Appendix — Ex parte Phillips

Supreme Court brief1943

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Text

n0 Court if “the United States «

OCTOBER TERM, 1942

Ne.

FORD MOTOR COMPANY,

Petitioner,

vs.

THE GORDON FORM LATHE COMPANY,

Respondent.

Transcript of Record

ip) Beticien Sor Witt of Cortienert to tho Und States Ciceult

Court of Appeals for the Sixth Circuit

VOLUME I.

Defendant’s Record (Continued).

I. Josern Fanzey,

1664 National Bank Bldg.,

Detroit, Michigan,

Cooper, Kerr & Dunnam,

Woolworth Bldg., 233 Broadway,

New York, New York,

Attorneys for Petitioner.

oe. Lecuer, Micuart, Wurtz & Spony,

3 110 East Wisconsin Ave., Milwaukee, Wisconsin,

Ricuzy & Warts,

Union Commerce Bldg., Cleveland, Ohio,

ee » Swan, Fave & Hanpesty,

- Ford Bldg., Detroit, Michigan,

_ — Attorneys for Respondent.

United States Circuit Court of Appeals

FOR THE SIXTH CIRCUIT.

THE GORDON FORM LATHE COMPANY,

Plaintiff-Appellant and Cross-Appellee,

Vs.

FORD MOTOR COMPANY,

Defendant-Appellee and Cross-Appellant.

Eevity No. 4564.

AprraL From

Tue District Covert or THE Unitep States,

Eastern District or MICHIGAN,

SovuTHERN Division.

TRANSCRIPT OF RECORD.

VOLUME II.

Defendant’s Record (Continued).

Lecuer, MicnaeL, Wuyte & Spon,

110 East Wisconsin Ave., Milwaukee, Wisconsin,

Ricuey & Watts,

Union Commerce Bldg., Cleveland, Ohio,

Swan, Frye & Harpesty,

Ford Bldg., Detroit, Michigan,

Attorneys for Plaintiff-Appellant and

Cross-Appellee.

Bopman, Lonctey, Bocie, Mippteton & Far ey,

1400 Buhl Bldg., Detroit, Michigan,

Cooper, Kerr & DunHam,

Woolworth Bldg., 233 Broadway,

New York, New York,

Attorneys for Defendant-Appellee and

Cross-Appellant.

_

INDEX.

VOLUME I.

Trial Papers, Plaintiff’s Record and Part of

Defendant’s Record.

O03 | 1

Decree on Mandate ...........cceeeeceeee cere eeeeeeetees 2

Report of Special Master...........ceseeeeeeeeeeeeerenes 4

I. Nature of Invention and History of Litigation and

of Defendant’s Use of Machinery............++++- 5

Te CEE GE PSUR, seco cece cedcccvvcscesecescess 9

III. Accounting Period, and Production of Shafts on In-

fringing Machines: Question of Notice............ 11

A. Beginning of Period.............eeeeeeeeeees 11

B. Production of Camshafts and End of Accounting

EE. Givdeccisscssedidaceurecisipevernesss 15

DPE dd va cebuG dese eda cence b2eeeene cebnesnedees 17

A. Profits from Infringement................+... 18

1. Standard of Comparison...............+.6+- 18

a. Standard for Model A Shaft............ 21

(1) Pioch and Modified Walcott Machines 21

(2) Westinghouse Lathe ............... 24

(3) Ford Cam Shaper.............0.06. 28

b. Standard for Tractor Shaft............. 34

e. Effect of Choice of Incorrect Standard... 35

2. Savings from Use of Infringing Machines... 36

a. Savings or Loss in Other Operations:

I ci 5e crag cdeadteni eesenne 40

b. Savings in Cam-Roughing Operation..... 42

(1) Direct Labor Savings............... 42

I

(a) Speeds of Production on Model T

SEE Wav siveuucdebeverdeccc... 43

(b) Speeds of Production on Model A

eundnd whsdecamewen sive: 44

(c) Speeds of Production on Tractor

WE. Rdedbdduwd deouceedser sos 46

(2) Other Savings: Overhead or Burden 47

(3) Offset of Loss from Scrapping Shap-

GOP Kabreversseedicecseseesbedesens 09

3. Apportionment of Profits.................. 60

V. Damages: Reasonable Royalty................... 71

A. Conditions to Assessment of Reasonable Royalty 73

B. Amount of Royalty...................000055. 74

VI. Questions of Clean Hands and of Increase of Re-

ctpinis MLO E EEL TE TTT eC O TT er Es 81

i EEL vic ce es eed veecuuenccadsemience: 81

B. Increase of Recovery..............0.0ce0e00.. 84

Me MN ons ios Feo eee 93

Schedule A. Production of Camshafts on Infringing Ma-

GUNN Saha bulieesaedeveunerwéianetiac<cs LSS. 94

Schedule B. Proration of Production on Camshafts be-

tween Pioch and Walcott Machines, May 14, 1930 to

March 15, 1931, inclusive........................... 97

Schedule C. Comparative Costs on Cam-Roughing Op-

eration with Walcott Lathes and Standards of Com-

I wleeeas cedanveeedcscdte ee

Clerk’s Notice of the Filing of the Masier’s Report........

Plaintiff’s Objections to Master’s SIA re

Exceptions of Defendant to the Report of the Special Master

Motion for Action Upon Master’s Report and Objections

sane ER EL ENT ES Ea aE OE

al BOP i be a in ee ——

_

Gohodule I ....cccccccccvcccscccecversscssscssccsees

Schedule TI... ccccccccccccccccccvvcvcccccsescscsess

Gohodalle TET ...-cccccccscccccccccsvcccvccerecsscese

Schadaa TY occ ccccncccecvcvcserseccecveeseseseeues

Notice of Motion for Action Upon Master’s Report........

Opinion of the Hon. Arthur J. Tuttle, District Judge, on the

Objections to the Master’s Report..........-..+.+++++

Master’s Order for Statement of Account, dated July 6, 1937

Exhibit A—Defendant’s Statement of Account, filed Septem-

ber SF, TORT cc ccccvccdscvessovescccerevescsceressese

Exhibit 7. Operation Sheet No. 1............-+-0005-

Operation Ghost He. B....ccccvcccccsvess:

Copssiien Best HO. Boos cvevvescccsceess

Copspaiian Geet TG Gikccc ccc cccscccevas'

Cepmens net TO Bie 6556 caiveceseccesns

Exhibit 10. Material Price Card No. 1................

Exhibit 11. Computation of Certain Items of Cost of

Gordon Lathe Operation on Tractor Cam-

SEEN dc voveutesesbeveuresedspancaceecess

Exhibit 12. Computation of Certain Costs Involved in

Rough Grinding Operation on Tractor Cam-

shafts by Landis 10 x 36 Grinders during

Period July 1, 1925 to January 1, 1928.....

Exhibit B—Amendment to Defendant’s Statement of Ac-

count, verified December 31, 1937.................-06-

Ptf. Rec. Vol. III beginning line 18, page 29 of Type-

written Transcript (Mr. Spohn)..................

Master’s Order for Statement of Account, dated October 29,

ee gee a net S Ret Sale a Ae aR ent lye BAA ce EE es AMIS

Exhibit C—Defendant’s Further Statement of Account,

i NY EL I oc ote sapcetaerensteauees esis

Ptf. Rec. Vol. III from page 34, line 26 to page 37, line 3

inclusive of Typewritten Transcript (Mr. Spohn)..

—_— tak

III

158

160

161

166

169

171

193

TRANSCRIPT OF TESTIMONY

(Designated by both Plaintiff and Defendant).

PIE (ia Seo vecunspasserdsesdvevsetecdeciesn 195

PLAINTIFF’S RECORD.

Frep M. Hovis (Defendant’s Witness) :

Cross Examination by Mr. Spohn..................... 195

Cross Examination by Mr. Farley.................... 208

Re-Cross Examination by Mr. Spohn.................. 212

Re-Cross Examination by Mr. PO hip eseioceicess 214

Re-Cross Examination by Mr. Spohn.................. 216

Harotp M. Woenrte (Defendant’s Witness) :

Cross Examination by Mr. Spohn..................... 216

Re-Cross Examination by Mr. Spohn.................. 220

Cross Examination by Mr. Spohn..................... 227

Re-Direct Examination by Mr. MUS s aries sees kr enk, 239

Re-Cross Examination by Mr. MINN 6 pdt deddndece vis 242

Re-Direct Examination by Mr. WE ddisesecessercac 244

F rep M. Hovis (Recalled) :

Cross Examination by Mr. Ms sadeksceyssereo cis 244

Harotp M. Woenrte ( Recalled) :

Cross Examination by Mr. MI esas hea is coves 246

Cross Examination by Mr. Co near ea ane 249

Norman R. Scovity (Defendant’s Witness) :

Direct Examination by Mr. MNES Fidavesséecaddenss, 253

Cross Examination by Mr. WE Seu stecuny ison caine 254

Topp L. Morse (Plaintiff’s Witness) :

Direct Examination by Mr. Ws ivasesedonsdscses 255

Cross Examination by Mr. Sear asarsususs telse. 258

Re-Direct Examination WP DA 5 ior ecccscessecs 273

Re-Cross Examination | 274

IV

_

CuarLes Gorpon (Plaintiff’s Witness) :

Direct Examination by Mr. Spohn............+-+++005 275

Cross Examination by Mr. Farley............+..0.0+5 280

Re-Direct Examination by Mr. Spohn................- 282

Cross Examination by Mr. Farley...............++4+- 283

Lyte E. Broveuton (Plaintiff’s Witness) :

Direct* Examination by Mr. Spohn.................+- 291

Howarp Jones (Plaintiff’s Witness) :

Direct Examination by Mr. Spohn...............++45- 296

Cross Examination by Mr. Farley..............++0005 300

Re-Direct Examination by Mr. Spohn...............-- 302

Re-Cross Examination by Mr. Farley................. 303

Mites G. Stonrker (Plaintiff’s Witness) :

Direct Examination by Mr. Spohn...............-.0+5 304

Cross Examination by Mr. Farley................006- 308

DEFENDANT’S RECORD.

Cuares Gorpon (Plaintiff’s Witness) :

Cross Examination by Mr. Farley.................+-. 312

Topp L. Moise (Recalled) (Plaintiff’s Witness) :

Cross Examination by Mr. Farley.................4.. 423

* The Examination of Lyle E. Broughton by Mr. Spohn, appearing on

page 291, was incorrectly stated in the Typewritten Transcript. It should

be ‘‘Direct’’ instead of ‘‘Cross.’’

VOLUME II.

Defendant’s Record (Continued).

Morris E. Suawkey (Defendant’s Witness) :

Direct Examination by Mr. Farley...................,

Spencer W. Lipsy (Defendant’s Witness) :

Direct Examination by Mr. Farley....................

Cross Examination by Mr. Spohn.....................

Re-Direct Examination by Mr. Farley.................

Re-Cross Examination by Mr. Spohn..................

Morris FE. Suawkey (Recalled) (Defendant’s Witness) :

Direct Examination by Mr. Farley

eeoeoeeoeseeeseeeeeeeeees

Mike Kuopsic (Defendant’s Witness) :

Direct Examination by Mr. Farley

Ratpn T. Myers (Defendant’s Witness) :

Direct Examination by Mr. Farley

Victor F. Marentette (Defendant’s Witness) :

Direct Examination by Mr. Farley

Cross Examination by Mr. Spohn

A. M. Wisex (Defendant’s Witness) :

Re-Direct Examination by Mr. Farley

eeoereer eee e eee eee esses

cer ee eee eee eee eee sese

ee

Cuar.es Gorpon (Plaintiff’s Witness) :

Cross Examination by Mr. Farley

Treopore R. Dant (Defendant’s Witness) :

Direct Examination by Mr. Farley

coeoeeo eee eee eee eee ese

Georce W. Smirn, Jr. (Defendant’s Witness) :

Direct Examination by Mr. Farley

CHCPCTCHCTCHECCHECC ECHOES

ALBERT ApTEKAR (Defendant’s Witness) :

Direct Examination by Mr. Farley....................

Cross Examination by Mr. Michael

eee eee eee eee eens

VI

, = -_ a

SEALER AI CRETE PRED AO FE ARPA OO OES Ol Rit

_

WruiaMm D. Hunt (Defendant’s Witness) :

Direct Examination by Mr. Farley......+--++++++++++: 559

Cross Examination by Mr. Spohn......-.-+++++e+eeees 564

Re-Direct Examination by Mr. Farley.......---+++++++ 567

Re-Cross Examination by Mr. Spohn.........++++++++5 567

Re-Direct Examination by Mr. Farley.........+++++++ 567

Henry G. Pruuancer (Defendant’s Witness) :

Direct Examination by Mr. Farley.........-.-++0e00+% 568

Cross Examination by Mr. Spohn..........--+++eee00% 579

Re-Direct Examination by Mr. Farley............++++: 585

Re-Cross Examination by Mr. Spohn..............+++: 586

Joun L. Scumipt (Defendant’s Witness) :

Direct Examination by Mr. Farley..........--.0..-0+5 588

Cross Examination by Mr. Spohn............--++-e00 605

Rupy Enraarp Herxworz (Defendant’s Witness) :

Direct Examination by Mr. Farley............++-00005 606

WituiaM F. Piocu (Defendant’s Witness) :

Direct Examination by Mr. Farley............-.-+-++- 632

Cross Examination by Mr. Michael..............++++: 663

Re-Direct Examination by Mr. Farley...............- 697

Re-Cross Examination by Mr. Michael................ 722

Re-Direct Examination by Mr. Farley................- 127

Nizts Borsen (Defendant’s Witness) :

Direct Examination by Mr. Farley...............2.+++ 728

Auanson P. Brusu (Defendant’s Witness) :

Direct Examination by Mr. Farley.................--- 752

Cross Examination by Mr. Michael................... 801

Re-Direct Examination by Mr. Farley................ 813

Re-Cross Examination by Mr. Michael................ 820

VII

a... CERO EG SOF POEL INI TTS OE IIRL SLE LE SLAG EES SIRI IESG ES GAG te?

Ervin Frankuin (Defendant’s Witness) :

Direct Examination by Mr. Farley.................... 825

Cross Examination by Mr. Spohn..................... 843

Re-Direct Examination by Mr. Farley................. 846

Re-Cross Examination by Mr. Spohn.................. 846

Re-Direct Examination by Mr. Farley................. 846

Re-Cross Examination by Mr. Spohn.................. 847

JosepH Henry Acuten (Defendant’s Witness) :

Direct Examination by Mr. Fariey.................... 847

Cross Examination by Mr. Michael................... 856

Re-Direct Examination by Mr. Farley................. 859

Frep Hovis (Recalled) (Defendant’s Witness) :

Re-Direct Examination by Mr. Farley................. 863

Re-Cross Examination by Mr. Spohn.................. 869

Re-Direct Examination by Mr. Sn Si4

Re-Cross Examination by Mr. Spohn.................. 877

Re-Direct Examination by Mr. Farley................. 881

Re-Cross Examination by Mr. Spohn.................. 882

VIII

-

oa AAAI AAI SIGE EGE: EVES BEEN

PPV SENDS f PE MEIN SNP EMO IM LIT TS LING ENDL NS AE IR, IIE ?

VOLUME III.

Defendant’s Record (Continued),

Appendix to Record and Appeal Papers.

Harotp W. Hocetan (Defendant’s Witness) :

Direct Examination by Mr. Farley.........--+++++++++ 883

Re-Direct Examination by Mr. Farley.........-.+++++: 889

Pierce ALBERT WEYL (Defendant’s Witness) :

Direct Examination by Mr. Farley...........+0.005055 891

Cross Examination by Mr. Michael...............+++- 911

Re-Direct Examination by Mr. Farley............++++- 913

Re-Cross Examination by Mr. Michael...............- 918

Re-Direct Examination by Mr. Farley.............+++- 920

Re-Cross Examination by Mr. Michael...............- 924

James McEvoy (Defendant’s Witness) :

Direct Examination by Mr. Farley...............0000% 925

Cross Examination by Mr. Michael.............+0.05- 932

Re-Direct Examination by Mr. Farley..............+++ 935

Axpert ApTekar (Recalled) (Defendant’s Witness) :

Re-Direct Examination by Mr. Farley..............+-. 936

Re-Cross Examination by Mr. Spohn..............+++- 939

Re-Cross Examination by Mr. Michael............--+- 940

Re-Direct Examination by Mr. Farley..............++. 942

Re-Cross Examination by Mr. Michael.............+..- 943

Re-Direct Examination by Mr. Farley.............+++. 945

I. Josepu Fariey (Defendant’s Witness) :

DOT TOOT nak ecco ncdxetecinssccesersncveeeses 951

Cross Examination by Mr. Michael................6+: 956

Joun W. Micuaet (Plaintiff’s Witness) :

eS CETTE Ter TTT Teri err Tree 962

Cross Examination by Mr. Farley.................... 965

Norman R. Scovitn (Defendant’s Witness) :

Re-Direct Examination by Mr. Farley................. 971

Ix

HOPS SYS BIE PEGDA BIS PEEING TE URN RRP SE | FN SO ae I Tk cay Eran a Hy

ove : ENS ENE I I Ea OL A IE,

Harotp M. Woeurce (Defendant’s Witness) :

Re-Direct Examination by Mr. Farley................. 980)

Wituiam F. Procu (Defendant’s Witness) :

Re-Direct Examination by Mr. Farley................. 1051

Re-Cross Examination by Mr. Michael................ 1055

Re-Direct Examination by Mr. Farley................. 1059

Re-Direct Examination by Mr. Farley................. 1060

Re-Cross Examination by Mr. Michael....... eeeaeaune 1061

Re-Direct Examination by Mr. Farley................. 1063

Re-Cross Examination by Mr. Michael................ 1063

Re-Direct Examination by Mr. Farley................. 1063

Re-Cross Examination by Mr. Michael................ 1064

Re-Direct Examination by Mr. Farley................. 1064

Re-Cross Examination by Mr. Michael................ 1065

Harotp M. Wornrte (Defendant’s Witness) :

Re-Direct Examination by Mr. Farley................. 1065

Re-Cross Examination by Mr. Spohn.................. 1071

Re-Direct Examination by Mr. Farley................. 1080

Dowatp M. Russet (Defendant’s Witness) :

Direct Examination by Mr. Farley.................... 1082

Haroip M. Woenrte (Defendant’s Witness) :

Examination by the Master................00.00005-. 1094

Re-Direct Examination by Mr. Farley................. 1095

Re-Cross Examination by Mr. Spohn.................. 1096

ALEXANDER OBERHOFFKEN (Defendant’s Witness) :

Direct Examination by Mr. Farley.................... 1097

Cross Examination by Mr. Michael................... 1114

Re-Direct Examination by Mr. Farley................. 1122

Re-Cross Examination by Mr. Michael................ 1124

Re-Direct Examination by Mr. ae 1126

Re-Cross Examination by Mr. Michael................ 1127

Re-Direct Examination by Mr. WUE a add cecwsect 1129

x

Hexsino Onrn (Defendant’s Witness) :

Direct Examination by Mr. Farley............600000+:

Cross Examination by Mr. Michael............+.00055

Re-Direct Examination by Mr. Farley...............+-

Cartes Hasovicn (Defendant’s Witness) :

Direct Examination by Mr. Farley........-....-e0eees

Cross Examination by Mr. Michael...............0-45

Axpert Kipta (Defendant’s Witness) :

Direct Examination by Mr. Farley.........-..02+0006:

Cross Examination by Mr. Michael..............00005

WituiaM D. Hunt (Recalled) (Defendant’s Witness) :

Re-Direct Examination by Mr. Farley..............+++

Re-Cross Examination by Mr. Michael................

