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Via Workers World News Service
Reprinted from the Sept. 18, 1997
issue of Workers World newspaper
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Maxxam vs. Headwaters

Cash-hungry investor threatens redwoods

By Amy Ng and Tahnee Stair in San Francisco

The 3,000-acre Headwaters forest on the coast of northern California is one of the last unprotected old-growth redwood forests on the planet. It is controlled by Pacific Lumber Co., which in turn is owned by the Texas-based MAXXAM Corp.

Environmental activists' pressures have led the federal government to prohibit logging of the Headwaters forest-- until Sept. 15, the day an endangered sea bird, the marbled murrlet, is supposedly done nesting there. On that date, MAXXAM's majority shareholder, Charles Hurwitz, can begin logging the thousand-year-old redwoods, dooming future generations never to gaze upon the huge trees and wreaking havoc on surrounding ecosystems. On Sept. 14 there will be a rally and mass civil disobedience against this crime.

MAXXAM gained control of PL Co. in a hostile takeover. Hurwitz controlled USAT, a savings and loan deregulated under President Ronald Reagan. Hurwitz lost USAT customer savings by investing in junk bonds through convicted Wall Street criminal Michael Milken.

FROM JUNK BONDS TO REDWOODS

Who paid for this? USAT's depositors and the taxpayers-- through Federal Deposit Insurance Corporation deposit guarantees. Hurwitz got rich off the deal. Milken gave him and MAXXAM $750 million worth of junk bonds. That's how he was able to take over Pacific Lumber Co.

Before Hurwitz bought it, PL Co. had been the only logging company not to destroy its old-growth redwood holdings. But Hurwitz had to repay Milken large sums of cash within a few months of buying the company, so he tried to squeeze as much out of it and its workers as he could.

The retirement fund was raided, production was tripled, old-growth began to be logged, and mining operations were begun.

Hurwitz has violated just about every environmental protection law--with the help of California Gov. Pete Wilson via his Forestry and Fish and Game Department appointees. PL Co. spent huge amounts of money to create fraudulent bird surveys, and intimidated company surveyors into changing data to hide the presence of the murrlet.

The judge who tried PL Co. found it in violation of the Endangered Species Act and ordered a permanent logging injunction. Hurwitz was not penalized in any way, however, since President Bill Clinton restricted U.S. Fish and Wildlife Service officials from pursuing criminal prosecution of ESA violations earlier that month.

Proposed deals between Hurwitz and the federal and California governments to swap Headwaters for oil, mineral and real estate properties worth $380 million faded when the Department of the Interior's budget this year lacked funds for the deal. In San Francisco, lands being considered for the swap included the Transbay Terminal, which provides affordable bus and train travel, and real estate on which the city planned to build 3,000 housing units.

In 1995, 2,500 people rallied in Carlotta--near the old- growth grove--to defend the forest and the endangered species. Last year's demonstration grew to 5,000. This year 10,000 people are expected to attend a noon rally for Headwaters in Carlotta, followed by civil disobedience of thousands.

The rally is called by local and national environmental groups. A Workers World Party contingent will attend the Sept. 14 demonstration.

The party's view is that Headwaters forest must be expropriated if it is to be spared destruction. A people's takeover would owe nothing to "owner" Hurwitz, who has already profited handsomely off the forest. Nor can the Democratic Party be expected to protect the environment. Under the Clinton administration, environmental organizations like Greenpeace are being gutted and forced to abandon issues of environmental justice.

Taking action to protect the environment means fighting the capitalist system that is destroying it.

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