Appendix — United States v. Greater Buffalo Press, Inc.

Supreme Court brief1971

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Gn the Supreme Court of the uited Stutes

Ocrosper Term, 1970

No. 821

Unitep States oF AMERICA, APPELLANT

Vv.

GREATER BuFFaLo Press, INC., ET.AL.

20N APPEAL FROM THE UNITED STATES DISTRICT COURT FOR

THE WESTERN DISTRICT OF NEW YORK

INDEX

Page

I, PORG SRDS oo onc n eee ndn en necteessenbepeo hese dace 1

Complaint by the United States filed January 6, 1961.........-.... 4

Answer of Greater Buffalo Press, Inc., et al. filed March 1, 1961__._.- 14

Deposition testimony of Joseph J. Gorman taken April 18, 1961..__.- 21

‘Deposition testimony of William Hammond taken April 18, 1961... 85

‘Transcript of proceedings held before the Hon. John O. Henderson,

US. District Judge, Western District of New York, on October 25,

i ete tone ho ee re cae kc eRe aoe k aches penkebeanek 140

OREN Soc cccadannebobsarkconccensacconecuenecuuauss 141

Testimony of Joseph J. Gorman:

Goo naccas ne cekankcakenbenabsbabenasaneebarnne 142

ESE a Reinga eatin fs oe a eater Ac se ee gee oa ac ape eee SE ers 167

Ne RE se RR Ea Ie RPS PAPE ee aie ee ad Py 186

PRIN cGSuccds pean ncuceenackkahiecbnansueeseocnebnes 189

Testimony of Joseph Clinton:

PRC At tncinnt ccee nee de haa kekenhkweeeahekn can kkeh 190

DCA Disc ena mks kaeh heim nine aaa bine women 204

“Transcript of proceedings held before the Hon. John O. Henderson,

USS. District Judge, Western District of New York, on October 26,

| Eats ee sete daaierd inde ote ak ee RE Se at Aenea aa apa a aa ny 214

DR on nsh enn ena shtnanctechanennn cn eneponbaninne’ 215

Testimony of Joseph Clinton:

SUELO A CUR CEGE DER ROR RLEEeeknaeekenchuncseebashoaban 215

let tieniatenisiety eststasenstsnastuanttaie nities ini hate needa 227

WFOSS . oc ow ence ccc ww ccc ccc www c coc ees coos ccoseseseorrs

Findings of Fact and Conclusions of Law of the District Court dated

June 22, \962_....-------------------------------- 22022000

Order for te11porary injunction dated June 22, 1962---------------

Transcript of proceedings held before the Hon John O Henderson,

U.S. District Judge, Western District of New York, on December 18,

1962. ......\\-------------- 2-2-2 nnn nnn nn nnn nn nnn nnn rere

Appearance’. .....----------------------------------------

Deposition o* Jack R. Hornady---..-------------------------

Testimony of Paul Lynde:

2 enn ee ny or eer ne a

Transcript of proceeings held before the Hon. John O. Henderson,

US. District Judge, Western District of New York, on December 19,

Appearances... .--------------------------------- 02-0007"

Testimony of Paul Lynde:

Testimony of Robert B. Smith—direct--.--.-.----------------

Findings of Fact, Conclusions of Law and Order of District Court

dated February 19, 1963.......-------------------------------

Notice of plaintiff to amend complaint dated November 17, 1964-_---

Stipulation between the United States and the Hearst Corporation

filed on June 16, 1965.....----.------------------------------

Stipulation between the United States and the Hearst Corporation

filed on July 21, 1965....-------------------------------------

Final Judgment of the Court, with consent of the United States and

Hearst Corporation, entered on August 31, 1965...-------------

Transcript of trial held before the Honorable John O. Henderson Page

commencing on October 12, 1965

Prosecution exhibits—Continued

Prosecution exhibits—Continued Page

| i ATE Gece DOA OEE SO 1529, 1845-1847

Pen nee ee cedcar se ckbe keke nas ebuascaaebereceeen 1530

PORES och besakenyeneasebarkensskwennaueae 1532, 1848-1849

nk fe EE aS EEO aS rl ee i eee REBT AMRILAE DF i eh 1850

RE eG le rae eee ak anne han eceeee 1537

Pine wckuawasde ba backeed anne raedeneveuseubbdnnuneeee 1540

EID t cutbatebabenerebnaeoekabs leap ese siaeasebaeee 1542

NN eas aa seL exer nancseebrecneeeenbreaaeacie sees 1544

POG G cavvachdeecene caverns dvksnesbesoneceentboh 1559, 1851-1853

hs tk ka ated oa ea ea ine ee 1561

Ne ee eee ene te alee 1562

PR bnk one tekielnhe cob aedeweutbbn eke uasiascbaaaee 1563

PRs. kane hosen ova does cn acewebebedebasenas beeuen 1564

| SERRE pee IRE IVES Sa Ato er net Mas anf MEP OY ctiatere mc 1567

ee ee ee ene mee 1568

de ee mene eee ee eee emne 1570

DE ne ead bb tiboa Reba eheroee 1571

oe ERNE ON FF ee ee MI ae HERR ie Ue 1573

| Ea OES eae eee lt See RED Merten 5 Ha 1854

A REE RS ae aire perenee ec eenipany Sa ee ce ree eo eeen My ae eee Ee 1855

nit). gabe biew ei ania wn Ockn een wee 1574

PRUE lc Wckeceusehacbee babe usbbsbebabesebenaaeeeeane 1859

«eR AOR Napeespepeats o s RPA a FE ec be ioe eee tnd eect eke ne eRe SE: 1578

a eee al yc ot ar oom eat re NESS 1580

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ORM c. bb bawedoeke aac esabvesdensaworsebetereanasance 1583

es ON ee Bi es Saeed aebensenceeee 1585

a ne ee ale anise ee 1586

I als 0 Ne ee ee ee oe ee 1587

Io ee Ee SE ee eee ine pee anne 1589

nS i ae eo ea aeekebunensemee 1860

ES Ae eee Le NER NL MR, CRP eee He 1865

ea Re ee NN eri ee ieaas ot Rp APES Tne ee ene SAE NE AE eS 1873

a Ne, ie ee ele new emae 1590

Defense exhibits

a 1591

a Se a ane ean eee 1591

a a aa 1592

eat a al I EP RA des ee ERO TE RCRD) eA GA NRRCE INR 1593

Complaint by the United States as amended October 14, 1965_---- 1597

Plaintiff’s proposed findings of fact and conclusions of law_--_----- 1608

Excerpts from transcript of proceedings held before the Hon. John O.

Henderson, U.S. District Judge, Western District of New York, on

NN TE, Biedctes cctincdaeennbestnatedtmeeteiasene 1632

Findings of Fact and Conclusions of Law made by the district court

Be Se iiscstdhiantbndshrenitinbncninntinaiawnnnen 1691

Judgment entered by the district court on May 26, 1970........-.--- 1706

Notice of appeal filed by the United States on July 24, 1970...----- 1706

Supreme Court’s Order of January 11, 1971 noting probable juris-

SO iccncrtratentbahuenehovekubed ave ve Oe kdsieoeadcun bes 1707

United States District Court, Western District of

New York

Civil Action No. 9004

UnIrTep STaTEs OF AMERICA, PLAINTIFF

Vv.

GREATER BuFFALO Press, INCORPORATED, ET AL., DEFENDANTS

RELEVANT DOCKET ENTRIES

Date

1961

ye, Seeerneee Filed complaint.

Feb. 28....... Filed answer of Hearst Corp.

| Filed answer of Greater Buffalo Press et al.

ee ccuinitiaiions Filed answer of Newspaper Enterprise Association.

} gee Filed stipulation and order continuing preliminary injunc-

tion, entered order—Henderson, J (notice to Mr. Moore).

F-3

Oct. 25-26.... Hearing on motion for temporary, injunction—Decision re-

served.

1962

PD Ticnnns Filed findings of fact and conclusions of law.

, Filed and entered order for temporary injunction—Hender-

son, J. F-10 (notice te Mr. Curtin, Mr. Miller, Mr. Moore,

Mr. Hitchcock).

1963

Se Filed findings of fact and conclusions of law and order

modifying order of June 22/62, entered order—Henderson,

J. ¥F-2 (notice to Mr. Miller, Mr. Moore, Mr. Hitchcock).

F-17

Bs Viiwtihimiinn Filed motion of plaintiff to stay order of Feb. 19/63—ret.

Mar. 11—Denied.

BP. Dicccion Field stipulation and order amending order of Feb. 10/63—

Henderson, J. (notice and copy to Mr. Moore). F-19

1964

i Sees Filed Order that the defendant, Greater Buffalo Press

Incorp., be permitted to transfer to its Dunkirk Plant the

newspaper runs presently printed by defendant, Dixie

Color Printing Corp., ete——Henderson, J. (notice and

copy to Mr. Curtin). F-39

(1)

1965

June 14 Pretrial conference before Judge Henderson.

Filed stipulation re Judgment.

July 21....... Filed stipulation re Judgment entered into on July 16, 1965. .

28....... Pretrial conference (JOH).

Aug. Submission of amended order.

Filed stipulation re Final judgment.

Filed final judgment restraining Hearst—Henderson, J. (no-

tice to Messrs. Curtin and Miller). F-47

Trial continued, decision reserved.

Hearing re receipt of certain documents into evidence.

» Ben ncnnce Filed order that the color comic supplement for The Inde-

pendent may hereafter be printed at the Lufkin, Texas

plant, operated by Southwest Color Printing Corp., etc.—

Henderson, J. (notice and copy to Messrs. Curtin and

Moore). F-63

June 27....... Trial continued from 1/19/66.

Trial continued.

Trial continued, Mr. Moore renews motions made at end of

Government’s case—decision reserved.

served. Mr. Moore moves to vacate injunction—injunc-

tion—decision reserved. Mr. Stephens moves to dismiss—

decision reserved.

1967

July 28........ Filed order on consent permitting the removal of the print-

ing of color comic suppléments for the Farmington, New

Mexico Times from the Wilkes Barre plant to the Lufkin,

Texas plant—Henderson, J. (notice to Mr. Curtin and Mr.

Moore). F-70

Final Arguments—dec. res.

1970

-May 26_.-.... Filed findings of fact and conclusions of law that the defts,

Greater Buffalo Press, Inc., Internationa] Color Printing

Southwest Color Printing Corp., Dixie Color Printing

Corp., and Newspaper Enterprise Association, Inc. are en-

titled to judgment dismissing the complaint—Henderson,

J. (notice to Messrs. Schroeder, Moore and Stevens).

F-104

BP Beenedcaun Filed Judgment on Decision by the Court-Clerk (notice

and copy to Messrs, Schroeder; Raichle, Banning, etc.

and Baker, Hostetler, etc.). F-104

2 Filed plaintiff's notice of appeal to the Supreme Court with

certificate of service on Mr. Raichle and Messrs. Stevens

and Karch of Baker, Hostetler, and Patterson.

1971

Filed certified copy of order of U.S. Supreme Court noting

probable jurisdiction.

[Caption Omitted in Printing]

COMPLAINT

The United States of America, plaintiff, by its attorneys, act-

ing under the direction of the Attorney General of the United

States, brings this action against the defendants named herein,

and complains and alleges as follows:

JURISDICTION AND VENUE

1. This coniplaint is filed and this action is instituted against

the defendants named herein under Section 4 of the Act of

Congress of July 2, 1890, c. 647, 26 Stat. 209, as amended (15

US.C. 4), entitled “An Act to protect trade and commerce

against unlawful restraints and monopolies”, commonly known

as the Sherman Act, and under Section 15 of the Act of Congress

of October 15, 1914, c. 323, 38 Stat. 736, as amended, entitled

“An Act to supplement existing laws against unlawful restraints

and monopolies, and for other purposes”, commonly known as

the Clayton Act, in order to prevent and restrain violations by

the defendants, as hereinafter alleged, of Sections 1 and 2 of

the Sherman Act and Sections 3 and 7 of the Clayton Act.

2. The defendants transact business within the Western Dis-

trict of New York and are found therein.

5 II

THE DEFENDANTS

3. Greater Buffalo Press, Incorporated (hereinafter referred

to as Greater Buffalo), a corporation organized and existing

under the laws of the State of New York, with its principal

place of business in Buffalo, New York, is hereby made a de-

fendant herein. Greater Buffalo engages in the printing of color

comic supplements; it is the largest printer of color comic sup-

plements in the United States. It maintains a printing plant

at Buffalo, New York and maintains, through its subsidiaries,

(4)

The International Color Printing Company, Southwest Color

Printing Corporation and Dixie Color Printing Corporation,

plants at Wilkes-Barre, Pennsylvania, Lufkin, Texas and Syla-

cauga, Alabama, respectively. It also utilizes the printing facili-

ties of the Great Lakes Color Printing Corporation of Dunkirk,

New York. Greater Buffalo’s business includes the sale of its

color comic supplement printing services to newspapers and

to comic feature syndicates. Greater Buffalo is charged with

the violations, hereinafter alleged, of Sections 1 and 2 of the

Sherman Act and Section 7 of the Clayton Act.

4. The Hearst Corporation (hereinafter referred to as

Hearst), a corporation organized and existing under the laws

of the State of Delaware, with its principal place of business in

New York, New York, is made a defendant herein. Hearst,

through its unincorporated division, King Features Syndicate

(hereinafter referred to as King), is engaged in the business of

licensing copyrighted newspaper features, including color comic

features, to newspapers. King maintains a sales force, members

of which regularly visit the offices of newspapers throughout

the United States. King also engages in the business of

6 selling color comic supplement printing services, not only

for the printing of its own copyrighted features, but for

the features of competing comic feature syndicates as well. King

contracts to provide color comic supplement printing services

with or without the copyrighted features which it licenses. It

does not engage in any printing but contracts with a printer to

fulfill its commitments for color comic supplement printing.

Hearst is charged with the violations, hereinafter alleged, of

Sections 1 and 2 of the Sherman Act and Section 3 of the

Clayton Act.

5. Newspaper Enterprise Association, Inc. (hereinafter re-

ferred to as NEA), a corporation organized and existing under

the laws of the State of Delaware, with its principal place of

business in Cleveland, Ohio, is hereby made a defendant herein.

NEA, the voting stock of which is owned by E. W. Scripps

Company, Inc., Cincinnati, Ohio, is engaged in the business of

licensing copyrighted newspaper features including color comic

features, to newspapers. NEA is one of the largest such syndi-

cates in the United States and maintains a sales force, members

of which regularly visit the officers of newspapers throughout

the United States. NEA also engages in the business of selling

color comic supplement printing services, not only for the

printing of its own copyrighted features, but for the features of

competing comic feature syndicates as well. NEA also contracts

to provide color comic supplement printing services with or

without the copyrighted features which it licenses. It does not

engage in any printing but contracts with a printer to fulfill its

commitments for color comie supplement printing. NEA is

charged with the violations, hereinafter alleged, of Sections 1

and 2 of the Sherman Act and Section 3 of the Clayton Act.

6. The International Color Printing Company, also known

as International Color Printing Co. Ine. (hereinafter re-

7 ferred to as International), a corporation organized and

existing under the laws of the State of Pennsylvania, with

its principal place of business at Wilkes-Barre, Pennsylvania,

is hereby made a defendant herein. International engages in the

printing of color comic supplements and operates two color

printing plants in Wilkes-Barre, Pennsylvania. Since 1954, or

prior thereto, International, pursuant to written contracts en-

tered into with King, is, and has been, obligated to print color

comic supplements exclusively for King. In or about June 1955,

International’s out-standing stock was purchased by the de-

fendant, Greater Buffalo. International is charged with the

violation, hereinafter alleged, of Section 7 of the Clayton Act.

7. Southwest Color Printing Corporation, a corporation or-

ganized and existing under the laws of the State of Texas, with

its principal place of business in Lufkin, Texas, is hereby made

a defendant herein, for purposes of relief.

8. Dixie Color Printing Corporation, a corporation organized

and existing under the laws of the State of Alabama, with its

principal place of business at Sylacauga, Alabama, is hereby

made a defendant herein, for purposes of relief.

9. Whenever in this complaint reference is made to any act,

deed or transaction on the part of the defendants, such allega-

tion shall be deemed to mean that the officers, directors, agents

or employees of said defendant authorized, ordered or did such

act, deed or transaction for, or on behalf of, such defendant

while actively engaged in the management, direction and con-

trol of its affairs. Whenever reference is made to any act, deed

or transaction on the part of King, such allegation shall be

deemed to mean that the officers, directors, agents or employees

of the defendant Hearst authorized, ordered or did such

8 act, deed or transaction while actively engaged in the

management, direction and control of Hearst’s affairs.

III

THE CO-CONSPIRATOR

10. Eastern Color Printing Company (hereinafter called

Eastern), Waterbury, Connecticut, is hereby named as co-

conspirator. Eastern engages in the business of printing, among

other things, color comic supplements for sale to newspapers.

It maintains its printing facilities in or near, and main offices

at Waterbury, Connecticut.

11. Whenever in this complaint reference is made to any act

on the part of a co-conspirator, such allegation shall be deemed

to mean that the officers, directors, agents or employees of the

named co-conspirator, authorized, ordered or did such act, deed

or transaction for, or on behalf of, such co-conspirator while

actively engaged in the management, direction and control of

its affairs.

DEFINITION

12. The term “color comic supplements”, as used herein,

means supplements to Sunday or Saturday newspapers, printed

in color, and containing, among other things, copyrighted comic

features.