Re-Direct Examination by Mr. Farley.............+06+

Cartes Gorvon (Recalled) (Plaintiff’s Witness) :

Re-Direct Examination by Mr. Michael................

Re-Cross Examination by Mr. Farley.............006.

Topp L. Moise (Recalled) (Plaintiff’s Witness) :

Re-Direct Examination by Mr. Spohn

Re-Cross Examination by Mr. Farley

Re-Direct Examination by Mr. Spohn

oe eee eee ew een ene

|

xI

APPENDIX

TO TRANSCRIPT OF RECORD

Designated Portion of the Testimony of the Witnesses

Otto H. Schultz, Frank Steinke, Bert Weisel, William

Cunningham, and Charles Gordon from Plaintiff’s Exhibit

14—Patent Office Record, Interference No. 47,200—Her-

man W. Melling vs. Charles Gordon and Alfred Redlin.

Orto H. Scuvtrz:

Q. 1, page 132, to and including Q. 22 and Answer, page

136:

Direct Examination by Mr. Earl................. 1261

Q. 45, page 140, to and including Q. 72 and Answer 145:

Direct Examination by Mr. Earl.................. 1264

Bert WEIsEL:

Q. 1, page 190, to and including Q. 55 and Answer, page

198;

Direct Examination by Mr. Earl

XQ. 84 and Answer, page 203:

Cross Examination by Mr. Dennett............... 1274

XQ. 100, page 205, to and including XQ. 102 and Answer,

page 206:

eeacdeseveavvarses 1268

Cross Examination by Mr. Dennett............... 1274

XQs. 115 and 116 and Answers, page 210:

Cross Examination by Mr. Dennett............... 1275

XQ. 121, page 211, to and including RDQ. 150 and An-

swer, page 219:

Cross Examination by Mr. Dennett............... 1276

Re-Direct Examination oO ARs ete 1281

RDQs. 153 and 154 and Answers, page 220:

Re-Direct Examination a ee ae. 1282

RDQ. 166, page 222, to and including RDQ. 177 and An-

swer, page 224:

Re-Direct Examination | Ree 1282

XII

ty

iS

v

v

a

_—_

RDQ. 183, page 224 to and including RXQ. 193 and An-

swer, page 226:

Re-Direct Examination by Mr. Earl............-. 1284

Re-Cross Examination by Mr. Dennett............ 1284

RRDQ. 207 and Answer, page 229:

Re-Re-Direct Examination by Mr. Earl........... 1285

Frank STEINKE:

Q. 1, page 230, to and including RDQ. 66 and Answer,

page 238:

Direct Examination by Mr. Earl...............-- 1286

Cross Examination by Mr. Dennett.............-- 1289

Re-Direct Examination by Mr. Farl.............. 1291

Witituam CUNNINGHAM:

Q. 1, page 288, to and including Q. 16 and Answer, page

298 :

Direct Examination by Mr. Earl................-- 1292

XQ. 19, page 293, to and including XQ. 43 and Answer,

page 298:

Cross Examination by Mr. Dennett............... 1295

RDQ. 44 and Answer, page 299:

Re-Direct Examination by Mr. Earl............... 1299

CHARLES Gorpon :

Q. 56, page 402, to and including Q. 57 and Answer, page

403:

Direct Examination by Mr. Dennett............... 1300

Q. 66, page 405, to and including Q. 74 and Answer, page

409:

Direct Examination by Mr. Dennett.............. 1300

XQ. 188, page 441, to and including XQ. 190 and Answer,

page 442:

Cross Examination by Mr. Earl.................. 1303

XIII

Master’s Report in National Tube Company v. Mark et al.,

MD WO Seda cea vaneceececredsdereeieeccass. 1305

Pe ON I 5c os ovens banvecveenencaeesac 1305

Proceedings Before the Master....................... 1306

SONG RUNN Saraiusxiuscvecdvcesedeeseeeiice eee. 1307

Pe Seas chins cesoee saree 1308

Answers to Questions Referred...................... 1309

SU EG or iterdsrace cee cee 1310

WUE. Sanaweriicetecseesoouere ore ee oe 1312

Advantages Derived by Defendant From and Through

er ee nee ee 1315

MONEE as ica ees cisuece ition eee 1319

So ee Bc EO ET RAL LOE ge 5) 1321

SE sGuriaceauceGaus a Geies oe ee 1322

ctainbrniatione: bases J «sas, .g, OCT EE PT na 1325

Judge Sater’s Opinion on Exceptions to Master’s Report in

National Tube Company v. Mark et al., Equity No. 4360 1326

Special Master’s Report, on Accounting of Profits, Opinion

and Order, and Opinion and Order on Standard of Com-

parison in O’Neal v. San Jose Canning Co., Equity No.

ag BU ES EE OE erry OP Neen SI ps RE Se 1333

Special Master’s Report on Accounting of Profits...... 1333

Master’s Opinion and Order......................... 1336

Special Master’s Opinion and Order on Standard of

III ox acces vise xecalal eo eee 1540

Opinion of the Circuit Court of Appeals for the Sixth Cireuit

in Gordon Form Lathe Co. v. Walcott Machine Co., No.

9911, Decided April 12, 1929, 32 Fed. SM vewcwaiss 1344 |

Opinion of the Circuit Court of Appeals for the Sixth Circuit

in Gordon Form Lathe Co. v. Ford Motor Co., Nos. 7363,

7364, Decided January 12, 1937, 87 Fed. (2d) 390....... 1358

XIV

_

Final Judgment ........seseeee cree eee e cence eee eeeeees

Notice of Appeal of | . , ccvecedasecsceaessanseres

Bond on Appeal of Plaintiff.........-.-. esses eee e eee ees

Plaintiff’s Statement of Points To Be Urged on Appeal....

Notice of Appeal of Defendant............-0++eeeeeeeeeee

Bond on Appeal of Defendant............-+eee seer eee eeee

Defendant’s Statement of Points To Be Relied On Upon

Appeal under Rule 75(d) of Rules of Civil Procedure...

Stipulation Re Waiver of Supersedeas Bond........-..---.

Stipulation Concerning Number of Copies of Record to be

Filed on Appeal..........-eeceeccc cc eeeeeeeeeeeeees

Stipulation Re Exhibits and Transcript of Record on Appeal

in Gordon v. Ford, Nos. 7363-4. ........00ceeeeeeeeees

Order Re Exhibits and Transcript of Record on Appeal in

Gordon v. Ford, Nos. T3G3-4........cccsccccccecevsces

Stipulated Designation of Contents of Plaintiff-Defendant

Composite Record on Appeal..........+0e ee eee eee eees

Stipulation Extending Time to July 29, 1941...............

Order Extending Time to July 29, 1941............-..-006)

Stipulation (filed July 21, 1941) Extending Time to Septem-

ber 27, 1941, and Approval of U. S. Circuit Court of Ap-

WOE cccnecdudecentestcduneratcnvessedsetesuctsetss

Stipulation (filed September 24, 1941) Extending Time to

Cebetior Si, TL. cevewcceececdvccsccnsccsverssvesuss

Stipulation Extending Time to November 26, 1941, and

Approval of U. S. Cireuit Court of Appeals............

Costiientic oF Chath. occ cccccvveccesevcsectssperruseveess

xv

1402

ExHIBIT

D.

VOLUME IV.

Plaintiff’s Exhibits, Defendant’s Exhibits

and Main Record Exhibits.

PLAINTIFF’S EXHIBITS.

PaGE

Cost Summary Card for A-6250 Camshaft covering

January and March 1930 and September and Oc-

Ce Bn ct cadenteevbete ct veesienerunsuees 1404-5

Cost Summary Card for A-6250 Camshaft covering

May, August and October 1930 and March 1931... .1406-7

Cost Summary Card for A-6250 Camshaft covering

March, May and July 1929. (Same as Exhibit 6 in

Bxhiblt A) .. nc ccccvecccccccescevcccccccevesess 1408-9

Cost Summary Card for T-410 Camshaft covering

January to June 1923. ....... ee eee eee eee eee eens 1410

Cost Summary Card for T-410 Camshaft covering

July to November 1923...........-eee secre cece 1411

Cost Summary Card for T-410 Camshaft covering

January to June 1924......... cece ee eee eee e eens 1412

Cost Summary Card for T-410 Camshaft covering

July to November 1924............0eeee cere eeeee 1413

Cost Summary Card for T-410 Camshaft covering

April to September 1925.........6--2eeeeeeeeeees 1414

Cost Summary Card for T-410 Camshaft covering

October to November 1925............eeeeeeeeees 1415

Cost Summary Card for T-410 Camshaft covering

January 1926 to October 1929..........-.--+ee 1416-17

Cost Summary Card for T-410 Camshaft covering

GUE IUD ode vecvesartedeedeceseesessereces 1418

Cost Summary Card for T-410 Camshaft covering

codec eee eSe eee eraWeveerereneves 1419

Cost Summary Card for A-6250 Camshaft covering

August 1928 to January 1929..............-++-: 1420-21

XVII

a

EXxuIsir Pace

F-10. Cost Summary Card for A-6250 Camshaft covering

December 1927 to June 1928.................... 1422.93

F-11. Cost Summary Card for F-446 Camshaft covering

April to September 1925..................00..... 1424

F-12. Cost Summary Card for F-446 Camshaft covering

October to November 1925.....................,. 1425

F-13. Cost Summary Card for F-446 Camshaft covering

January 1926 to March 1928.................... 1426-27

H-1. Production Cost Record for T-410 Camshaft cover-

Ss Mewenibor TOT. coos ccs ccanccecccs.: iteseves 1428

L-1 to L-3. Pages from note book kept by witness Spencer

Ws I tava kuveeus fredateee call oe Ce 1429-31

M. Operation Sheet compiled from notations appearing

in Exhibit L. (Same as Exhibit 13 attached to Kx-

atin’) eT ere PD eee: tap een 1452.3:

N. Operation Sheet for T-410 Camshaft dated 10-8-24,

(Same as Exhibit 14 attached to Exhibit i) ee 1434-35

O. Correspondence between Ford Motor Company and

Jackson Shaper Company...................... 1436-63

P-1 to P-14. Ford Work Orders for Repairs to Melling

ME Saves cobnedasuewareeaiaciecsnsci ce 1464-70

Q. Inventory card covering Ford Camshaft Shaper

GRE Sb cniteaicunidcnsensvadesieicl idk. 1471

R. Inventory card covering Ford Camshaft Shaper

PME Beavis) cdi scnwadeeneneevedics. Ci. 1472

Ss. Inventory card covering Ford Camshaft Shaper

cdimsnaait LE Te TT ee. TO ie 1473

W-1 to W-14. Study of operation of Melling Lathes. .. .1474-87

X-1. Productive Labor and Overhead for Department 410

WOE t8nsioscenisseersiadddeecdestc cn 1488

X-2. Same—continued to DE dn dbiewawid pacer as. 1489

X-3. Productive Labor and Overhead for F-446 Camshaft

Machining 6-1-25 to 3-31-28 ...................... 1490

XVIII

ww,

ExHIBIT PAGE

Y-1. Inventory Card covering Melling Cam Turning

Lathe Ford £36592 ........-cccccccccccscevess 1491-92

7-3. Plaintiff’s statement of account............++- 1493-1513

7-4. Plaintiff’s schedule showing computation of depre-

ciation on Model T type cam shapers and Melling

ie CE Cc cncnecnesdes decd csondsvanckase es 1514-16

7-5. Plaintiff’s compilation of depreciation cost on Model

T Cam Shapers and Melling Cam Lathes......... 1517-18

7-6. Plaintiff’s computation of Maintenance and Over-

haul Expense .......-cccccccccceccecvccesscees 1519-22

7-7. Plaintiff’s computation of Cost of Tools......... 1523-24

CC. Telegram dated 11-18-30 addressed to Ford Motor

COMMPATY cc cccccccscccvercerccevvesseoveeeeres 1525

DD. Telegram dated 11-18-30 ......... cece eee ee eee eee 1526

GG. Release to White Motor Company from infringe-

ment of Gordon patent. (Included in Exhibit RR). 1540

HH. Letter of White Motor Company to Mr. John W.

Michael dated 12-24-29. (Included in Exhibit RR). 1532

RR. Gordon Form Lathe Company agreement file..... 1527-57

DEFENDANT'S EXHIBITS.

209. Copy of U. S. Patent No. 1,655,655 of January 10,

1938 te Hormeam W. MGHIME. «cc ccccvecccccecees 1558-66

217 to 222. Ford Purchase Orders for Melling Cam Turn-

Be EMTS cs cccedveshsccevesrscsessedszeeasves 1567-73

232. White Motor Company Departmental Correspond-

Se Be Se) err rer rs rs) re 1574

SOR. Damn — eee nn cc cccccscccccesccvesasvees 1575

254. Ford Motor Company print dated 11-17-13 showing

front view of construction of original Ford Cam

Shaper with attachment superimposed in yellow.... 1576

er, ia Te ee pad neadeenee seeuwues 1577

Ee ae ee

te Tee See

MEY 2

EXHIBIT

Pace

257. Ford assembly print showing attachment for use in

shaping Model A Camshafts...................... 1578

258. Same—sub-assembly ...................0c0c0ee, 1579

209. Same—showing removal of tools numbers 1 and 5.. 1580

263. Sketch drawn by witness Pioch.................. 1581

264. Letter of Mr. Pioch to Mr. Farley dated 11-2-38.... 15g9

266. Computation by witness Pioch.................... 1583

268. Print Camshaft Shaping Machine Oberhoffken de-

sign—layout showing “‘tools to cut in both direc-

tions—speeds being equal’’...................... 1584

269. Same—Layout to show individual relief of tools on

NE Ta aaa ls bin 600-50e0soenoeeecnccs 1585

272. Sketch by witness Brush showing cutting action of

BO nd bday oo ag wee uo0'se + 0¢.bcn ccc. 1586

273. Same—showing cutting action of Melling Tool..... 1587

276. Brush sketch of two way cuts.................... 1588

281. Operation Sheet for T-410 Camshaft dated 12-21-27.

(Same as Exhibit 15 in Exhibit Sa are 1589-90

289 (1 to 10). Engineering Record of T-410 Camshaft,

neon seas Givens ces ces.., 1591-95

290 (1 to 13). Same—Finished Size ............... 1596-1602

291 (1 to 3). Engineering Record for A-6250 Camshaft,

I 8 25 0.55 nas 0 v's's 5 dhe oe ess. 1602-03

292 (1 to 4). Same—Finished Size ................. 1604-05

293. Ford print 9-Z-32, Shaper Tool................... 1606

294. Ford print 9-Z-215, Melling Tool................. 1607

295. Letter of witness Pioch dated 2-1-39 re: Surface

Speeds of Shaper Tools ....................... 1608-09

296. Sample Ford Purchase Order ................... 1610

297. Print of Ford Camshaft A-6250-Al............... 1611

xx

EXHIBIT

PacE

298 (1 to 6). Engineering Record Fordson Tractor Cam-

299.

301.

302.

304.

305.

306.

307.

308.

309.

312.

313.

314.

315.

shaft, Forging and Finished Size............-.. 1612-14

Summary of Ford Tractor Production...........- 1615

Defendant’s substitute pages for plaintiff’s state-

ment of account Exhibit Z-3 making 3 changes... . 1616-22

Game—G changes ........ccccccccccccccsscsens 1623-29

Pages from Ford Parts Price List, effective 2-1-31

POE eer Tr TT Ter TT TIT eT ere tte 1630-33

Defendant’s computation of Comparative Direct ,

Labor Costs on F-446 Tractor Camshafts........ 163435

International Harvester Company Requisition for

Gordon Lathe dated 11-20-19...............0-44-. 1636

International Harvester Company order for Gordon

Lathe dated 31-26-19 «0... ccccccscccscvcccesteses 1637

International Harvester Company installation of

machinery card covering ‘‘Gordon Std. Cam Turn-

ing Machine”’ .........ccccccccccececececceccers 1638

International Harvester Company disposition of

machinery card covering same ...........++e+e00: 1639

Copy U. S. Patent No. 1,512,995 of 10-28-24 to Her-

mueme W. MOTI .nccccccsscccscvesvescesssauus 1640-47

Copy U.S. Patent No. 1,634,550 of 7-5-27 to Herman

We, FD onc c eo0he recurve Nbeerevennctussens 1648-52

Print +C-2129 of Walcott Machine Company—

‘‘ Assembly of New Style Parallel Type Tool Head’’ 1653

Print #KT-530-A of Walcott Machine Company—

‘‘Assembly of Tool Head’”’ .............-2 ee eeeee 1654

XXI

Ee eats

OR tee ee eee

Exuipitr

64.

71.

1d4-a,

MAIN RECORD EXHIBITS.

