United Cancer Council, Inc. - Page 89

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          over the payment of its direct mail campaign expenses.  However,            
          petitioner’s efforts to obtain full control over disbursements              
          from the Escrow Account ultimately were unsuccessful.                       
               In his letter dated July 31, 1986, to Watson, petitioner’s             
          executive director confirmed that he and petitioner’s chief                 
          financial officer would be attending a meeting at W&H’s offices             
          on August 12, 1986.  As part of the agenda for their meeting, the           
          executive director enclosed for Watson a list of petitioner’s               
          “staff concerns”.  Among the listed staff concerns, was one which           
          stated that the “EXECUTIVE COMMITTEE MOVED TO BRING ALL                     
          ACCOUNTING FUNCTIONS IN-HOUSE EFFECTIVE JANUARY 1, 1987.                    
          Approval of all invoices and check requests shall come from the             
          UCC Headquarters, as well as the actual writing and                         
          reconciliation procedures.”                                                 
               In his letter dated August 21, 1986, to Watson, petitioner’s           
          executive director stated his understanding that, at the August             
          12, 1986, meeting with Watson, “It was agreed that when UCC                 
          demonstrates the capability of assuming escrow authority and the            
          escrow account debt level is significantly reduced, then UCC will           
          become the escrow agent.”                                                   
               In her letter dated January 14, 1987, to petitioner’s chief            
          financial officer, preparatory to a meeting scheduled for January           
          28, 1987, a W&H executive stated as follows concerning                      
          petitioner’s previously expressed desire to take over management            
          of disbursements from the Escrow Account, beginning in early                
          1987:                                                                       



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