# Appendix — United Mine Workers of America v. Gibbs

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Appendix
- **Published:** January 1, 1966
- **Citation:** 383 U.S. 715

## Text

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.s of America, 313
F. 2d 108 (C. C. A. 6, 1963); White Oak Coal Co., inc. v. United Mine

Workers of America (Opinion May 24, 1963), ... F. 2d ... (C. C. A. 6,
1963); Joe R. Allen et al. v. United Mine Workers of America (Opinion
June 26, 1963), ... F. 24... (CC. C. A. 6, 1963).

SLR BLD LEA RENTPRR SLOAN

— 5la —

Opinion

doing business with Gibbs would not prevent the activity
from constituting a secondary boycott insofar as Gibbs
was concerned, and therefore actionable by him as such.
As stated in the case of Flame Coal Co. v. UMW, 303 F.
9d 39 (C. C. A. 6, 1962).

‘‘This union cannot escape the charge of secondary
boycott because it chose to attack on all fronts at
once, claiming its desire and objective to be the
organization of all involved, whether producers, trans-
porters, or processers of coal. United Mine Workers
of America v. Osborne Mining Co., 279 F. 2d 716,
723.”

Finally, upon the issue of secondary boycott it is con-
tended by the defendant that any union activity here
involved would in no event constitute an actionable sec-
ondary boycott as to Gibbs for the reason that, as mine
superintendent for Grundy, he was not such an ‘‘other
person’’ within the contemplation of See. 8 (b) (4) (B)
as to be the object or victim of a proscribed secondary
boycott, but rather he was a part of Grundy, the primary
employer. The relationship of Gibbs to Grundy, namely
that he was hired as mine superintendent for Grundy
and as a contract coal hauler, is undisputed in the record.
Therefore, whether he or is not such ‘‘other person’’,
the ceasing of business with whom may constitute an
actionable secondary boycott, is a question of law.

If the language of the statute is to be literally inter-
preted, then Gibbs is clearly an ‘‘other person’’ from
Grundy, as would be any officer or employee of Grundy.
However, as stated in Electrical Workers v. Labor Board,
366 U. S. 667:

‘‘This provision could not be literally construed;
otherwise it would ban most strikes historically con-
sidered to be lawful, so-called primary activity.”’

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o2a —

Opinion

Likewise, as noted in Seafarers International Union y.
NLRB (1959), 265 F. 2d 585, when read literally, the
Act would outlaw picketing at the primary employer’s
premises so that the language must be construed in the
light Congressional intent and in the light of the proviso
that nothing in the Act shall be construed to make any
primary strike or primary picketing unlawful.

In support of its contention that Gibbs is not such
‘‘other person’’ from Grundy as to be the object of a
secondary boycott for activities directed at Grundy, the
defendant relies principally upon the case of Seeley y,
Brotherhood of Painters, 308 F. 2d 52 (5 C. C. A., 1962).
In that ease the plaintiff, in one of several counts, alleged
that he had a cause of action against the defendant union
under 29 U. S. C. 187, in that the defendant caused the
plaintiff’s employer to discharge him. The Court, in
holding that the count failed to state a cause of action,
stated that discharging an employee did not constitute
‘‘eeasing to do business with any other person,’’ stating
further, ‘‘We do not think the relation of employer and
employee, including one employed as a supervisor, is that
of ‘any other person’ within Section 158 (b) (4).’’ The
Court reached this conclusion on the ground that ‘‘no
secondary boycott was involved in this ease,’’ which is
rather unsatisfactory reasoning in that it begs the ques-
tion.

The defendant relies upon other authority as requiring
that the plaintiff be a ‘‘neutral’’ before he is entitled
to the benefit of the statutory secondary boycott action.*
That this is not an accurate statement of law is apparent
when it is recalled that 29 U. S. C. 187 (b) provides that

8 Truck Drivers and H. Local 728 v. Empire State Express, 293 F. 2d
414 (5 C. C. A. 1961) cert. denied 368 U. S. 931 (1961):Building Service
Employees v. NLRB, 313 F. 2d 880 (D. C. Cir, 1963): International
Brotherhood of Electrical Workers v. NLRB, 181 F. 2d 34 (C. C. A. 2,
1950).

Opinion

«whoever shall be injured’’ by a secondary boycott may
recover, including the employer with whom the primary
dispute exists. While the word ‘‘neutral’’ may be useful
in identifying a case of secondary boycott in a clear and
classical ease of secondary boycott, little help is needed
in identifying a clear and classical secondary boycott.
The word ‘‘neutral’’ can be misleading in other situa-
tions, as for example where the union strikes on all fronts
at onee, as was the case in Flame Coal Co. v. United
Mine Workers of America, 303 F. 2d 39 (C. C. A. 6, 1962),
where the Court held that such union activity did not
escape the charge of secondary boycott. If two employers
each simultaneously has a dispute with the same union,
they may be neutral as to each other’s dispute, but they
are in no sense neutral as to the union.

While a correct result may have been reached in each
of the foregoing cases relied upon by the defendant as
authority for excluding an employee or supervisor from
the meaning of ‘‘other person’’ in See. 8 (b) (4) (B),
the reasons given for reaching such conclusion are often
unsatisfactory. Reference to the full wording of the sec-
tion will more properly reveal the meaning that must
necessarily be placed upon the words ‘‘other person’’.
When it is noted that the proviso expressly excludes
primary strikes and primary picketing, it is apparent
that employees and supervisors of any struck or picketed
primary employer who may lose their employment are
| not within the meaning of ‘‘other persons’’ and would
have no statutory action for any loss so occasioned.

It is apparent from the foregoing that Gibbs, in his
capacity as mine superintendent for Grundy, would not
be an ‘‘other person’’ as those words are used in the
statute. Although, as found by the jury, an object of the
picketing of Grundy was to cause it to cease employment

4 See cases cited in Footnote No. 2, supra.

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— ia —

Opinion

of Gibbs, and Grundy may have been ‘‘neutral’’ or gee.
ondary to the dispute between UMW and Gibbs, there
also clearly existed a primary dispute between UMW and
Grundy. It follows that the verdict of the jury awarding
damages to Gibbs upon his statutory claim for loss of
employment must be set aside.

It does not necessarily follow, however, that, even
though Gibbs in his capacity as a mine superintendent
and in his claim for loss of employment is not an ‘‘other
person’’ from Grundy, that he is therefore in his capacity
as a coal trucker and in his claim for loss of the trucking
contract not an ‘‘other person’’ from Grundy. The evi-
dence is undisputed that Gibbs was an _ independent
trucker engaged in this business with and for persons
and companies other than Grundy. He did not work
only for Grundy in this respect. It would therefore ap-
pear that in his capacity as an independent trucker he
would be an ‘‘other person’’ from Grundy and would
be entitled to a statutory action under the secondary boy-
cott law upon this claim.

Having determined that the jury verdict should be
sustained as to the statutory cause of action for loss by
Gibbs of his trucking contract, it would follow that the
defendant’s contention that the Court was without juris-
diction of the common law conspiracy action must fail.’
Even though the federal statutory action should fail both
upon the employment and the trucking claim, it cannot
be said that the federal question was plainly wanting
in substance. Under these circumstances, in accordance
with the case of Hurn v. Cursler, #89 U. S. 238, the Court
would retain jurisdiction te dispose of the non-federal
common law claim.

5 United Mine Workers of America v. Meadow Creek Coal Co.. 243
F. 2d 52 (C C. A. 6, 1959) cert. denied 359 U. S. 1013; Flame Coal Co.
v. United Mine Workers of America, 303 F. 2d 39 (C. C. A. 6, 1962).

—

Opinion

Another series of grounds in the defendant’s motion
for a judgment n.o.v. or a new trial are directed toward
alleged errors in the jury verdict in finding that the
defendant conspired to wrongfully interfere with the
plaintiff ’s employment contract and coal hauling contract
with Grundy. It is the contention of the defendant in
this regard that the evidence fails to support the jury
verdict, particularly in view of the legal principles that
(a) the evidence must be clear and convincing for a
labor union to be held responsible in a federal court
action, in view of Section 6 of the Norris-Laguardia Act;
(b) a union is under no legal obligation to disavow un-
lawful acts of its members; (c) welfare assistance given
members, including pickets, by the union does not con-
stitute ratification of any unlawful conduct by such mem-
bers or pickets; and (d) federal law has preempted the
field of non-violent picketing so that no verdict could
be awarded upon a state common law conspiracy charge
not based on violence. The jury was correctly charged
upon all of these matters. The Court is of the opinion
_ that there is evidence in the record, when the testimony
is viewed as a whole, to support the verdict of the jury
in this respect. The contention that 29 U. S. C. 187 and
the other provisions of the National Labor-Management
Relations Act preempted the field of labor controversy
or precluded any common law action of conspiracy has
been decided against the UMW in several cases in this
circuit, the most recent being the case of White Oak Coal
Co. v. United Mine Workers of America, ... F. 2d ...
(C. C. A. 6, decided May 24, 1963). Moreover, there was
evidence of violence, threats of violence, and mass picket-
ing, any of which was sneh unlawful conduct as to sup-
port a verdict based upon common law conspiracy.

A further series of errors alleged by the defendant are
directed to the Court’s charge to the jury. It is the con-

— 56a —
Opinion

tention of the defendant that the Court was in error jy
declining a special request of the defendant relating to
a requirement that a neutral exist before an actionable
secondary boycott would exist. The Court has herein-
above dealt with the possible misleading nature of the
word ‘‘neutral’’ when used in defining a See. 8 (b) (4)
unfair labor practice. It is believed that the charge as
given correctly defined the statutory claim. Moreover,
the action of the Court in setting aside the jury verdict
on the statutory claim of interference with the plaintiff’s
employment contract would render this ground of the
defendant’s motion moot. The other alleged errors in the
charge were matters not raised at the time of the trial
as required by Rule 51, Federal Rules of Civil Procedure.
It is believed that in any event no error was committed
in the matters complained of.

A further ground for new trial relied upon by the de-
fendant is the alleged improper argument of the plain-
tiff’s counsel in his closing argument. Among other re-
marks, counsel for the plaintiff accused the defendant
of not caring a snap of the fingers for the law and of
attempts to bludgeon or starve his client out of the law-
suit. The Court is of the opinion that the argument was
improper. While an advocate may share his client’s
prejudices against an adversary, he cannot properly share
them with the jury, particularly when they do not relate
to any matters in evidence. However, the Court is of the
opinion that the argument was not so prejudicial as to
warrant a new trial, but should rather be taken into con-
sideration by the Court upon the issue of excessiveness
of the verdict.

Further grounds relied upon by defendant in its motion
relate to the alleged lack of evidence on the issue of
damage and the alleged excessiveness of the verdict in
this respect. The only evidence in the record that might

=

Opinion

support any recovery of damage with reference to the
loss of the plaintiff’s trucking contract was the plaintiff’s
own estimate of the profit he would have made on the
contract, as set forth in Plaintiff’s Exhibit No. 34, in the
amount of $14,029. His actual experience in the coal
trucking business reflected substantial losses, rather than
profits, for preceding years. Not only is there an absence
of credible evidence to support the estimate but the
estimate is admittedly based upon carrying loads sub-
stantially in excess of the permissible weight limits ap-
plicable to the plaintiff’s trucks under the laws of Ten-
nessee. The issue here is not the validity or invalidity
of the coal hauling contract, or the right of a third party,
the UMW, to assert its invalidity, as apparently argued
in the plaintiff’s brief. The issue here is as to the pro-
bative value of the evidence of the loss of prospective
profits when based upon prospective violation of truck
weight laws. The Court is of the opinion that such evi-
dence has no probative value.* Under these circumstances
the record is devoid of any evidence upon which a jury
might return a verdict awarding any damages for loss
by the plaintiff of his trucking contract and the defend-
ant’s motion for a directed verdict upon this issue made
at the conclusion of the evidence should have been sus-
tained.

With respect to the verdict awarding damages unto
the plaintiff for loss of his employment contract, the
Court is of the opinion that there is evidence in the
record upon which a verdict might be sustained. How-
ever, without here reviewing the evidence relating to
damages sustained by reason of loss of the employment
contract, other than to note that the employment con-
tract was terminable at will by either party, the Court
is of the opinion that the verdict of the jury upon this

6 Shelley v. Hart, 297 P. 82 (Calif., 1931). See also 25 C. J. S., Dam-
ages, Sec. 42(B) and 15 Am. Jur., Damages, Secs. 158, 159.

ong

— 58a —
Opinion

issue is clearly excessive to the extent of $30,000. Like.
wise in reviewing the evidence and reflecting upon the
argument of the plaintiff’s counsel to the jury, the Court
is of the opinion that the jury verdict upon the issue of
punitive damages is clearly excessive to the extent 95f
$55,000. A remittitur in the sum of $30,000 upon the
issue of loss of the plaintiff’s employment contract and
in the sum of $55,000 upon the issue of punitive damages
is therefore suggested, or otherwise a new trial will be
ordered.

The Court has reviewed Grounds 10, 11, 12, and 13 of
the defendant’s motion relating to the admissibility of
various items of evidence upon the trial, and is of the
opinion that these grounds are without merit and should
be overruled.

It therefore results that the verdict of the jury in favor
of the plaintiff on the issue of loss of the plaintiff’s
employment contract by reason of a statutory secondary
boycott will be set aside. The verdict of the jury award-
ing damages unto the plaintiff on the issue of loss of the
plaintiff’s trucking contract by reason of both a statutory
secondary boycott and a common law conspiracy will be
set aside. The defendant’s motion for a judgment n.o.v.
upon these issues should be sustained. Unless the plain-
tiff shall agree to accept a remittitur of $30,000 in the
jury verdict on the issue of damages by reason of loss
of the plaintiff’s employment contract as a result of a
common law conspiracy and to accept a remittitur of
$55,000 in the jury verdict on the issue of punitive dam-
ages, the Court believes that these issues should be sub-
mitted to another jury and a new trial will be ordered.

An order will enter accordingly.

FRANK W. WILSON,
United States District Judge.

— 59a —

Judgment—August 28, 1963

JUDGMENT—FILED AUGUST 28, 1963.

This cause having heretofore been heard by the Court
on the motion of the defendant, United Mine Workers of
America, for a judgment notwithstanding the verdict of
the jury and in the alternative for a new trial, and the
Court having fully considered said motion and each ground
thereof hath filed herein its Opinion setting forth fully
the conclusions reached, which Opinion is made a part
of the record in this case.

