GAC Produce Co., Inc., An Arizona Corporation - Page 61




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              Respondent contends that Apache's charges cannot serve as a              
         comparable to petitioner's commission for the SCP deal because                
         Apache had lower costs, received part of its income from the                  
         actual purchase and resale of produce, received special benefits              
         from the Canelos group, had the use of millions of dollars of the             
         Canelos group's funds for several months until the funds were                 
         transferred, and sold to a different market than the one to which             
         petitioner marketed.  Respondent contends further that Apache is              
         not a reliable comparable because, although it did not                        
         technically belong to the Canelos group, it had very close ties               
         to petitioner and the Canelos group, and it operated as a special             
         preferred entity of the Canelos group.                                        
              In our view, the additional compensation Apache received in              
         the form of interest earned on the Canelos growers' funds and the             
         additional benefits Apache received from petitioner in the form               
         of uncompensated services petitioner performed for Apache render              
         the Apache commission an unreliable comparable for petitioner's               
         commission rate in the SCP deal.  The fact that Apache's                      
         commission rate for its other customers varied between 7 and 12               
         percent, depending on the services rendered, and indications in               
         the record that Mexican growers typically paid a higher                       
         commission rate for similar distribution services17 further                   


               17In her writings, Dr. Cook has placed the commission rates             
                                                              (continued...)           




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