# Appendix — Ex parte Phillips > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385610_0072%3A04 ## Record - **Collection:** Supreme Court brief - **Document type:** Appendix - **Published:** January 1, 1943 - **Citation:** 320 U.S. 714 ## Text eel .+30 APR 20 1943 | LES ELMSEE CRBPI. “OLERK B Supreme Gourt af the United States OCTOBER TERM, 1942 945-946 &989 FORD MOTOR COMPANY, Petitioner, vs. THE GORDON FORM LATHE COMPANY, Respondent. Transcript of Record On Petition for Writ of Certiorari to the United States Circuit Court of Appeals for the Sixth Circuit VOLUME IV. Plaintiff's Exhibits, Defendant’s Exhibits and Main Record Exhibits. I. Joszrn Farwey, 1664 National Bank Bldg., Detroit, Michigan, Coorzr, Kerr & Dunnam, “Woolworth Bldg., 233 Broadway, New York, New York, Attorneys for Petitioner. Lecuer, MicnarLt, Wuyte & Spoun, 110 East Wisconsin Ave., Milwaukee, Wisconsin, Ricuey & Watts, Union Commerce Bldg., Cleveland, Ohio, 7 Swan, Frye & Harpesty, Ford Bldg., Detroit, Michigan, Attorneys for Respondent. Eee 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. Equity No. 4564. AppEAL F'RoMm Tue District Court or THE UniTEp States, Eastern District or MIcHIGAN, SovuTHERN Division. TRANSCRIPT OF RECORD. VOLUME IV. Plaintiff’s Exhibits, Defendant’s Exhibits and Main Record Exhibits. LecHer, MicnaEL, Wuyte & Spoun, 110 East Wisconsin Ave., Milwaukee, Wisconsin, Ricney & Warts, Union Commerce Bldg., Cleveland, Ohio, Swan, Frye & Harpesty, Ford Bldg., Detroit, Michigan, Attorneys for Plaintiff-Appellant and Cross-Appellee. Bopman, Lonciey, Bociz, Mippteton & Far ey, 1400 Buhl Bldg., Detroit, Michigan, Cooprr, Kerr & DunHam, Woolworth Bldg., 233 Broadway, New York, New York, Attorneys for Defendant-Appellee and Cross-Appellant. a al i clas lle in cams Caption INDEX. VOLUME I. Trial Papers, Plaintiff’s Record and Part of Defendant’s Record. coor eoeoeeeo eee eee eeeeeeeeereeeeeereereeeeeeeeeeee eee DS ON ES. oo n.n cd 000 800 50etuenweesesuesees¢esea Report of Special Master...........: see cece eeeeeeeeeees i. IL. III. IV. Nature of Invention and History of Litigation and of Defendant’s Use of Machinery...............+.- Cr Or ee a pesecesensecesteutess Accounting Period, and Produciion of Shafts on In- fringing Machines: Question of Notice............ A. Dagheting CF PestOE. cc ccscccccccsccesccecses B. Production of Camshafts and End of Accounting PUNE sc ccvnccccececevevecsvsestceveveseeces A. Profits from Infringement...............-..+. 1. Standard of Comparison...... peésnenivesne a. Standard for Model A Shaft............ (1) Pioch and Modified Walcott Machines (2) Westinghouse Lathe ............... Gap PONS Ce BE. oc cccccccsccesere b. Standard for Tractor Shaft............. e. Effect of Choice of Incorrect Standard... 2. Savings from Use of Infringing Machines... a. Savings or Loss in Other Operations: PE. co bcacacdcusuduassecures b. Savings in Cam-Roughing Operation..... (1) Direct Labor Savings............... I a — (a) Speeds of Production on Model T GE ccc vccvessvucvekaqitedens (b) Speeds of Production on Model A GOES icc vcusdcesreesvavcecees (c) Speeds of Production on Tractor GOES cccaccesvisecousedereses (2) Other Savings: Overhead or Burden (3) Offset of Loss from Scrapping Shap- GD ccccesscevesvoreevesseedeerecns 3. Apportionment of Profits.........--+++++++ V. Damages: Reasonable Royalty.........++++++++++ A. Conditions to Assessment of Reasonable Royalty B. Amount of Royalty...........seeeeeeeeeeeeee VI. Questions of Clean Hands and of Increase of Re- COVETY occccccccecvecccccccesecvcesssouccsesvess A, Chonm Hlamdls 2c ccccccccecccccvcceccesccceness B. Increase of Recovery.........2.:+eeeeeeeeeees ,3) = rr errr ry rey TT terse Schedule A. Production of Camshafts on Infringing Ma- GMOS cccccccevncesccesveccasadvecdevesesceensves Schedule B. Proration of Production on Camshafts be- tween Pioch and Walcott Machines, May 14, 1930 to March 15, 1931, inclusive. ............::seecereceess Schedule C. Comparative Costs on Cam-Roughing Op- eration with Walcott Lathes and Standards of Com- BOOEGOM, 6 oo cc ccccvscerveneDeiretecstreocdavvisyes: Clerk’s Notice of the Filing of the Master’s Report........ Plaintiff’s Objections to Master’s Report............-+++ Exceptions of Defendant to the Report of the Special Master Motion for Action Upon Master’s Report and Objections TeTetO oc ccccvccvcvcvceseveccccsescevseccesesovess AGidavit of Todid La, MekeO. oc cccccccccccccecssvescess 43 44 46 47 103 111 111 oS ee ¥ t ‘ Bahatialla FT nc ccccvcccccesecvcccossesesescsovccosess Rdleodlln TE noc cccccccccscvcessccvecssesessusseseses Sahaliatn TEE a vcccccvcccscccesevesesrescssssvesesees Galetiatin TY ccccccccccccovesvevesecrecsevececceeses 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- 2 Ae Me PPrrrerrrrr: TTT TrITTITTTrTti ieee Exhibit 7. Operation Sheet No. 1.-..........-++0000- Operation Sheet No. 2.........:eeeeeeeees Operation Sheet No. 3...........-e ee eens Operation Sheet No. 4............20ee00e Operation Sheet No. 5.........--eeeeeeeee Exhibit 10. Material Price Card No. 1...........++..- Material Price Card No. 2...........--0- Exhibit 11. Computation of Certain Items of Cost of Gordon Lathe Operation on Tractor Cam- GED svcccsuccrssescuveccecectocceeeses Exhibit 12. Computation of Certain Costs Invoived 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............2000seeee 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, OEE who cbdknceuedees) ede inetacdtedeentesensenceees Exhibit C—Defendant’s Further Statement of Account, RG TRUONG Gh, DOE 006 koveveccccevcdcvonesvesees Ptf. Rec. Vol. III from page 34, line 26 to page 37, line 3 inclusive of Typewritten Transcript (Mr. Spohn).. Ilr 161 166 169 193 TRANSCRIPT OF TESTIMONY (Designated by both Plaintiff and Defendant). Appearances ......eeeeeeeeeereesressnsessesseser esses: PLAINTIFF’S RECORD. Frep M. Hovis (Defendant’s Witness) : Cross Examination by Mr. Spohn......--+++++s++es+: Cross Examination by Mr. Farley......-++++++++++++* Re-Cross Examination by Mr. Spohn......--+++++++++5 Re-Cross Examination by Mr. Farley.....---++++++++: Re-Cross Examination by Mr. Spohn......--+++++++++: Harotp M. Woeurte (Defendant’s Witness) : Cross Examination by Mr. Spohn......--+++++++e+ee: Re-Cross Examination by Mr. Spohn......--++++++++++ Cross Examination by Mr. Spohn.....--..++-+++eeeees Re-Direct Examination by Mr. Farley.......+++++++++: Re-Cross Examination by Mr. Spohn........++-++++++: Re-Direct Examination by Mr. Farley......+-++++++++> Frep M. Hovis (Recalled) : Cross Examination by Mr. Spohn......--+++++eeereees Harotp M. Woeurze (Recalled) : Cross Examination by Mr. Spohn.......--+-++eeeeeees Cross Examination by Mr. Farley eoeoeceeveeveeeeveeev eee e @ Norman R. Scovity (Defendant’s Witness) : Direct Examination by Mr. Farley Cross Examination by Mr. Spohn eeovoeeveovoeveeevoeeeoe oo eee? Topp L. Morse (Plaintiff’s Witness) : - Direct Examination by Mr. Spohn “Cross Examination by Mr. Farley........-+++++++++++ Re-Direct Examination by Mr. Spohn Re-Cross Examination by Mr. Farley IV «Linh LI 2,2: AE OI OE To as ff, % Cuar.es Gorpon (Plaintiff’s Witness) : Direct Examination by Mr. Spohn............-++++++5 275 Cross Examination by Mr. Farley........-+-++++++++ 280 Re-Direct Examination by Mr. Spohn...........--+++ 282 Cross Examination by Mr. Farley............+++++++5 283 Lyze E. Broventon (Plaintiff’s Witness) : Direct* Examination by Mr. Spohn...........+++++++5 291 Howarp Jongs (Plaintiff’s Witness) : Direct Examination by Mr. Spohn..............e+++55 296 Cross Examination by Mr. Farley.........++++++++++5 300 Re-Direct Examination by Mr. Spohn............+++++ 302 Re-Cross Examination by Mr. Farley...........+++++: 303 Muues G. Stonixer (Plaintiff’s Witness) : Direct Examination by Mr. Spohn............+eeeee+5 304 Cross Examination by Mr. Farley...........++++se++ 308 DEFENDANT’S RECORD. Cares Gorpon (Plaintiff’s Witness) : Cross Examination by Mr. Farley............s++eeee 312 Topp L. Morse (Recalled) (Plaintiff’s Witness) : Cross Examination by Mr. Farley..........-..++eeees 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. Suawxey (Defendant’s Witness) : Direct Examination by Mr. Farley.......---+++++++++: Spencer W. Lipsy (Defendant’s Witness) : Direct Examination by Mr. Farley........-++++++++++: Cross Examination by Mr. Spohn.........--++++++0++5 Re-Direct Examination by Mr. Farley........-+++++++: Re-Cross Examination by Mr. Spohn.........++++++++> Morris E. Suawkey (Recalled) (Defendant’s Witness) : Direct Examination by Mr. Farley........-++++++++++5 Mixes Kuopsic (Defendant’s Witness) : Direct Examination by Mr. Farley.........++++++++++5 Rautpu T. Myers (Defendant’s Witness) : Direct Examination by Mr. Farley..........++++++++++ Victor F. Marentette (Defendant’s Witness) : Direct Examination by Mr. Farley.........-+++++++++5 Cross Examination by Mr. Spohn.........-.+++++++++ A. M. Wiset (Defendant’s Witness) : Re-Direct Examination by Mr. Farley...........+-++++ Cuarzes Gorpon (Plaintiff’s Witness) : Cross Examination by Mr. Farley TrroporE R. Dau (Defendant’s Witness) : Direct Examination by Mr. Farley Grorce W. Smiru, Jr. (Defendant’s Witness) : Direct Examination by Mr. Farley Apert Aprekar (Defendant’s Witness) : Direct Examination by Mr. Farley............+++0++0+ Cross Examination by Mr. Michael.................-- Re-Direct Examination by Mr. Farley eee eee eee ewe eeene VI i oR err tease eT Sse sian é : i j i ; Wiuiam D. Hunt (Defendant’s Witness) : Direct Examination by Mr. Farley.........---+++++++> Cross Examination by Mr. Spohn........-+--++++++++5 Re-Direct Examination by Mr. Farley.........+-+-+++++ Re-Cross Examination by Mr. Spohn..........-+++++++ Re-Direct Examination by Mr. Farley..........-++++++ Henry G. Pruincer (Defendant’s Witness) : Direct Examination by Mr. Farley.........+++++++++++ Cross Examination by Mr. Spohn............+++++0+55 Re-Direct Examination by Mr. Farley.........+..+++++ Re-Cross Examination by Mr. Spohn............+.++++ Joun L. Scumint (Defendant’s Witness) : Direct Examination by Mr. Farley..........6+++00+45+ Cross Examination by Mr. Spohn............0+++++0+5 Rupy Exruarp Herxtorz (Defendant’s Witness) : Direct Examination by Mr. Farley............65-00e Wu F. Piocn (Defendant’s Witness) : Direct Examination by Mr. Farley............-+.0005: Cross Examination by Mr. Michael..................+ Re-Direct Examination by Mr. Farley..............-. Re-Cross Examination by Mr. Michael................ Re-Direct Examination by Mr. Farley............+.+++ Nrets Borsen (Defendant’s Witness) : Direct Examination by Mr. Farley...............++++: Auanson P. Brusu (Defendant’s Witness) : Direct Examination by Mr. Farley.............-.0-++: Cross Examination by Mr. Michael.................-- Re-Direct Examination by Mr. Farley Re-Cross Examination by Mr. Michael eee ee eee eweeeeaee VII Ervin Franky (Defendant’s Witness) : Direct Examination by Mr. Farley......-+-++se++seees 825 Cross Examination by Mr. Spohn.......-++++eeereeees 843 Re-Direct Examination by Mr. Farley......---++++++++ 846 Re-Cross Examination by Mr. Spohn......----s++++++5 846 Re-Direct Examination by Mr. Farley.....--+++++++++: 846 Re-Cross Examination by Mr. Spohn......---++++++++5 847 Josep Henry Acuten (Defendant’s Witness) : Direct Examination by Mr. Farley........+-+++++eee++ 847 Cross Examination by Mr. Michael.........+++++++0+> 856 Re-Direct Examination by Mr. Farley.......+-+++++++5 859 Frep Hovis (Recalled) (Defendant’s Witness) : Re-Direct Examination by Mr. Farley.......-++++++++: 863 Re-Cross Examination by Mr. Spohn........-++++++++5 869 Re-Direct Examination by Mr. Farley.......+-+-+++++5 874 Re-Cross Examination by Mr. Spohn.......-+++++++++5 877 Re-Direct Examination by Mr. Farley........+++++++++ 881 Re-Cross Examination by Mr. Spohn.........++++++++5 882 VIII VOLUME III. Defendant’s Record (Continued), Appendix to Record and Appeal Papers. Harotp W. Hoceian (Defendant’s Witness) : j 3 Direct Examination by Mr. Farley...-.--+++++++0+++*: 883 Re-Direct Examination by Mr. Farley.....-+-++++++++> 889 ' Pierce Atpert Weyt (Defendant’s Witness) : : Direct Examination by Mr. Farley.....----+++++ses+00° 891 Cross Examination by Mr. Michael......-.-+++++++++: 911 i 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...-..+-+++e++++eee* 925 R Cross Examination by Mr. Michael.......--+++++++++5 932 Re-Direct Examination by Mr. Farley....-.--++++++++* 935 Axpert Aprekar (Recalled) (Defendant’s Witness) : Re-Direct Examination by Mr. Farley.....--+--+++++++> 936 Re-Cross Examination by Mr. Spohn......---+++s+++% 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. Joseru Fartey (Defendant’s Witness) : Direct Testimony ......--:ee cee eeeere reece eerreeees 951 Cross Examination by Mr. Michael.........--++++++++: 956 Joun W. Micuaet (Plaintiff’s Witness) : Direct Testimony .......-:eeeeee creer eee eeeeeeees 962 Cross Examination by Mr. Farley..........+-+++++++5 965 Norman R. Scovitzt (Defendant’s Witness) : Re-Direct Examination by Mr. Farley........-++++++++ 971 Ix cee le ; Harotp M. Woeurte (Defendant’s Witness) : Re-Direct Examination by Mr. Farley.....---+-+++++*: 980 Wituia F. Proc (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.......-.--+-+++- 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. Wornrue (Defendant’s Witness) : Re-Direct Examination by Mr. Farley......---+++++++: 1065 Re-Cross Examination by Mr. Spohn......