It is accordingly Ordered, Adjudged and Decreed that
the defendant’s motion for judgment n. o. v. on the issue
of the loss of plaintiff’s trucking contract, which issue is
based upon alleged statutory secondary boycott and also
upon alleged common law conspiracy, be and the same is
hereby sustained and the judgment heretofore entered is
accordingly modified so as to eliminate therefrom the
award of $14,500.00 made by the jury to the plaintiff on
the aforesaid claim of loss on his trucking contract.

It is Further Ordered, Adjudged and Decreed that, in
accordance with said Opinion, the defendant’s motion for
judgment n. o. v. on the issue of loss of plaintiff’s employ-
ment contract be and the same is hereby sustained insofar
as said motion is directed to the assertion of said claim
upon the basis of secondary boycott but said motion for
judgment n. o. v. on this issue is overruled insofar as this
claim is based upon alleged common law conspiracy.

The Court is further of the opinion and for the reasons
set forth in its said Opinion doth find and decree that
the verdict of the jury in awarding $60,000.00 to the plain-
tiff for loss on his employment contract is clearly exces-
sive to the extent of $30,000.00, and is also of the opinion
and for the reasons set forth in its Opinion doth find and
decree that upon the issue of punitive damages the ver-

me — 60a —

bel CA

Judgment—August 28, 1963

dict of the jury is clearly excessive to the extent of
$55,000.00. Accordingly, a remittitur in the sum of $30,
000.00 upon the issue of loss in connection with the plain-
tiff’s employment contract, and a remittitur in the sum
of $55,000.00 upon’ the issue of punitive damages is sug-
gested.

The plaintiff has now filed a written acceptance of the
suggested remittitur. It is therefore Ordered, Adjudged
and Decreed that the plaintiff, Paul Gibbs, have and re-
cover of the defendant, United Mine Workers of America,
the sum of $75,000.00 with interest thereon at the rate
of 6% per annum from and after the date of entry of this
judgment.

The various grounds of the motion for judgment n. o. v.
and for new trial are referred to in this judgment and
overruled as shown in the Opinion of the Court filed
herein.

The clerk of this court is directed to pay the amount
of this judgment unto the plaintiff and the law firm of
VanDerveer, Brown & Siener, attorneys for the plaintiff,
when the said sum and its accrued interest thereon have
been paid into the hands of the clerk of this court.

Approved for Entry.
FRANK W. WILSON,
United States District Judge.

Civil
Filed Aug. 26, 1963.
Ent’d. Order Bk. 17, pp. 276, 277.
JAMES W. PARROTT, Clerk,
By HATTIE SAULPAW, Dep. Clk.

“ * * * * * +

— 6la —

Order Correcting Clerical Error in Judgment

CONSENT TO REDUCE VERDICT—
FILED AUGUST 26, 1963.

Comes Paul Gibbs, the plaintiff in the above styled ac-
tion, by and through his attorneys, Van Derveer, Brown
& Siener, and accepts the remittitur suggested by the
Court in its Memorandum Opinion filed July 18, 1963, and
consents that the verdict of One Hundred Seventy-Four
Thousand Five Hundred Dollars ($174,500.00) rendered
in favor of the plaintiff and against the defendant may
be reduced to the sum of Seventy Five Thousand Dollars
($75,000.00).

VAN DERVEER, BROWN & SIENER,

By: JOE VAN DERVEER.

ORDER—FILED SEPTEMBER 4, 1963.

Upon it being made to appear to the Court in this cause
that a clerical error was made in entering the judgment
herein under date of August 26, 1963, whereby the next
to the last paragraph of the judgment reads as follows:

‘“‘The various grounds of the motion for judgment
n. o. v. and for new trial are referred to in this judg-
ment and overruled as shown in the Opinion of the
Court filed herein.’’
and the same should be corrected to read as follows:
‘“‘The various grounds of the motion for judgment
n. o. v. and for new trial not referred to in this judg-

ment are overruled as shown in the opinion of the
Court filed herein.’’

It is therefore Ordered that the next to the last para-
graph of the judgment entered in this cause under date
of August 26, 1963 be corrected to read as follows:

—

— 62a —

Notice of Appeal by Defendant

‘‘The various grounds of the motion for judgment
n. o. v. and for new trial not referred to in this judg-
ment are overruled as shown in the opinion of the
Court filed herein.’’

Approved for Entry.

FRANK W. WILSON,
United States District Judge.

* * * 7 * * *

NOTICE OF APPEAL—FILED SEPTEMBER 24, 1963.

Notice is hereby given that the United Mine Workers of
America, the defendant in the above-styled case, hereby
appeals to the United States Court of Appeals for the Sixth
Circuit from the judgment entered on November 27, 1962,
and from the judgment overruling the defendant’s motion
for judgment notwithstanding the verdict and defendant’s
alternative motion for a new trial, which judgment was
entered in this action on August 26, 1963, and thereafter
modified by order dated September 4, 1963, to correct a
clerical error.

WILLARD P. OWENS,
900 Fifteenth Street, N. W.,
Washington 5, D. C.,
EK. H. RAYSON,
R. R. KRAMER,
904 Burwell Building,
Knoxville, Tennessee,
Attorneys for Defendant, United
Mine Workers of America.

* * * * . * *

————

Summary of Proceedings in Chambers

_ on

NOTICE OF APPEAL—FILED SEPTEMBER 25, 1963.

Notice Is Hereby Given that Paul Gibbs, the plaintiff in
the above-styled case, hereby appeais to the Circuit Court
of Appeals for the Sixth Circuit, from the final judgment
entered in this action on the 26th day of August, 1963.

This 25th day of September, 1963.

VAN DERVEER, BROWN & SIENER,
By: JOE VAN DERVEER,
The James Building,
Chattanooga, Tennessee.

SUMMARY OF PROCEEDINGS IN CHAMBERS.

Gibbs v. U. M. W. A.—U. 8S. D. C., E. D. Tenn.,
8. D. No. 3771.

11/ 7/62 Conference in Chambers prior to the beginning
of the trial. (Not reported.)

“ Conference in Chambers following swearing of
the jury. (Not reported.)

* Conference in Chambers at the end of Mr. Gibbs’
testimony (first appearance) with regard to Mr.
Kramer’s objection to admission of Exhibits
P-13 and P-14. Motion heard and argued. Rul-
ing: Exhibits 13 and 14 admitted and allowed
to be filed.

n Conference in Chambers prior to beginning of
the afternoon session. (Not reported.)

11/ 9/62 Conference in Chambers following testimony of
Mr. Gibbs, re:

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— 64a —

Summary of Proceedings in Chambers

1st, with respect to defendant’s objection to the
admission of Exhibits P-27 and P-28 (objection
heard and argued). The Court said:

‘‘T think in this instance, on these two ex-
hibits, 27 and 28, that the objection of the
defendant should be sustained, at least to this
extent, and that is that any projection of profit
from the hauling contract should be limited
to the coal for which there has been estab-
lished a market in the proof, not to the pro-
ductive capacity. . . . So what I am say-
ing is that you will be permitted to make a
projection such as this, to the limit of 35,000
tons, but beyond 35,000 tons I feel that it is
too speculative to allow the jury to consider
it. Now as to the other grounds of the objec-
tion, some of them I think should be de-
veloped in cross-examination as to the ques-
tion of the accuracy of the cost that they have
deducted.’’

2nd, with respect to defendant’s motion with re-
gard to the absence of evidence as to plaintiff’s
obtaining State certificate as a coal-hauling con-
tractor. (Motion heard and argued.) The Court
said:

‘“*As to the legal questions that you have
raised about the statute, the certificate of a
contract hauler, I think that is a matter that
we can give careful attention to after the trial,
and it should not prevent the plaintiff from
going forward at this time.”’

3rd, with respect to defendant’s objection to the
admission of Exhibit P-33 on the issue of future

_

11/13/62

— 65a —

Summary of Proceedings in Chambers

profits or damages based on any Taft-Hartley
violation. (Objection heard and argued.) The
Court said:

‘‘Of course, I understand your objection at
this point to this exhibit is based upon the
proposition that there is no evidence in the
record from which there could be a jury issue
on any Taft-Hartley violation or any con-
spiracy that caused the termination of these
leases; therefore any evidence on this issue is
not material. Now, if you have any other
basis for objecting . . .”’

Mr. Kramer: Yes, we do, your Honor. (Further
argument heard.) The Court said:

‘‘All right. Well, I believe the objection to
the Exhibit P-33 should be overruled, and we
will proceed accordingly. Again, we can
always pass on this problem at the time we
consider what issues we submit to the jury.’’

(See Appendix B.)

Conference in Chambers at 8:00 a. m. prior to
the resumption of the trial in open court, re:

1st, Mr. Kramer’s motion to dismiss the entire
action, first, on jurisdictional grounds, etc. (Mo-
tion heard and argued.) The Court said:

‘*All right. With respect to the overall mo-
tion of the defendant, I fee! the Court should
overrule the motion. Now, with respect to
those four possible bases of having a sec-
ondary boycott—in other words, I’m in a
quandary here whether by ruling on the mo-
tion with respect to the overall motion you
have made, whether I am at the same time

— 66a —

Summary of Proceedings in Chambers

ruling upon the possible existence under the
proof of all four of the suggested boycotts.”

Mr. Kramer: May it please the Court, your
Honor might reach some such conclusion. |
have four additional motions reaching each of
these possible .

The Court: Well, I think that I shall overrule
the motion of the defendant with respect to
there being no jurisdiction, either alleged or
established in the proof, of any—by any viola-
tion of the Taft-Hartley Act.

2nd, Mr. Kramer’s motions with reference to
whether or not a secondary boycott existed as
to George Ramsay, Grundy Mining Co., Tennes-
see Consolidated, and Tennessee Products. (Mo-
tions heard and argued.) The Court said:

‘‘Its the opinion of the Court that the evi-
dence does not establish that a violation—
there’s no evidence upon which a jury might
find that a violation of the Taft-Hartley Act
existed insofar as George Ramsay was con-
cerned. . . . So that motion will be sus-
tained insofar as the secondary boycott is
claimed toward George Ramsay (C-7-23).

‘‘Well, with respect to the motion insofar as

Tennessee Products is concerned, I believe the
motion should be sustained (D-3-23)
Any conclusion by the jury on either of those
issues, it seems to me, would have to be
speculation. I believe the motion should be
sustained (D-4-22).

‘*T am unable to see where there is any evi-
dence in the record that would warrant sub-

—

— 67a —
Hearing in Chambers

mitting the case on the issue of damages as
to the Tennessee Consolidated (D-11-7).

‘I believe, however, as to that motion, un-
less there is something further on it, that the
motion as to Grundy (Mining Co.) should be
overruled and the jury can be ready to pass
upon the question—as to whether or not there
was a secondary boycott, as to whether or not
there was a conspiracy, as to whether or not
there were damages’’ (E-3-19).

11/18/62 Also, at this conference in Chambers, special
requests to charge were discussed, and the rul-
ing of the Court as to each request was noted
thereon by the Court.

Also at this conference, the matter of the form
of the verdict was discussed and resolved.

11/14/62 Conference in Chambers following charge re re-
quests for additional requests to charge. See
Ap. F for verbatim report of the conference pro-
ceedings.

HEARING IN CHAMBERS NOVEMBER 13, 1962.

1* Mr. Kramer: May it please the Court, the defendant

moves to dismiss this entire action because in this case
jurisdiction of this court is based entirely upon the alleged
violation of the Taft-Hartley Act. And the plaintiff has
not asserted a substantial cause of action either in the
pleadings or under the proof under this Taft-Hartley Act.
And jurisdiction of the Court to hear and determine the
alleged cause of action based upon plain violation of the

* Numbers appearing in outer edge of text indicate page numbers of
original stenographic transcript of testimony.

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— 68a —

Hearing in Chambers

Tennessee common or statutory law, that it is based upon
conspiracy, if existing, is based upon the theory of ancillary
or pendant jurisdiction, and such jurisdiction does not and
cannot exist in this case in as much as the substantial
cause of action under the federal act is not here asserted
either in the pleadings or in the proof. And this motion
goes to the dismissal of the entire cause or case.
The Court: Now that motion is based upon both the
pleading and on the proof?
Mr. Kramer: It is, your Honor.
The Court: . . . the jurisdiction.
Mr. Kramer: We heretofore had the motion on the
2 pleadings alone. And it is now based upon both.
The Court: All right.

7 The Court: If not, it’s the opinion of the Court that

the evidence does not establish that a violation—
there’s no evidence upon which a jury might find that a
violation of the Taft-Hartley Act existed in so far as
George Ramsey was concerned. First, in that there is no
evidence upon which the jury might find that the Union
activity was directed toward Ramsey in violation of the
Act. And second, there is no evidence of any legally
established damages or injuries. The prospective loss
of contracts or haulage agreements which never had in
fact existed would be so speculative, so remote, as to not
to establish any issue that the jury could pass on with
regard to damages, it seems to me. So that the motion
will be sustained in so far as the secondary boycott is
claimed toward George Ramsey. All right.

Mr. Kramer: Our next motion, your Honor, is to the
same effect and directed to the claim of the secondary
boycott against Tennessee Products and Chemical Com-
pany. We do not think there is a sufficient affirmant in the

— 69a —

Hearing in Chambers

pleadings and that the proof does not establish a basis
upon which a jury could find that a secondary boycott
was directed toward Tennessee Products and Chemical
Company.

3 The Court: Well, with respect to the motion in so far

as Tennessee Products is concerned, I believe the mo-
tion should be sustained. It seems to me that—lI can’t re-

call any evidence in the case which would form a
4 basis in the evidence for concluding that first, that

the termination of the leases were as a result of the
Union activity directed toward Tennessee Products. There
is nothing in the record, it seems to me, other than just pure
speculation as to why the lease may have been terminated in
January, or a lease may have been terminated in January.
At any rate, it’s my recollection of the testimony that at-
tempted termination was not in fact accomplished, and when
the termination was actually accomplished, it was accom-
plished by Mr. Human, whose testimony was rather defi-
nite and positive that it was terminated for reasons other
than Union activity. It seems to me, too, that the problem
of damages here is so speculative and so uncertain. One
of these mines had been—the testimony appears to be clear
—had been worked out. The only evidence of production
or potential profits was a record that was introduced of an
operation more than a year prior to that time. There’s
no evidence in the record whatsoever of what the profit or
loss experience was at a time reasonably close to the time
when it’s contended that the lease or leases were ter-
minated. I don’t see how the jury could find that, first,
there was a termination by reason of unlawful union ac-
tivity on basis of the evidence in the record, nor do I see
how they could find any damages. Any conclusion by the
jury on either of those issues, it seems to me, would have

a

— 70a —
Hearing in Chambers

to be speculation. I believe the motion should be sus.
tained. All rigut.

