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management contracts. Exh. 977, at 10; Ross, Transcr. at 1188.
By the end of 1979, PMS’s revenues had tripled from 1974 when
Century bought PMS for $1.2 million. Exh. 977, at 4; Exhs. 750,
964. PMS’s gross income from 1976 to 1980 was:
Year Gross Income Exhibit
1976 $3.4 million 5751
1977 4.3 million 278, tab 4
1978 6.0 million 963
1979 7.7 million 964
1980 9.6 million 965
PMS’s pretax earnings for 1976 through 1978 were $317,615,
$451,058, and $831,828, respectively. Exh. 278, tab 14.
In March 1979, Kanter brought to Schnitzer’s attention a
potentially large property management opportunity. Exhs. 259,
260. Nevertheless, in late March 1979, Schnitzer informed Kanter
he was disappointed that Kanter had failed to produce the
additional property management business for PMS that had been
expected. Schnitzer decided Century should purchase IRA’s
47.5-percent PMS stock interest. Exh. 262. Kanter suggested he
might make a counteroffer to purchase Century’s remaining shares
in PMS. Exh. 263; Schnitzer, Transcr. at 2175. By letter dated
July 17, 1979, Kanter proposed that IRA would purchase PMS’s
remaining shares for $3.1 million to be paid in installments over
10 years. Exh. 268. On August 1, 1979, Schnitzer and Kanter
agreed that Century would purchase the PMS stock held by IRA for
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