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with the trustees, Mr. Norton, through his brother, could fire
them and appoint a new trustee who would be more aligned with his
interests. In this way, Mr. Norton was able to control the
actions of the trustees.
Second, the record does not establish that Mr. Owens would
perform his duties as trustee independently. Besides the
comparatively minor annual fee that Mr. Owens received as
trustee, Mr. Owens received other financial benefits from Mr. and
Mrs. Norton that could have influenced the decisions Mr. Owens
would make as trustee. Mr. Owens sold products to, earned
commissions from, and performed subcontract labor work for SNE.
Additionally, Mr. Owens received money from Mr. and Mrs. Norton
to purchase railroad bonds through his trust, the Fall Creek
Trust.
Third, Mr. Norton had access to the funds deposited in the
Denali Company Trust when the funds were transferred back to SNE.
As discussed above, Mr. Owens did not restrict Mr. Norton’s use
of these funds.
C. Did an Economic Interest Pass to Other Beneficiaries of
the Trusts?
We find that an economic interest did not pass to
beneficiaries of the trusts other than Mr. Norton and his family.
The ultimate beneficiaries of the South Denali Lands Trust and
the Denali Company Trust are Mr. and Mrs. Norton and their
children. The Crystal Diversified and Finger Lake Holding Trusts
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