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On March 1, 1988, D.C. Walker, Mary Walker, and Bebout each
owned one-third of the stock of D.C. Walker Enterprises, Inc.
Before March 1, 1988, D.C. Walker Enterprises, Inc.,
manufactured forest products. It sold mostly soft white woods to
customers in the Orient. It did not sell products in competition
with petitioner. Customers from the Orient wanted high-quality
lumber cut to precise metric measurements. Petitioner did not
have that capability.
b. Lyons Veneer
D.C. Walker started Lyons Veneer in 1981. On March 1, 1988,
Bebout owned 50 percent of Lyons Veneer, and D.C. and Mary Walker
owned the other 50 percent. Lyons Veneer competed against
petitioner, Willamette Industries, and many others before March
1, 1988. Petitioner, the Walker entities, Young & Morgan, and
Frank Lumber were the primary competitors. Before March 1, 1988,
Lyons Veneer sold almost all of its finished product to Alpine
Veneer. Lyons Veneer did not process soft white woods.
c. Sources of Timber for the Walker Entities
The Walker entities obtained logs from the Forest Service,
BLM, the State of Oregon, and private sources. Most of its logs
came from the Forest Service. Lyle Sanders and D.C. Walker
managed timber procurement for the Walker entities.
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