Document JNXBNbB0Qd6nQZwy4QZOy0ZEB

PLAINTIFF'S EXHIBIT Q O I 0) r/rees pexpert/Auv AnnualReport Georgia -Pacific Corpora tion SGP 0032560 t 32nd Annual Report for the year ending December 31,1958 OONTBNTS *t ,C TABLES CHARTS MAPS I PAOB 2 3 4 6 6 8 II 14 14 17 26 Board of Directors, Officers, Transfer Agent* Rcgsstnn, Counsel, Audkors Principal Offices Letter to Stockholders Highlights of 195* Outlook Timberrod Tlraberteode Msnn&ctBring Marketing end Distribution Research Finance Products Beck Cover 19-20 21-25 7 13 17 18 18 II 3 9 Seles Offices, Distribution Warehouses, and Bants Three-year Summary of Financial Cbndittoa, Record of Operations, Other Statistics and Ratios- Audited Financial Statements Outlook, Plywood and Kralk Paper Industry Growth Ten-Year Saks Record Net Profits, Cash Dividends and Earnings Retained Cash Flow Details of Cash Flow-1938 Long-Term Loans Georgla-Padfic Operations West Coast Timber Ownership 'l rf.i Q i o<: !X Uj Uj SGP 0032561 i <rmimiA-Pacific Corporation } > { CifMitu. (Altai \si> Warns Division Hiaixji-wtiik j EqutuMe Bui/d/nf. Portland, Ortton \ \ i i Southern- Divbwn HfADgi'A^mts Vru Vcmik Cctcutiu Omo Sottthtn Finance B*Udbgt Aeguua, Georgia 375 Park Arenac, New Y*rk, New York nr CA ' - ! 'i'i ;; V A- "* POUUM- Omr^ Oflkn ^ VtWwu, RW^ V..* I am * 7T p Knatua *m mm* - I4'-*` H "*9 V *1090 m ttsmn * St -r; it * f* < >* &:! /f/ i .i Gsoeoiwn pioAr-altniocnmc V iuni ^ utumu ui wit met* sun imas <1 0 (c"* MO* * (lIBUl MU MM, ""vVR " nuuwon "w,^*incwuy> "ag wnnaMi ^MJ4a)ww g "MFtiZE" JSm ( * ., <* m. _a 9 IHlikM tr* worn 9 JWMLUM* mTam >99 ^ C0I9IBU IMftMMMWMw * moi ; G i O' ' in ` :>/ H ro; o> C3 UU un SGP 0032562 HIGHLIGHTS OF 1958 Ht Saks, profit! and cash Sow foe 1958 all recorded new high: --Sain reached 1152,443,498 (compiled with $147,649,368 to 1937) --Net profit], liter taxes, were $10,072477 (an tacrease of 18% over 1957) --Cash flow was $29,789,891 (complied with $27,740^522 In 1937) Roductlon and Mia of papa and containerboird at the new Toledo mill exceeded original estimate!. Wf Anew major plywood plant at Cbos Bay,Oregon, wilt toon bo in production; a plywood plant it Samoa, California, is nearing completion; and a new gang mill at Toledo,' Oregon, is already in operation. Hfr Output it our Savannah, Georgia, hardwood plywood and ipedaltks plant was Increased and diversified and a new veneer plant was added it Rocky Mount, North Carolina, to supple* ment Savannah's supply ofvensen. ^|fr Approximately 1% motion seedling trees were hand planted and over 5^00 acres were re seeded by helicopter. Additional timber wai acquired and added to reserves. Georgii-Paciflc research facilities were expanded and adtfifonal denied scienliflc penoanel added.A numberofnewproductswerereleased formarketingindmoreireunderdevelopment. s||ir The reduction of long-term debt in the amount of $11,264,000 was comiderably ahead ofthe minimum mandatory mpdretnent of StUXXUnX In addition, $6,960,000of the convertible debentures were retired through conversions during the year. tflfr At year end, cash was $16^444,604; total aaeta were $210,752,396; and net workingcapital was $43437^34, a new high. OUTLOOK Economic indicators point to a periodofsustained growth ahead. As to timing, opinions differ, but economists agree that this expansion is imminent. Three major factors have direct bearing upon this future. The Bureau of Census forecasts that United States population will increase from 174 million in 1958 to 244 million by 1975. This will create a new and expanded market calling for great increase in the Gross National Product. The population growth also will bring new family formations. In 1958 about 1,450.000 marriages were recorded and the forecast for 20 y..,s from now is 2,350,000 mar riages. The third factor is