Mr. Kramer: We have a similar motion, your Honor,
5 as to Tennessee Consolidated Coal Company. I am

trying to think that we not consider Tennessee Con-
solidated and a similar motion as to Grundy made sepa-
rately, but considered together at this time in the hope of
saving a little time, and . ‘

The Court: Well, I really wonder if we would. Yes,

I can tell you quite frankly what’s concerning me and
then the plaintiff can respond. On the Tennessee Consoli-
dated, I am unable to see where there is any proof of any
damage in the record so far as Tennessee Consolidated.
What is contended is that Tennessee Consolidated did not
give him further leases or further work. Wherein is that
an actionable damage—the failure to give a prospective
lease or prospective employment in the future. I’m not
aware of that being a legally actionable element of dam-
age. Now, do you have any authority for a proposition?
This was not a situation, so far as Tennessee Consolidated
was concerned, and under the record in this case where
an existing contract or an existing right was interfered
with, but rather the testimony could only establish that
a prospective right or a prospective lease of property, or
prospective employment was interfered with.

* * * * * * *

11 The Court: Well, anything further? Without at this

time passing on the question as to whether there is
evidence to go to the jury on the actions of the Union in so
far as it may or may not have been directed toward Ten-
nessee Consolidated, as the Court reads the cases, not only
the cases that are referred to in the plaintiff’s brief with
respect to similar actions, such as this, against United
Mine Workers, but other cases, I am unable to see where

Piet ———

—Tla —

Hearing in Chambers

there is any evidence in the record that would warrant
submitting the case ou the issue of damages as to the
defendant, Tennessee Consolidated. I believe the motion
should be sustained as to Tennessee Consolidated.

* * * * * 7 *

3 The Court: Except for the fact that we are, as you

know, running a little bit on time this morning, I
would want to give you every opportunity to debate the
matter fully, because it’s very helpful to me for you all to
state your position. This is not an easy case. It’s difficult.
It’s difficult to keep everything in mind at one time. There
are so many different elements to it. I believe, however,
as to that motion, unless there is something further on it,
that the motion as to Grundy should be overruled and the
jury can be ready to pass upon the question—as to whether
or not there was a secondary boycott, as to whether or
not there was a conspiracy, as to whether or not there
were damages.

Mr. Kramer: Now, your Honor, I do want to make
4 another motion.

The Court: All right.

Mr. Kramer: We move to dismiss the portion of this
suit that is based upon an alleged common law conspiracy
arising under the state statute, because the facts nec-
essary...

The Court: The state statutes?

Mr. Kramer: The state statutes—or state law. The
state law. In other words, the conspiracy portion of the
claim which was based not on secondary boycott but on
common law. That is a separate cause of action. The
factual situation is not identical with the factual situation
that is involved in the secondary boycott, and we respect-
fully insist that ancillary or pendant jurisdiction could
not attach to a secondary boycott claim or a violation of

ED Mei, SSP PETIT SGP EOE IE AF LIE AOL AEL NL I ASE OIE I TE OIL ONS LL ES Ih IED

Rt

— 72a —

Plaintiff’s Exhibit 2

the Taft-Hartley so as to give this court jurisdiction of
this claim. It’s separate and independent, and ancillary
or pendant jurisdiction principles should not carry that
case into and part of the jurisdiction of the federal court.

The Court: All right.

Mr. Kramer: And furthermore, as another basis for that
motion, the rule of law applicable with reference to agency
and the degree of proof required to establish that agency
has not been met.

* * * * * * *

5 The Court: I believe that the motion should be over-
ruled.

PLAINTIFF’S EXHIBIT 2.

National Bituminous Coal Wage Agreement of 1950
as Amended Effective December 1, 1958.

Protective Wage Clause.

The United Mine Workers of America (which, as used in
this Clause, includes all of its Districts, Local Unions,
Officers or Agents) and the Operators signatory hereto
affirm their intention to maintain the integrity of this
contract in all of its parts. The objective of this contract
is to provide the maximum possible continuity and sta-
bility of employment under the conditions set forth herein.
The parties hereto agree that bituminous coal mines shall
be so operated as not to debase or lower the standards of
wages, hours, safety requirements and other conditions
of work, established by this contract. The parties recog-
nizing their obligation each as to the other to exercise
all possible efforts and means to attain these objectives
further agree as follows:

A. During the period of this Contract, the United
Mine Workers of America will not enter into, be a

UIST Hy SP aay * PERI Lee RA Dey. SPs NRT NNR TS eR DS

ee 5:
Plaintiff’s Exhibit 2

party to, nor will it permit any agreement or under-
standing covering any wages, hours or other condi-
tions of work applicable to employees covered by
this Contract on any basis other than those specified
in this Contract or any applicable District Contract.
The United Mine Workers of America will diligently
perform and enforce without discrimination or favor
the conditions of this paragraph and all other terms
and conditions of this Contract and will use and exer-
cise its continuing best efforts to obtain full com-
plianece therewith by each and all the parties signa-
tory thereto.

B. It is recognized that when signatory operators
mine, prepare, or procure or acquire under subcon-
tract arrangements, bituminous coal mined under
terms and conditions less favorable than those pro-
vided for in this contract, they deprive employees
of employment opportunities, employment conditions
and other benefits which these employees are entitled
to have safeguarded, stabilized and protected. Ac-
cordingly, the Operators agree that all bituminous
coal mined, produced, or prepared by them, or any
of them, or procutred or acquired by them or any of
them under a sulbcontract arrangement, shall be or
shall have been mained or produced under terms and
conditions which are as favorable to the employees as
those provided for in this Contract.

‘‘Procured or acquired under a subcontract arrange.
ment’’ means any contract, lease, license, agreement,
arrangement or understanding pursuant to which the
signatory operator acquires coal, either as principal
or agent, directly or indirectly from a producer other
than such signatory for delivery to a person other
than such signatory.

EE OGRA REMI RGR LS ALLE ILL IE IL ET IONE TS TM IL RS NE TR

— 74a —
Plaintiff’s Exhibit 2

The obligation assumed hereunder shall not affect
any agreement in effect as of the date of execution
of this contract: Provided, however, that any operator
signatory hereto who is a party to any agreement
inconsistent with the obligations assumed hereunder
shall not maintain such inconsistent agreement in ef-
fect beyond the first date at which such agreement
may be terminated by him in accordance with its
terms. .

The Operators signatory to this agreement shall so
conduct their own operations (whether operated di-
rectly or indirectly, or through subsidiaries or af-
filiates) so as to fully comply with their obligations
under this Clause. The obligation of each Operator
signatory hereto, which is several and not joint, to
fully perform all the conditions in this paragraph B
contained, shall be a direct and continuing obligation
of said Operator during the life of this Agreement.

As a part of the consideration for this Agreement,
the Operators signatory hereto agree that this Clause
covers the operation of all the coal lands, coal pro-
ducing or coal preparation facilities owned or held
under lease by them, or any of them, or by any sub-
sidiary or affiliate at the date of this Agreement, or
acquired during its terms which may hereafter (dur-
ing the term of this Agreement) be put into produc-
tion or use. The said Operators agree that they will
not lease, license, or contract out any coal lands, coal
producing or coal preparation facilities as a subter-
fuge for the purpose of avoiding the application of
this Clause.

Be nA ee ee ae OT

— joa —

PLAINTIFF’S EXHIBIT

— 76a — ee

PLAINTIFF’S EXHIBIT 15.

8. Treasury D. Int J Revenue Service ee
ae PROFIT ‘COR LOSS) FROM BUSINESS OR PROFESSION 1958

Ter Computation of Self-Employment Tux, s00 Page 3)
Attach this schedule to your =o Return, Form 1040 — Partnerships, Joint Ventures, Etc. Must File On Form |

For Calendar Year 1956, or other beginning , 1996, and ending ry

Name dd on £ 7 oy
i i MIN i os aadcccucddanevecsevesuedncsvnaee 3.260/89.3[
@. Inventory at ond of year 6... 6... c eee cece cece eee ereeeeeseeeseeeres

9. Cost of goods sold (line 7 ‘ess line 8)
10. Gross profit (line 1 less line 9)... 6... cece cece cece eee nee e ener eneeereneeeneeeeteres
OTHER BUSINESS DEDUCTIONS —
11. Solaries and wages not included on line 4 (do not include any paid to yourself). ./$.....
12. Rent on business property... 2... 6 0 cece eee e eter teense erect es [eeeemeesceseeeenenenenes
13. Interest on business indebtedness... 6.6 cece eee eee eeeeeeeee
M4. Taxes on busi and busi EE, ca cddcdweddsd evens qoutes svenksecssemvens TYRTY
18. Losses of business property (attach staterment) ........ «2... eee eee eens
16. Bad debts arising from sales or services... 0.66.66 e eee eet eens fenewenn : =
17. Depreciation and obsolescence (explain in Schedule C-l)................--. mets tia
Sh, Mercier Geeta Ws DATE... 5. occ occneceecneceersecconeseeeese LA, LEE ES
19. Depletion of mines, oil and gas wells, timber, etc. (attach schedule)............

21. Other business expenses (enplain in Schedule C-8)...........0..ccseceeeeee | GORY 3 Vat
22. I oo iy an enkiv day xensensavenvcdanenesieoins 3 Ys

23. Net profit (or loes) (line 10 lees line 22). Also enter on line 24, Sp sebiclaeabecnanie: and on line 8, '
page |, Form 1040..........,.........-. ee en es ad as a ; ’ 8 17,0#4.

ILE IE EE AIEEE LITER ORE I MERITS ES ————

— 77a —
PLAINTIFF’S EXHIBIT 16.

exons | PROFIT (OR LOSS) FROM BUSINESS OR AmORESSON’| 195 1957
ot Self-Employment Tax,

Income on. Return, —— 1040 — Partnerships, Joint Ventures, Etc. Must File On Form 1065

ra _, » 1957, and ending 4

7 Lddress 92-Gg"”

eo FT, are LX rami om
——eE ”

— : * lswyer etc. iF \pal product or service

|p. Susiness -E F
a oe SE a ooo bates
@ separa

Ss ies ebatae teadanioein 1 of Schedule C must be completed for each b

|, Total receipts $.... ceveeereessee-+---, hous ottomeances, rebates, and returns $... rs Ra stanreicivorsnets \s_....YOU 7G 747. ,
scan oh beginemng ot Leccarecesuecs «seseuse :
et ig re "F3I°GGl ~~ bap enn Gene einen bie | | |
tainan for personal we $.. panies bf FO6OL. |
Cost of labor (do not include eilne guth e youn... | GFE
er teackatissices As |e, 700.
Other costs (explain in Schedule C-2) | hort t
(Total of Vinge 2 through 6.62... ...e ee eceeeecceeee seen: es
eet One? tan ten Pee teessa e¥ve Sas Guiemipoa pone , } -: GV IYVNY
Geese profit (line 1 lees line 9)... Rehteatieeewenae a tae

OTHER sUsurEss pEDUCTIONS
ee re Oe.

ngetn Geapadn ts Guhedulle O-8) 0... 6... eee eee. (ace fo aa — AFIT.

Toe ine 1 HOG Too a Ba 2,6 FFE
10 less line 22). Enter here: on line 24, page 3, and.on line 8, page I, Form 1040._|s 2432 4/

Se 52 SR SARS NIE EEG FILE LEE OPULENCE RRS,

— 78a —
PLAINTIFF’S EXHIBIT 17.

U. 8. Tr a lies a ee,

(rorm 1048), PROFIT T (OR L0SS) FRO FROM BUSINESS OR PROFESSION 1958 a=
Security Self-Employment Tax on Page 3)

Attach ths schedule to your a — —— Form 1040 — Partnerships, Joint Ventures, Etc., Must File On Form iii

For Calendar Year 188, or other taxable year “a -

Narre as shown cn page | Form 1040 .

It you. had mere ‘han one business, or husband and wife had separaie nena 4 a ponneion page 1
for each business.

A. Principal business activity: . z 2 “4 A ie ites

cca ire

ee
(Number and street or rural

if
D. Did you file an aa! Quarterly Tax Return, Form 941." for any quarter of 19587 UOT T No. £. Employer's Identiticasoun iat!
Number, if any oki li Ge . FP. Isthis within the legal boundaries of a municipality? C) Yee (haw ‘prento

@. Did you own ‘his business on December 31, 1958? feos (No. 98. How many months in 1958 did you own this buanes? ./ ‘
me

1. Total receipts $... scnnengliatwn ., leas allowances, rebates, antommmna®. saan eens te IG 9d 18K
2. inventory at beqinaing of SL anes Cisne eacseknees y re sci icaataaltbantaleden iwatie
3. Mer-handise purchased ohne ‘is. 99.936,1¥ .. . lees any items withdrawn |
from business for personal use $.. Veivtenlion Rew eae ers per en eer. 9 GY 426.97 |
4. Cos: of labor (4+ not include salary —_ to icant. a ans nn Oner.
5. Motenal and supplies SOE ree Ce erm rir er Tey Ly 2276.87.
a tile alana RRA; ...-onr ees «dss sonerennenses | Weececeeee3.Ly..2 OF
OTHER BUSINESS DEDUCTIONS ~
oe, Siteenes ead een attache en tan 6 ndiats any dat GUND « -- Piceennrercctresnorene~
12. Rent on business property... 6... c cece cee cece e ence n ere n ence cence: [eensaneneenneeaameneenanecaess
13. Interest on tndlobtednees. .. 6... 55 o Ko revcccccccces Pannreds ee. oe eoteiaiaiaiitiaieds |
44. Tones on by ciness and business property...........s.cccccecccssveesece sof ccvcsned Gb0b
18. Losses of business property (attach statement) .............6 66. cece eens
16. Bad debts arising from sales or services... 0.0... eee eee ee eeenenenreee —
S. Deprectoten Geanintn Oe Gtabialin OM... --2eccececceceereseeefeors EEE
$8. Bepairs (explain in Gahedule C-B) 2.2... eee ee cece neces seemneneesetii 23...
1%. Depletion of mines, ot] and gas wells, timber, etc. (attach schedule) wee
28. Amortzation (attach statement)... 6... eee nent oe
21. Other business expenses (explain in Schedule C-2) él ATT
22. Total of lines 11 through 21.

23,_ Net proBt (or loss) (line 10 less line 22). Enter hare; on line 24. page 3.andon|ine 8, pagel, Form 1040.8 3, 476 |

(BOM GOALS EES SRO ER AE OTH a OF jp me rer setae

mss Ws or

— 79a —
PLAINTIFF’S EXHIBIT 18.

