GAC Produce Co., Inc., An Arizona Corporation - Page 48




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              According to Dr. Frisch, an adjustment to the otros growers'             
         commission rate was needed to account for a difference in the way             
         in which petitioner forwarded the funds it received from the                  
         buyers on behalf of the Canelos growers.  He stated that, for the             
         otros growers, petitioner generally sent the funds to the growers             
         approximately 30 days after the date of sale.  However, for the               
         Canelos growers, SCP lent working capital which petitioner                    
         advanced to the growers; after the sale of the produce,                       
         petitioner immediately credited the net amount, after expenses                
         and commission, from the growers' outstanding balances instead of             
         actually sending money.  Thus, Dr. Frisch concluded, the Canelos              
         growers ended up paying less interest to petitioner than they                 
         would have had petitioner waited approximately 30 days before                 
         giving the growers credit for the sale.  He asserted that                     
         petitioner accordingly enjoyed a 30-day time-value-of-money                   
         advantage with the otros growers that it did not have in its                  
         dealings with the Canelos growers.  Dr. Frisch said that the                  
         Canelos growers would be in an equivalent position if petitioner              
         charged the Canelos growers the 10-percent rate with the otros                
         growers' payment terms, or if it charged them an 11-percent rate              
         with the actual payment terms it used for the Canelos growers.                
              Dr. Frisch asserted also that an adjustment to the otros                 
         growers' commission rate was needed to account for a service                  
         petitioner performed for the Canelos growers that it did not                  





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