Werner Erhard

“ As of June 1, 1981, WEA took over all of the business operations formally conducted by est, a.e.c., including the seminars, the 6-day training and the est standard training. Substantially all the employees of est, a.e.c. became employees of WEA. Generally, Werner Erhard continued the same basic work in the operations of WEA that he had performed prior to June 1, 1981, with est, a.e.c.
In a June 19, 1981, memorandum from Gary Grace to Margolis, Gary Grace forwarded a list of outstanding loans to Werner Erhard from Antigua Banking, Ltd. ”

“ Petitioner contends that the decision to shed est, a.e.c. in 1981 and continue the Erhard operations as Werner Erhard & Associates, a sole proprietorship, was prompted by business realities and that the transactions between WEA and est, a.e.c., as well as the financial obligations purportedly incurred, were thus valid and should be given effect for tax purposes. The business reality, argues petitioners, was to escape the perceived financial damage to the enterprise caused by the continued association of the enterprise with Margolis. ”

“ A client earned interest on positive balances in the system accounting maintained for him and was charged interest on negative balances. Transactions between system entities were not recorded in the system accounting since the funds stayed within the system. The office of Harry Margolis maintained only one combined system accounting for Werner Erhard and est, a.e.c. ”

“ The books and records of ICF are audited on an annual basis by a Swiss accounting firm. In April 1981, Werner Erhard telephoned Somary to explain the formation of WEA and also to inform Somary of the need for a loan of about $9,000,000- $10,000,000. Somary was unable to provide the funds. Shortly thereafter, Somary was called by Margolis who inquired whether Erhard had contacted Somary about the need for financing and whether ICF would be willing to accept funds made available by an entity designated by Margolis and to then lend such funds to the Werner Erhard organization. ”

“ Ellen Erhard appeals the Tax Court's dismissal of her petition as untimely filed.
We affirm.
I. Ellen and Werner Erhard filed joint tax returns for the 1984, 1985, 1986, 1987, and 1988 tax years. When they divorced, Ellen executed a power of attorney appointing Werner as her attorney-in-fact and authorizing him to act on her behalf regarding the 1984, 1985, and 1986 tax years. Werner, in turn, executed a second power of attorney authorizing New York attorney Michael Saltzman to act on behalf of him and Ellen for the 1984, 1985, 1986, and 1987 tax years (hereinafter "Saltzman power") . ”

“ In the September 16, 1980, memorandum to Werner Erhard, the attorneys also stated:
The existing legal and financial structure of est is and has been consistent with your intention to own est by giving it away; a structure consistent with your desire not be seen to be "in it for the money" while maximizing your ability to expand your contribution to people's well-being and the transformation of the quality of their lives. ”

“ In the statutory notice of deficiency issued to petitioners for the taxable year 1983 respondent made the following adjustments: (1) Disallowance of the Schedule C depreciation deduction in the amount of $1,332,998 in connection with the activity of the sole proprietorship Werner Erhard & Associates; and (2) disallowance of the Schedule C interest expense deduction in the amount of $300,000. ”

“ Hermann made no answer, his eyes sought the ground darkly.
"Answer me, Count Arnau! If any one on earth has a right to ask, I have. What do you know?"
"All!"
In his blunt, broken tone, lay the whole dashed down power of his nature in one word; the girl stood for a moment as if struck by lightning. ”

“ With like proud, bold self-assertion Wolfgang Elmhorst was wont to silence his opponents and to win the victory, but it stood him in no stead here. Erna had risen and stood confronting him, the scorn which he would not brook still looking from her eyes.
"No!" she said, decidedly. "That work of yours condemns you. The man capable of achieving that should have had the courage to depend upon himself, and to go forward alone, for he carried his future within him. My uncle recognized your talent long before you wooed his daughter ”

“ Her voice became firmer as she went on, but something like a smile crossed the Count's features.
"Will you prevent it?"
"Yes!" replied she energetically. "I shall appeal to the Präsidentin, and Frau von Reinert, that both by their influence may--"
"You will not do that!" interrupted Hermann, gravely and sternly. "You will not misuse the knowledge which a chance possessed you of. This is a matter which concerns us men alone, and must be settled by us alone. ”

