhere from two-to-five days to complete. The redwoods to the north of the Golden Gate in what is now Marin County were logged next, especially along rivers that allowed easy transportation by the available modes of the day. By this time, around 1881, the steam engine had replaced pack animals. Though this first wave of automation did not have a significant impact on the number of workers involved in the logging process, it greatly increased the impact logging had on the redwoods. Entire forests were liquidated, no matter how small the tree, because even the baby trees were used to build the skid roads used for hauling the larger ones. These forests were never replanted, and very few of them grew back, and in some cases, farmlands replaced them. By the beginning of the 20th Century, all but a few of these ancient trees were gone and logging operations migrated north to Sonoma County. One quarter century later, most of these old growth forests were likewise gone.[4]

Redwood Uprising: Introduction

By Steve Ongerth

Download a free PDF version of this chapter.

The arc of history is long, but it bends towards justice.

—Martin Luther King Jr.

I know, I know. I need to write a book about all this. Fighting to save the redwoods, building alliances with the loggers, getting car bombed and finding out what we’re up against not just the timber industry but also the FBI. Then coming back home and ending up back on the front lines again. I fully intend to write about it eventually, but it’s hard to write about something when you’re still in the middle of it.”

—Judi Bari, introduction to Timber Wars, 1994

“All this,” is a very complex and intriguing story (not to mention a call to action), and while most people have never heard it, a great many are at least partially aware of its defining moment.

On the morning of May 24, 1990, two activists, Judi Bari and her friend and comrade Darryl Cherney, set out from Oakland, California, while on a tour to organize support for a campaign they had organized called Redwood Summer. They were part of the radical environmental movement known as Earth First!, which had a reputation for militant tactics, including the sabotaging of logging and earth moving machinery as well as spiking trees—the act of driving large nails into standing trees in order to deter logging operations. The previous year in Arizona, five environmentalists, including Peg Millett and Earth First! cofounder Dave Foreman, had been arrested and charged by the FBI for a conspiracy to sabotage power lines in protest against nuclear power. Some welcomed Earth First!’s uncompromising reputation. Others denounced them as reckless, or even as terrorists.

According to the mainstream media, Earth First!’s radical agenda earned them the animosity of the timber workers whose jobs the environmentalists supposedly threatened. They were described as “outside agitators” (among many other things) who had “polarized” the timber dependent communities of northwestern California’s redwood region—historically known as the “Redwood Empire”, but more recently as the “North Coast”—with their militant and uncompromising “environmental extremism.” Their alleged hard-line anti-logging stances were seen as too extreme even by most environmentalists, and they supposedly stood upon the radical fringes of the ecology movement. Redwood Summer was reportedly planned as a summer-long campaign of direct actions by these “fringe” environmentalists to thwart the harvesting of old growth redwood timber in northwestern California, specifically Humboldt, Mendocino, and Sonoma Counties.

On May 24, however, Bari’s and Cherney’s planned destination was Santa Cruz County, where—just one month previously—power lines had supposedly been sabotaged by unknown perpetrators calling themselves the “Earth Night Action Group”. Just before 11:55 AM a bomb in Bari’s car exploded, nearly killing her and injuring Cherney. Within minutes the FBI and Oakland Police arrived on the scene and arrested both of them as they were being transported to Highland Hospital. The authorities called them dangerous terrorists and accused the pair of knowingly transporting the bomb for use in some undetermined act of environmental sabotage when it had accidentally detonated. The media spun the event as the arrest of two potentially violent environmental extremists.

