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Lincoln.

Tell me the facts, please, that you relied on to make that assertion in your

testimony.

A. I'm referring to the December 1986 release of information to The Wall Street Journal.

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Q. When you say you failed to reach a mutual understanding, did you ever have à conversation with Gray about that event?

A. No.

Q. Did you ever do anything to attempt to

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A.

Not on that point, no.

8.

While you did ask for a memorandum to

be issued by Mr. Gray, as a result of that

episode, correct?

A. Yes.

Q.

Is that the only contact you had with

Mr. Gray.concerning the December 24th Wall Street
Journal article, the written request for a nemo?

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No.

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to have some input with him?

Q. All right. At the bottom of page, page 38, please. Would you take a moment to read the second paragraph on that page and over to the top of page 39.

I intend to ask you about vendetta

attitude on the top of page 39.

Are you with me?

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Yes.

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Q. At the top of page 39 after

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Bear with me just a second.

(Consultation was had between the witness

and counsel.)

9. (BY MR. GALLAGHER) Let me just ask
you, because I think I'm reading from your
testimony; you correct me if I'm wrong:
recall testifying before Congress on Tuesday,

You

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November 21st, that, quote, "There was also at
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were trying to hold Lincoln up as an example of

the evil that results from direct investment

excesses?

MR. MCALEER:

Objection.

THE WITNESS: That is my conclusion now, after three years of information coming to my

attention.

Q. (BY MR. GALLAGHER) Do you believe that Black and Gray tried to punish Lincoln for its vocal objections to the direct investment rule?

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THE WITNESS: This is one of those phrases where my choice of words was not very good. I don't, I don't think "punishing" was exactly the right word.

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I think using them as an example of a direct investment violator is a correct

conclusion.

And I don't think that the use of the

word "punishing" was a very wise choice of words

on my part.

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A. I do not believe that had Lincoln challenged the reg, without already being in violation of it, that people would have had this desire to hold them out as the example.

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The fact was there was a violation, and

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there was opposition to the regulation.
believe that those two things together were
intolerable to Mr. Gray. And I understand that.

And I

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Q. Well, at least part of it was because of the vocal objection, at least part of the reason for Mr. Gray's being upset in your view was the vocal objection to the direct investment

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THE WITNESS: I'm sorry. I didn't get the

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