E.J. Harrison and Sons, Inc. - Page 6

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               During the audit years, Mrs. Harrison’s principal activities           
          consisted of (1) attending board meetings and voting on major               
          proposals put forward by her sons, who were responsible for the             
          day to day operations of petitioner, (2) engaging in extensive              
          public relations activities on behalf of petitioner, and (3)                
          acting as a coguarantor (together with her sons) of bank loans to           
          petitioner for major capital equipment purchases.                           
               At board meetings during the audit years, Mrs. Harrison                
          uniformly concurred in the proposals put forward by her sons,               
          e.g., proposed trash hauling contracts or equipment purchases.              
          On only one occasion before those years (in the mid-1960s) did              
          Mrs. Harrison “veto” a decision (to purchase new trucks) that had           
          been agreed to by the other directors.                                      
               For the most part, her public relations activities consisted           
          of representing petitioner at civic events, such as meetings of             
          seven chambers of commerce for municipalities where petitioner              
          did business, Boy Scout functions, Ventura County Boys and Girls            
          Club functions, and the Ventura Chamber Music Festival.                     
          Typically, the Harrison family would purchase one or two tables             
          at community events.  They would attend en masse with                       
          Mrs. Harrison always at the head table.                                     
               Although she approved petitioner’s trash hauling contracts             
          as a member of the board of directors, she did not take part in             
          the negotiation of those contracts, nor did she communicate with            






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Last modified: May 25, 2011