Pace

Copy of U. S. Patent No. 1,542,803 of 6-16-25 to

Chas. Gordon et al. .......... peuedaude da aoe nen: 1655-69

Amended Final Deeree in Waleott ease........ 1670-72

Notice of Infringement dated 7-1-25.............. 1673

Cuts only of Walcott Machine Company advertising

I obs ch esuvavesesersreseneuetteeslece. 1074-75

MU EE cw uvccdvececus voreieccesles ore 1676-85

1929 Notice of Infringement.................... 1684-86

Photograph of Ford Shaper 8; front view......... 1687

Same—front view

Illustrated chart of Ford Shaper tool movements

OP DE binaastcnsedenecvincuee evens... 1689

Reeord re: delivery of Gordon machine to Ford. ... 1690

Copy of Ford order for Gordon machine......... 1691-92

Affidavit of I. W. Kindall re: Ford Camshatt Shaper 1693

Ford Motor Company Print dated 5-18-15 showing

Ford Camshaft Shaper, front view............... 1694

Same—end view ............... AphdeeCERGRETaeOs 1695

Waleott letter to Ford 7-30-29. ................... 1696

Copy of General Motors-Gordon Company Agree-

ment. (Included in Exhibit RR)................ 1552-57

b, e, d. Reeords produced by Ford in response to

Court Order 2c cccccccess esedbleéredceceeseces 1697-1700

XXII

Morris E. Shawkey, Direct Examination 427

(269) Morris KB. Suawkey was thereupon called as a

witness on behalf of the Defendant, and having been first

duly sworn, testified as follows:

Direct Examination by Mr. Farley.

Q. Your name, please? A. Morris KE. Shawkey.

Q. And you live in Detroit? A. Off and on since

1910.

. You are employed by the Ford Motor Company,

Mr. Shawkey? A. I am.

Q. How long have you been employed by the Ford

Company? <A. I first went with the Ford Motor Company

in the spring of 1912.

Q. What are your present duties at the Ford Motor

Company! <A. General Foreman of the Production De-

partment.

Q. What department are you in now? A. That is the

luteh and carburetor, fuel pump.

Q. In your work at the Ford Company have you ever

been assigned to any duties in Department 410, the Cam

Shaft Department? A. Yes, Ihave. — ,

Q. And when was that, please? (270) A. That was in

December, 1928.

Q. What was the nature of your duty there? A. It

was general trouble man, chiefly in quality.

Q. What particular type of cam shaft was being pro-

duced in that department at that time?) A. The Model A

cam shaft.

Q. Were you tamiliar with the Model T production?

A. No, I was not.

Q. I don't mean cam shafts, I mean generally of the

Ford Motor Company? A. Oh, in a general way, to some

extent.

Q. Can you state whether or not the standards for

Model A shaft were more accurate or precise than the

Model T? A. Not any more than in a general way that

I could say that the general quality in Model A was much

higher than it was in Model T.

Q. Now, in connection with your duties in the T-410

Department, while they were producing the Model A

shafts, was it any part of your duties to observe the

operation of the Melling or Walcott cam lathes? <A. Yes,

Rear pI Heth RTS PR Bete cease walt alr eek del ose SIRE LS Bi Pe POT, PRET EE 5

428 Morris E. Shawkey, Direct Examination

to some extent. I naturally when I went into the depart-

ment,—I might start at the beginning.

When I went into the department they were having

considerable trouble producing a quality shaft on a pro-

duction basis, and it was my job to get in and find out

what the troubles were in order to get a shaft of quality,

as well as quantity.

Q. Do you know why you were assigned to that

particular department? A. They had considerable trouble

in producing enough shafts of the (271) quality to keep

the assembly line running.

Q. As I understand it, the cam shaft department at

that time was one of the departments whose production

tended to slow down the general assembly proposition, is

that right? A. That was the understanding they gave me

when I went in there.

Q. Now, what did you find when you went into that

department so far as the production of cams was concerned

on the cam shafts? A. Our first trouble on the cams, we

were getting into difficulty on finish. We required a very

smooth finish and they were having considerable trouble

in grinding to get that finish.

Q. Was the production of the cam part of the cam

shaft held up any because of that, or did that in any way

tend to hold up the production of cam shafts, I mean both

the machining and grinding, and if so, just what was the

nature of those difficulties, if you can recall? A. Well, we

had a number of difficulties in finish. As I say, the finish

on the cams were part of our troubles. We had trouble

with the finish on the bearings as well, so that it was all

along about the same.

Q. I am speaking, of course, in terms more of output,

rather than in accuracy or quality of work. I mean was

there difficulty experienced at the time in getting the

required output from the grinding machines, the finish

grinding machines? A. Well, we were held up naturally

some by grinding. I think we had too many machines to

take care of excess grinding.

We had a trouble of getting finish, and in what we

call the semi-finish or rough grinding of the cams.

Q. Just what operations were performed in that de-

partment at that (272) time for bringing the cams of the

De a a ae aa a

Morris E. Shawkey, Direct Examination 429

shaft from the rough size down to the finish size? A.

A great many shafts would come through with excess stock

for rough grinding.

We had to hold our semi-finish size fairly close in

order to get a good finish and proper finish on the finished

product.

A great many shafts would come through with excess

stock. In fact, I have seen as much as % of an inch on

cams to be ground off in finishing, rough and finish grind-

ing.

‘ Q. That was after the cams left the Walcott machine?

A. After they came through from the Walcott, through

the hardening, into the rough-grinding.

Q. Was it necessary at that time to perform a straight-

ening operation on the cams immediately before they were

put into the Walcott machines, do you know? A. Yes,

it was.

Q. Were you at all familiar with the operation of the

Model T cam shaft shapers? A. No, I was not.

Q. What was the standard at that time, if you can

recall, in so far as the amount of stock left on the cams

by the Walcott machine for the next operation? Let’s

see, before we go to that, you spoke of assembly finish

grinding. Now I would like you to go over the operations.

You have spoken of a straightening operation, and the next

operation in the department, as far as the cams was con-

cerned, was turning the cams on the Walcott machine, is

that correct? A. Yes.

(273) Q. Now, then, the next operation was a semi-

finish grind, is that right? A. That is referring to cams?

Q. That is referring to cams. That is all we are con-

cerned about here. A. Then the next operation was hard-

ening and then rough-grinding the cams.

Q. That is, a semi-finish grinding after they came from

hardening? A. After they came from hardening.

- b And after they had come off the Walcott machine?

. Yes.

Q. And then finally a finish grind, is that the idea?

A. Yes.

Q. Now, how much stock, if you know, was left on the

cams by the Walcott machine to be removed in the other

grinding operation which came later? A. Our prints

ealled for, as I recall, 40 thousandths. Our gauges were

set for 40 thousandths, but the cams came through with

430 Morris E. Shawkey, Direct Examination

60 thousandths and from there up, but they tried to hold

them about 60, because they wouldn’t clean up in our

rough grinding when we held them to 40 thousandths.

I remember that quite well because we had considerable

trouble. They would drive for production of the machines,

and in trying to get high production from the cam lathe

they were neglectful of the tools.

The tool point would wear or burn off or break off and

in that way we would get cams coming through, when they

were rushing hard, as much as two-thirds of them would

have cams, not all the cams, but cams on the shafts, would

have as much as (274) 1% of an inch of stock.

Then I would go up into that section and raise merry

Ned because we had too much stock to grind.

It would cause burning of the cams, it would wear

our wheels, preventing us getting production on the rough

grinding cam grinders.

Well, they would cut down again and try to get down

to gauge size, which I would insist on, and immediately

we would have trouble with cams not cleaning up, so it

was a fight between trying to hold the small amount of

stock to grind and their production.

Q. About what was your average daily production

in that department, do you recall? A. I could hardly give

you an average daily. As I recall it, it was about 2,000

a day when I went in there in December, 1928, and we

reached a high of 9,000-some odd shafts in the middle of

the spring.

Q. The middle of the spring of 1929? A. Of 1929,

yes.

Q. Did you make any particular recommendations at

that time to anyone in authority concerning the difficulties

you were having? A. Yes. I felt at that time that I

could add a second turning operation which would take,

would tool up the shafts to grinding tolerances, within the

grinding tolerances we had allowed on our print and in-

crease the efficiency in our grinding.

I apparently sold them on that idea, for they ordered

(275) some Melling cam lathes for that purpose.

Q. And who was foreman of the department at that

particular time? A. A man by the name of Harry Klan.

Q. Do you know a man by the name of Myers, Ralph

Myers? A. He came in in the late spring of 1929.

RIALTO LE LI RR AMEE REMMI ETI 3 ER OIA CENA OLE RYE THES IE BE REESE SANIT SHEN BT RME SS 2

Morris E. Shawkey, Direct Examination 431

Q. So Myers was in the department during the time

you were in there, too? A. Yes.

Q. And what was Myers’ position in the department?

A. He was general foreman.

Q. He succeeded Klan, is that the idea? A. He did.

Q. Just with whom did you take up this matter of

ordering additional Melling machines; was it Myers? A.

No, as I recall—

Q. (Interposing): Or Herklotz? A. As I recall, it

was before—

Q. (Interposing): Myers came into the department?

A. Yes. Naturally on anything like that, where there is an

added expenditure and added operation, I would talk it

over with a number. I talked to Harry Klan on it, and as

I say, Harry Klan, I mean to say the general foreman, I

think it was in Mr. Klan’s time that he was in there, and if

I recall right, I talked to Mr. Smith, the building superin-

tendent.

Q. Do you know where Klan is now located? A. No,

I don’t.

Q. He no longer works for the company, is that the

idea? A. He left the company just before Myers came

into the department.

Q. Well now, did the company act upon your recom-

mendation and buy any additional Walcott machines?

(276) A. They did.

Q. And do you know when those machines were

bought? A. No, I couldn’t say as to time. They came in

in the spring of 1929.

Q. Do you know whether they were ever used for this

third operation? A. No, we never used them.

Q. Do you know what use they were put to, if any?

A. Yes, they were used, whether they were all used, I know

there was one or two of them used for turning the eccentric

on the Model B cam shaft.

Q. Do you know when the Model B type of job was put

into production at the Ford Company? <A. In 1932.

Q. And the Model B shaft was in all respects similar

to the Model A, was it not, except for the eccentric? A.

Yes. Then a slight difference in the form of the shaft.

Q. Now, did you know anything about the output of

the Walcott machines per hour, or is that any part of your

BRA MEN rat A TET NRG PERE ONE EIAROE AERIS LACIE YI HEE OPN

432 Morris E. Shawkey, Direct Examination

job? A. No, it was not really a part of my job. I natu.

rally had to watch costs, had to figure costs along with

changing operations, or in making a quality shaft I had

to stay within reason, but I checked up a little more on the

Walcott lathe, due to requesting more machines, for the

expense, operation, and as I recall, we had a production,

or figured the production, that is, we could get 400 a day

from a Walcott machine during the operation as it was at

that time.

Q. 400aday? A. I mean for each operator. An oper-

ator ran two machines.

(277) Q. That was the production you figured upon

getting, is that the idea? A. Yes.

Q. Do you know whether you obtained that produc-

tion from those machines? <A. I think they did, but I

couldn’t say. That was what we figured we would get

day in and day out from a machine when it was in operation.

Q. And how many would that be then per machine, or

how many hours did you work the machines? A. 8 hours

a shift.

Q. Do you know whether you worked those machines

the full eight hours of the shift, or whether they were down

for lunch time, or what happened in that respect? A. Well,

they were under both conditions. It depends a great deal

on the amount of production they required, what was com-

ing off the machines, how many machines were running. If

they had particular trouble that was customary, if we had

particular trouble on the machines, we were short of pro-

duction in that particular operation, we would run them

through lunch hour.

Q. Then as I understand it at the time when you went

there the production was 2,000 a day and you probably did

not run the machines during the lunch hour? A. I don’t

believe so.

Q. But when you got up to the higher production of

9,000 a day you probably then found it necessary to run the

machines during lunch hour? A. That is what I mean by

times we would do that.

(278) Q. Do you know whether you had any particu-

lar difficulty in maintenance of those machines, in keeping

them operating? A. Not any more than what I could see

when I would complain of sizes of cams, and it would always

Morris E. Shawkey, Direct Examination 433

be one of their alibis that it was caused by trouble with

their machines, and keeping it in order.

We had a number of maintenance men working there

and mainly working on those machines all the time.

Q. Now, were you at any time given any particular

assignment by anyone at the Ford Motor Company to see

what records, if any, might be available at the Ford plant

in connection with this camshaft operation? A. I don’t be-

lieve I just got that question.

Mr. Farley: Read it, please.

(Question read by the reporter.)

Q. Do you understand that? A. No.

Q. Well, let me put it this way! When did you first

become acquainted with me and under what circumstances?

A. That was last October a year ago, I believe. I was

called into Mr. Smith’s office, the building superintendent

of the motor building, and told to report to Mr. Crawford’s

office to a Mr. Coulton to be assigned in looking up records

and information regarding the cam operation on the Wal-

cott lathe and whatever was required.

Q. And did you make any searches in and around the

Ford plant to locate records? A. Yes.

Q. And as a part of that work you were requested,

were you not, (279) to interview men who had particular

familiarity with the can\shaft department through the

years? A. Yes. I was told to find what men I could, any

one of whom was connected with that work and knew from

personal experience what we did.

Q. I see. How long did you spend on making those

investigations and surveys, a matter of several months, 2

or3 months? <A. Yes, it amounted to 2 or 3 months.

Q. Now, do you know a man by the name of Spencer

Libby? A. Yes.

Q. Just who was Mr. Libby, please? A. He is a fore-

man of what you call the steering gear department.

Q. Do you know whether Libby was ever connected

with the camshaft department? A. Only as much as he

told me he was.

Q. I hand you a notebook which has been marked Ex-

hibit L in this case and will ask you if you ever saw that

before, and if so, explain what it is. A. Yes, I have.

REPENS * MH 2 RIS HE ATONE ERIE ONIT TN EEE IL PE RE ER ERTS TREE HBS

434 Morris E. Shawkey, Direct Examination

Mr. Spohn: Now, if your Honor please, may |

have a preliminary question before the witness starts to

explain that?

The Master: Yes.

Mr. Spohn: When did you first see this book now

handed to you, designated as Exhibit L?

A. It was in the fall, a year ago.

Mr. Spohn: The first time you saw the book was

in the fall of 1938, you mean?

A. No, that would be the fall of 1937.

Mr. Spohn: Oh, the fall of 1937?

(280) A. Oh, yes.

Mr. Spohn: I object to the question as incom-

petent, irrelevant and immaterial, the witness having

no familiarity with the book prior to the fall of 1937,

That is Exhibit L, your Honor. There was examina-

tion made on it before.

Mr. Farley: I don’t think any comments are re-

quired on my part to that objection, your Honor.

The Master: Where did you find this book?

A. Mr. Libby gave it to me.

Mr. Spohn: Another objection is it is completely

hearsay as to this witness.

The Master: Well, I was just wondering whether

it comes in the books and records exception to the

hearsay rule.

Mr. Farley: I might state, if the Court please,

that I am going to produce Mr. Libby as the next wit-

ness to fully identify the book. My purpose of the

examination of Mr. Shawkey at this time is to show

how the book was discovered, how it came into his

office, and what he did with it afterwards.

Mr. Spohn: That was not the question. It was to

explain what the book was.

The Master: Yes,

Mr. Spohn: That is altogether different. If coun-

sel is limiting this question, all right.

Mr. Farley: He explains that was a book handed

him by Mr. Libby. After he answers, if you want to

move to strike out any part of it, you may.

PALEY NINO IED SIE GIO LO EIR MY EH SELON LIEV SEWN OLR IT RRR AAEET TL IIE fT

Morris E. Shawkey, Direct Examination 435

The Master: Well, I will take the testimony sub-

ject to the objection and subject to identification of

the record by (281) Mr. Libby, and rule upon the

question of its admissibility at that time. Now, what

was the answer?

(Answer read by the reporter.)

Q. The answer so far says you have seen that book

before. Where did you get that book? A. From Mr.

Libby.

Q. What did you do with the book after you got it?

A. I took it to Mr.—our time study man, Mike Klopsiec.

Q. What was your purpose in taking the book to Mr.

Klopsic? A. There was found in the book a copy of the

operation of the time study, and Mr. Klopsic—in my next

call I took the book to him to see if we had any records of

that time study at that time and if he recognized anything

in this time study that was copied here. I didn’t know

whether I had anything of value or not.

Mr. Spohn: I move all the answer of the witness

be stricken. It is based on hearsay in the first place,

and an assumption of a copy of a time study record

in a book with which he is not familiar.

The Master: It certainly looks like hearsay tes-

timony to me.

Mr. Spohn: I move it be stricken.

Mr. Farley: I haven’t heard anything, if your

Honor please, that I would characterize as hearsay.

The witness said that he took the book—will you read

the answer?

(Answer read by the reporter.)

Mr. Farley: There is not any hearsay there.

Mr. Spohn: If your Honor please, he says it is a

copy of a time study record. How does he know about

that? I move (282) the answer be stricken.

The Master: I will withhold ruling on that ob-

jection until I hear the rest of this testimony.

Q. (By Mr. Farley): Mr. Shawkey, are you familiar

with operation sheets that are in use at the Ford Motor

Company? A. I am.

Q. Is there anything about the material written in

that book that would in any way, with your familiarity with

FR Re St pi tain 10 eat anna ge — = —

FOIE IEE ANT Te RE NR a LNT een Re TIS LER AA

436 Spencer W. Libby, Direct Examination

those operation sheets, lead you to believe it resembles

such an operation shect of time studies? A. It is made

out in such a way that it looks like a duplicate or a copy

of a time study.

Q. Now, will you proceed with your answer as to what

you did with the book?

Mr. Spohn: If your Honor please, I resume my

objection. If the witness is present in court who

prepared that exhibit, the best evidence of what that

exhibit contains, or its nature, whether it is a time

study, can be given by that witness, not what its

similarity may be or something else. Everything he

knows is hearsay.

The Master: Why don’t you withdraw this wit-

ness and put Mr. Libby on the stand temporarily?

Mr. Farley: All right, I will withdraw the wit-

ness temporarily.

(Witness excused temporarily.)

Mr. Farley: Mr. Libby, will you take the stand?

(283) Spencer W. Lissy, a witness called on behalf of

the Defendant, and having been first duly sworn, testified

as follows:

Direct Examination by Mr. Farley.

