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Clausen did not use a weighted average of upbids to
calculate the value of the covenants. However, he used weighted
averages in other parts of his report. He believed that more
weight should be given to recent events in analyzing the forest
products industry because the industry was highly cyclical. He
weighted earnings as 5 for 1987, 4 for 1986, 3 for 1985, 2 for
1984, and 1 for 1983. Thus, he gave more weight to the years
immediately before the sale when he evaluated earnings. On the
other hand, Clausen's method of evaluating upbids minimized the
bids from the 3 years immediately before the sale, even though,
according to Clausen, the earlier years should be given less
weight.
Clausen assumed that no other bidder would take the Walkers'
place. However, he estimated that Brent Walker cost petitioner
$1,169,400 in upbids. This shows that others can cause
substantial upbids for petitioner on timber contracts. Clausen
listed 10 entities in the North Santiam Canyon that competed for
timber. Robert T. Freres, Jr., testified that petitioner's
principal competitors for public timber in the North Santiam
Canyon area during the 1980's were Cedar Lumber, Lyons Veneer,
Young & Morgan, and Frank Lumber. Petitioner also competed,
for example, with Avison Lumber, Frasier Lumber, Vanport
Manufacturing, Boise Cascade, Willamette Industries, and Bohemia.
Clausen did not discuss whether any of these companies would
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