TRADE AND COMMERCE INVOLVED

13. Virtually every newspaper in the United States which

publishes a Sunday edition distributes a color comic supple-

Color comic supplements

defendant NEA, as well as other

tion of comic features to newspapers, usually by written con-

tract. Along with such rights the syndicates furnish the

“matrices”, or moulded designs, of such comic features. The

syndicates ship the matrices, for printing, to defendants

Greater Buffalo or International, to co-conspirator Eastern, to

other color comic supplement printers, or direct to newspapers

which are equipped to print their own color comic supplements.

15. Approximately eighty-six percent (86%) of the total

number of newspapers in the United States which distribute

color comic supplements with their Sunday or Saturday editions

do not print such supplements themselves. The color comic

supplements distributed by such newspapers are printed by the

defendants, Greater Buffalo and International, the co-conspira-

tor Eastern, or by other printers of color comic supplements.

Such printers generally provide the newsprint for the color

comic supplements which they print, using for such printing

color plates cast from the matrices received from King and NEA

or from other comic feature syndicates. Some newspapers, prin-

cipally large newspapers in major markets, and some newspaper

chains, maintain facilities for printing color comic supplements

and print their own color comic supplements.

16. The aforementioned color comic supplement printing

service, including the casting of color plates from matrices, the

furnishing of newsprint and the printing of the supplements,

is obtained by newspapers through direct contract or arrange-

ment with the defendant Greater Buffalo, the co-conspirator

Eastern, one of the other color comic supplement printers, or

by contract or arrangement with the comic features

10 syndicates, King and NEA. King and NEA, in turn, ful-

full their contracts for printing through arrangements

with defendant Greater Buffalo or one of its printing subsid-

iaries. The latter furnish the newsprint and print the color comic

supplements that King and NEA supply to their newspaper

customers.

17. During the period from 1954 to the present date, pur-

chases of color comic supplement printing services from syndi-

cates and from color comic supplement printing companies were

approximately $28,000,000 per year. Of such annual purchases

approximately $9,000,000 were made from Greater Buffalo,

$10,000,000 from King and $1,500,000 from NEA. Thus, during

the aforementioned period, Greater Buffalo, King and NEA

accounted for approximately seventy-three percent (73% ) of

such purchases, or on the basis of color comic supplement units

sold, approximately eighty percent (80% ).

18, From 1954, or prior thereto, to the present date, King has

maintained contracts with International, which operates two

color printing plants in Wilkes-Barre, Pennsylvania. By the

terms of such contracts and subject to certain conditions, Inter-

national is, and has been, obligated to print color comic supple-

ments exclusively for King. In addition, during the aforemen-

tioned period King has entered into arrangements ov contracts

with Greater Buffalo whereby Greater Buffalo has furnished

newsprint and printed color comie supplements for supplement

printing service customers of King.

19. Defendant NEA contracts with newspapers to furnish

them with color comic supplement printing services. NEA ar-

ranges or contracts with Greater Buffalo and other printing

companies, which actually furnish the newsprint and the color

printing for NISA’s newspaper customers.

20. Defendants Greater Buffalo, Hearst, NEA and Inter-

national, and the co-conspirator Eastern, fulfill their

11 contracts for color comic supplement printing through

printing performed in plants in Buffalo, New York.

Wilkes-Barre, Pennsylvania, Lufkin, Texas and Waterbury,

Connecticut. The color comie supplements printed at these

plants are shipped in interstate commerce to hewspapers

throughout the United States.

OFFENSES CHARGED

Violations of Section 1 of the Sherman Act

21. The defendants Greater Buffalo, Hearst and NEA, the

co-conspirator Eastern, and others to the plaintiff unknown,

have been engaged in an unlawful combination and conspiracy

which began in or about January 1954, or prior thereto, and has

continued up to and including the date of this complaint, in

restraint of the above-described interstate trade and com-

merce, in violation of Section 1 of the Sherman Act.

22. The aforesaid combination and conspiracy has consisted

of a continuing agreement, understanding and concert of action

between the defendants Greater Buffalo and Hearst. others

to the plaintiff unknown, and, since in or about November

1955, or prior thereto, the defendant NEA and the co-conspira-

tor Eastern, the substantial terms of which have been and are:

(a) To refrain from soliciting color comic supplement print-

ing business from each other’scustomers; and ~

(b) To maintain and stabilize the price of color comic supple-

ment printing in the United States.

23. During tfe period of time covered by this complaint,

the defendantaand the co-conspirator, and others to the plain-

tiff unknown, for the purpose of effectuating the aforesaid

combination and conspiracy, have done, among other things,

the following:

12 (a) In or about January or February 1954, representa-

tives of the defendants Greater Buffalo and King held

meetings in New York City, New York, at which, among other

things, they agreed that:

(1) Greater Buffalo and King would divide between them-

selves the business of supplying color comic supplement print-

ing services to the Gannett newspapers published in Utica

and Binghamton, New York; and

(2) Greater Buffalo would pay King fifty dollars ($50) per

week to refrain from offering to the Waterloo Courier, Waterloo,

Iowa, prices below those of Greater Buffalo for color comic

supplement printing, as long as Greater Buffalo would service

this account.

(b) Greatef Buffalo and King did those things they agreed

to do, pursuant to the agreements described in subparagraph

(a);

and the co-conspirator Eastern held a meeting in New York

City, New York, at which they agreed, among other things,

_ that King and Eastern would refrain from soliciting each other’s

established newspaper accounts in the sale of color comic sup-

plement printing services. King and Eastern have continued

this arrangement to the date of this complaint; and

(d) In or about November 1955, representatives of the de-

fendants King, NEA and Greater Buffalo held a meeting at

the Hotel Beverly in New York City, New York, at which they

agreed, among other things, that King and NEA would refrain

from soliciting each other’s established newspaper accounts

in the sale of color comic supplement services and keep knowl-

edge of such agreement confined to their respective sales

13 _— organizations. Pursuant to this arrangement, NEA did

the following, among other things, when requested to

submit bids to newspapers or their representatives:

(1) In or about March 1957, NEA submitted a bid to the

Jackson, Mississippi, State Times at an artificially high and

non-competitive price;

(2) In or about January 1956, NEA refused to submit a

price quotation to an agent for the General Newspaper group

in Atlanta, Georgia; and

(3) In or about January 1956, NEA refused to submit a

price quotation to the publisher of the Tupelo, Mississippi,

Journal.

Violations of Section 2 of the Sherman Act

24. The defendants Greater Buffalo, Hearst and NEA, the

co-conspirator Eastern, and others to the plaintiff unknown,

have been engaged in an unlawful combination and conspiracy

which began in or about January 1954, or prior thereto, and

has continued up to and including the date of the filing of this

complaint, to monopolize, and the defendant Greater Buffalo,

since about June 1955, has monopolized, the above-described

trade and commerce in color comic supplements, in violation

of Section 2 of the Sherman Act.

25. The aforesaid combination and conspiracy has consisted

of a continuing agreement, understanding and concert of action

among the defendants Greater Buffalo and Hearst, others to the

plaintiff unknown, and since in or about November 1955, or

prior thereto, the defendant NEA and the co-conspirator

Eastern, to monopolize, for Greater Buffalo, the printing of

color comic supplements and the sale of said printing services

through the sales organizations of the defendants Greater

Buffalo, Hearst and NEA, the substantial terms of which

14 have been and are that they agreed to the terms set forth

in subparagraphs (a) and (b) of paragraph 22 of this

complaint, which subparagraphs are here realleged with the

same force and effect as though said subparagraphs were here

set forth in full.

26. In effectuation of the offenses alleged in paragraph 24

of this complaint, the defendants Greater Buffalo, Hearst and

NEA, among other things, did the following:

(a) Those things which as hereinbefore alleged in paragraph

25, they combined and conspired to do;

(b) Defendant Greater Buffalo increased its share of the

market for printing of color comic supplements from approxi-

mately forty-two per cent (42%) to approximately eighty per

416-872—-71—____2

cent (80%) by the purchase, in or about June 1955, of all the

outstanding stock of International ;

defendant Greater Buffalo in the aforesaid purchase of

International;

(d) Defendant Greater Buffalo, in or about 1956, itself or

through its subsidiary, Southwest Color Printing Corporation,

commenced the erection of a plant at Lufkin, Texas, for the

printing of color comic supplements; and

(e) Defendant Greater Buffalo, in or about 1957, itself or

through its subsidiary, Dixie Color Printing Corporation, com-

menced the erection of a plant at Sylacauga, Alabama, for the

printing of color comic supplements.

Violation of Section 7 of the Clayton Act

27. The effect of the aforesaid acquisition by the defendant

Greater Buffalo of the defendant International, as set forth in

subparagraph (b) of paragraph 26 hereof, which subparagraph

is here realleged with the same force and effect‘as though said

subparagraph were here set forth in full, has been, and

15 will continue to be a substantial lessening of competition

or tendency to create a monopoly with respect to the

aforesaid trade and commerce in the United States, in violation

of Section 7 of the Clayton Act, in that competition between

the defendants Greater Buffalo and International has been and

will continue to be eliminated.

Violations of Section 3 of the Clayton Act

28. Beginning in or about 1954, or prior thereto, and con-

tinuing to the date of the filing of this complaint, defendants

Hearst and NEA severally have sold, and presently sell, comic

features to newspapers at discounts, rebates or reduced prices

on the condition, agreement or understanding that such news-

paper purchasers shall not deal in the color comic printing

services offered or sold by any competitor or competitors. The

effect of said transactions and of such condition, agreement or

understanding has been, and may continue to be, a substantial

lessening of competition or tendency to create a monopoly in

the sale of color comic supplement printing services in inter-

state commerce, in violation of Section 3 of the Clayton Act.

29. The violations alleged in paragraphs 21, 24, 27 and 28

of this complaint are continuing and will continue unless the

relief hereinafter prayed for is granted.

VII

EFFECTS

30. The aforesaid offenses charged in paragraphs 21, 24, 27

and 28 of this complaint have had, among other things, the

following effects:

(a) Newspapers in many parts of the United States have

been denied the advantages of competitive bidding for the

printing of their color comic newspaper supplements;

16 (b) Newspapers not desiring the color comic supple-

ment printing services offered by the defendants have

been compelled to pay arbitrary prices for comic features;

(ec) Price competition among defendants and the coconspir-

ator Eastern for the sale of color comic supplement printing

has been eliminated;

(d) The defendant Greater Buffalo has obtained a monopoly

of the printing of color comic supplements in the United States;

(e) Competition in the printing and sale of color comic

supplements has been suppressed and interstate trade and com-

merce in color comic supplements has been unreasonably

restrained; and

(f) Printers offering color comic supplement printing serv-

ices to newspapers have been restrained by the acts of these

defendants from selling such services to newspaper customers.

PRAYER

WHEREFORE, PLAINTIFF PRAYS:

1, That the Court adjudge and decree that the defendants

and the co-conspirator have combined and conspired to restrain

and to monopolize, and that the defendant Greater Buffalo has

monopolized, the interstate trade and commerce in the printing

of color comic supplements and sale of color comic supplement

printing services, in violation of Sections 1 and 2 of the Sher-

man Act.

2. That the acquisition by the defendant Greater Buffalo of

the defendant International be adjudged a violation of Section

7 of the Clayton Act.

17 3. That the aforesaid sales and contracts for sale by

the defendants Hearst and NEA of comic features on the

condition, agreement or understanding that the newspaper pur-

chasers shall not deal in color comic supplement services being

offered or sold by any competitor of the defendants be adjudged

and decreed to be ‘‘nlawful and in violation of Section 3 of the

Clayton Act.

4, That the defendants, their officers, agents, directors and

employees, and all persons acting or claiming to act on their

behalf, be perpetually enjoined and restrained from continuing,

reviving, or renewing, directly or indirectly, the aforesaid com-

bination and conspiracy and the aforesaid contracts, agree-

ments, or understandings, and from practices having the

purpose or effect of continuing, reviving or renewing any of the

aforesaid offenses or any offense similar thereto.

5. That the Court adjudge and decree that the defendant

Greater Buffalo has caused the erection of plants at Lufkin,

Texas, and Sylacauga, Alabama, and used the same in effectu-

ating and maintaining the combination and conspiracy to

restrain and to monopolize, and the monopolization of the afore-

said interstate trade; and that the Court enter such orders, as it

may deem appropriate and necessary, directing the defendant

Greater Buffalo, and its officers, agents, directors and employees,

and all persons acting or claiming to act on their behalf, to

divest the ownership, control and participation in operating

such plants in order to dissipate the effects of the violations

herein alleged, and to establish free and unfettered competition

in the trade and commerce herein involved.

6. That the defendant Greater Buffalo be required to divest

itself of ownership of defendant International and that the

defendant International be barred from selling any of its stock

or assets to the other defendants or the co-conspirator

18 named herein or to any of their officers, agents, directors

or employees, or to any persons acting or claiming to

act on their behalf.

7. That the defendants be required to take such other action

as the Court may deem necessary and appropriate to dissipate

the effects of their unlawful activities as hereinbefore alleged,

and to permit and restore competition in interstate trade and

commerce in the printing and sale of color comic supplements. —

8. That the Court schedule a separate hearing on questions

of relief and consider at such hearing specific plans to be pro-

posed by plaintiff, whereunder defendants Greater Buffalo,

King and NEA will be required to take such steps as are neces-

sary to sever their relationships with one another, with defen-

dant International, and with defendants Southwest Color

Printing Corporation and Dixie Color Printing Corporation.

9. That the plaintiff have such other, further and different

rélief as the nature of the case may require and the Court may

deem just and proper in the premises.

10. That the plaintiff recover the costs of this suit. Dated:

Buffalo, New York, , 1961.

William P. Rogers Raymond M. Carlson

Wi.u1aM P, Rocers Raymonp M. Cartson

Attorney General.

Robrt A. Bicks Elliott H. Feldman

Rosert A. Bicks Exuiorr H. FetpMan

Assistant Attorney General.

Lewis Bernstein John W. Poole, Jr.

Lewis BERNSTEIN Joun W. Poote, Jr.

Attorney, Department of Justice.

Attorneys, Department of Justice.

New R. FarMe.o

United States Attorney.

[Caption Omitted in Printing]

ANSWER

The defendants, Greater Buffalo Press, Incorporated

(hereinafter called Greater Buffalo), The International Color

Printing Company (hereinafter called International), South-

west Color Printing Corporation (hereinafter called South-

west) and Dixie Color Printing Corporation (hereinafter

called Dixie), for their answer to the complaint herein:

1. Admit the allegations of paragraph designated “1” of the

complaint which allege that this action is instituted under the

Acts of Congress set forth therein and deny any knowledge or

information sufficient to form a belief as to the other allega-

tions contained in said paragraph.

2. Greater Buffalo admits the allegations of paragraph desig-

nated “2” of the complaint, and the other defendants deny

such allegations.

3. Deny the allegations of paragraph designated “3” of the

complaint, except that they admit that Greater Buffalo is a New

York corporation with its principal place of business and a

printing plant in Buffalo, New York and that its business in-

cludes the printing and sale of color comic supplements, and

except that they deny knowledge or information suffi-

20 - cient to form a belief as to whether Greater Buffalo is

the largest printer of color comic supplements in the

United States and admit that Greater Buffalo utilizes the print-

ing facilities of its subsidiaries at Wilkes-Barre, Pennsylvania

and Lufkin, Texas, and of Great Lakes Color Printing Corpora-

tion at Dunkirk, New York.

4. Deny knowledge or information sufficient to form a belief

as to the allegations of paragraphs designated “4”, “5”, 13”

and “28” of the complaint.

5. Greater Buffalo and International admit the allegations

of paragraph designated “6” of the complaint except that they

deny that since 1954 or prior thereto, International, pursuant

to written contracts entered into with King, is, and has been

obligated to print color comic supplements exclusively for King,

and refer to such contracts for the terms and conditions thereof.

(16)

6. Greater Buffalo and Southwest admit the allegations of

paragraph designated “7” of the complaint, except that they

deny knowledge or information sufficient to form a belief as to

the purposes for which Southwest was made a defendant herein.

7. Greater Buffalo and Dixie admit the allegations of para-

graph designated “8” of the complaint, except that they deny

knowledge or information sufficient to form a belief as to the

purposes for which Dixie was made a defendant herein.

8. Deny the allegations of paragraphs designated “9” and

“11” of the complaint, except that they admit the allegations

of said paragraphs which purport to define the meaning of the

words and terms set forth in the complaint.

21 9. Admit the allegations of paragraph designated “10”

of the complaint to the extent that they allege that

Eastern Color Printing Company is named as a co-conspirator

therein but deny the existence of any such conspiracy and deny

knowledge or information sufficient to form a belief as to the

remaining allegations of said paragraph.

10. Admit the allegations of paragraph designated “12” of

the complaint but deny that the definition set forth therein is

the one commonly accepted in the trade or is all inclusive.

11. Deny knowledge or information sufficient to form a belief

as to the allegations of paragraph designated “14” of the com-

plaint, except that Greater Buffalo and International admit

that some syndicates ship some matrices to them.

12. Deny knowledge or information sufficient to form a belief

as to the allegations contained in paragraph designated “15”

of the complaint, except that Greater Buffalo and International

admit that they print color comic supplements distributed by

some newspapers, that they generally provide newsprint there-

for, and that they use printing color plates cast from matrices

received from syndicates and newspapers, and except that they

deny that the newspapers which maintain facilities for printing

and/or print their own color comic supplements are confined to

large newspapers in major markets or newspaper chains, and

state that almost all newspapers maintain facilities capable of

printing color comic supplements.

