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Check out this story on Tennessean. Read honest and unbiased product reviews from our users. Bill O'Neil did a good job with the weeekend sports. George R. Beck, Director of Purchases for AMP, is contacted at the home office in Harrisburg, Pennsylvania, and he arranges to sell it to one or more of the mills from whom AMP purchases its raw materials. Beck, previously identified, testified that as Director of Purchases he supervised the procurement of all production materials, expense items and capital equipment at all of AMP's plants and that he also supervised the sale of scrap.

Beck stated that he was familiar with AMP's Greensboro operation and that during the period the operation of that plant remained essentially the same. As to the sale of scrap materials, Beck testified as follows:. Among my duties are the handling of sales of scrap materials resulting from Greensboro Plant operations. Scrap that results from the Greensboro operations is always sold to the suppliers from whom we procure our raw materials. It is sold at published prices. The selling of scrap is a customary and regular activity of the company in the course of its business.

Raw materials that have been damaged in some manner prior to being put into process are sold at published scrap prices. The Company also has occasion to sell items of in-process inventory and, when it does, scrap prices are received for such sales. Items of in-process inventories which are sold could not be completed into finished products by another manufacturer. As to whether or not any special equipment is required for the customer to further process Amp's products after Amp ships them to the customer, the whole business is predicated on the premise that Amp furnishes its customers with devices which cannot be used for the most part until the customer uses application equipment designed and manufactured by Amp, Inc.

On cross-examination by Guilford County, Mr.

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Beck testified that generally AMP had been manufacturing the same line of products since He also stated that one-half of the raw metal received by the Greensboro plant was reduced to scrap during the manufacturing process and that mills supplying AMP with the raw material brass and copper coils repurchased this scrap at published prices supplied to the Harrisburg office. Ernest L. Price, Tax Manager for AMP, testified that his duties included responsibility for the entire tax liability of the corporation and its affiliates to ALL taxing authorities.

Specifically, as to the Greensboro operation, Mr. Price testified as follows:. During the years through , Amp, Inc. I have made a computation of percentage of scrap generated from the processing of raw materials at the Greensboro Plant for each of the years through , based upon the raw materials that are issued into production during the year as compared with the scrap generated during that year. These figures are based on the books and records of the Company.

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Following the above quoted testimony, Mr. Price testified as to certain relevant statistical data. We have summarized this testimony in tabular form. Price then testified that under the accounting used by AMP book value was defined as the lower of cost or of market. At this point, the witness testified as follows as to the "true cash value" of AMP's Greensboro inventories on the relevant valuation dates. For the purposes of comparison, we have listed these figures with those originally included in AMP's abstracts.

See Table II, supra.

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Price Abstracts. Price then described how he had computed the "true cash values" of inventories as listed in Column 3 of Table VII, supra. He stated that all of his computations were based on the theory that AMP could only sell "in-process" inventory back to the supplier since a customer would not use them. Price's computations are best explained by use of the following mathematical equation Price's own example taken from his 1 January figures :.

Price pointed out that AMP had no finished goods on hand as of 1 January and explained that this was why his computations for that year only included in-process and raw material inventories. See Table VI, supra. However, he conceded that if AMP had had finished goods on hand as of 1 January , then he would have recognized the "book value" of such goods as "true cash value.

Price stated that AMP had obtained the services of the professional appraisal firm of Dawson, Desmond and Van Cleve to prepare and file the business property abstracts of the Greensboro plant for the years in question. Price admitted that the values he testified to in Column 3, Table VII, supra, were "inconsistent with the values Dawson, Desmond and Van Cleve gave to Guilford County" in the business property abstracts filed by and signed by them for each of the respective years. See Table VII, supra.

He sought to explain this inconsistency as follows:. The reason for this difference is that we asked the Dawson, Desmond and Van Cleve firm to evaluate true cash value for us because at that time, frankly, we did not know how to do it. We did not know how to go from book value to cash value, and I was busy with other things, other responsibilities. They were qualified at that point. They knew how and I did not. So they handled it. We gave them all the necessary basic information on which they could make their determination. We did not get into a computation of true cash value, our own computation, until after Guilford County told us in that we owed them a lot of money.