Document jgVz2x2J1rDVgyXRmZ15K2ObR

PLAINTIFF'S EXHIBIT GP-935 Georgia-Pacific CORPORATION (A ft r THIRTIETH ANNUAL REPORT . 5956 SGP 0032528 V?:;` it . i "*"a*. ;* '* * >. ~v _; i`. ": "' (JT 1 J-Mw-i/ ` i. . i f:~. : & For the year ended December 5/ V/.: 3; Sy :n :sV CORPORATION PORTLAND NEW YORK AUGUSTA Q 1 O' X* j *>i :h ro, 0) |C3: iOj SGP 0032529 The Corporation ami its subsidiaries are the uu iters ol' one of the largest and most valuable stands of umber and liuiberlaiids in \mericu. Ii>ctilcd ehiellx :n Oregon and California. Vpj'iosim.iich :no-ih>rds ol ibis umber rin excess of \ billion nvu is hiei;ifualits. old-groulli Douglas I :r. the remainder misprrmmatch 4 billion feel I consists principalis .>1 o.Mgrowtli California Redwood. The greatest pan this [unher ecus .a tr.c I 'oast Ranee, in Cons and Lincoln Counties. Oregon, and in Humboldt Counts. California. These areas are en- Jsiued with an abundance ol rainfall whiein*onmbuiCs ureatIs to the rapid grossili of die umber. Ii :s not .nieomir.oii in the f oii'or.mon's umber holdings to come '.iron second-jroiuh trees less than IW sears of age that are in excess ol *t> i:iebc in diameter at the -tun::'. I sen dimi'i'c the 'uinincr months tncsc lorests ire :re..-ac-ileu am '.ins and veass co.on: log. m SGP 0032530 3 S3_. O g iP i n <en P > HC or G :Q I Aerial view of a small section in Georgia-Pacific s over -100.000 acres of umbcrlandi s ZA&i which not only aid materially in ihe Iasi grossih of ihc limber but also minimize the fire hazard. Tlicsc areas arc also c secIlent lor logging operalions. They are seldom blanketed with heass snowfall so that a minimum of lime is losl in operations. Over DO percent of the logs harvested from the Corporation's Douglas |-lr umber is suitable for rotary cutting and inanufactunng ml-' plywood. The balance or the logs will be sawn into lumber, with the hs-producis eilli-r going into the Georgia-Pacific liardboard plant or being used for pulp and paper. Tile Corporation's Redwood forests, jcq uired from ihc Hammond Lumber Company, comprise approximately 10 percent of all ihc Redwood limber remaining in ihc world. Redwood possesses ihc unique distinction of hciris the most durable of all commercial woods, and because of tins rare quoins only Redwood is suitable lor many specially '..scs. Ihe solunie i liiglt-ijiiulity Redwood timber is sets limilesl. it is carefully harsesied on a planned program si .is lo assure Redsi.vsJ products.for Hs mans uses.for gener.n:ons u* come. un SGP 0032531 Omcup of virgin Douglas Fir in Georgia-Pacific limber sural We arc continuing in study the economic practicability of utilizing the i. 7'/2 billion feet of timber in the Tongas:. National Forest at Juneau. Alaska. on which we received a prclimi nary award in August 1955. In our annual report lor licit year we outlined the substance of this award and described this valuable I timber stand and its potential for the manufacture of pulp and paper. The basic objective of the management of the Corporation's limbcrlands , is to secure sustained yield in order to assure perpetual operation. The purchase of the additional forests and forest lands in 195b has substantially .tided our cIToris to attain (his objective. We also endeavor to get the greatest utilization ; and productivity out of every acre of forest land under the Corporation's control. Research and studies of the Corporation's (imherlands arc constantly being made in order to .main a maximum annual grow tit per acre. V\ hen found necessary, new trees are plumed or >evd is sown to aul nature :n a faster ; stocking for regeneration. The Corporation's point is to supplement its own timber by the purchase of logs and timber front oilier operators and timber from the Cnitcd States Forest Service. C3 nj un SGP 0032532 MAJOR WEST COAST TIMBER OWNERSHIP AND PLANTS BELLINGHAM Plywood plont f OLYMPIA foamtom & plywood plants | 1 Specialty Products plant | * Research laboratory | COOS BAY 'PORTLAND General Offices ki TOLEDO Plywood plants - Lumbar mill pulp a paper plant under const. SPRINGFIELD . Plywood plant COOS BAY a COQUILLE Hardbood plant Plywood plant - Lumber mills EUREKA a SAMOA 7<?M (HAMMOND) V* :>fkkl 2 California Redwood plants \ FEATHER FALLS Pine Mills SAN FRANCISCO v Redwood Sales Office \ I n r oa< o o> CALIFORNIA FEATHER RIVER TIMBER HOLDINGS SGP 0032533 i 0. ] 'f -I i r { _ i. f Production All previous production records were broken during 1956. Throughout the year we continued our policy of modernizing Jibuti facilities to provide increased production at lower cost A new plywood manufacturing unit wis completed at Toledo. Oregon, which increased our plywood capacity by approximately JO million square feet per year. A veneer mill was acquired at McKeever, New York, to supply Birch veneers to our plywood plants. Major steps have been taken to integrate the newly-acquired Coos Bay and Hammond properties with our other production units and to increase production and operating efficiency. A new barker is being installed at Coos Bay I( which niD nearly double the production of wood liber chips, and studies are being made to convert our Redwood waste into chips at the Hammond mills. Wood liber chip production From waste has been nearly doubled at Toledo. The utilization of logs from our new timber acquisitions has resulted in greater efficiency and lower costs at all of our Western plants. Currently we have under construction an addition to our Savannah. Georgia, hardwood plywood and specialty plant, which will about double our productive capacity of pre finished wall paneling and specialties at that location. This should come into production during the second quarter of 1957. During the year there were no worit stoppages at any of our plants. Q iO 1u .on SGP 0032534 9 0 JLVHOp Toledo, Oregon, pulp, paper, plywood and lumber nulls as will appear upon completion of (be paper min in foreground ' L ,( :t i t i t. i i t 12 This is a composite picture of the entire Toledo plant as it will look after completion of the new pulp and paper mill unit this year. The plywood and lumber mills in the background are the souiee of the large pile ofchips just behind the long paper machine room. Toledo, of course, is not the lint pulp mill to use mill waste as its raw material supply. Many or the pulp mills on the Pacific Coast purchase chips from local saw and plywood mills, including those operated by Georgia-Pacific at Toledo. Coos Bay, Springfield and Feather River. Bui Ihe Toledo location gives the new pulp and paper unit a unique economic advantage in the elimination of transportation charges on the major portion of its chip requirements and in the ability to use many existing facilities of the plywood and lumber milts. Toledo's chips will be blown through a pneumatic pipeline directly to the pulp mill storage pile. For most pulp milk, the delivered cost of chips is more than double the cost it the point of origin. Construction is on schedule and the pulp nnd paper mill is expected to start upabout the end of 1957. Us initial daily capacity will he 2J0 Ions of kraft (sulphateI pulp, paper and containerboard. Annual sales are expected to exceed SI2.000.000 and add substantially to Company profits. Wood fiber chips for paper from waste SGP 0032535 3 U':lis Of sr Skies of$12l,3t>5,307 represented an increase of 829,339,303 over the previous year. Net profits of $7,428,767, after lam, represented an increase of 81,226,020over 1955. Acquisition of,approximately 8 billion feet of limber brought our total ownership to over 12 billion feet. Hr Production at Company plants broke all previous records. ra Two plywood plants, one haidboardplant, a Fir lumberoperation, and twoCalifornia Redwood lumber and specially plants wen added to productive capacity. atr Construction began on a new 250-ton daily capacity kraft paper and paperboard plant at Toledo, Oregon. A veneer plaiq at McKeevcr, New York, was acquired to supply Birch veneers to our plywood mills. a Ten new distribution warehouses were established, bringing the nation-wide lO' total to 40. : iV !