U. & Treasury Depart 1

joes | PROFIT (OR LOSS) FROM BUSINESS OR PROFESSION | 1959

ifesme 1000) (Compute Social Security Self-Employment Tax on Page 3)
your Income Taz Return, Form 1040 — Partnerships, Joint Ventures, Etc., Must File On Form 1088

Q 2 at —_ _
AP) #?. —_-o—:—

; SS load Nome, we pee i sated name aie leted
Mh Se f Number 6% OF/ +198
: caer ee. 0 ed

Otumber and street or rural route)

a caainiahienclacntuneileay lees allowances, rebates, rE " is FoRRETEE.

oo i

eee eCeee ee ee eee eee Peer ee Cee ee ee eee eee eee ee

1. bez. OF

PoePee PERO OSC OCC OSE eee e eee Cee eee,

eee Peer eee eee eee eee e eC Cee Cee eee eee eee

CORO O OREO OOOO EET HEHEHE HEHE HEHEHE EEE

ie v5o
4760-7

TOP eee e COUR C OSC CS CS See eee eee

OUP eeEREO OSES CS CSCC eee eee

eee eee eee eee eee eee ee

BR sitesionosoree caves feshtolaeeeenn
LE PB-26

eee e reer eee ee ee eee eee eee eee ee

—- WAY TFL
AEE A RTT NEE RELI IIR L151, 43! \64

) Cine 10 less line 22). Enter here: on line 24, page 3: and on line @, page 1, Form 1040. .|8 P is

—,,

Se IA SEE OY IE TUNIS NLS MUTANS ALERTS EOS REIN TS EI ANSE RE ITD

— 80a —

PLAINTIFF’S EXHIBIT 19.

—

PROFIT (OR LOSS) FROM BUSINESS Off PROFESSION

ipts $. Iw TC = ee. 4
2 ain abecry! 1.295.707 $2 a |
from business for personal use $0000 ' ghee hed
4. Cost of labor (do not include salary paidt youl)... tt eatle |

8. Materia! ond supplies

Total of lines 2 through 6
8. Inventory at end of year

POU HEOCHL ESSEC EVOVSTSCSEC SECC SCHL CODE CC CEES
VEEP COSHH OTUSREHESCOSCOECES OOO ODES SC OCS CEC EEOC TS

11. Salaries and wages not included on line 4 (exclude any paid to yourself)
12. Rent on business property ..............

CPO TORO CFO OCCT ESE SEO eee eee eesee

18. Repairs (explain in Schedule C-@)..............!
18. Depletion of mines, oi! and gas wells, timber, etc. aunesinmaenes
38. Amortization (attech statement)

COCCCCOC Ceo OHer EO Keer esresoversereseCeee

mat

2. Total of lines 11 through 21

23. Net pro®t (or loss) (line 10 lees line 22). Enter here: on line 24, poge 3: and on line 6, page |. Form 1040 .

mae fr
4S 377 4

CLS OSI es Re Kes yy

PEW) LEIS ————

—8la— -
PLAINTIFF’S EXHIBIT 20.

wwe | PROFIT (OR LOSS) FROM BUSINESS OR PROFESSION

ut
ty Dare Se ee ee

ee

196

———

| his Schedule to your Income Tex Return, Fesm 106 — Partnesships, Joint Ventures, Dts., Must File On Form 1088

148 OS3 99

OE --+- -=++, less allowances, retates, and returns S$ _ 4 $
scare began of year (2 dilarent then last your's closing taventary Series: ees jee
toch explanation) ................... - Seah huwexvdern@desane pe aaeen Ws j #& ee | tad
ehondise purchased s £h63 ary iene witdra wn ‘9
pap usin for porecmal wae Sac sees —h str!

1 wer (do tet Unisde salary paid to yourself)... ................ LAE EY..
SO rc cresexdeveceterscevecevtosoecsscceoes | aa
een ORDO ...cccesscssesecvvevsvesveseees * aia t

I | ¥h,? o
onscreen te ee ceewereereeeereresceceseesserees er ‘
of goods wold (ine 7 les lime G ..... 6 ccc wecereeeereceeeewee eee n eee e eee en eee eee ee eens
caput (ebirent tno © frum tae 1) laa alata nssecccicaanphihi me oY) 4

cm and wages ot imobuded om line 4 (acbude amy patd t yourset)
ME on od) DELLE LEE EEE

put on business incebtedheees. ... 2... . 6. sec c cee enees cvesccesccocess

mn business and business property...........+ Salamaniied datsiateeiee 1059.9

Whe r74e
gestation (explain in Schedule C-1) .. 2.0.6 c cc ceeecceeceeeeeeueeeees
min (explain tn Schadhully O-2) oo... eee c cece esc ceueeeeenees LLSte.47

wrteation (altach statement)... 6.6.6. cece cece e eee eceweeeneeeeeues

i preltt (or leas) (subtract line 25 from line 10). Enter here: on line |. Schedule C-~% and on line 6,
mpi form 1000. PESTLE IE LIE NIT LI RIIGN. SLITS ST

Sy Abi /3

17, G63 \9

i. —-t OTD RT PEGE INGE LG DINE Fi SN tag Epa PONTO IME OLS tonite eT | eit éy

— 82a —
Plaintiff’s Exhibit 30

PLAINTIFF’S EXHIBIT 30.

Stanlee Hampton Paul Callis Everett Roberts Houston Beaumont
President Vice-President Vice-President Secretary

Tennessee Consolidated Coal Company
(Monogram)
607 Commerce Union Building
Nashville 3, Tennessee
January 12th, 1960.
United Mine Workers of America
Washington, D. C.
Re: National Coal Wage Agreement of 1950 as
amended effective December 1, 1958.

Gentlemen:

Pursuant to action taken by the Board of Directors of
our company and in accordance with the paragraph provid-
ing for termination of the December 1, 1958 amendment to
the collective bargaining contract by and between the
United Mine Workers of America and the Tennessee Con-
solidated Coal Company, you are hereby notified that the
said Tennessee Consolidated Coal Company elects to ter
minate said contract effective March 15, 1960.

Yours very truly,
TENNESSEE CONSOLIDATED COAL, CO.,

By STANLEE HAMPTON,
President.

(C:
United Mine Workers of America

District No. 19
Middlesboro, Kentucky

Palmer Local
Palmer, Tennessee

—

— 83a —
Plaintiff’s Exhibit 31

PLAINTIFF’S EXHIBIT 31.

January 14, 1960
Mr. James Ridings, President
District 19, UMWA

Box 116
Middlesboro, Kentucky

Re: Tennessee Consolidated Coal Co.
Tracy City, Tennessee.

Dear Sir and Brother:

Enclosed herewith is a copy of a self-explanatory com-
munication dated January 12, 1960, from Stanlee Hampton,
President, Tennessee Consolidated Coal Company, which is
signatory to the National Bituminous Coal Wage Agree-
ment of 1950 as Amended, effective December 1, 1958, by
membership in the Southern Tennessee Coal Producers’
Association.

Would you please advise this office with respect to the
contractual status of the Tennessee Consolidated Coal Com-
pany subsequent to March 15, 1960.

Sincerely yours,

W. A. BOYLE,
Assistant to the President.

B/d/t

Enclosure

“tho
pss Fe sco
pair. waver Si ae } PELE TOS RALLIES AE LM FAG LEC IEEE AE LLENS LEE IONE USACE

— &4a —

Plaintiff’s Exhibit 34
PLAINTIFF’S EXHIBIT 34.
Paul Gibbs.

Contract to Haul Coal From Grundy Mining Company
for Redstone Arsenal.

Estimated Income—

35,000 Tons at $.78 a Ton (at rate of 10,000 tons a week,
would require 3% weeks to deliver)..................... $27,300.00

Estimated Expense—

Labor (3142 weeks X $1,609.60 a week)............ $5,633.60
Gasoline (3% weeks X $1,120.00 a week).......... 3,920.00
Oil and Grease (3% weeks X $48.00 a week)...... 168.00
Tires and Tubes (3% weeks X $153.84 a week).... 538.44
Truck Repairs (3% weeks X $222.87)............. 780.05
Workmen’s Compensation Insurance ($2.00 per

SEGRE FPO ee BONOE TS csi kance aden sees cues 112.67
Truck Insurance (3% weeks X $37.65 a week).... 131.78
Payroll Taxes (6%% X $5,633.60)................ 345.06
Truck Tags (3% weeks X $41.04 a week)......... 143.64
Telephone (3% weeks X $5.77 a week)........... 20.20
Depreciation (3% weeks X $422.08 a week)....... 1,477.28

I titres cea w sa Vise Kees NONee eeeK es 13,270.72

Estimated Net Profit on Contract................... ccc ee eee $14,029.28

— 85a —

Plaintiff’s Exhibit 38

DEFENDANT'S EXHIBIT 38.

Whitwell, Tennessee,
September 7, 1961.

Mr. Paul Gibbs,
Tracy City, Tennessee.

Dear Mr. Gibbs:

It has just come to my attention that a mine (number
2-074) that was formerly leased by you is presently being
worked in your name. In checking through our files I note
that a lease cancellation letter for this mine was sent to
you on January 5th of this year. This is to advise you that
since no lease is in existence covering this mine all work
in and around 2-074 should be stopped immediately.

Please contact me at our Reel’s Cove office if there are
any questions concerning this matter.

Yours truly,

TENNESSEE PRODUCT'S & CHEMICAL
CORPORATION,

HOWARD C. HUMAN,
Assistant to Vice President—Mining.

HCH/wme

— &a —

Plaintiff’s Exhibit 39

DEFENDANT'S EXHIBIT 39.

Whitwell, Tennessee,
September 7, 1961.
Mr. Paul Gibbs,
Tracy City, Tennessee.

Dear Mr. Gibbs:

As you know we have been having considerable prob-
lems with the quality of our outside coal that is being put
in on the Marquette Cement Plant contract. After going
over our latest analysis covering this coal it appears that
the hoped for improvements have not been forth coming
and that quality problems will continue to problem with
this coal.

In order to try to improve this situation we are going to
eliminate the delivering of purchased coal from mines or
companies that are operating outside of the Tepco lease
holdings. Effective Monday, September 18th, all coal de-
livered on the Marquette contract must come from mines
that are operating on the Tepco lease hold.

This should give you ample time to make the necessary
arrangements to purchase coal from the small mines on
our property in an amount equal to that which you pres-
ently- purchase from various outside sources.

Please contact me at our Reel’s Cove office if you have
any questions on this matter.

Yours truly,
TENNESSEE PRODUCTS & CHEMICAL
CORPORATION,
HOWARD C. HUMAN,

Assistant to Vice President—Mining.
HCH/wme

- 4 ae a ~

DEFENDANT’S EXHIBIT 40.

— &ia —

Plaintiff’s Exhibit 40

Whitwell, Tennessee,
September 26, 1961.

Mr. Paul Gibbs,
Tracy City, Tennessee.

Dear Mr. Gibbs:

During the past several weeks there has been consider-
able discussion concerning the ash analysis of the outside
coal being delivered on the Tepco coal contract at the
Cowan Cement Plant.

On September 7, 1961, you were notified verbally and by
letter from this office that effective September 18th all de-
liveries made on this contract must be of coal mined from
the Tepco lease holdings. According to our recorded scale
weight tickets this was not carried out during the week
ending September 22, 1961. As a result this is official noti-
fication that no further deliveries of coal from any source
will be accepted on the Cowan Cement Contract. This will
confirm our phone conversation of last evening.

Should you have any further question on this matter,
please contact me at the Whitwell office.
Yours truly,
HOWARD C. HUMAN,
Assistant to Vice President, Tennessee
Products & Chemical Corporation.

HCH/wme

ec: Mr. R. E. Merryman
Mr. H. I. Allen
Mr. W. A. Moody

— 88a —
Testimony of Paul Gibbs

In the
UNITED STATES DISTRICT COURT
For the Eastern District of Tennessee,
Southern Division.

PAUL GIBBS 7
vs.

UNITED MINE WORKERS OF
AMERICA.

. No. Civil 3771.

4

Transcript of proceedings and evidence introduced in
the trial of the case, beginning 7th day of November,
1962, before the Honorable Frank W. Wilson, U. S. Dis.
trict Judge, and a jury.

Appearances:

Joe Van Derveer, Esq., and Wm. Ables, Esq., attor-
neys for the plaintiff.

R. R. Kramer, Esq., E. H. Rayson, Esq., and Willard
P. Owens, Esq., attorneys for defendant.

* * * * * * *

Mr. Rayson: Ladies and gentlemen, I will say this: that
we represent the International Union of the United Mine
Workers, a defendant in this case.

* * * * * * *

2 MR. PAUL GIBBS,
having first been duly sworn, testifies as follows:

Direct Examination,
By Mr. Van Derveer:

Q. Will you state your name please?
A. Paul Gibbs.

— 89a —
Testimony of Paul Gibbs

Q. Where do you live, Mr. Gibbs?
A. Tracy City, Tenn.

Q. Now, how long have you been engaged in the coal,
or coal mining or coal hauling business?
A. 32 years.
Q. Practically you’re entire——
3 A. Since I was 15 years old.

4 Q. Now, let’s get back prior to the events that hap-
pened in that particular area. For a number of

years, have you been operating mines over in that area?

A. Well, since July of 1953 the last time.

Q. Who owned the land upon which these mines were
located ?

A. Tennessee Products and Chemical Corporation.

Q. What arrangement existed between you and Ten-
nessee Products whereby you were mining these lands?

A. I had leased the Tennessee Products’ mine and coal
and delivered it to them, and they sold it themselves.

Q. Generally, where were those mines located?

A. Well, I, at one time, had about 5 mines in that area.

Q. What——

A. I had three, what we called ‘‘employed haulers’’ in
the pocket.

Q. When you say ‘‘the pocket’’ that’s the area that
you-—

\. That’s about a mile further on down this blacktop
road from where I pointed out ‘‘Dogwood Flat’’.

Q. Now, to lay the background on this general area,
where over in that area are these good coal mining lands?

A. Well, the best thing that’s left in that area now that
hasn’t been worked out is in the Gray’s Creek area.

— 90a —
Testimony of Paul Gibbs

Q. Uh-huh, and you had some mines with Tennessee
5 Products in and around that area. Is that correct?

A. Yes, sir. On adjoining property with the high.
way going into the pocket, there’s a yellow painted line
there, Tennessee Consolidated owns on the right, Ten.
nessee Products on the left, and during the present time,
I was operating on Products on the left hand side of the
road.

