Report from the President


Dear WTD Shareholders:

     Our second quarter produced a disappointing net loss of
$535,000, or $.10 per share.  Although lumber prices allowed
profitable operations during the first part of the quarter, the
lumber market suffered from significant weakness in October.  Chip
price declines in October contributed to the loss.

     We are doing a number of things to make our operations more
efficient and improve our survivability during these tough times,
such as making selected capital improvements, running through
breaks and meal periods, and keeping our log inventories short in
order to better match lumber prices.

     A number of larger economic and policy issues affect our
performance, including the following:

     Federal Timber - As a result of recent actions by Congress,
     some federal timber is now being released for harvest. 
     Although historically WTD has not been dependent on federal
     timber, any addition to the available raw material supply is
     welcomed and hopefully can help restore more reasonable raw
     material costs relative to lumber prices.

     Canadian Imports - Our northern neighbors, benefiting from
     favorable exchange rates, subsidized timber costs, and fewer
     environmental restrictions, have captured in excess of 30% of
     the U.S. lumber market.  Over the long term, more
     environmental and other timber harvesting restrictions are
     predicted in Canada which should help blunt the Canadian
     impact.

     Interest Rates - It is our hope that continued reasonable
     interest rates and general economic strength will contribute
     to a healthy lumber market during calendar 1996.

     Operating conditions have been difficult for the last twelve
months and there have been additional permanent mill closures in
the Pacific Northwest.  Our view is that less efficient lumber
producers will continue to be driven out of business by the
challenging industry conditions, leaving fewer, more efficient
operations.  We intend to continue to be among the most efficient
producers.




Bruce L. Engel
President