more spendable income or purchasing power. From a recorded S3II billion in 1958, spendable income is estimated at a possible S725 billion annually by 1978. The combination of these factors points to steady future demand for consumer and industrial prod ucts new homes schools business establishments, and new industrial structures with which to produce more products and new products. However, govern ment monetary policy will have a marked effect on a SGP 0032563 SPENDABLE INCOME TOtftL^ORSTRVCTION tHUWHE'fTITUrtlH 9kU ' WWOb KCHOWIMC MTOII SEW HOUSING STARTS .... mnuuNoi haw ' 1958 1563 1968 1373 1975 soma, konomusc iwnwti new home construction. While economists agree that demand will be large Tor jean to come, the level of residential construction obviously will be aflcctcd by the availability or mortgage money. Dollar volume of total construction set a record in 1958 for the fourteenth sear, and the United Slates Departments of Commerce and Labor forecast a V i rise in I9S9 to another record of S52.3 billion. Georgia-Pacific is moving aggressively to main tain and improve its position in this growing econ omy. 1959 should be another good year. 7 1951 1963 1968 1373 OHO 1971 souso. konomithc matron UQ SGP 0032564 . r> r Q icy :X During 1958, the Corporation continued to har vest its timber on a long-term schedule designed to improve the quality and quantity oF Future growth. Cutting experience and field studies throughout the year confirm that the quality and growth Factors oF our holdings ore unsurpassed. In addition, we con tinued the policy of purchasing additional timber in the open maritet and From the United States govern ment reserves, when purchases appeared advan tageous. Most oF our limberlands lie in the Pacific Coastal range, where the soil is deep and Fertile and abundant rainfall contributes to the rapid growth oF the tim ber. By rescedihg and replanting each section imme diately Following limber harvest, our lands ate kept in constant productivity. In 1958, approximately I Vi million seedling trees were hand planted, and over 5 thousand acres were seeded by helicopter. Acreage so reforested during the year exceeded the acreage harvested. All new methods and techniques in Forestry are studied and tested by our staff offoresters to achieve the maximum annual growth peracre. Experimental plots in the Forest enable us to study growth char acteristics and these studies indicate that a sub stantially larger volume of timber per acre can be Uj Oj SGP 0032565 I n tgN* iSi 1 P o ;0' .X srown throucfc modem I'orcvin practices tli:m lias Iven .Tim 11 in the |ia>l hv naUire alone SuKiaim.il chariee> which .ire heina nude in <iinreu-l'acilic mamil'ailunne l.icilmc-. 10 merea-w unli.-unon ..r umher luneMed are .d>e ..iTectinu out forolrv operation'. Belter recover) Irom e.ieh 'oe U'cd. new product' r.maii.KHired i-oni pre- a-'.Wv ill'Curded wu'le. and ul:V ill. 'll i: owia n- I 'he tree thru lot merit were Ic-fi -r the wood' j|i '..ne ihe elleci id' mcrec.'ine the dui:!'". raw material.. . ji!ahie. at well ' e!',-..i. me r\ :iue rite inanai.ivUir.-d oiilr>iii I'k Iv.i entire Furedr, proar.im i> to ir.Miie. over ok\e"-.i veure Keinrevijiinn n aerial Mec.ire > .to ujv <i-I' helpe Mure pii'J uc. V' :oii<orrow FEATHER RIVER SAN FRANCISCO Uj ru SGP 0032566 ili.'ll wc vvill grow a volume or timber .11 least equal to the volume liarsolcd. We eotuinuc to studs with interest all oil and mineral activities in the vieintiv el our holijiiies. Mtltoueh there were tuv major developments during the jear. various petroleum companies indicated considerable interest in certain ol our properties and vve granted two small leases covering approvimaieh SIX) acres in one 01 our larger areas 01 C.iliforn;;;. In June, the l nited Slates l-oresi Sorviee granted us a o-scar extension ol'iw piclintmars award coveiine ~Vi billion hoard leel of timber l.vealeJ in t!v general area of Juneau. Masha l tider the terms .