# Appendix — United States v. General Dynamics Corp.

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386414_0099%3A05

## Record

- **Collection:** Supreme Court brief
- **Document type:** Appendix
- **Published:** January 1, 1974
- **Citation:** 415 U.S. 486

## Text

APPENDIX ater
EXHIBITS (Pages 481-920) wicwars nopax, sn

Seneca

Supreme Court of the United States

OcTOBER TERM, 1978

No. 72-402

UNITED STATES OF AMERICA, __

: Appellant
Vv.

GENERAL DYNAMICS CORPORATION, THE UNITED

ELecTRiC CoaL COMPANIES, and FREEMAN
CoaL MINING CoRPORATION

ON APPEAL FROM THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS

Supreme Court of the United States “

OcTOBER TERM, 1973

No. 72-402

UNITED STATES OF AMERICA,
Appellant

fe

ON APPEAL FROM THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS

INDEX

dicinmssinin Exhibits:

‘GX 1— Annual Report of General Dynamics Corporation
Gx 2— Aneel Repent @f Gaiuial pain Gay see
Gx 9— Amamel Bapect of Giiasal Spaecaies Gapanien
Gx +— Amen Rigi kt Gniacal Siccaiis Sica
Gx 6 Annu Report of General Dymamica Corporation
Gx € Kunal Rega ot Gamatal injeaaia Gaga
i 1965

Gx

Working Capital and Net Assets or Stockholders
Equity 1940 to 1967”

ii

Gx
Gx

Gx
Gx

Gx

Gx

Gx
Gx
Gx
Gx
Gx
Gx
Gx
Gx
Gx

Gx

INDEX

Government Exhibits :—Continued
GX 25— Chart entitled “The United Electric Coal Com-

panies Net Sales, Earnings Before Income Taxes,
Net Earnings, and Net Earnings as a Percentage
of Net Sales 1940 to 1968" _.. ==
26— Standard & Poor’s Industry Surveys— “Coal,”
April 28, 1966, Section 2, Basic Analysis _..._.__.
27— Letter dated March 26, 1968 from Reuben L.
Hedlund to John T. Cusack re Dividends De-
clared and Paid by UEC during the period Janu-
ary 1, 1950 to December 31, 1967 =
29— Standard Industrial Classification Manual 1967 _
31— Chart entitled “The Consumption of Fuel by
Steam-Electric Plants in the Eastern Interior
Province Sales Area for the Years 1960-1967”_.
32— Chart entitled “Consumption of Fuel (Shown in
Millions of BTU’s) by Portland Cement Plants
in Illinois in 1967” and Chart entitled “Consump-
tion of Fuel by Portland Cement Plants in
Eastern Interior Coal Province Sales Area in
1967”
34— Financial Statements: The United Electrical
Coal Companies; Year Ended December 831,
1968
35— City, Water, Light & Power (Springfield) letter to
Department of Justice dated March 21, 1968 __
86— Illinois Power Company letter to Department of
Justice dated March 21, 1968 ____ es
87— Dairyland Power Cooperative letter to Department
of Justice dated April 28, 1968 _
39— Corn Products Company letter to Department of
Justice dated May 24, 1968 _..... =
41— Union Carbide Corporation letter to Department
of Justice dated August 2, 1968
43— Dundee Smith Company letter to Department of
Justice dated August 22, 1968

S1— Chart entitled “Coal Shipments to Illinois, Desti-
nations by District of Origin, 1965 to 1967” ___.
wa. Guact extbticd “Veer Wades of Coal ta tha Bosions
Interior Coal Province Sales Area by Coal Pro-
ducers Located in Illinois, Indiana and W:
Kentucky” Ras Saves
54— Freeman Coal Mining Corporation; Shipments
of Coal in Tons from the Crown Mine to Customer

Page

INDEX

Government Exhibits :—Continued

Gx

Gx

Gx

Gx

Gx

Gx

Gx

Gx

56— Freeman Coal Mining Corporation; Shipments of
Coal in Tons from the Orient No. 4 Mine to Cus-
tomer Destinations, 1967

57— Freeman Coal Mining Corporation; Shipments of
Coal in Tons from the Orient No. 5 Mine to Cus-
tomer Destinations, 1967 —..._______..

58— The United Electric Coal Companies; Shipments
of Coal in Tons from the Banner Mine to Cus-
tomer Destinations, 1967

59— The United Electric Coal Companies; Shipments
of Coal in Tons from the Cuba-Buckhart Mines to
Customer Destinations, 1967

60— The United Electric Coal Companies; Shipments
of Coal in Tons from the Fidelity Mine to Cus-
tomer Destinations, 1967 ______-___-_____-_-__

61— Chart entitled “Total Coal Consumption in Tons
in 1967 by Steam Electric Plants in the Eastern
Interior Coal Province Sales Area and the Total
Sales of Coal in Tons in 1967 from Mines located
in the Eastern Interior Coal Province to Steam
Electric Plants in the Eastern Interior Coal Prov-
ince Sales Area”

62— Chart entitled “Production of Coal in Illinois by
the Leading Companies and Their Subsidiaries for
the 1957 Calendar Year” __

68— Chart entitled “Production of Coal in Illinois by
the Leading Companies and Their Subsidiaries
for the 1958 Caleadar Year”

64— Chart entitled “Production of Coal in Illinois by
the Leading Companies and Their Subsidiaries
for the 1959 Calendar Year” >=

65— Chart entitled “Production of Coal in Illinois by
the Leading Companies and Their Subsidiaries
for the 1960 Calendar Year”

66— Chart entitled “Production of Coal in Illinois by
the Leading Companies and Their Subsidiaries for
the 1961 Calendar Year” _.

67— Chart entitled “Production of Coal in Illinois by
the Leading Companies and Their Subsidiaries for
the 1962 Calendar Year”... -- —___. ioe

68— Chart entitled “Production of Coal in ‘Tilinois by
the Leading Companies and Their Subsidiaries
for the 1968 Calendar Year”

69— Chart entitled “Production of Coal in Illinois by
the Leading Companies and Their Subsidiaries
for the 1964 Calendar Year” _..__________» ___-__

70— Chart entitled “Production of Coal in Illinois by
the Leading Companies and Their Subsidiaries
for the 1965 Calendar Year”

Page

79

81

iv

INDEX

Government Exhibits :—Continued

Gx

Gx

Gx

Gx

Gx

Gx

Gx

Gx

Gx

Gx

71— Chart entitled “Production of Coal in Illinois by
the Leading Companies and Their Subsidiaries for
the 1966 Calendar Year”

72— Chart entitled “Production of Coal in Illinois by
the Leading Companies and Their Subsidiaries
for the 1967 Calendar Year”

73— Chart entitled “Production of Coal in Illinois by
the Top Two, the Top Four, and the Top Ten
Producers, 1957-1967, and their Percentage of
Total Production for These Years”

74— Chart entitled “Sales of Coal in Illinois by the

Leading Companies and Their Subsidiaries in 1967
(From Mines Located in Eastern Interior Coal
Province)”

75— Chart entitled “Production of Coal in Illinois,
Indiana, and Western Kentucky by the Leading
Companies and Their Subsidiaries in Calendar

' Year 1957”

T7— Chart entitled “Production of Coal in Illinois,
Indiana, and Western Kentucky by the Leading
Companies and Their Subsidiaries in Calendar
Year 1959”

85— Chart entitled “Production of Coal in Illinois,
Indiana, and Western Kentucky by the Leading
Companies and Their Subsidiaries in Calendar
Year 1967”

86— Chart entitled “Production of Coal in Illinois,
Indiana, and Western Kentucky, 1957-1967” __

87— Chart entitled “Acquisitions in the Eastern In-
terior Coal Province since 1954”

88— Chart entitled “Common Known Customers of
The United Electric Coal Companies and Free-
man Coal Mining Corporation Showing Destina-
tion Points 1965”

89— Chart entitled “Common Known Customers of The
United Electric Coal Companies and Freeman
Coal Mining Corporation Showing Destination
Points 1966”

90— Chart entitled “Common Known Customers of The

- United Electric Coal Companies and Freeman
Coal Mining Corporation Showing Destination
Points 1967” _.

91— Chart entitled “Per Cent of Sales of Each Com-
pany to Identical Customer Facilities by The
United Electric Coal Companies and Freeman Coal
Mining Corporation for the Year, 1965-1967”__.

98— Central Illinois Public Service Company letter
to Department of Justice dated October 28, 1966_

91

93

101

107

111

114

117
118

“. INDEX

Government Exhibits :—Continued

GX 94— Illinois Power Company letter to Department of
Justice dated October 17, 1966

CR, hs Ct pe ad Ge tek
to Department of Justice dated October 20, 1966_

Gx 135— March 26, 1970 Petition of Commonwealth Edison
to form subsidiary

GX 200— United Electric Coal Companies, Board of Di-
rectors Minutes—1959

GX 201— United Coal Companies, Board of Di-
rectors Minu 1960

GX 210— Testimony of Jack Simon before Illinois Com-

Commission

merce
GX 219— Keystone Coal Buyers Manual 1967
GX 232— Article entitled “The Energy Outlook”, by Gerber
and Netschert, entered in the IEEE Spectrum,
June 1969
GX 233— Speech by J. Cordell Moore entitled “The Future
' Role of Fossil Fuels in Electric Power Genera-
tion,” at the American Power Conference luncheon
in 1968
GX 239— Article entitled “New Horizons for Coal—the
Comeback Industry”, by Robert E. Lee Hall,
printed in The Commercial and Financial Chron-
icle, dated March 7, 1968
GX 247— Article entitled “Natural Gas Fiasco”, printed in
Barron’s, October 13, 1969
GX 253— Article entitled “Nuclear Power ” 1968-
1969 Report by Philip Sporn to Joint’ Con-
gressional Committee on Atomic’ Energy, re-
printed in CCH {| 3043 ‘

Defense Exhibits:

DX 1— October 9, 1957 memorandum from Frank Kolbe
to R. J. Hepburn re punch mining

DX 2— October 18, 1957 letter from J. M. Morris to
Frank Kolbe re Northern States Power Company,
Displacing gas with coal

DX 3— June 19, 1958 letter from A. J. Christiansen to
A. H. Truax with three page attachment...

DX 4~— July 1, 1958 letter from J. M. Morris to Frank
Nugent

DX 5— July 11, 1958 letter from R. J. Hepburn to Frank
Kolbe with two page attachment

Dx 6— August 4, 1958 letter from “President” to Mr.
’ Justin Potter —

DX 7— November 21, 1958 Wall Street Journal article
“General Dynamics Seeks To Acquire Chicago

Building Firm”

144

167

194

210

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“>

INDEX

Defense Exhibits :—Continued

DX 32— September 12, 1966 letter from J. Morris to
Frank Nugent

DX 383— October 18, 1966 memorandum between R. H. In-
man and T. H. Latimer

DX 34— July 31, 1967 letter from Jack A. Simon to
Frank Nugent

DX 35— September 31, 1968 four-page coal contract be-
tween UEC and Central Illinois Light Co...
DX / 86— September 5, 1969 letter from John Welsh, Cater-
pillar Tractor Co., to Reuben Hedlund re coal

DX 37— September 12, 1969 letter from John T. Cusack

DX S88— 1965 Annual Report Zeigler: Coke Company
DX 39— 1966 Annual Report Zeigler: Coke Company
DX 40— 1967 Annual Report Zeigler: Coke Company ____
DX 41— 1968 Annual Report Zeigler: Coke Company

DX 42— Report to shareholders, three months ended March

Dx 43— Report to shareholders, six months ended June

DX 44— Report to shareholders, nine months ended Sep-
30, Company

DX 45— Statement by Assistant Attorney General Richard

Imports, August 8, 1969
DX 46— The Answers of Plaintiff to Interrogatories of De-
fendants 1(a)-1(g), 1(j), 6-8, 18-15, 17, 18, 20,
21, 23, 26, 27, 30, 37, 44-46, 50, 51 and 54.
DX 47— May 29, 1969 letter from John T. Cusack to

Dx 48— December 15, 1954 letter by George P. Pon
ene. Nee, Danan Gas Gaga
Coal Company to its stockholders .
DX 49a— Subpoena Questionnaire form and related court
orders

DX 49— Producer data exhibits, mine characteristics
DX 50— Producer data exhibits, comparison of leading
producers___

DX 651— Producer data exhibits, coal characteristics by
producing districts

DX 652— Producer data exhibits, overburden of strip mines

DX 53— Consumer data exhibits, boiler specifications

Dx 54— Consumer data exhibits, types of sales by produc-

ing districts i
DX 65— Consumer data exhibit, analysis of consumption

Mi 2 § BES Bsa es geese Fa

INDEX

(HURGTHE Ht Ht ]
a aoe

:
i ends
hi Ui Hi a ilk iH lists
i pm iuieeieye
fon Ag SRRASHRwY a

A

Dx

Dx

82— Plaintiff’s proposed of fact 5a, 5b, 6b(2),
5d(4) and 5e(8), Uatted bone Vv. Standard Oil
(New Jersey et al.), Civ. No. 954-64,

D. N.J. (1964)
83— Plaintiff's memorandum
Prep ngs of fact.and conclusions of x
J dal). ie tae ee rae
ersey, » Civ. No. «RE
84— j in United States y. P Coal
Company et al., Civ, No. 67 C 1621 (N.D. Ill.

nagh to Security Analysts
98— Commonwealth Edison: Profile of No. 1, Nucle-
onics Week, April 4, 11, 18 a
94— 1968 Annual Report of Commonwealth Edison _
96— “Edison Seek A-site Downstate,” Chicago Daily
News, March 9, 1970
96— Advertisement entitled “Nuclear Power for Chi-
cago,” Chicago Daily News, March 13, ant
97— Advertisement entitled “Commonwealth Edison
on Chicago's Air Pollution Problem,”
Chicago Sun Times, July 11, 1969
98— Advertisement entitled “Commonwealth Edison
Reports on Progress Toward Cleaner Air,” Chi-
cago Sun Times, August 27, 1969 a ss
99— Advertisement entitled “No Smoke. No Dirt.
No Fumes,” Chicago Tribune, February 8, 1970_

:

°

617

& &

~~
2 ¢

2 88 3888 8% #

910

Defense Exhibits:—Continued
DX 100— Advertisement entitled “You're Looking at 20,000
Tons of ‘Coal’,” Chicago
DX 101— “Coal Strip ~ oft agen Peak?” by
gest a
Hubert E. Risser, Illinois
(September 18, 1968)

Session (1962) :
DX 103— Comparison of Coal-Fired and Nuclear Power
Plants for the TVA System, June, 1966
DX 104— Letter of October 17, 1962 from Elmer Hill to

DX 111— Letters of February 19 and 22, 1968 from Rich-
ard P. Ryan, General Counsel, Humble Oil and
Refining Company to John T. ee se

1H
HE
:
a
|

DX 14— statement of The United Electric Coal
954, 1955, 1956, 1957, 1958, 1959,

960
DX 116— Nuclear Power Briefing For The Coal Industry,

(i

DX 136— entitled “Caution: Commonwealth
Edison is Hazardous to your Health”, Chicago

ow 6g eeeeelil ensiae

DX 137— entitled “Before everyone runs out

1041

INDEX

Defense Exhibits :—Continued

DX 144— Map entitled “Investor-Owned Electric Utility
Service Areas”
DX 145— Map re rae “Service Area, Dairyland Power

Cooperati
DX 146— 1966 Annual Report, Union Electric Company __
DX 147~— 1967 Annual Report, Union Electric Company ___
Dx 148— 1968 Annual Report, Union Electric Company _
DX 149— 1968 Annual Report, Northern States Power Com-

