# Appendix — United States v. Greater Buffalo Press, Inc. > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386413_0288%3A1 ## Record - **Collection:** Supreme Court brief - **Document type:** Appendix - **Published:** January 1, 1971 - **Citation:** 402 U.S. 549 ## Text 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...------------- qr 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 ee aU cena bal bana eae aru en wee 1581 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) 2 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. 3 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 ae 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: I 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) 5 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 6 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. 7 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. IV 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. V. 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 8 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% ). 9 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. VI 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: 10 (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); (c) In or about November 1955, representatives of King 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: 11 (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 12 cent (80%) by the purchase, in or about June 1955, of all the outstanding stock of International ; (c) Defendant Hearst promoted, encouraged and assisted 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. 13 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. 14 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. — 15 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) 17 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 18 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. 19 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, By 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. 21 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: 22 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? 23 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 24 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? 25 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? 26 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. 27 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 28 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 20 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? 31 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. 32 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? 33 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 34 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. 35 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? 36 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. 37 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. 38 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. 39 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. 40 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. 41 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? 42 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. 43 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 44 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? 45 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. 46 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- 47 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 48 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. 49 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 50 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 51 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. 52 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 53 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. 54 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 55 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 56 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. 57 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? 58 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. 59 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 60 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. 61 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? 62 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 [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386413_0288%3A1. Public record. Not legal advice.