* Net working capital increased to 842,142.538, cash to 821,399,075, total assets to 8205,474,607 and the current ratio to 3.18 to I. Outlook Georgia-Pacific Corporation goes into 1957 better fortified and in a better com petitive position than ever before. The Corporation has greater productive capacity, a wider range of products and a better world-wide system of sales and marketing outlets than previously. Both the short and long-term timber harvesting programs should generate cash ajnd profits at a rate not before realised. The increased number of products made from limber t and the per capita demand growth are impressive. Of these |xoducts the mast vigorous i growth has been demonstrated by plywood and plywood, products--and paper and paper products. These two industries are both among the fastest growing in America. Georgia-Pacific ranks first in the production of plywood, its pulp and paper mill, under construction, wilt utilize its wood waste in the manufacture of kraft paper and paperboard. Consumer demand for both plywood and kraft is expected to double over the C3 a next twenty yean., It is estimated that the United Stales' population will increase to 175.000,000 by I960. Schools and cofiegfs are bulging; new family formations will almost double the current rote, starting two or three years hence. The long-term demand for products from timber-- for plywood and paper--will be strong. The current economic picture is fairiy bright, but one disturbing factor is the decline in housing starts during the past year, largely attributable to the tightness of mortgage money. The boosing industry is large and has a far reaching effect. Meanwhile, com mercial construction, the new highway program, industrial business and the "Do-It- cn Yourself" market are helping to offset the decline in housing starts. The present lag in housing suns will be more than made up when mortgage money becomes more easily available. The outlook for increased earnings for Georgia-Pacific in 1957 is good; the longer- Oi term outlook is excellent. la order ie proride aeoavenim statistical reference, lids center foldsection contains a summary ofetuBaHiued financial condition, a ten-year contpotelite record, operations, ratios and severtd irapUcal representations relative to 'the Company andIts operations. 13 SGP 0032536 n r- The Ofympia, Washington, Sales and Research Center :| t [ ' I It is always gratifying to report a lay-off from research expenditures. Sates of our new type Striated paneling (U. S, Patent Number 2782468) have been so encour aging that e have installed equipment al Savannah to produce a Striated Hardwood panel. Greatly improved finishing techniques, on a low-cost basis, permitted the addition of Cherry, Ash and Walnut to our fine of pic-finished Hardwood plywood panels with our unique dip system (Patent applied for). All of these new specialties haw received excellent market acceptance. One of the more important research developments of the past year has been in the field of plastic surfacing. This surface enhances the appearance, durability and value of plywood for such uses as home and industrial siding, highway signs, boat construction and other uses where a waterproof panel with superior paint surface is required. "GPX Yellow'' was developed and put on the market as a low-cost (medium density) plastie-faccd grade in I9S6. Meanwhile, several new product lines were added as the result of our research activities. More important among these were G-P Hardboard. n variety of Redwood specialties, and pulp and paper. The acquisition or the Coos Bay and Hammond properties made possible further integration of uniform quality contra! standards-- literally from tree to warehouse--and this is a basic responsibility of our laboratories. In addition, they are seeking to increase the return from our timber reserves by adding new and upgrading existing products--more of which should emerge from the pilot plant stage and go into commercial production in 1967. Electronic control of hardboard manufacture Q iO X uo :aas 20 SGP 0032537 ?