Document obYXy9bbDp9g9M5O3j9dXkRg

<. Ki ;\ r k :-- PLAINTIFF'S EXHIBIT GEDQGIA-PACIFIC CORPORATIOIM/40th ANNUAL REPORT 1966 GP-943 iQ iOi X: > Hi 'to I: 5 ii . Uj Uj SGP 0032635 Zlo *XJ ?J gIS TIMBER AND OTHER * 52j. H*2 PS H os < w Sfrfj *15 RESOURCES Pig Mar* Te(39 r* >t--< n Georgia-Pacific is a natural resources company. Its raw materials lie both on the surface of the land and below, n. The surface materials, in the form of many species of trcare a constantly renewable resource, growing in perpetuity The sub-surface minerals exist in substantial quantities and our plans call for further utilization of these resources in ihc sears ahead. Georgia-Pacific owns or controls approximately .''5 bil lion board feet of timber. In the United States the Corpora tion's great forests grow m Arkansas, California, Florida. Georgia. Kentucky, Louisiana. Maine. Mississippi, 'sew York. North Carolina. Oregon. South Carolina. Tennessee. Virginia. Washington and West Virginia. In Alaska, the Corporation has culling rights lo X billion board feci <4 timber through Ketchikan Pulp Company, 5l)'r owned by Georgia-Pacific. In Canada. Georgia-Pacific timber pros pers in British Columbia and New Brunswick. Our foresls in Brazil support at least 5 billion board feel of timber on the Amazon River and. through a concession m the Re public of ihc Philippines, approximately another 2 billion board feet is located on Ihc island of Mindanao. During die scar. Georgia-Pacific added nearly 600.000.000 board feet of timber of which 251.000.000 board feel supplements our Southern timberlands. more than 103.500.000 board feet was added to Crossed Division limber, better than S6.650.000 board feet was applied to the Northeastern Division resource and 150,000,000 board feet was put into (he Western timber supply. Gcotgia-Pacific owns the mineral rights on over 855r of its limberlands. Minerals include metallurgical coal, natural gas. gypsum and silica. The Corporation's coal reserves, estimated at 240 million recoverable tons, are mined by 25 lessees on Georgia-Pacific land in Virginia and West Virginia and 283 natural gas wells are lapped by 15 other lessees in West Virginia and Louisiana. Gy psum deposits, estimated at over 100 years' supply or 163 mil lion tons, exist in New York Slate, Michigan, Kansas, Texas, Utah, and Nova Scotia. Humble Oil & Refining Company is presently test drilling for oi! in Arkansas fol lowing extensive geophysical work on about 500,000 acres of Georgia-Pacific land in Arkansas and Louisiana. Under an agreement with Humble, Georgia-Pacific retains all o VV in Gtorfia-Pacific mlaoodi in northern California o JO; x > H CO CD Uj LO Oi SGP 0032636 SGP 0032637 rights to one quarter of the land involved on a basis that will assure development opportunities as well as royalties, should the drilling be successful. The lint test well will be drilled to 15.000 feet and will explore formations deeper than ever have been explored in the area. As a part of its constantly expanding program of tree farming and forest conservation, the Corporation this year dedicated two large new tree farms in the West, a V4.000acrc redwood tree farm in north coastal California and a 45.000-acre Dougins fir tree farm in southwestern Oregon. The first redwood tree farm ever established was dedicated on Georgia-Pacific land back in 1950 and the new area is lire largest single tree farm unit ever dedicated in the coast redwood country. A new outlet was developed during the year for wood chips. A great bulk of wood chips (developed from what was formerly waste I goes into Georgia-Pacific manufac tured products, but the Corporation has built a $500,000 chip shipping facility in southwestern Oregon for transport of 180,000 units of wood chips a rear to Japan. Georgia-Pacific continued to give the public recreational use of its timbcrlands for hunting, fishing, day recreation and camping, ft is estimated (hat 190.000 Americans took advantage of this opportunity in 1966. With regard to a redwood park, (he Corporation has continued to hold and offer several magnificent old groves in the redwood country for public acquisition. It has. however, resisted public ac quisition of lands which are excellent tree farms but are not the park-type groves the public visualizes as a redwood park and which would result in a bad bargain for the na tion's already burdened taxpayers. More than adequate acreage b already preserved in state and private redwood parks to meet the desires