Durham Farms #1 - Page 51




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          Management’s cattle marketing director from 1987 through 1990,28            
          estimated Management during those years managed a total of 5,000            
          cattle annually.  Of the 5,000 total cattle, she further                    
          estimated 3,000 were mature female cows and another 1,000 cattle            
          consisted of weaned male and female calves.  She also related               
          that the total numbers of cattle annually present stayed about              



               28Mrs. Schnitker had begun working for the Hoyt organization           
          as Ric Hoyt’s secretary.  She eventually became Ric Hoyt’s                  
          assistant, as he traveled extensively on business and was out of            
          the office for substantial periods during the year.  In addition,           
          she had some background in the cattle business and was familiar             
          with the required paperwork, as her husband (who also worked for            
          the Hoyt organization) previously had worked on several ranches.            
          Mrs. Schnitker became Management’s cattle marketing director in             
          late 1987, when Ric Hoyt either left the Hoyt organization or               
          reduced his activities on the Hoyt organization’s behalf.  She              
          served as Management’s cattle marketing director from late 1987             
          through July 31, 1990.  As cattle marketing director, Mrs.                  
          Schnitker reported to another individual who served as                      
          Management’s general manager.  In connection with being cattle              
          marketing director, Mrs. Schnitker had to see that sufficient               
          cattle were sold to generate the funds Management needed to pay             
          its operating expenses.  In addition, she was responsible for               
          Management’s cattle registration department and was Mr. Hawkins’            
          supervisor.  (As indicated previously, Mr. Hawkins helped                   
          maintain the Hoyt organization’s cattle records.)  Mrs. Schnitker           
          related that generally the cattle sold to third parties were                
          mostly bulls and steers and included only a few cows, as she had            
          been told female breeding cattle were to be sold to the cattle-             
          breeding partnerships.  However, she added that, on occasion,               
          when Management’s financial needs were pressing, a load of                  
          heifers would be sold.  Mrs. Schnitker further testified that she           
          did not know whether any of the cattle sold had belonged to the             
          cattle-breeding partnerships.  She elaborated that she relied on            
          Mr. Hawkins for information on the cattle Management managed, as            
          she would have to have accurate information regarding what                  
          numbers of cattle were available to be sold to meet Management’s            
          cash operating requirements.  She also stated she considered the            
          cattle information Mr. Hawkins provided to her to be reliable, as           
          she knew him to be a careful and meticulous individual.                     





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