The Board of Trade of the City of Chicago and Subsidiaries - Page 14

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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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