Q. Your name, please? A. Spencer W. Libby.

Q. And you live where, Mr. Libby? A. 918 Stevens

Avenue, Highland Park.

Q. You are employed by the Ford Motor Company?

A. That is right.

Q. How long have you been employed by the Ford

Motor Company? A. Since October 16, 1916.

Q. Until the present date? A. Until the present date,

yes, sir.

Q. And what are your present duties at the Ford

Motor Company? A. General Foreman of the Steering

Gear and Pedal Department.

Q. Now, in your work at the Ford Company, were you

ever assigned to Department T-410, the cam shaft de-

partment? A. That is the department I started in at the

Ford Motor Company.

Spencer W. Libby, Direct Examination 437

Q. And when was that? A. October 16, 1916.

Q. And at that time how was the Ford Company ma-

chining the cams of its cam shafts? A. Well, as I recall it,

they kad a milling operation on the cams, followed by a

grinding operation. That is the operation.

(284) Q. (By Mr. Farley): The milling operation

which you are speaking of, Mr. Libby, I show you Defend-

ant’s Exhibit 145, pages 9-10, from the American Machinist,

of July 3, 1913, and this is entitled, ‘‘Ford Cam Shaft

Milling Methods.’”’? This Exhibit 145 was introduced dur-

ing the trial before J udge Tuttle, and I call your attention

to the showings of Fig. 3 on page 10. You hadn’t seen that

particular publication before, I don’t think, but will you

examine that Fig. 3 and state whether or not that is the

milling operation you were referring to? A. Well, it

looks similar. I couldn’t positively say at that time.

Q. That particular milling operation was one in which

you used but 3 shafts? A. 3 cutters and 3 shafts.

Q. And what was next used by the Ford Company

after that? Let me put the question this way: How long

did you stay in the cam shaft department from 1916, how

long were you there? A. Well, I just don’t recall the ex-

act date, because whatever time they went on War work,

I know I was transferred from the cam shafts up to the

War work, on the Liberty motor cylinders.

(285) Q. Did the Ford Motor Company throughout

your period of experience in the cam shaft department con-

tinue to use the milling operations such as shown? A. No,

sir; they did not.

Q. What did they use after they discontinued the use

of the milling machines? A. Ford shapers.

Q. Ford cam shaft shapers? A. Yes, sir.

Q. At the time they were using the Ford cam shaft

shaper what was your duty in the department, or what was

your job? A. I was assistant to the general foreman. In

other words, he was the direct supervisor over that depart-

ment. I had one shift under him, one of the three shifts

that were under him.

Q. And in your job in having charge of one of the

shifts, was it a part of your duty to know all of the opera-

tions that were performed in the department? A. Yes, sir.

438 Spencer W. Libby, Direct Examination

Q. And was it part of your duties to know the times

required for the various operations? A. That was ab-

solutely necessary.

* * * * *

(286) Q. (By Mr. Farley): Will you please tell, what

operation, if you remember, Mr. Libby, was done upon the

cam shafts prior, immediately prior to the shaping opera.

tion? A. Yes. I can recall it was turned, front and rear

bearings.

Mr. Spohn: Slowly. I want to copy that.

Q. Now, I show you a book, Mr. Libby, which was

marked for identification here as Exhibit L, and ask you if

you know what that is? A. Yes, sir; I do know what that

is.

Q. Will you please tell the Court what it is? A. Well,

sir, this part here—

Q. First, generally what the book is. A. The book

was the property of myself when I was in the department

410, and I kept various records from time to time, always

having the time study at my finger tips. That was neces-

sary for any person running a job.

Q. Did the Ford Motor Company when you were fore-

man of the department have time studies that were made

by time study men who (287) checked the time of the jobs?

A. Oh, yes, sir.

Q. Now, will you state to the Court what memoran-

dums, if any, are in that book? A. There are several

memorandums in that book. The one here—

Mr. Spohn: I wonder if his Honor has a copy of

that? I might give you the photostat, if you care to

see it, your Honor.

Q. Will you refer to the page that is marked Exhibit

L-1 and state to the Court what that is? A. I didn’t quite

get that, Mr. Farley, if you please.

Q. Will you refer to the page that is marked Exhibit

L-1 and tell what the various notations and figures on that

page are? A. That was a duplicate of the time study on

that particular part.

Q. And in whose handwriting is that? A. That is in

my handwriting.

-

ELIS NTR INET UBM BAIT NE NPR TNS MH ENN ATEN OTR UP PYAAR NAR ME OUEST TABOR BINH RY

439

Spencer W. Libby, Direct Examination

Q. And where did you get the data or information that

‘s contained on that page? A. I copied this from the time

study.

Q. And the time study, where did you get the time

study; what was the practice with respect to time studies?

A. Well, there is a book left in each department of the time.

It is in a folder there. It is in there and the foreman has

access to it to find out various items at different times.

Q. And the figures which you put in your book, were

they copied at that time, do you recall whether they were

copied from a time study? A. Oh, yes, they were copied

from a time study, I am positive of (288) that.

Q. Now, will you refer to your book there and to the

operation 12, the number 12. Will you read that notation,

just what you have in the book. A. ‘‘Shape Cams.’’

Q. ‘12,7 Shape Cams. A. 120.

Q. What does the .120 mean? A. Why, that means

the time established by the time study on that particular

operation.

Q. What machine, to the operation of what ma-

chine does that refer? A. That refers to the cam shapers.

Q. That were used at that time at the Ford Motor

Company? A. Yes.

Q. Now, let me ask you as to the operations that are

numbered here. Just what do they represent? Do they

represent all or only part of the operations that were

required in that department to machine a completed cam-

shaft? A. A, B, C, D.

Q. Where were those operations performed? A. I

do not know that.

Q. That is, you do not know what? A. Where those

operations were performed, because this was not in my

department at that time.

Q. From your own personal observation you never saw

those operations? A. No, sir; they were never there, and

also operations 1 and 2.

Q. Now, as to the operations that were performed in

your department, (289) will you please refer to those? A.

They begin at No. 3. ‘‘Center both ends.”’

Q. Now, the next operation. Just glance over those

operations. A. ‘‘Center both ends.’’ Then you put the

shaft in an arbor press and you rough-straightened it.

EAGLE RAE HER AN LTH) AOMORI RH AEN AH DIRT RIE E HATE MAN SL UM PCY PRT eM 9

es J . v mire ys

440 Spencer W. Libby, Direct Examination

Q. Then the next operation? A. Rough turn center

bearing.

Mr. Spohn: Will you read the number, Mr. Lib.

by?

A. Yes, sir; that was operation—center both ends was

3. Rough straighten is 4. Rough turn center bearing

was 5.

Q. Go ahead, please. A. Sir?

Q. Continue, please. A. No. 6 was between the

cams.

Q. Rough turn between cams? A. Yes. No. 7 was

straddle.

Q. No. 8? A. Was turn the gear post.

Q. Now, your notebook just simply says gear post?

A. That was just an abbreviation that I entered.

Q. Your notebook for No. 9 says what? A. Drill

L hole.

Q. Your notebook says ‘‘L hole’? A. Yes. I will

repeat exactly the book.

Q. The next one is what? A. End bearings.

Q. What does that notation mean? A. The front end

bearing.

(290) Q. I mean what was the operation. A. Ona

lathe.

Q. A turning operation? A. Yes, sir.

Q. All right. Now, the next one. A. Rough grind

center bearing.

Q. And the next is what? A. Shape cams.

Mr. Spohn: What is that number?

The Master: No. 12.

A. Shape cams is No. 12, sir.

Q. How do the notations in the notebook jibe with

your recollection of the particular operations that were

performed in that department? A. That is the same. I

have the same recollection as that.

Q. You have a present personal recollection of all

those operations having been performed? A. Yes.

Q. Without referring to the book, awhile ago when

you had not referred to the book you said that the opera-

tion immediately preceding the operation of shaping the

cams was turning the end and center bearings.

AAI SOOM LIN MIL RIN I MIE IO GL Py BE AAMLERIT SAAN LF eine

Spencer W. Libby, Direct Examination 441

Mr. Spohn: The witness didn’t say that.

Mr. Farley: All right, read back and see what he

did say. That is my recollection.

Mr. Spohn: My recollection is different.

Mr. Farley: I don’t think it matters.

(Answer read as follows: ‘Yes, I can recall it

was turning (291) front and rear bearings.’’)

Mr. Farley: Turn front and rear bearings. You

made a notation and I didn’t.

Mr. Spohn: Failing accuracy of memories.

Q. Now, after having consulted the book, what is your

recollection on that, or just what do you mean by you

turned front and rear bearings? Which operation is that

on your book? A. In the book?

Q. Yes. A. All I have in here on No. 10 is end bear-

ings. That is the same thing, of course, end bearings.

Q. Now, I will ask you again what operation now then

was performed immediately prior to the shaping of the

cams in the camshaft shaper? A. Rough grind center

bearing.

Q. Was any operation performed intermediate the

rough grinding of the center bearings, or between the time

that the center bearings were performed and the cams

were shaped in the shaper? A. Were there any operations

between those two?

Q. Yes. A. No, sir.

Q. Will you state how many operations all told are

listed on these pages of the book to which you have been

referring? A. How many operations are listed?

Q. Yes. You referred first to the page which is

marked Exhibit L-1. A. Yes.

Q. And that contains a number of operations, begin-

ning with A, (292) running from A to D, and then begin-

ning with 1 and running down to 19. Now, will you refer

to the next page of the book and that contains operations

— from 20 to 42. A. That is on the next page

only.

Q. Yes. A. Yes, sir.

Q. And will you glance over the operations on that

page without taking time to read them all into the record,

and state what those operations, or just what those nota-

tions are supposed to represent? A. Allright. I will have

to continue from operation 13, is that right?

PNR PT ANTE REY VN YEE ENO MNO DO! Ne HAH OU

My RYO) VKROS ALLS te AAG IOS OT MEN Pid

—_—

442 Spencer W. Libby, Direct Examination

Q. Yes. Let me, in order to shorten this, the opera-

tions that are listed in this list are what? A. 13 was

cyanide.

Q. Yes. A. Then polish cam, re-sink and remove

cyanide from holes.

Q. Now, let me ask you, Mr. Libby, so that we won't

take the time to read them all, are these other operations

which are given certain numbers and running from opera-

tion 13, continuing to 19 on the bottom of the page, and

beginning with 20 on the next page there and running to

42, and then on the third succeeding page running to 43

to 45, were they all, rather, do they refer to operations

that were performed in your department? A. Yes, sir.

This here was entirely what was performed in my depart-

ment.

Q. Is that a complete record of all of the operations

that were required in Department 410 for the fabricating

of the cam shafts? (293) A. That was all on the cam-

shafts.

Q. Yes. And all those operations were performed on

the camshafts in the department under your supervision as

foreman, is that correct? A. With the exception of the

first A, B, C, D, 1 and 2.

Q. All right. And do those notations conform with

your present personal memory of the operations as per-

formed in that department? A. Yes, sir; they refresh my

memory and they bring the job back to me. It is so long

ago I can’t remember everything in detail without looking

at this book, but when I do it comes back to me.

Q. Very well. Now, these particular pages to which

we have been referring, do they have any date on them?

A. These particular pages have no date.

Q. Can you state just when you made that list in your

notebook; have you any way of establishing the date or

approximately the date when you made that compilation?

A. This was made, whatever it was, was previous to any

changes made in operation. That is, when we were doing

that operation. There was nothing else in the camshaft

department at that time to do it.

Mr. Spohn: Just a minute, Mr. Farley. Will you

read the question and answer?

(Question and answer read by the reporter.)

Spencer W. Libby, Direct Examination 443

Q. Are there any other dates in the book, Mr. Libby,

that would help you to establish the date when you made

that list?

Mr. Spohn: If your Honor please, I submit that

the witness has answered the question with respect to

those two (294) pages.

The Master: I will allow counsel to further try

to bring out his memory on that point. I will over-

rule the objection. Read back the question.

(Question read by the reporter.)

A. Well, here when these specials were made.

You are referring to a page of the book which is

marked Exhibit L-2? A. That is right.

Q. All right. Proceed. A. This date here, was made

on the 4th, 1924, 2nd, 3rd—I can’t say whether that is the

4th or 6th.

The Master: 4-4-24.

Q. Now, in whose handwriting are the notations on

the page specials? A. They are mine.

Q. Is that in your handwriting? A. Yes.

Q. Those dates appearing there, 4-1-1924, 4-2-1924,

4-3-1924, 4-4-1924, did you put them in? A. T did.

Q. Were they put in at the particular date indicated,

or some later date? A. What do you mean, were these put

in?

Q. Yes. A. These were put in at the date indicated

on that page.

Q. Can you state whether or not the compilation on

the pages which are identified by the Exhibit No. L-1,

whether those compilations were made before or after, or

when they were made (295) with respect to those other

dates, if you know? A. That I couldn’t say. I couldn’t

say whether they were made before or after, but it must

i been in that period, because I don’t keep a book that

ong.

Q. Well, what would be your testimony as to whether

those notations on pages L-1 were made in any of the years

1919, 1920, 1923, 1924, 1925, or what year? A. They were

made in 1923 or 1924, that is, within the period of 12 months,

I would say.

444 Spencer W. Libby, Cross Examination

Mr. Farley: I offer the book and the pages thereof

as Exhibit L-1 in evidence, and Exhibit L-2. There is q

page here which was marked for identification as ex.

hibit, apparently, L-3. This was Exhibit L and then

Exhibit L-1 and Exhibit L-2. The whole book is L,

I would suggest that the reporter mark the back of

the page L-1 and the succeeding page also as Exhibit

L-1, because they are all of the pages.

Mr. Spohn: If your Honor please, I object to the

receipt of the document in evidence, and ask the right

to cross examine the witness before you make a ruling

on my objection.

The Master: Go ahead.

Cross Examination by Mr. Spohn.

Q. How old are you, Mr. Libby? A. How old am I?

Q. Yes. A. I was 48 the 24th of last November.

(296) Q. So when you came to the Ford plant then in

1916 you were— A. (Interposing): 27 years of age.

Q. You were 27 years of age? A. Just about that.

Q. What were your duties in the cam shaft depart-

ment? A. When I first came in?

Q. When you came to the Ford plant in 1916. A.

I was hired there and went to work on a Lo-swing lathe.

Q. How long did you work on that lathe? A. Not

very long.

Q. Was it a month or a year? A. It was not very

many weeks.

Q. And that was in October of 1916? A. That is

right.

Q. Then what did you do after you got off working

on that lathe? A. I was put machine-setting.

Q. Machine-setting? A. Yes.

Q. And how long did you work there, approximately?

A. I want to give you something definite, if I can, on that.

Maybe five or six months. It was not very long, anyway.

Q. Some time until 1917? A. Yes, it was early in

1917.

Q. Was it before or after the War started? A. Be-

fore the War.

Q. Before the War. And then what did you do after

you got off of that job? A. Well, after I got off that job

I had a section as a foreman.

cer W. Libby, Cross Examination 445

Q. And where was that section? (297) A. The section

as a foreman was on the—well, it was half hard end of the

cam shaft and half of the soft end, what we call the soft

end was before the part was hardened.

Q. And you were a foreman on that work? A. Fore-

man under the shift foreman at that time, yes.

Mr. Farley: Did you say under the soft end or

under the hard end?

A. Half of each. I had the hard bearing grinding and

part of the soft, because it was split in sections. The shift

foreman has probably 4 foremen, 5 foremen under him on a

shift at that time.

Q. How many men did you have under you? A. About

30 at that time.

Q. At that time? A. Yes.

Q. You were the foreman on the job? A. On that

particular part, not on all the camshafts.

Q. And that job had something with respect to the

grinding of the camshaft, you say? A. No.

Q. What did it have todo? A. The bearing, not the

cams, the bearing. I ground the rear bearing and center

bearing.

Q. But the rear bearing and center bearing were on the

camshaft? A. Yes.

Q. How long were you foreman on that job? A. Well,

sir, I was there until the War started, and then I got trans-

ferred on the War job.

Q. The War started in April, 1917, and your testimony

is as soon as (298) the War started you got on that job?

A. Yes. .

P Q. What was that War job? A. Liberty motor cylin-

ers.

‘ - Where was that job done? A.In the W building,

Q. The Liberty building? A. W, the letter ‘‘W.”’

Q. Mr. Libby, we are not quite as familiar with these

buildings as you are. When you say ‘‘W-2,’’ is that what

you said? A. I had reference to W-2, the 2nd floor of the

W building.

Q. Where is that located? A. On Manchester Ave-

Spen

nue.

Q. In the City of Detroit? A. Highland Park.

FERIA REGAN OI 5 Ee EERIE

446 Spencer W. Libby, Cross Examination

Q. Were the Liberty motors built for the Ford Motor

Company? A. I don’t know. I was working on that one

particular part.

Q. That part was what? A. Liberty motor cylinder,

Q. How long were you on that? A. Until Armistice

Day.

Q. Then where did yougo? A. Back to the cam shaft.

Q. What duty did you have then in the cam shaft de-

partment? A. I was a shift foreman directly under the

general foreman.

Q. Who was the general foreman at that time? A,

Alex MeAlipine.

Q. And you were under him as a shift foreman? (299)

A. Yes, there was three of us, one on each shift. I was one

of them.

Q. How long did you stay on that job as foreman?

A. On that job, I stayed there until the early part, that

is, in Highland Park, if you refer to now that time, all

with the Ford Motor Company in that particular depart-

ment.

Q. In that department where you did the job? A. Re-

gardless of where the job was done?

Q. Yes. A. Either May or June, 1925.

Q. Then where did you go? A. From there I went

back to Highland Park on the Australian gas tank.

Q. What were your duties between the time of the

Armistice and 1925 in that department? A. The same as

I told you before. I was a shift foreman.

Q. You were a foreman on one particular shift? A.

Yes.

Q. And that was what, an 8-hour day? A. 8 hours

a day.

Q. You did that job all the way through until 1925?

A. That is right.

Q. And you made your reports, did you, to your im-

mediate superior? A. What reports have you reference

to?

Q. Any reports you made, if you made any. A. There

was nothing to make after the time sheets were made out,

and any trouble, of course, we took that up with the gen-

eral foreman.