13. Deny knowledge or information sufficient to form a belief

as to the allegations of paragraph “16” of the complaint, except

that they admit that they print some color comic supplements

for certain newspapers and for King and N.E.A.; and that they

supply the newsprint therefor.

22 14. Deny knowledge or information sufficient to form

a belief as to the allegations of paragraph designated

“17” of the complaint, except that Greater Buffalo admits that

from 1954 to the date of filing the complaint, annual purchases

of color comic supplement printing in excess of $9,000,000 were

made from it.

15. Greater Buffalo and International deny the allegations

of paragraph designated “18” of the complaint, except that

they admit that from 1954 to the date of filing the complaint,

King has had contracts with International, and refer to such

contracts for the terms and conditions thereof, and Greater

Buffalo admits that during the aforementioned period, it has

printed some color comic supplements and has furnished news-

print for certain customers of King on the basis of individual

orders therefor.

16. Deny knowledge or information sufficient to form a belief

as to the allegations of paragraph designated “19” of the com-

plaint, except that Greater Buffalo admits that it prints some

color comic supplements for certain customers of N.E.A. and

furnishes the newsprint therefor.

17. Admit the allegations of paragraph designated “20” of

the complaint insofar as they respectively pertain to them, and

deny knowledge or information sufficient to form a belief as to

such allegations insofar as they pertain to Hearst, N.E.A. and

Eastern.

18. Deny the allegations of paragraphs designated “21”,

7". .~ 2 “24”, = « “a. “99” and “30” of the

complaint.

23 19. Each answering defendant denies each and every

allegation of the complaint not hereinbefore specifically

admitted or denied by it, except that Dixie denies knowledge or

information sufficient to form a belief as to the allegaitons of

paragraphs designated “6”, “7” and “18” of the complaint;

Southwest denies knowledge or information sufficient to form

a belief as to the allegations of paragraphs designated “6”, “8”,

and “18” of the complaint; and International denies knowl-

edge or information sufficient to form a belief as to the allega-

tions of paragraphs designated “7” and “8” of the complaint.

WHEREFORE, Defendants demand judgment dismissing

the complaint upon the merits and awarding to the defendants

the costs and disbursements of the action.

RaicHip, Moorn, BANNING AND Weiss,

A Member of the Firm

Attorneys for Defendants, Greater Buffalo Press, Incor-

porated, The Internaitonal Color Printing Company,

Southwest Color Printing Corporation, and Dixie Color

Printing Corporation, 10 Lafayette Square, Buffalo 3,

New York.

25 DEPOSITION OF JOSEPH J. GORMAN, TAKEN ON APRIL 18,

1°61

JosxPH J. GorMAN, having been first duly sworn, was

examined and testified as fullows:

EXAMINATION

By Mr. FetpMAN:

Q. What is your name, please?

A. Joseph J. Gorman.

Q. Where do you reside?

A. 581 Meadowland Avenue, Kingston, Pennsylvania.

Q. What company are you affiliated with?

A. International Color Printing Company. |

Q. What is the title of the position you hold with the a |

national Color Printing Company? |

A. President and General Manager. |

Q. How long have you held those two positions? |

A. Approximately 35 or 36 years.

Q. Have you held those two positions continuously?

A. Yes, sir

Q. Are you familiar as president and as manager with the |

business operations of the International Color Printing

Company?

A. Yes, sir.

Q. Are you as president familiar with the documents

26 ~—sand records presently kept by the International Color

Printing Company?

A. As closely as I can keep myself in touch with them. Con-

sidering the wide variety of operations and so forth, I have a

pretty fair knowledge of the entire operation.

Q. As president do you have knowledge as to the business

assets and properties at the present time of the International

Color Printing Company?

A. Yes, sir.

Q. As President do you have knowledge as to the machin-

ery and equipment presently in the possession of the Interna-

tional Color Printing Company?

A. Yes, sir.

Q. In regard to such machinery and equipment presently in

the possession of the International, was it the policy of Inter-

national in the past for you as president to participate in the

purchase of any or some of that equipment?

A. Yes. sir.

Q. Do you as president have knowledge as to the newspaper

accounts or runs presently being printed or serviced by Inter-

national?

27 A. General knowledge. We have so many papers and

they vary from week to week or month to month that I

couldn’t possible keep in my mind the names of all of the

newspapers.

Q. Is there any particular department in International which

does have such knowledge?

A. The Schedule Department.

Q. Who has that department?

A. My sister, Bessie Gorman.

Q. How many employees does she have under her direction?

A. About five, five or six.

Q. To your knowledge does International employ personnel

who maintain and service machinery and equipment?

A. Yes, sir.

Q. To your knowledge does International employee person-

nel who recondition or repair such machinery or equipment?

The Witness: Will you repeat that please?

Mr. FetpMan: Will you repeat that?

(Whereupon the question was read by the reporter.)

28 A. Yes, sir.

Q. How many people does International presently

~ have in its employ who maintain, service, recondition or repair

such machinery and equipment?

A. Approximately eighteen, seventeen or eighteen.

Q. At the present time does International have printing

presses in its possession or control?

A. Yes. sir.

Q. How many such presses does International have?

A. We have three single width presses in Peoria, Illinois. We

have five single width presses in Wilkes-Barre, Pennsylvania at

268 George Avenue.

Q. Does that 268 George Avenue have any particular names

such as a Parsons or Sheldon Plant?

A. Parsons Plant?

Q. Itis called the Parsons Plant?

A. Parsons Plant.

Q. Therefore, the five single width presses that you just

referred would be at the Parsons Plant, is that correct?

A. That’s right, yes. Now, we have in addition to that at

the Sheldon Plant—I prefer to number them. Then it

will be easier for me to count them. Then you can count them

up later,—press 2055, press 2042 and 2042-a which might be

considered as one machine.

Q. When you say “one machine” you mean 2042?

A. And 2042-a.

Q. Might be considered as one machine?

A. One machine. Press 2531, press 2091 and press 2392 and §

2392-a, the “a” being an annex to 2392, and 2392 can be oper- @

ated as a press without 2392-a. But we generally consider it |

as one press. ;

Q. Would that be the same in regard to the numbers 2042-a?

A. Yes, sir.

Q. That also can be operated as a single press. Are there any

others that you can think of?

A. That is all?

Q. Would I be correct then in stating that you have six to

ten presses?

Mr. Moore: Subject to correction.

30 Mr. Fetpman: Yes.

A. I have listed them as best I can recall them now, yes.

Q. We are talking now about the Sheldon?

A. That is the Sheldon plant that I just gave you the name.

They are double width presses. I don’t know whether I told you

that or not. They are double width presses at Sheldon.

Q. Going back to the Parsons Plant, those are all single

presses, is that correct?

A. Single presses.

Q. Going back now to June 1, 1955 do you know how many

printed presses International then had in its possession alto-

gether?

A. The same number that we have today.

Q. The number you listed a little while back, namely, the

presses at the Parsons and Sheldon plants, have they been ac-

quired by International since June 1, 1955?

A. No, sir.

Q. Have any of the presses International presently has at

the Parsons or Sheldon Plant been acquired since June 1,

31 1955 from the Peoria Plant of International?

A. No, sir.

Q. In regard to the printing presses which were at the Peoria

Plant of International on June I, 1955, where are those presses

presently located?

A. They are still in Peoria in the same position they were in

1955.

Q. Have any of those presses ever been disposed of?

A. No, sir.

Q. Are those presses presently in use at Peoria?

A. No, sir.

Q. In regard to the presses which you just listed as being

at either Peoria or Wilkes-Barre did you yourself participate in

the negotiations whereby International acquired those presses?

A. I either participated directly myself over a period of

thirty-seven years or else I directed the negotiations or ap-

proved of them. They were handled by others.

Q. Going back now to the three single width presses, which

I believe you stated are at Peoria, based upon your experience

can you estimate the value, the present value of such

32 _—s presses?

A. It would impossible for me to estimate the value

of any press that we have today for the reason that that type

press is not being built. You couldn’t replace it, and we never

kept a ledger account of the value of each single width press.

Each press in Peoria is now twenty years old or over and has

been fully depreciated.

Q. To your knowledge are there any records presently avail-

able at International which indicates the price paid at any time

by International for the three single width presses presently

at Peoria?

A. I would say that there are no records showing the value

of each press for the reason that with one exception they were

used presses. We got equipment from Cutler-Hammer. We got

equipment from Hess and Barker. We got equipment from

the Goss Company in Chicago and we combined all of these

together in order to produce a complete press. But at no time

did we keep a record of what any single individual press cost.

Now, the only press we have today which was not put together

in parts or by components from various companies was

33 one press in Peoria which we purchased directly from the

Goss Company, which according to my memory cost ap-

proximately $50,000 when we purchased it. That is the only new

press we have or ever have had.

Q. When you state that International paid $50,000 for that

particular single width press, do you know when that press

was purchased, the year?

A: Somewhere between ’37,’38 or ’40. I can’t tell you exactly,

somewhere about twenty years ago.

Q. Now, at sometime prior to or even after 1955 in regard to

the single presses now at Peoria, to your knowledge was any

value placed upon such presses for insurance purposes?

A. Yes, sir.

Q. Were they?

A. Replacement value by an insurance appraiser.

Q. Did this insurance appraiser, before placing a value upon

such presses consult with you or anyone else at International?

A. He consulted with me, but I believe his appraisal was

based on what I told him so much as what he was able to de-

termine by his own efforts outside. Now, did he place

34 avalueon the three single width presses?

A. He put a replacement value on each press.

Q. Do you know what the replacement value is?

A. No, sir.

Q. Are there any records?

A. We have his appraisal.

Q. Where would those records be, sir?

A. The appraisal is in Wilkes-Barre?

Q. Are they readily available to you?

A. Yes, sir.

Q. Going now to the single width presses which are located

at the Parsons Plant, do you know how much International

paid for any one of those presses?

A. No, I do not know for the same reason that I didn’t know

the value of the presses in Peoria because they were bought

from—sections were bought from various people. Tensions, for

instance, would have been from the Hoe Company, motor

equipment from Cutler-Hammer, something else from others,

and then when combined they all added to our machinery

35 account, but did not give us an individual value on

each press.

Q. Is there any press presently now at the Parsons Plant

which was purchased new much like the press you spoke about

a little while back at Peoria which cost $50,000?

A. No, sir.

Q. In regard now to the presses at the Parsons Plant, was an

insurance appraisal ever placed upon such presses?

A. Yes, sir.

Q. Do you know the appraised value put by the insurance

company upon such presses?

A. No, sir.

Q. Do you have such records available?

A. Yes, sir.

Q. And are they also easily accessible to you, sir?

A. Yes, sir.

Q. Now, in regard to the insurance appraisal, does the insur-

ance appraisal break down each press or is it a lump sum?

A. It breaks down each press.

Q. Does it go further than that and break down the parts

which are used incidentally to the press?

36 A. No. He takes the press and figures the replace-

ment value as a whole.

Q. In regard to supplemental parts such as folders, would

they be included in the valuation of the press?

A. When he figures the appraisal, he figured what it would

cost to reproduce the whole press including folders. Now, if

I might explain further how difficult it is to keep a value on

this, it might make it clearer in your own mind. We have one

press, Number 1999 which is thirty-seven years old. We bought

the lower two decks of that from a small newspaper in Pittston,

Pittston Press. We bought the two top decks from Allentown,

Pennsylvania. We patched the two together and we picked

up the motor from somewhere else. That was thirty-seven years

ago and that press is still in operation so that, frankly, I think

I can make clear how it is impossible for us to figure what it

really cost us to put it there. But, the appraiser did figure what

he thought it could be replaced for.

Q. In regard now to the value, is it your testimony

37 _— that most of the presses, or in fact all of the presses out-

side the one you just mentioned in the possession of

International were purchased in the 1920's?

The Witness: Will you repeat that please?

Mr. FetpMan: Will you repeat the question?

(Whereupon the question was read by the reporter.)

A. No, sir.

Q. When were they purchased, sir?

A. Over the years from 1924 until, I think the last one was

possibly eight or nine years ago. I can’t say just when we put

each press up, but it was spread over the years. As we grew

416-872—71—vol. 1——-3

and needed presses, we installed them but I have no date as

to when each one was installed.

Q. Is it your. further testimony that no appraisal can be

put upon the presses because they represent to a large extent

the ingenuity and resourcefulness of people at International

of making the press meet specific requirements?

38 A. I don’t know how the appraiser works. I don’t know

just how he went about getting the figure, but it seems

to me in view of what you just said it would be extremely

difficult.

Q. I am talking about in the point of view of your appraisal?

A. Yes, I would say it is very difficult to put a value on it.

Q. Would that stem because of the uniqueness of the ma-

chinery as far as International is concerned?

A. Each press was rebuilt to suit our particular convenience

and for us to be able to try to do the work more rapidly. The

manufacturers really never built this type of press particularly

for color printing. The adjustments and the changes had to be

made by the color printers.

Q. Now, what you just stated in regard to the Parsons Plant,

would that also be applicable to the Sheldon Plant in regard to

the value of the presses there?

A. That is right.

Q. And in that case also was an insurance appraisal placed

upon each individual press there?

39 A. With the possible exception of one, 2392 and 2392-

a. We might have installed since the appraisal was made.

I am not certain.

Q. Do you recall when that press was purchased by Inter- |

national? |

A. I am hazy about it. Eight or ten years ago. I am not sure.

Q. Is it presently functioning at International’s plant?

A. Yes, sir.

Q. Since June 1, 1955 has International ever acquired any

additional printing press other than the ones you just men-

tioned?

A. Several.

Q. Can you enumerate those please?

A. One press which we purchased out of Baltimore from the

Baltimore Post was purchased at the instigation of the Greater

Buffalo Press for their use in Sylacauga. That number was

press 2022. Now, there were several other presses purchased

from the Journal American in New York, some complete—

that is, some without folders, some without motors, one more

or less as junk, and I have’ never had knowledge of the

40 numbers of those presses. That is, the serial number.

Offhand, I can’t tell you exactly what we paid or what

they cost us.

Q. You say how many were purchased from the Journal

American?

A. I think two. I am not sure. I think two. I didn’t handle—

Q. Negotiations?

A. Negotiations.

Q. Where are those presses that were purchased?

A. They are in a warehouse, in one of our warehouses, dis-

mantled.

Q. Do you recall how much International paid for those two

presses?

A. I am sorry. If I attempted to do that, I wouldn’t be able

to give you an accurate answer. We paid junk price for one. We

might have paid $32,000 for another and it cost us something

like $70,000 or $80,000 to get them out of New York and take

them to Wilkes-Barre.

Q. Thereafter were they worked upon?

A. They have never worked. They are stil] lying, wait-

41 —_ ing some day to be used or to be used for parts.

Q. Was it the intention of International when pur-

chasing those presses to use them or to merely use them to sup-

plement parts of other machines?

A. Partly for parts, but partly to use them because some day

we must move out of the Parsons Plant because of settling

conditions underneath and we will have to have additional

equipment running at the Sheldon Plant before we can move

out of the Parsons Plant.

Q. In regard to press 2022 do you recall how much was paid

for that press?

A. I think the purchase price was about $32,000 or $33,000.

Mr. Moore: Pardon me. I am not sure if 2022 has been iden-

tified yet.

Mr. Fetpman: Yes. This is off the record.

(Discussion off the record.)

42 Q. This press 2022, where was that press purchased

from?

A. Baltimore Post.

Q. For the purpose of refreshing your memory, Mr. Gorman,

I show you plaintiff’s Exhibit 15, which is annexed to the affi-

davit of Raymond M. Carlson, in the moving papers herein of

the Order to show cause and ask you whether this refreshes

your memory as to the exact amount paid by International

for press 2022?

A. $32,500.00.

Q. Well, is your memory refreshed now?

A. That is right.

Q. Now, based upon your present memory, how much did

International pay for press 2022?

A. $32,500.00.

Q. And did that price include the transportation cost from

Baltimore to Wilkes-Barre?

A. No, sir.

Q. Do you know how much that transportation cost was?

A. No, I do not.

Q. Have you any idea, even approximately, what it was?

A. No, sir.

43 Q. At the present time, does International have in its

possession or control, press 2022, which it purchased at

Baltimore?

A. No, sir.

Q. Where is that press at the present time?

_A. In Sylacauga, Alabama.

Q. Was that press shipped from Wilkes-Barre to Sylacauga?

A. Yes, sir.

Q. You know the date when that press was shipped from

Wilkes-Barre to Sylacauga?

A. No, sir.

Q. Was it in the last two years?

A. Within the last two years.

Q. Now, at the time press 2022 left International Plant at

Wilkes-Barre, do you know what the value was of that press?

A. No, I couldn’t say that.

Q. Do you know whether the value was less or more than the

value or the purchase price originally paid by International?

A. I would say it was more. |

Q. What, if anything, happened in the interval of

44 __ time when International acquired press 2022 and shipped

it out to Sylacauga to enhance the value?

A. This would be a bit of a long answer, but I must do it in

order to make it clear.

Q. That is all right, go right head.

A. Press 2022 was purchased, it was what was known as a 6-

deck high press, consisting of 6 decks high and 12 printing

couples. It was not equipped for printing five plates wide. It

was equipped for four plates wide only. As a 6-deck press, the

Baltimore Post ran that at a speed of approximately 20,000 per

hour, 4-page sections on each side. The reason for what we

might call a low speed, was because it was so high and so awk-

ward and it was so difficult to handle. After we purchased that

price at the instigation of Greater Buffalo, we were told by

Greater Buffalo that that was a mistake to set up a 6-deck

press, that the same cylinders and printing couples should be

used, but they should be 4 decks high, and three tiers and three

stacks of legs, rather than high, because that would make it less

unwieldy and more easy to operate and to get speed out of.