* * * a * * *

Mr. Van Derveer: O. K. I think, ladies and gentlemen
of the jury, we might point that out a little more carefully
at this time, because I know it was confusing to the court
in discussing the proceedings and it may be to the jury.
As you will see from time to time in the trial of thiy
case, there will be a reference to Tennessee Consolidated
and there will be a reference to Tennessee Products. Now,
these are two separate and distinct companies or corpo-
rations, so keep that in mind when they talk about Ten-
nessee Consolidated or when they talk about Tennessee
Products.

Q. Now, Mr. Gibbs, first on Tennessee Products, did
Tennessee Products operate some mines of their own, or

did they get their entire production by leasing out
6 the land to fellows like yourself?
_ A. They had one mine that they operate themselves
and the rest was lessee mines.

Q. All right, now, let’s talk about Consolidated. Did
Consolidated operate their own mines, or did they operate
through lessees?

A. Same way, just like Tennessee Products.

Q. Now, but those two companies are competitors, are
they?

A. That’s right.

Q. And they are distinct companies, are they?

A. That’s right.

STRSTR NEG EE LORIE LOT EY A et

— 9a —
Testimony of Paul Gibbs

Q. Separate companies. Well, let’s lead up toward the
15th and 16th of August of 1960. Now, sometime prior
to that or immediately before that, did you have any
rolling stock or equipment?

A. Yeah.

Q. Just tell the court and jury, just, let’s say there
on the 10th, 12th, and 13th of August, 1960, what trucks
and equipment did you have?

A. I had eight dump trucks at that time.

Q. Now, when you say dump trucks, explain to the
jury. Some of them probably understand, sae I am sure
that I don’t?

A. They’re regular coal trucks with coal bodies and

hoists on them. We call them dump trucks.
7 Q. Now, what size trucks were they?

A. Well, ordinarily they’re listed as two and one-
half tons, but we haul about 20 or 22 tons on them.

Q. How many wheels do they have on them?

A. Ten.

Q. At that time, and we are still referring to that period
of time immediately before the 15th of August, 1960, how
many employees did you have in your mines and in your
trucks?

A. Well, during that time, around the 15th and 16th
of August, 1960, I had eight truck drivers.

* * * * * * aod

A. And I couldn’t say positive how many men I had
employed in the mines at that time, but I’d say somewhere
in the neighborhood of 15 or 20.

Q. Now, at that time, how many mines were you run-
ning or operating?

A. Two.

Q. Uh-huh. And those two were on the lands leased
from The Tennessee Products Chemical Company, is that
correct ?

— 92a —
Testimony of Paul Gibbs

A. Yes, sir.
Q. Now, where were you hauling the coa] that was being
used, or hauled in these eight trucks?
A. Well, I was only using about 2 of the trucks jpn
8 my own operation, and I was hauling coal to
Bennett Lake or down into Woodville Ramp, where.
ever The Tennessee Products and Chemical Corporation
advised me to take the coal.

* * * * * * *

Q. And the remainder of your trucks, the other six,
were being used for what now?

A. Hauling coal from Pikeville Coal Company on a
strip-logger job under Tennessee Products lease.

* * * * * * *

Q. Uh-huh, then if I understand you correctly, two of
your trucks were in your own mines and you were hauling
on the other six, is that correct?

A. Yes, sir.

Q. Now, on or about the 10th, 11th, or 12th, or some-
where in that area, state whether or not you were con-
tacted by anyone with Tennessee Consolidated Coal Com-
pany or The Grundy Mining Company, in regard to doing
anything for them?

~ A. On Friday afternoon, August 12th, 1960, Mr.
9 Judson Harwood was up from Nashville.
Q. Just a moment now. Who is Mr. Judson Har-
wood?

A. He is an attorney over there, and he was president

of the Grundy Mining Company at that time.

* * * * * * *

The Court: Yes, it’s agreed and stipulated, ladies and
gentlemen, between the parties, that Grundy Mining Com-

— 98a —
Testimony of Paul Gibbs

pany was a wholly owned subsidiary of Tennessee Con-
solidated Coal Company.

Q. Now prior to the time that Mr. Judson Harwood, the
Nashville Attorney, contacted you, had you ever heard
of The Grundy Mining Company?

A. No, sir. I had not.

Q. So far as you know, it was a new company, a new
concern?

A. Yes, sir.

Q. At that time, did you know Mr. Judson Harwood?

A. No, sir, I never even heard of him.

Q. How were you contacted by him?

A. He called me on the phone at home.

Q. Now, what was the purpose of his calling you?
10 +Q. All right, sir. And what transpired there, be-
tween you and these three men?

A. They drove down, got out of the pick-up, and went
to looking around there a few minutes, and one of them
said to me, he said we——

et

* * 7 7 * + *

But as a result of that conversation, what did you do?
A. I just got in my pick-up and left.
Q. And where did you go?
A. When I started out of there, I met two of the Grundy
Mining Company employees——

— 10la —
Testimony of Paul Gibbs

Q. All right, sir.

A. And Johnny Cain.

Q. And Johnny Cain?

A. Yes, sir, I found out it was Johnny Cain after I met
him up there. I didn’t know him before.

Q. Who was Johnny Cain?

A. He was the representative of the Southern Labor
Union.

Q. Of the Southern Labor Union. All right, did you
93 just pass them, there on Gray’s Creek Road?
A. No, sir, we stopped.

Q. All right. Well, without going into what was said,
did you then go on up to the junction of the Pocket Road?

A. Yes, sir.

Q. In your own words, briefly, but completely, tell the
jury what happened when you arrived there.

A. Well, when I got back up on the Pocket Road, I’d
already found out where these other boys was at, that
were trying to find their way in there, and I drove
around to where they were, while the other employees——

Q. Did you discuss the situation with them, then?

A. Yes, sir.

Q. Where did you go then?

A. To the best of my knowledge, after I left these boys,
I went over on Daws Mountain where my trucks were
hauling coal.

Q. And attended to your own business the remainder of
the day?

A. Yes, sir.

Q. Now, was any work at all performed there, at the
new mines——

A. No.

Q. On the 15th of August?

A. No, sir.

—

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— 102a —

Testimony of Paul Gibbs

Q. Did you then return to the same scene the fo.
24 lowing morning, the 16th?
A. Yes, sir.
Q. In your own words, tell us what happened then?
A. Well, that afternoon, on Monday, August 15th, one
of my truck drivers notified me at my home that he was
broken down over in the Pocket. I was hauling some
coal from my mine over to the coal screens, at that time,
and he wanted to know if I could take him out the next
morning, early, and take a axle along to go in the truck,
and I told him I could. Well, about five or five-fifteen the
next morning, I left with the truck driver, going to the
pocket area, where my truck was broken down, and on
the way in, I had to pass right by this Dogwood Flat.
Q. The junction of the Pocket and the Gray’s Creek
Road?
A. Yes, sir.
Q. All right?
A. I noticed a pick-up truck following me in there and
I identified it later as Bobby Banks.
Q. And who was Bobby Banks?
A. He was a committeeman of the mine of the Local
5881.
Q. 5881, being the Palmer Local, wasn’t it?
A. Yes, sir.
Q. All right, sir, now he was the mine committeeman.
Now first, what is a mine committeeman?
A. Well, there’s three of them, and any grievance comes
up in the mines, this committee is supposed to settle
they.
25 Q, And Bobby Banks was one of these committee-
men?
A. Yes, sir.
Q. All right. Now, what transpired right there, then?
A. Well, I seen this truck following me, but I went on

RAS ee eee tE A E geR ee etn Te 4: SAPP TEES RC LS ARNT RE eee

— 103a -—
Testimony of Paul Gibbs

in the Pocket area and took this truck driver in there
where the truck had broken down.

Q. All right, sir. Now, you didn’t go down the Gray’s
Creek Road?

A. No, sir, I did not.

Q. Then you went on down to the Pocket area, which is
a different area?

A. I went in time to take him over there, so I could
get back to Gray’s Creek area before work time.

Q. All right?

A. But, when I got back up there, I met a mob of about
a handred or a hundred and twenty-five men.

Q. Now, when you got back where?

A. The Gray’s Creek Road in Dogwood Flats.

Q. The only entrance into the new mine?

A. That’s right.

Q. Then, when you arrived there, it was approximately
what time?

A. I’d say around six-thirty.

Q. And the mob was how many?

A. Approximately, a hundred or a hundred and twenty-

five armed men.
26 ©. All right, now, you say armed men. Mr. Gibbs,
did you actually see arms, and if so, what did you

see?

A. Well, I’d say 50 per cent of the men had shot-guns
and rifles.

Q. Now, what did you do when you arrived there? I
want you to tell——

A. About eight of them ran out in the road in front
of me with guns up to their shoulders, and stopped me.

Q. All right, now, just tell the jury, in your own words,
exactly what happened. Don’t leave out anything, but——

A. Well, when they stopped me, Estell Woodley had
a double barrel shotgun and——

— 104a —
Testimony of Paul Gibbs

Q. Just a moment now. Who is Estell Woodley?

A. He was an employee of The Tennessee Consolidated
Coal Company, at that time.

Q. All right, sir?

A. He put the shotgun in his right hand after I stopped
and took his left hand and opened my pick-up truck door,
and got me by the arm, and tried to pull me out, and
these other fellers was standing there with their guns up
to their shoulder on me while he was trying to pull me
out of the truck, and I knew the guy.

27 Q. Did you get out of your truck, or were you pulled
out of your truck?
A. I got out.
Q. What transpired when you got out of your truck?
A. Well, this whole mob of men, they just gathered
around me there, and began telling me what. they were
going to do to me.

* s * * * * *

28 Q. You did get out of your truck?
A. Yes, sir.

Q. All right. How long did you remain there at that
scene?

A. Approximately 2 hours.

Q. What were you doing this period of time that you
were there those two hours?

A. Well, I was trying to watch to see who was going
to hit or shoot me first.

Q. All right, sir. Did you recognize—or let me rephrase
it and put—Tell us what people you recognized that were
in these locals there in this group?

A. Well, first was the President of the Palmer Local of
the 5881, Walter Trum.

Q. The Palmer Local, we’re back on 5881?

— 105a —
Testimony of Paul Gibbs

A. Yes, sir.
Q. And the President of that Local was who?
A. Walden Schrum.
Q. Now, without regard to what he said to you, did
99 you actually see him there?
A. Yes, sir.
Q. All right. Who else did you see there?
A. Well, this Bobby Banks, he was a committeeman.
Q. On 5881?
A. Yes, sir.
Q. All right. Without going into what was said there,
who else did you see there?
A. Alder Brewer.

Q. Now, who is Mr. Alder Brewer?

A. Well, I couldn’t say positive, but I think he was
Secretary and Treasurer of the Local at that time.

Q. Of 5881, also?

A. Yes, sir.

Q. Again, the Palmer Local, wasn’t it?

A. Yes, sir.

Q. Now, what others did you recognize there?

A. T. E. Partain.

* * * * * * *

Q. What position did he hold with the Union?
30
319 Q. You said you had a conversation with somebody
connected with the United Mine Workers, didn’t
you?
A. When?
Q. Well, just after the trouble in August, 1960?
A. While they was having that trouble over there?
Q. Yes, sir. Who did you have a conversation with?
A. George Gilbert. He stopped at the house.

321 Q. Did you know George Gilbert was coming there
ahead of time?

A. No, sir, he just stopped by.

Q. Just stopped by to visit with you, and by himself?

A. Most of the time.

Q. Well, I’m talking about the time of this conversation?

A. Oh, yes, sir.

Q. By himself that time?

A. Yes, sir.

Q. How did the subject of Paul Gibbs come up?

A. I just asked him what the trouble was, and that is
when he told what the trouble was. That’s all I ever
said.

Q. Before this conversation, had you seen him at the
picket line?

A. That was after that I seen him.

@. You mean after this conversation, at a later date,
you saw him up there?

A. Yes, sir.

— 222a —
Testimony of Howard Higgins
Q. You say he brought some food there?
A. Yeah, he was going into the Pocket for something

and he raised his trunk and he had some food, and he
went on.

324 HOWARD HIGGINS,
after being duly sworn, the witness testified as follows:

Direct Examination,
By Mr. Van Derveer:

Q. Will you state your name, please, sir?
A. Howard Higgins.

Q. Who do you work for now, Mr. Higgins?

A. Grundy Mining Company.

Q. How long have you been with the Grundy Mining
Company?

A. Something like three months, I guess.

Q. What is your job over there?

A. Mine foreman.

Q. How long have you been in the mine business?

A. Do you mean as an operator, or mine foreman, or
what?

Q. How long have you been in the whole kitten ka-
boodle; working in the mines, and ail?

A. I went into the mines in 1930.

Q. And been there ever since?

A. Yes, sir.

Q. Both as a miner and as an operator?

A. That’s right.
325 Q. Have you ever been a member of the United
Mine Workers of America?
A. Up until 1960. September.

— 223a —
Testimony of Howard Higgins

Q. How many of these foremen do you have there with
Grundy?

A. I ain’t for certain, but I believe there’s about seven.

Q. Seven. Now, who hired all of you?

A. Mr. Paul Callis.

Q. At the time that all of you were being hired by Mr.
Callis, there, vs the name of Mr. Paul Gibbs discussed?

A. Yes. It yras.

396 Q. Anyway, Mr. Gibbs was not hired, was he?
A. No, sir.

Q. And, of course, Mr. Gibbs is not working there today.
Now, Mr. Higgins, let’s get back to the events of Au-
gust the 15th and 16th, 1960. Were you over in the area
there, of the Pocket Road and the Gray’s Creek Road?

A. No, sir. On that date I was in Middlesboro.

327 Q. Did you go over to that area, and see what it
was?

A. No, sir. I didn’t. I wasn’t in Gray’s Creek. I went
over to my other mines in the Pocket. It was in the same
area, but not down in Gray’s Creek.

Q. Did you see this group that was there?

A. Yes, sir. The road was full of picketers; of what
I’d call picketers.

Q. Did you see any firearms?

A. No, sir. I didn’t. I never stopped.

Q. You just went on by?

A. That’s right.

Q. On down into the Pocket, I believe?

A. Into the Pocket. Yes, sir.

— -') oa
Testimony of Howard Higgins

328 Cross-Examination,
By Mr. Rayson:

Q. How long had you been an operator of the coal mine,
over there in the Pocket, before you took a job as foreman
for Grundy Mining Company?

A. I went to work for the Tennessee Consolidated Coal
Company as an operator in 1946,

Q. You ran your own mine?

A. Yes, sir.

Q. And you ran it how long, Mr. Higgins?

A. Up until some time in August. I don’t remember

what date this year.
329 Q. Some time into August, this year?
A. Yes, sir.