---++++++++: 1071 Re-Direct Examination by Mr. Farley.......-----+++++ 1080 Donatp M. Russevt (Defendant’s Witness) : Direct Examination by Mr. Farley.......-----+++++++: 1082 Harotp M. Worurwe (Defendant’s Witness) : Examination by the Master........----++eeeeeeeeeees 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. Farley...........--+++: 1126 Re-Cross Examination by Mr. Michael............-+-- 1127 Re-Direct Examination by Mr. Farley..........-+++++: 1129 x Henwine Ourn (Defendant’s Witness) : Direct Examination by Mr. Farley........-+--+++++++: Cross Examination by Mr. Michael..........--++-+++++ Re-)irect Examination by Mr. Farley........---+++++: Cuar.es Hasovicu (Defendant’s Witness) : Direct Examination by Mr. Farley..........-+-+++++55 Cross Examination by Mr. Michael...........++++++++ Aupert Kipta (Defendant’s Witness) : Direct Examination by Mr. Farley......-..-..+++++++5 Cross Examination by Mr. Michael............-.++5++ Wuuiam D. Hunt (Recalled) (Defendant’s Witness) : Re-Direct Examination by Mr. Farley............+++: Re-Cross Examination by Mr. Michael............+++- Re-Direct Examination by Mr. Farley.............+.+: Cuar.es Gorvon (Recalled) (Plaintiff’s Witness) : Re-Direct Examination by Mr. Michael.............+++ Re-Cross Examination by Mr. Farley............06++: Topp L. Morse (Recalled) (Plaintiff’s Witness) : Re-Direct Examination by Mr. Spohn Re-Cross Examination by Mr. Farley Re-Direct Examination by Mr. Spohn eeeereeeeereseeeteee eee eee ee ee eeeenne eeoeereereeeeeeeeere 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. Scuvuttz: Q. 1, page 132, to and including Q. 22 and Answer, page 136: Direct Examination by Mr. Earl.......-++++e0ees 1261 Q. 45, page 140, to and including Q. 72 and Answer 145: Direct Examination by Mr. Earl......---+++eeeees 1264 Bert WEISEL: Q. 1, page 190, to and including Q. 55 and Answer, page Direct Examination by Mr. Earl......-++++++e+e+* 1268 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: Cross Examination by Mr. Dennett........++-++++ 1274 XQs. 115 and 116 and Answers, page 210: Cross Examination by Mr. Dennett........-+++++- XQ. 121, page 211, to and including RDQ. 150 and An- swer, page 219: Cross Examination by Mr. Dennett........+++++++ Re-Direct Examination by Mr. Earl.....-.--+++++> RDQs. 153 and 154 and Answers, page 220: Re-Direct Examination by Mr. Earl.....-.-.-.+-- RDQ. 166, page 222, to and including RDQ. 177 and An- swer, page 224: _ Re-Direct Examination by Mr. Earl......--++-++++ xi 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..........+.+++5+ 1286 Cross Examination by Mr. Dennett..........++++- 1289 Re-Direct Examination by Mr. Earl..........+++- 1291 WittiM CunNINGHAM: Q. 1, page 288, to and including Q. 16 and Answer, page 293 : Direct Examination by Mr. EFarl.........+.++++06+ 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 Cuar_Les 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 inner Master’s Report in National Tube Company v. Mark et al., Equity No. 4360.......:0eeeeeeeerereceereesreesees 1305 Proceedings in Court........-eeeeeeeeeeeeeereeereees 1305 Proceedings Before the Master.......++++++eserrrrrrs 1306 Conceded Facts ........ceeeceeeeeeeereeceerereeeess 1307 The 1909 Order........ccceeeeeeeeeereeeeeeeetereees 1308 Answers to Questions Referred......-.-+++++e+eeeees 1309 Gains and Profits.........-eeeeeeeeeeeeeeeeeereeeees 1310 Savings .....cecceccccccccvccccceescecssecceessees 1312 Advantages Derived by Defendant From and Through Said Infringement .......-.eeeeeereeeeeeeeereees 1315 License ..cccccccccccccccccccccsccccccesesececeecees 1319 Special Damages ......-seeceeeeeeeeeeersseeeeeeeees 1321 Damages .....scceeeeececrcncreeerenenererseceseess 1322 Interest on the Award........-:ceeeee rere eeeeeeeeees 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. TEED Lcocccccovcouseveccescescoseecusescosesesesses 1333 Special Master’s Report on Accounting of Profits...... 1333 Master’s Opinion and Order.....--.--+++eereerrreees 1336 Special Master’s Opinion and Order on Standard of Comparison .......-.eeeeeeeeeeceeeeeeeeeereeees 1340 Opinion of the Cireuit Court of Appeals for the Sixth Circuit in Gordon Form Lathe Co. v. Walcott Machine Co., No. 5511, Decided April 12, 1929, 32 Fed. (2d) SB... ccccces 1344 Opinion of the Cireuit 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 .......6:0: cece cece eee e eee ener ee seeees 1365 Notice of Appeal of Plaintiff... ......-6-eeeeeeee reer reese 1369 Bond on Appeal of Plaintiff. ........6-++eeeeeeeee re eeeees 1370 Plaintiff’s Statement of Points To Be Urged on Appeal.... 1371 Notice of Appeal of Defendant........---eeeeeeeeeeeeeees 1373 Bond on Appeal of Defendant..........-+see cere ereeeeees 1375 Defendant’s Statement of Points To Be Relied On Upon Appeal under Rule 75(d) of Rules of Civil Procedure... 1376 Stipulation Re Waiver of Supersedeas Bowd. .ccccveseccees 1379 Stipulation Concerning Number of Copies of Record to be Filed on Appeal.........ceceee ee eeeereeeeeenenneees 1379 Stipulation Re Exhibits and Transcript of Record on Appeal in Gordon v. Ford, Nos. T363-4...... 0660 e eee e eee eens 1380 Order Re Exhibits and Transcript of Record on Appeal in Gordon v. Ford, Nos. T363-4.....6 00 ce eee ee eneeeeene 1381 Stipulated Designation of Contents of Plaintiff-Defendant Composite Record on Appeal. ........eeeeeeeeeeeenees 1382 Stipulation Extending Time to July 29, 1941........0.00es 1399 Order Extending Time to July 29, 1941. .... 6.600 e cece eeees 1399 Stipulation (filed July 21, 1941) Extending Time to Septem- ber 27, 1941, and Approval of U. S. Cireuit Court of Ap- Peas ....ccccceeeecereeeeeeeeeeeeeereeneeeeenesees 1400 Stipulation (filed September 24, 1941) Extending Time to October 27, 1941.......ccceecee eee eeeereeeweneeeeees 1401 Stipulation Extending Time to November 26, 1941, and Approval of U. 8. Cireuit Court of Appeals............ 140° Certificate of Clerk. ......cccccscccccccccccccccessccseees 1403 XV EXHIBIT E-1. 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- dohaw BOED co ccccccecevescsevescecvesssasencores 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 Exhibit A) .........ceeeeee cece rene eeeeeeenees 1408-9 Cost Summary Card for T-410 Camshaft covering January to June 1923.........e eee cece reer eeees 1410 Cost Summary Card for T-410 Camshaft covering July to November 1923......-++.+eeeeeeeeereeees 1411 Cost Summary Card for T-410 Camshaft covering January to June 1924.........02 cece cere reer eres 1412 Cost Summary Card for T-410 Camshaft covering July to November 1924.......---+++eeeeeerereeee 1413 Cost Summary Card for T-410 Camshaft covering April to September 1925.....-.-++-+eesereerereee 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.........--+++++++ 1416-17 Cost Summary Card for T-410 Camshaft covering November 1928 ......--cccecccccceccecscccvccers 1418 Cost Summary Card for T-410 Camshaft covering Gatahn TGS oo cccccucuccvccscsescesvcccsusesess 1419 Cost Summary Card for A-6250 Camshaft covering August 1928 to January 1929........---++++e+es 1420-21 XVII ExHIBIT PaGE F-10. Cost Summary Card for A-6250 Camshaft covering December 1927 to June 1928....---+++eererrreee 1422-23 F-11. Cost Summary Card for F-446 Camshaft covering April to September WE. oo covccsedooverssucussane 1424 F-12. Cost Summary Card for F-446 Camshaft covering October to November 1925....--.+++errreeerrrces 1425 F-13. Cost Summary Card for F-446 Camshaft covering January 1926 to March 1928.....-+--++eerrerees 1426-27 H-1. Production Cost Record for T-410 Camshaft cover- ing November 1927....-..-+sseerrsrreeerertesee® 1428 L-1 to L-3. Pages from note book kept by witness Spencer We LIBBY cccccccccercvcvcvcesevrsonsecesoeses 1429-31 M. Operation Sheet compiled from notations appearing in Exhibit L. (Same as Exhibit 13 attached to Ex- Bilt C) .cccccccvccccccccsccesececsocvecceress 1432-33 N. Operation Sheet for T-410 Camshaft dated 10-8-24. (Same as Exhibit 14 attached to Exhibit C)..... 1434-35 O. Correspondence between Ford Motor Company and Jackson Shaper Company....---+++ererrrereees 1436-63 P-1 to P-14. Ford Work Orders for Repairs to Melling Tales ovcccccccvevcavcvecvesseuseseesouseuees 1464-70 Q. Inventory card covering Ford Camshaft Shaper HIOTOG 20. cee ccrecccccccccccencccccccccssreeess 1471 R. Inventory card covering Ford Camshaft Shaper HIIGDB 2. cccccceccccccccececorsccrecscescerres 1472 Ss. Inventory card covering Ford Camshaft Shaper BIBMGS on cccccccccccvccccvccsecsccvcccosssoress 1473 W-1 to W-14. Study of operation of Melling Lathes... .1474-87 X-1. Productive Labor and Overhead for Department 410 BEEN. on cccdiavesadtdadenseeel Eeesneeeesaenenus 1488 X-2, Same—continued to 2-28-31 ....-.+-eeeeereeereees 1489 X-3. Productive Labor and Overhead for F-446 Camshaft Machining 6-1-25 to 3-31-28 ....----seereeeeereeee 1490 XVIII EXHIBIT PaGE Y-1. Inventory Card covering Melling Cam Turning I Lathe Ford #36592 .........sssceeeeeeenerees 1491-92 : Z-3. Plaintiff’s statement of account.............+. 1493-1513 6 2 7-4. Plaintiff’s schedule showing computation of depre- i ciation on Model T type cam shapers and Melling fi Cams LOURGS ccccccccccscccccccceseccceccescens 1514-16 ; Z-5. Plaintiff’s compilation of depreciation cost on Model t T Cam Shapers and Melling Cam Lathes......... 1517-18 } Z-6. Plaintiff’s computation of Maintenance and Over- t haul Expense ........-ccccccccsecccsssccsscees 1519-22 Z-7. Pilaintiff’s computation of Cost of Tools......... 1523-24 CC. Telegram dated 11-18-30 addressed to Ford Motor COMBPAMY cccccccccccccccccccvcerccerecscesevers 1525 DD. Telegram dated 11-18-30 ........::scee cece eeeees 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, 1928 to Herman W. Melling.............+-0005: 1558-66 217 to 222. Ford Purchase Orders for Melling Cam Turn- ing Lathes ......ccccccccccccessccccccccsscees 1567-73 232. White Motor Company Departmental Correspond- ene Gated TE aitbe cs vcccescassvsecveccvisvesoes 1574 233. Same—dated 1-29-30 ........ccccccccccvccccceres 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.... 15 7 nh i i came pas edRe eddie ne eden ee 1577 ExHIBIT PaGE 957. Ford assembly print showing attachment for use in shaping Model A Camshafts......---+eeeeeerereee 1578 958. Same—sub-assembly ....-----+srerrrrrrerrt 1579 259. Same—showing removal of tools numbers 1 and 5.. 1580 263. Sketch drawn by witness Piodhh. .ccccccccceeseece 1581 964. Letter of Mr. Pioch to Mr. Farley dated 11-2-38.... 1582 266. Computation by witness Pioch.....ccccccsecsccres 1583 968. Print Camshaft Shaping Machine Oberhoffken de- sign—layout showing ‘‘tools to cut in both direc- tions—speeds being equal’’....------s++errrrrrt* 1584 269. Same—Layout to show individual relief of tools on weturn StTOKe ....cccccccccvcccscccscsesesrseer® 1585 972, Sketch by witness Brush showing cutting action of Shaper Tool ......e-eecercercscressrrseserree® 1586 973. Same—showing cutting action of Melling Tool..... 1587 976. Brush sketch of two way cuts...-.-+-+++rrrrerees 1588 981. Operation Sheet for 1-410 Camshaft dated 12-21-27. (Same as Exhibit 15 in Exhibit C).....-...+++-- 1589-90 289 (1 to 10). Engineering Record of T-410 Camshaft, Forging Size ......--.e+eeeceerseeecrestees 1591-95 290 (1 to 13). Same—Finished Size ....-----+-+++> 1596-1602 291 (1 to 3). Engineering Record for A-6250 Camshaft, Forging Size ......--eeseeeceeeereereeeresrees 1602-03 292 (1 to 4). Same—Finished Size .....--+++++e++: 1604-05 993. Ford print 9-Z-32, Shaper WOE. ccncsnecestusweese 1606 294, Ford print 9-Z-215, Melling Wad. cccccocesdsesees 1607 995. Letter of witness Pioch dated 2-1-39 re: Surface Speeds of Shaper Tools .....--+-+++++++++r0+' 1608-09 296. Sample Ford Purchase Qwer 2. cccccccccsceccees 1610 997. Print of Ford Camshaft A-6250-Al......-----+++- 1611 Se AON RS + AES EXHIBIT PaGE 298 (1 to 6). Engineering Record Fordson Tractor Cam- shaft, Forging and Finished Size..........--.-. 1612-14 299. Summary of Ford Tractor Production............ 1615 301. Defendant’s substitute pages for plaintiff’s state- ment of account Exhibit Z-3 making 3 changes. . . .1616-22 302. Same—6 changes .......--.eeeeeeeceeereceeees 1623-29 304. Pages from Ford Parts Price List, effective 2-1-31 cde recasecevesssveuscedddavasseneeveuseees ss 1630-33 305. Defendant’s computation of Comparative Direct Labor Costs on F-446 Tractor Camshafts........ 1634-35 306. International Harvester Company Requisition for Gordon Lathe dated 11-20-19...........--.eeeeee 1636 307. International Harvester Company order for Gordon Lathe dated 11-24-19 .........ccceeccccecceeceees 1637 308. International Harvester Company installation of machinery card covering ‘‘Gordon Std. Cam Turn- ing Machine”? ..........eeeeceeceeeeseereceeeess 1638 309. International Harvester Company disposition of machinery card covering same ... .....--+ee+00+: 1639 312. Copy U. S. Patent No. 1,512,995 of 10-28-24 to Her- man W. Melling ........-.scccecccccsesccccces 1640-47 313. Copy U.S. Patent No. 1,634,550 of 7-5-27 to Herman W. ME ccc ccccccceccccccescscesensessceees 1648-52 314. Print #C-2129 of Walcott Machine Company— ‘‘ Assembly of New Style Parallel Type Tool Head’’ 1653 315. Print #KT-530-A of Walcott Machine Company— ‘‘Assembly of Tool Head’’ ...........--eeeeeeees 1654 MAIN RECORD EXHIBITS. EXHIBIT PAGE 2. Copy of U. S. Patent No. 1,542,803 of 6-16-25 to Chas. Gordon et al. ...c.ccececccereeeccceerees 1655-69 5. Amended Final Decree in Walcott case........ 1670-72 40. Notice of Infringement dated 7-1-25...........