DX 151— Article entitled Dirty Air—A Grow-
Peril,” Chicago Sun Times, October 19, 1967_
DX 152— Article entitled “Antipollution, Antitrust Bills
June ag 8 bY Gov. Opilvie,” Chicago Sun Times,

une

DX 158— Article entitled “Crackdown on Air Pollution”
Chicago Sun Times, July 14, 1969

DX 157— Article entitled “Mikva Bill Would Make Air
, Pollution A Federal Offense,” Chicago Sun Times,

DX 159— Article entitled “ ‘Black Diamond’ Boom: Kleen-
burn Coal Mines Enjoy Demand Surge,” The Wall
Street Journal, January 7, 1970
DX 160— Article entitled “Business agp ee —
Background Report On Trends ustry
Finance,” The Wall Street Journal, March 19,
970

1
DX 161— Letter entitled “The News That Nobody Prints,”
Mid-West Coal Producers Institute, Inc.
DX 162— Article entitled “New Ruckus On Foreign-Oil
Imports To Pin Nixon Between Pollution Issue,
Coal Groups,” The Wall Street Journal, March
5, 1970

1187

1138
1139

1141

xii INDEX
Defense Exhibits :—Continued —

Dx 164— Article entitled “The Real Meaning Of Alaskan
Oi Finds,” U.S. News & World Report, March 8,
1

DX 165— Article entitled “Petroleum Firms At

Is Slated In 1975,”

The Wall Street Journal, December 15, 1967 ___

DX 172— Article entitled “Jersey Standard Joins List Of
Companies To Make N’ To

1143

1153

1154

1155

1156

1157

Defense Exhibits :—Continued

Dx 176— Article entitled “FPC Aide Again Approves Con
Edison Bid To Build Power Project; Protests
rixely" ‘The Wall Street Journal, August 7,

DX 177— Article entitled “TVA Plans To Start $155 Million
Project At Raccoon Mountain—Plan Will Include

pacity OF 14 Milde Rotana ee oe

DX 179— Article entitled “Earth’s Own Power Source,”
Chicago Daily News, January 9, 1969
DX 180— Article entitled “Burning Refuse To Be Used
In ‘Total Energy’ Concept,” The Wall Street
Journal, June 28, 1969
DX 181— Excerpt from transcript of Hearings before the
Joint Committee on Atomic Energy, 99th Con-

DX 182— Article entitled “New England Affiliation Slated
—Utiilty Concerns Plan Affiliation,” New York

DX 183— Article entitled “Boards of Iowa P&L And Iowa-
Illinois G&E Approve Merger Plan—New Entity,
Towa Energy Corp., Plans To Retire The 2 Utili-
ties’ Outstanding Preferred Shares,” The Wall
Street Journal, July 22, 1969

DX 184— Article entitled “Ayrshire Collieries Asks Bids of
5 Firms—Coal Concern Invites Offers To Pur-
chase Or Merge With It; Replies Expected Next
Month,” The Wall Street Journal, November 27,
1968

DX 185— Article entitled “Ashland Oil Plans To Buy Or
Lease Ayrshire Assets—Boards Vote Proposal
That Includes The Sale Of Coal Royalties To
Third Firm—Pact Involves $125 Million,” The
Wall Street Journal, January 22,1969.

DX 186— Article entitled “Metal Climax, Ayrshire Sign
Merger Accord—Acquisition Of Coal Producer
By Metals Firm Valued At Minimum Of $62.6
Million—Boards And Holders To Vote,” The Wail
Street Journal, April 24, 1969

1158

1159
1160
1161

1162

1168

1164

1165

1166

1167

1168

Defense Exhibits :—Continued

DX 187— Advertisement entitled “Air Pollution Authorities
Urge Use Of Natural Gas—
Today, More and More Own-

DX 188— Advertisement entitled “1977 The Year Our City
” Philadelphia , December 4, 1967_

i Ine.
DX 1 Advertisement entitled “How Nuclear Science
May Give America More Gas Energy.” American
Gas Association, Inc.
DX 194— Advertisement entitled “Boiler Conversion?”—
“Get The 5 Advantages Gas Power-Type Burners
Give You In Full Measure.”—“Midco Converts
An Apartment And The Service Staff Is Cut By
2/8.” American Gas Association, Inc.
DX 195— Advertisement entitled “Who Offers You 24-Hour
Plant Site Location Service On The 60-Mile Illi-
nois Shore? Peoples Gas, Of Course.” The Peoples
Gas Light And Coke Company And North Shore
Gas Company
DX 196— Advertisement entitled “The Not-So-Brief Case
For Complete Chicagoland Plant Site Informa-
tion,” The Peoples Gas Light And Coke Company
And North Shore Gas Company...
DX 197— Advertisement entitled “The Perfect Salt Substi-
tute,” American Natural Gas Company
DX 198— Advertisement entitled “St. Louis’ Tallest Office
Building Will Be Total Energy All The Way,”
The Wall Street Journal, May 18,1969
DX 199— Advertisement entitled “The Savings And Loan
That Saves With Natural Gas,” American Gas
Association, Inc.
DX 200— Advertisement entitled “Natural Gas Energy .. .
The Electrifier—Pretty Soon You May Be Making
Your Own Electricity From Natural Gas.”____

_ 1176

1177

1178

1179

1180

1181

1182

INDEX

Defense Exhibits :—Continued

DX 201— Advertisement entitled “What Do You Call It?
No Matter What You Call It There’s A Lot More
Coming From Natural Gas Energy—There’s A

Engines
- Cooling and Hesting-” Amer.

Energy This High School Needs Elec-
Y (res ag ee
ear,”

DX 208— itled “Williams Buys

Conditioning
Like A Car That’s Better Than Good.” Northern
Tlinois Gas Company =

Pair . . . By Charmgiow.” peelibit-cathsccl-daesdh.. dees ok
DX 212— Advertisement entitled “Now.

1187

1188

Inc... 1189

1190

1191

1192

, 1194

1196

1197

1198

1199

en entitled “Here’s The Story Of The
Gas Fuel Cell. It’s Electrifying.” American Gas
Association, Inc. ___ ldo 1201

DX 215— “Nuclear team-Generation of Electricity: Its .

1968,” Chicago Daily News, December 18, 1968__ 1228
DX 219— Letter dated March 9, 1970 from V. H. Clark,
-Treasurer, Electric Energy, Inc., to
Reuben L. Hedlund 1224
DX 220— Letter dated June 29, 1942 from Frank F. Kolbe
to B. L. Slack 1225
DX 221— Letter dated July 23, 1954 from Frank F. Kolbe
to Herman G. Schenck 1226
DX 222— Letter dated June 11, 1956 from Frank F. Kolbe 3
to Nye F. Morehouse ee 1227
DX 223— Brochure entitled “Taum Sauk, Union Electric’s
Pumped—Storage Hydro Plant.” 1228
DX 224— Press release, University of Chicago, January 19,
1970

man to R. J. Hepburn re Freeman analysis of
Kerr Mine 1236
DX 228— Excerpts from the Minutes of the Board of Di-
rectors of The United Electric Coal Companies
of September, 1966, pages 4886-4889. ===ssss«éd ggg
DX 229— Form 250 Response to the Court-Ordered Sub-
poena Questionnaire for the Freeman Coal Mining

Corporation aa
DX 2380— April 13, 1970 letter from Mr. Allen Van Wyck,
Chairman of the Board of Illinois Power Company,
to Donald G. Kempf, Jr. - 1244
DX 231— April 14, 1970 letter from K. E. Bowen, President
of Central Illinois Public Service Company, to
Donald G. Kempf, Jr. 1245
DX 282— Brochure entitled “Low Cost Electric Power and
Dependability ... Through MAPP” «3:24
DX 288— Brochure entitled “Mid-America Interpoo] Net-
work—MAIN”

sig

xviii INDEX

Deposition Exhibits: is

Abrahamson Deposition Exhibit 1—Front Cover of 1967
Annual Report of Wisconsin Power & Light Company__
Deposition Exhibit 1A—Back page of 1967

Annual Report of Wisconsin Power & Light Company_.
Beck Deposition Exhibit 1—Letter to Antitrust Division,
Department of Justice, Chicago, Illinois, from C. V.
Beck dated November 14, 1968
Brazzale Deposition Exhibit 1—Document entitled “Heat-
ing Fuel Economic Analysis” for the Federal Office
Building and United States Courthouse, Chicago,

Illinois
Burton Deposition Exhibit 1—Document entitled “Solicita-
tion, Offer, and Award Contract GS-05S-4945” issued
August 1, 1967
Camicia Deposition Exhibit 1—Keystone’s Map of the Coal
Fields of the United States _
Gallagher Deposition Exhibit 3—Mineral Industry Surveys,
Bituminous Coal and Lignite Distribution, Calendar
Year 1967
Griswold Deposition Exhibit 3—Report of the Secretary of
Health, Education, and Welfare to the Congress of the
United States entitled “Air Pollution by Federal Facili-
ties” and dated January 1968
Griswold Deposition Exhibit 4—Second Report of the Secre-
tary of Health, Education, and Welfare to the United
States Congress entitled “Air Pollutioii Abatement by
Federal Facilities” and dated January 1969... =
Griswold Deposition Exhibit 5—Document entitled “Oper-
ating Experience with Wet-Dolomite Scrubbing” by
J. F. McLaughlin, Executive Assistant, Union Electric
Co., St. Louis, Missouri, and J. Jonakin, Products Man-
ager, Air Pollution Control Systems, Combustion Engi-
neering, Inc., Windsor, Connecticut, presented at the Air
Pollution Control Association Annual Meeting in New
York City on June 22-26, 1969
Jensen Deposition Exhibit 12—Memorandum from Burl C.
Jensen to Mr. R. H. Inman dated June 7, 1965... s—
Jensen Deposition Exhibit 183—Memorandum from D. H.
Emling and B. C. Jensen to Mr. R. H. Inman dated June
. 7, 1966
Kolbe Deposition Exhibit 2—Annual Report of The United
Electric Coal Companies 1956
Kolbe Deposition Exhibit 4—Annual Report of The United
Electric Coal Companies 1958
Kolbe Deposition Exhibit 7—Annual Report of The United
Electric Coal Companies 1961
Kolbe Deposition Exhibit 12—Letter to Mr. W. B. Hillery,
unsigned, by the President dated February 27, 1957 ___.

Page

1409
1410

1411

1412

1413
1415

1416

1456

1470

1502
1519

Kolbe Deposition Exhibit 57—Annual Report of The United
Electric Coal Companies 1954

tween Alcoa and UEC dated September 5, 1956
Kolbe Deposition Exhibit A—Comparison between Truax-
Traer Coal Company and The United Electric Coal Com.
panies

Ibe Deposition Exhibit E—Notebook entitled “Report on

j Proposed Merged Illinois Operations, Truax-Traer Coal
Company, January, 1956” of Theron G. Gerow, Mining

Kolbe Deposition Exhibit L—Letter dated September 12,
1960 from J. M. Morris to Mr. Frank Nugent

ton, Delaware, & corporation of Delaware”

Kolbe Deposition Exhibit W-1—Letter from Frank Kolbe to
Harry LaViers dated February 25, 1958.

BREE Fy

1541
1542
1545
1547
1548
1549

1562
1565

1571
1587
1628

1629
1631

1634

1637
1639

xx INDEX
Deposition Exhibits :—Continued

mer to R. J. Hepburn dated November 7, 1955
Kurtz Deposition Exhibit 8—Steam-Electric
1968 Edition

E
ij

1964

Latimer from T.
Latimer to Mr. R. H. Inman dated July 19, 1966 ___

Latimer Exhibit 48—Memorandum from T. H.
Latimer to Mr. R. J. Hepburn dated February 10, 1961_

Maguire Exhibit 1—General Proxy
Statement and Plan of Merger with
respect to Material Service Corporation dated November
24, 1959

Maguire Deposition 35—Excerpt from the Minutes of

Deposition

17, 1959 from R. J. Hepburn to Mr. J. M. Morris...
Morris Deposition Exhibit 4—Letter from Mr. John M.
Morris to Mr. Frank Nugent dated January 10, 1966 __
Morris Deposition Exhibit 5—Letter from J. M. Morris to
Mr. Frank Nugent dated March 14, 1966
Morris Deposition Exhibit 14—Letter dated May 8, 1965
from J. M. Morris to Mr. Frank Nugent _..
Morris Deposition Exhibit 31—Memorandum from R. J. Hep-
burn to Mr. J. M. Morris dated January 24, 1961
Morris Deposition Exhibit 82—Memorandum from R. J.
Hepburn to Mr. T. J. Tarzy and Mr. J. M. Morris dated
1960

February 24, ¥
Morris Deposition Exhibit 85—-Memorandum from R. J. Hep-
burn to Mr. J. M. Morris dated July 17, 1962...

1666

1669

1676
1678
1680
1682
1683
1686

1688
1689

ee

ae

fil:

i
Hilt.

Fidel

ill

xxii INDEX

Deposition Exhibits >—Continued

Nugent Deposition Exhiibt 7—Financial Reports: Freeman
AS Sieg Cepeeetion; Year Ended December 31,

Nugent Deposition Exhibit 8—Financial Reports: Freeman
Coal Mining Corpecation: Year Ended December 31,
Nugent Deposition Exhibit 9—Financial Reports: Freeman
Se Capen: Year Ended December 31,
Nugent Deposition Exhibit 11—Annual Report of the Chi-
Ja Teapinston and Franklin Coal Company for the
ear
Nugent Deposition Exhibit 16—Advertisement of Freeman
Lt Mining Corporation in 1967 Keystone Coal Buyers

Nugent Deposition Exhibit 17—Advertisement of The United
Electric Coal Companies in the 1967 Keystone Coal
Buyers Manual

Nugent Deposition Exhibit 19—Advertisement of The United
Electric Coal Companies in the 1968 Keystone Coal
Buyers Manual

Nugent Deposition Exhibit 20—Advertisement of The United

Electric Coal Companies in February 1968 issue of The

Black Diamond
Nugent Deposition Exhibit 22—Letter dated February 13,
1968 from Reuben L. Hedlund to T. Cusack re
Dividends Paid to MSC, GD on the Stock of
UEC, January 1, 1959 to December 27, 1967...
Nugent Deposition Exhibit 29—Annual Report of The United
Electric Coal Companies 1964
Nugent Deposition Exhibit 35—Invitation for Tenders of
Common Stock of The United Electric Coal Companies
by General Dynamics Corporation dated October 5, 1966_
Nugent Deposition Exhibit 38—Map entitled “Shipping Coal
Mines In Illinois” prepared by Jack A. Simon, State of
Illinois, Department of Registration and Education,
State Geological Survey, dated January 1, 1966.
Nugent Deposition Exhibit 89—Letter from Tom Tarzy to
Frank Nugent dated December 11, 1964 and Chart Show-
ing Midwestern Coal Consumption by Utility Plants,
1963

Electric Coal Companies eeting
held October 28, 1960 re Capital Appropriation for UEC.
Nugent Deposition Exhibit A—Letter from Frank Kolbe to
Henry Crown dated October 9, 1956

1772

1774
1776

1786

1793

1794

1796

1797

§

INDEX

Deposition Exhibits :—Continued

Pedersen Deposition Exhibit 5—United Electric Coal Com-
panies Computation of Provision for Federal Income
Taxes, Month of October 1966 and Ten Months Ended
October 31, 1966

Redard Deposition Exhibit 1—Keystone Steel and Wire Com-
Poe ter te Department of Justice dated April 26,

Simon Deposition Exhibit 1—Simon, J.A., An Evaluation of
Illinois Coal Reserve Estimates, 1968

Dynamics,
et al., Memorandum of Expected Testimony of Peter O.
Steiner, Professor of Economics and Law, University of
Michigan dated August 14, 1969
Terleke Deposition Exhibit 2—Mid-West Coal Producers
Institute, Inc. Report of Mine Performance, 1957-1958__
Terleke Deposition Exhibit 11—Mid-West Coal Producers
Institute, Inc. Report of Mine Performance, 1966-1967__
Weir Deposition Exhibit 1—Shipping Coal Mines (Map),
Weir Deposition Exhibit Memorandum from R. H. In-
man to Mr. R. J. H dated August 5, 1959...
Weir Deposition Exhibit 19—Brochure entitled “Paul Weir
Company” ;

1841

1847

2.