Q. Did you have one of these mines that had ten or
fifteen employees in it?

A. Off and on, anywhere from eight to fifteen, maybe
twenty sometimes.

Q. And, yours was one of the Pocket Mines of Tennessee
Consolidated Coal Company, that you had reached by
going past this intersection——

A. That’s right.

Q. At Gray’s Creek?

A. Yes.

Q. How many of those mines were there? ~~

A. You mean in the pocket?

Q. Yes, sir, of Tennessee Consolidated?

A. Well, I wouldn’t know. There’s about thirteen or
fourteen of them.

330 Q. In any event, you’re now working as the fore-
man in one of these mines?
A. Yes, sir.
Q. Twenty-five dollar a day man, now. Is that your
salary?

—_—
Testimony of Paul B. Callis

A. That’s right.

Q. You don’t do any hauling for those mines, do you,
Mr. Higgins?

A. You mean trucking?

Q. Yes, sir.

A. Yes, sir, I do.

Q. Do you truck from your own mine?

A. Yes, sir.

Q. Do you own your own truck?

A. My son-in-law is doing the trucking. No, I don’t
own it. He does.

Q. You mean it’s your son-in-law that does the trucking?

A. That’s right.

Q. Does he own one truck?

A. Just one.

Q. You were in Middlesboro, Tennessee, or Murfreesboro,
or where were you?

A. Murfreesboro, Tennessee.

332 PAUL B. CALLIS,
after being duly sworn, the witness testified as follows:

333 Direct Examination,

By Mr. Van Derveer:

Q. I believe, sir, that you are Mr. Paul B. Callis, are
you?

A. Yes, sir.

Q. Spelled C-a-l-l-i-s, is that right?

A. Yes, sir, that’s right.

Q. By whom are you employed at the present time?

A. Grundy Mining Company.

Q. In what capacity?

— 226a —
Testimony of Paul B. Callis

A. President.

_Q. What position, if any, do you hold at the present
time with Tennessee Consolidated Coal?

A. President.

Q. Who are the officers, now, of the Tennessee Consoli-
dated Coal Company?

A. Myself, Houston Beaumont, William B. Allison. Mr.
Beaumont is Vice-President and Secretary, and Mr. Alli-
son is Treasurer...

Q. And who of the...

A. Mr. Stanley Hampton is Chairman of the Board,
without official capacity, and Mr. Everett B. Roberts is
Chairman of the Executive Commmtiten, without executive
power.

Q. Who, sir, are the present officers of the Grundy Min-
ing Company? :

A. The same officers we for Tennessee Con-

solidated.
334 Q. Now, let’s jump back te the 15th and 16th of
August, 1960. Who were the officers at that time
of the Tennessee Consolidated Coal Company, and who
were the officers of the Grundy Mining Company?

A. Mr. Stanley Hampton was President of Tennessee
Consolidated; first, there was no Chairman of the Board
of Tennessee Consolidated at that time. Mr. Stanley
Hampton was President, Mr. Everett Roberts was Vice-
President of Operations, Mr. Callis, myself, was Vice-Pres-
ident of Sales, Mr. Houston Beaumont was Secretary, and
I believe I was serving at that time as Treasurer, due to
the death of Mr. Byron Roberts. The officers of Grundy
at that time were Mr. Harwood, an attorney from Nash-
ville, serving in the capacity of President. There were no
other official officers appointed at that time.

— 227a —
Testimony of Paul B. Callis

Q. No. What I’m talking about is, are your duties
primarily with sales or production of coal, or what? What .
do you do, primarily, with the company?
335 A. Today, production.
Q. Production. How about back in 1960 on the
15th and...
A. Sales. I was Vice-President in charge of sales.
Q. At that time?

A. Yes, sir.
* * * * * * *

Q. Now, back to the fifteenth of March and up to all
times since then, has the Tennessee Consolidated Coal
Company and/or Grundy Mining Company operated with-
out any sort of a contract with the United Mine Workers

of America?
336 4A. Yes, sir.

Q. And is that the way those businesses are being
operated today?

A. Yes, sir.

Q. Now, following the exchanges of correspondence that
you hold, state whether or not you, along with any other
officers of either of these companies met with any of the
officials of the United Mine Workers in regard to the re-
negotiations of a contract?

A. Speaking now for Tennessee Consolidated?

Q. Yes, sir.

A. Yes, sir.

Q. Where did those meetings take place, who was there,
and the best you can, the dates?

A. Are you speaking now on or after the termination,
the effective date of the termination?

Q. On and after the effective date...

A, Or on and after the notice?

Q. Let’s take it on and after the notice.

Testimony of Paui B. Callis

A. On and after the notice, we met officially in Knox.
ville with the officials of District 19 and the officials of
Local 581. We met a second time, but that meeting was
adjourned for a second meeting in Chattanooga; then
there were subsequent meetings conducted by Mr. Roberts
at Palmer, in the interest of saving the expense of travel,
Those meetings took place between I’d say January the

lst and March the 15th. They could be a little one
337 way or the other.

Q. What officials of the union, meaning District 19,
were at either of these meetings?

A. Mr. Ridirgs—President of District 19, Mr. Task and
Mr. Gilbert, Mr. Harvey Brown, Mr.—several of the local
men. I can’t recall the names, but a total of 13 or 14
union officials between the local at Palmer and the Dis-
trict 19.

Q. Among those, in addition to those union officials from
District 19 in Middlesboro, if I understand your testimony
correctly, there was some of the local officials of local
unions, both 7083 and 5881. Is that correct, sir?

A. I am not sure about 7083, but I am sure about Local
5881. .

Q. Did some of those meetings also take place in Palmer!

A. Yes, sir. 3

Q. Which is your headquarters, isn’t it?

A. Well, after the meeting in Knoxville and the meet-
ing in Chattanooga, then Mr. Roberts met with them on
a local level.

Q. Did any of those meetings, or did any of those ne-
gotiations result in the execution of a new contract be-
tween your company and the United Mine Workers of
America?

A. No, sir.

Q. The last direct conversation, which I understand that

‘

— 2299 —
Testimony of Paul B. Callis

you had with Mr. Ridings, then, was at the meeting here
in Chattanooga?
A. How far forward from March 15th of 1960 are
338 you speaking of; Up to the present time?
Q. Yes. Have you had recent meetings with Mr.
Ridings?

A. Well, you see, after a year has gone by, in June
of 61 I was elected President. I had several meet-
ings with Mr. Tony Boyles, in Washington, Mr. Kennedy,
and talked with several of the International officials about
the problem, and then about several problems relating to
mechanizing, and so forth.

Q. During all of that period of time, whether the meet-
ing was in Palmer, Washington, or where it was, was the
topic of discussion the execution of this National Bitu-
minous Wage Agreement of 1958, as amended?

A. Yes, sir. We asked, first if the contract could be
amended to fit the economic conditions in this field.

Q. Yes, sir. Now, without going any further, that’s
Wes.

Mr. Rayson: Your Honor...

Q. Let’s move off of that subject ...

Mr. Rayson: asked the witness what period he is talk-
ing about, and that is immaterial, we think.

The Court: All right.

Mr. Van Derveer: Let me clear up Mr. Rayson’s one
question and we’ll move on.

Q. Did that deal with the period of time immediately
following the cancellation of the contract?

A. It did . . . let me say this; no, it did not.

Q. Do you know the terms of employment between
339 the Grundy Mining Company and Mr. Paul Gibbs?

A. No, sir, I don’t. It would be hearsay if I were
to say that.

sees Mc
Testimony of Paul B. Callis

Q. That employment took place, the testimony showed,
by phone, I believe, and you weren’t . . . how did you re.
ceive information about Mr. Gibbs...

A. Hearsay.

Q. Yes, sir. Was that relayed to you by whom?

A. Mr. Harwood.

Q. Mr. Harwood. All right, sir. Now, Mr. Callis, were
you out in the Gray’s Creek area the 15th or 16th of
August, 1960?

A. No, sir.

Q. You did not go there either day?

A. No, sir.

Q. So what actually transpired there, of your own per-
sonal knowledge, of course you do not know, do you?

A. That’s right.

Q. That was the 15th and 16th. Let’s move to the fol-
lowing day, which was the 17th. Where were you on the
17th of August, 1960?

A. At the Tracy City office, concerned about being in-
volved in sales, and responsible for sales, concerned about
the contracts and shipments of coal, and made arrange-
ments to go to Palmer to the shipping office and the

Vice-President in charge of operations office ...
340 Q. Who was——

A. Mr. Roberts—to discuss what had taken place,
and what chances there were for production of a contract
at T. V. A.

Q. Do you recall the events that took place on the 17th
of August, 1960?

A. Yes, sir.

Q. Where did these events take place?

A. Palmer.

Q. Who was with you at the time?

A. Mr. Allison, the Treasurer.

— 231la —
Testimony of Paul B. Callis

Q. Treasurer of the company. At that time, you had
certain contracts to fill, is that correct?

A. Yes, sir.

Q. Very briefiy, Mr. Callis, and without me interrupting
you any more often than necessary, tell us what time of
the day you went over to Palmer, you and Mr. Allison, and
what transpired while you were there?

A. The best I can remember, it was after lunch, ar-
riving at the Palmer office sometime, I’d say around two,
calling Mr. Roberts by phone. He came to the office from
his house where we discussed what had taken place——

Mr. Kramer: Now, your Honor, we object to this dis-
cussion and what transpired there among the officers of
this corporation——

Q. Well, Mr. Callis, they object to that. Let’s limit
341 ‘this to just exactly what happened, without regard

to what was said between any of the parties, what-
soever; just exactly what was said? I mean what was
done?

A. When I finished my discussion with Mr. Roberts and
said let’s go to the store and have a Coca-Cola, we pro-
ceeded across trom the office to the company commissary.
A great number of men had come into town. I went into
the commissary store, went through the crowd into the
commissary store with Mr. Roberts and Mr. Allison, had
a Coca-Cola. After about 20 minutes of passing the time
of day I told Mr. Roberts I had to get back——

Mr. Kramer: I object to this your Honor——

- Mr. Van Derveer: That’s right.

Q. Leave the conversations out and——

A. Left the store, came outside; the group had reached
probably 100 or 125 men——

Q. Excuse me. Were there any firearms there?

A. Mr. M. L. Gary jumped upon the platform——

— 232a —
Testimony of Paul B. Callis

Mr. Kramer: Your Honor, I object to this as being
wholly irrelevant and immaterial for any purpose in this
lawsuit——

342 The Court: I’ll overrule the objection.

Q. Mr. Callis, I want to point out to you, for the re.
mainder of this testimony, do not, under any circum.
stances, relate what someone said to you or what you
said to someone else. Now, after you left the commissary
there, I believe, and your Coca-Cola, accompanied by Mr,
Allison, were you?

A. Yes, sir.

343 Q. What happened to either you or to him?

A. Mr. M. L. Gary——

Q. Just a minute. I don’t want you to even use any
names on that; just what happened.

A. One of the men grabbed my right arm, underneath
on the tender skin, pulled my arm away, I was cursed
with the most vile language that I have ever heard, I
was told to get out——

Q. Just a minute, now. Do not say anything that was
said, see. Not one single word that was said. After this,
what did you do and what did Mr. Allison do?

A. I walked through the crowd, where there were guns
visible, end got in the car, and as I got in the car a—

Q. Go ahead.

A. ——truck pulled in front of the car; a man got out
and put a 30.30 carbine on me as I was getting in the
car; we left town normally and cautiously.

Q. When you left, who was with you at the time?

A. Mr. Allison.

Q. When you left, you and Mr. Allison, where did
you go?

A. Back to Tracy City.

— 233a —
Testimony of Paul B. Callis

Q. Can you identify in that mob, that group, excuse
me, any of the members of either 7083 or 58811?

A. Yes, sir.

Q. Now, name them. Not what they said; Just name
them.

A. Mr. M. L. Gibbs, Mr. Fred Morrison, Clarence Mc-
Govern and Mr. M. L. Gary’s younger brother, I don’t
recall his name.
a * @ * s & e
344 Q. All right, let’s put it this way. How long was it

before you were able to get any production out of
those Gray’s Creek Mines? When were they open?

A. Many months, I don’t know the exact time.

Q. Now, at the time they were opened, and to a degree
this is repetitious, how many mines are there up there,
now?

A. Eight.

Q. Yes, sir, but they are in production now, in varying
degrees, are they not?

A. Yes, sir.

Q. And how many foremen do you have in that area,
there?

A. In excess of fifteen.

Q. Yes, sir. Now, in employing those men, you did not

employ Mr. Gibbs, did you?
345 rPOoPOPOD

— 237a —
Testimony of Paul B. Callis

Q. Now, that company continued to operate under a con-
tract with the United Mine Workers, didn’t they?

A. Yes, sir.

Q. All right. You say that Tennessee Consolidated has
not had a contract with the United Mine Workers since it
eancelled its contract, back in the first of 1960. Is that
correct?

A. That’s correct.

350 Q. 1 asked you if your company did not, in the
spring of 1961, enter into a contract with the Allen and
Garcia Engineering Company?

A. Yes, sir.

Q. As a part of your understanding with Allen and
Garcia, is it not true that Allen and Garcia was to operate
your Coal Valley Mine, providing you worked out a con-
tract with the United Mine Workers?

A. Yes, sir. :

Q. And then did work out a contract with the United
Mine Workers?

A. And they signed it.

Q. Allen and Garcia signed it?

A. Yes, sir.

Q. You reimbursed Allen and Garcia for all of its ex-

penses?
351 OrOorPop>

©

. I’m asking you. Are you saying that your own gen-
eral superintendent did that to you?
355 A. All I said was he was with the crowd.
Q. I’m asking you if you do say that?

A. No. 1 don’t say that.

Q. You say you saw two checks, which you understand
were given to buy groceries for some of the coal miners,
were given to them by District 19. Do you recall when
you saw those checks? Can you pinpoint that date?

A. How close do you want to pin that down?

Q. Let me ask you this: Wasn’t that in November or
December of 1961, Mr. Callis? Does that sound about
right to you?

A. I can’t remember the exact time, Mr. Rayson.

Q. Did you lease this strip mine land to Mr. Gibbs and

— 24la —
Testimony of Paul B. Callis

that other fellow after your Whitwell Coal Company
stopped stripping?

A. Some time after.

Q. Was it the same land?

A. Oh, no.

Q. But it was after you stopped stripping operations
with your own company?

A. Yes, sir.

Q. And it was after that that you leased this strip mine
land to Mr. Gibbs and Mr. Sanders?

A. Yes, sir.

Q. Can you tell us how this new mine of yours in the
Dogwood Flats area or Gray’s Creek area compares from

a mechanization standpoint with the other mines
356 here in this part of the country?
A. Are you speaking of the big mines?

