

                                                                      Exhibit 19
Report from The President

Dear WTD Shareholders:

         I am pleased to report  that our first  quarter of the new fiscal  year
produced net income of $1,944,000 or $.12 per share, compared with net income of
$2,094,000  or $.14 per share for the same  period in 1996.  First  quarter  net
sales were $68.9 million,  compared to $67.0 million for the  comparable  period
last year.

         Despite a  decline  in lumber  prices  compared  to a year ago and last
quarter, we continue to book a solid profit. Lumber usage and demand continue to
be strong,  but lumber  prices have  declined  because of oversupply in the U.S.
market,  caused in part by weakness in the export  lumber  market,  particularly
exports to Japan. Consequently,  some export producers are now manufacturing for
the domestic lumber market. We have responded to the lumber price adjustments by
altering product mix and reducing log costs where possible.

         We are also beginning to see some benefit from an improved chip market.
Commencing July 1, WTD obtained modest chip price increases at most  facilities,
and we intend to seek further chip price increases next quarter.

         We  continue  to  progress  with  our  capital  improvement   projects.
Construction of the  modernization  improvements at our Burke,  Vermont facility
and  expansion  of  drying  capacity  to  benefit  our  Sedro-Woolley,   Pacific
Softwoods,  and Philomath Forest Products mills will be completed in the current
quarter.  Our fingerjoint  facility at Midway Engineered Wood Products,  Inc. is
substantially complete and initial operations have commenced.

         During its first  quarter WTD reduced its senior  secured debt by $1.45
million. Its profit during the first quarter will require the Company to make an
additional debt payment of approximately $0.5 million in September.

         We have finalized an agreement with Greenweld Technologies Ltd. whereby
WTD's  subsidiary,  Greenweld  North  America Co.,  has been  granted  exclusive
authority   to  license the   GREENWELD(TM)   manufacturing   process  to  other
manufacturers  in North America. GREENWELD(TM) is a patented  process for gluing
green or  unseasoned  lumber.  Negotiations  are ongoing  with  potential  North
American licensees of the GREENWELD(TM) technology.  WTD uses the  GREENWELD(TM)
technology in its fingerjointing  facility and has obtained certification by the
Western Wood Products Association for certain vertical use products manufactured
by WTD with the  GREENWELD(TM) process. Certification  is now being  sought  for
horizontal use applications.

     We are holding our Annual Meeting of  Shareholders at 10:00 a.m. local time
on Tuesday, October 7, 1997 at the Tigard Courtyard Marriott, 15686 S.W. Sequoia
Parkway, Tigard, Oregon. We look forward to discussing with our shareholders the
past fiscal year and our current operations.




                                                       Bruce L. Engel
                                                       President

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