Table G - 1F

ANALYSIS OF SALES TO ELECTRIC UTILITIES OF COAL
PRODUCED IN FULTON-PEORIA PREIGHT DISTRICT
SSSED IN FULTON-PEORIA FI RATE DISTRICT

Utility Pacilities Located in Pulton-Peoria Sales Area

Company Facility City County State
Illinois > Havana Havana Mason Illinois
Hennepin Hennepin Putnam Illinois
CILCO Edwards Bartonville Peoria Illinois
Liberty Peoria Peoria Illinois
Wallace E. Peoria Tazewell Illinois
CIPS Meredosia Meredosia Morgan Tllinois
Coal on by Utils Facilities Located in Pulton-Peoria s Area
Tons Consumed % of Total
Sos. Consumption

Pulton-Peoria Production Consumed
by Utilities in Sales Area 1984 808

Consumption of Coal Produced in
Other Frieght Rate Distric in
Mining “tee 9, 10 « 123

ev

le 493 20%
West Kentucky mt 494 ot 20%
TOTAL CONSUMPTION BY
UTILITIES IN SALES
AREA . 2478 1008
Fulton-Peoria Production Sold to Utilities
en Sold to Utilities
: Tons Produced % of Total
(000) Production
Sold to Utilities in Sales Area 1984 348
Sold to Commonwealth Edison 3794 65%
Sold to Other Utilities __28 it
TOTAL PRODUCTION SOLD TO UTILITIES
BY MINES IN FULTON-PEORIA FRT. DIST. 5806 100%

Source: Government Questionnaire

2/ Excludes shipment: of 92,000 tons of dust from Crown Mine in Springfiela
District to Meredosia facility c° “TPS. See CIPS Porm 150 (Meredosia),
Subpoena Qvestionnaire.

Table G - 2F

ANALYSIS OF SALES TO NON-UTILITY FACILITIES OF COAL
PRODUCED IN THE FULTON-PEORIA FREIGHT RATE DISTRICT

1. Destinations in Fulton-Peoria Sales Area

City County State
Abingdon Knox Illinois
Aledo Mercer Illinois
Alexis Warren Illinois |
Altona Knox Illinois |
Atkinson Henry Illinois |
Bartonville Peoria Illinois
Beardstown Cass Illinois
Bishop Hill Henry Illinois
Bushnell -. McDonough Tllinois
Cambridge . Henry Illinois
Canton Outagamie Wisconsin
Knowles Dodge
Manitowoc 2 Manitowoc Wisconsin
Marinette Marinette Wisconsin
Marshfield Wood Wisconsin
Merrill Lincoln Wisconsin
Milwaukee Milwaukee Wisconsin
Mosinee Marathon Wisconsin
Nekoosa Wood Wisconsin
Oak Creek Milwaukee Wisconsin
Owen Clark Wisconsin
Pt. Edwards Wood Wisconsin
Racine Racine Wisconsin
Rhinelander ‘ Oneida Wisconsin
Rothschild Marathon ee
Sheboygan Sheboygan Wisconsin
South Milwaukee Milwaukee q Wisconsin
Stevens Point Portage Wisconsin
Stratford Marathon Wisconsin
Thorpe Clark Wisconsin
Tomahawk Lincoln Wisconsin
Waupun Dodge Wisconsin
Wausau Marathon 2 Wisconsin
West Allis Mi lwaukee Wisconsin
Weyauwega Waupaca Wisconsin
Winne Winnebago Wisconsin
Wisconsin Dam Lincoln Wisconsin
Wisconsin Rapids Wood Wisconsin
Gladstone Delta Michigan
Marguette Marquette Michigan
Menominee Menominee Michigan
Ontonagon Ontonagon Michigan
Albert Lea Freeborn Minnesota

Austin Mower Minnesota

ER nan te son gene re om easton = ee

500
Table G - 2S0
(Cont'd)
City County State
Blue Earth Pairbault Minnesota
Fairmont Martin Minnesota
Hayward Freeborn Minnesota
Windom Cottonwood Minnesota
Worthington Nobles Minnesota
Campbell Dunklin Missouri
Chaffee Scott Missouri
Dolly Siding St. Francois Missouri
Jackson Cape Girardeau Missouri
Kirksville Adair Missouri
Ste. Genevieve Missouri
Morehouse -New Madrid Missouri
Poplar Bluff Butler Missouri
S. Troy - Lincoln Missouri
Trenton Grundy Missouri
Louisiana - Pike Missouri
Clarksville Pike Missouri
Hannibal : Marion Missouri
Ste. Genevieve Ste. Genevieve Missouri
Cape Girardeau Cape Girardeau Missouri
Paducah [Chiles} McCracken Kentucky
goa) Consunptich by Non-Utility Pacilities Located in Southern Sales
Tons Consumed % of Total
(000) Consumption
Southern Production Consumed by
Non-Utilities in Sales Area 2739 69%
Consumption of Coal Produced in
Other Preight Rate Districts
in Mining Districts 9, 10 & ll
Pulton Peoria 47 1%
Belleville 86 2%
Mineral-Atkinson 57 1%
West Kentucky 635 16%
Indiana 400 1225 10% 30%

TOTAL CONSUMPTION BY NON- |
UTILITIES IN SALES AREA 3964 100%2/

501

3. Southern Production Sold to Non-Utilities

Tons Produced % of Total
| __(900) Production
Sold to Non-Utilities in Sales Area 2739 440

Sold to Greater Chicago Air Quality 1738 288
Control Region
Sold to Other Non-Utilities 1802 29%

TOTAL, PRODUCTION SOLD TO NON-
UTILITIES FROM MINES IN
SOUTHERN FREIGHT DISTRICT 6279 100%

i/ Excluding sales of 1,931,092 tons of metallurgical coal from the Orient
mines of Freeman, the Sahara mines of Sahara, Old Ben mine No. 21 and
Zeigler mine No. 4.

2/ The apparent discrepancy between actual sum of the subtotals above and

the total above is due to rounding. Each figure has been rounded to
the nearest one percent.

Source: Government Questionnaire

oa ne ee

Table G - 3s0

RECAPITULATION OF SALES OF
IN THE

COAL P.
SOUTHERN (ILLINOIS) FREIGHT RATE DISTRICT
1. Coal Consumption by All Facilities in Southern Illinois Sales Area

Tons Consumed % of Total

(000) Consumption
Southern Production Consumed by
All Pacilities in Sales Area . 9971 52%
Consumption of Coal Produced in
Other Freight Rate Districts
in Mining Districts 9, 10 & 11
Bellevillel/ 705 4a
Pulton-Peoria 47 *
Mineral-Atkinson 587 33%
Murdock 91 *
West Kentucky2/ 6966 36%
Indiana 728 9124 _4% . 478

TOTAL CONSUMPTION OF COAL
BY PACILITIES IN SALES
AREA 19095 100%3/

Southern Production -Sold to All Pacilities$/

Sold to Facilities in Sales Area

Sold to Commonwealth Edison 120 1%

Sold to Chicago Air Quality 1738 11%

Control Region

Sold to Other PacilitiesS/ 3555 23%
TOTAL Ts3e¢ Too

Includes (1) 213,000 tons (3%) from the Pidelity Mine of United Electric
to the Shawnee plant of TVA in Paducah, Kentucky, shipped under a Preeman
contract. In response to Porm 150 of the Subpoena Questionnaire, TVA
received no other Belleville Freight District coal. In response to the
Government questionnaire, no other Belleville producer reported sales to

(Ai Yeon also, Nugent Dep. Tr. p. 235. (2) Also includes 132,000 tons
(2%)
W

the Pidelity mine of United Electric to the Weston plant of
i in Power & Light in Green Bay, Wisconsin shipped under a Freeman
contract. See also Morrison Dep. Tr. p. 18.

2/ Included within West Kentucky total is a one-third allocation [185, 805.90)

of the 557,417.70 tons shipped in 1967 from Tab-Badgett Lakeview Mine to
"T.V.A.'s Widow Creek, Gallatin, and Shawnee Plants." In the absence of
any evidence to the contrary, one-third of the aggregate tonnage has been
attributed as the portion shipped to the Shawnee Plant in the Southern
Utility Sales Area. *

The apparent discrepancy between actual sum of the subtotals above and
the total above is due to rounding. Each figure has been rounded to the
nearest one percent.

Excluding sales of 1,931,092 tons of metallurgical coal from the Orient
mines of Freeman, the Sahara mines of Sahara, Old Ben mine No. 21 and
Zeigler Mine No. 4. :

5/ Excludes 1,171,337 tons of dust from various mines to Belleville sales
area utilities. See Footnote 2, Table G-1B.

Coal Consumption by Facilities Located in Chicago Air Quality Control

% of Total
Consumption

248
148

lf The Metropolitan Chicago Interstate Air Quality Control Region, as
Gesignated 42 C.F.R. §81.14 (33 F. R. 17176, Nov. 20, 1968), consists
of Lake, McHenry, Cook, Du » Kane and Will Counties in Illinois
and Lake and Porter Counties Indiana. Tonnage to Commonwealth
Edison facilities has not been included.

2/ The apparent discrepancy between actual sum of the subtotals above
and the total above is due to rounding. Each figure has been
rounded to the nearest one percent.

Source: Government Questionnaire

~-----=---= FREIGHT RATE DISTRICT --~~.~.....

Fulton- '
Peoria spesamesone Belleville Southern
PRODUCTION P TON PRODUCTION

Other* TOTAL
PRODUCTION CONSUMPTION
Ses 5 Jone Ree 8.

53% 28,388 45%

9,497 158
17,619 28%

7,361 12,
62,865 100%

1008 19383

313,38 a fs SS _ 6
9517 2008 100% 19883 100% 15384 53,773 200%

Single Freight
Rate District

ive 37% 29%
Source: Tables G-l1F, 2P; G-1S, 2S; G-1B, G-150, 2s0
* From other Freight Rate Districts in mi » Districts 9, 10 and 11.

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THE UNITED ELECTRIC COAL COMPANIES Dx 60
COAL RESERVE DATA

(A) SMOARY

UEC COAL RESERV®S AS OF
____DECEMBER 31, 1969

CUBA, Fulton County, Illinois (Strip) 1,206,260
FIDELITY, Perry County, Illinois (Strip) 18,365,390
BUCKHEART AND NORTH *« Pulton 27,379,963
County, Illinois (Strip)
sgt Fulton ee Peoria Counties, 5,081,691
Illinois (Strip iy
52,033, 50t

UNDEVELOPED OR ISOLATED RESERVES

Illinois Strip Reserves

Industry Field Strip Reserves j " 12,550,457
(McDonough County, Illinois)
Miscellaneous Illinois Strip Reserves 2,059,552
Out-of-State Strip Reserves
Oklahoma Strip Reserves 2,301,872
Colorado Strip Reserves " 12,522,000
é ’ ’
Fidelity Mine Deep Reserves 5,347,246
Round Prairie Field Deep Reserves 44,251,574
(Perry and Washington Counties, I11.)
Vermillion County, Illinois Deep’ 1,795,360
Reserves . ;
; 51,354,180
Total Illinois Reserves 118,037,493
Total All Reserves 132,861, 365

* Source: The United Electric Coal Companies Lands and Reserve Coal
and Depletion Schedule as of December 31, 1969.

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ae “ar a a a a re a 2 ae

6961 ~ @S61 sadumsmu (€)

6,719.92 1,6, 180 :

ee mM > BALIOWE - ‘TOR
61498 + emj20081 mer KT wor wmourtyo ‘Azenep 9601407
éy209 says0001 coo'res’st = ont ue opmseyen ‘hvenen rae]y - preTs wephon
65296 + onj20001 ours «= Gee oerese PVOWT TIL ‘Aounen Aaseg ~ plots StAeD or
41495 © saq2001 290" v9 er°cot 0"ov! VENT TTT ‘Avunen woatng - joodsenyy 2002 o
6y298 + eap20001 Usv'Ose'et «ot one’G «= sae’ OVORTITE ‘SepRURED seyhnyeg 9 “Pnowcgen ~ pIeTs Aasenpel
| sw ee ee VENT ITE ‘Aawnen dering - PLOT, wore qasen meu
~ geeome'on = orreet’s «= owen OuLMIM + BALIOV + ‘Twaee
% 43496 + Super ~ Sasaey weer wot wer OVOWTTLL ‘eopeERED e]A0E4 | WONTRG = seuErE ~ it ‘on OUTH “
6961 « peneyéuen = sapnewe ' 1s'o1 OVOUT ITE ‘AouneD wOTTTFERE, - Ssoem Lam - G2 ‘on OUTH TH
45296 ~ Sepemn « eapaey ee ee act's SVORTTIT ‘Avene SentRg = SanequENG YIneE ~ (1 *On OUTH “9 Ct ‘et ‘tt .
4y206 ~ Soyer ~ sataey ' co'cee’s tc*see"t wrt OVONTTTE *Apuneg wentng » SAneNRONG qasem = CT ‘om OuTH 19 or
65298 + Sepern « eapaey tos‘ove “aw aren't : OVOUT TTT ‘demon Aaaeg = Attensa = PIOTA WoOTTD
41298 + Sopot + eepaey sov'ooe’it as*tot’s =k 10"T peer tit ‘Aawneg danny ~ Aapyepsd + 11 “on OoTH
45208 + Sepern + sasaey ie «urs OVONNTTE ‘Aaeneg wontng ~ Sar + 6 “on OWN
——— var

corr
= a “Te yen § mE

SPOUTTTL ‘Ayumod worTpMseA = B200K Are - $2 on ou

SVOUTTTL ‘AyunOd UORTRA ~ G2¥eURONE WENOE ~ LT “on ouTH 9 ar ‘tr
STOURTTL ‘AyuMOD UORTRA + GaveUHONE HEION ~ LT ‘on ouTH Tt Yor
SPOUTTTI ‘Ayunod Leased ~ Ayrreptd = preté YouTTD
SHOUTTTT ‘Myuned Lazed ~ Lyrrepyd ~ Tr “on out L9's'9

y 42M ~ GRLVIOEL + SALLoval + TV102
ee ee of
SVOUTTTI ‘Ayuned weTTTEIeA ~ Mys9d014 eyounK

STOUTTTI ‘oopyuned eoySupwown 9 Lised = protd eTsTesd punoy

a —FIOMTTLL "SOpuUNeD GOTIUTUSMA © Ala = PISid oisfead PON
De eee
SrouTTIT *Ayuned Asse + Latteptd « Tr ok ourk

att

me |

:
7
ii
EAE
saa
if

Le°Lee

Biman

109.00
0.00
_ a]
59.00
10,090.58 8,95). 4B, 229,680
- RAR Tay

OO ite! 26 ren earcte

TL‘ 992 aro oorogr’t

ES x rs Fo

Grane - eapyovul ser 06° tus ooron0"t

0n6* ges" tt sirigt’s teesrr’tr

Ound - Peyyoedeesd - maTseY rar Fm TeT
Gyan - Buyvoedsesd - sayy ign’ ose’ tt orgen’e os"oLe’®
C1218 - Puyvosdeosd - sareoy out Or aze ws

Sue ~ Suypeedonad ~ sanyey wees‘ eer ger’e iaeay'*

’ x sei'ceses = mwromt’s tH Ugeee

“ht > he - a war TRF Tw
A = Depew ~ comer Tas’ oe ern “rs

+ GUNS + Sepeml ~ soney Seo’ Siz"@ ser age*t SL°omn's

CMe + Sep ~ senor onesie «= sos rer’s 2s Cat's

re ~ SoH = comer ooa' tod on OK"

Cue ~ Seem ~ seer 7K nt'n wr ele’e SS°9RT OT

unt ~ Sept ~ samen gor’ ort wu or me's

a es, |

1

a

990 ‘92’ 50 OO°TLN' TY 9a’ teg’ Le gmaesysu dTalg - TVLOL arvic
‘ Als mitmots = at'on9 avon — _— '
STS “Wt Os “wot yee: 1. "ined PrOTd qaeounord
" wt y eons - we qanes

OVONTTTT ‘Ayano kasog = Ayrrepys = tr *on oupy
Ayom, wor ‘Aywmed euprcoll = 1z *on cory

Cs‘ exz tes Sreet «= Sawogein ‘hymn cup.ded = ROD OIF © OT *CS CT

TSE“gu9’ oz Grure ss ztofor CPUTITT “Symes wor = yaverpexs = ft es mT!
os" t26"t wre Pet eyouptt *Ayeues Lat + VICI - PTORE YOrTED
Gin" gah lz Cormree or oe’ OPOTTTI ‘Ayrasy Ara0g = Averorrd © Tr °ed Coys

097°622"s ester orse's SHOBETE *Aymoy weaTHd = LYBO = 6 “OL CHR

T96T ‘IS ATNF JO SV
TVOO ZAUGSAY F SANVI
SAINVdMOO ‘TVOO OLULOGTA GALINN AHL

MINE _NO. 9

Mined Out

Estimated Adjustment
Yield Loss

New Lands

Net Change

MINE NO. 11

Mined Out
Estimate Change

eeeeereoeoeoeeeeeeeeeeeee

eeeeerereereeeeeeeeeeee
eeeereee eee eeeeeeeeeee

eereeeeeeeereeee eee eeee

eeerereeeeeeeeeeeee

Yield Gain, Present Pit Ory ee ae ee

New Lands
Net Change

cLIncy PIT.