“ A half stifled cry of delight escaped her lips; she involuntarily raised her arms, and was on the point of hurrying away, when she suddenly remembered Hermann's presence. A deep flush suffused her countenance, she let her arms fall and remained where she was, as if rooted to the ground. The Count had followed the direction of her eyes, and now saw the cause of this sudden change. Eugen Reinert, who, after a hasty question in the passage, strode hastily into the room without observing his friend.
"Gertrud! Um Gotteswillen, you here!" ”

“ Count Hermann Arnau will hardly receive a refusal, however ambitious he may be."
"Who is this Mademoiselle Walter?" asked Hermann, instead of answering, without turning his eyes from the window.
The grandmother looked at him with some astonishment, the question seemed to her to have very little place in this important conversation.
"She is the new governess for Eurt's daughters," replied the Präsidentin coldly. "She is said to be pretty well educated and useful, and the children are wonderfully fond of her considering the short time she has been with them. ”

“ Do not hold me back, I must go."
"And do you really imagine," cried Hermann, "that I will let you go? Oh, your incomprehensibleness does not alarm me any longer. You have given a right over you by this sacrifice which I shall know how to use."
Gertrud looked earnestly at him for a moment.
"No," said she at last, "with this sacrifice I have torn every tie between us for ever. What has happened does not exist for the world, and the daughter of the thief, Brand, can never be the wife of Count Arnau." ”

“ My girl is healthy in body and mind; she has grown up free as a bird of the air, and she shall stay so. If you call that running wild, so be it, for aught I care! My child suits me."
"Perhaps so, but you will not always be the sole ruling force in her life. If Erna should marry----"
"Mar--ry?" Thurgau repeated in dismay.
"Certainly, you must expect her to have lovers, sooner or later."
"The fellow who dares to present himself as such shall have a lesson from me that he'll remember!" roared the Freiherr in a rage.
"You bid fair to be an amiable father-in-law," said Nordheim, dryly. ”

“ She suddenly drew herself up with almost fierce energy.
"You are right, Count Arnau, it was your father--and it was mine! I shall not forget that."
A heavy, oppressive pause followed. At last Hermann raised his head again.
"We have reached a point now where nothing more can be kept silent or spared. Will you tell me who has revealed the secret?"
Since the confession of the Count a strange change had passed over Gertrud. The anxiety, the conflict which had hitherto been betrayed in her manner, had given place to an unnatural calm ”

“ Slowly Gertrud drew it out and gave it to him; he opened it, the Präsidentin's eyes hung in breathless suspense on his features.
No one spoke for some seconds, but the Count leaned more and more heavily on the table, his cheeks pale as death; with averted face he at last, without speaking a word, gave back the paper, threw himself into a chair, and covered his eyes with his hand.
The Präsidentin knew enough.
"Mademoiselle--" it was in vain that she endeavoured to make her voice firm, it trembled audibly--"Mademoiselle, you can, and will not, make any use of this document; it accuses the dead." ”

“ The Präsidentin was silent, but her face betrayed what she thought of this answer--so this was the end of that unspeakable, glowing passion, which had once torn away the Gräfin Arnau from all the bounds of reason and sense! Hermann well understood his grandmother's look and shrug of the shoulders; was it not he who had favoured the match? It is always painful to have to confess to an error, and today the Count seemed little in the humour for it. As he came in, his eyes had flown restlessly and searchingly through the room, and the cloud which already lay on his brow had become darker. ”

“ I never doubted your activity, Herr Elmhorst; you have certainly by its aid achieved brilliant results."
Wolfgang involuntarily held himself more erect; he knew what result was meant, but he merely smiled contemptuously. Here he was not merely 'the future husband of Alice Nordheim' as in society in the capital; here he was in his own domain, and with all the proud self-consciousness of a man perfectly aware of his talent and of his achievements, he replied, "You allude to my work as an engineer? The Wolkenstein bridge is indeed my first work, but it will hardly be my last." ”