Also, at the instigation of Greater Buffalo Press, the

45 cylinders were changed so that instead of 4-plate wide,

it was a 5-plate wide machine on 8 of the printing cou-

ples and 4-plates wide on 4 of the printing couples, thus add-

ing greatly to the flexibility of the press, it becoming possible

when we are using a 5-plate wide press, to do approximately

the same kind of work that you would have to use 16 cylinders

for otherwise. Then there was a clip arrangement installed

which held the plates on the press better and this new clip ar-

rangement was prepared, was sent to us, the clips and ring and

so forth were sent to us by Buerk Machinery Company of

Buffalo, the purpose of that being to be able to use third plates

or one-sixth plates, rather than just half pages, or rather than

three-third pages together, as a whole. In other words, the press

was vastly improved from a flexibility standpoint against what

it was when it was operated in Baltimore.

Q. Going now back to the time when International Press ac-

quired or purchased that press, at that. time, was that consid-

ered a so-called double width press?

46 A. That is a double width press.

Q. How many cylinders did press 2022 have at that

time?

A. Twelve printing couples. That means twelve cylinders,

number twelve impression cylinders.

Q. Were there any other presses in the possession or control

of International at that time, which had twelve cylinders?

A. I told you before about the combination press, press 2042

and 2042-a when operated together, had twelve cylinders, but

it was not set up as one press really; it was set up as two

presses, one in front of the other. Press 2392 and 2392-a also

had twelve cylinders, but four of the cylinders were set apart

from the eight cylinders and we do not now consider that that

was as good an arrangement as was later put into effect when

2022 was erected.

Q. At any rate then, when International acquired press 2022,

it was the only single press in the plant at International, which

had twelve cylinders aside from the combined presses you just

spoke about, is that correct?

A. That is correct.

Q. Based upon your experience, is there greater fa-

47 __ cility in getting out production when you have more

cylinders?

A. The more cylinders you have, the more pages you can

print on the one press. Now, if we want to print a 14-page

section, we have got to use 2 eight-cylinder presses with the

same number of men on each press, but when you have a 5-

plate wide, 12-cylinder double width press by itself you print

fourteen pages or sixteen pages without increasing the crew by

only one or two men.

Q. At the time International acquired press 2022, were there

any presses at International’s plant which contained cylinders

capable of holding more than four plates?

A. No, sir. As a matter of fact, I never saw in my thirty-five

years, any other press with the exception of one that was used

at Greater Buffalo that is capable of printing more than four

plates across.

Q. And that would still be applicable at the present time

as far as International is concerned?

A. As far as I know there are no other presses in the country

that are built to carry five plates wide across.

48 Q. Is it your testimony then that International after

acquiring press 2022, enlarged the cylinders so that five

plates were able to be inserted on the cylinder instead of the

normal four plates, is that correct?

A. We did not enlarge the cylinders. The cylinders remain

the same size, but the clips and rings were so arranged so that

the same plates could go on the same arrangement, but it was

impossible to enlarge the cylinders. That can’t be done.

Q. As far as the frame, the frame remained the same?

A. That is right. In other words, within the same frame

you could have cylinders that would carry one more plate on

each cylinder.

Q. This operation of making it possible for the cylinder to

hold an additional plate, how long an operation would that

take as far as manpower at International?

A. I have no specific time for each operation that was done.

The job of erecting that press and lining it up and so forth,

was done over a period of three years when the maintenance

crew had nothing else to do, they would work on that and it

took us three years to complete the job as far as we

49 went.

Q. Prior to press 2022 coming to Wilkes-Barre, was

the space where the press was placed, occupied by another

machine?

A. No, sir.

Q. What equipment, if any, was in the location which the

press thereafter occupied?

A. As I recall, it was junk pretty much. It was a separate

building. It was not in the same building.

Q. What building-was the press worked on?

A. In our adjoining building to the main plant.

Q. That would be what, the Sheldon Plant?

A. Yes.

Q. Was there a pit made or any great innovation made in

the plant in order to facilitate working on press 2022?

A. In Wilkes-Barre?

Q. Yes.

A. There was no pit made.

Q. Mr. Gorman, I believe I asked you a little while back

if you know the value of press 2022 when it left International’s

plant at Wilkes-Barre, and I believe you testified that you

don’t recall?

50 A. I wouldn’t attempt to pick that figure out of the

air.

Q. For the purpose of refreshing your memory, I show you

a balance sheet of International Color Printing Company, dated

December, 1959, and direct your attention to the balance sheet

contained therein as of January 2nd, 1960, and refer down to

the page, to “Other Assets,” and the sub-heading “Press 2022,”

and ask you to look at that page?

A. Yes, sir.

Q. Does that refresh your memory as to the value placed

upon Press 2022 when it left International’s plant?

A. At that time, the press did not leave Wilkes-Barre at

that time. The press did not leave until, I think, approxi-

mately a year later than that. The total value of the press as

of a certain date, is contained in the reports which you asked

me for, but I can’t remember exactly what it was; somewhere

in the neighborhood of $110,000.00, $120,000.00, $130,000.00.

I can’t remember exactly.

Q. Approximately what was the value placed when it left

there, about the time it left International?

A. Let’s say $125,000.00, $130,000.00.

51 Q. During the time that the press was at Interna-

tional’s plant at Wilkes-Barre, namely, press 2022, was

any insurance appraisal made of that press, to your knowledge?

A. No, sir. We have not had an insurance appraisal in ten

years.

Q. Was that press insured at all while it waz being worked?

A. I believe the Accounting Department insured the press

for whatever amount they happened to have as of a certain

date, and changed that from time to time over every quarter

or every three or four months.

Q. Is it your testimony then now, Mr. Gorman, that the

value of the press more than doubled because of the work put

on it to make it such a unique type of press so far as printing

of color comics is concerned?

A. Well, parts and so on, that went on there, yes, sir.

Q. Now, during the time that press 2022 was worked upon

by personnel of International, did International purchase the

extra parts or required parts?

A. We purchased parts for which we were later reimbursed

by Greater Buffalo.

52 Q. And was International reimbursed for the purchase

price of press 2022?

A. Yes, sir.

Q. When were they so reimbursed, do you reeall, sir?

A. About four months ago, three or four months ago.

Q. At any time prior to three or four months ago, was Inter-

national ever reimbursed for either purchase price or the labor

or parts put into the machine?

A. I don’t recall that, no.

Q. Outside of press 2022, were there any other presses

shipped out of International to Sylacauga or any other sub-

sidiary of Greater Buffalo?

A. No, sir.

Q. Were any presses since June 1, 1955, shipped out of

Wilkes-Barre to Greater Buffalo’s plant at Buffalo or Dunkirk,

to your knowledge?

A. No, sir.

Q. Do you have available with you, any breakdown or gen-

eral description as to the stereo-type machinery now in the

possession of International?

A. Yes, sir.

Q. Can you give us such a breakdown?

A. This information was obtained by making a phys-

53 ical inventory of the equipment since this order was re-

ceived. You want me to read them off?

Q. Yes.

A. 16 tank plate nickeling system with rectified filter, et

cetera.

Q. Do you recall when International purchased that equip-

ment?

A. About six years ago.

Q. Do you know how much was paid for that equipment?

A. No, I don’t, because that, as in the case of the other things,

is a combination of what was purchased from various sources

and we have never kept an individual account on each machine.

Q. Before going down this whole list, I will ask you this gen-

eral question: Has an insurance appraisal been made upon this

equipment you are reading off now?

A. Some of this equipment was moved from our Parsons

Plant to the Sheldon Plant and was included in the appraisal

which was made ten years ago.

Q. And is that the present appraisal that you are operating

under for insurance purposes?

A. Yes. We have had no appraisal since ten years.

54 Q. What has happened in regard to equipment which

came or was purchased by International since ten years

ago?

A. Well, in case anything should happen, we would have

to go back over our books and try to see what we have added

to our machinery total. We haven’t had an appraisal made

since.

Q. Now, do you have with you the appraisal figures in regard

to the equipment that you are now reading off?

A. No, sir. It is a very, very large book and I wasn’t asked to

take it, so I didn’t take it with me.

Q. I am not interested in why or anything like that. Would

that be available to you whenever you wanted it?

A. Yes.

Q. Is it easily accessible?

A. Yes.

Q. Will you go down and indicate the equipment?

A. One Della metal saw; one standard conveyor system to

move plates; one plate milling machine; one El rod machine-

old; in other words, it is hardly used; one plate shaver;

55 — one 1500 amp spare rectified; one 10,000 pound capacity

Goss electric metal plug; two electric mat ovens; two

hoe casting boxes; two hoe tail cutters and shavers: two hoe

precision plate shavers; one plate splitter; one double ring

cutter; one single ring cutter; two sta-hi mat formers; eight

hoe single plate rodders; assorted plate cans, plate racks and

shelving; six mat ovens; two Niagara Power shears; one 4-

way mat cutter; two floor fans; one high frequency mat drier;

marking tables. That is what we have in the stereo-type equip-

ment as a result of physical inventory made last weck.

Q. Going back and just reviewing that list briefly, what has

been done—withdraw that—. Going back and looking over

that list, what purchases in regard to stereo-type equipment

have been made since June Ist, 1955?

A. This is not going to be accurate——

Q. No, just based upon your present knowledge.

A. Two marking tables, one high frequency mat drier, one

four-mat cutter, two Niagara Power shears, six mat ovens,

nickeling system, conveyer system, two electric mat

56 ovens, one plate splitter, one double ring cutter and

one single ring cutter.

Q. Do you know the purchase price of any of that equipment

at all?

A. No, I don’t.

Q. Can you place any value upon that equipment?

A. I am sorry, I couldn’t. For the past five years I had very

little to do with the actual purchase of machinery and I don’t

know exactly what it cost.

Q. Now, are there records available which show what the pur-

chase price was for that equipment?

A. On that particular list of machinery, I think so.

Q. And who would have such records?

A. Our Accounting Department.

Q. And is that readily accessible to you?

A. Yes, it is.

Q. Since June Ist, 1955, has International ever shipped out of

its plant, any stereo-type equipment?

A. I don’t recall.

Q. Has it ever shipped any such equipment to Greater Buf-

falo at Buffalo or at Dunkirk?

A. Out of the Peoria Plant.

Q. You did?

57 A. Yes.

Q. And what equipment was shipped from Peoria?

A. One combination joiner and plate saw with saddle; one

Goss saw and trimmer, with edge trimmer; one easting box,

complete with vacuum pump; one spare sout for casting box;

one sta-hi mat former; one hoe precision shaver with spare

motor; one hoe tail cutter and trimmer; one two-wheel grind-

er; two plate rodders; one box miscellaneous cutters and

knives; one 50 horsepower spare motor; one rectifier; one mo-

tor generator; one metal cabinet; three electric panel boards

for stereo; one electric drill; five large fans; eleven vent fans;

six CO2 tanks; three medium OCO2 tanks; six small hand ex-

tinguishers ; three hose reels. That is all.

Q. At the time or interval of time——

A. I beg your pardon, one Royal typewriter.

Q. When was this equipment shipped, do you recall the year?

A. About 1958 or 1959.

Q. Was any stereo equipment shipped at or about that time

from Peoria to Wilkes-Barre?

A. Not that I recall, no, sir.

58 Q. Is there presently any stereo-typed equipment at

Peoria at all?

A. I don’t believe so.

Q. Is it your——

A. There might possibly—wait just a minute—there might

possibly be a very old nickel tank there.

Q. Is it your testimony then that the bulk of the stereo-type

equipment at Peoria was shipped to Greater Buffalo?

A. Yes, sir.

Q. At any time has International shipped any stereo-type

equipment to Dixie Color Printing Company Corporation at

Sylacauga?

A. We sent a double ring cutter in January of this year. I

don’t have any recollection of anything else.

Q. Do you recall any plate cutting saw being sent to Syla-

cauga?

A. I don’t know that that is stereo-type equipment.

Q. Oh, I see. But was such a plate cutting saw sent?

A. The description I have here is metal saw. I don’t know

what it was, whether it was for cutting plates or what. It was

a metal saw.

59 Q. Outside of these shipments that you spoke about,

the one to Sylacauga and the others to Greater Buffalo,

were there any other type of stereo-typed equipment shipped

out of any of the plants of International from June Ist, 1955?

A. Not that I can recall.

Q. I believe, Mr. Gorman, you have described printing press

equipment and stereo-typed equipment. What other classifi-

cations are there of equipment in the possession or control of

International?

A. Well, there are lift trucks for handling the shipping and

handling pallets and skids and then there are pallets and skids,

probably air-compressors and odd items like that, and the main

bulk of our machinery, of our equipment, is a press room and

stereo-type equipment.

Q. Now, the other types of equipment other than what you

have just mentioned, do you have any idea what their present

value is?

A. No, sir.

Q. For insurance purposes, has any value ever been placed

upon such equipment?

A. The only thing they do is keep a record of what

60 goes into the machinery account and increase the insur-

ance from time to time.

Q. So the value of such equipment would be reflected in the

insurance appraisal?

A. Well, it is minor, this equipment is minor. The pallets and

skids, for instance, might last only three months and they have

got to be replaced and so forth. They are made out of wood, and

the lift trucks are now probably depreciated because I don’t

think we have any under seven or eight years old.

Q. At any rate, for insurance purposes, there would be a value

placed upon all equipment you spoke about, and then there

would be a general lump sum value placed on other equipment?

A. They make a lump sum addition from time to time to the

insurance value.

Q. Then would the value placed upon all your equipment and

press at your Wilkes-Barre plants be reflected in your insurance

policies or schedules attached thereto?

Mr. Moors: I am going to object to the form of the question

on the grounds that it calls for a conclusion. I will

61 let the witness answer it, but as anybody knows,

replacement values and market values are two different

things.

Mr. FetpMan: Let the witness answer the question.

The Witness: May I have the question again, please?

(Last question read.)

The Witness: The replacement value is identified in the

insurance policies, is considerably higher than the book value

of the machinery on the books.

By Mr. Fetpman: p

Q. At any rate, some value has been placed by one insurance

company or more insurance companies upon such equipment,

whether true or inaccurate, as to the actual value?

A. Yes, sir, as to the replacement value, as to the insurance

value, yes, sir.

Q. That is right. In other words, some insurance value has

been placed?

A. Yes.

Q. And that would apply generally to all the equip-

62 ment you spoke about, some may be specified and

i — would be lumped together, is that correct?

. Yes.

Q. And is that insurance value as to all of the equipment,

is that easily accessible and available to you, sir?

A. Yes, sir.

Q. Now, as to machine shop equipment, has any such equip-

ment been shipped to Sylacauga?

A. Yes, sir.

Q. And will you enumerate, please, such equipment that

was sent?

A. Two medium size lathes, with approximately nine foot

beds; one small lathe with three and a half foot bed; one

milling machine; two drill prevses; one pipe threading ma-

chine; one emery wheel or bench grinder; one tool grinder.

' Q. Any other equipment, sir?

A. Not that I can recall or have any record of.

Q. Was International reimbursed by Dixie Color Printing

Corporation or by Greater Buffalo for such equipment you

have just mentioned?

A. No, sir, because we expect to get that equipment

63 back or be reimbursed for it. We haven’t decided on what

it might be worth, but we expect to get it back.

Q. In regard to reels which may be used on press 2022, to

your knowledge, did International send any reels to Sylacauga?

A. Yes, sir.

Q. How many reels were sent?

A. Two, I believe.

Q. In regard to folders, were any folders sent to Sylacauga?

A. As part of the press.

Q. How many were sent, sir?

A. Two.

Q. Were they folders worked upon at International's plant in

Wilkes-Barre prior to being sent down?

A. Yes.

Q. And is the same thing applicable to the automatic reels

you just spoke about?

A. Yes, sir.

Q. To your knowledge was any insurance value placed upon

the automatic reels or the folders sent?

A. Not as se’

64 Q. In other words, they were considered——_

A.—As part of the press. —

Q. As part of the press?

A. Yes.

Q. Now, in addition to that equipment, were any folders ever

sent to the Greater Buffalo plant here in Buffalo or Dunkirk?

A. I recall one.

Q. And what was that, sir?

A. That was a single width folder, which was sent up to them.

They paid us for it and then they didn’t want it and they sent

it back.

Q. What about automatic reels?

A. There were some sent up there.

Q. How many?

A. I don’t know.

Q. Would four be correct?

A. It might be four. I don’t know.

Q. What about the folders, would that be one or two?

A. The only one I recall is the one.

Q. Is it possible it might be two?

A. It could be two.

Q. In regard to the equipment sent to Greater Buffalo

65 _— plants at either Buffalo or Dunkirk, has International

been reimbursed?

A. Yes, sir.

Q. And when did such reimbursement take place?

A. January of 1961.

Q. Do you recall when in January?

A. Let me say that—let’s put it another way—we were paid

currently by Greater Buffalo for work which was done in con-

nection with the building in Sylacauga through the years 1957,

1958 and 1959, a total amount of about $47,000.00 and then

during the year 1960 we were paid $48,000.00. In 1961 we were

paid $130,000.00. All told, we were paid by Greater Buffalo or

Dixie, but I think almost entirely by Greater Buffalo, approxi-

mately $243,000.00.