Mined Out
Yield Gain
Estimated Adjustment

Net Change

MINE NO. 17 (SOUTH)

Mined Out

Estimated Adjustment
Yield Gein

New Leases

Net Change

Ceeeersesbeeeesece

SPeeeCeeGeeeeeeeeeeeeee

eeereeeeeeeeeoeeeeeeee

.
ePeeeeeeeeeeeeeeeeeeee

Cee eeeereeeeeeeeenee?Ed
Seer eeeeeeeeeseeeeeese

(805 , 608)
(91, 200)
(55,538)

ak

(944,619)

_ (1,146,041)

(460,046)
111,7%4

2,059,337
564,984

(687,909)
*29,585
17,741

(640,583)

(957,832)
— 22.023.
(928,809)

(1, 304,530)
508 , 356
142,638

(653,536)

MINE NO. 27

Mined Out
Estimated Adjustment
Yield Loss

Net Change

COP eeeeeeeeeee
nd hee ee

£685,932)
(262,976)

(975,000)

MINE_NO. 9

Mined Out

Estimated Adjustment
Yield Loss

New Lands

Estimated Change
Yield Change

Net Change

MINE NO, 12

Mined Out

Estimated Adjustment
Yield Gain

New Lands

Net Change

Mined Out -
Estimated Adjustment
Yield Gain

Net Change

MINE _NO._17_ (SOUTH)

Mined Out .
Estimated Adjustment
Yield Gein

New Leases

Net Change

eeeeeeeeeeeeeseeeeeee
eeeeeeeeeeeeeeeeeeeee
eeeeeeeeeeeeeeeeeeeee
oeeeeeeeeeeeeeeeeeeee
Prrrrrrrrrrrrrrr rir)

eeeeeeeeeeeeeeeeeeeee

‘
eeeeseeeeeeeeeeeeeeee

eeeeeeeeeeeeeeeeeeeee

eeeereeeeereeeeeeeteaee
eeereeeeeseeeeeeeeeee
eeeeteeeeeeeeeeeeeeee

eeeeeeeeeeeeeeeeeeeee

(738,055).
( 7,919)
( 28,084)
287,505

(744,849)
(337,373)

(1,568,775)

(1,709,357)
( 91,624)
$7,522
55 348,816.

(1,394,644)

(134,736)
{_3.88))
(140,617)
(872,715)
( 48,891)
—42,122.
(878,427)
(1,129,631)

372,330
74,487

( 446,427)

MINE NO. 27
Mined Out
Estimated Adjustment
Yield Loss

Net Change

547

eee eee eee ee ee eeee

(675,217)
( 56,411)
( 76,673)

(808 , 301)

548

Changes in Strip Reserve Tonnage During 1967

Mined Ouiteccccccccccccccecccececesesece Ca
Estimated AGJuStMERE. «+s eeeeeeeereecere

Yield LOSS ccccccccccccesesseceseseseese (2,294)
New LandSeccoscccesceececssesesssesesese 223,403

Net CHANFScccccccecesevssesesesesesese® (772,059)
nu .

mined Out .cecce ee eer eeeeen seeeeeerens eee (2,031,157).
Estimated Adjustment.... eeeecece cn scdes (29,010)
Yield GaiMecceccccceccessescesesesssese 104,590
New LANdSescccccececesecesesesseseseese 60,

Net CThangesceeceveccees seoccesesecceseee (1,895,373)

17 (North) a

Mined Dbeccecccccccerecessesseseseese® (987,301)
Estimated Adjustiment..ecccessccecccecce (20,895)
Yield Gains cccccecccecescesesesesesesee 15,024
Lease Expired (Floyd Shelby et al)..... (53,635)

War Chemgessccrccccccccccccccccccececee (2,086,807)

17 (South)

Mimed Out. ccccccccccccsccesesesseseses (916,633)
Estimated Adjustment... cscecsececeseves 71,608
Yield GeiMecccceccccccccseresesessesese 6b , 91s

Net Changeececccccecsesecseeessssessses (780,115)

27

Mined Dube cccccccesecececssesesseseseee (834,021
Estimated Adjustment....cccececeecccvce (42,839
Yield LOSS cee ecccccesseeesecsseesseseee 132,307

Net Change...ccccecesceserescecesecesse (1,009,167)

BUFFALO CREEK NO. 2

Reserves on January l, WH racecccceces 1 MEF
In Process of being SOld...sssseeesseee 1,166,570

. - ¥

MEMO: Changes in Deep Reserve Tonnage During 1967

BUFFALO CREEK NO. 2

Reserves on January 1, 1967.... 3,223,378
In Process of being SOld..crcce (3,223,379

ROUND PRAIRIE FIELD

Estimate Adjustment...... eocese (164,226)
New Bam eccccccccccegHesevcets 869,406

Net CNANGCs oe ceececsccecccesece 705,180

ROUND PRAIRIE FIELD (Isolated).)\

Estimate Adjus‘*ment.. ini eeeee (100,180)
Net CHANBSccccecccceccccecsecce (100,180)

550

MEMO: Changes in Strip Reserve Tonnage During 1966

MINE NO. 9

Mined Outecccvcccccccccccsesesssesceses (931,826)
Estimate Adjustment. accccccccesecsceces 23,971
Yield LosSeccccccccccccccsssesesessesse®
New LamdSeccccccccecescccssesessses see
Net Changeccccccceccscessesessssorsses®

MINE WO. 11

Mined Qut.cccccccccsccececcssssessesees ‘(2,080,251
Estimate Adjustment. .cccceccecessessccs (647,252
Yield Gainmeccecccccessesesescesescceses 94.5 347
Hew LandSeccccccecccescesessesesseseseee 1,351,2h5

Net Changecccccccceceseses eeeveeeeeseoe® (1,281,920)

MINE NO. 17 (Worth)

Mined Oubcccccccceccccecscsssoseossoess (2,033,621)
Estimate Adjustments. ccccccsccecccseccs ry

Yield Gaineccccccccccscesecsssssossese® 97,609
Net CHANGSccocccecccccoc see cooocooscors (1,595,175)

MINE WO. 17 (South)

New TANdSccccccccescccesecesesessesseee

Met Changeccccceccccesssovessessssoses®

MINE NO. 27

Mined Date ccccccccccccesesesescsosereee
Yield LOSScceccceccesesesssssesesseseee

Net Changes.ccccccecccescssssesessssors
BUFFALO CREEK NO. 2 _

Tease ExpiLred..ccccccececsccesesscseses

Net Changececcccccccsecsccvessosesseseoe:

551

MEMO: Changes in Deep Reserve Tonnage During 1966

BUFFALO CREEK NO. 2

Lease Not Renewed..cecccccvecccccccsece (205,479)
Net GHOMEOc cc ccccccecccccvccccocecccese (105,479)

MDs

MINS XO. 9

XB XO. 11

552

Sa ee 8 é doce? ~ 1
Chovntes fa $oriM Reserve Tommags Daring 1965

stancd CnrVececccceccenecvesersosssesreeee (840,705)

Rakin n ss oo ee en deme ae oe

Sstexcss S Mu isveo ees eeeeeseeseeeee eee ?
Viiold LOSS eececceseecesseesseseseseseeee (66,549)

new Lice cccccccescccccccecssceseserese 4,113, +

Not CHANGWeccecccccvcvscesevessecs eesece 3,261,691

‘Hined Bic cucixwceecnees ractieeerensasec (2,825,255)
Sstinave AGFUTCACAGs ec cccecccecececccere (591,629)
Yiole LOSS cccccecreseseesesesersesssesere (285,576)
Xew LNCS oceccccccsccscsesessesessessees 9,278

Xet Changossccecccecccccccccccvcsccecccs (2,693,182)

- XE MO. 17 (mores)

yinsd CEdecccccccccccccesceseseseceseres (1,992,089)
Ssti=ate AGJUSTRIWTVe ccc ccerccccccscccece (251,908)
vicle Gainecscceccosccccccessccssseseees 152,293
yew LiMASecccccccsesesscssssesesesssese® 355,407

Yow ThaNZSecrcceccccessescessecsesssesese (1,736,297)

XIKS NO. 17 (South)

MIKE NO. 25

Bae LamBorccccecccsccccccccccccoscooese 1,775,350
Net ChanZececcccccosesccscsesessesssese® 1,775,380

Mincd eis. 5 22h ——

MINE NO. 17 (North)

Mined Oubeccccccccccccscncccecesceveceses tye
Estimate Adjustment. ceccccccevccvecseccece

Yield Gainececcccccvccvccscccsssseseseese ’
New LandBesescecccccccccceeseseessesesees J

122
Net Changers ocsvccscceqgcecescesesvveceecs (819,847)

MINE NO. 25
Mined Outecccceces eeceesceeeeeee Seeeeeeeeee !
. Estimate Adjustment..cccccccveccccscceces
Net Chang@ceccccccccccscccsevecsesessesees

MINE NO. 27

Mined Oubeccccescscvccccccveceseecessesese
Yield TOSBeccccccesvecesccscsevesesseeses®
New TANS a ccccccccccccscececercessceesece r

Net Changeccccrvecccccccceseesescesesesed (75,060)

ao
=
&
—

x38 E
388 §

|

————————— _ ——

Changes in Deep Reserve from § to 12

ROUND PRAIRIE FIELD

sheet Bills sisecbesisevecccedocdccecdocsce 232,320
Net Changecesscccssececseseccvsssssvssenes 232,320

ed

555
MEMOt Changes in Strip Reserve Tonnage During Fiscal Year 1964

Mined Qutcccccccccccccccccccscecsesscceces (840,871)
Yield TLOBSeccccdccccscececccscesesecesses 23,569
Estimate Adjustmenteccccccccccecccsccscce Bee

Measurement Adjustmentececccccccccccccvcs
NOW LamdSeccecccccccccceccccccecccccesese ie —

Reactivated Reservesecccccccccccccsecceses 35h 000
Net Changers rcecceccccccsccccsecccsevece C 71 )
MINE WO. 11 :
Mined Outbeccece cocccececce seeseeeeeeeeesee (2,892,040
33,098

sp Yisld LeSSeccccccctoccccccccccccceccccece >
Estimate Adjustment. cos cceccccccccccccces (67,591
40,774

Measurement Adjustment.cccccccccscccccece
NOW Landsccceccccccccescccccesssceeceseee 1,403,971 —

Net Changdceccocescccccccccccccccccccccecs C1547, 984)

MINE WO. 17 (worth)

Mined GiMinitis vane dnassncllooneacnacnacatiiiie (2,848,95u)
Yield GaiNecceccccecces eeeeeeecee seseeceeeee@ 98,212
Estimate AdJustmanteccccccccceccssccssece 207, 5h4
New LandSecccccccccccccvecccccccecessesss 59k, 766 gr

* Wet ChANGSec cc cccccececcccccecscscosecceece (948,432)

MINE NO. 17 (South)

NOW LandBeccecccccccsccccesccccccecccsese 1,113,200 ——
Met Changeec ccc cccccescccccccscescscsesccsses 1,113,200

Wet Change Mine #17 worth & South (28668

MINE NO. 25

Mined Oubeccccccccccccsccccescccccecccces (263,937
Estimate Adjustmentececccsccccccccccecece 7 {2 240k

000 ——

New TANS cece geccccccccccosccscceccccecs 16
Net Changeeee. Seeceececeseseeseseseeeseseseese “ (250, 341) )

556

Changes in Strip Reserve Tonnage (cont ta)

MINE NO. 27
Mined Oubeccccccceccceccccescscsccsesesese Lom
52,060) .

Yield LOBBSecccccccccccccesecccesseecesees®
Yield GCaineecscervece eeeeeeeeeceeeeseseseeeeee

NOW LamdScccccccccccccccecesecsecesesseeee 1 149,232 —

Net Change@ecescccevcccccessccescscscscsecsel( 386,771 )
NORTH CANTON FIELD

NeW TandSeccccccccscsccsvccsesecssssseses® 996 600 —

INDUSTRY FIELD :

ee ne oe eapneeadpens tke 600 000
Net CHANZSseeecccccccccerccccsccssssescece 300,000

a

oranges in Deep Resorve Tonnages During Fiscal year 196k

ROUND PRAIRIE FIELD

NOW LandSeccccccccccccccesesesccccsssceees 13,293,082
Net Changeccscccccccccvescccsecccsscsecsseses 13,293,081

sty 557

MEMO: Changes in Strip Reserve Tonnage During Fiscal year 1963

MINE NO. 9

Mined. seocccsveccccevccccsscccsscvcccs ’

Yheld Losseccsccces cocccccccescccccoes
Yield GOINsrccccsecccesvocersscccccces

Net GUNG one 6¢ casks ced Sid céeceedicdd

- MINE WO, 11

Wi iivsctaticnntissccnscsvuscecsial
New BAN k sb cede tcccciscscecccecedése
Yield WROG hs ci docks ped docccnsenseceses

: Yield Gl Mecccccccccccccccccccecsscees

Estimate Adjus
Adjustment in Measurementecccccccccccce .