“ It was Gertrud, once betrothed to Reinert. The Präsidentin observed his surprise.
"Ah, so! Mademoiselle Walter--the Herr Count Arnau."
She bent down to her two grandchildren and gave them her cheek to kiss.
Hermann's bow was returned with the most measured formality and coldness, and not the slightest change in Gertrud's face betrayed her recognition. She took the children's hands, and at once prepared to leave the garden house.
"Do not make the walk too long to-day, mademoiselle, it is too hot for the children."
"I will see that they do not go too far, we will not go beyond the park to-day." ”

“ Herr Gersdorf, a man of about forty, very fine-looking, with a grave, intellectual face, seemed to think his words had been misunderstood, for he smiled rather ironically as he rejoined, "I certainly do not doubt Herr Elmhorst's zeal in the performance of duty. We all know he would be more apt to do too much than too little. The company may congratulate itself upon having secured in its service so much energy and ability."
"It certainly is not owing to the company that it is so," said Nordheim, with a shrug. ”

“ Nordheim asked, with evident annoyance. "If he is, I must really entreat----"
"Griff is never cross," Erna interposed almost angrily. "He never hurts any one, and always lets strangers pat him, but he does not like this gentleman at all, and----"
"Baroness--I beg of you!" murmured Frau von Lasberg, with difficulty maintaining her formal demeanour. Elmhorst, however, acknowledged Erna's words with a low bow. ”

“ No wonder the man is arrogant."
"Papa," said Erna, who had been standing beside her father's chair, and who now put her arm around his neck, "I do not think Uncle Nordheim likes me: he was so cold and formal."
"That is his way," said Thurgau, drawing her towards him. "But he has a great deal of fault to find with you, you romp."
"With Fräulein Erna?" asked Reinsfeld, with as much astonishment and indignation in look and tone as if the matter in question had been high treason.
"Yes; she ought to conduct herself like a Fräulein von Thurgau. ”

“ Fortunately, she recalled the fact that a certain Eberstein, in a certain century, had taken up with astrology, and that partly explained Herr Wehlau Wehlenberg's extraordinary tastes, but she nevertheless felt herself called upon to repeat to him a saying of her father's: "My papa says that a man of an ancient, noble line ought to make no concessions to the present; it is beneath his dignity."
"That is the Herr Baron's opinion," said Hans, with a shrug. "He seems to have been so entirely secluded from the world that he has lost all sympathy with it ”

“ Do you imagine that his daughter would refrain from avenging him?"
"Do not build too many hopes on this paper; our tribunals cannot proceed against the dead, and as for the living--we are ready for any sacrifice, for any reparation within the bounds of possibility--" She stopped suddenly, even this energetic woman's eyes sank almost timidly before Gertrud's. "Take care, mademoiselle!" cried she, breaking out into anger, "take care not to drive us to do our utmost. The family of Count Arnau is still powerful and influential enough, and they will risk all, if it concerns their honour. ”

“ It makes you beside yourself, Hermann, what has become of your self-command, your strength of will?"
Grandmother and grandson were alone together, the portières were drawn up, the doors closed; they were secure from listeners. The Count had not yet spoken a single word, with crossed arms he walked up and down incessantly, without answering, without even hearing. The Präsidentin shook her head.
"I cannot understand what there is so dreadful in this discovery. You have searched long enough for the dead man's wife and child ”

“ If his hurt is so indifferent to you, propriety nevertheless demands, that you (at least, in the eyes of others) trouble yourself somewhat about it. The carriage is just driving up, I see."
This advice, given in the tone of a decided command, was evidently as unpalatable to Frau von Reinert as the former to the Baronin, but she, too, did not gainsay it. In the worst of tempers, she rang for her maid to fetch hat and shawl, whilst the Präsidentin left the saloon, supported on Hermann's arm.
CHAPTER VIII.
"That Toni should mention that unfortunate name! ”

“ Thus, for a man who goes up in an airship, the filth and litter of the narrow streets disappear and that which was ugly becomes beautiful.
Unconsciously Werner stepped over to the table and leaned his right hand on it. Proud and commanding by nature, he had never before assumed such a proud, free, commanding pose, had never turned his head and never looked as he did now,—for he had never yet been as free and dominant as he was here in the prison, with but a few hours from execution and death. ”