Estate of Burton W. Kanter, Deceased, Joshua S. Kanter, Executor, and Naomi R. Kanter, et al. - Page 57

                                                -142-                                                   
            Corp.72  Formby, Transcr. at 1502-03, 1518-19, 1585-86.  The                                
            partners of Essex Partnership and their partnership interests                               
            were as follows:                                                                            
            Percentage                                                                                  
                  Partner                              partnership interest                             
                  MHM                                  47.500                                           
                  IRA                                  26.125                                           
                  THC                                  21.375                                           
                  Connolly                      5.000                                                   
            Eulich attributed Connolly’s relatively modest partnership                                  
            interest in Essex Partnership to the fact that Connolly received                            
            a substantial salary from the Gateway Hilton.  Eulich, Transcr.                             
            at 1635, 1643-1644.                                                                         
                  Essex Corp. and Essex Partnership were both in existence                              
            from January 1982 to December 1984.  Formby, Transcr. at 1502-                              
            1503, 1516; Exh. 817.  General ledgers were maintained for Essex                            
            Corp.  Exh. 697; Formby, Transcr. at 1516.  In some instances,                              
            transactions pertaining to Essex Partnership were posted to the                             
            general ledger of Essex Corp., rather than on the partnership’s                             
            books.  Formby, Transcr. at 1518.                                                           




                  72  The STJ report, at 56, included the following                                     
            recommended finding of fact:  “Eulich,  Kanter, and Connolly                                
            decided to form the Essex Partnership (Essex), which was                                    
            organized in about late 1981”.  This recommended finding of fact                            
            is manifestly unreasonable inasmuch as Connolly generally was                               
            unaware of Essex Partnership’s organization and operation.                                  




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