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through 1990, the revenues of the Member Services Department
exceeded its expenses.
The bulk of petitioner’s revenues is derived from
transaction fees paid for each trade executed on the exchange and
from rents for the lease of space in the CBOT building. For the
years in issue, petitioner received the following revenues from
these sources:
Year Transaction Fees Building Rents
1988 $42,375,000 $22,558,000
1989 41,489,000 24,644,000
1990 43,688,000 24,655,000
All funds received by petitioner, including transfer fees, are
commingled in one bank account.
During 1988 and 1989 and prior years, CBOT members had paid
quarterly dues assessed by the CBOT board of directors to help
cover operating expenses. However, petitioner waived membership
dues for every year from 19908 through the time of trial,
7(...continued)
Expenses 719,423 807,749 1,074,709
8 Petitioner’s 1990 financial statement states that
membership dues were waived in each quarter of 1990. However,
the 1990 statement of consolidated income member’s dues column
reports total dues of $888,000.
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