National Industrial Investors, Inc. - Page 11

                                               - 11 -                                                  

            Systems Corp. (Controlled Casting), National For Sale by Owner                             
            Realty Corp. (Sale By Owner), National Industrial Management                               
            Corporation (Industrial Management), and Far Western Real Estate                           
            Corp. (Far Western).  For the years for which petitioner's                                 
            returns show consolidated losses, the separate gains and losses                            
            of petitioner and its subsidiaries are as follows:                                         
                  Total       Controlled   Industrial     Sale By    Far                               
            Year   Loss       NII         Casting     Management     Owner     Western                 
            1989 ($35,229)  ($35,229)       *             *           *         *                      
            1988   (32,766)   (32,716)       *             *           *         (50)                  
            1985   (46,115)   (41,602)       *          (3,995)       (408)     (110)                  
            1984   (35,992)    (4,814)       *         (11,594)      3,722   (23,306)                  
            1983   (38,514)     7,188        *         (13,821)     (5,232)  (26,949)                  
            1982   (47,378)   (25,720)       *          (1,709)    (19,949)       *                    
            1978   (40,328)    (2,565)       *         (37,763)         *         *                    
            1976   (19,941)   (36,113)     (486)        16,658          *         *                    
                  * represent years in which petitioner's consolidated return did not include          
                  the subsidiary.                                                                      
                  Controlled Casting emerged from an arrangement between                               
            Sears, an inventor, and Shell Chemical Company (Shell).  They                              
            sought to develop a new type of foundry equipment, which, by                               
            injecting sand with a resin-type material, could form the mixture                          
            into molds.  Sears and Shell agreed that if Shell would develop                            
            the resin and give Sears a 10-year license, then he, in turn,                              
            would design the machine.  Shell subsequently formulated the                               
            resin from benzene, a petroleum derivative.                                                
                  Sears incorporated Controlled Casting and, in 1973, sold 80                          
            percent of its stock to petitioner.  Not only did Controlled                               
            Casting design the machine, but it also manufactured several of                            
            them and sold two to General Motors.  However, shortly                                     





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