Q. Now, when you say $243,000.00, did these payments take

the form of a check or cash being paid to International——

A. Checks.

Q. Or at any time, did it take the form of a set-off as to

money you owed them and then there was a balance?

A. It was a check.

66 Q. These were all checks?

A. These were all checks.

Q. They were all deposited in the account of International,

is that correct?

A. Yes.

Q. Is there presently any money due International for equip-

ment shipped either to Sylacauga or to Greater Buffalo?

A. I would say in the neighborhood of $26,000.00.

Q. Is it your testimony then that International either has re-

ceived payment or will receive payment or in lieu thereof, the

return of any equipment which has been sent to Slyacauga?

A. Yes, sir.

Q. And is that true in relation to equipment sent to Greater

Buffalo at either Buffalo or Dunkirk?

A. Buffalo paid us for anything that we sent up there, with

the exception of:a partial payment on, I think, oh, about $20,-

000.00 on reels which the Accounting Department overlooked

as something they didn’t bill them for, which I presume will be

paid for.

Q. Has International been paid for the stereo-type equipment

which was sent from the Peoria plant to Greater

67 Buffalo?

A. We did not bill them for that because we considered

we had no further use for it. It was depreciated and pretty much

out of date.

Q. Prior to shipping it to Greater Buffalo, was any attempt

made to sell it on the open market?

A. No, sir.

Mr. FetpMan: We will take a recess at this time.

(Short recess taken.)

68 By Mr. FetpMan:

Q. Going now, Mr. Gorman, to another subject, name-

ly newspaper runs or accounts, going back to June 1955, do you

recall or have any records which indicate the runs then being

serviced by the Peoria Plant of International?

A. No, I don’t know exactly what runs were serviced by Pe-

oria at that time. I don’t know—I don’t have that record at

that time.

Q. For the purpose of refreshing your memory I will read

off a list of runs and will you tell me, one, whether you recall

such a run being serviced by the Peoria Plant of International?

A. If I were to do that, Mr. Feldman, I would be guessing

because sometimes we did print runs from out in that area

in Wilkes-Barre because, although the transportation rate was

higher, we saved in plate saving because we had the same plates

on the press. Therefore, I don’t know. I know all the runs we

were printing as of June 1, 1955, but I don’t know which ones

exactly were in Peoria.

Q. Do you recall any runs which were being printed

69 there? Have you got the list there?

A. Yes. I have a list right here. I will be glad to show

you this list. .

Q. I will guess at it. Suppose you tell me the runs you are

sure of.

A. I am guessing. I don’t know whether we had been in

Peoria.

Q. Go through and tell me which ones you presently recall

being printed?

A. Madison, Peoria Journal, Tulsa-Wichita Beacon, Hous-

ton. We printed in both places from time to time, depending

on what kind of a run it was. We sometimes printed it in

Wilkes-Barre, Rockford, Wichita. I am uncertain about San

Angelo or Abilene, Corpus Christi, Tyler. I am uncertain about

Whichita Falls, Springfield Register, Springfield News Sun,

Ohio News Sun—

Q. Excuse me. You are uncertain or they were printed?

A. No, I think they were printed. Anderson, Indiana; Gary,

Indiana; Sioux Falls, South Dakota; Davenport, Iowa; St.

Joseph; Albuquerque; Shreveport. I don’t recall the

70 other three and I am not one hundred percent certain

about the others. I think they were printed in Peoria.

Q. Are there any runs on this piece of paper which you have

before you which you are not certain about being printed out

of Peoria or Wilkes-Barre in June 1955?

Mr. Moore: Pardon me. Would you have that marked?

Mr. Fetpmawn: Yes. I will ask that this piece of paper marked

“Peoria runs” be marked as Plaintiffs Exhibit 1 for identifica-

tion.

Mr. Weiss. Why don’t you take the numbers up from where

you left off?

Mr. Fetpman: No. I won’t accept that. I think it is best that

the deposition speak for itself.

(Whereupon the paper marked “Peoria Runs” was marked

Plaintiff Exhibit 1 for identification.)

71 Mr. Fetpman: For the record let the record indicate

that Plaintiff's Exhibit Number 1 for identification has

& title “Peoria Runs” and lists under it certain newspaper ac-

counts.

Q. Referring now to Plaintiffs Exhibit Number 1 for identi-

fication, are there any runs listed on the page there which to

416-872—71—vol. 1-4

your knowledge were not printed in June 1955 at cither Peoria

or the Wilkes-Barre plant of International?

A. Thave to guess. I don’t know.

Q. You don’t know?

A. No. :

Q. Do you have in your possession any list which indicates

the runs being serviced or printed in whole or in part in

June 1955 by any of the plants of International?

A. Not as of June 1, 1955. I think the way the question

was asked that is the information you asked.

Q. Well, just referring to the specific question, you say

“No” sir, is that right?

72 A. No, sir.

Q. What is the nearest date that you have

such a list?

A. The only date I have, the only information of which I

am not one hundred percent certain is every run that we serv-

iced at some time or other since June 1, 1955.

Q. Do you have such a list in your possession?

A. Yes, sir.

Q. Does your list indicate to you when International ceased

servicing a particular run if International is not printing for

that account now?

A. I have two lists, one list which shows the name of every

run which we serviced at any time since June 1, 1955, and the

other list shows papers which we have printed some time since

June 1, 1959 which are now being printed by other plants.

Q. All right. Going now to the list, can you tell us the runs

which International serviced at any time from June 1, 1955 and

after commencing to service that run ceased printing for the

account?

A. Yes, sir.

73 Q. Now, will you give us such a list?

A. Tallahassee, Florida Capital.

Q. Excuse me. You are presently servicing this?

A. No, this is the list of runs which we have serviced but

are not servicing now. Is that what you want?

Q. That is all right. Who presently is servicing that, do

you know?

A. I don’t know.

Q. Do you recall when International ceased servicing that

account?

A. The last release was June 5, 1955.

Q. Allright, sir. The next one?

A. Lebanon, Pennsylvania Daily News.

Q. When did International cease servicing that account?

A. June 12, 1955.

Q. Do you know who presently services that account?

A. I don’t know, no.

Q. Next one?

A. Norfolk, Virginia, Ledger Dispatch. Do you want me to

go on? Last release ——

Q. Yes.

74 A. July 31, 1955. I think it is now a part of a combina-

tion of newspapers in Virginia known as the Norfolk,

Virginia Pilot and I don’t believe that they have a supplement

as of today.

Q. Now, in regard to the runs you previously testified to, I

believe I asked you whether or not you know who presently

services those runs which International lost or gave up. Now, as

to those runs, can you tell us who immediately commenced

servicing those runs when International ceased printing for that

account?

A. I have no way of knowing, generally speaking, where a

run goes when it leaves us unless I get it by gossip or report on

it from the field. I don’t know.

Q. As to those runs did you receive any information as to

where the run went?

A. No, sir.

Q. You did not. Now, you may continue.

A. And Andalusia, Alabama, Covington Dispatch, Last re-

lease August 14, 1955. I don’t know where it is now being

printed. Is that what you want me to do?

75 Q. I want to know immediately after International

ceased printing the run who commenced if you know?

A. I don’t know.

Q. You do not know.

A. No.

Q. All right, sir.

A. New Orleans, Louisiana Item, last release 9/11/55. The

newspaper to the best of my knowledge is now out of business

_ and went out of business, I think, at that time. Ready?

Q. Yes, go ahead.

A. Mt. Pleasant, Texas, Times, last release November 13,

1955. I don’t know who is printing it and I don’t know who

started to print it after we gave it up. Havana, Cuba Post,

12/25/55. The newspaper is out of business, Corpus Christi,

Texas, Caller, December 25, 1955. I don’t have any record of

who is now doing it. Oh, Marshall, Texas, News Messenger,

December 25, 1955. I gave you Corpus Christi. Paris, Texas

News, December 25, 1955; San Angelo, Texas Standard-———

Q. Excuse me. Do you know who presently prints for

76 Paris?

A. No.

Q. Do you know who commenced printing when you gave

it up?

A. I should know that, but I don’t. I can’t recall it.

Q. Go ahead.

A. San Angelo, Texas; Abilene, Texas, Reporter, 12/25/55;

Big Spring, Texas, Herald, 12/25/55. If I know who did it, I

will——

Q. All right, sir.

A. Dennison, Texas, Herald, 12/25/55; Snyder, Texas,

News, 12/25/55; Greenville, Texas, Banner, 12/25/55. Now,

from the fact that we ceased printing all the same date, it ap-

pears that this might have been a group of newspapers, but I

am not certain.

Q. All right, sir.

A. New Kensington, Pennsylvania, Dispatch, January 22,

1956. I do not know who was printing and I never did know.

Artesia, New Mexico, Advocate, 5/27/56 last release. I clo not

know who is now printing. Lakeland, Florida, Ledger, 6/10/56

last released. I believe it is now being printed by South-

77 ern Color Printing Company at Newport News and I

think it went there immegiately after we lost it.

Topelo, Mississippi, Journal, last release July 1, 1956, To the

best of my knowledge it is being printed by Southern Color

Printing Company at Newport News. Wichita Falls, Texas,

Daily, July 1, 1956. I don’t have a record of where it went ot

where it is now. Gulf Port, Mississippi, Gulf Coast News, July

8, 1956. I don’t have a record of where it went or where it is

now.

Lovington, New Mexico, Press, July 15, 1956. I don’t have

a record of where it went or where it is now. Shreveport, Louisi-

ana, Times, 9/2/56 last release. I think it is now being printed

in Lufkin by Southwest.

Q. Southwest!

A. Orangeburg, South Carolina, Times Democrat, last release

9/16/56. 1 believe it is now being printed and has been printed

since that date by Southern Color Printing Company at New-

port News. Statesville, North Carolina News, 10/28/56

78 — last release. I don’t know where it is being printed.

Springfeld, Illinois Citizen Tribune, 12/2/56. I don’t

know where it is being printed. Monroe, Louisiana, News Star

World 12/80/56 I believe it is now being printed in Lufkin,

although I am not absolutely certain. Middletown, New York,

Daily Record, Jenuary 6, 1957. I don’t know where it is being

printed and I don’t know where it went after we lost it.

Pittsburgh, Pennsylvania, Sun Telegraph, March 10, 1957.

We were printitg one small section of the Pittsburgh Comic

supplement and the major portion was being printed on the

Hearst presses ia Chicago. After this section was taken out of

our plant, it wasmoved to the Hearst Presses in Chicago.

Winston Salen, North Carolina, Journal and Sentinel,

March 31, 1957 ast release. To the best of my knowledge it is

now being printed by Southern Color Printing Company at

Newport News.

Portsmouth, Virginia, Times, last release March 17, 1957.

To the best of my knowledge it is ne being printed

79 ~~ by Southern Color Printing Co. at Newport News. Phil-

adelphia, Pennsylvania Mayfair Times, last release

April 21, 1957. ° have no knowledge as to where it is being

printed. Rochester, New York, Citizen, April 21, 1957. I have

no knowledge as 0 where it is being printed.

Raleigh, Norta Carolina, Times, June 16, 1957. It is now

being printed by the Star Color Printing Company at Wil-

mington, Delawire.

Jackson, Missssippi, Clarion Ledger, July 7, 1957. I don't

know where it isbeing printed. Lake Charles, Louisiana, Amer-

ican Press, Augist 11, 1957. I don’t know where it is being

printed.

Decatur, Alabsma, Daily, 9/29/57 last release. I don’t know

where it is being printed. Knoxville, Tennessee Journal, 10/9/57

last release. Mersed with another newspaper in Knoxville and

after that we ceased printing for it and they discontinued their

supplement. Peoria, Illinois, Journal. Now, I think I should

explain that at no time did we have contracts for these news.

papers. These newspapers were contracted for by King

80 Features Syndicate and they passed the work onto us.

When I say that the work was transferred to another

plant, it isn’t that we lost the contract. King Features may have

lost it or they may have transferred the work directly them-

selves or consented to the transfer.

Peoria, Ilinois, Journal, 12/15/57. T think it is now being

printed by Greater Buffalo Press in Buffalo. ;

Tulsa, Oklahoma, World, December 15, 1957, now I believe

being printed at Lufkin.

Fort Wayne, Indiana, News Sentinel, Decemer 15, 1957. §

I believe it is now being printed in Buffalo. Wichita, Kansas.

acon, December 22, 1957. I believe it is now being printed

in Lufkin.

Gary, Indiana, Post Tribune, December 22, 1957, now being

printed in Buffalo. Madison, Wisconsin, State Journal, De- |

cember 22, now being printed in Buffalo. Rockford, Illinois, #

Star, December 22, 1957, now being printed in Buffalo; Spring. @

field, Illinois, State Journal, December 22, 1957, now being

printed in Buffalo; Colorado Springs, Colorado, Free |

81 Press, December 29, 1957, now being printed in Buffalo; |

Cedar Rapids, Iowa, Gazette, December 29, 1957, now |

being printed in Buffalo; Champagne, Illinois, News, Decem-

ber 29, 1957, now printed in Buffalo; Danville, Illinois, Com- |

mercial News, December 29, 1957, now being printed in §

Buffalo; Davenport, Iowa, Democrat, now being printed in

Buffalo, the release date 12/29/57; Lewiston, Idaho, Tribune.

12/29/57, now being printed in Buffalo; St. Joseph News Press,

December 29, 1957, now being printed in Buffalo; Springfield. §

Ohio, News Press, 12/29/57, now being printed in Buffalo.

Topeka, Kansas, Daily Capital, January 5, 1958, now being =

printed in Lufkin; Aberdeen, South Dakota, American, Janu-

ary 5, 1958, now being printed in Buffalo; Casper, Wyoming. &

Tribune, January 5, 1958, now being printed in Buffaio; Grand

Forks, North Dakota, Herald, January 5, 1958, now being

printed in Buffalo; Great Falls, Montana, Tribune, January 5.

1958, now being printed in Buffalo; Hutchinson, Kansas, News

Herald, January 5, 1958, now being printed in Lufkin;

82 Joplin, Missouri, Globe, January 5, 1958, now being

printed in Buffalo.

Orange, Texas, Leader, January 5, 1958. 1 don’t know where

it is being printed. Texas City, Texas Sun, January 5, 1958.

Don’t know whereabouts of present printing. Rapid City, North

Dakota, Journal, January 5, 1958, printed in Buffalo; Salina.

Kansas, Journal, January 5, 1958, now being printed in Lufkin;

Santa Fe, New Mexico, New Mexican, January 5, 1958, Lufkin;

Springfield News Leader, January 5, 1958, Buffalo; Tyler,

Texas, Courier, January 5, 1958, Greater Buffalo—rather

Buffalo. Tyler, Texas, Courier, January 5, 195%, Lufkin; Green-

ville, South Carolina, News Piedmont, January 5, 1968, South-

ern Color Printing Company at Newport News; Detroit,

Michigan Polish Daily, January 5, 1958. I don’t know. Asheville,

North Carolina, Citizen, January 5, 1958, now being printed

by Southern Color Printing Company at Newport News; Ste-

phenville, Newfoundland, Canada, News, January 26—I don’t

know the name of the paper—1958. I don’t know where it is

being printed.

3B Longview, Texas,—I don’t know the name of the

paper—February 2, 1958. I don’t know where it is being

printed. Morehead City, North Carolina—I don’t know the

name of the paper—April 13, 1968. I don’t know where it is

being printed.

Denton, Texas, Record Chronicle, March 23, 1958. I don’t

know where it is being printed. Elizabeth City, North Carolina,

Advance, 5/25/58, now being printed by Southern Color Print-

ing Cormmpany at Newport News.

Santiago, Cuba, Diario Del Cuba—Mr. Castro will have to

give you the answer to that. I don’t know where it is being

printed.

Houston, Texas, Post, December 7, 1958. either in Greater

Buffalo or Lufkin. I think in Lufkin. Morgantown, West Vir-

gnia, Dominion, 12/14/58. I don’t know where it is being

printed. Austin, Texas, Statesman, January 1%, 1959, Lufkin:

Port Arthur, Texas, News, January 18, 1959, Lufkin: Waco.

Texas, Tribune, January 11, 1959, Lufkin; Kilgore. Texas.

News Herald—I don’t know—January 11, 1954; Paseo.

% Washington, Tri City Herald, February 22, 1954. Buf-

falo; El Pais, Havana, Cuba—we never had release clates

on those. They went by numbers— 1028-60; Excelsior. Havana.

Caba, 1368-00; Havana, Cuba, El Mundo, 1493-60: Informa-

ton, Havana, Cuba, 843-60; Diario Del Marine. Havana, Cuba.

1423-60; Rome, Georgia, News Tribune, January 10, 1960. now

being printed by Southern Color Printing Company at New-

port News.

Lynne, Massachusetts, Telegram, January 24, 1960. I don’t

know where it is now being printed. Dayton, Texas, Sun, Feb-

ruary 14, 1960. I don’t know where it is being printed. Wichita,

Kansas, Eagle, 6/5/60 last release, Lufkin; Cuidad Juarez,

Mexico, Correo, 24-60. I don’t know where it is being printed.

Garden City, New York, 6/19/60, Eastern Color Printing

Company, at Waterbury; Rosenburg, Texas, Herald, July 10,

1960. I don’t know where it is being printed. Pasedena, Texas,

Citizen, July 10, 1960. I don’t know where it is being printed.

Pecos, Texas, Daily Enterprise, August 28, 1960. I don’t know

where it is being printed. Raleigh, North Carolina, News

85 and Observer, October 9, 1960, Star Color Printing Com-

pany at Wilmington, Delaware; St. Albans, West Vir-

ginia, Times, October 9, 1960. I don’t know where it is being

printed.