++::. 1673 41. Cuts only of Walcott Machine Company advertising pamphlet ........ ce eeee ee eer ee ee eee ceeeeeeenes 1674-75 42. Mailing List ...........ccecccscccccccccecccses 1676-83 48. 1929 Notice of Infringement.............++++0+: 1684-86 52. Photograph of Ford Shaper %4 front view......... 1687 53. Same—front view .........ccceececccreceveveees 1688 53-b. Illustrated chart of Ford Shaper tool movements OM ACHONS oo cccccccecccvvedccccsccescecosecess 1689 55. Record re: delivery of Gordon machine to Ford.... 1690 56. Copy of Ford order for Gordon machine......... 1691-92 61. Affidavit of I. W. Kindall re: Ford Camshaft Shaper 1693 62. Ford Motor Company Print dated 5-18-15 showing Ford Camshaft Shaper, front view.............+.- 1694 63. etc GIO po ccccccrdecdcobicdesdveseceeves 1695 64. Waleott letter to Ford 7-30-29. ........ceccecceees 1696 71. Copy of General Motors-Gordon Company Agree- ment. (Included in Exhibit RR)................ 1552-57 154-a, b, c, d. Records produced by Ford in response to Court GOES coccccseccvcecccescccensctsovase 1697-1700 XXII t (7 “ON LIGIHX2 S.JSILNIVId = _ | Ziz 32AMBE—HONVUE C4 1800 WAL || SL55% SAMBO ——+1DeVEE OL 1869 Wild a r os 7 ama | | ONIANIVe || FZ Sy . 642. SHNAIEY - — FT EE \| Tre: | reg cS | jP / 98 E5| C+ a ee HONVES O14 14609 BAY || “« 2505 . HONVéS O14 1800 “BAV ; ¥ | s2auia || £445 =, | s0Rea HONVES O1 ANV1d “OANW || HONVEe OL INVi San LA 12798 CSCS ME . | eres, wo 4 [-—~"Sannaxa ontaaies ae, | Shes Teegtes OT FFST7 - 780d ANVIa “Danes Taree Bd oy £8F z ieee, Fee Oe YL FO CTo0| baer" CHM Hb $8 |: ISE9S1\ bE. ‘fp | o9| 4. , ~tteoa [OF 00|_57090 HEIST | 75/47. ’ 637 7 rz Oo Fark (ETF E!.I/ZO ab RAT 5748 WS FT iAZ eal 7A 7 004¢ | fp200|2F00 of \2es787| E7 | & , oo? ee ExiTA o wisi ___= 1 — — n.cous | evuos| ‘s430 || ae SSisod ima w.Goue | avuos| ‘adzo ‘H “WW ONY “184 “ON! “BAY “WR “iua “BAV . “HW ONY “Ltd “ONI BAV “W2 “Aud “BAY | o2z9-Lsvzrl6| £-SV £ ee fe ro. easy ‘ie | = aive "2810 INA Zoiwa | Adlunvno | iva | usawo || iva ama] ‘D810 uNA a aus od} SISVHOUNG WIMBLVN ius EBSVHOUNG TIMELY TEA By. HINOW -—* HLNOM er a: wa KZ... Aaiere... sestiec * oeseeceeeose OV a WTTTTTTITTTTT TT Pl ° ° QVEENVD BNUN Luvd To 6=—llC Wl 8®lll””:”~:~:~;~;«é‘C eel, Bll jj | Ee ae BINAIIN ys IH vees-r “GSAS AUVAWNS worn seme | 3D1Am3S—HINVES OL 1809 Wao. \ } | | BHAMES +#ONVEe O1 480) Wicd | ' - | ONIANIVe | | ] | Ow LNiva | | ot Sees eee pee | { ' ‘ ! ‘ 4 ' HONWHA OL 1SO9 3AV ’ ‘ ~MONWNO OL 1509 aay DUST ATETT 23997) «Zee iDawa “ Asia : ts rr =.*° 2. 40210 HONWHH OL ANY Ia DANY T° Rh Sat 2 3/A07 7h be ha’ t FP FATEs onaains » to €&o0ce stoo Shs hl oe ose. 44 . hy KS TF 00 Troe S84C) way pod YHST a. sae Goan) ee, te FIOF\ZOOO| F000) SAIAL wewyssae Free $725 ZS33 135245 ty Ly torr 7 A lS se _ _ SESRL 1904 OT fr me "FIA OE 09 1295451558 07% SY é g2er 9EAV LoVe? (250S$/ 2 bod Te soe Te CNSR FILE sO E SET Zs 9C KISO TES ILS bin FS" S3Zt|ZF00|F R00 | fhgie Fs99s/ BH s/ geo? 3900 F500 via o J9LEE) sg/. 7 tT Wi0. | N@Ualie | »oev) VAIN i tbwacs NiCaoe eO8wt tawny — N.GO! 4 aVNOS “4a30 - — - ~ O0ne avew y a0 SASOD LINN ‘ S450.) 1tnn zi =i a6 ‘"- “HW ONY “184 ONI ‘BAY ‘wa 444 BAW Manufacturers «( \utomobdes Trucks and Tracters é Detroit.U.S.A. Jeruary 7 1924. a%° 97S oth *Y Se, Jae tos { « s er Ve ewe ? : 1 RE PLTme BErKe FO F-69 | AL. S7A7E Emre OF AE RERmE RTS CONTAIRS m TES LETTE® O96 COUTROEET Om STRESS AEGOEETS OMNES: on COST@RC TS 208 SuBeECT FO APEROWR OF Tut an OF Owe err ces we toe eo we ere crel-sire, herewith, revised bise: #lbeLeS sort +9 Fet* rn “L" charged - to be used « rith cnr crder L-43c97. 3 aS Kindly h ve the shove order come Koswepa Ss letest revised pri-t, © vising ue of ery edit «ip ae. : Ple«se a « thie machine cow forwer’ per thie revised pri: © and there wiii ce no aidition-~ al cost. Yours very truly, Jackson Shaper Toman. LER/ MJ General Mararcer. 1443 January 10, 1924. te 47 a7 "~ Pord Motor Company Purchasing Dept. Detroit, Michigan. Gentlemen; attention J. &. Stewart. Be hereby acknowledge Letter of Jenuesy 7th with revised treat bie--5 sheet $62, deteil #223 changed. eo. ve have had this detail whic is e gear, bored - and turned comlete, ready to out teeth, so it will be necessary for us to make them up egeia. The labor performed on thie detail amovate to $13.20 per machine. It will also be necessary to furnish us sufficient AAA steel for ten of these details $225. Fill youaleo p.ese9 eend us two additional revised orints #6-2-3 sheet #62. Yours very truly, Jeckson Shaper “Comany. General wsnager. f /, Ml A 5- t f fs — NA IS AL / = + t/ + ( sv” y , a 7 } 6 OM Te pr oa pees & pear ra 4 2n— 1444 ) A eter Cimpuny,, | Manufacturers of \utomubiles Trucks and Tractors Detroit.U.S.A. January | 12 1924, Jackson ohaper Co., Jackson, Micr. - Gent leren;: a ES ae os ME PLvins maven ve Ac. S7Ave maNTS On 6m . ari STrES Aas COnrwaRe? O% BTHRES Ac: Oem CONTACTS N86 SuRCEET TO APOROWA. Gr Ime orrces oF Vier Be are enclosing, herewitn, | #18-Z2-35 complete - (See change colum) sheets be used in connection with our order ar te Bary to agreed chet Buyer ull soap cael saatersa) mparets and pert eerted “Poor od Ford Meeker Company.” . S Rethntins slr adan tecmdtantantgnednaratantadndltneammtantitediiiane © acount of soch material, oo hapt caperate and apart, where tithe snd right te passe” ove sot pamed to —T oe SO Oe ce cmesas ies calcd dation end Wntan of enh satel 0s wo eng ott eaten cl fr aaunagen ¥ SNREEER om Samet See rl aroma es at va enpes, och owmtwsed wd Bhar ronerde ered oy nih, bee pend etna sores my oon thesk be es oe ca etn ae sh eat Manadiacturers of Mate Detroit. MA, Jackson aioh . f Gent lemon: ee Oo. OF ROME RETR m8 Le eee Oe Ame Cee Sete Of Creme ‘ ee We «ish to call your attention te the . 140697 b-40678. ae Inqgemeh as we are is urgent & thet you do all in your pover dates specified om the above erderd, An expression from you comseraing | FORD MOROR ns i JTe°Mm. Deda SIM «3 ty , at Aa Dowoi. USA. ai, | ge m ‘ Jackson Shaper Ce Pobreary 8 Jackson Mich Gentlemen: Me ak Wived » 1 REPLv ne BEPEE TO Sa Scand cONNED SE CEnonaW a Orte As DENTS CORED OR Ame Comte ee Oe " APPROCe & me SOMATUNE OF ACULY AETHORE® CreCUTN’ +h Fe UF ee Lemrene Cosette seater s F .. ‘ Kindly give us, wlll, cempietes, for record gurpeeees net weight of the special Machine for Game on camshaft, c by oir omer D48697, our Requisiticn FORD MOTOR Wd hy : $ e Buineering Dept ciaernoengeers nye arencsomsagenipepmmcneeeeie: 60 ThE 1452 Pebruary 12, i924. VPord Wotor Comaery Parchasing fept. Detroit, Michizan. Gentlemen; Attention J. R. Stewart. Be have just received one pattern and core box marked 16-£-5 - HB and we cannot find any Dlue print covering this piece, neither can we find 1% on the assembly drawing. Will you please look into this and send us Dlue print showing this pattern. Yours very truly, Jackeor Shaper Company. "General Manager. 1453 e. Manufacturers of Automobiles Trucks and Tractors Co" = / Cf/ Strid Hoh MK Y- Log Se, (or CetYLney » Detroa,U.SA. Jecksw@ shaper Company Feorusry 19 1984 Jeckscn Lichigan ee we themes ok ate atte eo ome pearationg pet oes _Prken2 2 ams CT nt (s. 908 CL YOND Gut CONTE, On8 tas omt@e "Seer t oe +> ePeec ves O 2) ee . Pee eee eee ee weaney Cte «, C8088 Suestcr ve comeeeHeD Referrirg to purchase vrcer D-4€67 coverirg 5 only 16-2-3 corplete special machires for sbaping € Cems on Camshaft at ome time. hindly expedite the vatter of udtcining your Castings from cet patterns l€- o Moridastarersof \utetmotates: fine hs ame Ppa tops Drertrertt ENN A: ril ~8, 19:4 Jackson Shaper Company, Jackson, Michigan Attention - “*r. Le xP oc -06-8 -Wil-g, S/~3-al = Pave tect, EN ea | =F AYIT4 FRR ee | . suuvans nae | mousse ave aoe SuouUvEsitV ANBNdINOD IWIIBdS °gz030m gdecxe oste ‘76f \ geome’ 49g % 99G-99eF STTEgep FuTgdeocxe ‘ogeTdmoo g-ZeT ¢/d 20d SB ) emg owe $8 OTP-z S30US WeO WO Sweo g BuydeyS z0z euTYoUN Teyoeds =... UIGWON SUIUNLIVINNVA — 2291l 3GNNN TWIU3S AYOLIV4 7 ON ———————S— F001 INIHOVW 2° RADINGAN INSNVWEAd , COPY BOUND VERTICALLY = ‘ON LIGIHX] S.dJILNIVId 1473 ae oe eee FEB Se “Te y eee = ne TT PNT ; : rerseasia i a4 es % —s od . SuOUVESIIV nh invid uno wi CTTNYHUIAD ANBNGINOD TWIIBes *ezogom gdecxe oste ‘264 goeqs* 498 © 99G-G9RF STTEgep FuTgdecxe ‘o a/a zed ee CEES CWO EE OTL *F4IS WED WO GuTO CG FP zoz Tejoeds —gezzt HIGNNN TWRIas AUOLDVS 1 Gezgt USGNNN SUaUNLOVINNVA $1001 SNIHOVW 4° AYPLNAANI INAINVWUSd f COPY BOUND VERTICALLY 1474 J -M ‘ON Lisinxa S.dSILNIVId ~ Le —— ain me , i | e 7 ae : Le pad rs Laing k RSs b } | qe et | 2 € | ; | | i - 7 " is 3. ’ J ‘ — + 3 } 4 ee Lectie & = 1 _ reat Bias . Ds Ae eo) : -2 oe j 4’ | 4 ; i e" as COPY BOUND VERTICALLY 1475 6-16-™% Houre Lost Due to Ho. Ere Moh No Ho Yo B. Te Hoe | Pieces Run Trouble Toole Stook Oper. REMARKS 35472 f°) 0 120. Setting up Machine 3o5es #171 66.75 3.50 19.50 7.25 36451 3035 64.50 16.76 11.60 7.85 36496 2074 77. 41. 2. S4682 2645 69.25 12.25 36.60 2. 36592 2019 64.75 5. 62. 6.25 B6ADMS 2096 66.75 13. 18. 29. 3.25 34928 13500 35. 85. Broken Tool Holder 57601 3721 103.75 5. 1.60 11.75 37657 578 16 8 67. 9. ST732 3425 99.75 il. 7. 2.25 37764 505 7.76 76.25 24. 12. Broken Tool Holder 37844 2152 62.50 6. 49. +50 37667 3602 96.50 ll. 7.50 4. 38006 3761 4. 3.50 18.50 4. 38080 2500 66. | 44. 10. H Total 37,054 1106. 75 422.25 18. 394. 65.50 Doe el. 089 19.¢ 33 } Payne PLAINTIFF'S EXHIBIT NO. W=2 Hours Lost Due to Moh fool Ho Bo Ho Trouble frbl Tools Steck Opere Setting up Machine fail Stock Trouble Cam & Tool Holder - out of order Slide out of order fool Holder eut of order Master Cam worn out Repair Slides 979.76 671.28 8.50 5. 1.4 2% PLAINTIFF'S EXHIBIT NO._W-s¥ 1477 Pa! OG Mr 4M Wibel 11-04 Fo. Ere. Mab Teel |= Wo BS Bo.| Pi Run | Trouble) freabl¢ feels Oper. BL a FI SOAR o| 0. 112. Setting Up somes | 2005 | 79. 29. 1. 2. 1. Rep fail Stock seami | 2970 | 62. 26.50 2.60 | 1. » 8 " & Slide 36406 | 4156 | 111. i. 36562 | 2975 | 78.50 | 32. 60 i. Broken Drive ‘Gear 36508 | 1650 | 37.25 | 64.25 10.80 Rep Tool Heléer sete | 1555 | 36.25 | 61.25 | 14.80 8. Rep Slide & whange cam 36928 oj} 0. 112. Rep. Slide & Tail Stock 87801 | 1210 | s2.60 | 70.50 % Rep. Slide, Cam & Drive Gear 37657 0 | 0. 112. Rep. Slide & Tail Stoox sv7sz | 644 | 15.75 | 75.25 5. 16. Overhauling Slides Sv764 | 1290 31. 61. - s 87044 | S777 | 104. 250 1. 5.50 ses? | 3515 | 98. 12. 1. 1. $8005 | 4012 | 108. Re 2. 38080 | 3500 | 97. 7.50 | 7.50 Total 33,736 | 910.25 | 795.75 | 17. 5. [16.50 | 54.50 PLAINTIFF'S EXHIBIT NO. W/-# PLAINTIFF'S EXHIBIT NO. Ww-3 —_ Firs. Moh Tool No Ko No Run Troubl@ Trouble; Tools| Stock| Oper. REMARKS i] 0. 96. Setting Up 93.50 50 & 1. 93. | et ) le 53.50 | 30. ete ee 2. M4. | Rep Tool Holder 33. | 39% | | | 2h " Mester Cam & Clutch 14.50 46.50 | | 6. 3. | 16. Tools out of line 19% | 76. | | | 1. Tool Holder ous of order 17.50 76.50 2. Rep Drive Gear 66. 26. 2. 41.50 11.50 4. 23. —_—* Overhauling slides 48.50 46.50 | 16. 9, il. | 37-75 $8.25 | Overhauling slides | 82.50 50 | 13. | 58.50 | 25.50 | | 5. Tool Roldnr & Tail Stock | | Trowle | Totel 27,092 | ves.t0 | 639.75 5. | 29. | 3.| 104.80 49% 42%, 2s % HE PaYxe ENG] MERRI WG 1479 Mr AM Wibel Engineering Pb -M M02 Ok ELLAND CAM SHAPER - WER OF MRT OTK TO LACK AOS Hours Lost Due to No. ire. Mob. Teol No Bo Wo sr ho. Pieces Bun Trouble Trouble Toole Steck Oper. ks seats 126. Not assembled wd 2301 74.25 39.25 5.60 5. Cam out of line 30452 3829 = 106. 50 5.50 16. So4%0 eve “4.59 85. 50 Slides & Tool Holder Out 35620271200 73.80 = 59 15.60 Seses @ & Broken my 36592 715 19. 77. 32. Tool Holder out of order $6546 2350 61.50 39. 27.50 $6923 106. 22. Tool Holder oat of @éer 37501 2785 75.25 16.75 50 35.50 Cluteh owt of order ‘ 37657 3645 97.75 14.25 1. 15. Tail Stk ows of order 37732 208 5.50 19. 64. 39.50 Master Cam Trouble 37754 3645 105.75 12.50 0 50 10.75 Tail Steck Trouble Tool Holder out of @éer 37644 2627 71. 35.50 50 21. 37867 1945 62.50 59. 16.50 Overhauling Slides 38005 4295 115.50 60 1. ll. 36080 4145 0=—111.50 50 0 15.50 Total 37,656 1011.60 630.265 3. 103. 13.8 262.75 4 49.45 30.90 +14 5.035 +66 15.62 aS pares ENG] NEERI WO PLAINTIFF'S EXHIBIT NO. WwW -€ 1480 ur aM Wide) Engineering 9-26-24 - 7 . - ' Pieces. Heures Mach Hot fool He ve Lt) , wn. mde Run = PL | Asso, rb) Toole Steak — Opers REMARKS | mr | | 1“ wees | 1297 a ee | 35.50 a1. Cae Treble wisi | 1000 | 87.80 | TR 6. 57.60 Steady Rest and Tail Stosk mass | 2960 | 68,50 27,80 8. as, geal Belden out of order sassz | 1920 | 52.25 4s. 28.75 Rep. Feed Gear moon | 4675 125. Ve | 12. feel Holder Trouble wee | 3000 | 108.50 80 | 6. M4. ems | 8728 | 100, | 1% | 29. Clateh out of arder #501 | 1976 65.25 | 8B. | 66.75 | Cam worn out sr7sa oa 1b. 104, | Out of Time sss | 6076 | 141.60) 1. 1. 60 gress | 1719 | 9 45678 | 69.60 28.75 | Rep. Tail Steck sre? | 2606 | 45. | 41. 10, 89 Drive Chain Broke seo0s | 4402 | 181, | — mono | 4407 | 188.80, 80 a | 460 must | oa09 | 168. | a) -60 PLAINTIFF'S EXHIBIT NO, W/4-.7 mr 4K Vibe) Pisces| Reare | mach Be Be| Mate | Bun tre} eare ets 128. eae ree a ee | re Beate 14 | we le maen| 4055 125.75 1.38 le sss | 5067 200.80 26. | 2.80 | Dew Slides wees 1796 | 44.00 : 29. | 1%80/ sl. setes | acs | 1ns80) | 1.80 smo 408 10.80; 64. | “. 15.80 | Installing Bow Beate sust sess 03.75) 9.28 | | 23. | 1% | feel Bolder trade sr7az | 1100 | 6080! 37680 | a | a 16. m. Pin out ef Peed Gear 7M | 1108 eS | | | wrote | soso 10%.80' .80 | 16. % S106? | 4045 106.80 13. 