(300) Q. But the department had a general foreman

in it? A. Yes, sir.

eqn RAS

HALES SINR GT AMM, SE I SE

ET ee eT OR DR Ne me

447

Spencer W. Libby, Cross Examination

Q. And you were working right under him? A. That

is right.

Q. Your testimony is these operations set forth on

Exhibit L-1 were copied by you from some sort of time

study report? A. That is right.

Q. Have you got that time study report now? A.

No, I haven’t got it now.

Q. How often did you get time study reports? <A.

How often?

Q. Yes. A. You can request a time study report

any time.

Q. Beg pardon? A. There is no set time for time

study.

Q. I did not ask you that. I asked you how often

you got them? A. As often as we requested them.

Q. Did you have the duty of requesting them? A.

We did.

Q. I mean you. A. I did. When I was on the day

shift if I wanted a time study on a particular job I could

get it.

Q. How often did you request them? A. Well, that

is hard to say, because sometimes you could run along for

maybe three or four months, and if there is an operation

change we immediately call the time study to get a new

cost for the part.

Q. Is that the only time you called for a time study, is

when you had an operation change? (301) A. Is that the

only time?

Q. Yes. A. If I wanted to change something done

on the job I would get a time study change. You might

change a certain operation, or get a new machine, and

then you would get the approximate time on that.

Q. Well then, there wouldn’t be a time study unless

there was something in the department that warranted a

time study, a change of some sort or other in the opera-

tion, is that it? A. No, I wouldn’t say that. What method

the company has in the time department for changing their

time study, or how the period is between the job, I don’t

know definitely, that is what I mean to say. There is

a certain lapse of time. That may be five months, or six

months, or maybe two months, but they have to bring the

records up to date. The operation sheets are not allowed

to get too old.

en : = ;

SESE RHC IER ME SOE es SEEN OR fT eM IDS ORD Kee REPT S TIS 7 VRZLSS Sa ORI ae FLARE SRO

448 Spencer W. Libby, Cross Examination

Q. The company determined that and not you? A,

Not me. I wouldn’t determine any time study. That is

entirely out of our department.

Q. Did you have any duty as to whether you would

have a time study or not? A. Whether I would have?

Q. Yes. A. If the operation was changed we sent in

a request to change the time study.

Q. Will you look over these operations as they are set

forth in Exhibit L-1 here? And indicate what change in

operation was in there that required a time study. A,

What change of operation was in here that required a time

study?

(302) Q. Yes. <A. At this time on this part?

Q. Yes. A. There is nothing. That represents, that

part, that is supposed to represent—

Q. (Interrupting): There was no changed operation

that was set forth on Exhibit L-1 that required any time

study? A. There is no change at this time the way that

part was manufactured. That there was copied from the

original time study. When it was taken, I don’t know.

Q. Now then, I want to be perfectly fair with you.

You don’t know the day upon which that time study was

taken, do you? A. The day?

Q. Yes. A. The date I don’t know, the date the

study was taken, because time studies change so much from

either a month or week or year or anything. I don’t know

that. But I do know that that was the operation on that

cam shaft or part we were doing at that time.

Q. Now, Mr. Libby, will you look at these specials,

Exhibit L-2? A. Yes.

Q. What do those specials mean? A. Well, sir, those

specials, center front, rear and long—if you have a cam

shaft print I could very readily show you what they rep-

resent. It is hard to explain that unless you have that.

When a bearing was ground—

Mr. Farley: Before you proceed, Mr. Libby, I

would like to say I am showing you print T-410 which

is attached to Exhibit A and identified as Exhibit 1.

Now, go ahead, please.

A. Now, if this bearing should come half a thou-

sandth under-size (303) in regular manufacturing that

was thrown out by the inspection department.

ry. he:

“? SASS

SEAM ON EL SI IE BLE ay

PELLETS MC IEE LS EE AGLI MEY NPE LIA PUI TE A,

449

Spencer W. Libby, Cross Examination

Mr. Farley: Excuse me a minute, please. In or-

der that this will be in the record, when you said

“this bearing’? you were referring to the bearing

shown in the blue-print at the left-hand side of the

sheet.

A. I eall it rear bearing.

Mr. Farley: And that is the rear bearing. Go

ahead, please. Try to avoid saying ‘“this.’’

The Master: When you refer to something, make

a reference to it.

A. Center bearing. If that was ground half a thou-

sandth under-size, why they would grind that down ten-

thousandths and make a special. That is what they de-

termine by the word ‘‘special,”’ whatever bearing is there.

That was 14 under-size bearings that day, and over here

you got on the center and rear. That is what you have,

and the long, the special bearing for length. This front

bearing is a little too long for the regular standard part,

so what we did, we took ten-thousandths off of here and

made that for a special length bearing, instead of scrap-

ping the part. That is what I mean by that part there.

Mr. Spohn: I will ask the reporter to mark a

page of this book Exhibit L-3.

(The page above-referred to was marked Ex-

hibit L-3.)

Q. I show you a page of your book marked Exhibit

L-3. That exhibit has some red crayon on it and I will

ask you who wrote that? (304) A. My little boy.

Q. Was this book at home? A. Always at home ex-

cept when I worked at the Ford Company, and then I

used to carry it on my person.

Q. There is a little of the writing in here that isn’t

yours. A. I will have to identify it if it is not mine.

Q. Did you always copy these time study records

into a book?’ A. When a man runs a department, how

otherwise is he going to base production? You have got

to have something to start with. You couldn’t go in there

without knowledge of something. That is the first thing

I do when I go in a new department. The first thing I

do is get the operation sheet and get costs and see if

there is anything we can improve on the job.

PREC ETI ee a

450 Spencer W. Libby, Cross Examination

Q. Was this copy put in this book then at the time

that you went on that job for the purpose of improving

the production? A. When I went on the job?

Q. Yes. A. What particular job have you reference

to?

Q. I don’t know. You say these are put in the book

so as to enable you to improve the work when you go into

a department? <A. Not necessarily.

Q. Why were they written in the book then? A.

Well, I told you when I was on a job I always took the

time study there and I took the operation sheets and it

doesn’t make any difference whether it is this week or

next week, but when I first went in there I never had any

access to these records.

Q. You didn’t? (305) A. Oh, no, sir, an operator.

Q. When did you first have access to the time study

records with reference to the cam shaft department? A.

It was after the War.

Q. How long after the War? A. Definitely I can’t

say. It was after the War, I know that. I couldn’t ex.

actly remember the date.

Q. Your testimony was you came back to the Ford

eam shaft as a shift foreman in 1919 after the Armistice?

A. The Armistice was in 1918, wasn’t it?

Q. 1918. A. Yes, I did come back after that.

Q. Were those records available to you then? A,

They were.

Q. This is the only one of those time studies you put

in a book like this? A. I don’t remember. I found this

in the attic.

Q. You found this in the attic in your home? A. In

my home.

Q. Now, you state those time studies were available

to you after 1918 when you were a shift foreman. A. As

a shift foreman, yes, sir.

Q. What did you do with those time studies after

you got them? What did you do with the papers or photo-

stats, or whatever it was? A. They were kept in a file

right there. We weren’t allowed to remove them from

the desk.

Q. Whose desk were they on? A. Our desk.

(306) Q. Your own desk? A. Yes.

. - eR re et ent Aare eye? 3K Pe

REEL PME RBI ERE TERY TEL INEST NEE EIR ELL II TYP HELE IS TM AIC TE IMT I

Spencer W. Libby, Cross Examination 451

Q. Were they always there? A. They were always

there.

Q. For how long? A. Until they were changed.

Then they were returned to the time study department

and replaced by new ones which they had written.

Q. Well, you had available always at the plant this

time study record on your desk, didn’t you? A. Yes.

Q. Why did you copy it in the book, then? A.

Why?

Q. Why did you copy it in this book, Exhibit L? A.

On the day shift, when the day shift went home they were

put away with the rest of the records of the men. That

is what I mean to say, the time sheets, and when the time-

keeper was gone they were put away. If you were on

nights you had no access to them and you kept it in your

own pocket.

Q. You were on the day shift? A. Sometimes, and

sometimes on No. 3. 2 weeks days, 2 weeks afternoons, and

2 weeks midnights.

Q. Then they were not on your desk, were they? A.

I said our desk, if you remember.

Q. How many men used that desk, Mr. Libby? A.

The general foreman, the three shift foremen and the time-

keepers.

Q. Did you make a copy of every time study that you

had? A. That is the only one we had. There was only

one part in that (307) department.

Q. Did you make a copy of every time study that was

put on that desk? A. I don’t remember whether I did

or not.

Q. Did you ever make any other copies that you know

of? A. In various departments I make them all the

time.

Q. In various departments. What do you mean by

various departments? A. The different departments I

have been in. If I went in a new department I made it.

Q. Your testimony is when you went into a new de-

partment you made a copy of the time study? A. I always

find out the time study.

Q. You did make a copy of the time study. You tes-

tified, did you not, that when you went into a new de-

partment you always made a copy of the time study? A. I

SOC eany SEF tp eae ~ .

ESOL REET IRE MO MDE RL Ne Be PERE NRIOL STEAL RUE RME RES BNE Ts ARR

ret

452 Spencer W. Libby, Cross Examination

always made a copy and found out the production and

everything on that job.

Q. Then thereafter you had available to you, did you,

the regular time study records? A. I had it before, |

couldn’t make a record of it. I must copy it from some.

thing. I can’t surmise that. I must prove to show I

have it there. I can’t go and time a job, because I am not

that efficient in time study. I don’t carry any stop-watch

with me.

Q. And after you went into the department and after

you made the copy of the first time study so that you

knew the operation and time in those operations, your tes-

timony is then you always (308) had, there was always

submitted to you or your superiors time studies at inter.

vals, that is right, isn’t it? A. There were time studies

at intervals, and when the time study was made at inter-

vals the old ones were taken over by the time study depart-

ment and the new ones placed on the desk.

Q. Have you any other book or paper or memoran-

dum that shows— A. (Interrupting): I looked through

everything.

Q. Have you any other book, paper or memorandum

in which you did copy any other time study record? A,

No, not in my possession I haven’t right now. I can tell

you the cost of every part that is made in my present

department, which is over 198 pieces. I keep a minute

cost of that every month, and the time study of that every

month.

Q. Now, tell me again, just why did you copy down

this time study in this book Exhibit L-1? A. Why did I

copy it?

Q. Yes. A. Well, the reason I copied it was I

couldn’t go into a department and not know how much

the thing cost. I always copy that for reference. It is

natural that a man going into a place would find out what

the part he is making would cost.

Q. Do we understand each other when you say you

go into the place, you mean when you go in for the first

time into the department, or what? A. No, when you go

into a department, when you are transferred, in other

words, to another department, it is essential that a man

should know the cost of the part which he is making.

pass

Spencer W. Libby, Cross Examination 453

Q. And do I understand then this statement was

written, this time (309) study was written in Exhibit L-1

when you were transferred to that department? A. It

doesn’t necessarily mean that.

Q. It may mean that? A. I don’t say it does.

Q. It may mean that? A. It may not mean it, too.

Q. You don’t know when this was written, do you?

A. I know it was written previous to April, 1924.

Q. How do you know that? A. Because the date is

in the book.

Q. It ison the next page? A. That doesn’t make any

difference.

Q. You mean to be understood as testifying here to-

day that you can state that that information set forth on

Exhibit L-1 was written in April of 19247 A. No, I can’t

say that.

Q. You say it was previous to April of 19247 A. I

never keep a book over a year, as I already testified, and

the exact date of that part, I am telling you, all that

what I have written in there, I can not exactly tell the

date. I couldn’t tell that to save my soul. I can’t remem-

ber that long ago.

Q. It may have been 1923, 1924 or 19229 A. It was

in the period of a year when that book was written.

Q. Either prior to or subsequent to April, 19247 A.

It was within the lapse of a year.

Q. A year either way? A. Hither way.

(310) Q. Oh, either way. All right. A. I can’t tes-

tify exactly right to the date when that was written.

Mr. Spohn: If your Honor please, may we have a

ten-minute recess?

The Master: All right.

Mr. Spohn: And I ask this witness still be segre-

gated from the other witnesses.

The Master: He can remain in this room, then.

We will recess.

(A short recess was taken.)

Mr. Spohn: That is all, Mr. Libby.

Now, if your Honor please, I renew my objection

to the offer.

The Master: Well, this document is not, of course,

the primary record kept by the Ford Motor Company

LEIP EEE IO BENE

454 Spencer W. Libby, Re-Direct Examination

of the time it takes to perform these operations, and

it is not a direct study by the witness himself, be.

cause the witness testified that he was not, or did not

make any time studies, and could not make them, and

it is merely a copy, but I think it is sufficiently proved

it was made at the time of existing time studies, |}

is in the nature of secondary evidence.

The only question in my mind is as to whether

sufficient foundation has been laid for the introduction

of this by showing that the primary records are legiti-

mately not available.

Do you have any argument to make on that?

Mr. Farley: Yes, there is another point in con-

nection with it. This is a record made at the time by

a man familiar with the operations.

(311) Re-Direcr Examination by Mr. Farley,

Q. Mr. Libby, will you refer to your notebook again,

and I call your attention particularly to the operation 12,

‘shape cams,’’ and for which in the right-hand column of

the book you have the notation 1.20. What does that nota-

tion 1.20 mean? A. That is the time it takes.

Q. That represents then— A, (Interrupting) : That

operation. That is the time it takes to do that particular

operation.

Q. That represents one and twenty one-hundredths of

a minute, is that correct? A. That is right.

(). And what is that, is that man-hour time for the job

or machine-hour time? A. Well, by that I don’t under-

stand, but I will explain to you what I mean. That means

the man takes the part and puts it in the machine and out,

and that is the operation you charge the time of one minute

and twenty one-hundredths.

Q. To each shaft for the time of a man on each shaft,

is that the idea? (312) A. That is right.

Q. How many shapers would the men operate at that

time? A. Shapers?

Q. Yes. A. Two.

(. One man operated two shapers? A. One man

operated two.

Q. Now, was it any part of your job to check and see

whether the men were producing production, getting out

- a mies RIO DET EL ET AR APM TO

PO LNG EP TLE GOR ERIE i OE SPL ID, ee a

dod Or

Spencer W. Libby, Re-Direct Examination 455

roduction in accordance with the time schedule as given

in that notebook of yours? A. Well, here is the way we

did that. I don’t know how the time study do their job.

That is a different thing, but what we do, we have a de-

partment, and we will say about 6 foremen in the depart-

ment.

Well, as soon as one foreman got ten operations,

another foreman got ten operations, and we add those

operations up at the end of a day, and the time sheet will

show so many men on that particular job.

Then we go to work and add these men up and the

hours up and how much production we got out on that par-

ticular part, and figure the cost of each unit on a job, and

the whole department is figured in after by the timekeeper.

Q. Do you use the operation sheets to check on that

production? A. No, not that way.

Q. Well, now, what is your personal recollection con-

cerning the output from the shapers and the shafts that you

expected to get from an operator for each shift? A. How

many shafts one man produces on 2 machines, is that what

(313) you mean?

Q. That is on the regular shift. A. Around 450 to

480,

Q. Now, let me ask you this: During your period of

time in the cam shaft department, as foreman of that de-

partment, from 1918 on and during the time the depart-

ment was using the shapers, did you, or were there any

changes in that operation of rough machining the cams that

would require any new time study to be made for that par-

ticular operation, so far as you can remember? Do you un-

derstand what I mean? A. No.

Mr. Farley: Read the question.

(Question read by the reporter.)

A. There was other machines came in there.

Q. I am speaking now, the question is limited to the

time when you were using the shapers, just during the

shaper operation. A. The shapers is all we had to do it

with right there and then.

Q. Was it required at any time, to your knowledge,

to have any new time studies made on the shaper opera-

tion? A. I don’t remember of any, Mr. Farley.

AS MT ALE EA IS FIP OS STALE ELON SEN IE OLIN BBS LYE IESE SOLED AG CEL IDOW EINES TIALS,

456 Spencer W. Libby, Re-Direct Examination

Q. Now, if you take the time given for that particular

operation 1.20 and divide that into 60 minutes, how many

—what would that give you as the output per man? A.

1.20. That would give you 50 an hour.

Q. How does that jibe with your recollection as to the

output that you got from those machines? A. How does

that what?

Q. How does that check up with your own personal

recollection of the output? If you got 50 per hour, how

many would you get (314) from the machine per man per

day? A. That would be 400.

Q. And your recollection is you got slightly more,

You testified you got more. A. Yes, we did.

Q. Now, just one more question. The counsel for

plaintiff pressed you very hard to have you state that this

particular record of yours was made at some other time

than the date you testified. What is your best recollection,

without pinning it down to any special day, as to the year

when you believe you made this notation?

Mr. Spohn: If your Honor please, I submit that

question has been answered by the witness.

Mr. Farley: Yes, he already has answered it.

The Master: I will overrule the objection.

A. The exact date I couldn’t honestly say, because it

was in a period of around a year either way. I can’t exact-

ly tell what date it was. I can’t tell that.

Q. What would be your best judgment, was it made in

1923, 1924, or 1925?

Mr. Spohn: If your Honor please, I submit that

counsel is cross examining his own witness. This is

on re-direct examination and the witness testified with

respect to the possibility of dates.

The Master: Well, he started in and asked a gen-

eral question in the first place and a further specific

question and then there was the cross examination, and

1 think counsel is entitled to go into it more specifically

on re-direct. I will (315) overrule the objection.

A. I am positive it was not made in 1925. I am posi-

tive of that. I am positive only it was not made in 1925.

Q. How about either of the other years? What would

you say as to 1923 or 1924? A. It must have been made in

— ane

FIR OLS OCTET SMP SN EAN BNE HUNG BOE IRE LIE ED YIN SIE TIER LIEN SUNN ERIN MINA IA Fy

Spencer W. Libby, Re-Cross Examination 457

1923 or 1924, in the period of a year there. I know it was

not made in 1925, I know that.

Mr. Farley: That is all.

Now, with respect to the objection, if your Honor

please—

Mr. Spohn: Just a few more questions on cross

examination.

Re-Cross Examrxation by Mr. Spohn.

Q. Now, you stated to me that it might have been a

year either way, you didn’t know. A. I didn’t know.