LaNacion Dominican Republic, 13-60. I don’t know where

it is being printed. Austin, Texas—perhaps I might have dupli-

cated. At any rate, it is being printed in Lufkin. Brooklyn, New

York, Eagle, 11/20/60, out of business.

La Eafera, Caracus, Venezuela, 860-60. We don’t know where

it is being printed. Bridgetown Barbados, Advocate, 71-61;

Diario Del Yaqui Cuidad, Obregon, Mexico, 25-61; Mexico

City, Mexico News, March 19, 1962. I don’t know where it is

being printed and I don’t know where those Spanish papers are

being printed. I just referred to. McKeefport, Pennsylvania,

Daily News, April 16, 1961. I don know where it is being

printed.

Q. Mr. Gorman, I believe that you testified that as to certain

runs you do not know what happened to them because the

contract between the newspaper and the King Features

86 was not your particular province, is that correct, sir?

A. That’s right.

Q. In regard to runs which were transferred or left Interna-

tional and commenced being printed at Lufkin, Texas, were

such transfers after discussions, or did they follow discussions

you had with anyone at Greater Buffalo Press?

A. There were two types of runs transferred. First, runs which

we were doing in Peoria. We discussed with Greater Buffalo

and transferred them to Greater Buffalo for the reason that

there would be a greater savings of transportation. Other runs

out of Peoria, we transferred to Wilkes-Barre where the saving

wouldn’t be as great and we continued to print those in Wilkes

Barre; and then in the meantime it helped take up the slack for

the runs which were transferred out of the Peoria Plant to

Buffalo. Buffalo gave us quite a considerabie part of their busi-

ness, so that in effect we have as much from Buffalo as they

have from us.

Now, there are other papers transferred to Lufkin

87 which I did not consult with Buffalo about simply be-

cause the runs were simply cancelled by King Features

for the reason that Buffalo took them from King Features.

Q. Did you ever have any discussions with anyone at King

Features as to the desirability of transferring runs from Wilkes

Barre to Lufkin?

A. From time to time I discussed with Mr. Nicht, sometimes

after the runs were already transferred and sometimes before

they were transferred.

88 Q. Now, the ones that were transferred to Lufkin.

were with your consent and approval? -

A. Yes, sir.

Q. In regard to runs which were printed to Peoria, and then

transferred to Greater Buffalo, did the transfer in any way

involve the desirability to transfer larger runs to Greater

Buffalo?

A. I don’t think it was that so much as the saving of trans-

portation, wherever the greatest saving of transportation,

could be made.

Q. Were runs ever transferred to Greater Buffalo because of

the size of the particular run?

A. No, I think it was almost entirely the transportation

angle. Sometimes size doesn’t make any difference. Sometimes

it is the number of plate changes that are involved. Even

though a run may be small, they may have a lot of plate changes

and we may have the same plates on the press in Wilkes-Barre

for some other run and we would save that make-ready. There-

fore, it would be cheaper to transfer it to Wilkes-Barre and

save manpower. In other words, the saving of manpower

would be greater than the saving of transportation if

88 it was donein Buffalo.

Q. Is the equipment, to your knowledge, of Greater

Buffalo, better able to take care of any larger runs?

Mr. Moore: I am going to object to the form of the question.

By Mr. Fetpman:

Q. A while back you testified as to the type of equipment

present at International and I believe you testified that the

only place that might have a press equal to press numbers 2022

would be a press or similar equipment belonging to Greater

Buffalo, is that-correct, sir?

A. That is correct.

Mr. Moors: I am going to object to the form of that.

Mr. Fetpman: I asked him whether he so testified.

Mr. Moors: I think you are mis-stating his testimony about

“equal to.” He was talking about a similar press. I don’t think

he said anything about equal.

Mr. Feutpman: Repeat the question, please.

90 (Whereupon the last question and answer were read

back by the reporter.)

Mr. Fetpman: Is your objection still noted?

Mr. Moors: Yes. I think the record will show he is not using

the word “equally”. He was using the word, “similar.” We

hadn’t gotten into the question of equating performance of

presses. If we did, I would object.

Mr. Fetpman: Let the word “equal” be deleted and would

the witness please answer with the word “similar,” as part of

the question?

Mr. Moore: To that I have no objection.

The Wrrness: Similar only in the fact that they were both

five-plate wide presses. The Buffalo press could be far superior

in other respects to ball bearings, strength of cylinders, and

speed of the press and better motor or something. So, there-

fore, I wouldn’t they were equal, but they were similar insofar

as the five-plate wide were concerned.

91 ’ By Mr. Feitpman:

Q. In regard to the total four-page units presently

printed by International, has the number of such four-page

units decreased, remained the same, or increased since June 1,

1955?

A. They have decreased.

Q. It has decreased. Do you know how much a decrease that

has been?

A. I would say that in June 1, 1955, we were approximately

twenty-nine or thirty million four-page sections. We are now

running about twenty-seven million four-page sections and the

decrease is partly a result of several things. Largely, I would

say, a result of the difference of the size of the sections which

reduces the numbers of fours which you produce, also the fact

that we lost business to Newport News and to Eastern Color

and to Wilmington and to the Chicago Newspapers. The busi-

ness that Peoria took from us, which Buffalo took from us since

1955, they largely made up by giving us other business to take

its place. So that there are three or four reasons why we

92 are producing less now than we were in 1955.

Q. Are there any runs which International presently

services which are being printed by Greater Buffalo in part, or

a fraction thereof, at various times?

A. I am not sure I understand your question. Are there any

runs which International prints which International at times

calls upon or asks Greater Buffalo to print for them?

A. I don’t recall any.

Q. None that you can recall, sir?

A. No.

Q. Does International do any printing for Greater Buffalo?

A. Yes, sir.

Q. About how many page units are, is that, sir?

A. Between about three and four million, four-page sections.

Q. How long has that been going on, sir?

A. Several years.

Q. Are these runs serviced by International or are they serv-

iced by Greater Buffalo?

A. These runs that they transfer—what do you mean

93 by “servicing?”

Q. To whom does the publisher look?

A. He looks to Greater Buffalo. No publisher looks to us

directly for anything because we have no contracts with any

publisher unless there should be a delay in a shipment or some-

thing, and at the last minute they will call us to see if we can’t

hurry it up.

Q. I am referring now to the technical matters that might

come up. Now, as to these runs, which I believe you stated you

point for Greater Buffalo, to whom does the publisher look?

A. To Greater Buffalo.

Q. In the case when runs have been transferred, what hap-

pens thereafter? Does the publisher look to International or to

the new printer?

A. The publisher looks to King Features Syndicate.

Q. I am talking about technical information.

A. Ninety-nine times out of one hundred, for any kind of in-

formation other than late shipments, they go direct to King

Features and King Features come to us.

Q. Did there ever come a time when there were com-

94 plaints about the caliber of the newsprint or ready

print?

A. On rare occasions, very, very rare occasions, we might get

a complaint about the printing of an ad, but I would say that

the results have been excellent and, therefore, we have had no

reason for complaint.

Q. Well, has International ever taken up such problems with

the publishers directly in the past, at any time?

A. Yes, sir, we have. After the complaint went to King Fea-

tures, we would go direct to the publisher and I have made it

my business over a period of thirty years to contact the pub-

lishers with regard to complaints or to ask them how their

service was, if they were getting out on time, if they were satis-

fied with the printing. I did that by calling on the newspapers

directly and by writing to them and I considered it as part of

my service to King Features.

Q. As part of that service then, you developed a certain re-

lationship with your accounts, is that correct, sir? I mean, the

actual publishing accounts?

A. With a few, but I made these trips so seldom—that is.

there were so many papers to be covered that I got to

95 know a number of them, but not very well.

Q. When the accounts were transferred from Interns

tional, were you ever called upon to make such trips?

A. I don’t think I have made a trip to a newspaper in four

years. I haven’t been well for four years and I have ceased mak-

ing trips.

Q. Do you know if anyone on behalf of International has ever

made such a trip after a newspaper account was transferred

away from the plant of International?

A. I don’t recall any, no, sir.

Q. I believe you testified earlier that International employ:

people who repair, service and recondition ite machinery and

equipment, is that correct, sir?

A. Yes, sir

Q. What was the nuinber you gave of such people who are em-

ployed?

A. About eighteen.

Q. Since June 1, 1955, have any personnel of International

been used to service or recondition machinery and equipment

at plants other than those of International?

A. For the past eight or ten months, some of our men

96 have been in Sylacauga.

Q. When you say “Some of your men,” do you mean

people presently on the payroll of International?

A. That’s right. And then we bill Buffalo and Buffalo pays

us.

Q. How many such people have been assigned?

A. Six maintenance men.

Q. Do you know their names offhand?

A. Zardus, Cognine, Bell—this may sound very stupid of

me, but I can’t remember the other three.

Q. Mr. Hunt. Does that refresh your memory?

A. No.

Q. Mr. Williams?

A. Williams, yes.

Q. Anyone else you can think of?

A. I can’t think of the others.

Q. How long have they been at Sylacauga?

A. Around April or May of last year.

Q. What type of work did they do at International prior to

their going to Sylacauga?

A. They were on the maintenance staff. When presses broke

down or if they had to be rebuilt or replaced cylinders,

97 change folders, they did that sort of work. Some weeks

we had a great arnount of work for them on regular main-

tenance work, and other weeks we didn’t have so much, and

then they worked on this other press, 2022.

Q. Did any of these people, to your knowledge, work on the

servicing or reconditioning of press 2022 prior to its being

shipped to Sylacauga?

A. I think most of them, at some time or other, did.

Q. Was that a reason in determining that these people to your

knowledge, should go to Sylacauga?

A. I think we picked out the one or two that we thought

would be best and there was a question, too, of whether we

could pick out the ones whose wives would be willing to go

down there.

Q. When you say “we picked out,” who made that deter.

mination?

A. The foreman.

Q. Did you ask the foreman to make the determination?

A. No, I think it was made—they came to me and asked me

if it was all right and others asked the foreman. I ddon’t believe

I ever discussed it with him, who was to go or not to go.

Q. Where did the request come from to send peopk

98 orask people to go to Sylacauga? |

A. From Greater Buffalo. |

Q. Who on behalf of Greater Buffalo, made that request? —

A. Walter Koesseler. |

Q. What position does Mr. Walter Koessler hold with Greater

Buffalo? |

A. He is the president, I believe. |

Q. Do you have any idea what the general wage scale is of

the repair people who do the type of work that these peopl

“wy at International? |

{. Something over $3.00 an hour.—$3.00, $3.25, $3.30, some.

whens thereabouts. I don’t know exactly. |

Q. Since these people have been down at Sylacauga, Bane!

they been getting the same wage scale?

A. No, sir.

Q. What wage scale have they been getting? |

A. They are getting a premium rate because it is what ther

call an erecting job, but exactly what the premium is, I don't

know.

Q. Who pays that rate?

A. They pay us, or we pay them and Buffalo pays us.

Q. How long have they been there, sir?

A. Probably about since last April or May.

99 Q. Has Greater Buffalo paid you, paid International

any money to date for the advances as to salaries made

by International?

A. They have paid it all.

Q. Do you know exactly what type of work these people are

performing at Sylacauga?

A. That is a very, very complex question which calls for s

comprehensive answer.

Q. Well, in a general sort of way, is it repair work, recon-

ditioning work?

A. They are erecting the press, lining up the cylinders, lining

up the folders, lining up the reels, grouting the bed plate, add-

ing new drives, putting in the motor, installing a new greasing

system, and probably twenty other different things which I

can’t recall at the moment.

Q And doing that work in connection with what press?

A. 2022.

Q Now, Mr. Joe Clinton, is he employed by International?

A. No, he is employed by Dixie Color Printing.

Q. When did he cease being employed?

A. He has been down there since about May, but he left

our employ, I think, about the first of this year, because

100 he was supposed to be what you might call a supervisor

there, under our direction in case we operated the plant,

and also he continued to work for us in that period and we

kept in touch with him daily on the telephone about the job,

which he had previously done for us, and which required a very

considerable amount of skill. The man who took his place was

not able to take it over and do the job as well as Joe Clinton.

Q. Well, can I get the date exactly when he left your employ,

the specific date, if you know?

A. No, I couldn’t.

Q. When would it be around, did you say?

A. What was that?

Q What date would it be around?

A. I think around the first of the year. I am not sure.

Q Prior to his leaving the employ of International, did he

concern himself with any matters pertaining to Sylacauga?

A. Yes, very considerably.

Q Did he spend any time down at Sylacauga?

A. Yes, he was there for eight months, from May until

101 _—‘ the present time.

Q. And was he concerned during that time with the re-

pair or servicing or conditioning of press 2022?

A. Not actually he himself, no. He had to do with the com-

pletion of the building, the completion of the stereotype equip-

ment, and general supervision.

Q And did he hire people who in turn were concerned with

the repair and maintenance of press 2022?

A. I think he hired some people directly down there who were

not on our payroll. I don’t know anything about them. I haven’t

been there in a year.

Q. As to the people of International who went down to work

at Sylacauga, did he supervise them at all?

A. Well, I would say at that time, direct supervision was in

the hands of the foreman, Roger Zardus, but Joe Clinton would

act as, let’s say, the intermediary or the liaison man between

Greater Buffalo and Sylacauga, in putting into effect any

changes which the Greater Buffalo engineers thought should be

made.

Q. In other words, then Mr. Zardus, the foreman, there, did

report to Joe Clinton, is that correct?

A. Yes.

102 Q. Now, since these men have been down in Syla-

cauga, has International hired any people to replace

them at all?

A. No, sir.

Q. Has anyone been hired to replace Mr. Joe Clinton?

A. No, sir. Let me answer that question in another way:

No one was required to be hired to replace him directly, to do

his work. One man who is there now, is doing his work. We

had to hire someone on the bottom to give us a little more——

Q. In other words, someone else in the lower echelon, some-

one was hired to take up the slack, is that correct?

A. Yes.

Q. Since these people have been down there, how many

such people have been hired on the lower echelon to take up

the slack in the hierarchy?

A. Possibly one.

Q. No more than one?

A. No more than one.

Q. Have any people had to put in overtime in order to take

up this slack?

A. It is very hard to ascribe the reasons for overtime

103 __—in any department. It may be a rush job, maintenance,

or a breakdown, and only certain men could do it

who might have had the overtime anyhow, but I would say

there has been very little overtime directly as a result of the

men leaving.

Q. Mr. Gorman, have you received any information since

1956, in regard to any negotiations or contracts relating to the

sale of stock of International, to any corporation or person?

Mr. Moore: I am going to object to the form of the question

with the use of the word, “intimation.”

Mr. FetpMan: I said information.

Mr. Moore: You said information?

Mr. Fetpman: Yes.

The Wrrness: I don’t have any information to that effect.

By Mr. Feipman:

Q. Do you have any knowledge?

A. No, sir, I do not.

Q. Do you know whether anyone has received any infor-

mation?

A. I have no knowledge of anyone receiving any

104 information on that subject.

Mr. Fetpman: I have no further questions.

Mr. Moore: I have rather a lengthy cross examination on

this, and I would suggest that we break off now and take it up

at 2 o'clock. It is 12:30 now.

Mr. Fetpman: We will adjourn for lunch until 2 o’clock.

(Thereupon the proceedings were adjourned for lunch until

2 o’clock p.m.)

105 AFTERNOON Session, 2 O’Ciocx P.M.

JoserxH J. GoRMAN, resumed the stand and testified further

as follows:

Mr. FetpMan: You are the same Mr. Gorman who testified

this morning, is that correct?

The Wrrness: Yes, sir.

Mr. Fetpman: And you realize you are still under oath?

The Wrrness: Yes, sir.

EXAMINATION

By Mr. Moore:

Q. Now, Mr. Gorman, this press number 2022, where was

that purchased from?

A. Baltimore Post.

Q. And at whose direction did you purchase that press?

A. Walter Koessler.

Q. And on whose account was it purchased?

A. On account of Greater Buffalo Press.

416-872—71—vol. 1-5

Q. And was the press taken to Wilkes-Barre?

A. Yes, sir.

106 Q. On whose direction was it taken to Wilkes-Barre!

A. Walter Koessler.

Q. What were your instructions with respect to the pres

when it arrived in Wilkes-Barre?

A. He wanted us to erect the press, line it up, and put ir

the innovations, which he had in mind, which would bring about

pre-registering and allow us to use five-plates wide, rather thar

four or eight cylinders on the press.

Q. Was there ever any intention upon the part of Interna

tional, to erect that press for operation at Wilkes-Barre?

A. No, sir.

Q. In other words, your job at International was to do th

machine work on that press?

A. Yes, sir.

Q. And where did the plates come from?

A. From Buffalo.

Q. And from where in Buffalo?

A. Some from Walter Koessler, but mostly from the Buerl

Machinery Company, which I believe was ordered to sen

them down here by Greater Buffalo Press.

Q. And where did the conception of this rebuilding o

107 _‘ the press come from?

A. From Buffalo.

Q. And where did the parts come from?

A. Mostly the parts came from Buffalo.

Q. Now, when you first set this press up in Wilkes-Barre

how was it set up; was it set up in an area where it could b

operated?

A. No, it was set up in a small building alongside of the mail

plant, the main Sheldon plant building, which was former)

used to warehouse parts and unused machinery.