< llns cvleii'ion. the Corporation has until July 1961. to determine whether to take the slops necessary to make this f'hvonr award final, which would neces sitate the .."-tmet''r. ofa plant hv JuK 196-1. Our lin.:! Ject-i.n on the use of tins tine -land of timber will nes ;ss.in!v depend on out evaluation of the attire wt.'trite anJ technical developments in the area, as vse.! as the outlook for forest products in aor'd .'.tar'se'.s licorei.i-l'jcitic - >ng-r..r.g.t program lontslimvr ir.J : -- reru'to- looks more promising each e. r. as 'vi rrast.ses continue i improve, and es.Mis " Jc'ci.'r- more ..'mmole tinnier .old vo J ..; :v_.;on C3 10 SGP 0032567 I Tiic year I95S was marked by agares-tvc cvran'>n in tioorgia-Pacilic's manufacturing l.iciline-. The conviam objective is to rend) maximum utili/aiinn of limber harvested. realizing die largest pos sible prolit by improved recover and the manufaclure of new and more profitable produce Paper ami Conhimerlniard Priduction and ship ments at our nevv Toledo. Oregon. null exceeded original estimates. Constructed as a 250-ton daily capacity mill, installation of more pulp storage was completed at year end. Ihe mill is now producing .'5tl inns of krall paper and containerboard perdav. T his mill uses as us raw material wood waste Iron) otir adiacent plywood and lumber plants. Alt wood coming front the forest at this location is utilized. The old waste burner is gone PI'.MoaJ. HartibtnirJ ami SpcthiliH'* \ new ply. wood plant, with annual capacity exceeding 100 million square feel, is near completion at Coos Bay. Oregon. This will allow better live of raw material and a more protilahle operation. At Samoa. California, a plywood plant is tinder construction which will provide more complete utilization of our northern California timber. It u ill have an annual capacity of *5 million square feel. In I95X. our plywood plant at Bdlinghjm. Wash ington. was dosed and the equipment installed in our plants m Oregon. This move replaced the Bdhngliam production at much lower cost, since the Oregon locations arc much closer to our mayor timber hold ings. At Olympia. Waxhinstnn. manufacture wits consolidated into two plants instead of three, con- Twtnty-ton roll of paper comes 01T West's largest paper machine at Georgia-Pacnic mill. Tidcslu. Oregon. Q iO I a> 9 SGP 0032568 rcnlraling on production of special and distincme I i\pc'- of plusood. This program has ere.uK im t .1 proved the re-.uIu of these operations. Vt Susannah. Georgia, the factors-finished hardstood plywood depanment uas expanded and pro jection increased. The Corporation purchased a veneer plant at Roclt Mount. North Carolina, to supplement the supply of line hardtsood veneers used at Savannah. P P Producutc capacit) of hardboard. using it mid waste, was stepped up and improved at our Coos Bay. Oregon, plant. Cali/ornia Redwoodand Other lumber. Our mills at Samoa and Eureka. California, are among the nation's largest producers of Redwood products, accounting lor about 1$'; of the total. In 1958. uc became the first in the industry to market packaged and factory-scaled Redwood. A new gang mill to utilize small logs from tree tops formerly left in the woods, was completed ai Toledo. Oregon. Improvements in operations also were elTccted t our liardwood mills in the South and at MeKccsor. New York. Pneumatic pipe fine auiomaitcalK t.irrio uocxl chips from lumber mult to paper null jt I Oreptn. Q iOi >. I O 0) i Giant Dru(Li> Kir toy in liihe ready u> be peeled into pJyswvsi . oncer. V- i Aj t iJGWJ SGP 0032569 sane PRODUCTS Georgia-Pacific is one of the nation's largest integrated