Net Changeccocccccccccecccccccccccs see

MINE NO. 17 (North)

a

Tine eb siccecdossiccecsccsncdecses
New TandBecccccccccccccccccccccescocce
Yield GEEMedcccccccccccccccccceéeccese
Estimate Adjustment. o.cccccccccccccces

Net Changes ccccevccsccccecs eeocccoesece

MINE NO. 17 (South) ... f
; 4

_MINE NO. 27

Now Lands..ccceces Ce srecececccscoccoes
Net GREMNBOe co cccccccccccccccceceseooce

Net Change Mine #17 North & South

Minedeecccccccecccccece Seeeeesoeseseeee

Yield TOSS eccccccccscccecccscsescesece
Net CHANZCc ce cevcessscccccceccccccsece

,

Mintdeccccccccccccccescccececcccccccce
New TANS ce cccccccccccccscccccceccceoce
* yield TABS ccccccccsccvccccccsccccccecs
Estimate Adjustment oo. -secccccsccesee

Net CHANGSececccccesecsesecseveccceces

558

{
\

Changes in Strip Reserve Tonnage Cont'd

"NORTH CANTON FIELD

.

New LANES. ce cccccccccccccccccccecccece 4,761,855
960

Estimate Adjustmenteescccccccssecsccecce

Net Chang@ccccccccccccccccccccecsesscce 4,831,815

INDUSTRY FIBID

NeW Lands. cccccccccccccccescsececesceos

Net Changeeccccccccccccccccccccscccseces

251,4h0
p24
251,440

—

565,

LEW: Choy28 in Ceop Roserve Tomuge faveine, Piccel Year 2959

BUFFALO CROEKX BING ,J2.--+-~-- -
Leas2 Bx lvad------=- + eee ae eens owe weet eros: mEs EE? wEe-eewee 391 2459
Estdaate Correstion---- .

T2b CHA {0—wner reenter ee eni eee 207,312

MINS g2)
— Transirorced fron sino #19 a Ret erve-~—»»— 1 101, 324

SOU PRAXRIE FISD
ou Lamdis-«- 20,962, 3h2

SALE FORK FIELD ;
eu Lanis- 691,152

NEMO: Changes in Reserve Tonnage During Fiscal year 3956

we 2 snod-——= ~ TIL =6ES
Estimate Correction . 207
eS See

RINE WO. 22 2

Quit claim $ acres to Sacred Heart
Catholie Church--
union Colliery Purchass b,h76 bib
Re-estimate of adjacent property to

the Union Collieries purchase-~--~-~- os 1,323,322 :

an nwnnenen= 59755626

Estimate Correction
Yield Loss
New Lands~

Net Change-
MINE WO. 19

Transferred frea doop reserves ins #21
Yield Gain

Net Change
KINE WO. 25

Estimate Correction
Yield Loss-

Het Change

GLASFORD-BANNER FIELD
“flew Lands

BUFFALO CREEK
New

MINE £21

567

Changes in Reserve Tonnage (Cont'd)

LEASE TO UNION COLLEERY (Inactive Peep)
Ieasa discontinued = Included in Mine gil
trip Reserves 883,08)
DEEP COAL RESERVES - i083 NO, 11 ; :
daicn Colliery Purchase- ~-~-5,11,180

DEEP COAL RESERVE ~ BUFFALO CREEK 2 (Inactive peep)

New Lands only, 37 1,209

) POSSIBLE ACQUISITIONS

THE UNITED ELECTRIC COAL COMPANIES
Possible Acquisitions

Mine #9 _
Fulton County, Illinois

Possible - Possible
Acres Coal Acres ' Tons " Remarks

———_

inge Tracts 308 50 300,000 Acquisition
Doubtful.

in Islands

—_—-——

300,000

and is bounded by the Ci of
6 coals on the west and south,
companies.

569

THE UNITED ELECTRIC COAL COMPANIES
Possible Acquisitions
Pidelity - Mine #11
Perry County, Illinois

Northwest Field

Walker
Fringe Tracts
Total

Kathleen or Southwest Area

Harsha 160,000

80,000
500,000
300,000
1,040,000

Mine was started in 1929. Land acquisition in 1926, and only hard to
buy reserves remain. Mine is bounded on the north mined out ground,
on the east by Du Quoin and old works, south by old works and cropline
of No. 6 coal, on the west by cropline and cutout several miles wide,
west of which the coal has been removed. As far as is known there is
= — coal in the No. 6 or any other vein, deep or strip, that can

THE UNITED ELECTRIC COAL COMPANIES
Possible Acquisitions “
Buckheart - Mine #17
Fulton County, Illinois

4

Possible Possible
Coal Acres Tons Remarks

500,000 In Estate -
Cannot Buy at
Present ‘
500,000
1,000,000

Extremely doubt-
ful

The mine has operated since 1937. Bounded om the north by old works,
unminable coal and cutout of coal, on the east by the cropl of
No. 5 coal, south by old works and end of coal field, on the
west by large cutout and cropline of No. 5 coal. .

671

THE UNITED ELECTRIC COAL COMPANIES
Possible Acquisitions
Banner - Mine #27
Peoria & Fulton Counties, Illinois

Possible Possible
Coal Acres Tons Remarks

30 100,000 Not drilled,

Mine No. 27 lies in the-river bottom and is surrounded by natural
boundaries. North by a range of hills containing little coal
recoverable by stripping or underground mining, east a narrow
river bottom and levee, south by the Illinois River west by

Rice Lake. 462 acres north and northeast of the field has been
drilled and dropped. ;

*sXel[Tea ut ¢ *ON ZO
ZunOwe [Tews e sn{d ‘pezeseuTTep useeq sey yoTymM jo TTe
Atteotzoead ‘TeoD 9 “ON OF PSITWIT ST PIeTA *pezoedxe
eae ‘Aue jt ‘S®AreSeX TeUCTATppe JO suoR 900‘00S

uey3 ssetT 3nq ‘esutT{tdoz> ey3 BbutuTofpe suzez [er9Ae8
Ilt2p pue uotado Aew om ‘peuedo st pretz eu ueyp

uojueD 43I0N
suotitstnboy etqtssog
SZINVdWOD TIWOD DINLOATA GALINN AHL

OL/T/E

- seozy e6uyt3zd

THE UNITED ELECTRIC COAL COMPANIES

573

Possible Reserve Acquisitions at Existing Mines

3/1/70.

Reserves
Dec. 31, 1969
1,206,260

27,379,963

5,081,691

18,365,390

52,033,304

Potential Acquisitions
Tons of Coal
March 1, 1970

300,000

1,500,000

100,000

1,790,000

3,690,000

574

11. Explanation of Above Table
A. Cuba Mine #9 - Fulton County, Illinois

Possible | Possible
Name Acres Coal Acres Tons Remarks

Fringe Tracts 308 300,000 Acquisition
Doubtful. Coal
in Islands.

Total 308 $0 300,000

ee

This mine has operated over 40 years, and is bounded by the City of
Cuba, outcrop of the No. 5 and No. 6 coals on the west and south,
north and east by old works of other companies.

B. Buckheart Mine #17 - Fulton County, Illinois

Possible Possible
Coal Acres Tons Remarks

‘ In Estate. Cannot
75 500,000 Buy at Present.

Extremely doubt-
80 $00,000 ful.

155 1,000,000

The mine has operated ‘since 1937. Bounded on the north by old works,
unminable coal and cutout of coal, on the east by the cropline of
No. 5 coal, south by old works and end of coal field, and on the
west by large cutout and cropline of No. 5 coal.

North Canton.

Pringe Areas - When the field is opened, we may option and drill
several farms adjoining the cropline, but less than
500,000 tons of additional reserves, if any, are
ted. Pield is limited to No. 6 coal, practically
all of which has been delineated, plus a small amount
of No. 5 in valleys.

575

Banner Mine #27 - Peoria & Pulton Counties, Illinois

Possible Possible
Acres Coal Acres Tons R ks

———-

30 30 100,000 Not drilled.

30 30 100,000

Mine No. 27 lies in the river bottom and is surrounded by natural
boundaries. North by a range of hills containing little coal
recoverable by stripping or underground mining, east by a narrow
river bottom and levee, south by the Illinois River and west by

Rice Lake. 462 acres north and northeast of the field has been
drilled and dropped.

576

D. Pidelity Mine #11 - Perry County, Illinois

Possible Possible
Name Acres Coal Acres Tons Remarks
Northwest Field
: Less than
Walker 120 60 500,000 Negotiating
Fringe Tracts - = 250,000 Negotiating
Total 120 60 Less than
750,000
Kathleen or Southwest Area
Harsha . 40 20 160,000 Cannot Acquire
to Date
Eisenhauer 20 10 80,000 Negotiating
“ &
Sutter 80 60 500,000 Negotiating
Pringe Tracts - - 300,000 Negotiating
Total 140 90 1,040,000

Mine was started in 1929. Land acquisition in 1926, and only hard to
buy reserves remain. Mine is bounded on the north by mined out ground,
on the east by Du Quoin and old works, south by old works and cropline
of No. 6 coal, on the west by cropline and cutout several miles wide,
west of which the coal has been removed. As far as is known there is
no — coal in the No. 6 or any other vein, deep or strip, that can
be added.

3/1/70

Source:

Cae 2 Sane }

Company

Peabody Coal Company

Humble Oil Company

Island Creek Coal Company
Consolidation Coal Company

Old Ben Coal Corporation
Ayrshire Collieries Corp.

Bell & Zoller Coal Company
Freeman Coal Mining Corp.
Pittsburg & Midway Coal Mining Co.
Southwestern Illinois Coal Corp.
The United Electric Coal Companies
Sahara Coal Company, Inc.

Morris Brothers Company

Venedy Coal Company, Inc.
Webster County Coal Corp.

Green Coal Compa

Gibraltar Coal Corporation
Rialto Coal Company, Inc.

Pyro Mining Company ~

Black Tam Mining Company
Kirkpatrick Mining Company

Blue Bird Coal Company

R. S. & K. Coal Corporation
Russell Badgett, Jr. Coal Co.
Weirs Creek Company
Wright Coal Conipany
Belle Valley Coal Company, Inc.
Burge Coal Company, Inc.
V-Day Coal Company
Sherwood-Templeton Coal Co., Inc.
Harrisburg Coal Company
Barbara Kay Coal, Inc.
Parton Coal Company, Inc.
Decola Coal Company
Weskol Mining Company
B B Mining Company
Houston Coal Company

TOTAL

* Source:

Form 250, Subpoena Questionnaire

3,

3,250,000, 000*

1,

of 5,000 tons

Kennecott Copper Corporation, and stipulated testimco>y
of George H. Shipley.

** Less than .01 percent.

Tons.
780,898,842

162,878,000
$63,640,000
796,000,000
767,168,071
550,000,000
483,687,408
278,205,000
170,800,000
121,851,616
90,000,000
32,000,000
27,300,000
25,000,000
20,000,000
19,091,904
13,200,000
6,500,000
6,000,000
5,116,000
2,792,500

. 2,000,000
1,200,000
1,200,000
1,140,000
1,097,712
550,000

Percentagc
of Total
Tons Shown

30.05%
25.83
9.24
7.66
6.33
6.10
4.37
3.84
2.21
1.36
97
272
25
22

Letter of February 19, 1968 from Humble Oil &
Refining Company to Department of Justice a assumed |

recovery acre. See also Respondent’
Exhibit No. 184 A-F received in evidence in Federal
Trade Commission Docket 8765, in the matter of

~ a*

TYPES OP COAL RESERVES EELD BY LISTED COMPANIES* IN

ILLINOIS, INDIANA AND WESTERN KENTUCKY - 1968

Dedicated to Other
Existing Mines Reserves Total
Strip 1,140,661,140 646,062,584 1, 786,723,724
‘Deep 1,132,526,758 6,412,353,571 7,544,880, 329
~~ 2,273,187,898 7,058,416,155 9,331,604,053

# See Defendants" Exhibit . ‘Tonnages for Hamble Oil
Company {(3,250,000,000) not included.

.
«

SOURCE: Form 250, Subpoena Questionnaire.

REFERENCE: Report of Paul Weir Company, Weir Deposition
Exhibit 2, pp. 23-24.

WISCONSIN ELECTRIC POWER COMPANY

MILWAUKEE, WISCONSIN $3201

- May 21, 1968

Chicago, Illinois

Re: United States v. General cs
. Corporation et al., Civil Action
No. 67 c 1632 (N.D. Tl.)
60-0-37-920

Dear Mr. Cusack:

This is in reply to your letter of April 9 addressed to
Mr. C. F. John requesting information in regard to the above
referenced civil action.

The information requested in paragraphs 1 and 2 of your
letter is detailed in Tables I and II attached. All coal

This coal was consumed approximately from mid-April of
year in which it was delivered to mid-April of the follow-
year. Coal purchased for use at our lakeside Power Plant

same years was consumed during the calendar year in
which it was purchased. The footnotes of Tables I and II
he variance in the period coal was purchased and

In response to your paragraph 3, during the referenced.

581

Mr. John T, Cusack - Page 2, oe: 5/21/1968,

when supplying 230,000 Ibs. per hour of steam for our heating
utility. The footnotes to Table III explain the seasonal
usage of gas and oil and the portion of each used for steam
production at this plant.

In response to pa ph 4, no facilities were available
for generating Slnoteieity by nuclear energy through the years
1964 through 1967.

Facilities for generating electricity from other sources
&s requested in paragraph 5 are limited to hydroelectric and
diesel plants of Wisconsin Michigan Power » & wholly
owned subsidiary of Wisconsin Electric Power . The
information which you requested regarding these facilities
is given in Table Iv attached.

Data in response to paragraph 6 of your letter are not
available.

You will note from the several documents attached that
the majority of our coal is derived from mines in Illinois
and western Kentucky. We believe that the acquisition by
General Dynamics Corporation of the United Electric Coal
Companies made it sible for the latter companies to have
available financial resources for the development of mining
properties and to increase the availability of coal sources
from these regions.

a You may wish to correct your records to indicate that
Mr. C, F. John retired as Vice President in Charge of Power
on December 31, 1965.

_. Very truly yours,

582
DEFENDANT'S EXHIBIT 67

COST FOR GAS FUEL VS. COAL FUEL
FOR PEKIN BOILER HOUSE

During 1967, natural gas was used in the plant for
various process uses while coal was used exclusively in
the boiler house.

- To determine the effect of burning all gas in the boiler
house instead of coal, data from monthly boiler efficiency
calculations was taken. The total heat required in coal
fuel during grind and no grind periods and the average
boiler efficiency was tabulated. This heat was converted
into equivalent gas heat on the basis of gas boilers
operating at 83% efficiency.

The increased amount of gas used on the boilers is all
used at the lowest contract rate. There is no separate
demand charge for gas, any demand rate consideration
is included in the contract rates.

The following data summarizes the above calculations
for each month during 1967.

Cost of gas fuel for boilers to supply an
i amount of heat as from coal for

grind, and no grind) $2,036,800 per year
Actual cost of coal burned in boiler house
during year 1967 (grind and no grind) $1,191,909 per year

house on gas instead of coal (based on
incremental gas rate, grind and no grind) $ 844,891 per year

DEF 2/12/68

583
COMPANY LETTER
Moffet Technical Center
Argo, Illinois
February 13, 1968
TO: R. Meadowcroft
FROM: D. F. Franzen

SUBJECT: Gas Firing In Boiler Houses at Argo and
Pekin

The Purchasing Department and the Pekin Plant have
assured me, through their contacts with the gas com-
panies, that sufficient gas is available to convert the
steam generating facilities at Argo and Pekin from burn-
ing coal to gas.

