By Steve Ongerth - From the book, Redwood Uprising: Book 1
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“We have to act now…Less than five percent of the original old growth forest remains, and a lot of wildlife and plant species are going to extinction in the next five years if they don’t get this protection. We can’t wait. The forest destruction here is just as bad as in the Amazon rain forest. But we don’t have as much forest left as they do. This is our last chance to save what’s left.” [1]
— The Man Who Walks in the Woods.
“While current law calls for protection of the environment and the sustained yield of high quality timber products, it frustrates any attempt to actually achieve these goals.
Under current law, actual forest practice rules are written by a state board of forestry completely dominated by timber industry representatives. And administration of the law is left exclusively to the California Department of Forestry, an agency that one local judge has called a ‘rubber stamp’ for logging companies The current rules that regulate logging practices would not protect the resource even if they were enforced. And they are not being enforced. CDF has systematically prevented other state agencies from playing a role in reviewing timber harvest plans submitted under the act.” [2]
—Richard Johnson, Mendocino Country Environmentalist.
At the same time the “Laytonville Lorax War” was taking place, the continuing legal battles against Maxxam raged on. Woody and Warren Murphy as well as Suzanne Murphy-Civian, represented by their friend Bill Bertain, sued Maxxam and Charles Hurwitz yet again, this time alleging that Drexel Burnham Lambert (DBL) working through Ivan Boesky had engaged in illegal stock parking. According to the suit, prior to Hurwitz’s tender offer to the P-L board of directors in October 1985, Boesky effectively owned as much as 10 percent of the company’s stock, thus violating the Hart-Scott-Rodino act of 1984. This information had not been revealed until findings by the SEC were made public in 1988. Had the shareholders known about this, they would have had a stronger case against the merger originally. The Murphys’ suit demanded $18 million in damages to all of the shareholders who owned stock prior to the sale, charging that had the directors known of Boesky’s and DBL’s activity, they would have valued the company’s stock at roughly $70 per share instead of the $40 finally offered by Hurwitz. [3]
Meanwhile, having been rebuffed by the NLRB, and having lost the support of a great many formerly enthusiastic employees, Patrick Shannon chose to take a different route to try and realize what many had concluded was a pipedream. The ESOP organizer now proposed that a initiative be placed on ballot for November 1990 that would seize ownership of Pacific Lumber from Maxxam and place it in the hands of the company’s workers. The measure, tentatively called the Timber Bond Act, would raise $940 in bonds and pay Maxxam for the purchase of the firm. It also called for the setting aside of 3,700 acres of old growth redwoods including Headwaters Forest. Under the plan, the employees would recompense the taxpayers of California by repaying the bonds at 9 percent interest. The measure allowed 40 years to complete that process, but Shannon estimated that this would require a total of 15 years at most. After that, should the purchase be paid in full, additional moneys raised would be deposited into a revolving account from which other potential ESOP campaigns could seek loans. [4]
As was expected, Corporate Timber did not respond favorably to Patrick Shannon’s effort. Pacific Lumber spokespeople framed the initiative as a backdoor attempt at “Communism”, knowing full well that such efforts would have little support in the dying days of the Soviet Union and the latter’s waning political influence over Eastern Europe.