Durham Farms #1 - Page 57




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          that he had waived or allowed the Hoyt organization to dispense             
          with the ASA rules requiring blood testing to verify the                    
          parentage of certain calves the Hoyt organization had registered            
          as being produced from embryo transplants.  However, Mr.                    
          Hunsley’s claims were directly contradicted by Mrs. Schnitker’s             
          later testimony.                                                            
               Mrs. Schnitker explained that her husband had been involved            
          in the embryo transplant work done by the Hoyt organization.  She           
          related that around 1990 Jay Hoyt met with her and her husband              
          and told them a calf had to be registered with the ASA for each             
          embryo transplant the Hoyt organization had done, regardless of             
          whether an actual calf had been produced.  Mrs. Schnitker said              
          she agreed to handle the registrations, provided she could reach            
          an understanding with Mr. Hunsley with respect to any nonexistent           
          calves being registered.  According to Mrs. Schnitker, she and              
          Mr. Hunsley came to such an understanding permitting the Hoyt               
          organization to register these nonexistent calves, but he had               
          also told her the Hoyt organization would not be allowed to                 
          register any subsequent cattle characterized as progeny of these            
          nonexistent calves.                                                         
               The Court finds Mrs. Schnitker’s above testimony credible.             
          In addition to believing her to be a trustworthy witness, the               
          Court notes that other reliable evidence in the record                      
          corroborates various aspects of her testimony.  The record                  






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