Redwood Uprising: From One Big Union to Earth First! and the Bombing of Judi Bari (Steve Ongerth)

Introduction
Chapter 1 : An Injury to One is an Injury to All!
Chapter 2 : Pollution, Love it or Leave it!
Chapter 3 : He Could Clearcut Forests Like No Other
Chapter 4 : Maxxam’s on the Horizon
Chapter 5 : No Compromise in Defense of Mother Earth!
Chapter 6 : If Somebody Kills Themselves, Just Blame it on Earth First!
Chapter 7 : Way Up High in The Redwood Giants
Chapter 8 : Running for Our Lives
Chapter 9 : And they Spewed Out their Hatred
Chapter 10 : Fellow Workers, Meet Earth First!
Chapter 11 : I Knew Nothin’ Till I Met Judi
Chapter 12 : The Day of the Living Dead Hurwitzes
Chapter 13 : They’re Closing Down the Mill in Potter Valley
Chapter 14 : Mother Jones at the Georgia Pacific Mill
Chapter 15 : Hang Down Your Head John Campbell
Chapter 16 : I Like Spotted Owls…Fried
Chapter 17 : Logging to Infinity
Chapter 18 : The Arizona Power Lines
Chapter 19 : Aristocracy Forever
Chapter 20 : Timberlyin’
Chapter 21 : You Fucking Commie Hippies!
Chapter 22 : I am the Lorax; I speak for the Trees
Chapter 23 : Forests Forever
Chapter 24 : El Pio
Chapter 25 : Sabo Tabby vs. Killa Godzilla
Chapter 26 : They Weren’t Gonna Have No Wobbly Runnin’ Their Logging Show
Chapter 27 : Murdered by Capitalism
Chapter 28 : Letting the Cat Out of the Bag
Chapter 29 : Swimmin’ Cross the Rio Grande
Chapter 30 : She Called for Redwood Summer
Chapter 31 : Spike a Tree for Jesus
Chapter 32 : Now They Have These Public Hearings…
Chapter 33 : The Ghosts of Mississippi Will be Watchin’
Chapter 34 : We’ll Have an Earth Night Action
Chapter 35 : “You Brought it On Yourself, Judi”
Chapter 36 : A Pipe Bomb Went Rippin’ Through Her Womb
Chapter 37 : Who Bombed Judi Bari?
Chapter 38 : Conclusion

This entire book and all of its chapters are also available for viewing at judibari.info.

Eco Wobblies: Revolutionary Ecology and the Development of Earth First!-IWW Local #1

By Michael Gonzales - dissertation - May 19, 2017

Environmental historians have shown that the development of the modern environmental movement has been marked by a perceived tension between the interests and attitudes of workers and those of environmental activists. This paper details an important exception to that trend. In late 1989 members of the radical environmental group Earth First! joined with lumber workers in Northern California to form Earth First!-IWW Local #1.

In the words of Local #1 leader Judi Bari, this labor union acted as a “bridge between environmentalists and timber workers.” This essay examines the factors that brought workers and environmental activists together in this short-lived experiment in what some have termed “green syndicalism.” This essay utilizes archival documentary evidence and the accounts of movement activists to demonstrate a more complex relationship between Earth First! and the IWW (and between labor and environmentalism in general), with deeper historical roots than has been previously understood In doing so, this essay challenges the assumptions of the environment versus labor dichotomy and suggests the potential for solidarity and cooperation between environmentalists and workers.

Read the Report (PDF).

Earth First! in Northern California – Interview with Judi Bari

By Douglas Bevington, Summer 1993 – reprinted in The Struggle for Ecological Democracy

Douglas Bevington: Please describe the region in which you are organizing and that region’s key players. How far do your activities and influence extend?

Judi Bari: The area is the northern California red-wood region, which at this point is mostly Mendocino and Humboldt counties. It’s a big, sprawling area, rugged and sparsely populated. There are only 80,000 people in Mendocino County, where I live, and there are no large towns, no urban centers. Humboldt is a little different be-cause they have a university, Humboldt State, and a large town, Eureka. Both counties are rural impoverished areas. Our county governments are broke. They are closing down libraries and cutting back on police. Because of this, and because of the lack of urban influence, there is kind of a “wild West” mentality. There are some towns—Whitethorn and Covelo come to mind—that are virtually lawless areas, over two hours’ drive from the nearest sheriff’s deputy.