of future generations. As an aid to aerial reforestation of Douglas fir timberlands in Washington, Oregon and northern California, the Corporation has secured and stored 20.000 pounds of top grade seed for future reseeding. We plant five trees for every one ue harvest. Timber, as a renewable resource, continues to gain in value. Each year we grow over a billion board feet of tim ber. This tremendous growth gives Georgia-Pacific unex celled opportunity for future manufacturing expansion as world markets inevitably expand. VI t I At 9& 1 a o o X > CO U3 Lc SGP 0032638 MANUFACTURING Georgia-Pacific added 13 manufacturing facilities during 1966. Several plants were expanded and improved to take advantage of new methods or to install cost-saving opera tions. The resulting increased production in the various product areas is being used to meet expanding markets and new demands both at home and overseas. Manufac turing plants now total 119. Paper, pulp and paper convening expansions were ac complished at live locations. The bleached kraft pulp mill t at Woodland, Maine, went into operation in the fall of 1966 i with an annual capacity of 175,000 tons of pulp primarily ft for domestic use. The Ketchikan Pulp Company mill at Ketchikan. Alaska. 505 owned by Georgia-Pacific, has increased its manufacturing capacity by better than 9,000 tons of dissolving pulp a year to a total capacity of 209.000 tons. This pulp is the basic material used in rayon and cellophane. The bleached kraft pulp mill at Eureka-Samoa, California, added final production machinery for pulping redwood chips and a water treatment plant in 1966. The Toledo, Oregon, kraft paper and containerboard mill put in new and faster chip unloading facilities! making it pos sible for one man to unload 10.000 tons of chips in the same time it used to take five men to unload 3,360 tons. In Tomahawk, Wisconsin, the Corporation added a bathroom tissue plant to help meet the demand for industrial tissues. The corrugated container plant in San Francisco was re placed with a modern facility aad capacity almost doubled to 800,000,000 square feet annually. This operation makes many specialized containers for industrial, agricul tural and consumer products. During 1966 paper and pa per product capacity increased by 41,000. tons to a total for the Corporation of 1,642,000 ions. Corrugated con tainer capacity has reached a grand total of 2.415,000.000 square feet a year for Georgia-Pacific. Three new Southern pine plywood plains were added during the year. They are located at Chiifland, Florida; Savannah. Georgia, and Louisville, Mississippi, and have e ? ft Q ?o; x. > H CO U3 ftn Georgia-Pacific paper and paper products plants supplya steadily rising demand. 13 SGP 0032639 Cicorcu Pacific i> ihc vockf* lanxM producer ot <mmuoch1 and hjrJHK>J plvv^ood. SGP 0032640 Mwttl:?*< *< v*n:>aucii % Gforpj Paofic lumber await? shipment 10 nanon'i mirteis. an aggregate capacity of 236.000.000 square feel annu ally on a inch basis. These and the eighteen other Georgia-Pacific plywood plants have a total capacity id 1.765.000.000 square feet of softwood plywood a year on a -H inch basis and 42S.OOO.OOO square feel of hardwood piyivood a tear on a 14 inch basis. Four plants make hard wood plywood paneling, tltc rest using cither Douglas fir or Southern pine for softwood panels. The Georgia-Pacific chemical division has had modest expansion in various areas as demands hate risen. During 1966 the Corporation added (wo complete plants, one in Conway. North Carolina, and one in Lufkin, Texas, both of which produce urea and phenol formaldehyde resins. A charcoal plant. 50 owned by Georgia-Pacific, is under construction at Memphis. Tennessee. This will bring the number of Corporation chemical plants to ten. with an annual capacity of 292.502 tons of dry chemicals and 4.450.000 gallons of liquid chemicals. Five lumber mills were added during 1966, one ai Ahoskie, North Carolina, to produce Southern pine lum ber. one at lacger. West Virginia, to produce Appalachian hardwood lumber, one each at. Qticfland. Florida, and Savannah, Georgia, (o make Southern hardwood lumber and one at Cmssctt, Arkansas, using Southern pine. This brings the Southern lumber mills Id a total of 15 which, with the production of 10 West Coast lumber mills, gives Ihc Corporation a total capacity of 547,400,000 board feet of lumber a year. Manufacture of gypsum products continued during 1966 at the 13 existing plants. Because the. Bcstwall division was acquired only last year, changes in manufacture or plants have been iinrilcd to areas of cost reduction. The Corpotalion intends to continue refinement of its manufacturing procedures when and where it is practical. Past investments in timber and new and improved manu facturing and marketing facilities have begun to pay off and should do so to a greater extent in the future. O o x > H CO Uj U3 I Coaled foodboard for brsi-fape cartons and froicn foods 14 made by (Jtoreia-Pacifiv. *3* SGP 0032641 2P53(0g2 si 2 ** ? s 5&P S?w OS < W z!