8.80 30008 | 1480 | 3. 8 =| 78. | | | 13. 6. Installing Bow Reade seco | B40 10, 124,80 | | | 4.80 | | | fetal suze 1008. ss. 128. | 2. _ 198. | 120.80 ee ee oe Se PLAINTIFF'S EXHIBIT NO._ Y/- F 1482 mr AM Wibdel Engineering 10-10-24 QAM SHAFER REPORT - WERK OF MEPT 89TH 70 OCT OTK 9M4 seve Tag M* BAT Toten Sat feels Steck Oper. mere) qaate 128. ord 128. Cem Trobe wm ms 8608.80 iS 85.60 mans RO %.00 17. 14.60 200] Holder Troable ee ed 4.60 20.580 wom 64000108, 15. 1. 4. General Trouble geese «(1%86 0 = 44. s. 36. 38.50 PT ee 12.60 280 2001 Holder Prouble Pe 90.80 29.50 6. Broken Chain Pe ee 16. 8.60 we 2.7% 4. Ss. 68.76 8. 6. ora Ss Sats “15 4.8 le 1 Foe RE 1.8 55.8 1. yest B88 ww. 17. ube 6. as 060 OU & 118% 8. ates. ont gente 1008.75 656. 188-5080 16,78 161080 OB “$ PLAINTIFF'S EXHIBIT no. W-% ur 4 M Wide} Engi nee ring 10-16 Pieces Hours Mach Hot Tool Ho Ko ¥o tO Made Run Trdl assem fTrb) Tools Stock Oper RAS 36472 128. 36306 «(1855 = 56 27. 13. 32. Head stock out of order, Clutch Trouble 36451 555 «16. 104. 8. Overhauling & heads 36496 «= 4045 «114. 9. 5. 36552 S850 110.75 2. 2. 4. 9.26 36592 «695965 112. 7. 9. 846 «633850=— 92.50 39 35 BO 1. 1. Generel Trouble 369868 ©6400 ~=121. 7. $701 165 5. 107. 8. Repeiring Beads 37667 3460 100. 11.50 12.80 4. Broken Tool Holder 37732 755 821. 96. 1. 10. Preparing for shipment to 377564360. S«108 le 6s a 37044 2755 75. 29. 18. General Trouble $7667 2765 75.50 14.50 18. 20. Moving to Rouge 38005 126. B-160 Gen Overhauling 3e0e0 3080S 89. 32. 7. Slide out of order Total 36456 1004.75 706.50 128. 4. 17. 120.50 65.24 e HE PaYxe EBNGINEERL 3S PLAINTIFF'S EXHIBIT NO._W/-/0 Mr a bi iibel Encineering 10-27-24 GAM SiaPoR SPORT - WEEK OF OCTOBER 5TH 70 2978 Pieces Hows Mach Sot Tool Wo Ho Ho BT 500 Maude Run fTrdl assem Trbdl Tools Stock Oper. REMARKS 36472 1550 46.50 6050 862. 1. 9. 3. Shipped to River Rouge $6386 46©=—«: 3105 96. 10. 3. 5. 3. 4. 36451 765 20.50 250 3. 36496 3905 lll. 10. 2.50 36552 4295 122, 5.50 2.50 36592 2240 63.50 56. 9.50 Clutch Trouble 36926 3180 94. 32. 50 1.50 Slide out of order 37667 3650 114.50 250 1. 8.50 3.50 Broken Too] Holder $7644 2510 72.50 27. 8.50 >. 39005 1070 28.50 250 3. Shipped to River Rouge 38080 2585 79. 18. 2. 10. 4. 7. Clutch Trouble Totel 26615 648. 163.50 62. 5. 17. 39.50 43.50 RE Pave ENG IXEERING PLAINTIFF'S EXHIBIT NO. _W/ -// 1485 Engineering 11-86-24 Hours Lost Due To Ho. Ere. Moh. Tool Bo Bo Ho BT Ho. Pieces Ran Trouble Trouble Toole Stock Oper. REMARKS 35472 3605 103,50 16. 7.50 Clutch Trouble WA6 4220 1235.50 1.50 3. 36552 4165 121. 4. S. 36692 3950 111.50 13. 2.50 le Clutch Trouble 36848 aA 14. 6. 41. 3. Motor Disconnected 36928 3600 99. 26. le Installing New Slides 37657 4035 215.50 6.50 5. 37844 1800 51.50 2.50 1. 1. Going tw River Rouge 38060 — 54. 2. bad ° ad Total 25695 639.50 71.80 9.50 102.50 1. 16. 4 a EH PAYNE ENGINEERING PLAINTIFF'S EXHIBIT NO. WAZ2 1486 Mr AM Wibel Engineering eckente BEPORT Of MELLING CaM SHAPERS - WEEK OF OCTOBER 27TH 70 NOV LOT. Hours Lost Due to Ho. ire. Moh. Tool Ho Ho Ho BT No. Pieces Run froubls Trouble Toole Stock Oper. REMARKS 36472 4160 «128. 16.50 0 4. om Repair Chain 34496 4125 120. 16.80 6.60 fa ke Cam Trouble 36552 “AS5 = 120. 6. 5.50 6.60 Slide Trowle 36592 2696 “4.50 DW. ll. 10,80 36848 ---- 112. Motor Disconnected 36928 2736 77. 36. Slides & Tail Stock out of order 37657 4606 «124.50 9.60 4. 6. Hew Master fael 228665 649. 115.50 112. 50 xO. 23. 4 a H PAYEE ENGINEER DG PLAINTIFF'S EXHIBIT NO. WwW-/7 1487 Rr Au Vidbel ~ AW (\ £ — . va >. GEZEEEEEE EE z§ § = PLAINTIFF'S EXHIBIT NO, W- A CARE att Bie %, Lae Sey ° 2 n LE PT 1 ts ab # aa Host _—— 1482 EXHIBIT X1. FORD MOTOR COMPANY PRODUCTIVE LABOR AND OVERHEAD FOR DEPARTMENT T 410 For the period from June 1, 1925 to February 28, 1931. Productive Months Labor Overhead June to December, inclusive, 1925 .......... ° bd January, 1926 ....ccccccccccsvcccvccsccvces $ 62,909.88 $ 84,008.13 PeWruary ..ccccccccccvesccsssccesesccsocses 59,306.94 68,945.28 [POT Cer TET Eo TTR CRE ee 69,146.55 84,292.23 BT cccccccstnscddyssrcvcessscccsressenes : MAY ccccccccccccccceccissocccccccsvecsces sf be pO CT ORT ere CPO Ler CL 48,696.46 69,397.49 July to October, inclusive ........+++.++eee- 2 . WAUOIEE beter desidectccevacsecunpecededs 65,574.68 97,369.91 TCOUINOE scccccsdacdeccdwodecssscenvegesas ad i January, 1927 ....cccccccvecvcccccsssccess 58,283.20 82,996.62 WOWPURTY ccc cicccvevcccsssecnccsocccrves 53,310.77 77,531.01 WOM pcccesecendanededadvecdeedertorasees 68,320.05 92,290.50 April .ccccccsccccccsssesccssccsccccsvvess 54,351.92 85,119.67 MAG vsvcccccdcvcecssdsccsrccrencsseneesee 249,710.42 358,460.04 June, 1927 to February, 1928, inclusive ..... ¥ . MAGE, SOUND cerdccdavcveccnssctecoreseress 383,979.89 447,558.00 BN oicccccdcdscvusssrsscesccosccoccssese 426,026.67 475,148.94 MAY ..ccccccccccccccrccccccccccccccsesees 161,354.00 156,416.84 BT POP POT POLO rT eee eL ETE Tt Ca 165,423.64 171,631.19 » REPO OCOTOOC UU OULU 165,843.40 167,469.92 BURGE ccccccccccccsccscccesesccrcosoccos 184,494.69 168,764.90 September ......--cecccscccccscccseccccees 160,847.08 159,116.76 Ce PET ET CET OCC COU 190,366.59 195,530.67 MONOMNOE cecedisdecncecaverencdiecden tens 180,039.79 195,001.14 WOGOINOE cc dcccceccdevosssesssuedstmyeess # Wg January, 1929 .......cccccccscssccsccvcccee 215,922.85 202,037.18 February ....ccccccccccccccccscccscccvcres 193,657.89 197,642.17 MED idecc cde veecesskdesse Faagdeeeseenses 196,301.27 200,855.86 BOND ceccccacnboteteccerisevecdecseresedee 175,020.71 190,257.42 OT. sabes ccsaidedetureew er ehtsednsasaviee 190,031.69 195,126.59 PRPC OTTE CET ee Cet Cl Ce a, 180,264.14 203,087.58 DUET cccsavosdaccuscscvedvsbereedunsiesress 193,567.51 220,448.28 De PPE COPe Ore COLO OO Ce. 200,442.07 224,977.43 September ........ccccccccsccvccccccccvecs 153,922.47 195,200.30 le Serer err rr errr ire aay eee, 169,232.65 219,447.29 WOVOMIBET ccc ccccdcccsrvedeccessceiveseens 103,309.90 163,800.36 WUCONNOE scccdddbciandescadeadoneseetsaseers 64,214.22 139,747.94 * Not available. ee Te Se, ee, ee ee _—_ : EXHIBIT X2. FORD MOTOR COMPANY PRODUCTIVE LABOR AND OVERHEAD FOR DEPARTMENT T 410 For the period from June 1, 1925 to February 28, 1931. (Continued) Productive Months Labor January, 1980 ....ccccccssvcccvsscvsseccces $ 87,939.83 FODVGRTY oc cccccccecccrccecvsvcsescvessees 119,236.45 TE. cc acccverievecvokdvedenseeseeuevedens 149,514.16 BOT cicceccccvesvendnsseseonedvenvonveses 177,954.06 sebcccctnirnedasnseedrer ness eres ees 182,309.84 POND nice cerccedhesecvedsensseraceeseeveune 176,010.73 FO cctvpessncsventasaestecasauseseorsseee 60,658.66 MUBUSH .ccccccccccecvecesesccsevcsvesceces 111,339.13 September .......-.ccecccccccccsecsscvence 103,715.10 CIE: gereenscrecesersncis cuswreseinereeers 86,511.22 DN dsc cv ercckededatdvctuceiavere ces 78,540.83 DRE acivcceenc ccecucuceenyseousdvede 58,743.22 January, 19G1 ..cccsccccccvscccseversessses 59,624.21 DOGES ces crisccvnccsetseseceseueseceses 83,081.80 i... AONE RSL ROE IIRL ET RE ESSE Ne ORR A ES RM RL BR EN SAAS OK Overhead $145,167.10 195,618.32 216,167.92 223,733.42 246,599.45 241,648.41 114,603.09 178,899.35 171,956.69 149,475.42 147,837.62 135,272.64 120,931.88 147,409.48 sii tae! pe a ae aver SLAC NTEBR LLIN PETE ER OTH LEI EN SIE TNS 1499 EXHIBIT X3. FORD MOTOR COMPANY PRODUCTIVE LABOR AND OVERHEAD FOR F 446 CAMSHAFT MACHINING For the period from June 1, 1925 to March 31, 1928. Productive Overhead Months Labor Overhead Percentages possesion Department 105: June to December, inelusive, Per rrrr rrr cee rere ” . January, 1926 ..........06- $105,857.33 $178,937.71 169.037 VPODTUGTY cc scccccrseseccces 138,974.51 234,512.23 168.745 MAUD sebsvaseandescereeees 124,779.76 234,215.80 187.703 (Used 150 pet.) April ....ee cere ere eeeeeee * is MAY .ccccccscccccccccceces id * DED necapecresieersscasses 98,673.30 193,146.33 195.743 July to October, inclusive .. ) # MOVOMDET cccsccsccesevess 22,200.11 149,677.33 674.219 December, 1926 to March, 1928, inclusive .......... ba > Departments 102, 105 and 106 combined: June, 1925 to December, 1926, inclusive .........- bd * January, 1927 ..........6- 133,935.24 324,142.77 242.01 February .....-eseessceeees 236,317.99 373,399.23 158.007 Departments 102, 105, and 106 combined: March, 1927 .........seee- 335,789.35 447,867.90 133.378 April ...ce cece cece eeeeeees 9 * MAG 6 nkccccsessecssecevesesc 207,504.98 398,269.68 191.933 June, 1927 to March, 1928, IMEIGSIVE cc ccccccesecsers id + Department 102: June, 1925 to October, 1927, GMEWUGIVE 2c cccccsdbiesiices ? . WOVE co ccdacecccsscces 232,425.83 399,546.41 171.903 December, 1927 to February, 1928, inclusive ........... id 7 rrr rrr rr 103,137.11 218,493.79 211.85 (Used 176 pet.) * Not available. ececagaconieg tetera SPO ee ee ye 7-A ON usiaxa S.J dILNIVId anaes — —— — ; | Tata dlam nme emaia ies ee Seat | , % at! 7 ‘ a | ~ bead { wn “wag =0s0 S-oCy, | FCs OVAL ies eqecets Vert ame menenananamimas is 7 : | LHOTEA 0.1.99 1.04 om ‘Soa’ G0 49 5... 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DETERMINATION OF BURDEN RATIO TO PRODUCTIVE LABOR. Qn June 1, 1938, at cross examination, defendant presented three sheets showing total productive labor and total overhead as follows: Pltfs. Exs. — X-1 — X-2 — X-3 — for Department 410: For Department 105 or for Departments 102, 105 and 106 combined: 5 Months of 1926 5 Months of 1926 5 sé ae 1927 5 “e oe 1927 9 * ‘¢ 1928 1 ie ‘¢ 1928 @ * ¢¢ 1929 ye ¢* *¢ 1930 a 4 ‘€ 1931 The data thus supplied has been used, as shown below, for periods subsequent to December 31, 1925. For the period beginning June 15, 1925 and ended December 31, 1925, the data has been obtained from cost summary wards furnished by defendant at earlier dates: Department 410: Unit Costs Total Amounts Months Production Labor Burden Labor Burden From Cost Summary Cards: June 16 to 30, 1925 (% of June) ..... 100,575 3066 .2894 30,836.30 29,106.40 July © > icuueaseseenetens 172,650 .2960 3271 51,104.40 56,473.82 August TTT TTCTI TTT Tire. 92,700 3235 .2955 29,988.45 27,392.85 September HF ptéaweseueseveeses 119,500 .3106 .2837 37,116.70 33,902.15 October MH yeescadunecredere 222,950 3195 .2793 71,232.53 62,269.93 November e- cccckensunavaeweee 212,950 3084 .2570 65,673.78 54,728.15 te cuneseteceevncasteucduee 921,325 285,952.16 263,873.30 Weighted average burden percent- age (Used for 1925) .......-.++ 92.27 Productive Burden Labor Overhead Percentage From Data Supplied June 1, 1938 by Defendant (Exs, X-1, X-2 and X-3): January OE cheer cee eeeeetcsueeeedsutcrteesevecenessreds 62,909.88 84,008.13 133.54 February WF Le gach ekeckser PEREVEEVE STR CEERDI EE ThEKeeKESs 59,306.94 68,945.28 116.25 March Fc cecundeee ns beceOeeseteuversesertuseveccess 69,146.55 84,292.23 121.90 June PE ces edS eR KENENSENTPEESENONY EPOREN SELES ORG 48,696.46 69,397.49 142.51 Cee gcse veer ever ersetasreseeriovceneveeeurtene 65,574.68 97,369.91 148.49 Totals, and average percentage (Used for 1926) .........--- 305,634.51 404,013.04 132.19 January SE on Fiicckasuccceevateee ees heceuderssestsixse¢ 58,283.20 82,996.62 142.40 February FF peeved nen reneere CenevenreewEneerediesi 53,310.77 77,531.01 145.43 March We ceuyaderdvececencedeereseceuseuhets Caseess 68,320.05 92,290.50 135.09 April oT acececkecteceserecusvexerreccanssessecerts 54,351.92 85,119.67 156.61 May Oe cecév unt UXadstUe nee CES ee RP cneeess resets 249,710.42 358,460.04 143.55 Totals, and average percentage (Used for BOBT) .nccccceces 483,976.36 696,397.84 143.89 ~~ nedeis 4 ee eT ee, es ea i a a Department 410 (continued) Totals, and average percentage (Used for 1930) January 1931 February ¥ Totals, and average percentage (Used for 1931) eoeeeeeeeeereseeseerereeeereeeee Months March PPP r Perr rrr rrr Tet rrr rrr it April CG _ fee OOOOH ESOC HR ORO HOCH HOCK THC CCH FERC CTCF FEE May errr rrr rrerrfyT rel iA ed June PrP rrrrrrrre eee eet July . PPPTTTITIITITITITI Aagust —«- «wv ccercecceccrvereveccesesccsesvccssesersees September Cosh enwsavadtwereceeerereerererecererrrnerere October ee Payee rrr rrr errr rrr rer Tria tt. tril re. November rr errr rr rer rrr eee rere t ee Totals, and average percentage (Used for 1928) .........-++- January SD ccveusneviseeveeereveverecveverecrereneerOns February eee Pr rrrrrrr rr rrr rT eri tee ee Mareh CO locereeecerveververserererereererrEerTeTere tes April re errr rrr rrr rrr ret Tier Teter eh, May OE Lc aveser ser ee ereeceekeerTeeeeno er CCLOT eS June ew de ovate eee hecen es eeRRe reverses ¥Ces es July 4 sevestrurernencvareseeutruerrocrrerer ener es August 6 CcveeeereeuvedersvererrsnverrrsterveCrereeTs September 6 eevee eecercecceeusereeceesrseessssssereeees October oe lpworecectrereecerereserervescevereavesererse November , WL Leosercnsstensreéreeveeseevevereovetevererre December a nn rrr rrr rrr rer iY Trt rt tree ok January SOOO ccccveecdrccvereececereroveroeroverocereeres February f sccchoctecdtveraverureterrvcererereveeresres March He scapeereterrerreedetederseerierertenes April He pcceuseensevtersrerecedesovenerrerereererues May errr rrrrrrrrrrrr rity titi eee June Fn cooked eee CEO ERTERSUR IS ET OT ECTENES CEES July TF pcceeperest eesti Cerrer eet eerecesrederererss August Ho . cegadodereverueeceererrecerecisoeeroeruertrs September {6 sea eceeerccecercerensussesersarsusesseeseses October He clecccdaneeeraveereceehedverceveceereserters November M8 is ccevenvernerereestraseereerererentses December Hn oe pecriwrseeesereverseurterersrrerieagene re een PLAINTIFF'S EXHIBIT B-1. DETERMINATION OF BURDEN RATIO TO PRODUCTIVE LABOR. 