George and Kathleen Knevelbaard, et al. - Page 5

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            there from one day to the next.  Petitioners had to rearrange                             
            their lives so they could be personally present when the milk was                         
            picked up, in order to see the money before they released the                             
            milk.  The situation did not stabilize for months.                                        
                  The personal experiences of three of petitioners illustrate                         
            the effects of these events.                                                              
                  Phillip A. Souza (Souza) was in partnership with his                                
            brother, petitioner Arnold Leroy Souza.  Souza has been a dairy                           
            farmer for 30 years.  At the time of the default, he owned about                          
            450 cows which had to be milked every day.  Unlike many of the                            
            milk producers, Souza was able to find another dairy to buy his                           
            milk within 2 days of Knudsen's default.  Even so, he lost about                          
            $76,000, which forced him to borrow money from his father and a                           
            bank.3  He suffered a stress-related heart attack in 1988 (for                            
            which he takes 11 pills daily).                                                           
                  George Knevelbaard (Knevelbaard) was born into the dairy                            
            industry and believed, based on past experience, that "There                              
            would always be work, there would always be bills, and on the                             
            first and the 15th there was always a check in the mailbox.  This                         
            was as certain as the sun rising and setting."  His expenses were                         
            about 90 percent of his revenue.  He was shocked to discover that                         
            the system on which he and his family had always depended was in                          
            jeopardy.  Suddenly, and continuing for months, he could not                              

                  3     As of Dec. 14, 1995, the money had not all been repaid.                       




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