There are three main corporations in the redwood region. Louisiana Pacific (L-P) is the biggest redwood landowner, with 500,000 acres spread over the entire area. Tied for second are Georgia-Pacific (G-P), which owns 200,000 acres in Mendocino County, and MAXXAM, which owns 200,000 acres in Humboldt.
L-P has been around since 1975, and they’ve been liquidating ever since they’ve been here. Last year, they even admitted that 90 percent of their marketable trees in this county have already been cut. They are a cut-and-run company and they are almost done. G-P has been here a little longer. G-P has just one big sawmill and it’s still running. But most of their timberlands have been clearcut. They are about 70 percent done, so it’s just a matter of time.

MAXXAM is probably the best known of the three companies, mostly because of its outrageous financial practices. The 200,000 acres now owned by MAXXAM used to be owned by Pacific Lumber Co. (PALCO), a 120-year-old locally owned company, one of the oldest in the area. PALCO didn’t clearcut, and they had the closest thing to sustainable logging practices around. Because of this, they have the most old growth left. They have the best of what is left in the world. But in 1986, MAXXAM Chairman Charles Hurwitz, a corporate raider from Texas, took over PALCO in a forced junk bond buy-out scheme and then tripled the cut of old-growth redwood to pay off their junk bonds. This area has had pretty much a singular economy based on timber. Many of the logging families here go back five generations. Everybody knows each other, everybody grew up together and often are related to each other. It’s hard to understand the phenomenon of the company town until you live in one. King Timber controls all aspects of the society—the jobs, the schools, the hospital, the newspaper, and the police.

This singular economy and isolated rural culture got interrupted around 1970, when the back-to-the-land hippies moved in with their politically sophisticated, radical urban culture. What the hippies do for a living is grow the best marijuana in the world. In the mid-1980s, they actually included marijuana in the agricultural report of Mendocino County and found that it was the biggest cash crop, bigger than timber. This gives people a way to live in this area without being economically dependent on timber. Because timber is such a fluctuating market of booms and busts, during the low periods it is the marijuana money that keeps the towns going. Garberville, in southern Humboldt County, is probably the best-known local town built up with marijuana money. Many early growers used their money to open “legitimate” businesses. As the hippies gained economic influence, they also gained political influence, including passing voter referendums on local issues and electing candidates to the Board of Supervisors.

So, we basically have a bipolar social situation, with the hippies and the loggers. Of course, there are other social/cultural groups in our community, including Mexicans, Indians, fishermen, etc. But the main players in the Timber Wars are the hippies, the loggers, and, of course, the big timber corporations.

Judi Bari interviews Louisiana Pacific Mill Workers

Transcript of a KZYX FM radio interview; Reprinted in August 1992 issue of the Industrial Worker.

Mill workers Don Beavers and Randy Veach have worked in the non-union Louisiana Pacific mill in Ukiah for 15 and 14 years, respectively. This KZYX FM radio interview with Judi Bari took place a few days after they publicly criticized the company for safety violations in the local media.

Judi Bari: I think a lot of people listening have never worked in a plant anything like L-P. Could you start by describing what it's like to work there?

Don Beavers: First of all, we're Graders, so it's our job to grade the lumber. We stand up all day, we breathe sawdust and dirt all day--it comes off the lumber. About every 2 seconds we have to turn over a board and grade it...

Randy Veach: ...as it's coming down the chain, it's constantly moving.

Don Beavers: It continually moves. It doesn't stop. They put in some new machinery a few years back and so now we not only have to turn over one board and grade it, but we have to split that board sometimes and put two grades on one board with trim marks and all kinds of stuff. So we don't have a whole lot of time to do this...

Randy Veach: ...but we're expected to do it...

Don Beavers: ...and on top of that they change our marks and make new grades for us all the time, and they don't give us time to get used to this, they don't do anything but speed it up.

Randy Veach: You're expected to do exactly what they tell you to do without any argument.

Don Beavers: All the time, for eight hours a day, five days a week, day in and day out, every minute standing up working...turning lumber over, grading it.

Judi Bari: And they have bells for when you start, when you take your break and stuff...

Don Beavers: Whistles.

