Hurwitz, Pacific Lumber is cutting Headwaters
lrlake at aol.com
Thu Mar 5 12:26:34 EST 1998
Camillia's analysis of the following situation is right on. I have followed
the issue since the acqusition ('87 or'88?). As a Libertarian and forester, I
find the basic structural and economic weakness of our systen apalling.
Converting resources to $ in this context (and at this rate) does a disservice
to us all. Yea, it's legal but unethical.
Lawrence Lake, RPF
Sorry about the long quote for those who are current....
>On 3/4/98, dstaples at livingston.net wrote:
>>> When Maxxam acquired PL, Charles Hurwitz had already planned to log at the
>>> maximum rate possible. No environmentalists involved. Take a real look
>>> man you're defending. (http://www.jailhurwitz.com) I pray that there are
>>> or no other forest owners that are like him. I find it criminal that
>>> can buy a company and in essence steal the workers' pension funds.
>>> 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
>>> 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
>>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
>"IMHO." Furthermore, nowhere did I mention any indictments, prosecution or
>No emotional diatribe - here are the facts involving PL's pension fund, to
>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
>his intention to solicit bids from solid, well established insurance
>including Aetna, Equitable, Metropolitan Life and Prudential. PL's CFO was
>instructed by Maxxam's CFO to also solicit a bid from Executive Life.
>research which showed that Executive Life was the weakest and least reliable
>the five companies giving bids, and over the objections of PL's CFO,
>Life was selected as the insurance company to be used for PL's retirement
>reorganization. According to the Executive Life consultant in the deal,
>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
>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
>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
>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
>>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
>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,
>based upon the land's fair market value, which in this case would be $20
>>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
>Civility and good manners are always preferable, IMHO. And, yes, I find name
>calling to be counter productive to communication. However, I will admit
>Charles Hurwitz gets my goat and I'm not above calling him names out of my
>The skillet calling the pot calling the kettle is just as ridiculous as the
>calling the kettle. .
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