- 3 -
B. Westfield Gage Co.
Petitioner founded and incorporated Westfield Gage Co.
(Westfield Gage), in Westfield, Massachusetts, in 1955. He has
been its president and sole shareholder since then. Westfield
Gage manufactures precision parts for airplanes and jet engines.
Petitioner generally worked 7 or 8 hours per day at
Westfield Gage. He never (1) prepared a written business plan,
(2) conducted economic or business studies, or (3) hired
consultants for Westfield Gage. Westfield Gage's treasurer
prepared budgets when the corporation was having financial
problems.
Westfield Gage was successful. It had total taxable income
of $8,842,137 from 1979 to 1993. It had gross receipts of
$10,523,177 in 1992 and $9,707,359 in 1993 and net profits of
$972,058 in 1992 and $102,470 in 1993.
Pratt and Whitney, Westfield Gage's primary customer, once
asked Westfield Gage to cut its prices 10 percent. Petitioner
did so and Westfield Gage started to lose money. Petitioner
complained to Pratt and Whitney, so Pratt and Whitney gave
Westfield Gage overhaul and repair work. The overhaul and repair
work was profitable and became a major activity for Westfield
Gage.
C. Mary Kuta
Mary Kuta (Kuta) was Westfield Gage's bookkeeper from 1955
to 1992. She kept Westfield Gage's books and records, filed its
quarterly tax returns, and prepared its payroll.
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