149° (Exhibit Z-3, Page 7) Productive Burden Labor Overhead Percentage 383,979.89 447,558.00 116.56 426,026.67 475,148.94 111.53 161,354.00 156,416.84 96.94 165,423.64 171,631.19 103.75 165,843.40 167,469.92 100.98 184,494.69 168,764.90 91.47 160,847.08 159,116.76 98.92 190,366.59 195,530.67 102.71 180,039.79 195,001.14 108.31 2,018,375.75 2,136,638.36 105.86 215,922.85 202,037.18 93.57 193,657.89 197,642.17 102.06 196,301.27 200,855.86 102.32 175,020.71 190,257.42 108.71 190,031.69 195,126.59 102.68 180,264.14 203,087.58 112.66 193,567.51 220,448.28 113.89 200,442.07 224,977.43 112.24 153,922.47 195,200.30 126.82 169,232.65 219,447.29 129.67 103,309.90 163,800.36 158.55 64,214.22 139,747.94 217.63 2,035,887.37 2,352,628.40 115.56 87,939.83 145,167.10 165.07 119,236.45 195,618.32 164.06 149,514.16 216,167.92 144.58 177,954.06 223,733.42 125.72 182,309.84 246,599.45 135.26 176,010.73 241,648.41 137.29 60,658.66 114,603.09 188.93 111,339.13 178,899.35 160.68 103,715.10 171,956.69 165.80 86,511.32 149,475.42 172.78 78,540.83 147,837.62 188.23 58,743.22 135,272.64 230.28 1,392,473.33 2,166,979.43 155.62 59,624.21 120,931.88 202.82 83,081.80 147,409.48 177.43 142,706.01 268,341.36 188.04 DELANO REDE P ARENAS L RL AEST TIEN EPS EE Sedat iS tal a i 1§"0 (Exhibit Z-3, Page 8) PLAINTIFF'S EXHIBIT B-1. DETERMINATION OF BURDEN RATIO TO PRODUCTIVE LABOR. vepartment 105, or 102, 105 and 106 combined: Unit Costs Total Amounts Production Labor Burden Labor Burden From Cost Summary Cards: June 16 to 30, 1925 (% of June).. 5,242 .8006 1.2520 4,196.74 6,562.99 July SF peeeeoueseceer 9,681 .8140 1.4303 7,880.33 13,846.74 August i seaasevausauey 9,245 .7525 1.2479 6,956.86 11,536.84 September OT iedewusecsuns 8,745 .7356 1.2410 6,432.82 10,852.55 October Oe Leceseueteeres 9,363 .7486 1.2642 7,009.14 11,836.71 November Oe Lacecewneeenes 8,825 .6757 1.3316 5,963.05 11,751.37 Totals ...cccccccccscervccces 51,101 38,438.94 66,387.20 Weighted average burden per- 172.71 centage (Used for 1925).... Productive Burden Labor Overhead Percentage From data supplied June 1, 1938 by defendant (Exs, X-1, X-2 and X-3): January Dp caceen GWEC ERUSEEUCUVEREESNSVERS UOCENE SERS Es 105,857.33 178,937.71 169.04 February reer TT TT errr TTT Ti ToT Tt ttt tha 138,974.51 234,512.23 168.74 Mareh fee ceudereSeSUS SECC CEVEUEREO RCH EODS SET E ND ERKOT 124,779.76 234,215.80 187.70 June Wh. dasensesasieusbarassucuneuseués 98,673.30 193,146.33 195.74 November Oe coves peveSUSETEESEROUEECCRERESCCE SO RGR ET ERTS 22,200.11 149,677.33 674.22 Totals, and average percentage (Used for 1926) .........++. 490,485.01 990,489.40 201.94 January OE Cc cccndcuvrceseeeevediaseesvecuvecrceevensnees 133,935.24 324,142.77 242.01 February MTT ePeTTroTTTIeTiTT Tritt 236,317.99 373,399.23 158.01 March ror rr eT Trey rT Terr rT TTT its ita hil as 335,789.35 447,867.90 133,38 May ee eT eC O TOTO UTT TTC et 207,504.98 398,269.68 191.93 Wovember §! — ncccvecccvccccccccevceveccccccccrernveceeese 232,425.83 399,546.41 171.90 Totals, and average percentage (Used for 1927) .....+.+++++ 1,145,973.39 1,943,225.99 169.57 March DC cconccvedvecesweeedcndvedshesieeteercreeeexe 103,137.11 218,493.79 211.85 Not used. Instead have accepted the suggesced percentage. . 176,00 LIRA, BOTS AMPLE UB NRL ANEMIA MIAN EYEE TEI TMI OE IIH GR BEM ON SE NE LE TIO Cn So (Exhibit Z-3, Page 10) PLAINTIFF'S EXHIBIT C. Production Per Hour by Various Types of Machines of Each Type of Camshaft, as Used in this Report. T-410 Shaft. By Cam Shaper: 25 per machine hour, 50 per man hour. Based on production admitted by defendant’s wit- nesses (pp. 205, 212, 222 of Printed Record of Appeal). Same production per hour as used by defendant in its ac- counting. By Melling Cam Lathe: —37!4 per machine hour, 75 per man hour. Based on production admitted by defendant’s wit- nesses (pp. 212-223 of Printed Record of Appeal). Sup- ported by operation sheet of 10-8-24. Made at Highland Park. (Defendant’s Exhibit 14). Modified by testimony of Mr. Schmidt, who was in charge of maintenance of De- partment 410 at Highland Park and Rouge. On page 1016 of the typewritten record of the hearing beginning January 16, 1939, Schmidt testified that the Melling lathes came in March, 1924; that slides were changed from cast iron to steel and that many other changes were made in the ma- chines; that it was five or six months after the machines were received before they started to get anywhere near the production they ought to get; that after they made changes in the machines the production kept increasing and that this increase continued after the lathes were moved to the Rouge plant. This operation sheet showed .86 of a minute for turning the cams, which is equivalent to about 35 per hour. The increase from 35 per hour to 371% per hour, supported as it is by Mr. Wibel’s sheet (Exhibit 247) is, we believe, ex- ceedingly conservative. 15%2 A-6250 Shaft. By Landis Grinders: —9.4297 per machine and man hour. Calculated upon page 13 of this report. In this calcula- tion, non-grinding time within the operation cycle is ob- tained from the White Motor Company’s motion time study (Plaintiff’s Exhibit A a). Unloading and loading time, as shown by this time study, has been eliminated from the non- grinding time because of the use of conveyors by defendant and consequent probable faster handling. Only the non- grinding time necessary because cams were ground one at a time, is retained. The remaining, or actual grinding time, is calculated upon the basis of the relative periphery of the cams upon A-6250 and F-446 shafts. Defendant’s Exhibit 12 showed a production of eight F-446 shafts per hour and this production is the basis used for the calculation of the actual grinding time. By Melling Cam Lathe: 32.711 Per Mach. Hour. 65.422 per Man Hour. No time study covering the turning of the cams upon this shaft on the Melling lathes during the infringing pe- riod, is available, excepting Defendant’s Exhibit 16, made at the very beginning of the production of the A-6250 shaft, and disregarded, for this reason, in defendant’s account- ing. A different type of operation sheet (Exhibit 214) pre- pared for Autostroy, has been presented by defendant, but this is clearly not an exact copy of a time study, because the production thereon is shown in even numbers per hour. At best, it is an approximation and time study speed showing anything between 30 and 35 per hour were prob- ably changed to the nearest ‘‘gafe”’ figure,—in this case 30. This sheet was prepared for use in Russia under the supervision of an employee of defendant, and presumably to indicate production which might be attained by work- men of a nation relatively inexperienced in mechanical operations or mass production. It would naturally state expected production conservatively. It cannot, therefore, be accepted as definitely and accurately proving production of defendant. 1593 164 In the absence of an actual record, production has been calculated (See Page 13 of this report). In view of the evidence presented at the hearing beginning January 16, 1939, the use of non-turning time within an operation, as shown by the White Motor Company’s time study of the Melling lathe, has been eliminated,—this because loading and unloading time has been shown by evidence at the hearing beginning January 16, 1939 to be materially less at the defendant’s plant than at the White Motor Com- pany’s plant, and, unlike the grinding operation, in which each cam is separately ground, the non-turning time, other than loading and unloading, amounts to so little as to be a negligible factor in the determination of production per hour. Evidence at the hearing beginning January 16, 1939 shows that the shaft revolution on Melling lathes is based upon motor revolutions per minute and on gearing which cannot be changed by operators and which was not changed. Therefore, theoretically, the production per hour of A-6250 shafts should be the same as that of T-410 shafts. However, evidence at this hearing indicated that even with shunt wound motors a heavier and longer cut would slight- ly reduce the motor speed. As the periphery of the A-6250 cams is greater than that of the T-410 cams and as the for- mer are produced from 40 carbon steel as compared with 35 carbon steel for the latter, the production of the A-6250 shafts would have been slightly lower than the production of the T-410 shafts. In recognition of this fact, production of the A-6250 shaft has been reduced from that of the T-410 shaft (37.5 per hour) in proportion to the relative area of the cams upon the two shafts. The reduction in speed, so deter- mined, should be ample to give effect to the slight reduction in motor speed and to the slightly harder steel. F-446 Shaft. By Landis Grinders: Based on production of 8 shafts per machine and man hour, from Defendant’s Exhibit 12. By Melling Cam Lathes: 20 Per Machine and Man Hour. Mr. Herklotz testified (page 256 of printed record of appeal) that production was 29 per machine hour, 50 per man hour. However, Mr. Worley (page 1872 of the type- written record of the hearing beginning January 16, 1939) stated that the recollection of various men in the plant of the production of these cams, ranged all the way from 15 to 20 per Hour and some even said 25. A calculation based on 37.5 per hour of the T-410 shafts and recognizing the greater area of the F-446 shaft, shows 20.2389 per hour. (37.5 divided by 1.85287) for the F'-446 shaft. Defendant’s Exhibit 215, an operation sheet prepared from an English time study, is not conclusive for the rea- son that there is no information as to the motor speed, or as to the handling methods in the English plant, and for the further reason that it is generally recognized that English workmen’s output is much lower than that of American workmen. Also, English production of motor ears and tractors has not been in sufficient quantities to necessitate the mass production methods used in the United States. In view of the above, it is believed that 20 per machine hour is the most reasonable estimate of production obtain- able for the F-446 shaft. For the Period from June 16, 1925 to February 3, 1931. Month June 16 to 30, 19250 wee eeeee July 660 geeevere August 66 peeeeene September $6 peeeenes October se ogesuvers November 60 geeevere December Ht . openness Totals, June 16 to Dee, Sl, ey Sr January 1026 .ccccres February $6 poeecere March $6 cevecess April 66 = =seereree May $60 geeueees June 6 tp eoeeues July eo ceevente August $6 tp evecers September ‘io poeneeee October 6 sasveers November te Gecccose December + eeveewes Totals, 1986 .nccoees January errr February $€ geturunus March $6 saeeuane April ¢ soeusees May 0 seenenee June ¢ neeneeon July seeerere August te peansere September of eeennens October tt gn auenes November $e geuseees December ct “seeuenes Totals, WET cccecoer January 1928 ...ceces February oe onwenves March tt ctaneeee April $6 steeenve May + guanvnds June $6 paneteun July et cseneuse August $6 seceenes September $6 soveeees October 66 peevveee November 66 geeveees December 6 gontedes Totals, 19028 ...cceee (Exhibit Z-3, Page 14) PLAINTIFF'S EXHIBIT D. Production of Camshafts. Model T Model A Tractor T-410 A-6250 P-446 100,575 a 6,242 a* 172,650 9,681 a* 92,700 a 9,245 a* 119,500 a 8,745 a* 292 V50 ua 9,363 a* 212,950 a 4,825 a* 171,880 b 4,872 b 1,093,205 59,973 157,400 a 11,995 a* 154,000 a 12,195 a* 178,200 a 15,092 a* 170,375 b 10,124 b 155,139 b %,823 b 149,069 b 9,645 a* 141,877 b 6,554 b 151,676 b 6,766 b 141,814 b 6,552 b 145,830 b 4,914 b 110,418 a 4,830 a* 43,407 b 1,621 b 1,699,205 99,111 83,909 b 4,636 b 68,810 b 7,932 b 93,781 b 13,510 a* 80,555 b 9,704 b 83,520 b 6,944 b 13,109 b 7,398 b 12,711 b 6,531 b 14,837 b 9,977 b 18,703 b 9,737 b 16,625 b 9,606 b 12,285 « 2,553 ¢ 16,380 ¢ 7,241 ¢ 6,734 ¢ 5,250 ¢ 506,086 9,287 100,705 9,191 «¢ 13,509 ¢ 7,795 ¢ 7,844 ¢ 19,512 ¢ 5,360 ¢ 8,041 d 32,295 d 2,720 a® 8,435 ¢ 44,503 ¢ 12,508 ¢ 55,306 ¢ 14,878 ¢ 67,866 ¢ 13,712 ¢ 69,537 ¢ 13,491 ¢ 96,098 ¢ 11,760 ¢ 89,353 ¢ 9,445 ¢ 117,348 ¢ 3,444 © 118,145 ¢ 5,699 « 119,984 ¢ 120,448 843,456 15,875 1597 (Exhibit Z-3, Page 15) PLAINTIFF'S EXHIBIT D. Production of Camshafts. For the Period from June 16, 1925 to February 3, 1931. Model T Model A Tractor Month T-410 A-6250 F-446 January WD cicccoes 1,222 (ce) 165,184 (¢) February 66 = seeeeves 160,960 (¢) March et eeeneee? 