E.J. Harrison and Sons, Inc. - Page 28

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               Whatever lingering effect Mrs. Harrison’s conservative                 
          business philosophy may have had on the decisionmaking process,             
          it appears that her responsibility for and influence over the               
          actual decisions of the board were sharply limited in practice.             
          Mrs. Harrison acknowledged that, shortly after her sons joined              
          the business, they became the “supervisors of the company”, and             
          she and Mr. Harrison became primarily responsible for paying                
          bills, keeping track of collections, and keeping the books.  She            
          further acknowledged that major decisions requiring board                   
          approval (such as approval of trash hauling contracts or truck or           
          other equipment purchases) had been “pretty well thought out” by            
          her sons so that, with the exception of one proposed purchase of            
          trucks in the mid-1960s, she never dissented.  Even when she                
          initially had doubts concerning a proposal of one of her sons,              
          her sons were able to win her over to their position.  Myron                
          testified that, in connection with the guaranteed loans, Mrs.               
          Harrison attended meetings with the Bank of America that were               
          held “after most of the decisions were made, for the final                  
          decision”.                                                                  
               The overall picture that emerges is of a company run during            
          the audit years (and for many prior years) by Mrs. Harrison’s               
          sons, each of whom was responsible for managing a key operational           
          function (Myron, finance; James, general operations and                     
          contracts; Ralph, equipment purchasing, maintenance, and                    
          refurbishment) and for the development of all major business                




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Last modified: May 25, 2011