Randy Veach: ....or whistles, I mean really, a lot of people haven't experienced this kind of thing since elementary school, and I guess L-P is a little like elementary school in a lot of ways, but just presume you're talking to somebody that has no experience with this.

Don Beavers: No, I would say more like boot camp.

Randy Veach: Yeah, that's probably a better description.

Judi Bari: A bunch of elementary school kids in boot camp.

Don Beavers: We're expected to be at our work stations exactly when that whistle blows.

Randy Veach: We were late one time by 3 seconds to be at our work stations. This is a true story too. And we were told not to be late any more. And I was 15 feet from where I was supposed to be and I was on my way walking there... and the machine wasn't even running.... We get yelled at for things that are totally made up. The foreman looks for ridiculous things to yell at us for.

Don Beavers: And he apparently seems to enjoy it, that's why he does it.

Randy Veach: Exactly, it's his head trip, he enjoys yelling at people that's why he's a foreman.

Don Beavers: That's what they want, really. I guess.

Randy Veach: That's right. They intimidate the workers by fear and that's why they have him there. Everybody around here is so afraid that if something gets crossed up ...lumber gets crossed up... they will try to fix it without stopping the machine for fear of being yelled at by the foreman if they do not stop the machine. It's a constant environment of fear, totally.

What the L-P Memos Really Mean

By Judi Bari - Anderson Valley Advertiser, June 10, 1992 - Reprinted in Timber Wars, © 1994 Common Courage Press.

During last week's courtroom drama over the Albion logging protests, I attempted to testify about the L-P Memos. These memos, sent by L-P top-level executive Bob Morris to L-P president Harry Merlo, show the seedy underside of this depraved corporation's local practices. I say that I attempted to testify because L-P lawyer Cindee Mayfield objected to every word out of my mouth, and Judge Luther upheld most of her objections. No way did they want this information out on the streets. But that's why we have the AVA. So, Judge Luther, this is what I would have said if you had let me testify.

The L-P Memos were leaked to the press last January. They are a series of memos written over a three-year period from 1988 to 1991 in which L-P Western Division Resource Manager Bob Morris becomes increasingly critical of Harry Merlo's business practices, until Harry finally fires him. At the time the memos became public, there was much oohing and aching over the fact that L-P insiders were shown admitting privately what they were denying publicly: that L-P has vastly overcut the forest in the redwood region. But that's about as deep as the analysis of these memos ever went, and that's only half the story. The L-P memos are not environmental documents. They are economic documents, and they show that Harry was in it up to his ears.

The very first memo, titled "Long-Term Timber Purchase Agreement," describes a plan for Harry Merlo to pull off a private takeover of L-P similar to the MAXXAM takeover of Pacific Lumber. The plan was devised by Morris at Merlo's request. It called for Merlo to buy out part of L-P's Western Division, so that ownership would go to Harry Merlo as an individual, instead of the L-P stockholders as a public group. Apparently Harry was not satisfied with being president, CEO and chairman of the board of L-P. He wanted it all.

The takeover plan called for Harry to buy off the sawmills while leaving the timberlands to the stockholders. This would be easy to pull off, speculates Morris, because the stockholders will think they're getting the good end of the deal by keeping the timberlands, and will therefore sell the sawmills off for cheap. of course, as in all sleazy business deals, they would have to move quickly once they got their ducks in a row. otherwise an outsider (known as a "white knight" in corporate takeover parlance) could come in and snatch up Harry's deal by offering the stockholders more money. As Morris puts it: "The timing of a management-led buyout must be of short duration. It will focus attention on the company and this, coupled with our liquidity and low debt position, may attract outside participants."

"Objection!" piped up Cindee Mayfield when I got this far in my court testimony. "The witness cannot prove that this takeover plan was ever implemented." Naturally Judge Luther upheld the objection and I never got a chance to finish. But this is the whole point of the L-P Memos. Morris' disillusionment with L-P came as he watched Merlo set the stage for such a takeover, even though the final step of the buyout was never taken.

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