175,960 (¢) April geeeeves 180,249 (¢) May OO ewevewes 194,724 (¢) June ee lpeeereus 186,277 (¢) July 1 ogtetiany 198,713 (¢) August WTI T Tr 198,044 (¢) September OF ebcesees 154,561 (¢) October ee seeeuwes 174,545 (¢) November 7 syeeneve 109,155 (¢) December OF peeeeeus 63,601 (¢) Totals, SD ccccnere 1,222 1,961,973 January SOOO cevesvis 90,529 (e) February Fp weneete 114,714 (¢) March oe peceueus 156,386 (¢c) April Ff weseneee 192,275 (¢) May f) seueeses 186,961 (e) June OF pheuavun 169,489 (e) July 7 wtxeeees 56,702 (e) August oO - teesvers 103,200 (e) September cre rrr. 94,616 (e) October der rrrcer 79,907 (e) November 6. Levceete 73,022 (e) December Oe peveeues 52,616 (e) Totals, | ere rer 1,370,417 January, errr ree 32,700 (e) February OF cowceees 5,166 (e) Totals Se weceecey 37,866 GoanG Tetale .ccccccvevss 3,420,166 4,222,999 275,664 a. Quantities obtained from cost summary cards, Form 3566. b. Quantities arrived at by adding motors produced and camshaft service sales. Quantities obtained from minute cost summaries, Form 2202B. Quantities obtained from Productive Labor Reports, Form 3567. Quantities obtained from minute cost summaries, Form 2202B and pro- rated between camshafts produced on Melling cam lathes and Ford Cam mills, gas Note: All of the above quantities and notes (excepting for those marked ‘*a’’) are taken from Defendant’s Exhibit No. 4 Amended. Those marked ‘‘a*’? are taken from cost summary cards discovered and supplied subse- quent to preparation of Defendant’s amended accounting and have been accepted in Defendant ’s accounting presented at hearing beginning January 16, 1939. These corrections, covering 13 months, considerably increase the production shown by Defendant for each month corrected, the total addi- tions totaling more than 21 percent of the production previously reported for the months corrected. Quantities obtained by method ‘‘b’’ do not recognize variations in in- ventories and are therefore estimates. Quantities obtained by method ‘‘e’’ are likewise estimates, being the balance of production after assigning to Pioch machines production obtained by multiplying total hours operated by hourly production of these machines as shown by a time study dated July 1 of the following year. No separate record was kept, or at least none was presented, of the respective production by Melling and Pioch machines during the period when both types were available. 7-410: January February March April May June July August September October November January February March April May June July August September October November April May June July August September October November January February March April(?) June November Inventory March August November April, October October, Cost Summary Cards ae November, ‘é 12/31/26 1928 ‘se sé 1929 sé 1928 1930 7 4 se sé sé oe sé F-1 ee “e ce F-2 ae ‘6 “6 ‘“ “6 F-3 ‘6 “c “ ‘6 F-4 sé se sé sé sé F-5 ‘6 F-6 sé “e sé sé sé sé sé sé sé sé sé F-7 (Revised) F-8 Production 146,400 158,100 184,100 178,450 188,150 185,000 180,750 191,450 168,900 193,500 180,900 226,850 216,450 218,250 208,050 176,800 142,700 142,450 148,900 155,050 152,950 107,050 197,000 187,240 201,150 172,650 92,700 119,500 222,950 212,950 157,400 154,000 178,200 173,700(?) eeneee oeeeee PLAINTIFF'S EXHIBIT E. Tabulation of Cost Summary Cards. Sheet 1 of 2 159 (Exhibit Z-3, Page 17) Cost per Camshaft Labor 3269 3014 2902 .2997 3023 .3162 3135 3220 3485 3393 .3280 3299 3201 3180 3330 3337 3239 3163 .3088 .2974 3295 3300 3002 2995 .3066 -2960 3235 3106 3195 -3084 3051 -2934 3011 .2773 2831 2802 4926 4318 7143 7143 Burden 3171 2924 .2467 .2298 2267 2055 2195 2737 .3137 .3393 .3280 3299 3201 3085 3230 3237 3239 3479 3551 3331 3625 3630 3302 -2646 .2894 3271 2955 2837 2793 2570 3356 3521 3613 3952 4204 4078 HTA2 3950 7737 7737 Total 6440 5938 5369 5395 5290 5217 5330 5957 6622 .6786 6560 6598 6402 6265 .6560 6574 6478 -6642 6639 6305 -6920 .6930 6304 5641 5960 6231 6190 5943 5988 5654 6407 6455 6624 6725 7035 6880 1,0668 8268 1.4880 1.4880 ial 1810 (Exhibit 2-3, Page 18) PLAINTIFF'S EXHIBIT E. Tabulation of Cost Summary Cards. Cost per Camshaft cost Summary Cards: Production Labor Burden Total ————— eee A-6250 Inventory 12/31/27 (Estimate) Ex. F-10 .6362 .6534 1.2896 Special 2/20/28 = 1173 4277 5450 March 1928 7 8 32,295 1.1165 1.3014 2.4179 Jone 1-25“ ee 6o8 38,664 1.0003 1.1203 2.1206 August ‘6 oc FY 96,098 8625 .7890 1.6515 October 66 vig ii 117,348 .7769 .7980 1.5749 November ‘‘ ee #9 118,145 .7455 .8075 1.5530 January 1929 en 165,184 .7920 .7524 1.5444 March $6 ‘6 E-1 175,960 7251 .7396 1.4647 May 66 ace 194,724 .6880 .7086 1.3966 July 66 Oe 198,713 6246 .7120 1.3366 September ‘* "¢ 6D} 154,561 .6036 .7666 1.3702 October 66 ally 174,545 .5743 .7466 1.3209 January 1930 "eee 90,529 5519 .9106 1.4625 March e6 li 156,386 5895 .8548 1.4443 May 66 ae 197,713 5668 .7652 1.3320 August 66 e 119,328 5705 9185 1.4890 October 66 se 646 93,179 5636 .8398 1.4034 March 1931 = = 96,815 5486 9271 1.4757 F446: May 1925 Ex. F-11 12,716 .7266 1.0563 1.7829 June sé es 10,485 .8006 1.2520 2.0526 July ¥e s 6 9,681 .8140 1.4303 2.2443 August sh 6 9,245 7525 1.2479 2.0004 September ‘ . e 8,745 -7356 1.2410 1.9766 October ii ‘6 6 F-12 9,363 .7486 1.2642 2.0128 November ‘‘ es 8,825 .6757 1.3316 2.0073 January 1926 ‘6 P13 11,995 .6789 1.0184 1.6973 February si ald 12,195 .6428 .8678 1.5106 March sh “ 15,092 .6594 9891 1.6485 June ag iad 9,645 .7601 1.4898 2.2499 November ‘‘ sills 4,830 .6642 2.5833 3.2475 December(?) ‘‘ oe (?) .7122 2.0366 2.7488 Inventory 12/31/26 eo 14,475 .7281 1.8547 2.5828 March 1927 s 13,510 .6268 .8360 1.4628 November e ?- (?) .6563 1.0043 1.6606 March 1928 ee 2,720 .7642 1.3450 2.1092 Blank ¢ @ + i eeeev | : bes ed Tere) — PLAINTIFF'S EXHIBIT F. Defendant’s Proration of Production Between Melling and Pioch Machines. Machines Available Production Assigned 1513 (Exhibit Z-3, Page 19) Melling Pioch Shifts Melling Pioch Total 1930 to Feb. 3, 1931: 190 (last half) ...-+++-eeeee 21 1 32 (used) 186,961 10,752 197,713 MW sesnnceeneaeeneceeeeroes 21 1 62 169,489 20,832 190,321 vt ETE 21 1 22 56,702 7,392 64,094 et! sesneneeneeneneeeeeaeees 21 1 48 103,200 16,128 119,328 Sh ceseessaceeuenersesseres 21 1 47 94,616 15,792 110,408 Tee 21 1 39.5 79,907 13,272 93,179 Mh ceuasteenbennarenerneess 21 1 36 73,022 12,096 85,118 FR ceeevadeneunecrrerssress 21 1 26.5 52,616 8,904 61,520 bili cuseceesevesesucereesseses 313 816,513 105,168 921,681 no, 1931 (first half) ...-.-+++++++ 21 2 9 6,048 me (last 88) ceeeeeeeeeeee 21 4 18 24,192 GAM e aicabeutiineviveesess 27 32,700 30,240 62,940 Ss aaah B WED cvcecssccrcecesens 21 4 5 5,166 6,720 11,886 Totals, 5-16-30 to 2-3-31 ......... 345 854,379 142,128 996,507 re. 4 to March 15, 1931: eT ME vvscssyerevecrerss 13 6 me, “seante 75,572 75,572 MMe: FF ccsciveseccerryses 13 6 iS ee 39,065 39,065 Sats 04 te FIRES o0 ccc cc reece ee ee 114,637 114,637 Record of Shifts Operated from May 1, 1930 to March 31, 1931 and of Defendant’s Claimed Production with Pioch Machines. Days operated Sshifts 2shifts 1 shift Total AMUN yc cserisreserevestresseressriecesssseessersreeees 9 2 2 33 by 16 00 $0, 1000 co.cc cecccccececevevecersesessccseseooseeneaeess 4 2 3 31 4 5 64 (a) 5 4 62 1 2 22 4 4 48 5 4 47 4 5 39.5 (b) 4 4 36 3 3 26.5 (b) 3 27 2 37 0 41 EEE — ST a ete | 1512 (Exhibit Z-3, Page 20) PLAINTIFF'S EXHIBIT G. Evidence of Abandonment of the Use of Melling Cam Lathes for Rough Turning the Cams upon Camshafts. From Photostatic Copies of Defendant’s Permanent Inventory of Machine Tools—Exhibits Y-1 to Y-24. Manufac- turer’s Date sent to Date Number Track 297 Salvaged Other Data 111 2- 5-31 6-18-31 114 2- 5-31 6-18-31 113 2- 5-31 6-18-31 115 2- 5-31 6-18-31 229 9-13-32 4-11-30 (a) (Still at Highland Park) 122 11- 9-28—Sold to Cork, Ireland 225 11-22-34 10- 7-31 (b) Believed used to turn pump eccentric 214 11-22-34 226 11-22-34 110 3-16-31 6-18-31 109 3-16-31 6-18-31 112 2- 5-31 6-18-31 106 3-16-31 6-18-31 116 2- 5-31 6-18-31 118 3-16-31 6-18-31 119 2- 5-31 6-18-31 2- 4-29 Sold to Continental Motors Corpn. 121 6- 8-36 4-23-31 Repurchased—Sent to Highland Park Y-18 (a) 215 6- 8-36 12- 5-834 Made available at Highland Park 10- 7-31 (e) Y-19 (b) 227 9-13-32 11-22-34 5- 5-30 (d) 108 3-16-31 6-18-31 107 3-16-31 6-18-31 117 3-16-31 6-18-31 ‘*Replaced by a Pioch Machine’’ 120 2- 5-31 6-18-31 ‘*Replaced by a Pioch Machine’’ 105 11- 9-28 Sold to Cork, Ireland ' (a) Moved 4-11-30 from J-8 in motor building to K-8 in motor building. (b) “ee 10- 7-31 é sé se sé sé sé sé se sé oe (¢) “ce sé “oe oe “e “é ae se sé sé “ce (d) “ce 5- 5-30 sé oe sé “eé oe e ce “é ae “e K is stated to be a machining or operating department, but information was not available as to whether or not a part of Dept. 410. Melling Lathes that may have been available from February 4 to March 15, 1931. Machines marked (a) above 11 Machines marked (b) above 2 13 — machines could readily have produced the output of camshafts from February 4 to March 15, me as wr Pag TF RAY ee PR es Sn oh 1972 PLAINTIFF’S EXHIBIT H. Additional Savings Based upon Failure of Defendant to Substantiate Claims of Production by Pioch Machines During Periods When Both Melling and Pioch Machines Were or May Have Been Available. 12-31-30—105,168 (a) A-6250 camshafts 316 to at (Productive Labor saving per camshaft) ............- $.086694 (b) $ 9,117.43 at (Burden "= Te bevvestuduene .134914 (b) 14,188.64 at (Total ic " " } vcesvcsrveese .221608 (b) $23,306.07 LI to 9.3-31—36,960 (a) A-6250 camshafts at (Productive Labor saving per camshaft) ..........--- $.087575 (b) $ 3,236.77 at (Burden wii - " ) cecedsuseeese .164675 (b) 6,086.39 at (Total sb sa - D sevevvesveccess .252250 (b) 9,323.16 Total from 5-16-30 to 2-3-31 11... eee e cece reece eeeeees (Item one) $32,629.23 Xo reeords were furnished by defendant, and apparently none vere kept, showing actual respective production of shafts on The Melling Lathes and The Pioch Machines. Since there were 11 to 13 Melling Machines available (see Ex. G of this report) for turning all production from Feb. 3-1931 to March 15-1931, the defendants claimed production in Pioch Machines during this time is not substantiated. 24 to 3:15-31—114,637 (a) A-6250 camshafts at (Productive Labor saving per camshaft) .......sece0. $.087575 (c) $10,039.33 at (Burden ” " “ ) vesccoveeeess 164675 (c¢) 18,877.85 at (Total - “ sod ) svervovernves .252250 (¢) (Item two) $28,917.18 a) See Exhibit F in this report. b) See Exhibit B in this report ¢) Same saving per shaft used as during the period from 1-1 to 2-3-31. Note: The inclusion of the saving shown upon this sheet depends: In Part upon the lack of sufficient actual records kept by defendant. In Part upon acceptance of March 15, 1931 as the date upon which the use of the Melling lathes was abandoned. ee OD US ee } RE BOs 0 li aes wre e CEES SE De pat b 5 ii a Saad * 1517 EXHIBIT Z-5. DEPRECIATION COST OF FORD CAM SHAPERS OF MODEL T TYPE ) AND OF MELLING CAM LATHES—FROM JUNE 16, 1925 TO FEBRUARY | 3, 1931 AND FROM FEBRUARY 4, 1931 TO MARCH 15, 1931. ford Shapers—Model T Type: Depre- Amounts for Periods ciation Total for Y% To % To Rates Periods T-410 A-6250 T-410 A-6250 5.16.25 to 12-31-25 (6% months)... 9.5% 6,436.56 100.00 6,436.56 Year 1926 .--ccececrccccccrserre® 9.5% 12,160.63 100.00 12,160.63 11.97 to 10-31-27 (10 months) .... 10.5% 11,656.28 100,00 11,656.28 November, 1987 -ccccccccseceeeeee 10.5% 1,165.63 82.79 17.21 965.03 200.60 December, 1927 vncececcrerccceees 10.5% 1,165.63 51.81 48.19 603.91 561.72 Fear 1998 accccccecocerccccrrerss 10.5% 16,614.74 12.50 87.50 2,076.84 14,537.90 1.1.29 to 1-15-29 (% month) ....-- 10.5% 824.42 1.66 98.34 13.69 810.73 1.15.29 to 1-31-29 (% month)....... 10.5% 824.42 100.00 824.42 1.99 to 12-31-29 (11 months)..... 10.5% 18,137.28 100.00 18,137.28 Fear 1980 ..cccccccccccccscseres® 10.5% 23,664.57 109.00 23,664.57 11.31 to 2-3-31 (1-1/10 months).... 9.0% 1,859.36 100.00 1,859.36 94,509.52 33,912.94 60,596.58 »4.31 to 3-15-31 (1-4/10 months)... 9.0% 2,366.46 100.00 2,366.46 96,875.98 33,912.94 62,963.04 Melling Cam Lathes: eo. 6-16-25 to 12-31-25 (6% months)... 9.5% 3,365.57 100.00 3,365.57 we Year 1926 ....csccecceccererccces 9.5% 6,208.35 100.00 6,208.35 | 1.197 to 10-31-27 (10 months)..... 10.5% 5,718.21 100.00 5,718.21 " November, 1927 ...---++eeeereerrs 10.5% 571.82 82.79 17.21 473.41 98.41 ~ December, 1927 ...----+eeeerrrere 10.5% 571.82 51.81 48.19 296.26 275.56 E Year 1928 ....ccccceeccccseescree 10.5% 6,861.85 12.50 87.50 857.73 6,004.12 * 1.1.29 to 1-15-29 (4% month).....-- 10.5% 354.17 1.66 98.34 5.88 348.29 1-15-29 to 1-31-29 (4% month).....- 10.5% 354.17 100.00 354.17 2.1.29 to 12-31-29 (11 months).....- 10.5% 7,791.84 100.00 7,791.84 Year 1930 ....cccccccccccccerceses 10.5% 10,138.51 100.00 10,138.51 1-1-31 to 2-3-31 (1-1/10 months).... 9.0% 796.60 100.00 796.60 42,732.91 16,925.41 25,807.50 2.4-31 to 3-15-31 (1-4/10 months)... 9.0% 1,013.85 100.00 1,013.85 43,746.76 16,925.41 26,821.35 - 1518 DEPRECIATION OF T-410 CAM SHAPERS AND OF MELLING CAM LATHES REQUIRED FOR PRODUCTION OF F-446 SHAFT. From June 16, 1925 to March 31, 1928. Shapers: Assuming that 114 times as many shapers as Mell- ing Lathes would have been required (same pro- portion as for T-410). No. of shaperS ...--ccccccccccecceceerecseeeees 3 Cost of shapers 3 x $6,000.00 ......--eeeereeeee 18,000.00 Percent Depreciation: —— 6-15-25 to 12-31-25 ..ccecececcccccccccecens 5.15 927.00 GO cic dc Cede EFECEPEETOTEEAEFOEEED IP EEHEES 9.50 1,710.00 pT POOP PURE PTET TTT CUA 10.50 1,890.00 Ist quarter of 1928—10.5 + 4 ueeeeeererrere 2.625 472.50 4,999.50 : ! Melling Cam Lathes: Brass Tag No. ; 32067 Cost 2- 9-24 ..ccceccccvccees 4,121.57 ) 37001 $6 F-29024 wcccccccscvecres 3,973.19 8,094.76 | Percent ; Depreciation: 4 6-15-25 to 12-31-25 ...