Q. And now you state you know positively it was not

in 1925. A. I do know positively, and another thing, I

went to the Rouge in 1925 and that book was made at High-

land Park. We never had a book of that kind delivered to

us at the Rouge plant.

Q. When you said it was a year either way, what did

you mean? A. 1923 or 1924. It was possibly made in

early 1923 or late 1924, but not 1925, sir.

Q. The only date that you have to fix that on is when

you went to the Rouge plant in 19257 A. I went to the

Rouge plant some date in September, 1924. The exact date

I can’t tell.

Q. What were your duties in the Rouge plant? A.

When I went to the Rouge plant?

(316) Q. Yes. A. Well, I had the wrist pin, part of

the camshaft and push-rod job.

Q. What part of the camshaft work did you have in

the Rouge plant? A. Well, I had the hard end or the push-

rod job. I can’t remember the part number of that, 419, if

I remember that, and the wrist pin job. I was not there

very long. My wife was taken sick and I went back to

Highland Park.

Q. You went back to Highland Park? A. That is

when my wife was taken sick.

Q. When you say at the end of the day you figured

up time records and production records and so forth, that

record was not made in connection with the time sheet?

A. It eouldn’t be here, because the first five operations I

never saw in my life. That is the reason I am positive it

was copied off a time study. I don’t know what building

they were made in.

BE ei ARLE A EM NEEM BRED

Ne i AEA TELM BASIL W IN BONY TAP ION PANNE SAI, MBM ERY

te SOOKE

458 Spencer W. Libby, Re-Cross Examination

Q. Did I understand you correctly when you said there

was no change in shaper operations with respect to rough.

turning while you were in that department that would re.

quire a new time study? A. Not that I know of, sir. |

don’t know of any operation change in there that would be

required on this particular one.

Q. That would require a new time study? A. I don't

know of any.

Q. Were there any other operation changes in that

department while you were in it which would require a

different time study, any other operations? A. Not that

I know of.

Q. Not that you know of. (317) A. Not that I know

of. I don’t remember of any.

Q. In the operations with respect to that camshaft

from the time you were there in 1918 until you left in 1924,

they were just about the same? A. The operations were

just about the same.

Q. Wouldn’t require any new time study at all? A,

That would be up to the time study department. That

wouldn’t be up to us, unless we made a radical change. If

we improved our job and cut the cost we would have to re-

port it to the time study department and they would make

a check, but I don’t remember anything of that kind being

done.

Q. If it had happened you would probably remember?

A. Yes, I would remember if there was anything that was

of any great importance.

Q. You would remember that? A. Yes.

Q. You can’t recall of any? A. I can’t recall of any

on that particular job.

The Master: You state the time study department

made time studies at regular intervals whether there

was a radical change or not?

A. Yes, sir; they do that. They come down and make

a time study if they have got an idea there is some con-

fliction in the cost, I suppose, they come in sometimes and

time your job, take a time study, that you don’t even call

them in on.

If you will notice on the bottom of each operation sheet

there it says that any change in operation must immedi-

PP os

% Se AT POEM LY PEELING TCLS TS I

. mane y A Bho d

Colloquy of Master and Counsel 459

ately be reported to the time study department. You see

that on the bottom of the operation sheet.

(318) Mr. Spohn: I guess that is all, if your Honor

please.

Mr. Farley: Do you want to hear me on the ob-

jection?

The Master: Yes.

Mr. Farley: That is all I have of the witness.

Mr. Spohn: That is all for the witness.

The Master: Is this exhibit being introduced not

only to show the operations, but also as evidence of the

time it took?

Mr. Farley: Yes, your Honor, introduced as evi-

dence of the time the operation took, as a record made

by this particular witness who was familiar with the

facts at the time the facts occurred, made in his own

handwriting, and also as secondary evidence, and we

will produce the witnesses later to explain the practice

of the Ford Company with respect to the destruction

of these time studies, and we will show the original

time study from which the man made this particular

copy is no longer in existence and not available. It is

not secondary evidence. The witness testified he posi-

tively made it from a time study that was in existence

at that time. I think under all the facts it is clearly

admissible.

Mr. Spohn: If your Honor please, may I defer

my argument on that until we hear the witnesses?

The Master: I think for some purposes, without

having the other witness’ testimony, that this docu-

ment will be admissible.

The witness has testified that he is thoroughly

familiar with the operation, and that this record is an

accurate record of the operations at the time.

I think on his testimony alone, without the other

testimony, (319) it would be admissible for that pur-

pose, but when it comes to the actual times that are set

forth there, this witness has never clocked or timed the

various operations, and for that purpose it is only sec-

ondary evidence.

On that question I think I will have to withhold

my ruling until you show the primary evidence is not

available.

ERLE NGS LUE EOE LOS WII II oA Nh MS ALINE I Sip NAIA TIES OE pl Toe BOLL SEPALS OM PRM OME MSE EN Tie a

Colloquy of Master and Counse|

I think you can go ahead and question the rest of

the witnesses, however, just as though it were admitted

into evidence, and I will withhold a ruling until such

time as the further proof is submitted.

Mr. Farley: That is all, Mr. Libby.

Mr. Spohn: With respect to your ruling I want to

point this out.

One of the basic reasons of the objection to the ex.

hibit, even for the limited purpose for which your

Honor received it, was it has no definitely fixed time.

In other words, the witness’ testimony was he

copied it from a time record. He doesn’t know when

that time study was made. So far as this record shows,

that time study may have been made in 1918.

Mr. Farley: I don’t think it makes any difference

when it was made. It is a record of the operation of

those shapers.

The Master: It was a time study which was in

use in the department some time in 1923 or 1924. |

think that the witness’ recollection is sufficiently good

on that point to assume that that is the truth, that he

did copy it, the time study, during one of those years,

The original time study may have been made in

1918, and (320) under his testimony possibly not re-

vised since then, but if it was not revised, it would ap-

pear from the system employed that it was not revised

because there was no radical change necessitating a

revision.

I am inclined to think that your objection as made

has something to do with the weight to be attached to

the evidence, but I think the document is admissible,

and I will admit it, except for the purpose of or except

as evidence of the actual time of the various opera.

tions. I don’t think it is yet admissible for that pur-

pose.

Mr. Farley: All right. Now I will have Mr.

Shawkey resume the stand.

Morris E. Shawkey, Direct Examination 461

Morris E. SHawkey was thereupon recalled as a wit-

ness on behalf of the Defendant, and having been previ-

ously duly sworn, testified as follows:

Dmecr Examrnation by Mr. Farley (Continued).

_ Mr. Shawkey, when you were asked to retire from

the stand I think we were discussing this Libby notebook

and what you did with the notebook after you got it from

Mr. Libby. Will you resume from that point? I think

it is all right, unless you want the reporter to read back

to you what you were saying. A. No, I recall I was say-

ing I had taken the book with me to Mr. Klopsic and let

him look over it, and we thought it would be a good idea

to immediately have photostats made of it.

Q. What else was done with it? Were there any

other copies made in addition to the photostats, if you

know? (321) A. Not that I know of. Yes, Mr. Klopsic

copies off—he had the typist type an operation sheet or

time study form from this book.

Q. And then did Mr. Klopsic turn over to you the

book and operation sheet which he had typed? A. Yes,

he did.

Q. I show you an exhibit which is marked for iden-

tification Exhibit M here, and ask you whether or not that

is the sheet that Mr. Klopsic turned over to you? A.

That appears to be the same, yes.

Q. After you received that sheet, Exhibit M, did you

check it with the note book and the times given at any

time? A. I was looking at this. I don’t believe I got the

wording of the question.

Q. I say, after you received the sheet Exhibit M, did

you check that sheet then with the information as con-

tained in the Libby notebook? A. Yes. We run over the

figures to see that they corresponded.

Q. You made a check with Mr. Klopsic on that? A.

Yes.

(322) Q. Did you make any searches through the

files of the superintendent’s office, or any other place, par-

ticularly for time studies and operation sheets? A. Yes,

I did.

Q. And did you locate any other ones? A. I located

a time study sheet in the superintendent’s office.

462 Morris E. Shawkey, Direct Examination

Q. Are you familiar with the practice of the com-

pany concerning operation sheets in the work that you were

doing in the cam shaft department? Was it any part of

your duties to refer to time study operation sheets? A.

Yes, quite often, to make me familiar with the times of

the various operations, and the way—I am at a loss to

express myself,—the following of operations, if | make

myself clear, how they were arranged, one operation after

the other.

Q. That is, as I understand your testimony, you men

in a position of foremen, more or less in authority there,

regularly use the time studies as a part of your regular

duties in order to be thoroughly familiar with the sequence

of operations? <A. Yes.

Q. And also the time which is supposed to be con-

sumed in the various operations? <A. Yes.

(323) Q. I show you an exhibit marked Exhibit N,

and ask you if you can state what that is? You were

speaking about the fact that you found an operation sheet.

Is that the operation sheet you procured? A. That seems

to be the operation sheet that I found in Mr, Smith’s

office.

Q. And who is Mr. Smith, please? A. The building

superintendent.

Q. Of what building? A. The motor building.

Q. And is that the building in which the Department

410 camshaft department is located? <A. It is.

Q. And from whom did you procure that particular

sheet? A. I went through the file myself. I don’t know

if all the papers were in there, and I found this sheet among

those papers. There were several sheets that had refer-

ence to various things in the camshaft department that

were in a file 410, and this was among the papers.

Q. Let me ask you, Mr. Shawkey, was there in the

superintendent’s office a regular file of operation sheets

or time study operation sheets, a current file for the work

then in process or then being used? A. I couldn’t say

to that, because I asked the superintendent’s clerk if he

had in his files any old files for past periods, and I don’t

know. I didn’t go through all his drawers. He pulled

this one out with a lot of other old information there.

(324) Q. Miscellaneous papers? A. Miscellaneous

papers, and this was found among those.

7 mene eevee, GES * dates

IDE ATES PET NORTE Hp DEF ESE SO SPEED ARAL, AE BLL ISR GY TOG LAINE LE AOR A 3 BINA QM wee He s

Morris E. Shawkey, Direct Examination 463

The Master: Did you yourself go through all

those miscellaneous papers?

A. Yes.

Q. And that was the only operation sheet you could

find in those miscellaneous papers? A. Yes.

Mr. Farley: I offer this in evidence as Exhibit

N as a paper found by this witness in the regular

files or records of the Ford Motor Company and pro-

duced by him from those records.

* * * * *

(The hearing was resumed pursuant to recess.)

(Parties present the same as before.)

(335) The Master: You finished your direct ex-

amination?

Mr. Farley: Yes. I would like to offer in evidence

this Exhibit M, which is the re-typing of the material

on the Libby notebook, which was done for con-

venience in attaching it to our statement of account,

and about which the witness just testified.

Mr. Spohn: If your Honor please, in respect to

the offer, if it is to be received at all, I move that

the date of April, 1924, be stricken from the offer on

both sheets. The testimony is clear as to the day

of its date, so far as the recollection of the witness is

concerned.

The Master: I think from the testimony it is not

known whether it was in April, 1924. You might

change this to 1923 or 1924.

Mr. Spohn: If that is done then I ask the month

of April be stricken off.

Mr. Farley: No objection so far as I am con-

cerned.

The Master: It doesn’t indicate on its face—

yes, it does, too—it indicates that it is a copy of the

Libby notebook. I will just cross out 1924. Have

you compared it with the original exhibit?

Mr. Spohn: May I have a minute to do that, your

Honor? (336) If your Honor please, I don’t see on the

— of the exhibit—Mr. Farley, am I wrong in

this?

464 Mike Klopsic, Direct Examination

Mr. Farley: No, there are some additional things,

Mr. Spohn: Weights, and so forth.

Mr. Farley: That have been put in here that ]

will examine Mr. Klopsic about.

Mr. Spohn: If we may stipulate that the weights

appearing, rough weight 5.865 pounds, finish weight

3.2050 pounds, and the next words, ‘‘forging steel,”

are not in the original Exhibit L and subject to fur.

ther proof by counsel, then I won’t have to move to

strike it out.

Mr. Farley: So far as I am concerned this may

be stricken, because I don’t think it has any rele.

vancy.

Mr. Spohn: Then I move it be stricken.

Mr. Farley: To any of the proceedings here. |

think it will save time, if instead of examining the

witness on it.

Mr. Spohn: As I understood the tendered offer of

Exhibit L was admitted not as evidence of a min-

ute consumption as set forth therein, am I right on

that?

The Master: That is correct. Exhibit M will be

admitted as simply a copy of Exhibit L and admitted

subject to the same limitations.

Mr. Spohn: And received for the same purpose as

Exhibit L was?

The Master: That is right.

Mr. Spohn: I want to offer the same objection to

the reception of Exhibit M as Exhibit L.

(337) Mixe Kuopsic was thereupon called as a witness

on behalf of the Defendant, and having been first duly

sworn, testified as follows:

Direct Examrnation by Mr. Farley.

Q. State your name, please. A. Mike Klopsic,

K-1-0-p-s-i-e.

Q. And where do you live, Mr. Klopsic? A. 1450

West Grixdale Avenue, Detroit.

Q. You are employed by the Ford Motor Company,

Mr. Klopsic? A. Yes, sir.

Mike Klopsic, Direct Examination 465

_ And what are the nature of your duties at the Ford

Motor Company? A. Foreman of the time study depart-

— How long have you had that particular position?

A. Somewheres since 1928. I will not be able to recall the

month. Anyway, it was at the beginning of Model A. That

will give you the date. I don’t recall just when.

Q. Model A was shown to the general public, the first

showing of Model A was December, 1927? A. It was at

the beginning of 1928. It was in the month of March. I

am not going to say which year it was.

Q. If it was the beginning of Model A that would make

it 1928. How long have you been employed by the Ford

Company, Mr. Klopsic? (338) A. Since November 11, 1913.

Q. Now, how many men do you have working under

you at the present time, Mr. Klopsic? A. You mean only

at the Rouge plant?

Q. Well, generally. It doesn’t make much difference.

I thought I would let you give in general the extent of your

employment. A. Somewhere around 90.

Q. Of that number, how many are at the Rouge plant?

A. At the Rouge plant there are 25 or 24.

Q. As a part of your duties do you supervise time

studies, not only at the Rouge plant, but all the various

branch plants of the Ford Motor Company? A. Yes, sir;

both in this country and in Europe.

Q. Now, will you explain to his Honor the general

system used in your department and at the Ford Motor

Company in the making of time studies? A. We use the

decimal timer, double action.

The purpose that we use only this watch is because it

has two large hands. When we start an operation and it

continues, if for any reason there is avoidable delay, we

press on this and we stop one hand. Then we count, take

into consideration only between this hand and this hand,

which gives us the amount of lost motion.

Q. Then when the lost motion ceases, you press the

other button? A. Release it again when the lost motion is

started, then we release it. One gets accustomed to it.

Q. Now, when a time study is made by your depart-

ment, Mr. Klopsic, do you time—state just how you make

that sort of a time study. Let us assume, we will say for

the purpose here we (339) are concerned only with the cam

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466 Mike Klopsic, Direct Examination

shafts, manufacture of cam shafts. Are you familiar with

the cam shaft department? A. I am ina general way, |

don’t myself at the present time make time studies but I

check them to see that they are fairly balancing with the

actual time paid by the company.

Q. I think for the purpose of making your test per.

haps more readily understandable, I will show you an ex.

hibit which is marked Exhibit 7, and attached to Defend.

ant’s first statement of account which has been introduced

in evidence as Exhibit A, or marked Exhibit A, and I wil]

ask you just what this Exhibit 7, which is entitled ‘Opera.

tion Sheet’’ is, by name cam shaft symbol A-6250. It has

at the bottom of the sheet, ‘‘Revised 7-1-31 by M. K.”’? Who

is M. K.? A. That is me.

Q. Now, did you make that particular time study to

which your initials are attached, or was that made by some-

body under your supervision? A. By one of the men work-

ing under me and on his original would be found his ini-

tials, if that could be procurable,

Q. Now, will you explain in general about that type of

time study and just how they are made? A. This time

study, or any time study under my supervision must be

studied.

We have a ruling that it must be studied a sufficient

length of time, the sequence of the complete operation, until

the observer will find delays, if any, and so record them

with the foreman.

That varies. Shall we Say an operation that will re-

quire (340) 2/10 of a minute, it would be studied generally

at least 10 minutes.

Under no consideration a time study man is to put

down the figures with less than 20 minutes study, when

operations are requiring say four or more minutes, because

we believe it is not possible for the eye to find lost motion,

and the accuracy would be more questionable on the end

of the month when the total hours charged to that part

number and the total time study, then the study would he

then out of balance, if we did not time study long enough.

Q. When you make those time studies are they all

made with a stop-watch? A. Yes, sir.

Q. Now, as I understand your testimony, your instruc-

tions are that the man must time the operation over a suf-

ficient number of pieces so that he gets a fair record by

Mike Klopsic, Direct Examination 467

use of the time study and the use of the stop-watch? A.

a Now, with respect to that particular time study

which ¥ou have before you, I call your attention to opera-

tion 14 made on July 1, 1931, and can you state whether or

not you know what machine or what operation that is, and

what machine that operation was performed on? A. No, I

can not state on what machine that was performed on, due

to the fact that I myself did not make the time study.

Q. Is that, however, a record from your department

and a record made under your supervision? A. Yes, sir.

The Master: What is the purpose for which you

make these (341) time studies?

A. There are two purposes. For cost accounting and

for elimination of lost motion.

The Master: If one of your men is making a time

study and he discovers for a particular operation there

is considerable unnecessary delay, so that we will say

the operation should be capable of being performed in

half a minute, when actually it is being performed in

one minute on the average, which of the two times

would be set down on the time study as being the time

for the operation?

A. Always the one, the reliable one which is at that

time performed, and not the future one, what it should be.

When it is necessary to make a new time study, which

in the case your Honor specifies we would make a new time

study after the operation has been corrected.

Q. When you make a time study, Mr. Klopsic, or re-

ferring to this particular one Exhibit 7, and I call your

attention to the column under the heading ‘‘ Minutes,’’ just

what does the minutes necessary for this operation 14,

.7143, what does that indicate, machine time or man time?

A. Combined time, handling and machine time.

Q. But the record .7143 is the record of the man, the

entire time on the man to produce one piece, is that correct?

