4
recycling business. Lawrence McKee (McKee) was also associated
with Unidyne. Unidyne stopped doing business in 1977.
2. Northeast Cellulose, Inc.
In 1977, petitioner (and apparently McKee) started a company
called Northeast Cellulose, Inc. (Northeast). Northeast
brokered, bought, and sold newsprint. Northeast sold commercial
printing paper, magazine paper, and newsprint to retailers and
printers.
Petitioner was an officer and director of Northeast. He
owned 50 percent of the stock of Northeast, a Massachusetts
corporation. Petitioner invested about $4,000 for his Northeast
stock. McKee was Northeast's other 50 percent stockholder and
was president of Northeast.
Petitioner worked about 25 hours per week for Northeast in
1978 and 1979. Among his other duties, petitioner maintained
Northeast's customer and mill contacts. Northeast did not pay a
salary to petitioner in 1979.1
Northeast earned a commission on its sales. Paper mills
typically paid a commission to Northeast of 3 percent, after
freight and related costs. At first, Northeast acted as a
broker. Eventually, however, it took title to the paper, which
required it to establish lines of credit.
1 The record does not indicate whether Northeast paid a
salary to petitioner in any other year.
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