-.eeeccccvccsceeevcces 5.15 416.88 j | Pr errr ee 9.50 769.00 2 NOE cb ke ERERE OEE EA OEELCESEOEEEOOEEOS 10.50 849.95 Ist quarter of 192B—10.5 — ‘ON LIGIHX] SSSILNIVI SBOVAOVd GNV SZLON gO AMZAITAG AHL 40d WIGVIVAVY BZAV SUAONASSAW NOINN NAAZLSaM re WHOAWL «O ALZALTICC GuOdai «salon ej WAGNSS OHO TEVHOIN ONV VHUVAVHON HSHOST TIVNCAH WILLS HINGLENIN sOXMONOL ATHY LOadKE TIwus dOls AMVGROO MNCK HSI" LM WIWLAS AO SAILITIAISsOd SSAC I~ CL SKEWHCLAV MOK HLTH SONTETS C7 AGSCACHA SINS wLIL OLICMONd Tdedad LNG OVITIG Cou AC Yau Suldvd dOls ANVAMOO UNOA LSNIVOV LINE FIIs Of GHLONVLSAT NBs FAVA del * THA Ns UO ROMEO TL GAY GBYd UCL STINVANOO TTIAONCLAY U.HLO ANY SHO ox QVMESS HOIs. LNIMATLLSS ONAN TONCO GYH WENMC LNGLVd ANVENCO FLY Mog WOMMOS STVSddV JO LUNCS LINOWIO HIXIS C= VOICAPCY CNY SBHIVT Live. Ve CZ ONLLYT2U NUWHL JHONVN LHOIS O8L uNCs BATA INO VEANAN LNadVt xccio NYDIHCI” J IOULS” THO. RYN NOTIN DL KNVINOD UOLS CHCS SE tN, GEE Oc6l ST MEGMZAON NISNOOSIN FILIVATIN paw oy poesBe Aqasay 210 yonyen ‘foasy 3209 wo musa} 2y) 4 Profgne “aBoesous Bupno]]of *Y) PUPS AMBOISBUE-ED1A 18U14 “MBAR TUM DS 2 4M2G1SBUE “NOLIBYS BHOOMEN ONeounuwOD Mery) F 6s porriweTes - ao}Aso8 40 S8B]9 9909 Pinoys eudsIe a31l4 3WiL 31137 e3u37 ON3 ¥33™ LHOIN ' PESTER) 3OvVSS3IW 376v) LHOIN : BHD ’ 03443430 34137 AWD | | NY “A S “A Bava W143 wvso3734 . 94d uO HSvD]| “ON S sussas= Ww sect . §SBO 3I1ABIS 40 SEV? pe APE OGM D LIL ELE BEA MEE RLS WL ILLES ORES LE PORI NS SIRS REG NEA eee WO ON LISIHXI SdILLNIVE VIAv) "%O HAVUDATAL Ad SI AANOW GNAS OL AVM LSHIVS GNV Lets fein > WHEL SpObRMKaG SL SSA =Wd OZ BMIM BLWALYHd BIAO G38Zh1 134 95 sOL0% Tdds sMOA =n3s IT o UNInsvV siete, =15VHOIW F VEWAWRON Banos) Wendin ahllos HP d9S_ Sb HIN LIGgL35G=LISTWI xi FobtV OF sim ‘commer “SPIg TVET “VEN “PIA Ftd Ie P2A1oI0H GEL, CEVCNV 195 ‘stem gs 60 mney = SeRSERND 3 ipees jp Sum on POR Some Sup PR SuPRCBUNm evRrR) Sw SRP Ou WR HY TL PONE PAL _ r—_ ti pene ses NOLEN? SROIM EN | . XN soupre aya Fut NOINS2} ett apyrans © AQ Poeoip “ull sagnesey> poss 33 “op sat ssayun wes “Qe 20 Wests] , NUALSAM boc .3 GLI DMINWEONOO RULLSZDONS GNV WSIDLLIUD AG ANVdWOD JHL MOAV4A OL GALSAIONGU AUV SNOULYd PLAINTIFF'S EXHIBIT RR ———_—__—- THE GORDON FORM LATHE Co. AGREEMENT FILE MEMORANDUM OF AGREEMENT made and en- tered into by and between GORDON FORM LATHE COMPANY, an Ohio Corporation, hereinafter called “GORDON”, and CHRYSLER CORPORATION, a Dela- ware corporation, hereinafter called ‘‘CHRYSLER’’. WITNESSETH Wuereas, Gordon is the owner of the entire right, title and interest ir and to Letters Patent of the United States No. 1,542,803, dated June 16, 1925, covering an improved Lathe; and Wuereas, in an action entitled ‘‘Gordon Form Lathe Company versus Walcott Machine Company”’, decided by the United States Cireuit Court of Appeals for the Sixth Cireuit on April 12, 1929, said patent as to certain of its claims was held valid and infringed by certain cam turning and crank shaft contour lathes heretofore manu- factured and sold by the Walcott Machine Company of Jackson, Michigan; and Wuereas, Chrysler Corporation has heretofore pur- chased and used, and is now using certain of said in- fringing lathes manufactured by the said Walcott Ma- chine Company and now desires to free and release said lathes for the future from infringement of said Letters Patent. Now, Tuenerore, for and in consideration of One Dol- lar ($1.00) by each of the parties to the other in hand paid, receipt whereof is hereby acknowledged, and other valuable considerations, each of the parties to the other moving, the said parties have covenanted and agreed as follows : First: Gordon hereby releases and frees from in- fringement of said Letters Patent of the United States No. 1,542,803, the hereinafter identified cam _ turning lathes, now in the possession of said Chrysler Corpora- tion, said release to take effect as of April 12, 1929, and to continue throughout the life of said lathes; the lathes so released being the following : (CurysLter NUMBER Maxker’s Serta, NuMBER C. M. 3553 127 C. M. 3016 101 C. M. 5805 182 H. 837 200 H. 838 202 H. 2841 213 E. 3155 53 E. 4564 136 9860 65 9920 57 10141 55 10150 54 11635 89 13035 126 17079 161 17112 162 Seconp: Gordon agrees that it will issue a similar li- ecense unto Chrysler for such other and further machines as Chrysler may acquire and request a license for upon payment by Chrysler to Gordon of the sum of Three Thousand Dollars ($3,000) for each such machine; pro- vided, however, that if any such machine shall be in- tended for use upon shafts for less than six cylinder machines, the payment required shall be only Two Thou- sand Dollars ($2,000) per machine. Tup: In consideration of the foregoing release, the said Chrysler Corporation agrees to pay Gordon, upon execution of this agreement, the sum of Forty Six Thou- sand Dollars ($46,000), such payment being at the rate of Three Thousand Dollars ($3,000) per lathe, except as to machine numbers 9860 and 9920, which are intended for use in turning cam shafts for four cylinder engines, the rate for such machines being Two Thousand Dollars ($2,000) each, and in addition to grant Gordon a non- exclusive, non-assignable license under Letters Patent of the United States No. 1,246,191, dated November 13, 1917. Fourtu: it is distinctly understood and agreed that the release under clause First hereof applies only to the use of said lathes subsequent to the effective date of said release, viz:—April 12, 1929; Gordon expressly reserving unto itself, its suecessors and assigns, any and all claims it now has, or may hereafter acquire, for, or arising out or by reason of the infringement of its said patent by the said Chrysler Corporation through the use of said lathes or any other infringing lathes at or during any time prior to April 13, 1929. Firtn: It is further agreed that in the event of litiga- tion directed to a recovery for infringement of said pat- ent No. 1,542,803 prior to April 13, 1929, neither party hereto shall in any wise use this agreement as affecting the measure of damages for such infringement. Sixt: It is further agreed that Gordon, or its duly appointed representative or attorney, shall have access to the manufacturing plants of Chrysler following the execution of this agreement for the purpose of verifying the number of infringing lathes in use or in the posses- sion of said Chrysler Corporation and the identifying markings thereon, as set forth under clause First hereof. Seventu: The said Chrysler Corporation acknowledges and acquiesces in the validity of said Letters Patent No. 1,542,803, but only as to those claims sustained in said litigation, and covenants and agrees that it will not in any proceeding, either in equity or at law, directly or indirectly, deny or contest its validity or assert its in- validity. 1929 Ercutx: Gordon further agrees that it will not grant a similar license or release to any other person, firm or corporation for a sum of money less than that herein agreed upon per machine; it being understood and agreed that if this undertaking shall be violated, then Chrysler shall be entitled to a similar rate both as to machines herein enumerated and as to any other machines which it may hereafter request license for. Nintu: It is mutually understood and agreed by and between the parties that in the event said patent No. 1,542,803 shall be sold or otherwise disposed of to any person, firm or corporation for the benefit or in consid- eration of money furnished by any group of automotive manufacturers, Chrysler shall be given an opportunity to join with said group of automotive manufacturers, and to apply any moneys paid to Gordon under the terms of this agreement toward the purchase price of said patent; it being understood, however, that in the event Chrysler shall elect to so join with such group of manv- facturers and have said moneys applied to said purchase price, then the license and release herein granted shall be void and of no effect. Tentu: This agreement shall be binding upon and inure to the benefit of the respective successors and as- signs of the parties hereto. Signed, sealed and delivered this 17th day of July, 1929. GORDON FORM LATHE COMPANY Attest: By Cxas, Gorpon, ~caancemaransansesnronernTisre0e” President. Secretary. CHRYSLER CORPORATION Attest: By K. T. Kewzer, —_ Morrison, Vice President. Secretary. Copy December 16, 1929 The White Motor Company, 842 E. 79th Street, Cleveland, Ohio. Attention—Mr. Cooper RE: Gordon Cam Lathe Patent Dear Mr. Cooper: I have been expecting to hear from you on the matter of settlement which we discussed in Mr. Richey’s office some few weeks ago. We have now instituted some suits and are preparing to extend our activities in that direc- tion and would like to have a definite expression from you as to what The White Company proposes to do in the matter. Very truly yours, BOTTUM HUDNALL LECHER MeNAMARA & MICHAEL By JWM HH 7s 9 #HH LJB 7/19/38 Copy THE WHITE MOTOR COMPANY Manufacturers of WHITE TRUCKS AND BUSSES Warrer ©. Waite, President Grorce H. Ketty, Treasurer T. R. Dan, Secretary Cleveland, Ohio December 24, 1929. Mr. J. W. Michael, Bottum, Hudnall, Lecher, McNamara & Michael Trust Company Building, Milwaukee, Wis. Re: Gordon Cam Lathe Patent Dear Sir: Your letter of December 16, 1929, has been received. We would like to effect a settlement both for the past and the future, and are herewith submitting the data which you requested during our discussion of this sub- ject in Mr. Richey’s office. Number of crankshaft contour machines owned by the White Motor Company... Number of cam cutting machines owned by the White Motor Company... 2 (Both of the 4-cylinder camshaft type) Number of cams cut prior to July 1, 1925 0 Number of cams cut from July 1, 1925, to June 12, 1929 (37,919 camshafts)..........803,352 Number of cams cut from June 12, 1929, to Dec. 21, 1929 (3,013 camshafts ).......++ 24,104 We do not believe that we were given proper and ade- quate notice of infringement prior to June 12, 1929, but in order to effect an early and complete settlement of this matter we are willing to pay the Gordon Form Lathe Company the sum of Five Thousand Dollars ($5,000), the same to cover both past damages and the future re- lease of our two machines. Please let us have an early reply. Yours very truly, THE WHITE MOTOR COMPANY /s/ R. M. Cooper Patent Engineer. R. M. Cooper RMC:hb Copy December 27, 1929 The White Motor Company, 842 E. 79th Street, Cleveland, Ohio. Attention—Mr. R. N. Cooper, Patent Engineer Dear Mr. Cooper: In view of agreements, both executed and pending, we are not in a position to release your infringing machines for less than the sum of $2,000.00 per each 4-cylinder cam shaft type nor, in respect of the past, are we in a position to accept less than *%ths of a cent per cam. Your present offer of $5,000.00, as embodied in your letter of December 24th, covers the $2,000.00 release for each of the two machines you report but only leaves $1,000.00 to apply on the past, which figures about 1/3 of a cent per cam. At %4ths of a cent per cam, the total amount, including the release of each machine and the past, would, on the statement you have submitted, amount to $6,455.92. We are agreeable to settling the matter with you on this basis to cover both the past and the release of the machines for the future or, if you prefer, are agreeable to releasing your two machines on the basis of $2,000.00 per machine and reserving the past for future determina. tion. We have every reason to believe that %4ths of a cent per cam is but a very small percentage of the actual savings resulting from the use of the Gordon invention. Please let us hear from you promptly. Very truly yours, BOTTUM HUDNALL LECHER MceNAMARA & MICHAEL By JWM HH c. c. to Mr. Richey and Mr. Gordon 1535 Copy THE WHITE MOTOR COMPANY Manufacturers of WHITE TRUCKS AND BUSSES Water C. Waite, President Greorck H. Ke.iy, Treasurer T. R. Danw, Secretary Cleveland, Ohio January 16, 1930. Mr. J. W. Michael Bottum, Hudnall, Lecher, McNamara & Michael Milwankee, Wisconsin. Re: Gordon Cam Lathe Patents Dear Sir: We have decided, in case we can secure a satisfactory agreement, to accept your offer to release our two ma- chines on the basis of Two Thousand Dollars ($2,000) per machine, leaving the matter of past infringement for future determination. We, therefore, request that you submit to us an agreement covering such release. An agreement similar to the one which the Gordon Form Lathe Company executed with the Chrysler Cor- poration will be acceptable to us, with the addition of a clause which will permit us upon payment of an addi- tional One Thousand Dollars ($1,000) per machine to convert either or both of our machines into machines for use upon shafts for six or more cylinder engines. Yours very truly, THE WHITE MOTOR COMPANY /s/ BR. M. Cooper R. M. Cooper RMC:hb Patent Engineer. ec—Messrs. Church Dahl 36 (Copy) January 18th, 1930 The White Motor Company Cleveland Ohio Attention—R. M. Cooper, Patent Engineer. Gentlemen : Replying to your letter of January 16th, we have prepared and enclose an agreement covering the re- lease of your two machines. While we are quite willing, as stated in one of our previous letters, to leave the matter of past infringe- ment for future determination, we feel that you should know that we will be unwilling to settle with you for the past on the 3/4ths of a cent basis if we are forced to file suit. In such event, we shall insist upon and en- deavor to collect all that the law allows, which, accord- ing to our calculations, is substantially greater than the rate of 3/4ths of a cent per cam. Please execute both copies of the agreement and return to us with your check for Four Thousand ($4,- 000.00) Dollars. We shall then have the agreement executed by the Gordon Form Lathe Company and one copy returned to you. Very truly yours, BOTTUM HUDNALL LECHER McNAMARA & MICHAEL By: JWM HH encls. THE WHITE MOTOR COMPANY Manufacturers of WHITE TRUCKS AND BUSSES Watter C. Wuire, President Georcek H. Ketiy, Treasurer T, R. Daut, Secretary Cleveland, Ohio February 