A. That is correct.

Q. Now, do you know what the purpose of making

those time operation sheets is for? For what purpose are

they made? A. They are used in the accounting depart-

ment for cost purposes and on a yearly inventory, for the

inventory in process, pricing.

ILEDLINO LEE GLE GES LAM eee ESTE LOR Bi BE AIP NPIS OD EET IES LTT EMAL: NEL, AT hE

468 Mike Klopsic, Direct Examination

(342) Q. Are they also used in any way by the fore.

men of the various departments? A. They are.

Q. For what purpose, if you know? <A. I do.

Q. Thank you. A. For the purpose of keeping with.

in the cost specified in the time study. Each foreman vill

first see the time study before he will O.K. it as all right,

or it will not come to my desk.

Q. Now, as the time given, and we will restrict the

answer to this particular operation 14, .7143, does that rep-

resent actual time as shown by your stop-watch, or is there

any allowance computed in that particular? A. There is

always an allowance added. That is according to the fa.

tigue of a human body.

For example, a man working on cylinder blocks, if he

were to lift cylinder blocks all day, he can not perform, he

would get tired, and an allowance must be made.

An allowance must also be made for personal duties,

and it must also be made—allowing the distance from his

place of work to that of lavatories and so forth. That

allowance must be made. It varies.

In some departments where the work is lighter, we will

probably allow 1414 per cent, that is, to the entire figure

arrived at by the observer, and not only on the machine

time and man time, but combined time.

Q. What is your usual, more or less standard allow-

ance? A. Well, I believe that we would come nearer 20

per cent on an (343) average, than we would to any other

figure.

Q. And in making this allowance is there any con-

sideration given by your department to such things as the

necessity for changing tools in machines, and machine

trouble, and that sort of thing? A. Yes, sir.

Q. And in connection with an operation which in-

volves the use of a machine, and not merely a purely manual

operation where no machine is involved, what is your ordi-

nary allowance there? Would it be the 14 per cent or the

20 per cent? A. Where no machine is used?

Q. Where a machine is used as distinguished from one

where it is a purely manual operation. A. It would be 20

per cent.

Q. Then can you state whether or not an allowance of

20 per cent is included in this figure of .7143 on the opera-

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Mike Klopsic, Direct Examination 469

tion sheet Exhibit 7 for the A-6250 shaft? A. Yes, I be-

lieve it was.

The Master: Do you know whether it was 20 per

cent or 15 or 25, or do you simply mean there was an

allowance made?

A. There was an allowance made, whether 20 per cent

or 25 per cent, I have no means now of checking back, but

that it was not less than 1414 per cent, I am sure.

Q. Do you know what particular individual in your

department made the time study from which this sheet was

made? Does this initial G. Z. throw any light on that, or is

that the name of the typist?

The Master: Can you tell generally whether that

would (344) be the name of the man who made the time

study, or the typist?

A. Generally it is the man, but I could not say G. Z. is.

I am afraid that is the typist’s initial, because I am not

familiar with the name, of ever having had any time study

man with the last letter ‘‘Z.’’

Q. In 1931, were you making time studies yourself, in

July of 19317 A. I made some time studies.

Q. Would the fact that your initials M. K. appear on

there, would that indicate you yourself might have made

that one, or did make that one? What is your practice in

that respect? Do you put on the time study the initial of

the man who made the time study, or are all time studies

that are made in your department,—do they contain your

initial? A. They all contain my initial, but also the initial

of the man that made the time study.

Just when that was started, these sheets do not provide

that space, but now we have the same form number that

does provide space for the initials of the observer.

I might have myself made that time study. I might

have made it myself.

The Master: Where did you get this 1444 per cent

figure from? You are getting down to fine points of

accuracy when you split percentages.

A. 144% per cent. In other words, of 480 minutes is

about ¥, allowing for personal duties, just about 1, I be-

lieve, 1444 per cent of 480 minutes. That is 68.4 minutes.

PEROT TIRING MY LEY GALE AP RR PEDO INE EMIT OLANE Bf BCG NR SEAN EN RS Taek Ah

mr

470 Mike Klopsic, Direct Examination

The Master: I was just interested in knowing how

you (345) arrived at the figure 1414 per cent as being

the minimum allowance for non-productive time.

A. That is not accurate at all. The working man’s

cycle will go somewhat like this:

First hour, second hour, third hour, fourth hour, fifth

hour, and so on, will rise from the morning work, continue

on quite an even scale until about the sixth hour, seventh

hour. Whether he wants to or not, a working man has a

very hard time to produce as much as he did at the fifth

hour.

In the third, fourth, fifth, sixth hour he will produce,

if conditions permit, more than he will in the first or last

hour.

That is generally applied, T believe, by all time study

departments.

Q. And do you find that to be true as a result of your

own observations? A. Yes, sir.

Q. How long have you been doing this time study

work, Mr. Klopsie? A. Since 1928, about 101% years.

Q. Now, when the time study, such as this Exhibit 7,

is produced, it is submitted to you, you say, or rather, it is

submitted to the foreman before you get it. What, if any-

thing, do you do towards checking the correctness of that

time study before letting it become official? Let me ask

you this first: I assume that before these time studies are

put into practice there that they must be approved by you,

is that correct? A. By me or my assistant. I have an

assistant.

Q. And who is that assistant? A. His name is Frank

Dorsey.

(346) Q. Now, what, if anything, do you do towards

checking the correctness of that time study before you per-

mit it to issue from your department? A. If it is away

from actual conditions it does show, when variation appears

greater than warranted, but the reason of time study, per-

haps the reason the time study was made first, was because

operations changed, either the sequence of operation or

some improvement has been made, and if the variation of

time varies too much to be safe, we re-check it.

We send a man back to check it again to be sure that

we will be within balancing time of the time depart ment,

which is under another departmental head.

Mike Klopsic, Direct Examination 471

Q. Now, when you say because of a change of an

operation or because of an improvement, just what do you

mean by improvement there? Do you mean improvement

in the product, some change in the construction of prin-

ciple, or do you mean improvement in the machines or

methods, or do you mean both? A. I mean both; that if

an operation is combined with another, or eliminated, al-

though the design may remain the same, the cost is affected

which demands that I make a new time study.

Q. From time to time changes are made in the various

parts by the engineering department, and the engineering

department informations issue? A. Yes.

Q. To make some change in the construction of a part,

and even if it were only as to one portion of the part, that

is one thing that would necessitate a new time study? A.

I receive from Mr. Sheldrick every engineering change

issued (347) by the Ford Motor Company. <A copy is for-

warded to me in order that I maintain a schedule of what

to do.

Q. In order that his Honor may understand that sys-

tem I hope I may do a little leading to shorten the thing up.

At the Ford Motor Company they have an engineering de-

sign or department which devotes its entire time to changes

in the construction of the car; that is Mr. Sheldrick’s de-

partment, is that right? A. Right.

Q. And whenever a change is made in any part of the

construction that is when an engineering information is

issued that one is being made? A. Yes.

Q. And you say you get a copy of every one of these

engineering informations? A. Yes, sir.

Q. And it is your duty to inspect those, and if you find

any change has been made in any of the parts of the car,

then it is your duty to send a time study man to check that

operation, that is correct? A. It is my duty to give each

time study man—they are assigned to certain buildings,

and I give those parts that are manufactured in that build-

ing, I give these engineering informations to the time study

man. It would not be sometimes quite possible for me to

read them all.

Q. Then what does that man do after he gets the engi-

neering information from you? A. He first checks whether

it is a material change, like forging (348) or casting

whether it is to be purchased on the outside or to be manu-

472 Mike Klopsic, Direct Examination

factured. At times changes occur that we buy parts on the

outside, and we make parts sometimes at the factory.

Then he would change, if an operation change js

needed, and he will go to the department manufacturing

that part and make a new time study.

Q. And check with the foreman of the department?

A. Yes, sir.

Q. Very well. Now, supposing you get new machinery

into one of the departments to perform an operation that

was formerly performed by another machine, how is that

sort of thing brought to your attention? A. On machinery

purchased by Mr. Kellogg’s department, when an installa-

tion order is issued, I receive a copy of that order.

Q. And after you receive a copy of an order showing

the installation of a new machine, what is then done? A.

Immediately the machine is installed. If it is a new ma-

chine, that it will change the times, we will make a new

time study, but if it will not change the actual time re-

quired to perform the operation, then we may not change it.

Q. In other words, if a new machine is purchased and

is of a different type from the machines that had hereto-

fore been used in the department, you would make a time

study? A. Yes, sir.

Q. But if a machine coming in, a new machine coming

in, was of the same type as already had been in use in the

department, you might not make a time study of that one?

(349) A. I might not make a time study if the machine is

simply added because of larger production may be required.

Q. Now, after these time studies are prepared and

checked and approved by you and you are satisfied that

they are accurate, what then is done with them? A. One

copy goes to the accounting department, one copy goes to

the foreman, general foreman in the department, and then

they are all for foreign branches. They are mailed, such

as Walkerville, Degenham and Germany and France, wher-

ever they manufacture.

Q. Degenham is the English plant of the Ford Com-

pany? A. Yes, sir.

Q. When you prepare a new time study what hap-

pens to the former time studies that you have prepared, or

let us say between the period when you started in the de-

partment until quite recently what was the practice? A.

Until quite recently the old sheet was always destroyed

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Mike Klopsic, Direct Examination 473

when a revised sheet was issued, because of the tremendous

filing space, and it was not deemed necessary, I presume,

by the executive department, of which I would have no

knowledge.

The Master: In connection with the answer to the

previous question, did I understand where you make a

time study you retain the original or copy in your own

department, as well as sending them on to these other

departments that you mentioned?

A. Yes, one copy, the original, is kept.

Q. And when you issue a new time study and send it

to the foreman of the department and to the accounting

department, is it the duty of your men to collect the old

one and see that it is (350) destroyed? <A. No, it is not.

Q. Whose duty is it, if anyone’s, to destroy those old

ones? A. The timekeeper of the department should, ac-

cording to instructions, when he receives a new operation

sheet, should pull out the old one and destroy it and insert

in the same place the new one.

Q. Do you know the reason for that practice, in so far

as the time study man of the department is concerned, of

destroying the old one? A. No, I do not.

The Master: With respect to the copies that are

sent to the accounting department, do you know

whether those are destroyed, and if so, under what cir-

cumstances?

A. Until very recently they were destroyed after

either obsoletion of a model or discontinuance, or when a

new operation sheet was issued the old one was destroyed.

The Master: That was true of the accounting de-

partment as well as the copies sent to the foremen of

the various departments?

A. Yes.

The Master: Whose duty was it in the accounting

department to see that the former sheet was destroyed?

A. The cost clerks figuring those parts when receiving

a new operation sheet they each had there on file, and we

will say when they get one they simply pull the old one out

and insert the new one.

PREBLE. LEE LOIRE AEE ESN OE SIS LDF SRD LOG LO MRE ee

474 Mike Klopsic, Direct Examination

The Master: Are there instructions on the

themselves (351) to that effect?

A. No, that was all done by, shall we say verbal re-

quest, or understanding? I don’t know. I always under.

stood it. Before I was a time study man I worked in the

cost department myself figuring costs in money and I re.

member that that is what they did.

Q. That was the instruction you had when you were

in the cost department, to destroy the old sheets as soon

as you got the new ones? A. Yes, sir.

Q. Now, in so far as your own department is cop.

cerned, what orders have you there in that department in

so far as destruction of the old sheets were concerned, when

the new sheet was gotten out, or what was the practice

there when the sheet was made? A. The practice was the

same until recently, when we were instructed to file the old

sheets. Until then we always destroyed obsolete operation

sheets,

sheets

The Master: When you say recently, what date are

you referring to?

A. I would say it is maybe a couple months ago.

Mr. Farley: I might say, if the Court please, there

that in view of the experience I had in this case dis.

covering records that orders were issued that there be

a complete file kept in the future of all operation sheets

prepared at the Ford Motor Company.

Q. (By Mr. Farley): Now, Mr. Klopsic, I would like

you to first look at this Exhibit L, the notebook which has

been introduced here, and ask you to examine it and state

whether you have ever seen (352) that before? A. Yes, I

have.

Q. Well, will you please state the circumstances under

which you saw that notebook? A. Mr. Shawkey brought

this to my desk. I will not say what date it was, but for

the purpose of convenience I had an operation sheet copied

off of this, just as it was written, using the same figures

as they appear in this book, and that is all I did with the

book.

Q. I show you the 2 sheets that were marked Exhibit

M, and ask you if you know what that is, and if so, to state?

sip

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Mike Klopsic, Direct Examination 475

A. That is the sheet that I requested to be prepared. I

felt that it was going to be for convenience. That was all.

Q. Prepared from what? A. From this book.

Q. And the data appearing on the operation sheet

Exhibit M, is that precisely the same as contained in the

notebook? A. Precisely the same. That was the sheet.

Mr. Farley: I think that this already has been

offered.

The Master: Yes.

Mr. Farley: And it is received subject to the ob-

jection made against the notebook.

Mr. Spohn: I suppose it doesn’t make any differ-

ence, but there is a total on this page that was not on

the other, and without taking the time to add it up, I

don’t suppose the total is material.

Mr. Farley: No, I don’t think so.

Mr. Spohn: I suggest the total be stricken. Other-

wise we (353) have got to add it up and see if it is

right.

The Master: Let us strike the total.

Mr. Spohn: It is not material, anyway.

Mr. Farley: That is quite right.

The Master: After these time studies are made,

is there any attempt on the part of your department

or any other department to check the production to

see that it corresponds with the production which

should be obtained according to the time studies, if

you know?

A. Yes. Form 2002-B, I believe it is, on top of that

form is inserted the latest time study, the best month, and

naturally the actual minute cost of that time. Mr. Woehrle

had the form like that here.

Q. Here is Form 2002-B, Exhibit H. That is the form

you are referring to? A. Yes. You see they insert that

time study. In here are inserted the shift hours. This

would be shift No. 1, which would be from probably 11

o'clock at night to 7 in the morning. That would be from

7 va afternoon shift, and that would be from afternoon

to 11.

Then these hours are totaled and production inserted.

The minute cost is figured daily on the form. If it

varies to a great extent, what he has here, it is immedi-

ODETTE IO LRT IED, STE MT AT OT TAS

476 Mike Klopsic, Direct Examination

ately called to our attention. Of course, that will not give

operation cost.

The Master: To make the record clear, you mean

if there is a material variance from the time in the time

study then it is called to your attention?

A. Yes.

(354) Q. (By Mr. Farley): If there is a material

variance which persists between the total times as given

by your time studies, what then happens? Do you re-check

the job or does it run on without any further check? A.

What happens to all of us who work at the Ford Motor

Company in the time study department, we will know quite

well when it does happen.

Q. Then what do you do, Mr. Klopsic, when that does

happen? That might be called the first reaction, and after

that first reaction, Mr. Klopsic, what then happens? Do

you put your men back on checking? A. Hither that ob.

server will go to the job immediately, which most of the

time is not rapid enough, and I have to go and do the work

myself.

The Master: Are your time studies expected to

give an accurate representation of the amount of time

to do the job whether you are having low production

or high production? Is there any effect of produe-

tion on the accuracy of the time studies, as represent-

ing the actual production?

A. We make great attempts to be as near up to date

as humanly possible, and we strive to always issue new

sheets for parts that require lower production, which has a

bearing on cost.

Shall we put it this way, your Honor: When a model

changes and the obsolete model production is lowered, we

must issue new sheets, new time sheets, because of the

lowered production.

The Master: Even though the operations them-

selves are exactly the same?

A. Yes.

(355) The Master: Is there any general correla-

tion between low production and the amount of time it

takes to do the job? That is, can you state when the

PL LVL GE EE FROME EM FEY ERT OT: WERT

Mike Klopsic, Direct Examination 477

production is low the time for the operations rise, or

‘s less than when the production is heavy?

A. Only in handling, your Honor. The variation is

only in handling, delivering to machine, because the flow

:s not constant like in full production.

The variable will be in handling the stock.

Machine time will not change materially, unless an

operator, for example, will run three machines during high

production, and two or one and part time one. That will

have a bearing then on what he can produce.

Q. When you say two or one or part one, you mean

on low production? A. On low production.

Q. Yes. Now, do you know, Mr. Klopsic, did the

Ford Company have a time study department at the High-

land Park plant? A. Yes, there were two men working,

Mr. Bennett and Mr. Marentette.

Q. At the Highland Park plant? A. At the Highland

Park plant.

Q. Since you took charge of the time study depart-

ment in 1928 where has most of your work, in so far as the

Ford Motor Company here in Dearborn or in River Rouge,

or wherever you want to call it, has most of your work

been in what we call the Rouge plant or Highland Park

plant? A. Most of my work in time study has been in the

Rouge plant.

Q. Before you started your time study department in

the early part (356) of 1928, do you know whether or not

there was any time study department at the Rouge plant?

A. There was not. :

The Master: Do you have a separate department

called the time department?

A. The time department is a separate department,

yes, sir.

The Master: What is the function of that depart-

ment, just to keep a record of actual time spent by the

workman?

A. The foreman in charge of that department is the

boss of all time clerks, keeping the Form 2002-B, extending

the clock cards, balancing the time from daily foremen’s

lime reports.

478 Mike Klopsic, Direct Examination

(373) The Master: What kind of checks have

you made on the accuracy of your time studies, gen.

erally? Have you ever, for example, had two or three

different men make time studies of the same series of

operations unknown to each other and to check up their

results?

A. Well, that is done only periodically. You change

men around. That is done periodically, say every three

months. A man that now works in one building in approyi-

mately three months will be assigned to another building,

and the other man from the other building will come to his

building.

The Master: When they are shifted around the

man who is shifted doesn’t immediately make new time

studies of all the operations in the departments that

he is now assigned to, does he? He simply waits until

some occasion arises for a new time study to be made,

the same as the old man did?

A. Oh, yes.

The Master: Have you ever made any experi-

ments to see how closely two different men in your de-

partment would come in their time studies on the

same series of operations, at the same general time?

A. It is not deemed necessary, because we use Form

2002-B to state and show the facts, how much, how many

hours or minutes Ford Motor Company has paid in wages

to workers to produce that, and if our time study is out of

balance on that, as stated before, I would very quickly be

informed that something is wrong.

