River City Ranches #4 - Page 104

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          transaction to acquire 584 breeding sheep on March 20, 1983.                
          Presumably, an important incident of breeding flock ownership is            
          the right to benefit from any lambs produced by that flock.18               
          However, the above 1981, 1982, and 1983 flock recap sheets                  
          intentionally omitted and failed to provide such material                   
          information concerning a partnership's alleged breeding sheep               
          during that partnership's first year of operations.                         
               Further, while the bills of sale reflect the eight                     
          partnerships (excluding OGT 90) as having also acquired some rams           
          from Barnes Ranches, the annual flock recap sheets show each                
          partnership to have always owned only breeding ewes.  The Court             
          does not find convincing Mr. Hoyt's attempted explanation of this           
          discrepancy.  He claimed that the partnerships initially had                
          acquired these rams for various short-term breeding projects that           
          were terminated by the end of each partnership's first year of              
          operations.  However, the flock recap sheets do not reflect these           
          partnerships to have later "exchanged" for ewes these rams they             
          initially "acquired".  Further, the sharecrop agreement each                

               18Although the sharecrop agreements provided that Barnes               
          Ranches, as compensation for its services, was to receive all               
          lambs a partnership's breeding flock produced, a partnership was            
          still to retain the breeding value certificates as to any male              
          lambs.  See, however, infra, the discussion regarding breeding              
          value certificate transactions whereby the partnerships later               
          "sold" some of these "certificates" to the Barnes family.                   

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