- 9 -
of the economy during the 1970's. Petitioner’s management
attributed these increases to changes in Federal Government
policies which had the effect of encouraging agricultural
cultivation, to a general increase in demand for fertilizer
and petroleum products, and to petitioner’s increased
investment in plant and equipment, most notably fertilizer
plants and facilities for the exploration for and
production of crude oil.
During this period, petitioner raised the capital
needed for expansion through debt financing, primarily in
the form of loans from the Wichita Bank and sales of
subordinated securities. Petitioner also financed its
expansion through leveraged leasing and occasionally
through loans from commercial banks. During this period,
petitioner was highly vulnerable to fluctuations in the
prices of agricultural products.
Oil Production and Refining Activities
A significant portion of petitioner’s business during
the years in issue involved the supply of petroleum
products to its members. Since 1973, petroleum products
have accounted for the largest volume of petitioner’s total
sales. Crude oil was an essential raw material for all of
the petroleum products sold by petitioner during the years
in issue. Over the years, petitioner has sought to improve
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011