Harry Merlo, Earle Chiles
Harry Merlo and Earle Chiles make a joint appearance at the University of Portland in this undated photo. Merlo, the longtime CEO of Louisiana-Pacific Corp., donated millions of dollars to the North Portland college, which named its soccer pitch Merlo Field.
(University of Portland)
Timber entrepreneur Harry Merlo, whose larger-than-life career was marked by great highs and lows, died Monday, Oct. 24. He was 91.
The longtime Portland resident headed Louisiana-Pacific Corp. for more than two decades back when the timber industry was still the most powerful force in Oregon's economy. He played a pivotal role in bringing the original Portland Timbers soccer team and other big-league sporting events to town.
Harry Merlo
"Harry was a fine leader of people," said John Blackwell, former president of the World Forestry Center in Portland. "He knew that if he could turn his employees into millionaires, it might turn him into a billionaire."
Merlo grew up poor, the son of Italian immigrants, in Northern California. His mother opened a restaurant in the family home in a lumber camp to make ends meet. He served in the Marine Corps and then worked for Georgia-Pacific for years.
In 1973, Georgia-Pacific spun off Louisiana-Pacific, and Merlo became its first chief executive. He ran the company for 22 years, much of it from his corporate suite atop the U.S. Bancorp Tower, one of the tallest buildings in town.
Merlo built Louisiana-Pacific into a $3-billion-a-year company. It employed 13,000 and operated 46 sawmills, three pulp mills and other facilities. It pioneered oriented strand board, a cheaper alternative to plywood. Competitors like Weyerhaeuser and Willamette Industries initially declined to get into the oriented strand board business and stuck with plywood, Blackwell said. With the field to itself, Louisiana-Pacific enjoyed huge sales.
"He became arguably the most important and successful timber executive in the country during the industry's heyday," said Kerry Tymchuk, director of the Oregon Historical Society. Tymchuk assisted Merlo write "Vintage Merlo," his 2008 autobiography.
Merlo's long run at Louisiana-Pacific did not end well.
In June 1995, the U.S. attorney slapped the wood products company with a 56-count criminal indictment that charged it with a ''scheme to defraud'' customers and cheat on environmental laws. The charges followed a successful civil suit that alleged the pollution sickened nearby residents.
Other problems followed. It was sued hundreds of times by customers alleging the company had sold defective home siding that sprouted mushrooms. Shareholders complained that the company had misled investors. Ultimately, the problems dethroned Merlo in July 1995.
Louisiana-Pacific has since moved its corporate headquarters to Nashville. Curt Stevens, current CEO of the company, said Merlo's gamble on oriented strand board continues to pay off. It "set the stage for the company's successful focus on engineered wood products, of which we are a world leader," Stevens said.
Merlo gave away millions of dollars to the University of Portland, the World Forestry Center, St. Mary's Home for Boys and other causes. In recognition of his gifts, the North Portland college named its soccer pitch Merlo Field.
Merlo also left a lasting impact on Portland's sports scene.
He brought professional soccer to the city, buying the original Portland Timbers franchise of the North American Soccer League. He also played an instrumental role in bringing Davis Cup tennis matches to Portland, once publicly castigating John McEnroe and other professional players for their vulgar language.
He is survived by his wife, Flo Newton-Merlo, son Harry Merlo Jr. (Billie) two grandsons and two stepchildren.
A memorial service will be held 3 p.m. Saturday, Nov. 19, at the University of Portland.
-- Jeff Manning