|8 IS 3 O p Georgia-Pacific displays attract customers at trade shows and dealer conventions Increased distribution, Intensified advertising and promotion, and important additions to our product lines in 1956 were major factors in producing the highest volume of sales in the Corporation's history. In I9S6. ten additional warehouses were opened in major trading areas. We now have 40 warehouses across the nation and representatives in most major foreign markets. In the markets where independentjobbers distribute Georgia-Pacific products, efforts were concentrated on increasing sales volume of the entire line. The manufacturing and construction industries, both domestic and foreign, are the major consumers of the Corporation's products. These products are used in railroad cars, trucks and trailers, appliances, radio, television, and furniture; in marine construction, and in housing, schools, chutches. market centers and on farms. "Do-It-Yourself" continued to be a big market. Retail building supply dealers provide our largest single outlet. Through 10,000 dealers we cfTect widespread and efficient distribution. To help retail dealers market our products we have developed an outstanding sales training course. Several thousand dealersalesmen havecompleted this eourseandenrollment for 1957 is high. A concerted drive at the consumer level was sparked by intensive advertising in many consumer and trade publications, direct mail, product literature, films, and the use of displays. Q iO' ru L3 Attractive packaging protects fine G-P Plywoods 21 SGP 0032538 90 1VHOO ftvlinufccil Siraniub O.il Psneiinj b l <-P Oouglas Fir Plywood <Icimna-Paetik\ -anh counuj's UrptM productive capacuv of pl>uivd. produce at] jr.o grades. interior and euenot. h% the nnw up-to-djic precision nunJf!iv(um)t* n;eihods. Cf-P Hardwood Plywood. \ aide \artci> of Kmii r',inc> .mo uiilm grades, n MjndatU and >pecul man. G-P Rlpptewood. I he hnwot fc\uired oa'oijii\e pjiidmg. avail able ri Mjiuur*: panels and sutures. !W sum*ny ' jUi-iciuc :u'-\v;u aint>hm \|so j*..i:uhlc m --and.iid >ia: V <i*-m%e2 pjre s GPX Plenlic-Faced Plywood. I **s* -s-v..*.* jv.'v.oe-cmjj eth a:*d *<* .iV ...Cv: j c c: I!-.i'-as.v* ~ -. iPV <pe"tfm* l 'f t*P\ * ,'s*v:e I * ** i*P\ i j ^persiT rv ~*.rc l:*.c t Uk *M j * * *C. * ** *w k ' ' V.I. V\.. ir k! < iP\ ^ C!u*.s - d> : -*M * iUI*' * \* nj j on SGP 0032539 l zn: m b e? California Redwood a ideal Tar modem school construction. It has warm beauty, needs no maintenance and is rot tree J I ' 2R G-P Hardboard. A panelboard nude f \whh1 liber. I* j% a viable maicn;il well known in the trade tor it> muchinhbilii). resistance to damage, tight color and smooth surface on both sides. Widely used for furniture. TV and other cabinet', in ollice equipment, for drspla>>. and for nun> construc tion purposes. G-P Savannah Paneling. \n e\du>oc prenmshed w.ill paneling of random width plywood planks produced (roni Southern Harriwoods.a\ailnhlcin Hones-tone r Blond <J.ik \vh. ( hern. Walnut and Birch. 1~;s prodikt is designed lor application with a (patent.ippnciMot i clip "'icin \Ko .iv.iilablc s. j \ ancl> H prchni'bci* -`'::ldi:vc'. .;ll maic:v"e Joi >\ compkte '.sail punetms* G-P Preflniihed Hardwood Paneling. MjOc sn souri widths for quick tmiaUutMi. tnese 'v.nmfuJ ,.iv*vr}un*:'..i: Souihcrn lUrduooa aj)| punenr.es arc outla ole i i V-Grooved Blond i ati\o. Red Gum. U\.r.. Honc>-v:ic Oak. Blond flak, Cherrv und Wulr.j:. 'UiCLts I .r i*'v'.nva lor truck ...cr r,j .olifv -.jws 0 1 O' I i SGP 0032540 G-P Striated Plywood III. S. Patent So. 27&M6S). A new improved decorative panel in the popular Striated pattern. Available in standard panels and squares in Douglas Fir and in Hardwoods. Especially popular with homemakers and hudders because of its beautiful texture effects. GPX Plasuc-faecd Plywood for superior highway signs Lifetime Sheolhlng. A popular sheathing-grade plywood manufactured for construction and container use. Primarily designcd lo meet government speeiliealnms for oterscas shipments, G-P Hordwood Plywood on Fir Core^ \ >viJe s.incis or line Hardwood lace scnccrs processed vsith I ir cores tit pnis ide