Q. Yes, sir.

A. It’s the—of course, you asked of the present com-
pany, it’s the most modern mine in Tennessee, as far as
I’m concerned. The equipment is the most up-to-date.
We’re having quite a bit of trouble finding qualified people
to man the equipment.

Q. Does it take skilled people to run it?

A. Very definitely.

Q. Does it take skilled people to manage it?

A. Sir?

Q. Does it take skilled people to manage this equipment?

A. It certainly does. I had to discharge one that didn’t
pan out yesterday.

357 Q. How much, just roughly, is the investment in——

A. I couldn’t give you the exact dollar, but I
can give you a pretty fair guess. To equip a mine of
this type it would run about $30,000.00 per man——

— 242a —
Testimony of Paul B. Callis

Q. And how many men would you——

A. This is a varying factor. We haven’t fully equipped
it yet. We’re preparing to add another unit. Those nnits
cost $150,000.00 apiece; we have two units in the mine
now, and are preparing to put a third one in. The active
equipment represents approximately 50 per cent of the
total, overall underground investment, and then you have
the developmental cost from the outside, erection shops,
and so forth, so it will knock a pretty big million dollar
bill in the hole; put a big hole in it.

Q. This mine, of course, replaced your Coal Valley
Mine?

A. Yes, sir.

Q. In the broad sense?

A. Yes. ;

Q. Is it not true that the mines that Mr. Gibbs was to
open in 1960 were five mines with eight employees each?
Was that not the schedule that your company had worked

out?
358 A. It could have happened one of two ways; it
could have been five mines, or it could have been
two mines.

Q. Well, let me ask this. Was that not your plan when
Mr. Gibbs was engaged?

A. It was a double plan; it depended on what happened,
and how the men reacted whether we were successful or
not. The basic plan was to install two mines to produce
approximately 600 tons in each, per day, double shifting,
the idea being to install two CLR loaders to five Twelve
cutting machines, two—61 AM Fan conveyers, and our
30 inch conveyer belt line, and the proper bin arrangements
on the outside.

Q. You testified previously on the pre-trial deposition
of this case, and I believe you explained in that deposi-
tion that you didn’t know then whether or not you would

— 243a —
Testimony of Paul B. Callis

run these mines for your own account, or whether or not
you would lease them out to an individual operator? :

A. They were to be leased out after they were success-
fully in production because the company was unable to
conduct business with the union up there, in dealing with
the men, whereas individuals seem to be able to get men
to work for six, eight, or ten dollars a day cheaper then
we could.

Q. In any event, you didn’t know how long Mr. Gibbs
would actually be on your payroll? You didn’t know how
long it would take you to get them into production?

A. Do you mean on salary?

359 Q. Yes.

A. No. On salary I don’t know, but now on lease,
it would have been for the full extraction of the tonnage
that was allocated to the mine.

Q. As of August 15th, you didn’t heow how long it
would take you to get those mines in production, did you?

A. No, sir.

Q. It might have been a month, or it might have been
two months?

A. Well, you see, in building a mine, Mr. Rayson, it
takes developmental time. You don’t fully develop the
mine until you’ve penetrated your entries, developed your
cross entries to get into room work, before you realize
full production.

Q. Yes, sir.

A. We’re still in developmental stage with this mine,
yet it has been producing two or three months. We
won’t reach full production from our room work on the
eross entries on this Gray’s Creek Number eleven mine,
until probably after the first of the year.

Q. Are you speaking of your large mechanized mine,
now?

— 244a —
Testimony of Paul B. Callis

A. Yes, sir. And the same thing is true of a small
mine; you must develop your entries to create room work,
Q. I’m asking you this because I certainly don’t knoy.
Is it not true that it would take less time to develop one
of the smaller mines to its potential than it would a larger
mine?
360 A. Yes, sir. The size of the mines directly purport
to the development time.

Q. Is it not reasonable to estimate that something on
the order of a month or two months is about the normal
time to open one of these smaller mines and get it to its
production?

A. Not the type mine that was intended by the opera-
tions department for Mr. Gibbs.

Q. Would you say two and a half or three months?

A. It would take, in my opinion, somewhere between
six months and a year to get it into full production, to get
the two of them. Of course they’re both the same type.

Q. But depending on what happened during this in-
terval, you say then is when your company would decide
whether or not to lease out these mines?

A. No. We were going from the beginning, to definitely
let Mr. Gibbs have a lease, but to aid the developmental
cost, the company was spending money, and hired Mr.
Gibbs to develop the mine, to put the mine in, and get
it up into development, because I’m sure that Mr. Gibbs
does not have the kind of money that it would take to
put a mine in, but to get his manpower, and develop the
mine, and get it into production. Then, once it was done,
we would then in turn lease the mine to him. He had
the lease, but he was on salary until he reached produe-
tion.

Q. Then you don’t know just exactly how long it would

take to reach production on those mines?
361 A. It would be a guess.

— 245a —
Testimony of Paul B. Callis

Q. Just a guess?

A. Yes, sir.

Q. Of course, your agreement with Mr. Gibbs, you could
change it at any time you wanted to; you didn’t have
any commitment with him as to how long he was to stay
on salary, or anything else, is that correct?

A. No, sir. That was Mr. Harwood.

Q. You didn’t know Mr. Gibbs before that, did you?

A. Yes, sir. I’ve known Mr. Gibbs since 1946.

Q. You hadn’t met him before that?

A. No; October of ’46.

Q. Who was your operating man in 1960? Who was the
head of your operation?

A. State that again.

Q. Who was the head of your operations down here,
in 1960?

A. Mr. Everett Roberts.

Q. He was the man who would make these kind of
decisions? 2

A. He and Mr. Hampton. As I mentioned to you on
the deposition, the most decisions were group decisions,
but Mr. Hampton, being President, and Mr. Roberts being
Vice-President, they were the final say on operations.

Q. Mr. Hampton stayed in Nashville, and Mr. Roberts
stayed here, in this area——

A. Palmer.
362 Q. Palmer. Does he still live there?
A. Yes, sir. He lives in Palmer.

— 246a — 2 X

Testemony of William B. Allison

363 WILLIAM B. ALLISON,

having first been duly sworn, testifies as follows:

364 Direct Examination,

By Mr. Van Derveer:

Q. Will you state your name, please, sir.

A. William B. Allison.

Q. And by whom are you employed, Mr. Allison?

A. Tennessee Consolidated Coal Company.

Q. In what capacity?

A. Treasurer.

Q. Now, let’s go back to the 15th and 16th of August,
1960, At that time, by whom were you employed?

A. Tennessee Consolidated Coal Company.

Q. In what capacity?

A. I was not an officer of the corporation at that time.
I was new with the company and just had come with it
a few months prior.

Q. What position, if any, did you hold with the Grundy
_ Mining Company?

A. None, whatsoever.

Q. Now, on those dates, or immediately prior to it,
where was your office, or where were you actually located?

A. Tracy City, Tennessee.

Q. In the offices of the Tennessee Consolidated Coal
Company, I believe?

A. That is correct.

Q. Now, do you know of your own knowledge, any-
365 thing at all about the events that took place out
in the Dogwood Flat area the 15th and 16th of

August, 1960?

A. No, sir. I was not present there. I cannot give of
my own knowledge.

— 247a —
Testimony of William B. Allison

Q. Yes. Now, on the 17th of August, that is, the day
following, which I believe was on Wednesday, were you
in the Palmer area?

A. Either the 17th or the 18th.

Q. Yes, sir.

A. It could be verified.

Q. Now, who, if anyone, was with you at that time?

A. Paul Callis.

* a * * * * *

Q. And do I understand you correctly, sir, to say that
the two of you were there in Palmer?

A. That’s correct.

Q. Now, Mr. Allison, without—and I want to caution you
to be extremely careful—do not relate anything whatso-
ever that was said to either you or to Mr. Callis that day
—nothing that was said—but in your own words, briefly
but completely, tell us what happened when you arrived
at Palmer that day?

Mr. Kramer: Your honor, if it please the Court, this

is evidence similar to what your honor heard yes-
366 terduy—the same objection without going into de-
ta']——

The Coart: All right. Overrule the objection.

A. We arrived in Palmer some time shortly after lunch.
I wouldn’t be exact on it—I’d say one to two o’clock,
along in that neighborhood. After certain conferences
and business discussions in the Palmer office, we proceeded
to go to the commissary before leaving Palmer. On going
to the commissary, we went through a rough crowd of
men and into the commissary in the company of one other
person. We discussed normal discussions within the com-
missary, and on leaving, when we came out, the mob was
considerably larger.
Q. Were there any firearms present?

— 248a —
Testimony of William B. Allison

A. There was later.
Q. Yes, sir. Go ahead, sir.
A. At that time Mr. Callis was grabbed by the arm
367 under here. Conversation ensued. I turned and put
my back to Mr. Callis’ back as a matter of protection
to both of us. And due to the attitude of the mob, the
things that occurred, it was best for us to leave, and leave
promptly. I’m trying to leave conversation out, that’s
why it’s hard——
Q. That’s all right. Go ahead.
A. So we left, proceeded to get into my automobile, and
I was driving. A panel truck drove up and attempted to
block us from backing out. Then it pulled to the side to
attempt to block us if we got out. They began to jump
out of that, the men did. I very calmly backed the car
between the back bumper of the panel truck and the curb,
back out into the street like, turned and started to leave
promptly. As we started to leave, two cars of young men
pulled in side by side, taking each lane of the road, as we
started over the railroad track and up the hill, which did
not allow us to pass and we drove at about 10 miles or
15 miles per hour. We calmly drove behind them and
after we got over the hill, one proceeded to turn off. The
other one we did not attempt to pass until we got clear of
all bridges, where if anybody cut into us, we had shoulder
to take it off on. At that point we passed them and pro-
ceeded at full speed back to Tracy City.
Q. Now was there much or little violent or filthy lan-
guage used that day?
A. What was used was violent and filthy.
368 Q. All right, sir. Did you recognize in the—you de-
fined crowd or group or mob—any of the people
that were there?
A. Yes, sir. I did.

— 249a —
Testimony of William B. Allison

Q. Who were those, sir?

A. There was Marvin Lee Guerry; there was Chief
Guerry—Chief is a nickname.

Q. Yes, sir.

A. And there was Fred Morrison. There was a Guerry
boy, whose first name I cannot call.

Q. Yes, sir.

A. And there was Clarence McGovern.

Q. Yes, sir.

A. And I wouldn’t attempt to try to name in the excite-
ment any other names, no more familiar than I was——

Q. Were any firearms drawn upon either you or Mr.
Callis?

A. There was a firearm taken from the panel truck.

Q. All right, sir.
369 A. Now, I didn’t watch it any farther at the time,
after it was taken, because I had one job and that
vas to concentrate on getting through 6 inches and out of
there.

Q. So—

A. I just turned my head from it, turned to the back,
and backed right out.

Q. All right. Now, I believe you said you went on
back to Tracy, did you not?

A. Yes, sir.

Q. You and Mr. Callis. Now, the night of the 16th,
which I believe, Mr. Allison, was the day of the night
before the events that you’ve just testified about, did you
see Mr. Paul Gibbs?

A. Yes, sir, I did.

Q. Where?

A. I saw him all night long, just about.

Q. Were you with him most of the night?

A. A bigger part of it.

Q. And who was with you, other than Mr. Gibbs?

— 250a —
Testimony of William B. Allison

A. Mr. Paul Callis and Mr. Houston Beaumont.

Q. The three of you with Mr. Gibbs?

A. Yes, sir.

Q. Where did the four of you spend that night?

Mr. Kramer: Now, your honor, we object to that—as |

recall the objection was sustained——
370 Mr. Van Derveer: I believe that certainly an ob.
jection was sustained to certain opinions as to why
they were together, but as to what they actually did, I
don’t recall the Court .. .

The Court: Overrule the objection at this time.

Q. Now, here again, Mr. Allison, I do not want yon to
relate anything at all that was said, even between any of
you or anyone else, but limit your testimony to exactly
what you saw. What time of the evening of the 16th did
you meet Mr. Gibbs?

A. To recall the exact time, it was after the dinner hour
—I’d say along the neighborhood of 6, 7-7:30—along in
there.

Q. And how long did the three of you stay with Mr.
Gibbs that night?

A. We met Mr. Gibbs in Monteagle.

Q. All right. And how long did you stay with him that
night? é

A. Off and on, we stayed with him all night.

Q. All right, sir. And what time the following morning
was it that you left Mr. Gibbs or Mr. Gibbs left you?

A. I would say in the neighborhood of 6 o’clock.

Q. 6 o’clock the following morning?

A. Yes, sir.

a * * * * * *
371 Q. Now, Mr. Allison, there’s an allegation in this

original petition that the Grundy Mining Company
did have a ready market for its coal, specifically a con-

— 25la —
Testimony of William B. Alliz.n

tract for the delivery of certain coal to the United States
Navy. Is that true?

A. Grundy Mining Company was the producer on a con-
tract bid by Tennessee Consolidated Coal Company to
supply approximately 35,000 tons of coal to Redstone

Arsenal.

372 Q. Now, Mr. Allison, is the Gray’s Creek area mine,
or is the Gray’s Creek Mine or the Grundy Mine
there in operation today?

A. Yes, sir.

Q. It is in active production today, is it?

A. Yes, sir.

Q. And how many different—whether you call them
foremen or superintendents or so forth—does the com-
pany have in that immediate area?

A. We have 10 in addition to the large mine.

Q. Yes, sir.

A. Now, there are one or two of those mines that are
in strictly preliminary stages and may not be moving as
yet.

Q. In the process of being opened? Did you, when you
opened these mines, after the period of time that they
were closed, or kept from being opened, did you employe

Mr. Gibbs?
373. =A. No, sir.

Q. Although you did employ—or your company did
employ—others in the same or similar capacity?

A. Yes, sir.

Q. On these mines—or in these mines—without going
into details of each particular classification, but in what
you refer to as the big mine, and if there’s any difference
what will be referred to as the small mine, what is the
daily pay scale that you are paying there?

— 252a —
Testimony of Willium B. Allison

A. Well, to take a rough average, in the big mine, it’s
about $26.00 a day, or $130.00 a week.

Q. Now is that on a single shift?

A. That’s on a single shift.

Q. $130.00 a week?

A. Yes.

Q. Now, if—or are these mines working any of them on
a double shift?

A. Yes, sir. They’re working different men on the sec-
ond shift.

Q. I see. Now, of course, the different classifications
there—some make more, some less, is that. . . .?

A. There is a variation between a machine operator,
cutting machine operator, or loader, shuttle car operator,
they’re paid per scale for their job classification. There’s
not a great variation in them, but there’s a little accord-

ing to skill.
374 Q. But then am I correct in saying that what you
would define as the mean pay—the average pay—
that’s roughly $26.00 per day?