>s 5 ii ?I8 Wa 5 or Q lOi I > H CO Georgia-Pacific u a major producer of gypsum board and other gypsum products. U3 03 Tremendous household and industrial tissue markets arc supplied hy Georgia*Pacific. SGP 0032642 'S k . V r jv Georgia-pacific! products PAPER Kraft paper: bleached, unbleached, converting, grocer bag. muliiwall sack, laminating, gumming, absorbent, envelope, variety bag, wrapping, crepcing kraft, extensible paper and pink and white butcher grades. Printing paper: news print; offset, vellums, bristol cover, Carrara text and cover and textured fine printing papers; bond, tablet, business form, bulking book grades for offset and letterpress, specially grades for reproduction papers used in mimeograph, duplicator, adding machine and reply card; safety papers for checks and other forms requiring protection against copying and counterfeiting. PAPERBOARD Boxboards. containerboards and coated and uncoated bleached foodboard including carton stock, bleached, semi-bleached, coated and uncoated cup and plate stock; tag and file folder stock, and milk carton stock. CONVERTED PAPER PRODUCTS Grocer bags, muliiwall bags; corrugated containers ihduding waxed and impregnated containers; cartons for milk, frozen foods, liquids and semi-liqirids; bathroom and facial tissues, napkins and towels, waxed paper and industrial tissues and towels. PEEP Sulfate and sulfite pulps in varying bleached and unbleached grades. CHEMICALS Formaldehyde, urea formaldehyde resin, pheno formaldehyde resin, resorcinol resin, tall oil, ethyl alcohol, charcoal, turpentine, emulsifier and bit lubricants chlorine, caustic soda, sulfuric acid, sodium chlorate and numerous figiiin by-products. PL\ WOOD Hardwood plywood, factory finished and unfinished panels include rosewood, birch, cherry, walnut, elm. oak. pecan, maple, hickory, ash, Philippine mahogany, African mahogany, laurel, teak, butternut, Amazon maple, virola, benak and gum. Primary softwood plywood species include Douglas fir and Southern pine- Panel treatments include high density overlaid, medium density overlaid, Fiber-Ply, acrylic overlaid, polymer alloy overlaid, rough-sawn vertical siding, reverse board and batten siding, 2-4-1, T & G. shiplappcd plywood, Texture 1-11, fire retardant panels, plain and brushed vertical siding, "V" and channel grooved panels, scarfed panels, standard marine and marine overlaid panels, non-slip overlaid plywood, giant 5* x 16' overlaid panels and Stabilite for pattern making. GYPSLM WALLBOARD Gypsum wallboard, insulating gypsum wallboard, gypsum sound deaden ing board, exterior gypsum form board, gypsum sheathing and T & G sheathing, Firestop gypsum wallboard, Firestop gyp sum backer, tite backer board, vinyl-clad gypsum paneling and predecorated gypsum wallboard. GVPSLM PLASTER Gauging plaster, unfibered, fibered and exln-fibered. GA PS! M ACCESSORY PRODLCTS Laminating compound, bedding compound, wallboard joint compound, topping compound, adhesive and (apt GYPSCM ROOF DECKS Incombustible roof decking. GYPSCM LATH Plain lath, perforated lath, long-length lath, insulating lath and high absorption gypsum base. LUMBER Western species include Douglas fir, California redwood, sugar pine, Ponderosa pine, white fir, larch, hemlock, incense cedar and spruce. Appalachian and Southern species include poplar, basswood, birch, cherry, walnut, while oak, red oak, hard maple, soft maple, beech, butternut, ash, hickory, buckeye, sap gum, chestnut, sycamore, cottonwood, backberry, pecan, magnolia, cypress, tupelo, willow, yellow pine and hemlock. Foreign species include lauatt, virola. HARDBOARD * Standard, utility, tempered and treated panels which are perforated, grooved, wood grained and vinyl overlaid. FLAKEBOARD Standard, vinyl and polymer alloy overlaid. PARTICLE BOARD Standard, furniture core and flooring underlayment. OTHER Wire-bound boxes and round baskets. 