Jltraeuse. moderalch priced. Jcs<fjlnc ply u.khI panels. G-P Giant Scarfed Panels, ti l* Scarfed Panels of l'ir phuimdcan he produced mans i|uircd length- hate been made in sizes up lo 10 feel wide by Ofoei in fcnelli Which used in Nut and shipbuilding and for ouiifoor sieiihinirds. *3* C3 Oj CQ SGP 0032541 i! ; 5---*----i BE* VJ I -llfi'rtllj liic .Mll\ IN,|| \t,lljhV !.T urn inJ- r..11I. .II:, I pin:'im11: MK` rcm-rcrKc Fiber Chips for Pulp, Paper and Newsprint. t :i.njM'ni.r: -. ':i::svj::.':S:: v. n-pr.xlinl <i i* `n'.ivr 'i\i :'ip'1.,:c niaivck-J Im .tiufjclure mlu p-..p MPrr mj '.e.i'piiril. California Redwood Siding and Specialties. Kctlu.niJ. .nu i>: -N: durable ,'i '.k'u'. k nuntiTucuirctl at (i t' 'ill-, n: vt-Ktii i ahfi<rnu mil' Mdiiie uiiJ -Hlicr spa.-i.:li\ ri'-U'K'- I' unims wfjihfnne. i-'i'c u'm.i.1% and <leca\ .uul > M,e.i .rv: i ' all '>.>((, ,n iitn .tmi'IMI 'laMlIv ::w . n c -IW lumber ond Timbers of all Types. <. 1` 'ilK -nui.-: . -c Wev ..-.J Si'iii'-.ern mm.Ivi _'J.i1 , \ ie*A *`i tl:v r.'i ia:e!iil I'lcmi--' ni :heM: :o I::. Ip.m-i Ih-nhvk. Mila Spiw. <a V.y.:i I'inc. KciIssihhI. I` nacre-a l':nc. Snuil'utrn iid \pr-n i. -.un Harijni'ail.. !'.'r'k'.iI :::J Inneh-al TI' .rul ( \pre\*. SGP 0032542 -'ffljc'tra :r ; Douglas Fir Plywood is a lowcost, easily worked, construction material for farm uses Georgia-Pacific Scarfed Plywood Panels can be made in any desired length -- - - i CD `.O' GPX Ptnuk^accd Concrete Form Plywood for smooth linuhes on modem commercial structures . SGP 0032543 GjIDRGLx- ?&CI?S CORPORATION AND SUBSIDIARIES f* i 'iciicrai 0:i`cr% ,iuti If <,vm lic-.itiauunen Equitable Building, Portland, Oregon Exauiirr OFw 60 Eut 42nd Street, New York, New York .Wi/iivn O/vMftMj Htatumartfn Southern Finance Building, Augusta, Georgia I n r 1 ILC5 OFFICES A SO DISrHIKlTIOS '< AHFflOLSFS Allran, Ohio, 1069 Dublin Street , Atlanta, Gs, 141 Carnegie Wiy, N.W. Augusta, Ge, 733 Broad Street Baltimore, Maryland, 2315 Smem Street BHUnga, Mont, Berraid St, Northern FuiBe Industrial Sttei Boston, Man, 141 Bacon Street, Waltham, Mast. Charlotte, N.C, 106 Fatter Street . Chicago, Illinois. 1101 and III I West Bryn Miwr Cleveland, Ohio, 4(32 Ridge Road Columbia, S.C, 1099 Berea Road Detroit, Michigan, 126 E. Hudson Street, Royal Oak Had Peoria, IlUnoli, 206 Camp St. Easton, Md, Terminal Warehouse, Kemp Lane Fort Worth, Tessa, 1114 Teres A Pacific Building 66S Em Vickery Btvd. Fresno, California, 1140 California Ave. Orecavflle, South Carolina, Keith Drive Helfield. Pa., Heir Valley Road Houston, Texas, 471$ Calhoun Road Jadtton, Misi, 1001 Terry Raid Lancaster, Pa, Wes Roseville Road Long Branch, NJ, 174 Branchport Avenue Los Angeles, CallT, 3201 South Maple Avenue 14416 Victory Boulevard, Van Nujrj Meriden, Coon, 14 Cherry Street Milwaukee, Who., (229 W. Greenfield Are, Wen Allis New Cutis, Pa., Cherry Street Extension New Hyde Park, N.Y, Second Avenue and 4th Street New Oricam, La, SOI City Park Avenue New York, N.Y, 933 Courtfondt Avenue Olympia, Washington, 600 North Capitol Way Pott Dock Pasco, Wuk, Pasco Air Bate Philadelphia, Pa, 63rd SL A Eretwiek Aw. Pittsburgh, Pa, 33rd St. and Liberty Avc. Pert Newark, NJ., 102 Marsh Street Portland. Ore., Equitable Bufldlng, 421 S.W. 6th Aw. 130 &E. Division Place Providenee, Rhode Island, Hartorride Industrial Park Salinas, QriiL, Sanborn Rond at Industrial Avenue Sin Antonia, Texas, 311 South Flores Street San Francisco, Caff, 417 Montgomery Street San Jose, Calif, 345 Sunol Street Seattle, Wadi, 410 Terry Avenue North Spokane, Wash, 3420 North Regal Street Tacoma. Wash., 824 East 25th Street Toledo, Ohio, (24 Laskey Road Vineland, NJ., Mill & Pine Streeta Bdlingham, Washington Coos Bay, Oregoa (3 plants) Eureka, paliforaia Feather Fade, Cafifomia Olympia, Wadrington (3 plants] Samoa, Cafifomia Springfield, Oregon Toledo, Oregon (3 plants) Cleveland, South Carolina Dumas, Arkansas Fairfax, South Carolina Jackson,,Mhriadppl MeKearer, New York Savanna!), Georgia Stcelwood, Alabama Atioc/altdMlttt an rAa Pacific Coast andIhrotfhtmt Ike South. Q iO' ru SGP 0032544