James L. Sullivan and Dorothy B. Sullivan - Page 6

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          desirable traits to offspring, as evidenced by the offspring's              
          performance at cutting.  Extensive training, which begins around            
          age 2, is required to prepare a horse for cutting horse                     
          competition and costs $500 to $1,500 per month.  A cutting horse            
          may demonstrate proficiency in competition rather quickly, as for           
          example making the finals in an initial competition held for 3-             
          year-olds, the "Futurity" sponsored by the National Cutting Horse           
          Association, or through a more lengthy process of competing in              
          numerous weekend events, called "campaigning", in which points              
          are awarded that may qualify the horse for the finals of the                
          annual National Cutting Horse Association World Championship.               
          There are classes of competition for both professional and                  
          nonprofessional riders, and if the horse competes with a                    
          professional rider, the rider generally must be compensated.                
          Although prize money is also awarded at these competitions, the             
          transportation costs, entry fees, and other expenses associated             
          with participation generally exceed such prize money by a factor            
          of 3 to 1.  Horses with records of superior performance at                  
          competitions are valuable, especially stallions that also                   
          demonstrate an ability to pass along desirable traits to                    
          offspring.  A superior mare or gelding may be worth $30,000 to              
          $100,000 and a superior stallion, $100,000 to $1 million.  Such a           
          stallion can command a fee of $5,000 per breeding.                          
               Mrs. Sullivan used her knowledge of bloodlines to acquire,             





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