The additional cost of fuel to operate the boiler houses
on gas instead of coal, based on incremental gas cost
and for the grind and no grind period of 1967 is

Argo, $984,000 per year
Pekin, $845,000 per year

DFF :pld

584
COMPANY LETTER

Moffet Technical Center
ra Argo, Illinois
February 23, 1968
TO: R. Meadowcroft
FROM: D. F. Franzen
FILE: Air Pollution

SUBJECT: All Gas Firing for Boilers, Argo and Pekin

In my letter of February 23 on this subject, I should
have included the additional expense of about $50,000 per
boiler for combustion controls at both the Argo and
Pekin Plants.

fy

Total Cost of
Combustion Control
Pekin—Boilers “A”, “B”, and “C” at $50,000 $150,000
Argo—Boilers 1, 2, and 3 at $50,000 150,000

DFF:pld

585
COMPANY LETTER

eee ee Technical Center
Argo, Illinois
February 23, 1968
TO: R. Meadowcroft
FROM: _ D.F. Franzen
FILE: Air Pollution

SUBJECT: Gas Vs. Coal for Entire Pekin Boiler House

My letter to you, dated February 13, 1968, indicated the
additional cost that would have been entai:e:i for the year
1967, if the Pekin Plant had burned all gas instead of
coal was $845,000 per year.

Estimated operating savings which would be achieved if
all coal burning were eliminated are:

Labor-coal and ash handling $ 85,000 per year

Maintenance on coal unloading and conveying,
coal bunkers, scales, feeders, pulverizers,

stokers and ash handling equipment. 60,000

Power used by pulverizers, stokers and other

coal and ash handling equipment 38,000

Fly ash and cinder disposal 20,000

Sluice water for ash system 5,000

Total direct savings $208,000 per year
It may be necessary to install additional

dust facilities on each of

Boilers “A” and “B” and “C” if we were to

continue to burn coal. This total cost is

roughly estimated to cost about $650,000.

Potential operating savings by not having

to install this equipment based on 5%

maintenance and 5% depreciation is 65,000 per year

It should be noted that the above dust collecting facilities
will not eliminate SO, problems in the flue gas and at

586
some time in the future, additional expenditures may be
involved.

Additional intangible items resulting from all gas burning
instead of coal are:

1. The coal track could be used for other process re-
quirements such as hydro] or syrup systems.

2. Extended boiler life, less abrasion problems.

3. May be allowed extended periods between boiler

. inspections.

4. Reduction in mechanical stores items.

DFF :pld

587 G2 ae

THOMPSON, HINE AND FLORY

SStteeS= NATIONAL CITY BanK BUILDING
e CLEVELAND, OMIO 44114
ty ‘VELEPHONE 24: 1960 amen re

7 (CABLE ADOMERS THOMFLOR
* Parece ;
Srase = san
Toe! Plate August 15, 1968
cerns

Re: U. S. v. General » et al.
Civil Action No. ¢ 1632 (N.D. 11.)

Dear Mr. Cusack:

: ' I trust that
matters about which you made inquiry in your August 7 letter.

:

JFMcClatchey/rg
cc: Mr.» L. C. Strausbaugh

GENERAL PORTLAND CEMENT COMPANY

4400 REPUGLIC NATIONAL GANK TOWER, P.O. BOX 324. DALLAS, TEXAS 76221
Aves Code 214 742-1551

September 17, 1968

Ret United States v. General Dynamics
Corporation et al., Civil Action

The following information is subuitted as requested by Mr. Futterman by
phone. This is im Liew of questions submitted in « letter dated July 25,
1968 by Mr. John T. Cusak, Attorney, Midwest Office, Antitrust Division.

1. We do not purchase, nor have we purchased, any coal from mines
located in the state qf Illinois, This is true for two reasons.
First, the freight frgm Illinois mines to our plants in Paulding,
Ohio and Fredonia, Kansas makes the cost prohibitive; and secondly,

since it does not come from deep

about our policy relative to sul-
phur content and the methods for compensating for excessive sulphur.

in our purchases of coal because it

—

Mississipp! RiveR CORPORATION
BS0O CLAYTON ROAD

CLEON L. BURT Sr. Louis, Missour! 63124
‘WEE PREROERT- WL « Prone
September 29, 1969 aie
Mr. Hugo Sims

Department of Justice
Room 2634 United States Courthouse
Chicago, Illinois 60604

Re: United States v. General cs
ye

219 South Dearborn Street :
Chicago, Ilinois 60604 i

Re: United States v. General Dynamics
Corporation et al., Civil Action

In response to your letter dated April 15, 1968, this will advise
as follows:

1. Exhibit I attached hereto sets forth the net tons and dollar
value delivered of metallurgical coal and steam coal purchased from
firms supplying Inland Steel Company's East Chicago, Indiana, facility
in each of the years 1964 through 1967. Mine source of coal where
known is furnished.

Metallurgical coal is consumed in coke batteries for the pro-
duction of coke for the blast furnaces. Steam coal is used to fire boilers
for the production of steam.

2. Inland's East Chicago facility consumes certain other energy
fuels for the purpose or purposes for which coal is consumed. In addition
to steam coal, certain of the electric generating stations burn purchased
petroleum coke, natural gas and fuel oil. Fuel oil is also consumed in
the blast furnaces. Exhibit II attached hereto lists the quantities and

n
‘

ENERAL OFFICES + 30 WEST MONROE STREET - CHICAGO, HLLINONS GOGO3 ~ AREA CODE 312 + 346-0300

Mr. John T. Cusack Page 2

‘dollar value of the aforementioned petroleum coke, natural gas and fuel
oil purchased in each of the years 1964 through 1967. The exhibit does
not include blast furnace gas or coke oven gas consumed in certain of
Inland's generating stations inasmuch as these are by-products produced
within the plant and not purchased. eat, ;

3. The following sets forth the reasons why Inland's East
Chicago facility has not exclusively utilized one energy fuel in those
instances where other energy fuels in addition to coal are consumed:

(a) In the blast furnaces, fuel oil is injected because
{i) Inland's coke production is not sufficient to cover its total
coke requirements and (ii) additional charging capacity is
available in the skips for ore. For these purposes and in the
' quantities required fuel oil is cheaper, in general, than pur-
chased coke. }

(b) The use of different energy fuels in each of
Inland's generating stations is dependent on the design char=
acteristics of the station. In one generating station fuel oil
is used to cover shortages in available powdered coal, the
economics of fuel oil vs. powdered coal being approximately
equal. A second generating station burns blast furnace gas,
coke oven gas and fuel oil, the facility not being designed to
consume coal. Ata third generating station coal is the
primary fuel, but petroleum coke and natural gas, when
the latter is available, are burned as substitutes for coal
for economic reasons. : oe

Coal is not consumed in the open hearth furnaces, the basic
oxygen furnaces or the reheating furnaces

.
i
‘

The information furnished on the enclosed exhibits has been
prepared from a variety of internal sources. We cannot vouch for its
accuracy in every respect. For example, with respect to steam coal
purchases, we have been obliged in certain instances to estimate freight
costs to arrive at delivered values.

preg rae

sorInsolougq
_ af/avo

Tesunoy Tereuen

pue jueprserg SOTA
Aouuey “y 81005

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waszeq uoqjeurzosuy ou} Aqresueprzu03 32023 TITH nod 38n23 IT
i eee
*pez}turqns yIMerEY uoT}euLA O;UT ey} uretdxe Arjny ezour 10

' gzeT3Ue3sqns 03 nzdjoy 20 pepoosu uoTe}WEUNIOp OU Jo MOU OM

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| Bs May 20, 1968
. INLAND STEEL COMPANY Exhibit I
gene 4 : : =e. j
ee METALLURGICAL COAL PURCHASES
1964. eS 16S 1966 _ 1967
7 - Delivered | Delivered | Delivered : - Delivered |
Supplier Mine Net Tons _ Value ‘ Net Tons Value | Net Tons Value . Net Tons Value
Inland Steei Co. * Wheelwright, Ky. 1, 549,704 $15, 605, 519 | (1,638,139 $16,446,916; 135,653 $ 1, 356, 530
Island Creek Coal Co. Wheelwright,Ky. = |. =" ° |, 1,569,262 15, 849,546 | 1, 676,894 $17,255, 239
Island Creek Coal Co. Bartley #6,W.Va. - | : 108,567 1,155,153! 100,638 1, 105, 00
Freeman Coal Mining Corp. Orient #3, Ml. | 307,474 2, 410, 596 ; 330,095 2,558,236; 401,217 3, 125, 480 | -386,267 3, 009, 020
Old Ben Coal Corp. "Old Ben #21, D1. 73,745 555,300 | - 38, 637 291, 709 58, 357 434,176 250,310 ~—1, 937, 399
Bishop Coal Co. Bishop, W. Va. 1,701,208 18, 645,240 | 1,655,609 18, 128,919 | 1,514,434 16,704,207 1,563,145 17, 538, 487
Jewell Ridge Coal Corp. Jewell Valley, Va. - 234,191 «2, 494,134 | 229,715 2,492, 408° “i 169,088 1, 868, 422 | :
The Pittston Co. _ - Jewell Valley, Va. | 1. 169,088 —_I, 868, 422 4 123,206 1, 452, 599!
Consolidation Coal Co. Seainjonse, W. Va. . | \ & ay SEI eas 55, 766 «39, O78
: 3, 866, 322 “Foi. 789 3,892,195 $39,918, 188. #125, 666. Fer, 936 4, 156,226 $42, 936, 827

Freeman Coal Mining Corp.
Sterling- Midland Coal Co.
Bell & Zoller Coal Co.
Royal Fuel Corp. .
Republic Coal & Coke Co.
United Electric Coal Cos. -
West Kentucky Coal Co.
Island Creek Coal Co.
O'Keefe Bros. Coal Co.

Southern Dlinois Co-op Coal

Sales Co.

*, Coal supplied from Inland Steel Co., Wheelwright, Ky. Mine, valued at market.

STEAM ocak PURCHASES

94, 806 $ 627, 595 6,404 $ 47, 708
42, 400. 308, 213 19, 932 144, 766 |
43,077 | 263, 684 "12, 427 87, 051.
13, 803 101, 472 38, 173 224, 457
46, 071 321, 117 58, 447 331, 484
62, 416 424, 529

7, 342 56, 679 .
5, 210 37, 879°
69, 825 420, 346
i: 227, 032 1, 210, 080 —
309,915 $ 2,103,289‘; 437,450 $ 2, 503, 771/:

3, 217

~ 2,049
5, 660
23, 130
41,901
2, 524

1,035

294, 876

$

24, 128:
15, 366
42,217
146, 697
250, 568

15,019 ©

7, 161

1, 724, 412

A:
374, 392 -$ 2,225, 508/|

18,878 $
150, 208

112, 286

27, 095

240, 076
946, 332
782, 632

176, 118

308, 467 - $ 2, 045, 158°

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$961 PUS H96I - SASVHOUNd TVOD

October 21, 1966

Mr. Bertram M. Long

Assistant Chief, Midwest Office
Antitrust Division

United States Department of Justice
Room 2634, United States Courthouse
Chicago, Ilinois 60604

Dear Mr. Long:

Referring to your letter of October 14, 1966 addressed to Mr.

Herbert A. Blair of our Company, File No. 60-0-37, we are enclos-

ing a list of suppliers of coal for the years 1964 and 1965, the quantity

each of these suppliers furnished, and the payments made to each supplier. ‘

No coal received by the Central Illinois Light Company in the years 1964
and 1965 was mined outside of the State of Illinois. :

United Electric Coal Company and Freeman Coal Mining Corporation
have both bid on supplying coal to our Company; however, we have not
considered these two firms to be competitors inasmuch as Freeman
supplied our Springfield Station and United Electric supplied our Peoria
plants. :

To answer question No. 5,
“What effect, if any, may there be on your firm and on other

public utilities if The United Electric Coal Companies is

eliminated as an independent supplier of coal "
would be highly speculative in connection with the effect on other public
utilities; however, we feel the elimination of United Electric Coal Company,
as an independent supplier, would have little or no effect upon the Central
Illinois Light Company inasmuch as we have a long term contract which
runs to a period when, in our opinion, the reserves in the mine that now

supplies us se 3
e awe sa ek 07h sell Very truly yours,

BERERTIIEY? GF

Q. W. Wellington
Senior Vice President, Operations

cc: Herbert A. Blair

Missour! PorTLtaND CEMENT COMPANY
” 9761 CARONPELET AVEXUE

ST. LOUIS, MISSOURI 63105

_ WILLIAM J. BRAMMAN, JP. September 22, 1959

VICE PRESIDENT, SECATTARY -

Mr. Hugo S. Sims, I11 /
Attorney, Midwest Office
Antitrust Division |
Department of Justice
Room 2634 United States Courthéuse
Chicago, Illinois 60604

Re: United States vs. General Dynamics Corporation, et al
Dear Mr. Sims:

In response to your recent telephone inquiry regarding the
above matter, | will attempt to clarify the basis for useage
of coal and gas at our three midwestern cement manufacturing
plants, This data will supplement that previously requested
and supplied in my letters of January 20, January 24, May 2,
and May 21, 1969,

Plant. Gas has been used for all purposes beginning
sometime in 1964 to date. The rate is considered to be interruptible
but the supply is sufficient to serve us without interruption
throughout our entire production year. Production is normally
discontinued for a couple of winter months for economic reasons.

Gas is used because it is cheaper than coal.

St, Louis Plant. Over the years, coal and gas have been alternated
as fuels for kiln operations depending upon the price of each fuel.
The gas used for the years 1964 through 1967, as reported in my
letter. of January 20, 1969, was for heating purposes only. This
gas was purchased on a non-interruptible basis. Coal was used
exclusively for kiln operations because at that time it was more
economical under a long-term contract. For more than a year,
however, we have reverted to alternating coal and gas as fuels

as gas prices have become more competitive. For the twelve

months ended August 31, 1969, coal consumption amounted to
$449,371 for 72,646 tons and gas consumption amounted to $554,828
for 2,173,972 MCF. This gas was supplied on an interruptible
basis at a lower cost than coal, Coal was utilized only during

ae ee
(Gb-A0 21 £25 =a!

a a Ag

BIT . ‘
Bees vers
b heise twine =
' Pg tency. - be .
Se pet 5. —
it, 7 4
al é Bn a a -

SE ae

Mr. Hugo S. Sims, III
Page 2
September 22, 1969

’

Joppa Plant. To date, coal has been the cheapest fuel available
at this plant since its completion in 1963. For this reason it
has been used exclusively for kiln operations. Gas could and
‘would be utilized for this purpose if it»should become cheaper
than coal, The gas that has been used at this plant has been
for other purposes, such as heating and drying, for which it

is preferable for technological reasons. This gas is supplied
on a non-interruptible basis. ,

J th summary, kiln operations at our three plants presently utilize
three different types of fuel supply -- coal at Joppa, gas at
Kansas City and a combination of coal and gas at St. Louis. At
two of these locations, St. Louis and Kansas City, the fuels
utilized have changed in the past five years due to changes in
the competitive prices of coal and gas. Cost is the determining
factor, :

Very truly yours,

ot Autscice

er

Sruiten Strten

p
.
‘
.
©

Dederci Cr2d2 Camn-cisctan

Joseph W. Shea, Secretary of the Federal Trade Commission, and official cus-
toda, of sts records, do hereby certify chat attached is a full, truc, and complete copy of :
Respondent Exhibit No. 184 A-F received in evidence in

Federal Trade Commission Docket 8765, in the matter of
Kennecott Copper Corporation.

ad

. “ “Ae. IN WITNESS WHERBOF, I have hereunto subscribed
’ “
‘cue my mame.and caused the seal of the Federal Trade

: [IN SUBPOENA DUCES
DERAL TRADE COMMISSION UNDER DATE
SCEMBER 31, 1968 ON BEHALF OF
-KENNECOTT COPPER CORPORATION

Docket Wa? 76S pesrnccss Exhibit RoR ID
In the Matter of: * 7

baie X Meee ioen: oe PF"

PRICE WATERHOUSE & Co.