A. That’s what I’m thinking of, yes, sir. Just an aver-
age.

Q. We have nothing further of this witness.

Cross-Examination,
By Mr. Rayson:

Q. Mr. Allison, you have told the jury about a group of
men that you referred to as a mob, that you saw around
the 17th or 18th of August in Palmer. And you’ve identi-
fied 4 men amongst them: M. L. Guerry, Chief Guerry,
Fred Morrison, and Clarence McGovern. Is that correct?

A. That’s correct.

— 253a —
Testimony of William B. Allison

Q. Now, Guerry was then employed at your—or
375 then had been employed at your Coal Valley Mine,
was he not?

A. That is correct, sir.

Q. And he was the one who grabbed you by the arm,
wasn’t he? Or grabbed Mr. Callis?

A. Grabbed Mr. Callis.

Q. By the arm. Was he under the influence at that time?

A. I would think he was.

Q. And is he the one who spoke rather harshly to you?

A. He spoke rather harshly to Mr. Callis when I turned
my back around to Mr. Callis. Then the one that spoke
directly harshly to me was his brother. The big Chief is
his brother.

Q. Yes. Was he an employee of your company, too?

A. He was a previous employee, yes.

Q. Now, did Mrs. Guerry, or one of those people, later
call you on the telephone and apologize?

A. Not to me, sir.

Q. Did they convey some apology to you?

A. Chief gave—conveyed an apology to me.

Q. Yes, sir. And these Guerrys were rehired by your
company ?

A. Yes, sir.

Q. Now, Fred Morrison——

A. Excuse me, Chief Guerry was not rehired at the
time, because there was not anything that he could qualify
for.

Q. I see.
376 A. That was the only reason. Marvin Lee, the one
who grabbed hold of Mr. Callis, was reemployed.

Q. Yes, sir. Now you say Fred Morrison was a part of
that mob, too?

A. He was in it, standing there.

Q. Have a gun?

— 254a —
Testimony of William B. Allison

A. If he did, I couldn’t see it.

'Q. Now, Fred Morrison is not a member of the United
Mine Workers?

A. No, sir, he is not.

Q. He’s your general superintendent, isn’t he?

A. He was at that time, but he’s never been since then,

Q. He’s your—he has a lease from you people now, and
is working on a lease, isn’t he?

A. Yes, sir, he’s an independent operator.

Q. Yes. How long were you there in that yard that day
in front of the store?

A. At a time like that, it’s hard to judge time.

Q. 10 minutes?

A. So I ask you to forgive me if I’m wrong. 10 minutes
would be very good.

Q. How many men would you say were there?

A. By the time we got away, I’d say there was 75 to
a 100.

Q. But you left after about 10 minutes?

A. Yes, sir.
377 Q. Now, Mr. Allison, you talked about your large
mine on Gray’s Creek?

A. Yes, sir.

Q. That’s the m. where you’re paying your men
approximately $26.00 a day?

A. Yes, sir.

Q. Is that correct?

A. Some more, some less.

Q. Those men are members of the United Mine Workers
Union?

A. To my knowledge, I think all of them are members
of the United Mine Workers. Now. they could or could
not be, accordingly. I can’t verify it, but I’d say the
majority of them are.

— 255a —
Testimony of William B. Allison

Q. Now, you’re not saying that you pay that scale
in the other mines that you have there, are you?
A. The other mines are not highly mechanized.
Q. No.
A. They will make from—a little better than a $100.00
a week . . . better than 20 dollars a day.
Q. They make right at $20.12 a day.
A. $20.12. Last week I think most of the men in those
mines made around $130.00. They worked on Saturday.
Q. All right, sir. And in fact you hire a foreman in
those mines—in ,your non-mechanized mines—for $25.00
a day, don’t you?
A. That’s correct, sir.
Q. So you’re actually paying the foreman in those
378 mines less than you’re paying the coal miners in
the other one?
A. That’s correct, sir.

The Court: Just a moment. Mr. Allison, did you at the
time of the incident there at the commissary, did you
know Mr. George Gilbert?

A. No, sir. I didn’t.

The Court Did you know any members of the District
19, at that time, or did you see or recognize any of those
members there?

A. No, sir. And I don’t think I’d met any of them
at that time.

The Court: All right.

(Allison excused.)

Mr. Kramer: Your Honor, I renew my motion to strike
this evidence with reference to the occurrence over
there-———

The Court: I believe the motion to strike should be
overruled.

‘ 256a a
Testimony of Jim Campbell

414 JIM CAMPBELL,

having first been duly sworn, testifies as follows:

Direct Examination,

By Mr. Van Derveer:

Q. Will you state your name please, sir?

A. Jim Campbell.

Q. Where do you live, Mr. Campbell?

A. Tracy City.

Q. And how long have you lived there?

A. All my lifetime.

Q. And what age man are yon?

A. 48.

Q. Have you ever worked in or around the mines in
that area? ,

A. Ever since I’ve been big enough to work, that is all
I have ever done.

Q. Now, what type or kind of work did you or have
you done over there over the years?

A. Mining coal and hauling coal.

Q. Have you—are you an operator over there?

A. Yes.

Q. Do you run a mine now?

A. Yes.

Q. And where is your mine?

A. It is Tepeo property.
415 Q. Now, you have used the word Tepco, meaning
what?
A. Tennessee Products and Chemical Corporation.

Q. How long have you known Mr. Gilbert?
A. Several years, I’d say since 1953 or 754.
Q. Now, who is this Mr. Gilbert?

— 257a —
Testimony of Jim Campbell

A. He is field representative for the UMW.

Q. Do you know Mr. Paul Gibbs, the plaintiff in this
ease?

A. Yes.

Q. How long have you known Mr. Gibbs?

A. Well, a long time, 25 years.
416 Q. Now, Mr. Campbell, and I direct these next few
questions now to that period of time, the 15th,
16th, 17th of August, 1960. Did you see Mr. George Gil-
bert on either of those days?

A. I seen him about the 17th.

Q. And where were you when you saw him?

A. At his home.

Q. What was the occasion for you going there?

A. Well, I went down to have a talk with him about
something that had happened.

Q. All right, sir. And who, if anyone, was present
there other than you and Mr. Gilbert?

A. Just me and Mr. Gilbert.

Q. And I believe you have told us it was at his home.
Can you fix the time of day the best you can?

A. It was in the afternoon.

Q. All right. And while there, did Mr. Gilbert make
certain statements pertaining to or relating to Mr. Paul
Gibbs?

A. Yes.

Q. What statements were those that he made?

A. Well, he said Paul was trying to bring the Southern
Labor Union into the coal fields.

417 Q. What if anything did Mr. Gilbert say further
in that regard?
A. Well, he said the union wouldn’t let him do it.
Q. What further if anything did Mr. Gilbert say?

— 258a ~
Testimony of Jim Campbell

A. Well, he said they had ways of preventing him from
doing it.

Q. What further if anything did Mr. Gilbert say about
or relating to Mr. Gibbs?

A. That’s about all. He talked about what had hap.
pened down at Gray’s Creek, and he seemed to think
Gibbs was going to have to go.

Q. What statements, what further statements if any,
did Mr. Gilbert make about the ways and means that—by
which Mr. Gibbs had to go?

A. He said he had friends in high places that could
move him out from the mining business.

Mr. Van Derveer: You may ask him.

Cross-Examination,

By Mr. Rayson:
Q. You related this conversation to Mr. Gibbs, I take

it?
A. Sir?
Q. You related this conversation that you had with
Mr. Gilbert to Mr. Gibbs?
418 A. Well, I don’t remember it, I must have talked
it somewhere, I’m here as a witness.
Q. You talked to Mr. Gibbs about this?
A. Yes, I talked to Mr. Gibbs about it.

419 Q. Well, you have told Mr. Gibbs, I take it, about
this?

A. I might have.

Q. Now, I’m asking you about Mr. Gibbs. Weren't
you and he in business together some way?

A. No, we had a contract through Tennessee Products
at the cement plant. I put in half of it and Mr. Gibbs put
half.

_—
Testimony of Paul Gibbs

Q. I see. And that was the contract that was cancelled
pecause of the high ash, wasn’t it?
A. Well, I don’t know exactly why.
Q. Well, that is what they told you, wasn’t it?
A. The contract was never cancelled.
Q. Well, did you haul any more coal to the cement .. .
A. Still hauling the coal.
Q. You are. Do you have a mine now?
A. Yes.
Q. Where is your mine located?
A. Daus.
Q. In Daus?
A. That’s right.
Q. You had this conversation with Mr. Gilbert in
420 Mr. Gilbert’s home, is that right?
A. Yes.

421 PAUL GIBBS,

recalled.
Redirect Examination,

By Mr. Van Derveer:

Q. Mr. Gibbs, there has been introduced into evidence
here and identified as the plaintiff’s exhibit number 33,
what reports to be a recap of your business activities in
your Products mine for the week ending August 12, 1960.
I’m going to hand you this, and then I would like to ask
you several questions about it, sir. And you may also
refer to your ledger book, if you so desire.

Mr. Kramer: In order that there be no question, your
Honor, you have our objection to this, I guess we’ll make
it at this time.

The Court: Yes, and the objection is overruled.

Q. Mr. Gibbs, what is this Exhibit 331 What does it

report to show?

— 260a —
Testimony of Paul Gibbs

A. That’s the full payouts and the gross receipts for the
week ending August 12, 1960.

Q. Now speak out just a little louder. Now where are
these figures taken from?

A. From this 1960 ledger.

Q. All right, sir. Now are these figures estimates then,
or are they actual figures taken from your ledger sheet?

A. They are actual figures taken from my——

Q. Now, the ledger sheets—Do you know of your own

knowledge that those are the true and correct
422 amounts that are listed therein?
A. I keep my own ledger book, yes, sir.

Q. All right, sir. Now referring to the week ending
that period of time, you showed that you would have taken
in, and some of this is the two products mine, for that
week $2089.46. Is that correct?

A. 48 cents.

Q. 48 cents. At that time, how much were you selling
this coal for?

A. $4.05 a ton.

Q. Now, to whom were you selling it?

A. Tennessee Products.

Q. All right. Now, you show here, coal loaded 318,28
tons. How did you arrive at that figure?

A. We weighed my cars at different times; even the
union has had them weighed, and they average 1600
pounds. ...

Q. Then, is that an actual figure there?

A. Yes, sir.

Q. Now, in addition to that, you have coal purchased—
197.64 tons. What do you mean when you say—explain
that figure?

A. The second mine was operated on a tonnage basis,
and I paid the fellow $2.00 per ton put in the....

Q. All right, sir. Then the total tonnage produced for

— 26la —

Testimony of Paul Gibbs
those two mines for that week was what? The total
ton.
493 =A. 515.92.

Q. And you multiplied that times the 4.05 that you
sold it for for the gross figure of $2089.48, is that correct?

A. Yes, sir.

Q. Now let’s take your expenses, that is, what it cost
you to produce that coal, item by item, as we go along.
First you have loading labor, and you have the name
James Ruben Short, $87.15. What was that?

A. That was for loading coal in a month.

424 Q. All right. The total that you paid out to this
group amounted to what?
A. This group of coal loaders was $509.25.
Q. All right. Then you have other labor. Now what
do you mean there when you say there other labor?
A. Two of the other fellows was running the motor,
pulling the coal, and keeping the tracks next to the... .

425 Q. Now you have further costs down here—work-

man’s compensation insurance—515.92 tons times
27 cents a ton. By what reason is it that you use a ton-
nage figure rather than a state approved rate per $100.00
a payroll?

A. Well, on that tonnage basis, that was worked out to
cover the truck drivers as well as the men who worked
underground.

Q. And was computed on a tonnage basis?

A. Yes, sir.

Q. All right. Now, the 27 cents per ton meant that
that week you paid how much for workman’s compensation
insurance ?

— 262a —
Testimony of Paul Gibbs

A. $139.30.

Q. Now your payroll taxes amount to what and was
computed on what basis?

A. That was computed on a 3% Social Security and
involved on-a-Unemployment.

Q. So that the total there was 64% of your total pay- —
roll?

A. Yes, sir.

Q. Which amounted to how much?

A. $46.23.

Q. Now, thereafter, Mr. Gibbs, you have certain items
listed. Let’s go through each of them, and I’ll ask you
for an explanation of them in their entirety. Gasoline,
25% of $1120.00 amounting to what?

A. $280.00.
Q. And your oil and grease, 25% of $48.00 amounting
to?
426 A. $12.00.

Q. Tires and tubes, 25% of $153.84 amounting to!
$38.46.
And truck repair, 25% of $222.87?
$55.71.
And truck insurance, 25% of $37.65?
$9.41.
And your truck tags, 25% of $41.04?
. $10.26.
. And depreciation, 25% of $422.08.
A. $105.20.
Q. Now how did you compute this, and what do you
mean by the 25% of those figures?
A. That’s a 25% of 8 trucks.
Q. And on this you——-
A. I used 2.
Q. All right, sir. And you have heretofore testified in

>

OPOoPoPer

— 263a —
Testimony of Paul Gibbs

this case the same figures on the 8, is that correct? All
right, then, your total expense there, other than your
labor, amounted to what?

A. $1451.32.

Q. So for those 2 mines, what you made, or would have
had left, in fact had left, amounted to what for that one
week?

A. $638.16.

Q. $600—I’ll pass this and let the jury see this,
497 please. Now, Mr. Gibbs, we picked out or you

picked out in a one week—that is, the week ending
August 12, 1960. Is what you made here, this particular
week, in these two mines, an average of what you made
each week in those mines?

A. Yes, sir. It is.

Q. Now how long, and in advantage to the defendant
and so the jury will understand it, wasn’t it some period
of time after that that one of these mines, what do you
call it, worked out?

A. Yes, sir.

Q. Do you recall when that was?

A. To the best of my knowledge, it was either in Octo-
ber of November of ’61.

Q. Of ’61?

A. Yes, sir.

Q. Now that was the mine that was worked out?

A. Yes, sir.

Q. Which then left you with the one remaining mine?
Is that correct?

A. No, I had 2 over at Whitwell, the 74 and the 75 mine.

Q. And then those are the leases that were cancelled
off?

A. That’s right. That’s correct.

Q. Now on that phase, we have nothing further on that

— 264a —
Testimony of Paul Gibbs

particular point, if it please the Court. We do on the
other after lunch. —
The Court: All right.

* * * * *- * *
428 PAUL G

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386411_0244%3A1. Public record. Not legal advice.