(374) The Master: When one of your men is

making a time study, might not the man observed

speed up during the particular period in which the

time study is being made, and consequently go through

a series of operations in much less time than he ordi-

narily would?

A. We time study in the plant approximately six hours

a day.

The department starts at 8 o’clock, while produe-

tion starts much earlier than that, and the time study men

come into the office to make their computations of the last

LOI OP IIT FIT LIOTTA STEEL SIN LLM Saige ER,

Mike Klopsic, Direct Examination 479

hour or hour and a half, so that the most time for observa-

tion is generally between 8:30 to 3 or 3:30, which is, we be-

lieve, the best time to study under most productive and

efficient hours. ;

Mr. Farley: You haven’t really answered his

Honor’s question. What he was asking was, don’t you

find that when one of the operatives on the machine

sees one of your time study men holding a stop watch

on him, doesn’t he slow up so that he won’t get too

much time, so that he won’t have to work too hard?

The Master: Or speed up.

Mr. Farley: How do you prevent that from hap-

pening?

A. Pardon me. I did not understand the question.

That we are not, because we are not paying piece work and

the men do not fear the time study men like they do where

a piece rate is paid, and to my knowledge no complaints

have been registered that I know of that any operation has

been excessively sped up.

Mr. Farley: Or slowed down?

A. Or slowed down.

Mr. Farley: Suppose you had any reason to ex-

pect that the (375) operator was trying to, let us say,

put one over on the time study man, Would you let it

go at that, or do you go back and check, or how do you

handle that situation. Surely that must have arisen.

Mr. Spohn: I understand the witness has said

there has been no complaints of any operation sped up

or slowed down.

Mr. Farley: It seems incredible to me.

Mr. Spohn: I admit it, but if that is the wit-

ness’ understanding of the situation, all right.

A. Now, no complaints that I know of, if you mean

to my department by men, because we don’t time study one

man if there should be, say, 15 men performing the same

operation. In our time study it must be included; all 15

men must be checked.

The Master: You don’t pick out one operator and

base a time study on that?

A. We do not carry around at the Ford Company so-

called speed experts or professional operators for time

I OP ENGI ANOS ICME D1 RN ARNE OR INLINE st EPL OLN MO IGT LO RE RUE DORR TE CAE i

480. Mike Klopsic, Direct Examination

study purposes. The man that performs the operation js

the man to be time studied, and not unbeknown to him.

The Master: Here with this particular study you

have just a single man performing the operation. At

the time this department was on Model A cami or

Model A cams were being produced in the department,

there were quite a number of machines and a number

of men running them, under ordinary conditions of

production?

A. Yes, sir.

The Master: In view of that fact would vou con-

sider that this time study made of the operations of one

man is reliable?

(376) A. The man who operated that machine, I would

say is reliable, because he operated machines, so I was told,

but he operated the machine quite efficiently.

The Master: When you take a time study, I pre-

sume you have done it yourself, you have taken time

studies where you have had as many as, say, 10 or 15

men operating the same machine during the day, and

clocked the different men. What do you ordinarily

find with respect to variations in the time of opera-

tions of the time taken by the various men to perform

the operations?

A. Oh, that is sometimes quite a variation.

The Master: What do you do in a ease like that

when you find variations? Do you take the average?

A. Average of all men.

The Master: Now, if you averaged 15 men, then,

for example, in the camshaft department during the

period when the Model A camshaft was being pro-

duced, in operating the Melling cam lathes, and if

Pillinger was one of the men operating at the time,

a time study of his operations might have shown con-

siderably different results from a time study of any-

one of the other 15 men?

A. Yes.

The Master: How much difference? Would you

say as to what the maximum variation would likely

be? Would it be 20 percent, 50 percent?

Ralph T. Myers, Direct Examination 481

A. No, it could not be more than 10 percent variation,

I don’t believe, in men. It could be, but it generally

isn’t.

_ * *. .

(431) Ratpu T. Myers, a witness called on behalf of

the Defendant, and having been first duly sworn, testified

as follows:

Direct Examination by Mr. Farley.

Q. What is your name, sir? A. Ralph T. Myers.

Q. And where do you live, Mr. Myers? A. I am liv-

ing at 10 Roosevelt Boulevard, Cohoes, New York. I just

moved down there.

Q. You are employed by the Ford Motor Company,

Mr. Myers? A. Yes, sir.

Q. In what capacity? A. I am foreman of the Green

Island plant.

Q. The Green Island plant is where? A. Green Island,

New York.

Q. That is near Albany? A. Seven miles from Al-

bany.

Q. Is that an assembly plant of the Ford Motor

Company? A. No, it is manufacturing.

Q. Manufacturing what? A. Manufacturing radia-

tors, roller bearings and car springs.

Q. Now, before you were assigned to the Green Island

plant of the defendant, the Ford Company, where were

you? A. Why, I worked out of the superintendent’s office

in the motor building the last year.

Q. And before that? (432) A. Department 410, the

camshaft department.

Q. You were general foreman of that department?

A. Yes, sir.

Q. How long have you been employed by the Ford

Company? A. I went there in 1913.

Q. Now, as general foreman of Department 410 you

were familiar with the various operations performed in

that department on the camshafts? A. Yes.

Q. And with the machining of the cams of the cam-

shafts? A. Yes, at that time, after I went in there.

482 Ralph T. Myers, Direct Examination

Q. What time did you go into that department as

foreman? A. I think I went in there in June, 1929, I]t

might have been 1928, but I know the month was June,

Q. At that time what type of shafts were they mak-

ing in the department? A. Model A.

Q. You went there shortly after Model A production

started? A. I believe they were making about 3,000 a

day.

Q. When you first went in the department? A. When

I went in the department.

Q. You remained as foreman of the department until

1936 or thereabouts? A. 1937, I think about Getober.

I went out of there in 1937.

Q. Now, when you first went into the department what

type of machines did you use in the department for the

machining of the cams of the camshafts? A. Well, we

had what they call the Melling lathes, or Walcott lathes,

(433) Q. Do you have a present recollection of the

average production of those lathes in machining the Model

A shafts? A. Well, approximately. I couldn’t say right

to the shaft.

Q. What did you count on getting? Was it part of

your duties as foreman to know what you could expect

per man in a general way per day? A. Yes, sir,

Q. On the various operations? A. Yes, sir.

Q. What did you count on getting per man in the

operation of the Walcott lathe? A. Well, if I remember

properly, I think a man run 2 lathes, and we used to fig-

ure,—we used to work for 500 in 8 hours.

The Master: Was that the top amount you were

working for, or is that what you expected to get?

A. The job was good for that if you didn’t have any

tool trouble and that man worked eight hours. If you

had tool trouble you would not get that many. We fig-

ured 50 an hour average working 8 hours in and out.

We used to work 3 shifts. If you had a good shift, why,

you got 30 or 35 an hour on that kind of machine. The

time study would show somewhere near what we got. I

am recalling the best I can.

Q. You spoke of the fact that machine trouble possibly

might cut down production. Did you have any particular

sent

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Ralph T. Myers, Direct Examination 483

amount of machine trouble with the Walcott lathe? A.

Yes, we did. They caused a lot of trouble.

Q. And do you remember how many maintenance men

you had to have in the department to keep those lathes

up, or did they come (434) under your immediate super-

vision? A. That come under a different foreman. He

handled the toolmakers of the building, but if I didn’t

get enough production it was up to me to holler for more

men, and I know we had on the average of 4 or 5 mechanics

on that one particular thing. Occasionally they would be

put on a spare job here and there, but it kept them pretty

busy on the cam lathes.

Q. Who was the foreman of the toolmakers? A. A

man by the name of Pillinger. You mean the cam lathes

or toolmakers?

Q. I was inquiring of the general foreman of the tool-

makers. A. John Schmid. Pillinger was the man under

him in that division.

Q. Who was in charge of repairs on the Walcott lathes?

A. Yes.

The Master: What were the difficulties you were

encountering on the Walcott lathes?

A. They had these overhead slides and the slides used

to stick. That was one of the main troubles and it was a

bad job on tools too, of course.

Q. You mean by that tools had to be replaced fre-

quently? <A. Yes.

(479) Q. Very well. Will you just go through the

series of steps up to the machining of the cam? A. This is

the rough forging, the way I receive it from the (480) forge

shop.

Q. That is Exhibit 28, that is the way the cams came

to you? A. Yes.

Q. What is the first operation done in your depart-

ment? A. The first operation, I machine these ends to

length.

Q. That smooths up the two ends? A. That is right.

In a Davis-Thompson machine we milled them.

Q. Then what came next? A. We centered them.

Q. By centering you mean you put this little hole on?

A. 60 degree included angle for centers of your lathe.

TTL PE ILE, LE RL ELLE AK VOIR EOIN YN ERIE IR ITIL: Bie SELF LOLS HBP EBA GE IM USO NERY Gy CSE

484 Ralph T. Myers, Direct Examination

Q. And that centering is done in a centering machine,

holes are drilled in there? A. Yes.

Q. What comes after the centering? A. Then we had

a straightening job on the center bearing. After we cen.

tered that we located from the rough bearing itself and

we centered that, and then from the center itself, this here

naturally will run out, and we straighten that job down

and naturally it pulls in the center line.

Q. That is to prepare the shaft for the next operation?

A. Yes,

Q. Which is what? A. Rough turn the center hear-

ing. At this point we can put no steady rest on that shaft

yet. What we have between centers there, we use an air

chuck on this.

Mr. Farley: I might state I am doing this so that

it will help you to understand these operations, and |

hope you will feel perfectly free to interrupt at any

point if you have a (481) question yourself.

The Master: I didn’t get this straightening oper-

ation straight.

A. Mill to length, the first operation we do, then we

center both ends at once. That is the second operation.

The third operation, the shaft is the same as this rough

forging, only it is milled off and centered. Then we

straighten between centers on a chuck press, and some-

times that is run out ¥ of an inch, and pull that shaft

down. We use a gauge, or a good man can use his eve,

Mr. Farley: The centers are put in for the pur-

pose of mounting this in the lathe.

The Master: I understand.

Q. And it is rotated on the centers, and if after those

centers are put in, have heen located by these two ends,

this part should be out of round or eccentric, then they

put it in the press and straighten it? A. We center on

these two bearings and pull these two bearings with this

bearing, what we would clean up.

Q. Now you have got your rough turn center bearings.

That is the operation you describe? A. Yes. Then the

next operation, we turn between cams.

Q. Let us see if we can give those numbers as we go

along. No. 1 was mill ends. 2 was center? A. Right.

Ralph T. Myers, Direct Examination 485

Q. 3 was straighten? A. Right.

Q. 4, turn center bearing? (482) A. Yes.

Q. Now you are to 5. A. I am going to change that

operation now. I am going to recess this shaft. We are

going to recess this. That is where we have got the length

of this bearing from our center out here and also the side

of that cam. This happens to be a V-8 shaft. We won’t

take that into consideration. Now, let’s see, we turn be-

tween cams before the recess, the recess before the cam.

Either one way or the other.

Q. I don’t think it makes any particular difference so

far as the issues here are concerned. A. I am almost sure

we recessed it first, but I might be wrong on that. We had

a tool here and if that cam was out of location we got the

side of that cam as well. With these ends tools you get

your bearings to length.

Q. Then the recess would be 6? A. Either one or the

other.

Q. The turns between cams would be 7, shall we say?

A. That is right.

Q. Then what after that? A. Then we come down

here and we turned, I think we turned the gear post.

Q. That would be 8? A. Maybe we come back and

turned these two bearings off the center bearing. Now,

whether we did that before the post end, that is not just

clear to me. This is one operation, rough-turning this post

and facing here and turn that O. D. there. We can turn

that O. D. when we turned this flange. That takes the

steady rest.

(483) @. You are referring then to Exhibit 29. Now,

what after what you just described? A. We have to get

down further. Well, that is all right.

Q. What would be the next operation? A. Taking

for granted that these are turned now. We had a short hole

here. We call it a construction hole. The hole didn’t

mean anything to the job. We put that hole in there, lo-

eating from a certain cam. That gave us our cam, our

rough ridge here before it went into the cam mill or Mell-

ing lathe, locating from that pin. That would put it in posi-

tion to clean up properly.

Q. Then after drilling that hole, what was the next

thing that you did? A. It went into the cam lathe.

486 Victor F. Marentette, Direct Examination

Q. Did you perform any operation on it? A. Pardon!

Yes. When we had the straightening job after this bottom

cam and recess here, we had to straighten that.

Q. What was the purpose or function of that straight-

ening operation? A. We used to go after these pretty

rough and sprung this shaft out of line. We had a steady

rest here and on the centers here and we would throw that

shaft out 16 or ninety-thousandths and straighten that out

to get the bottom cams running true to line it up properly

for your cam mill or Melling lathes.

Q. Did that have anything to do with the operation as

performed in the Melling lathe? Was it in any Way neces-

sary or unnecessary? A. You had to line this up or too

many cams didn’t clean up.

Q. After that operation of straightening was per-

formed on those (484) shafts it is ready then for the

turning operation? A. That is right.

Q. That was the A shaft? A. Yes.

Q. Was that practice followed all during your time as

foreman? A. As far as I know, yes.

(487) Victor F. Marenrerre, a witness called on be-

half of the Defendant, and having been first duly sworn,

testified as follows:

Direct Examination by Mr. Farley.

Q. Your name, please? A. Victor Marentette.

(488) Q. And where do you live, Mr. Marentette? A.

12731 Lauder.

Q. That is where? A. On the West Side.

Q. Detroit? A. Yes, sir.

Q. You are employed by the Ford Motor Company?

A. Yes, sir.

Q. How long have you been employed by them, Mr.

Marentette? A. 26 years.

Q. What are your present duties at the Ford Com-

pany? A. I am a lay-out man on floor space and so on in

the time study department.

Q. You are in the time study department? <A. Yes,

sir.

Q. Under Mr. Klopsic? <A. Yes, sir.

Victor F. Marentette, Direct Examination 487

_ How long have you been doing time study work

at the Ford plant? A. Approximately 8 or 9 years. —

Q. Did you ever do any time study work at the High-

land Park plant of the Ford Company? A. Yes, sir. —

Q. When did you start doing that work at the High-

land Park plant? A. It must have been around 1916 to

15.

” Q. How long did you continue to do that work there?

A. Until I was transferred to the Rouge plant, which I

think was in 1925, 1924 or 1925.

Q. Now, in the time study work that you did at the

Highland Park plant, did you make those time studies with

the aid of a stop-watch (489) or not? A. Yes, sir.

Q. You used a stop-watch on all time studies? <A.

Yes, sir.

Q. Do you have any present recollection of having

made any time study on the cam shafts? A. Yes, sir; I

made the time studies running from the Series A until the

last one I made up, which I believe nine changes were

made, eight or nine changes were made on that cam shaft,

and I was the one that made those changes.

Q. And I show you a certain original here that is

marked Exhibit N, and ask you if you can tell what that

is? A. Well, this was the change that I made in respect

to the 12th and 13th operation.

Q. What is that? Is that a time study or what? A.

It was time study, yes, sir.

Q. By whom was it made, do you know? A. By me.

Q. Now, I call your attention to the initials V. F. M.

on the 2nd sheet of that, and ask you what is the meaning

of those initials? A. That meant that we had to sign all

operation sheets with our own initials.

Q. What do the initials V. F. M. stand for? A. Vic-

tor F. Marentette.

Q. That is yourself? A. Yes, sir.

Q. How about the time appearing on that? First let

me ask you this: Did you make the time study Exhibit

Nt Was that made (490) by you personally? <A. Yes,

sir.

Q. Now, was that time study made by you with a

stop-watch or was it merely by talking to the foreman,

the operators and getting the times? A. That was made

by a stop-watch.

488 Victor F, Marentette, Direct Examination

Q. What was your practice in making time studies

with a stop-watch? How long did you observe the job?

A. I should judge approximately 2 hours at that time that

I made this change in this straightening operation and the

turning, turn cam on the lathe.

Q. Do you know anything about the type of machine

that was used for turning the cam? <A. That was the

Walcott machine.

Q. What operation is that on your time study there?

A. That is operation 13.

Q. Now, as to the date appearing, 10-8-24, did you

have anything to do with the placing of that date on there?

A. Yes, sir; any time we made a change on an operation

sheet we put the date on, the day it was changed.

Q. That date was put on there by you 10-8-24, on

the 8th day of October, 1924? A. Yes, sir.

Q. Now, what is the meaning of the inscription

‘Series I,’’ or ‘‘1’’? A. That is Series I. We started

on the alphabet, A, to whatever change we had in the

previous operation, whatever change we made, it is a

transposition of the operation of whatever we made the

change on. It is hard to tell. May be additional (491)

operations, or probably minus an operation.

Q. I show you a notebook that was introduced in

evidence here as Exhibit L, and will ask you if you ever

seen that book? <A. No, sir; I never seen that book.

Q. Now, will you refer to the pages that are marked

L-1, and state whether or not you recognize that informa-

tion contained there on those pages? A. The shape cams

on operation 12 is the only thing I can see.

Q. Will you compare the various things stated here

in these notes with your operation sheet Exhibit N? You

might as you go along, Mr. Marentette, just read out those

things? A. You want the operation read out? Cut to

length, .12, .48.

Q. You find it is on both Exhibit N and sheets Ex-

hibit L? A. Yes, sir. Straighten forge 1.24. He has got

heat and forge, 1.24. Cold trim, .48. Air heat, 1.72. A

snag at 2.22. Center both ends at .2. Rough-straighten,

8 and rough turn center bearing .666. Turn between

cams, .75. Straddle face flange, .60. Rough turn gear

box, .60. Drill letter L, .24. Rough turn end bearings, .60.

Rough grind center bearing, .333 and straighten—I have

OO EE eee

Victor F. Marentette, Direct Examination 489

a straightening operation of .5 and they don’t show a .5

here. It is a shape cams. ;

Q. What is operation straighten on your time sheet,

Exhibit N, what is the number of that? A. No. 12.

Q. Now, as you were reading those and comparing

those, do you find the same designation as far as letter

or number of each operation is concerned on each? A.

That is O.K., outside of this operation he

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Appendix — Ex parte Phillips · 320 U.S. 714 | Frix