Q. Was there any pit made for the press?

A. There was no pit.

Q. Could that press be operated without a pit?

A. You couldn’t operate the press without a motor and th

motor would have to go with the pit, and there was not enoug!

room behind the press even if it was operating in that room

for rolls nor no room in front for the bundles.

Q. In other words, the setup at Wilkes-Barre on that press

was purely and simply to work on it and do the machinery and

maintenance and revision work necessary?

108 A. Yes, sir.

Now, do you know whether or not a pit was built

for this pres¢ #t Sylacauga?

. Yes, sir’

@ phe do you know when that was done?

A. It wag built at the same time as the building was erected.

We obtained from Buffalo the dimensions that they wanted

for the pit, 80 88 to save money in the erection of the building,

they did the pit and the whole building at the same time.

Q. And that pit was designed and installed at Sylacauga for

the purpose Of taking this particular press?

A. For the express purpose of press 2022.

Q. With the exception of a few thousand dollars, which may

remain in the balance of the account, has International been

paid for all of the work it did on this press?

A. Yes, sir.

Q. Has it been paid for all the parte it supplied to the press?

A. Yes, sir.

Q. And has it been reimbursed for the services ren-

109 dered by any International personnel to the plant at

Sylacauga?

A. That is right.

Q. And these amounts were paid over the years as they were

built?

A. Paid over the years.

Q. Now, at Wilkes-Barre, I think you testified that you have

the same number of presses now that you had in June Ist, 1955?

A. Yes, sir.

Q. And are you operating five days a week?

A. Yes, sir.

Q. And with three presses?

A. Some presses occasionally go right around the full five

days there if they don’t run three shifts every day of the five

si Sometimes it is necessary to work a little more than five

Q. Well, is your operation today essentially the same as it

was in 1955?

A. The efficiency has been greatly improved. Is that what

you mean, the way we are operating?

Q. Well, describe what improvements you have had in

efficiency?

110 A. The major portion of our labor cost is in the press

room and the press room, each press or the average net

production per press hour, including time for registering, that

is, getting the plate on and fitting it on the press, has been im-

proved by twenty-five percent since 1955.

Q. To what is that improvement attributable?

A. That is due primarily to a pre-registry arrangement which

was conceived by Buffalo, put into effect in the Buffialo plant

and then after they purchased International Color Printing

Company, they told us how to do it. I might add there, that

where we would formerly take, say, four hours to put plates on

@ press and get ready to run, we now do it in an average of two

hours or less, so that we would see roughly, two hours in each

complete change. That has been a result in the net production

increase of about twenty-five percent.

Q. Now, directing your attention just to the Wilkes-Barre

plant, how does the volume at the Wilkes-Barre plant compare

now with what it was in June of 1955?

A. I would say we are printing three or four million a week,

four-page sections more again than in 1955.

111 Q. In other words, at Wilkes-Barre you are printing

more today than you did on June 1, 1955?

A. By three or four million.

Q. Now, directing your attention to the period before

June Ist, 1955, or as of June Ist, 1955, what was the financial

condition of International at that time?

A. We had approximately $100,000.00 deficit in our working

capital, that is, specifically our credit liabilities exceeded our

current assets by about $100,000.00.

Q. And as of December 3ist, 1960, what change had taken

place in that condition?

A. It had changed to the point where current assets exceeded

current liabilities by roughly, $800,000.

Q. In other words, your net position had changed by

$900,000.00?

A. Yes.

Q. And to what was that change attributable; how did that

come about?

A. It was a change largely due to the increase in production

and also due to a better ink which we were able to buy

112 and get greater coverage from the mechanical process

and also to the fact that Buffalo had made it possible for

us by some cheaper paper from certain mills.

Q. Now, tell us about this ink. What was the change in the

ink?

A. Basically, I don’t know what the change was, except we

got greater coverage and more strength and, therefore, the cost

per thousand four-page sections was less by better than a cent.

Q. Well, now, this new ink supplier was cured through

Greater Buffalo?

A. Yes.

Q. At their recommendation?

A. Yes.

Q. And when did you make that change?

A. We made it partially in 1955. We increased the proportion

in 1956 and I think that in early 1957, or the middle of 1957,

we started to get all of the ink from the new people.

Q. And you bought that ink cheaper than you had before?

A. I wouldn’t say that the price was cheaper per pound, I

don’t remember that, but the coverage was greater, which made

the cost per thousand less.

113 Q. And what about the quality of the product?

A. I think the quality of the product improved be-

cause we have stronger colors.

Q. Now, prior to June Ist, 1955, who owned the stock of

International?

A. Well, Ralph R. Gobin and Mrs. Maisey Scofield.

Q. Did you own any stock yourself?

A. No, sir.

Q. They were the sole owners of the business?

A. Yes, sir.

Q. Now, had they made any further investment in the com-

pany for the years prior to June Ist, 1955?

A. No, sir.

Q. Had they made any contribution to the working capital

of the company?

A. No, sir.

Q. Had you from time to time, discussed with them, the

necessity of improving the working capital position?

Mr. FetpMan: I am going to object to the question at this

time on the grounds that what took place prior to

114 June Ist, 1955, is not germain and not material to this

inquiry. Let the record note the objection is based on the

fact that we are concerned here with business assets of Inter-

national Color Printing Company from June Ist, 1955, to the

present time.

Mr. Moore: Well, is your statement that what happened =

prior to June Ist, 1955, is not germain to thisease? «st

ceeding. ’ f :

Mr. Moore: Well, I will ask him to answer the question

anyway. Will the reporter read the question?

(Reporter repeated question us follows: )

“Q. Had you from time to time discussed with them the |

necessity of improving the working capital position?” 4

The Witness: Yes, sir.

115 Mr. FetpMan: In that question, what date does that |

referto? - 4

Mr. Moore: Prior to June Ist, 1955. ?

Mr. FetpmMan: I am going to object again to the question. |

Mr. Moore: You can object to it, but I am going to have the

answer anyway.

Mr. Fetpman: All right. Let him answer the question then. |

By Mr. Moore:

Q. And as a result of those discussions, had they shown any |

willingness to improve the working capital position of the =§

company?

A. No, sir. On the contrary, one in particular was constantly

seeking dividends, rather than putting money back in.

Q. And on June Ist, 1955, was the financial position of the

company in a precarious state?

A. Yes, sir.

Q. Now, how long has International been in the business

of printing colored comic supplements?

A. Thirty-seven years.

116 Q. And of those thirty-seven years, how long has it

aii been under contract with King to print exclusively for

A. Practically all of the thirty-seven years.

Q. Now, when: was the last time you or anybody on behalf

of International, solicited the ' printing of color comic

ents? '

A: In the year, 1925. Before, we had an arrangement of an

exclusive style of soliciting two papers, and obtained them in.

1925 and I have not solicited any since.

Q. And during the past thirty years, or up to June Ist, 1955,

for 25 years prior to June 1st, 1955, did International ever have

a contract with anybody other than King, to ae color comic

supplements?

A. None except the two papers I mentioned.

Mr. Fetoman: At this point I wish the record to note that

I object: to the question as calling for an answer as to efforts

which took place prior to June Ist, 1955:

By Mr. Moorg:

117 Q. How long did you maintain the contracts direetly

from International to those two papers you referred to?

A. Not more than a year.

Q So that can you say from 1926, to June Ist, 1955, that

International has never had a contract with anyone, other than

King, to print Color comics supplements?

A. That is correct.

Mr. Fetpman: I object to that question on the same grounds

urged in the prior one.

By Mr. Moore:

Q And can you say that during that period of time, Inter-

national has never at any time sought such a contract?

A. Yes, sir.

Q. And can you say whether or not International has ever

competed with anybody during that time for the printing of

colored comic supplements?

A. No, sir.

Q. It has not?

118 A. It has not.

Q. Now, at the time that the stock of International

was acquired by Greater Buffalo Press, did International have

a contract with King for printing colored comic supplements?

A. We had a carry-over contract with six months notice; in

other words, we had what you might call a six months contract.

Q And that was the only contract you had with anybody

for printing?

A. Yes, at that time—well, at any time.

Q. And under the terms of that contract, was King obligated

to print any specific runs at International?

Mr. Fatpman: I object to that question as to form, viola-

tion of the Parole Evidence Rule, namely, the terms of that

contract.

Mr. Moore: You may answer.

The Wrrness: Well, will you ask that question again,

please?

(Reporter repeated the question as follows:

119 “Q. And under the terms of that contract, was Kiug

obligated to print any specific runs at International?”)

A. No, sir.

Q. Now, subsequent to June Ist, 1955, was a new contract

negotiated with King?

A. It was discussed. ites

Q. And—

A. It was not renewed.

Q. The contract was not renewed?

A. It was not completed prior to June Ist, 1955.

Q. Well, subsequent to 1955, was there a contract eventually

entered into?

A. Yes, two months later. The exact date I don’t know.

Q. And was that contract substantially similar to the con-

tract that had preceeded it?

A. Substantially.

Q. And under the terms of that contract, was King obligated

to print any specific runs at International?

A. No, sir.

Mr. FeitpMan: I again renew my objection as to

120 any declaration by the deponent as to the terms of 8

written contract.

By Mr. Moore:

Q. Now, subsequent to June Ist, 1955, I think you testified

that there were certain runs that were formerly printed at

International which were no longer printed there?

A. Yes, sir.

Q. And you testified to a rather long list of papers?

A. - Yes, sir.

Q. Now, of course, International had no contracts with any

of those papers, did they?

A. No, sir.

Q. And the changes that were made in the runs were occa-

sioned to some extent by business that King had lent, were ii

not? '

A. Yes, sir

Q. In other words, when King ost the pesinom, Interna-

tional lost the run? org

A. Yes, sir

Q. ‘Lost the printing of the run?

121_.- A,, The printing.

Q. Certain of these runs were lost be King’ to Greater

Buffalo, were they not?

A. Yes, sir

Q. Certain were lost to the Newport News?

A. Yes, sir.

Q.. Certain others to Eastern?

A. Yes, one to Eastern.

Q. One to Eastern? ;

A. Yes.

_ Q. Some to Star?

A. One to Star,

Q. And certain of the other papers went out of business?

A. Some went out of business.

Q. And certain of the others, the papers undertook to do

the work themselves, did they not?

A. We don’t know that some of the others undertook to do it.

Q. And you don’t know, because it wasn’t your function to

get that business, was it?

A. No, sir.

‘2. Prior to the time this press 2022 was shipped to

122 Sylacauga, was there some kind of an accident which

affected it?

A. Yes.

Mr. FetpMan: I object to the form of the question, namely,

an accident, that it calls for a conclusion.

By Mr. Moore:

a I will re-phrase the question. Did something happen to

it?

A. Yes, the floor settled underneath the press and threw it

completely out of line.

Q. Will you describe for us what you mean by throwing it

out of line?

A. When a press is set up, it has to be set up with a tolerance

of thousandths of an inch, so that the cylinders and folder and

so forth will run smoothly. If the press had been set up ona

pit built specifically for that purpose, the chances are that

nothing would have happened. But it was set up on an old

floor which wasn’t thick enough and the floor settled and the

press settled with it and threw practically everything out of

line.

123 Q. Did that require the redoing of a considerable

amount of work? :

A. A very considerable amount of work would have to be re- 7

done after the press went to Sylacauga.

4 aa work was subsequently done at Sylacauga?

Q. ree Chee the press went to Sylacauga, were there other

A. Well, I haven’t heen there, but I have known of other

changes such as the installation of a greasing arrangement, an

automatic greasing arrangement which the press never had, the |

changing of the drive was put in, a double drive instead of a

single drive, and various other changes with which I am not too

particularly familiar.

Q. Now, where were those changes directed from, who de-

designed those changes?

A. Walter Koessler, of Greater Buffalo, or the Buerk Ma-

chine Shop.

Q. Is Buerk Machine Shop the machine shop that does a Iet

of work for Greater Buffalo?

A. Yes.

Q. Located on the premises next to Greater Buffalo?

124 A. That is correct.

Q. Now, during the course of your examination, you

testified that some runs were transferred to Lufkin with your

consent and approval. Now, I ask you whether you had any

power to consent or approve to the transfer of any runs?

A. No, sir, I didn’t.

Q. Because the business you had was King’s business, was it

not?

A. That is right.

Q. Now, subsequent to June Ist, 1955, did you at Interna-

tional, print runs for persons other than King Features?

A. Yes, Greater Buffalo.

Q. And I believe you testified that you received from Greater

Buffalo, business that was substantially equivalent to the busi-

ness that had been lost at the time when Peoria closed?

A. About equal.

Q. So that the net result as far as Wilkes-Barre was con-

cerned, volume-wise, it was about equal?

A. That is right.

Q. Of course, prior to June Ist, 1955, and for thirty

125 years prior thereto, International had never done any

printing for anybody other than King?

A. That is right.

Q. Now, has Greater Buffalo caused to be removed from

International at Wilkes-Barre, any machinery or equipment

that has impaired the operation of the Wilkes-Barre plant?

A. No, sir.

Q. And has your maintenance suffered at Wilkes-Barre by

reason of the assignment of certain maintenance personnel to

do certain work at Sylacauga?

A. That is a pretty hard question to answer. I mean, I

couldn’t draw a line in black and white and say whether they

suffered a little or not. In time, it may. I don’t know.

Q. You haven’t had any trouble from it?

A. That is right. The fact that we are still running twenty-

five percent better than we were in 1955, indicates we didn’t

have too much trouble.

Mr. Moore: Can we take about a five minute break and

maybe we will finish up here.

Mr. Fetpman: Yes.

126 (Short recess taken.)

By Mr. Moore:

Q. Mr. Gorman, at the time that you purchased at the direc-

tion of Greater Buffalo, this press 2022 did you have any con-

a of the plans that had been made for transforming it?

A. No, sir.

Q. And when did you first learn what was to be done to it?

A. I saw cylinder lines on the floor of the machine shop up

here; that looked a little bit different than anything I had seen

before, and Mr. Koessler said, “That is for a 5-plate press they

are putting up.” That would be the same then for the press they

were putting up in Wilkes-Barre. That was about 1956.

7. Had you ever heard of a press like that before?

. No, sir.

Q. Had any of the crew that was working on it in Wilkes-

Barre, had: they had any experience, with a press like that

before? «

A. No, sir.

127 Q.. And by whom was this 5-plate press conceived?

A. Either by Buerk or Walter Koessler, but the in-

formation came to us from Walter Koessler. I don’t know.

Q. This was a wholly new nncoaeenn in the women to your

knowledge? . '

A. To the best of my knowledge, yes

Mr. Moore:I think you may ask.

Mr. FeupMan: Do the other counsel here have any

questions? .

Mr. Lonpon: No questions.

Mr. Stevens: No questions.

By Mr. FetpmMan:

Q. Mr. Gorman, prior to the time you purchased press 2022

at the direction of Mr. Koessler of Greater Buffalo Press, to

you knowledge, had International at any time in the past, ever

purchased & press on behalf of another printer?

A. No, sir.

Q. Was there any time in the past when International

on behalf of another printer, took a press and had the press

altered?

128 A. Not that I can recall.

Q. Was there any time in the past that International

assigned personnel to work with another printer?

A. No.

Q. At the time that you purchased press 2022, who on behalf

of International, actually went out and negotiated for the pur-

chase of the press?

A. Tom Brennan.

Q. Did Tom Brennan report back to you?

A. Yes, sir.

Q. And who had the final word, as far as International was

concerned, in regard to the purchase price?

A. No one had the final word at International. I had to con-

sult with Walter Koessler.

Q. What position does Tom Brennan hold in International?

A. Purchasing agent.

Q. And in connection with the negotiation for the purchase

of press 2022, did Tom Brennan go and speak to the people

at Baltimore?

A. Yes.

Q. And was this during the time that Tom Brennan was

being paid by International Color Printing Company?

129 A. Yes, sir.

Q. Has Tom Brennan, since that time, been in the

continual employ of the International Printing Company?

A. Yes, sir.

Q. Has he, at any time, taken leave of International Color

Printing Company?

A. No, sir.

Q. Was International Printing Company reimbursed for the

time spent by Tom Brennan in going down and negotiating for

the purchase of the press?

A. No, sir.

Q. How long did that negotiation take?

A. Very brief, a month or two.

Q. And about how many trips did that involve on the part

of Tom Brennan?

A. One or two at the most.

Q. Did Mr. Tom Brennan report, at any time, directly to

Walter Koessler, or did he always report to you?

A. He reported to me.

Q. Did you, at any time, ever make a trip up here to

Buffalo to consult with Walter Koessler with regard to that

purchase?

130 A. I don’t think I made a specific trip, but I dis-

cussed that with him here, but whether I made a specific

trip for that, I don’t know.

Q. I believed you testified under the examination of Mr.

Moore, that at Sylacauga, a pit was built, is that correct, sir?

A. That is correct.

Q. And that pit presently houses, I take it, press 2022?

A. Yes, sir.

Q. Were there any personnel of International Color Print-

ing Company engaged in building or making that pit?

A. No, sir.

Q. Did any personnel at International Color Printing «lirect,

or in any way scheme or conceive of the manner in which that

pit was to be built?

A. Mr. Walter Koessler told us that the pit was to be built

for 2022 and whether he gave us the drawing for the pit, or

whether we got the drawings from Hoag and Company, I am not

sure, but I think we must have gotten the drawings from Walter

Koessler for the reason that when the press was

131 erected in Baltimore, it was erected as a six-deck high

press, two tiers, two stacks and, therefore, the new pit

would have to form on account of having the lower of the six-

deck, to four, and extending the tier, it would have to be a

longer pit than originally used in Baltimore. It was our custom

always when we needed drawings, to go to Goss or Hoag for

any of those presses, which they had originally built.