4, 1930. Mr. J. W. Michael Bottum, Hudnall, Lecher, McNamara & Michael Milwaukee, Wisconsin. Dear Sir: Please find herewith, duly executed by us, two copies of an agreement for the future release of our two cam turning machines. Please also find enclosed two copies of an agree- ment releasing us from all claims and demands for past infringement. The enclosed agreements are identical with the agree- ments submitted to us, except that the agreement for the future release of our two machines has been amended, for the purpose of eliminating an intervening period between the effective dates of the two agreements, to become effective on the same date as the agreement releasing us from past infringement, viz., December 21, 1929. We believe that the above amendment will meet with your approval, and are enclosing herewith our check for Six Thousand Four Hundred Fifty-five Dollars and 1537 ninety-two cents ($6,455.92), the sum of the amounts set forth in the two agreements. Yours very truly, THE WHITE MOTOR COMPANY /s/ RR. M. Cooper R. M. Cooper Patent Engineer. RMC :hb Enes. (Copy) February 8th, 1930. Tue Waite Motor Company Cleveland Ohio Attention—Mr. Cooper, Patent Engineer re: Gordon Patent Gentlemen: Your letter of February 4th, enclosing signed agree- ments and check in the above matter, was duly re- ceived. The agreement and the release for the past have now been executed by The Gordon Form Lathe Com- pany and the originals thereof are enclosed to you herewith. The executed duplicates are retained for onr files. The Secretary of The Gordon Company is located in Cincinnati and we have not deemed it necessary to forward the papers to him for signature, but will do so if you insist. The Secretary’s signature has not appeared on previous agreements of the same char- acter and, of course, is not necessary. Thanking you for your cooperation in this matter, we remain, Very truly yours, BOTTUM HUDNALL LECHER MeNAMARA & MICHAEL JWM HH By: Encl. (Copy) THE WHITE MOTOR COMPANY Manufacturers of WHITE TRUCKS AND BUSSES Warter C. Wuire, President Georce H. Ketiy, Treasurer T. R. Dant, Secretary Cleveland, Ohio February 12, 1930, Mr. J. W. Michael Bottum, Hudnall, Lecher, McNamara & Michael Milwaukee, Wisconsin. Re: Past and future infringement of the Gordon Patent 1,542,803 Dear Sir: This will acknowledge the receipt of your letter of February 8th, enclosing executed copies of the Agree- ment and Release in the above matter. Yours very truly, THE WHITE MOTOR COMPANY /s/ R. M. Cooper R. M. Cooper RMC :hb Patent Engineer. #4G LJB 7/19/38 FOR AND IN CONSIDERATION of Twenty-four Hundred Fifty-five Dollars and Ninety-two Cents ($2,455.92), the undersigned, GORDON FORM LATHE COMPANY, an Ohio Corporation, owner of the entire right, title and interest in and to Letters Patent of the United States No. 1,542,803, dated June 16th, 1925, cov- ering au improved Lathe, hereby releases and forever discharges THE WHITE MOTOR COMPANY, an Ohio Corporation of Cleveland, Ohio, from all claims and de- mands for past infringement of said patent No. 1,542,803, by reason of its use and the Two (2) 4-cylinder cam shaft type infringing lathes identified in Agreement of even date herewith, releasing said machines for future use. Datep this 21st day of December, 1929. GORDON FORM LATHE COMPANY By Cxas. Gorpon, President. MEMORANDUM OF AGREEMENT made and en- tered into by and between GORDON FORM LATHE COMPANY, an Ohio Corporation, hereinafter called “GORDON”, and THE WHITE MOTOR COMPANY, an Ohio Corporation, hereinafter called ‘‘WHITE”’. WITNESSETH Wuereas, Gordon is the owner of the entire right, title and interest in and to Letters Patent of the United States No. 1,542,803, dated June 16, 1925, covering an improved lathe; and Wuenreas, in an action entitled ‘‘Gordon Form Lathe Company versus Walcott Machine Company’’, decided by the United States Cireuit Court of Appeals for the Sixth Cireuit on April 12, 1929, said patent as to cer- tain of its claims was held valid and infringed by certain cam turning and crank shaft contour lathes heretofore manufactured and sold by the Walcott Machine Com- pany of Jackson, Michigan; and Wuereas, White has heretofore purchased and used, and is now using certain of said infringing lathes manu- factured by the said Walcott Machine Company and now desires to free and release said lathes for the future from infringement of said Letters Patent. Now, Tuererore, for and in consideration of One Dollar ($1.00) by each of the parties to the other in hand paid, receipt whereof is hereby acknowledged, and other valuable considerations, each of the parties to the other moving, the said parties have covenanted and agreed as follows: First: Upon the representation of White that the in- fringing lathes it desires to free and release are for use only upon cam shafts for less than 6-cylinder en- gines, Gordon hereby releases and frees from infringe- ment of said Letters Patent of the United States No. 1,542,803 at the rate hereinafter specified, the following identified cam turning lathes now in the possession of White, said release to take effect as of December 21, 1929, and to continue throughout the life of said lathes: Wurite NumBEr Maker’s SerraL NUMBER 2582 134 1912 157 Seconp: Gordon agrees that it will issue a similar li- cense unto White for such other and further machines as White may acquire and request a license for upon pay- ment by White to Gordon of the sum of Three Thousand ($3,000.00) Dollars for each such machine for use upon cam shafts for six (6) or more cylinder engines and Two Thousand ($2,000.00) Dollars for each such machine for use upon cam shafts for less than 6-cylinder engines. 1541 Tutrp: In consideration of the foregoing release, White agrees to pay Gordon, upon execution of this agreement, the sum of Four Thousand ($4,000.00) Dollars, such pay- ment being at the rate of Two Thousand ($2,000.00) Dol- lars per lathe. It is agreed that White may convert either or both of said machines into machines for use upon cam shafts for six (6) or more cylinder engines upon payment of an additional One Thousand ($1,000.00) Dollars per machine and White agrees that in the event of conversion, it will make such additional payment unto Gordon within Twenty (20) days following the conver- sion. Fourtu: It is distinctly understood and agreed that the release under Clause First hereof applies only to the use of said lathes subsequent to the date of execution hereof; Gordon expressly reserving unto itself, its suc- cessors and assigns any and all claims it now has or may hereafter acquire, for, or arising out or by reason of the infringement of its patent by White through the use of said lathes or any other infringing lathes at or during any time prior to the date hereof. Fier: It is further agreed that in the event of litiga- tion directed to a recovery for infringement of said patent No. 1,542,803 prior to the date hereof, neither party hereto shall in any wise use this agreement as affecting the measure of damages for such infringement. Sixtu: It is further agreed that Gordon, or its duly appointed representative or attorney, shall have access to the manufacturing plants of White, following the exe- cution of this agreement, for the purpose of verifying the number of infringing lathes in use or in the posses- sion of White and the identifying markings thereon as set forth under Clause First hereof. SeventH: White acknowledges and acquiesces in the validity of said Letters Patent No. 1,542,803, but only as to those claims sustained in said litigation, and coven- ants and agrees that it will not in any proceeding, either in equity or at law, directly or indirectly, deny or con- test its validity or assert its invalidity. EicutH: Gordon further agrees that it will not grant a similar license or release to any other person, firm or corporation for a sum of money less than that herein agreed upon per machine; it being understood and agreed that if this undertaking shall be violated, then White shall be entitled to a similar rate, b.th as to machines herein enumerated and as to any other machines which it may hereafter request license for. Nisto: It is mutually understood and agreed by and between the parties that in the event said patent No. 1,542,803 shall be sold or otherwise disposed of to any person, firm or corporation for the benefit or in consid- . eration of money furnished by any group of automotive manufacturers, White shall be given an opportunity to join with said group of automotive manufacturers, and to apply any moneys paid to Gordon under the terms of this agreement toward the purchase price of said pat- ent; it being understood, however, that in the event White shall elect to so join such group of manufactur- ers and have said moneys applied to said put hase price, then the license and release herein granted shall be void and of no effect. TentH: This agreement shall be binding upon and inure to the benefit of the respective successors and as- signs of the parties hereto. Signed, sealed and delivered this 6th day of February, 1930. GORDON FORM LATHE COMPANY Attest: tina abdieteesiinennesneni By Cuas. Gorpon, Secretary. President. Attest: THE WHITE MOTOR COMPANY est: T. R. Daun, By Saunpers Jongs, Secretary. Vice President. 1543 MEMORANDUM OF AGREEMENT made and en. tered into by and between GORDON FORM LATHE COMPANY, an Ohio Corporation, hereinafter called ‘“GORDON”’, and J. I. CASE COMPANY, a Wisconsin Corporation, hereinafter called ‘‘CASEH”’. WITNESSETH Wuereas, Gordon is the owner of the entire right, title and interest in and to Letters Patent of the United States No. 1,542,803, dated June 16, 1925, covering an improved lathe; and Wuereas, in an action entitled ‘‘Gordon Form Lathe Company versus Walcott Machine Company’’, decided by the United States Cireuit Court of Appeals for the Sixth Cireuit on April 12, 1929, said patent as to certain of its claims was held valid and infringed by certain cam turn- ing and crank shaft contour lathes heretofore manufac- tured and sold by the Walcott Machine Company of Jackson, Michigan; and Wuereas, Case has heretofore purchased and used, and is now using certain of said infringing lathes manufac- tured by the said Walcott Machine Company and now desires to free and release said lathes for the future from infringement of said Letters Patent. Now, Trererore, for and in consideration of One Dol- lar ($1.00) by each of the parties to the other in hand paid, receipt whereof is hereby acknowledged, and other valuable considerations, each of the parties to the other moving, the said parties have covenanted and agreed as follows: First: Upon the representation of Case that the in- fringing lathes it desires to free and release are for use only upon cam shafts for less than 6-cylinder engines, Gordon hereby releases and frees from infringement of said Letters Patent of the United States No. 1,542,803 at the rate hereinafter specified, the following identified cam turning lathes now in the possession of Case, said release to take effect as of February 18th, 1930, and to continue throughout the life of said lathes: Case NuMBER Maker’s Serta, NuMBER SW 5081 209 SW 5227 221 Seconp: Gordon agrees that it will issue a similar license unto Case for such other and further machines as Case may acquire and request a license for upon payment by Case to Gordon of the sum of Three Thousand ($3,000.00) Dollars for each such machine for use upon cam shafts for six (6) or more cylinder engines and Two Thousand ($2,000.00) Dollars for each such machine for use upon cam shafts for less than 6-cylinder engines. Tump: In consideration of the foregoing release, Case agrees to pay Gordon, upon execution of this agreement, the sum of Four Thousand ($4,000.00) Dollars, such pay- ment being at the rate of Two Thousand ($2,000.00) Dol- lars per lathe. It is agreed that Case may convert either or both of said machines into machines for use upon cam shafts for six (6) or more cylinder engines upon payment of an additional One Thousand ($1,000.00) Dol- lars per machine and Case agrees that in the event of conversion, it will make such additional payment unto Gordon within Twenty (20) days following the conver- sion. Fourtu: It is distinctly understood and agreed that the release under Clause Fist hereof applies only to the use of said lathes subsequent to the date of execution hereof; Gordon expressly reserving unto itself, its suc- cessors and assigns any and all claims it now has or may hereafter acquire, for, or arising out or by reason of the infringement of its patent by Case through the use of said lathes or any other infringing lathes at or during any time prior to the date hereof. Firra: It is further agreed that in the event of liti- gation directed to a recovery for infringement of said patent No. 1,542,803 prior to the date hereof, neither party hereto shall in any wise use this agreement as affecting the measure of damages for such infringement. Sixtu: It is further agreed that Gordon, or its duly appointed representative or attorney, shall have access to the manufacturing plants of Case, following the execu- tion of this agreement, for the purpose of verifying the number of infringing lathes in use or in the possession of Case and the identifying markings thereon as set forth under Clause Finst hereof. SeventH: Case acknowledges [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385610_0072%3A04. Public record. Not legal advice.