Barry B. Bealor and Nancy L. Bealor, et al. - Page 142

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               RE:  MIT 82                                                            
               On July 1, 1984, Machise Interstate Transportation Company,            
               Inc. paid MIT 82 $473,458.00 consisting of the following:              
                    Repayment of balance of advance                                   
                    at July 1, 1983                    $120,919.90                    
                    Interest due on above at 10% to                                   
                    July 1, 1984                       12,091.99                      
                    Late charge on Fee due at July 1,                                 
                    1983 (10% x $2,880,595.08)         288,059.51                     
                    Partial payment of fee              52,386.60                     
                                                  $473,458.00                         
               Your share of this payment was $7,698.50 which we used                 
               to pay the annual installment due on your note on July                 
               1, 1984.  The interest portion of this payment which                   
               you may deduct on your 1984 income tax return is                       
               $4,730.15                                                              
               The remaining balance due on your note after the                       
               July 1, 1984, payment is $ 44,333.15.                                  
               For financial statement purposes the market value of                   
               your interest in MIT 82 at July 1, 1984 was $50,500.00.                
               We will be sending you an accounting (Form K-1) soon                   
               after the end of the year which will contain all of the                
               information needed for your 1984 income tax return.                    
               Please call me if you have any questions about MIT 82.                 
               Schweiger received no financial statements for Machise.  He            
          had a great deal of faith in Fred, and, as he explained, did not            
          "dot the I's and cross the T's in a very sophisticated manner               
          about asking for financial statements * * * and things like                 
          that."                                                                      
               Schweiger understood that he had signed a note for which he            
          was liable, but he received no demand for repayments.  He was               
          instead informed that the note had been paid off.  He was not               
          aware of the termination agreements.                                        




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