17 SGP 0032643 PRODUCT DEVELOPMENT AND MARKETING To make the best use of ils natural resources and to provide the best products available on the matte! is the constant objective of Georgia-Pncific's research, development and marketing programs. The value of this Corporate attitude teas most evident in 1966 when some portions of the busi ness faced unusual tests of marketing stamina. Research in forest genetics and product development in the areas of paper, pulp, plywood, chemicals, other wood products and minerals help to assure Georgia-Pacific a position of industry leadership. In the area of building materials the Corporation takes an aggressive position in major markets, mainly through a system of 95 company-owned, modem distribution cen ters located throughout the nation. These have a total floor space of approximately 3.000.000 square feet. Addition ally. sales are maintained and expanded through 53 sales offices in the United States dealing in pjper. chemical and specialized wood products and through overseas contacts in 54 foreign nations. Marketing results overseas are im proving each sear and even greater progress is expected in the period ahead. During 1966 Georgia-Pacific introduced a number of new building products and expanded existing lines. Nev products included polymer alios overlaid flakeboard panels in wood grains and colors: crescent sawn redwood siding, paneling and fencing: svide-panel Ponderosa pine; light weight Firestop gypsum panels; gypsum sound-deadenmg board and a new superior gypsum molding plaster, used mostly in industrial casting. Improved products included new faces for architectural hardwood plywood panels, new patterns and colors for gypsum Etemawail panels and an exterior overlaid particleboard for siding. New paper products included Sealskin polyethylene foodboard for frozen food cartons and other uses and a new top quality Carrara line paper for special graphics. In Ahoskie. North 0i*353 !$ s1/o1 r" ,, ?! I * H> 9 *5. JO e r- > Tt r* n Q :o x > H CO CD -C CD CD * Ne architectural designs utilize the products of Georgia-Pacific research. 19 SGP 0032644 PS _g elO n& _J m o H w o zfes |a *> a h o" n 2. 73 Spa? ?r o 0 1 > H CO r [ fhcC(|r|HVjiion'vfwfM rcnclivN propr.ifnhelp** j,wut< hftwr and hdier nmK*r *.rop* CMTOfcu-Pj^ific p) psum prcduelv u>cd in advanced dc\itn.con(nbule lo national prou^- SGP 0032645 1J 1 II I (jtcrpii -Pacific loads pulp aboard giant ship bound lor foreign pons. Carolina. Georgia-Pacific now makes pine hark mulch for gardening, (hereby using one more pan of the tree. Work in the development of new. faster growing trees was continued on Corporation timberlands in the far West and at the Crossed. Arkansas, location as well. The Southern Division, headquartered at Augusta. Georgia, will be working out its own seed orchard program this coming year. In Oregon. Douglas lir seedlings developed through a seed orchard of superior, mature scions grafted onto young trees arc being put to their next stage in tests which have already shown them twice as vigorous as ordi nary fir seedlings. A 30-acre progeny testing site has been prepared and cross-polli nation effects of these "supertrees" will be explored. At Crossett. genetics experiments in con junction with the United Stales Forest Service in a 15-v carold experimental forest are producing better strains of Southern pine. A 10-acre scion bank and a 20-acre seed orchard are operating in this connection. In 1967 the Southern Division will cooperate with North Carolina State University in a hardwood research program dealing with forest management and silviculture methods. A number of demonstration plots will be on Georgia-Pacific land. Other experimentation is being carried on in a 3.000-acre experimental forest in West Virginia in connection with the stale university. To support irs marketing efforts as well as its corporate citizenship, Georgia-Pacific has engaged in strong public relations, advertising and sales promotion efforts to win new sales and friends for the Corporation. Thus it enjoys, with the help of a fine sales fotce. a better than expected share of markets in nearly every product area. G iO X > H CO C, 3 ai SGP 0032646 During 1966 Georgia-Pacific announced il will build a 29-tevH home office building in Portland. Oregon. The architect's rendering appears above. Planned to rise 356 feet and to contain approximately 550.000 square feet of space, the structure will be Oregon's tallest commercial tower. Completion is scheduled for December 1969. SGP 0032647