Q. At that time, did you ever visit Sylacauga and see the

pit and the building?

A. Yes, sir.

Q. And this was prior to the shipment of press 2022 or

after the press was shipped down there?

A. I never was there since the press was shipped.

Q. In other words, immediately prior to, or prior to the

shipment of the press, did you go down and investigate the

way the pit looked?

A. Not immediately after. I was there in a year.

Q. Did you see the pit before the press came down?

A. I did see the pit.

Q. Was that one of the purposes you visited them, to look

at this particular pit?

132 A. Not to look at that particular pit. It was to see

how things were going. In fact, I had only gone on one

trip in the last two or three years.

Q. Well, how long did you stay when you made that trip?

A. Overnight.

Q. Now, I believe you testified a little while back that since

the acquisition of the stock of International Color Printing, the

efficiency of International has increased about twenty-five per-

cent as to the operation of the presses?

A. Yes, the net per hour has been increased by twenty-five

percent.

Q. Has that come about because of the ingenuity used by

people at International or because of the technical knowledge

received from Greater Buffalo?

A. The technical knowledge received from Greater Buffalo.

Q. Now, prior to the acquisition of the stock of International

Color Printing Company, did International rely upon the

technical know how of any other printer?

A. No, sir.

133 Q. I believe you testified a little while back that as

to the four-page units, more four-page unite are pres-

ently printed at Wilkes-Barre than prior to June Ist, 1955,

is that correct?

A. Yes, sir.

Q. Orat least since June Ist, 1955?

A. Yes, sir, by June Ist, 1955.

Q. Now, you mean, if I am correct when I heard some testi-

mony by you, and you correct me if I am wrong, that the total

number of four-page units since June, 1955, has been less at

Wilkes-Barre than before, is that correct?

A. No, I didn’t say that. I said the total number of supple-

ments printed was less. That included Peoria and Wilkes-

Barre.

Q. And by supplements——

A. Four-page sections.

Q. Now, I believe you testified a little while back that the

assets, money-wise, as to International Color Printing Com-

pany, have increased since June Ist, 1955, is that correct, sir?

A. Yes, sir.

Q. And has this also come about because of the tech-

134 _ nical knowledge acquired from Greater Buffalo Press?

A. Largely.

Q. What are the other factors?

A. The other things, as I indicated before, lower cost of ink

per thousand and a better price on some newsprint.

Q. With regard to the exchange of technical knowledge, did

you exchange with Greater Buffalo Press, cost summary as to

work produced per hour, or any other unit of measurement?

A. Yes.

Q. And did they exchange that information with you?

A. Did they give me that information?

Q. Yes, sir.

A. No, sir.

Q. As to their production?

A. No, sir.

135 Q. Now, prior to June 1, 1955 did you exchange such

information with any other printer?

A. From time to time over the years I was on very friendly

relations with the superintendent up at Waterbury, Connecti-

cut and we talked about mechanical things and he came down

to our place and I went up there. Also from time to time ]

went down to Newport News and they came up to our place

and exchanged information.

Q. Was that just general informatior over a long period of

time or was there a regular systematic exchange?

A. No. I just happened to drop in there or they happened

to drop in our place.

Q. What is the case with regard to Greater Buffalo, is there

a systematic exchange or is it rather sporadic?

A. Sporadic.

Q. And does International generally feel free to call upon

Greater Buffalo at the present time? ;

A. Yes, sir.

Q. In the past has there ever been such relations with any

other printer, namely, the one you have with Greater

136 Buffalo, with regard to the exchange of information?

A. Only when I just explained, from time to time we

exchange information with Newport News and also one time we

exchanged information with Acme in San Bernardino, the su-

perintendent there came to visit us and I went to visit them.

Q. With regard to Acme and with regard to Eastman Color,

the printers you just mentioned in Waterbury, did you ever

exchange establishing accounts which each company was then

servicing?

A. I couldn’t do that if I wanted to because I had no control

of accounts.

Q. Well, did you ever exchange information?

A. Yes.

Q. Have you ever exchanged such information with Greater

Buffalo Press?

A. Exchange accounts?

Q. Exchange knowledge about accounts?

A. No.

Q. With——

A. Since 1955?

Q. Yes, since 1955?

137 A. Yes.

Q. Have you exchanged such information?

A. Yes.

Q. Have ever such information with an

other print, 2 exchanged y

A. No, &

Q. Now, in regard to the purchase of ink supplies, has Inter-

ee Yer purchased ink from any other printer or through

ec No. wt

Q. And * take it or am I correct in your testimony that such

rect? ave been made from Greater Buffalo, is that cor-

A. Of 8 emical process.

Q. That Greater Buffalo has worked out, is that correct ?

Q Who arranged the chemical process to sell us ink.

. Thav’ do the raw materials come from?

pnt the slightest idea.

A Itcor do you purchase the raw materials?

; gies to us already prepared.

A Who prepared the ink?

“ Chemical Process.

Yes. ’ Ts that the name of a company?

" Yes, Chemical Process also sell to Greater Buffalo?

2 va fey also sell to you, is that correct?

Q. Now, ™: : : : :

Greater Bus this a peculiar technical knowledge which

A. Yes, ¢ alo is able to benefit from and also International?

Q. Do yi

nical know know of any other printers that get such tech-

A. Ido r¢dge or the benefits of such a mixing process?

printer or 1°t know anything about any ink costs of any other

about using”here they buy it or what arrangement they have

Q. Prior 22y technical process.

process, dit0 your getting such technical process or chemical

suppliers? 1 International purchase ink from regular ink

139 Yes, sir.

such Did International have continual contacts with

A. Yes, sink suppliers?

Does '-

suppliers? {nternational presently have such contact with ink

416-872

= -71—vol. 1-6

A. Other ink suppliers still drop in to see us, yes.

Q. But you haven’t made any purchases recently from them,

have you?

A. No, sir.

Q. Now, in regard.to runs on newspaper accounts, did

Greater Buffalo at any time ever tell you or anyone else at

International which account to transfer to Lufkin or any other

subsidiary of Greater Buffalo?

A. They transferred, when they took runs, when we trans-

ferred them to King Features, any way it was done, runs went

from Peoria to Buffalo and later just by running down to

Peoria and they did so because it was going to be cheaper and

I passed on the word to King.

Q. It was a direction from Greater Buffalo to International

to transfer the run, is that correct?

140 A. Yes.

Q. And you had no say in the matter at all, is that

correct?

A. Thad nothing to do with theruns.

Q. In other words, you just received a direction from some-

one at Greater Buffalo and you merely carried it out?

A. I notified King Features of the matters and so forth and

notices were sent to Lufkin.

Q. When you notified King Features, did you let them know

that this was a determination made by Greater Buffalo?

A. Yes, sir.

Q. In regard to the changes of press 2022 at Sylacauga, you

know whether these changes have been made by the personnel

of International now at Sylacauga?

A. They have been making them over the past eight or

nine months. How far they have gone towards, completion,

I don’t know.

Q. Do you know whether any other technical men outside

of the men from International are working in Sylacauga?

141 A. Yes, there is a man who occasionally goes there

from here to Buffalo.

Q. But the bulk of the technical personnel presently work-

ing in Sylacauga are from International?

A. I don’t know who they have there other than ours, other

than our men I don’t know how many men they have there

other than our men. I don’t know who the Greater Buffalo

men are or what they do or how long they stay. I haven’t been

there in a year and I haven’t been familiar with anything

Q. Do you know whether or not people from Greater Buf-

falo are presently now at Sylacauga?

A. No, I don’t.

Q. Do you know whether technical people from any other

subsidiary of Greater Buffalo other than International are at

Sylacauga?

A. I don’t know anything about anything that has taken

place at Sylacauga.

Q. Did you ever have any discussions with Joe Clinton as to

the time element involved in getting press 2022 ready to

function?

A. Yes.

142 Q. When did you have such discussions with him the

last time?

A. Probably three months ago.

Q. Did Joe Clinton ever indicate to you in any way that he

was relying on the people from International to get such press

ready?

A. I knew that he was relying on them.

Q. Did he ever indicate to you how much he was relying

upon the people from International?

Mr. Moors: I object to the form of that, how much.

Q. Let’s delete “how much”. Did he ever indicate to you that

he was relying upon the people from International to get the

press ready?

A. Yes.

Q. Now, a little while back you were asked by your counsel

about some of the machinery which has left International and

I believe you testified that International presently has not

suffered any loss because of such transfer, is that correct?

A. That is correct.

Q. I believe you also said that what might happen

143 in the future you can’t tell at the present time?

Mr. Moors: I object to that. That isn’t what he said.

We are talking about maintenance.

Mr. FetpMan: Let me ask the witness what he said.

Mr. Moore: I can make an objection, counsel, and I will

make my objection on the record and you ask the question.

Mr. FetpMan: Let the objection be noted.

The Witness: Could I have the question again, please?

(The reporter repeated the question as follows:

“Q. I believe you also said that what might happen in the

future you can’t tell at the present time?”)

By Mr. Fe.tpMan:

Q. Is that your testimony?

A. You have to go back further than that. I don’t think that

is a complete question.

144 Q. Let me rephrase the question. I believe you testified,

and you tell me whether or not I am right, that as fa

as equipment leaving International, International at the pre:

ent time has not suffered any damage as far as the efficiency is

concerned, their present efficiency?

A. No, that was not the question I answered. One question

I answered was has the machinery at Wilkes-Barre suffered any

as a result of maintenance men not being there, not erecting

of material leaving there, and I said as far as I know, no, it has

not, but I couldn’t tell you what might happen in the future.

Q. That is what I am getting at.

Mr. Moors: I will remark again that that was not what you

question was.

Mr. FevpMan: Well, he gave me an answer, counsel.

Mr. Moore: Well, when you asked the right question, he did.

By Mr. FetpMan:

Q. As far as the machinery, the present machinery at Wilkes

Barre is concerned, is it your testimony then that as far

145 as the future, you cannot presently determine what the

affect of the transfer of leaving of maintenance men

from International will have upon the maintenance of that

equipment?

A. No one in the printing business at any time knows what

is going to happen in the future and when it does happen, they

don’t know whether it is the reason of men not being there or

not. Accidents take place and we are very seldom able to ac-

count for the reasons.

Q. Now, early today I believe you testified, and correct me

if I am wrong, that many of the machinery end equipment that

International has has been put together by the ingenuity and

skill of people at International and also that equipment wa:

purchased at various times and put together, is that correct?

A. Yes.

Q. Is International at the present time able to purchase in

an open market any of the machinery and equipment which

was'shipped from Wilkes Barre to either Sylacauga or Greater

Buffalo Press?

., «A. From day to day I don’t know what is going to be

146 :on,the market. Tomorrow I might pick up the Editor

and Publisher and find there is a lot of equipment for

sale. There might not be any for sale for a month or more, so

it is hard to tell when it will be on the-market. At any rate, we

have equipment from.Wilkes Barre which can be rebuilt in

case we have an expansion.

Q, In, regard to the specific equipment which left Wilkes

Barre, can International at any given time go out in the asrem

aad repurchase or duplicate that equipment?

A. I can’t answer that. I don’t know what.is going to be on

the market tomorrow or a month from now or today.

Q. Does the market change from. day to day as to nor is

available? °

A. Yes. We can buy nothing but used machinery and we

don’t know when the newspapers are going to say, “We don’t

need this any more; you may haveit.”

Q. Is the availability of such machinery decreasing or in-

creasing?

A. Decreasing because they have ceased making that type

148 of machinery quite a few years ago.

Q. At the time International purchased press 2022 at

Baltimore did you know that that press eventually was going

to be shipped to Sylacauga?

A. Yes, sir.

Q. And at the time you received directions from Mr. Walter

Koessler to purchase that press did he indicate to you at that

time that the press was eventually going to be shipped to

Sylacauga?

A. Yes, sir.

Q. Now, I believe you stated that International was repaid

for the purchase of that press, is that correct?

A. Yes, sir.

Q. When, can you recall now, was International repaid?

A. Three or four months ago.

Q. Was that the entire amount or were payments made over

the year?

A. There were payments made over the year.

Q. How soon after the initial amount was laid out, namely,

$32,500, was International repaid?

A. Just repaid recently, within the last three or fow

149 months.

Q. What I want to know is was the amount for the

entire press and the work put in on the press paid all in one

sum in the last few months?

A. Yes, sir.

Q. Or were payments sporadic over the years?

A. For the work on that press, the work was paid within the

last couple months.

Q. And that included the original purchase price and ln

the work on the press?

A. Yes, sir.

Q. When you say “within the last few months” was that since |

January 1961 or was it before January 1961?

A. I think it was before January 1961.

Q. Can you recall how much before January 1961?

No, I would like your recollection.

A. I can’t give it to you.

Q. Then, state you don’t know.

I don’t know.

Q. Do you have any records here which would indicate when |

payment was made to International for that press?

A. Yes, sir. Payments made to who for that press’ ”

150 Q. To International from Greater Buffalo. Can you |

give me an answer on that, sir? :

A. In January of 1961. :

Q. Do you have a more specific date when you say “Janv- |

ary”? Is there any given day there?

A. No, it just says January 1961. .

Q. Do you recall when that payment was made, or did it F :

come in the normal course of business of International?

A. In January 1961. .

Q. No. Did you actually receive the check or mode of pay- fF

ment, or did it come to International in the regular course of

business?

A. It came to International in the regular course of business.

They were billed and they paid for it.

Q. Now, immediately prior to the purchase of press 2022

was it ever contemplated that International would engage in

the operation of a plant at Sylacauga?

A. Yes.

Q. And what is the present arrangement in that

regard?

151 A. We are not going to put a press down there now.

Q. Who made that determination?

A. Which determination?

@ The determination that International would not operate

a press at Sylacauga?

A. I think it is quite obvious that there would be no point in

putting one down there.

Q. Well, prior to the time that press 2022 was purchased by

International was there a determination made that Interna-

tional would put a press down in Sylacauga and would itself

that press?

A. Prior to the purchase of International by Greater Buffalo

Press, International had planned to put three single width

presses down there.

Q. I am talking now prior to the purchase of press 2022 in

1955 and immediately prior thereto. Was there a determination

made that International was going to operate a press at

Sylacauga?

A. No, sir.

Q. When was the determination made that International

would not operate a press at Sylacauga?

A. Immediately after the purchase of stock by Greater

152 Buffalo Press.

Q. When would that be, around June 1955?

A. June 25, 1955.

Q. In talking now again about the four-page unit production

of International in or about June 1955 there was production or

there was printing of color comic supplement at both Peoria

and Wilkes Barre, is that correct, sir?

A. Yes, sir.

Q. Can you recall now what the total four-page unit of pro-

duction was for both plants, namely those located at Wilkes

Barre and the one at Peoria?

A. As close as I can recall, about 29,000,000.

Q. Presently what is the production of four-page units of

color comic supplements at the Wilkes Barre plants?

A. A maximum of 27,000,000. Some weeks we run a little

less than that; some weeks we are down to 25,000,000, but on

the average over the past three months I would say about

27,000,000.

Mr. FetpMan: I have no further questions.

Mr. Moore: There is one matter I want to discus

153 and I thinkI can finish up.

Mr. Weiss:..Why don’t we take recess.

Mr. Moore: Can we take a five-minute break?

Mr. Fetpman: Yes.

(Short recess taken.)

By Mr. Moore:

Q. Now, Mr. Corman,. you testified just, @ Moment ago a

to—I think you used the word “plans” that International had

for a southern plant, is that right?

A.. Yes, sir.

Q. What was the nature of those plans? How far had you

plans progressed?

A. We hadn’t progressed at all because we, first of all, needed

financing or the prospect of financing and ‘the owners didn’t

have the money and we saw no prospect of getting it from

anyone else.

Q. So, as of June 1, 1955 whatever plans International had

were completely. impracticable for lack of financing, is that

right?

154 A. That is correct.

Q. And you had not progressed to the stage of any

concrete plans at all?

A. No.

Q. You didn’t know whether you were going to get the

financing?

A. No, sir.

Q. You didn’t?

A. No, sir.

Mr. Moors: I think that is all.

Mr. Fetpman: Do any of the geatlemen here have any

questions?

Mr. Srevens: No.

Mr. Lonvon: No.

By Mr. FetpMan:

Q. Isn’t it a matter of fact, Mr. Gorman, that on or about

or even immediately prior to June 1, 1955 you had reached 8

determination that a plant would be built at Sylacauga?

A. No, we had no specific plans to do it because we saw n0

prospect of getting the money.

Q. In regard to obtaining newsprint were any plans

155 materializing?

A. Newsprint was promised to us in the beginning,

say, in 1954, but then we were told that because we had no con-

tracts they wouldn’t care to sell newsprint to us. They would

sell it directly to King Features and then King Features would

sell it to us provided we had a plant.

Q. And did King Features or the Hearst Corporation enter

into such a contract?

A. Yes, sir.

Q. On June 1, 1955 was such a contract outstanding between

the Hearst Corporation and the Coosa River Company?

A. I think it was—I don’t know whether it was exactly at

that time or before or after, there was a contract, but I don’t

remember the dates.

Q. At any rate, on June 1, 1955 such a contract had been

entered into already, is that correct?

A. That’s right.

Q. And was an assignment made or did the Hearst Corpora-

tion indicate that the newsprint would be made available to

International Color Printing Company?

156 A. If we had a plant.

Q. In other words, if you had a plant, such newsprint

would be made available to International Color Printing

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