> \¥ .
_»acs WATERHOUSE & Co os ies

> New York 1000+
March 6, 1969

The Honorable Donald R. Moore
Hearing Examiner FEDERAL TRADZ COMMISSION

Federal Trade Commission on

1101 Pennsylvania Avenue Cota Bh 2 rrespeses EM TIZYD
Washington, D. C.

Dear Mr. Moore: \

J

' KENNECOTT COPPER CORPORATION

' In accordance with provisions of Part B of Attachment A to
subpoena duces tecum issued. by the Federal Trade Commission under date

of December 31, 19%8 on behalf of Kennecott Copper Corporation, we have
prepared and submit for your information the exhibits listed below:

Exhibit I - Companies which responded to subpoena duces tecum

II - Selected information requested in subpoena duces
tecum

We have prepared Exhibit II from data furnished to us by the
participating companies listed in Exhibit I, Our work was limited to
receiving and compiling the data into composite form, hence we did not
compare the individual company data submitted to us with the records of
such companies and no audit procedures were carried out by us. Accord-
ingly, while we are Satisfied that the data have been properly summarized,
we can assume no responsibility for the underlying amounts and figures.

Every possible precaution has been taken to prevent the direct
or inferential identification of ™ ydata of a particular company in the
composite amounts and figures. ; ;

eee ke &

Should you have any questions about our procedures in compiling
the data, Please let us know.

Yours very truly,

Puan tSebchoind @

613

COMPANIES WHICH RESPONDED TO SUBPOENA DUCES TECUM

D BY FEDERAL TRADE COMMISSION UNDER DATE
DECEMBER 31, 1968 ON SERALF OF
R RATION

; g COMMISSI
po ee
American 041 Company
Prepress reget Company
Cities Service Company
Continental Oil Company
Getty Oil Company .

Gulf Oil Corporation
Humble Oil & Refining Company
Mobil Oil Corporation

Phillips Petroleum Company

Shell Oil Company

Sinclair Oil Corporation

Standard Oil Company of California
Sun Oil Company

Texaco, Inc.

Union Oil Company of California

> vA © Vi REQUESS Lf
ISSUED BY _FEDE RAL TRADE \CO
OF See Ca

NNE iECORT-COPPBR CORPORA

subpoena duces tecum, the five companies shown below reported holding
recoverable coal reserves in 1967:

Atlantic a Company
Oil Company

Sinclair Oil Co ration

2. The above five companies reported holdings of recoverable coal
reserves and acres of coal lands as follows:

(a) Total recoverable coal reserves of 7.8 million tons* in
— and 10,188.7 million tons in 1967.
(b) To of coal lands of 4,524 acres in 1960 and
2. 2 491, 079 acres in 1967. -
(c) Total recoverable coal reserves in 1960 and 1967, respec-
tively, of:
(i) Zero aeeeten tons and zero million tons
in Arizona.
(ii) Zero million tons and 234.0 million tons
in Colorado.
(iii) Zero million tons and zero million tons
in Idaho

(iv) Zero mil million tons and 106.0 million tons
Montana.
(v) ee nemo tons and zero million tons
(vi) Zero million tons and 222.0 million tons
in New Mexico.
(vii) a alten tons and 296.5 million tons
(viii) — million tons and 1,276.0 million tons
(ix) Zero sag tons and 2,537.2 million tons
in states west of the "Mississippi River.

*Throughout tons refers to short tons.

ERAL TRADE COMMISSION
ren “a rou hh

EXHIBIT II (Cont'd)
veal acres of coal lands in 1960 and 1967, respectively,
- of:

acres and zero acres in Arizona.
acres and 41,400 acres in Colorado.
acres and zero acres in Idaho.
acres

acres

acres

j :
3. The five companies (listed in Item 1) holding recoverable coal
reserves in the United States.in 1967 are grouped as follows:

(a) One rted total recoverable coal reserves of
over 5,000 million tons.

(b) Two companies reported total recoverable coal reserves
each of 1,000 million to 2,750 million tons.

(c) Two companies reported total recoverable coal reserves
each of under 1,000 million tons. :

4. The five companies (listed in Item 1) first acquired recover-
able coal reserves or coal lands as follows: .

a) One in 1955
[oe come
c

One
One
One

5. Of the five companies (listed in Item 1), none reported holding
recoverable coal reserves in Utah in 1960. Two of the five companies
reported holding such reserves in 1967.

6. Of the five companies (listed in Item 1), none reported holding
recoverable coal reserves in Arizona, Colorado, Idaho, Montana, Nevada,
New Mexico and Wyoming in 1960. Four of the five companies reported
holding, in aggregate, such reserves in Colorado, Montana, New Mexico
and Wyoming in 1967; mo coal reserves were reported by such companies
for Arizona, Idaho and Nevada in 1967.

19,0

* f°
t— TAF

EXHIBIT IL (Cont *d)
/
_ Of the fifteen companies (listed in Exhibit I), eleven
.~ported expeacirures for research, study, or development in the conver~-
sion of coal to synthetic fuels, with the following breakdown by years:

ea0 om

(

*Four panies reported estimated aggregate expenditures of
$291,300 for the period 1963-1967. No specific breakdown
was furnished for the individual years in that period.

9. The eleven companies referred to in Item 8 reported expendi-
tures of $14,138,748 for research, study, or development in the conver~-
sion of coal to synthetic fuels during the years 1963-1967, both
inclusive, of which $6,508,473 was reported as company funds and
$7,630,275 as grants from others.

COM MISSION

FEDERAL TRADE
Preset ka_276 nesroscents Exhibit wa PSE

617

Standard Oil Company (New Jersey)

1968 Annual Report

We are plorsc? to report thet earntics of
Standazd C2 Corypcuy (New Jersey) in 1938
never sed F3™ milian fo a pees} £3,277 ni Hon,
or $5.94 per stirs, ny 20.8 por co:.t over the eoz-
parable carvings of $5.96 per shore in 1967: Ac-
comiiing chenges, which are d:scribed i the
notes tu the aceon:p. nying Gnancial statements,
had the effect of reducing the earnings fizures
for both yeers.

‘Dividend poymen‘s te shereholders weve in-
creased for the eighth year in a row—from $9.5
per shave in 1867 to $3.65 in 1233. This wes the
86th comsceutive yexr of dividend distributions.

Tote! revenue rose to $15,873 million, an in-
erensc of 7.7 per cent over 1937.

Production of crude oil and naturel gas liquids
reached a new high rate of 5,225,000 barrels a
day, up $2 per cent over 1967, with marked
incres. Con

Mittin» of det"

income

ids ¥

618

tirsec efforts towird cecst retuction end eF-
ciency atso have contributed to lu:prove2 proft-
ability. Jersey’s retur: on average shareholders’
equity inerested to 12.3 per cent last year, up
fror: 12.6 por cent the year before and the highest
ir more then « decade. Further improvement is
expected in 1959.

In 1£6S compeny investhaents in new property,
plert, ene ecu'p.iont anionnted to $1,954 million.
SlighUy move then bslf of the 1955 investments
were in the United States. A further $195 million
was spent en? charged to income in 195S as part
of the coimpany's world-wide exploration pro-
gram which is desigucd to support the objectives
of inerccsing reserves and of diversifying the
compsuy’s sources of crade oil and natural gas.

Afiiliates are finding and taking advantage of
major opportunities for increasing earnings in
the futare. In addition to the growth of neture!
gas sales, the investment progrems associated
with crude oil production from the Alaskan
Aretie anc offshore southeastera Australia are
of particular importance. The grand seale of
these exciting opportunities requires a continued
high level of capital expenditures—a leve! which
the company’s strong financial position makes
possible to maintain.

The demand for energy throughout the world

POR THE BOAED OF DIRECTORS

BLL. Hamer, Cheirinan

. in the future is strengthened by the enthusiastic

continwes to inerense steadily. Improvements in
the stex.card of living in industrialized nations
and greater realization of aspirations among de-
veloyitig countries ensure dynamic growth in the
demand for energy.

In the United Siates, total energy require-
ments are estimated to increzse at an average of
4 per cent 2-year, which means in ten years they
will be almost half agcin as large as they are
today. The demand for oi! and gas, which supply
three-fourths of these requirements, is antici-
pated to grow proportionately. Energy consump-
tion is incressing even faster elsewhere in the
free v. orld, and oi] and natural gas are expected
to supply nearly all the near-term growth in
these energy requireraents.

Jersey afSliates will maintain their traditional
leading position as suppliers of petroleum prod-
uets to free world countries. Their demonstrated
success in meeting the needs of growing markets
in the continents of the globe promises to con-
tinue the company’s growth and profit improve-
ment in 1969 and the years ahead. Our confidence

commitment of the thousands of company em-
ployees around the world. We appreciate their
loyal efforts as well as the continued support of
our shareholders.

J. K. Jasresox, President

ah ie
”

619

(1967 rosteted, see pege 23) :
Total ri. snus, miMious of dollars $15,072 $14,744¢
Net incsina, millions of dclacs $ 1,277 ¢ 1,155°
Cach divigonds pais, wi7ions of dollars $ 725 $ 743
Shar shoidars’ equity, millions of dollars ’ $ 9,555 $ 9,375
Net income per shere ¢$ 594 $ 5:36°
Cash dividends per share $ 3.65 .$ 3.45
Sharche'¢ srs’ equity per share $ 45.23 $ 43.57 —
"Nat income to average suarsholJers’ cavity, per cent ; 133 12.6°
Net income to total revenue, per cent 8.0 7.8°

*Ezcludes estimated recoveries of $49 million or $0.18 a share on elaixus for World iar II losses.

2iMions of do"lars
-2,200
UC. -2.Stotes Foreic: yen
Otke . -ctera Hemisphere : 7 + States ome
Eastern i shere Millions of dolicrs F =
-1,300 ,
1 § | ‘ -1,600
i grow ch of the airlines’ pas-
senger mud caryo fleets. The first of the now
jumbo jet aircraft will use Esso fuels in New
York and key European cities Inte this year.

Humble revenues benefited from significant
growth in sales of both natural gs and liquefied
petroleun gas. Sales of natura! gas, already at
high levels, grew by 14 per cent, owing primarily
to deliveries uuder long-term cortracts made in
previous years. Sales of netural gas plant liq-
uids were up 18 per cent, mostly as a result of
increased p2troclemical feedstock sales. Over a
three-year period and at a cost of $80 million,
Humble built 13 new gas plants and expanded
14 existing one: in Texas and Louisiana to re-
mov: additional liquids from natural gas to sup-
ply this rapidly growing business.

Humble also broadened activities in two other
forms of energy: coal and uranium.

In early 1969 a Humble subsidiary, The Carter
Oil Company, which holds large bituminous coal
reserves in IHinois and the Rocky’ Mountain area,
signed a long-term sales contract with Conmmon-
wealth Edison Company of Chicago. The con-
tract calls for delivery of about three million
tons of coal annually. Work was begun to develop
an underground mine at Carlinville, Mlinois, to
supply the coal to the utility eompany.

In evaluating its uranium: holdings, Humble
determined that a deposit in Live Ozk County,
Texas, contained more then five million pounds
of reeovernble uravimn oxide, and a coutract is
_ being negotiated with a nonaMliated company for
the conmercis:! development of this ore body.

Corctz Imperial Of) Lizwited aceelorated ‘its
prograia for the exploration and evaluation of

ar

its strong land position covering about 10 million
acres in the Mackenzie River Delia of the Cana-
dian Arctic, 300 miles to the east of the Alaska
North Slope diseovery. Three seismic parties are
at wort: in the region, and the eompany is drilling

‘one exploratory well on wifolly owned acreage,

while a second well is being drilled on acreage in
which Imperial has a one-third interest. Imperial
also continued to develop production in estab-
lished oi) fields in the Rainbow-Zama area of
northern Alberta and to explore other areas of
Canada, principally in the West.

Imperial, the leading oil marketer in Canada,
continued to expand its petroleum product dis-
tribution facilities. An important part of its

Cancdc op wating Cate ISzS = Changetrom 1°57

61%

23%
29%
12.3%

marketing program has been the installation of
automotive service eenters, which Imperial pio-
neered in Canada. At year-end 36 of these cen-
ters were in operation.

Letin Aincrica In Venezuela, Creole Petroleum
Corporation started construction of a fuel oil
desulfurization plant at Ammay refinery. Lago
Oi! & Transport Company, Limited, whieh vroc-
esses substantic] volumes of Creole eride oil for
export, will build a similar plant in Aruba,
Netherlands Antilles. These plants were desigaed ~

623
DEFENDANT'S EXHIBIT 82

UNITED STATES DISTRICT COURT
FOR THE
DISTRICT OF NEW JERSEY

{

Civil Action No. 954-64

UNITED STATES OF AMERICA, PLAINTIFF
v.

STANDARD OIL CoMPANY (NEW JERSEY) and
PoTasH COMPANY OF AMERICA, DEFENDANTS

Before the Honorable Robert Shaw

PLAINTIFF’S PROPOSED FINDINGS OF FACT
. AND CONCLUSIONS OF LAW

NICOLAUS BRUNS, JR. -
RICHARD T. CoLMAN

Attorneys, Department o Justice
Washington, D. C. : !

-

5. Jersey ‘is among the nation’s largest industrial cor-
porations possessing enormous financial resources, con- \

tilizer products. It has grown significantly in recent
years due in large measure to a policy of expending

5a. Jersey is a large industrial corporation with.
enormous financial resources, and world-wide opera-
tions and investments.

5b. Jersey has grown significantly in recent years,
due in large measure to a liberal policy of capital
expenditure and the acquisition of other firms.

5b(2). Jersey’s capital expenditures, including

amounts spent in searching for oil and gas reserves,
have averaged more than $1 billion annually over the
decade preceding 1963, and have been primarily re-
sponsible for the company’s continuing growth. (GX
2).

5d(4). Jersey Production Research Company is a
wholly-owned subsidiary of Jersey which conducts re-
search in connection with methods for determining
and recovering mineral deposits, principally oil. Any
non-petroleum mineral deposits which the company
discovers are recorded and reported to Jersey. (Rath-
bone Tr. 839-41).

5e(3). The Board Advisory Committee on Invest-
ments (BAC) provides assistance to Jersey and its
affiliates in evaluating proposed investments, and also
initiates studies of investment opportunities. The
BAC reports directly to the Board of Directors and
maintains contact with Jersey’s various departments.
(GX 113, Stip. of Fact No. 2, par. 1). The BAC

BMITED STATES DISTRICT COURT
ae FoR Tile
DISIRICT O RE JERSEY

CIVIL ACTIGN NO. 954-64

UNITED STATES OF AMERICA,
Plaintiff,
ve

STANDARD OTL. COMPANY (NEW JFRSEY)
_ end POTASH COMPARY OF AMGRICA,

Defcadants.

BEFORE i0E RCUORABLE ROSERY SHAY

m1

PLAINTIFF'S MSHORANDUM ACCOMPANYING PLAINTIFF'S
PROPOSED FIND™CS OF FACT AND CONCLUS FOSS _OF_ LAY

FRED D, TURNAGE
WICOLAUS ERUNS, JR.
RICHARD T. COLMAN

Attorneys,. Department of Justice
Washingtor., D. C.

