Hurwitz, Pacific Lumber is cutting Headwaters

CamillaH camillah at aol.com
Thu Mar 5 04:33:40 EST 1998


On 3/4/98, dstaples at livingston.net wrote:

>CamillaH wrote:
>> 
>> When Maxxam acquired PL, Charles Hurwitz had already planned to log at the
>> maximum rate possible.  No environmentalists involved.  Take a real look at
>the
>> man you're defending.  (http://www.jailhurwitz.com)  I pray that there are
>few
>> or no other forest owners that are like him.  I find it criminal that
>someone
>> can buy a company and in essence steal the workers' pension funds.  Twice!!
>I
>> don't care if it's legal; there is no way to justify such actions!
>> Environmentalists for Headwaters only want 60,000 acres.  Charles Hurwitz
>took
>> over 200,000 acres from the Murphys.
>
>The URL listed above is the same one that demonized Hurwitz for the past
>year.  Unadultrated propaganda.  

Just because it's propaganda doesn't mean it is without basis.  You may not
like that URL, Don, but it has a comprehensive list of actions done by Mr.
Hurwitz.  If you know of another which is more accurate, please feel free to
advise.


>Criminal?  I ask the same  I did on
>this newsgroup several months ago.  Show me the indictments.  Show me
>the prosecution. Show me the jail time.  Not emotional diatribe, but
>evidence of prosecution.  Other wise, you should add IMHO to your posts.
>
First off, Don, I prefaced my statement with the phrase "I find" stealing of
pension funds to be criminal.  That phrase should be every bit as effective as
"IMHO."    Furthermore, nowhere did I mention any indictments, prosecution or
jail time.  

No emotional diatribe - here are the facts involving PL's pension fund, to the
best of my knowledge.  PL's treasurer/CFO was directed to decommission PL's
pension fund through an annuity from an insurance company.  PL's CFO announced
his intention to solicit bids from solid, well established insurance companies,
including Aetna, Equitable,  Metropolitan Life and Prudential.  PL's CFO was
instructed by Maxxam's CFO to also solicit a bid from Executive Life.  Despite
research which showed that Executive Life was the weakest and least reliable of
the five companies giving bids, and over the objections of PL's CFO, Executive
Life was selected as the insurance company to be used for PL's retirement fund
reorganization.  According to the Executive Life consultant in the deal, "...it
came down to a real dogfight at the end and many of the individuals [among
Maxxam's inherited Pacific Lumber executives] still did not come to an
agreement.  This was a decision that was just forced on them by Charles
Hurwitz."  (Executive Life was seized by the CA Insurance Commissioner.)  

The Oversight and Investigations Subcommittee of the House Committee on Energy
and Commerce held a hearing on the takeover of PL by Hurwitz and Maxxam.  In
that hearing, Charles Hurwitz said he would be happy to answer any questions he
could about Pacific Lumber's pension replacement, but it should be understood
that Hurwitz had been "very removed" from the process.  

If you are interested, Don, I will post what else I know that verifies Hurwitz
is not on the up and up.  It will take a fair amount of time and bandwidth (?)
to do, but I'd be happy to share the information with you as time permits. 
There has been no shortage of investigations and lawsuits involving Hurwitz and
Maxxam. 


>Environmentalists want for free that which Hurwitz bought, not stole, in
>the take over he bought stock.  Why do not the environmentalists set
>forth to perform the same operation on Hurwitz.  Buy him out.
>

The environmentalists' preferred option for Headwaters  has been a
debt-for-nature swap, wherein the 60,000 acres of the Headwaters Forest Complex
would be acquired by the government in return for forgiveness of the $1.6
Billion FDIC bailout debt Charles Hurwitz owes as a result of the United
Savings Association of Texas' failure.  



There was a very interesting segment on ABC's Prime Time Live tonight re
Headwaters.  Sam Donaldson asked why is the U.S. government paying to protect
trees which can't be legally cut anyway?  And also why in this deal is the
price affixed at $380 Million, when the standard by which the government
determines the value for land acquired through eminent domain, for example, is
based upon the land's fair market value, which in this case would be $20
Million?


>I don't defend the man, don't know him, but I am offended by the
>emotional name calling of the environmentalists.  Pot calling the
>kettle.

Civility and good manners are always preferable, IMHO.  And, yes, I find name
calling to be counter productive to communication.  However, I will admit that
Charles Hurwitz gets my goat and I'm not above calling him names out of my
frustration.    

The skillet calling the pot calling the kettle is just as ridiculous as the pot
calling the kettle.  .  


>Don Staples

Camilla




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