producers of forest products including plywood and plastic-coated plywood, haidboard. Redwood products, lumber, pulp, paper and conlainerboard. As a result G-F offers one of the most complete product lines in the industry. A few uses are shown on these pages. The principal products include: G-P DOUGLAS FIR PLYWOOD G-P HARDWOOD PLYWOOD G-P KRAFT PAPER G-P KRAFT LINERBOARD G-P UNBLEACHED KRAFT PULP G-P CALIFORNIA REDWOOD LUMBER AND SPECIALTIES G-P HARDBOARDS G-P markets many species of lumber all over Ihe world. Q iO : X. ;H>i O a> SGP 0032570 t | p "2 s r> G-P FACTORY-FINISHED HARDWOOD PANELING (r use with exclusive Clip Salem) G-P I ACTORY-l'INISHED HARDWOOD PANELING G-l> RIPPLLWOOD G-P STRIATED HARDWOOD PLYWOOD GP.X PLASTIC-FACED PLYWOOD GPX BEVEL SIDING G-P GUARANTEED PRE.MIL M SHEATHING G-P GIANT SCARFED PANELS G-P VENEERS G-P LUMBER AND UMBERS 01 ALL TYPES G-P PRINTED GRAIN PUl WOODS G-P FAMILY-PROOF OAR I LOORING Millions of feet of plywood are used lo form concrete in national highway program. RctSurwvl und' I'HTC.'wnc u<c in jwuicrn jrcJnkvuirv. i*omiructmn in G iO X 0) C3 uu SGP 0032571 G O' I o G-P Premium Sheathing.shown hereon 12-acre KirchotKc roof, is popular builder iicm. 28 Vow 'Msatiluy of G-P hardboards is shown in ihn dealer display. SGP 0032572 Georgia -Pacific Corporation SALES OFFICES AND DISTRIBUTION WAREHOUSES Alroa, Ohto, 10 Dublin Street Atlanta, Oa., 3121 Maple Drive N.E Aufiusfa, Ga., 733 Broad Sum Southern Finance Building Baltimore, MtL, 301 South Kreason Street BltUngs. Mont., Bernini Street Northern Pacific Industrial Sites Boston. Mass.. 141 Bacon Street. Waltham, Mass. Charlotte, N.C, 211) Freedom Drive Chicago, DL 1101 and ISM Wert Bryn Manrr 11909 Annus "O' 33 E Wacker Drive Clcreland, Ohio, 4832 Ridge Road Columbia, S. C., 109) Berta Road Dallas, Tens, 2422 Butler Street Detroit. Mich, 126 E. Hudson Street. Royal Oak East Peoria. DL, 206 West Camp Street Easton, Md., Terminal Warehouse. South Street. Kemp Ave. Eugene, Ore., 2833 Side Street Fort Worth, Texas, 643 East Vickery Blvd. Fresno, CaDf, 3140 California Avenue Grand Rapids, Mich, 823 Buchanan Ave, S. W. Greenville, & C, Keith Drive HatflekI, Pa, Hatfield Valley Rd. Houston, Texas; 4713 Calhoun Road Jackson, Mbs., 1001 Terry Road Lancaster, Pa., West Roseville Road and Reading R. R. Long Branch, N. J.. 174 Branchport Ave. Los Angeles, Calif., 14416 Victory Blvd, Van Nays 903 Fair Oaks, South Pasadena. Callt Meriden, Conn, 14 Cherry Street Milwaukee, Wis,8229 W. Greenfield Ave, Wert Aids Newark. N. 3, 102 Marsh Street. Port Newark New Castle. Pa, Cherry Street Extension New Orleans, La, 301 City Park Avenue New York, N. Y. 373 Park Avenue 933 Cortland! Avenue 121 S. 4th Street, New Hyde Park, L. I, N.Y. Olympia. Wash,' Port Dock Budding "C" Pasco, Wash, Pasco Air Base Philadelphia, Pa,, 63rd St and Eastwick Avenue Pittsburgh, Pa, 33rd St. and Liberty Ave. Portland, Ore. 421 S. W. 4th Ave. 330 S.E. Division Place Providence, R. I, Harborride Industrial Park Salinas, Calif, 1031 Industrial Avenue Samoa, Calif. San Antonio. Texas, 1702 S. Alamo Street at Main San Fiiiidaco. Calif, 400 Montgomery St. Santa Clare, Calif, 731 Martin Ave, Seattle, Wash, 410 Terry Avenue North Spokane. Wash. 3426 North Regal Street Tacoma, Wash, 824 East 23th Street Toledo, Ohio, 2461 Dorr Street Vineland, N. J, Mill and Pine Streets Washington, D. C, 3023 T Street, N. E Williamsport, Pa, 2000 E. 3rd St. Coos Bty, Oregon (4 plants) CoquOTe, Oregon Eureka, California Feather Fads, California Olympia, Washington (2 phots) PLANTS Samoa, California (2 plants) Springfield, Oregon Toledo. Oregon (3 planIs) Cleveland. South Carotlm Enfield, North Carolhn Jackson, Mississippi McKeerer, New York Rocky Mount, North Carofini Savannah, Georgia Steetwood, Alabama C3 Uj ,-C SGP 0032573