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petitioner and Apache from Mexico to petitioner's and Apache's
warehouses in Nogales, Arizona. Most of the produce sold under
the SCP contract was transported by Transportes.
During the years in issue, Mr. Canelos owned and operated
SUNCO and Alcon, Inc. (Alcon), two Liberian corporations. SUNCO
handled the loading and unloading of petitioner's produce on the
Mexican side of the border. Alcon paid a portion of petitioner's
promissory notes for advances from SCP under the SCP contract.
The Canelos brothers owned and controlled Apollo. Apollo
did not sell or distribute produce for the Canelos growers.
Apollo purchased cartons, seed, and various farming chemicals and
resold them to the Canelos growers. Apollo also purchased
cartons for petitioner's other growers. In addition, during the
years in issue, Apollo rented warehouse space to petitioner in
California and to Apache and Bud Antle, Inc. (Bud Antle), a
wholly owned subsidiary of Dole, in petitioner's complex in
Nogales, Arizona. Apollo gave Apache the lowest rental rate
Apache could find for the warehouse it rented from Apollo.
Apollo and petitioner for years ending 1989 and 1990, and
Apollo, petitioner, and RCLA for years ending 1991 and 1992,
constituted a controlled group within the meaning of section
1563.
In his negotiations with Dole, Mr. Canelos attempted to
reach an agreement that in the whole benefited his produce-
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