Plaintiff, CIVIL ACTION NO. 954-64

PLAINTIFF'S PEIORANDUM ACCOMPANYING PLAINTIF?'S
Pacr OF

Simultonsously herewith the Plaintiff is filing its propoced findings
of fact and conclusions of Lev which exe fully supported by record refer
ences, “Rather than repeat the factual detail set forth tm the proposéd”
findings or set forth egain the many references to, and quotations from,
the defendants" own documents #8 was done in Plaintiff's pretrial brief,
thie wemocandum sucuarizes the plaintiff's factual contentions and roletes
thea to the legiclative purpose underlying Section 7 of the Clayton Act
end to receat Supreme Court decisions. °

Summary of the Care

Pending the outconc of this litigation, Jersey hae been enjoined fron
coasuxmating its costract to cequire PCA's avsets, Conewrmatioa of the

contract was originally scheduled for October 21, 1964 and vould have achieved
Jersey's goal of producing end marketing potash. Jerecy's interest in the
potach business began in sbout 1960 whon it fixst became interested i becoming
_@ major fertilizer producer, This was consistent with ite continuous desire
_ to put its tremendéous Crsnbedied. Tesources to work by making and selling profit~
able new products to both new markets and to existing markets in which it was
then so successfully selling petroleum and related products. —
Jersey's production of its by-product natural gas, from which ammonia
is made, led it to manufacture anhydrous ermonia for fertilizer use. In turn,
this led it into the menufacture and sale of a full line of fertilizers éc-
Tiveé from phosphate and potash. Soon it had extensive fertilizer facilities
in Central South America and in other foreign countries. In addition, it was
actively exploring the poseibilitics of entry into the fertilizer business in
the United States. To supply ite huge actual and potential raw material require-
ments, it sought to develop and acquire potash and phosphate reserves. With
this objective, through its Couadien subsidiary, Jersey had already spent be-
tween two and three million dollars and proposed to spend en additional ons
and one-half willioa dollars, to conduct the exploration and test drilling
essential for the ultimate production of potash.
In a sutehell, the Goversnent's case rests on its contention that

because Jersey vas so motivated to mine and market potash end because it

hed the resources to satisfy this desire, it would probably have entered

into the production and marketing of potash in competition with PCA and

, 629
.

other United States potssh producers by intesusl expansion or by othor
meens had it not made-e contract to acquire PCA. Accordingly, the aeqri-
sition, if mot permancat)y enjoined, will eliminate Jersey ec @ poteutial
competitor to PCA end the other United States potach producers, It will
also inacdiately foreclose such other producers from the opportunity of
supplying Jevesy"s exbsidieries with ths enormous emounte of potash they
require for their fertilizer manufacturing operations,

Argucent
The Statutory Prevose of Section 2

H. Rep, 1191 (81st Congress, 1st Session) wakes clear that the enend-
ments to Section 7 of the Cleyton Act were concerned with th> broad proBlea
ef the high level of econcaie concentration in the American economy, Congrese
viewed with elerm the increasing pover in the hands of the Jergest corpo-
retioas end since the trend vas found to be dve in considerable part to the
external expansion of business through mergers and acquisitions, principally
by lerge corporations buying ovt susll conpanies, Congress sought to sten
the tide through the enti-merger provicioas of the Clayton Act. Thus,
the purpose of the 1950 anendaents was "to limit future increases in the level
of economic concentzation resulting from corporate mergers ead acquisitions."
(S. Rep. 1775, Blst Coagress, 2nd Secsion). Acquisitions beyond the reach
of the Sherman Act were to be proceribed and Section ? was intended to be
an effective guard cgainst “econontcally eigaificeat acquisitions,"

Congress. therefore, prohibited cequisitions viete the effect may be
substantially to lessen competition in any line of corncree in my section
of the covatry, There wes to be uo requirement of actuality or certeinty
in the injury to competition because aaticenpetitive consequerces were
intended to be arrested in their ineSpteacy before they developed.

The legislative history shows particular Congressional concern with
acquisitions by large corporetions end a broad plan of preserving a free
enterprise system of decentralized, ingependent units, The Supreme Court
has expressly recognized that in deciding the legelity of a merger it must
weigh heavily this economic way of life which Congress was trying to pre~
serve and that mergers which offended it were to be blocked, Browa Shoe

* Co. v. United States, 370 U.S. 294, 333 (1962). Thus, the size of the
acquiring compzny has uniforoly been eoaatéeced & most importent end
@ecisive factor in evaluating acqvisitioas.

The Suprece Court bas applied this philosophy in @ number of instances
to strike dowa mergezs end acquisitions involving large firns or where the
competition which wight eventually be lessened was solely potential in
character. For instence, in United Stetes v. Alumfnua Company of /meriea,

377.U.S. 271 (1964), the Suprene Court held thet the acquisition of the
Rome Czble Corp. by Alcod violated Section 7 by eliminating actual compe-
tition between them in the sale of aluninum wire and cable, Already the
leading producer in the field, acquisition by Alcoa of Rome would add but
1.3% to its market share. But "[P]reservetion of Rome, rather thea ite

absorption by one of the gieate, will kesp it ®ac ea important competitive

631

factor’ . . ." the Court said (at p. 261). In United States v. Fl Paso
Nature) Gas Co., 376 U.S. 651 (1954), Pacific Northvest Ges Co. bed been
unsuccessivl ju efforts to sell natural gos in California, covld not get
the gac needed to set up 2 project and was unable to satisfy the regulatory
egencies es to its ability, but yet the Supreme Court held that 4t was a
substanticl potentiel conpetitor because of its efforts end its interect

in the business end the attrectiveness of the market, The entry of now
firme in # booming warket denonstvated the eppoctunitior ubichwere- fd fect
available, On this basis, the Court found the acquisition of Pectfic

Northwest by El Paso to be in violation of Section 7. Similarly, in

United States v. Penn-Olin Chemical Co., (378 U.S. 158 (1964)), the

Supreme Court noted that the relevant business was expending and both Pena-

salt end Olin Mathieson were strongly motivated to enter the market indo- |
pendeatly. Thus, the Court held that their formation of a joint sabia
to do s0 eliminated potential competition botween then including the poteatiel
competition afforded by a firm which mey have merely remained a threat to
enter at eons indefinite future time.

Thus, Section 7 proscribes acquisitions eliminating the threct of
evehtual competition ce well as those eliminating a substantial factor
in ectusl competition, This is particularly so, as indicated above, whoa
the ecquisition is bathe made by a very large corporation,

The Elinsretion of Potential Competition
Between Jorscy and PCA.

Here, Jersey, the laxgest industrial corporation in the world in terms
of essets held, has a record of intensive interest and activity looking to
the cevelopment of its de potash production and manifestly cogent notivation
for doing so. The ettrective profit opportunities in this growing field, ite
coxmplewentary reletionship to fertilizer activities in which Jerecy wes already
becoming an increesingly importent world-wide factor, Jersey's need te carry :
@ full line of fertilizer wsterials for werketing purposes and need for a rav
materiel position to achieve perticipction in the nost profiteble part of the
busindss, are all fectore which will continue to move Jersey in this direction
aven 10 this acquisition is barred. Jersey's desire for captive potash to supply
its fertilizer plents ccunot justify its elimination by acquisition of one of
the lecding competitors it would otherwica face in the production and marketing
of potash. gs
Jersey bas the meaus and wotive to erter the business of producing and sell-
ing potash on a svdstantial scale without acquiring a large potesh producer, :
Under the cases, no more need be shown to bar this acquisition. But the fact
is Chat Jersey was actively engaging in activities calculated to bring about
an entry into the business throcgh self-developaent. 1/

/ The Govervzent does not contend that Jersey's efforts to integrate or
Giversify are wolevful, On the contrary, such efforts increase competition
end add to the netional resovrees. But the Government is attacking the
means. sclected by Jecszy to grow, i.e, the elfmination of the leading indo~
pendent competitive factor.

The economics of the fertiliger industry were irrevocably craving Jorecy
intoa potash producing position, This is clearly denonstrated by the
company's own docuaents, Once in the fertilizer business Jersey soon learned
it could maximize fertilizer profits by producing potash instead of buying
it. It learned that carrying a full line was most desirable from a compe-
titive marketing viewpoint. It found that the potash industry offered gues
growth possibilities and that potash was a product with vast seles potential
which was in no danger of competition from other products, Jersey examined
potash sources which could supply its own requiremcnts and took ovt permits
in the area of the richest known potash beds in the world, Jt pursued a
detailed solution mining experiment and conducted an extensive nuaber of
studies, surveys of competition and warket analyses, Solution mining was,
however, temporarily shelved, in pert to perait evaluation of the results
of solution miuing by others but mostly because a larger sized conventional
mine would make possible greater profits. But since large scale production
could be more casily sold if Jersey had a partner to share the burden, Jersey
found acquisition of PCA to have benefits over and above those which would
be secured after taking the trouble to develop its owa buciness. Moreover,
‘Jersey found that it woold require a delay of four to five years before

it could begin producing on its on and by that time it have have to face
the competition of seeds’ other new entrants a8 well as the competition

of the(few established suppliers presently in the businese. Acquisition

of PCA elsely eliminated this deley and geve Jersey a jvup on the other

potential producezs, end gave it en experienced sales organization and e

market over end above its-own growing necds for potach. Use of its
checkbook instead of herd, honest’ work in the market place was a simple vcy for
Bersiy to-chtcin a ctcasnaudiag position in potash overnight.

Jersey was s0 motivated to become a potash producer that it would have

used its checkbook to continue its self-developuent program, but for the

agreenent with PCA. It is not necessary to-speculate where or exactly when

it would have achieved its goal, It had several permits in the Canadian
potash fields and may have found it feasible on further coiitinsintibiins dit
construct a conventional mine or at least revert to the solution mining:
technique which is now in use by Kalium Chemicals to wine potash in Canada.
Two of Jersey's permits vere readily adaptable to this method of extraction.
‘In short, Jerscy now secks to justify its entry into the potash busi~
ness by acquisition instead of by self-development because the economics
are more attractive, marketing problems are dissolved and it can thereby
secure a position immediately, The Supreme Court has expressly held that
such business reasons do not authorize an acquisition otherwise unlawful, 2/
Indeed, if such reasons permit a firm like Jersey, with all its vast resources,
fogenuity, experience and capebilities, to take the easy road then Section 7
can really do-nothing to stop the elimination of independent firme from our
‘atin and the concentration of economic power in the hands of the few.
Section 7 clearly wes intended by Congress, and has been so construed by
the Supreze Court, to forbid by acquisition and merger the elimivation of

coupetition which would otherwise probably have existed, such as that between

2/ United States v. Philadelphia National Bank et al, 374 U.S, 321, 370-
372 (963).

635 .
Jersey and PCA,

Yercical Foreclosure Resulting frea the
Acquisition, If Consuxmeted.

e . \
This ecquisition alro violates Section 7? in thet it deprives rivels of

PCA from the opportunity of supplying the substentiai merket represented
by the potash necds of Jersey's fertilizer plants. Tae prinary vice of =
vertical merger or other arrangement tying a customer to a supplier is that
by foreclosing the competitors of either party from 2 segment of the market
otherwise open to them, the errangemeat may act as 2 clog on coapetition
which deprives rivals of a fair opportunity to compete. (Bro:m Shoe Co. v.
United States, supra, et 324), Relying upon the testimony of Brown's
President that Browa intended to supply shocs to Kinney, the Court found the
resdlts of the peeenn yore we of Kinney by Brown to be zralogoss to a tying :
clause and observed that “such an ‘srrangement is inherently enticompetitive”
snd “can rarely be havmonized with the strictures of the antitrust lows."
Thus, the Court said, competition may be substentially lessened “although
only 2 relatively sall amount of commerce is effected." |

_ Im Brown Shoo the market represented by Kinney's sho purchases eggte~
gated 1.2% of nation2l shoo sales and the foreclosure at the time of the
trial of the ection was one-tenth of one perceat of the market but the Court
passed over this fact with perfunctory consideratioa end held that since
B=owm was onc of the leading wonvfecturers of shoes ené Kinacy, the largest
independent chain of fomily shoc stores, no metger between 2 producer end

independent retailer in the shoe industry could iuvolve a lerger potential

SEE Oey

warket foreclosure, In Juteruations} Salt D. We United States, 332 U.S.
392 (1947), the voluas of sales fédreclosed by the tie-in clause totalled

only about $500,000 and the arrangeaent was held illegal because this emount

of cozmmczce wes not insudstentiel, Other cases under Section 7 where the

“wertical foreclosure from an acquisition or merger involved relatively sasli

amounts of cosmesce but were held to violate the Clayton act vere, for exerple,
it tates v. éu Pont de Nemours, 353 U.S. 5865 (1957), in which du Pont's

sales to General Motors comprised but 1.6% of the total market for the type

of fabric used by the automobile industry, Because General Moters sccounted

for alwost half of the auto industry's sales its requirements for automotive

fabrice must have been substentiel, the Court said, and since du Pont vce

GM's largest supplier, du Pont's ownership of 23% of Gil stock resulted in a

substantial lessening of competition. In United States v. Bethicheu Steol

Corp. et al.,(168 F, Supp, 576 (S-D.R.Y¥. 1952)), the Court held that Youngstown,
® purchaser of wire rope, would probably become a captive market for Bethlchen.
In holding that the market represented by Youngstown was substantial and its ;
sequisition by Bethlehem would substantially lessen competition, the Court
woted that the foreclosure would involve 1,3% of the entire market or 2,565

In the instant case, PCA is the leading producer of potash in the
United Etates and the second largest in North America. Although other firos
have indicated that they propose to become producers (by 1970 or thereabouts),
there are but nine companies presently opereting wines in the United States
aod PCA makes 17% of the total potash deliveries in this country. Jersey,

687

whose contexporencous docunents reflect the intention of obtaining a captive

source of supply 2nd whose Board Chairman (as well as the President of the
Jerscy subsidiary responsible for obtaining potash for Jovsey" 6 fertilize:
- operations) testified thet Jersey fully planaed to use PCA after th: ecqui-

sition es a captive supply souzce, is a substantial purchaser of potash with

requirencats inexcets of those of the largest customers of PCA or Southwest

Potash end greater than the production capacity of three of the nine prptrcers.
Thus, like Brown Shoe end Su Pont, there really could be no vertical fore-

closure in this industry of nore Ce than csr & contemplated ac-
quisition of PCA,

To the extent removal of Jersey as an available customer, as @ result

of acquiring PCA, forecloses suppliers of shipments from United States mince

_ other then PCA, there is a foveclosure of et toate in the production and

sale of potash in this epuntay.

Rature of the Evidence

The evidence of Jerscy's potential competition, its substantial position
ang its large purchases of potash are contained primarily in documents obtained
from the defendants and offered into’ evidence by the plaintiff, The defend-
ents have stipulated that these docunents are authentic and genuine, Those
documents which were preserved in the defendants’ files were, slmost without
exceptioa, prepared concurrently with the events they purport to portray, and
yektlect the intent, acts and policies of the Jersey complex. ‘The inferences

®

fairly drawn frem such waterial have far more veliability than self-serving

Seclarations and reflective testimony which are intended to try to explaia

li

638

awey the history of tha pest several yorve. Such is the character of the
evidence principally relied upon.by the defendants and evea that fails
in ite purpose. For its principal witnesses, the Chairman of Jorcey's
Board of Directors and the Chairman of the Esso Cheafeal subsidiary,
both testified that Jersey wouta continue to lock for sources of potash
to eevelop if the acquisition of PCA is blocked by this Court-and both
stated uncer oath that PCA was to boceme a captive sovree of supply: thus
precluding other suppliers from participating in the market represented
by Jersey's purchases. Thus, their testimony in effect corroborates the
inferences flowing fro the documentary evidence which plaintiff conteads
@emonstrates that the acquisition of PCA by Jersey would result in a .vio~

lation of th? low, a. ;

The wefght to be accorded doceacatary evidsace of a contemporancous

mature coupared to trial exculpations has bea noted by the Supreme Court.

For exaaple, in United States v. U. S$. Gypsum Co., 333 U.S

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386414_0099%3A05. Public record. Not legal advice.