James v. Stockham Valves & Fittings Company Plaintiffs' Reply Brief
Public Court Documents
July 29, 1974
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Brief Collection, LDF Court Filings. James v. Stockham Valves & Fittings Company Plaintiffs' Reply Brief, 1974. 31a4de1c-b99a-ee11-be36-6045bdeb8873. LDF Archives, Thurgood Marshall Institute. https://ldfrecollection.org/archives/archives-search/archives-item/5c706fc2-f80d-4a5a-a963-bf7bdde58309/james-v-stockham-valves-fittings-company-plaintiffs-reply-brief. Accessed December 06, 2025.
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DISTRICT CCUR'IN THE UNITED STATES
FOR THE NORTHERN DISTRICT OF ALABAMA
SOUTHERN DIVISION
NO. 70-G-17S
PATRICK JAMES, et ai.,
Plaintiffs,
- vs
STOCKHAM VALVES AND FITTINGS COMPANY,
e t a 1 .,
Defendants.
PLAINTIFFS’ REPLY BRIEF
DEMETRIUS C. NEWTON
Suita 1722 - 2121 Building
23.21 Eighth Avenue North
Birmingl\am, Alafcama 35203
JACK GREENBERG
BARRY L. GOLDSTEIN
JOHNNY J. BUTLER
Suite 2030
10 Columbus Circle
New York, New York 10019
JOSEPH F. HUDSON
3 909 30 th A ve n u e
Gulfport, Mississippi 39501
Attorneys for r'j.o .i.n hr - .*_s
I N D E X
Page
Note on Form of Citations
INTRODUCTION
A * IT IS UNLAWFUL FOR STOCKHAM TO IiMFOSE
REQUIREMENTS OR QUALIFICATIONS ON BLACKS
FOR PROMOTION TO JOBS FROM WHICH THEY HAD
PREVIOUSLY BEEN EXCLUDED OTHER THAN THOSE
REQUIREMENTS OR QUALIFICATIONS IMPOSED ON
THEIR WHITE CONTEMPORARIES .............. 2
B. THE STATISTICAL EVIDENCE INTRODUCED BY
STOCKHAM'S EXPERT. DR. GWARTNEY.. DOES
NOT IN ANY WAY REFUTE PLAINTIFFS' CLEAR
EVIDENCE OF RACIAL DISCRIMINATION....... 10
C. THE COURT CLEARLY HAS JURISDICTION OVER THE
UNION DEFENDANTS PURSUANT TO BOTH TITLE VII
AND §1981 AND THE COURT SHOULD HOLD THE
UNIONS LIABLE FOR ENGAGING IN DISCRIMI
NATORY AND UNLAWFUL PRACTICES.......... 2 3
CONCLUSION 30
- l -
NOTE ON FORM OF CITATIONS
"cx
The following citations are used in this brief:
exhibit introduced by Stockham
"PI. Br." — Plaintiffs Post-Trial Brief
"Pi. Prop. Findings" - Plaintiffs Proposed Findings of Fact
" PX. - exhibit introduced by the plaintiffs
"St. Prop. Findings" - Stockham's Proposed Findings of Fact
"St. T. Br." - Stockham's Post-Trial Brief on
Testing
"T. - Testimony of
"U. Br." _ Unions' Post-Trial Brief
"U. Prop. Findings"
"UX
Unions Proposed Findings of Fact
exhibit introduced by the Unions
- ii -
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ALABAMA
SOUTHERN DIVISION
NO. 70-G-178
PATRICK JAMES, et al.,
Plaintiffs,
- vs -
STOCKHAM VALVES AND FITTINGS COMPANY,
et al.,
Defendants.
PLAINTIFFS' REPLY BRIEF
INTRODUCTION
The evidence presented by plaintiffs and detailed in
their proposed findings and brief demonstrates a straight
forward pattern and practice of discrimination. The plaintiffs
proved discrimination in the form of segregated facilities,
job assignment, promotional policies, training, etc. The Court
is already burdened with substantial post-trial briefs and pro
posed findings and the plaintiffs do not intend to repeat, once
again, in this reply brief, the evidence proving discrimination.
In essence, the plaintiffs' reply to the voluminous post-trial
briefs and proposed findings produced by Stockham is plaintiffs'
brief and proposed findings previously filed with this Court.
However, the plaintiffs will herein brief several
issues which they have not fully briefed previously: (A) "dis
parate treatment"; (B) the utility of Dr. Gwartney's statistical
analysis; (C) the Court's jurisdiction over the union defendants
and the liability of the union.
A. IT IS UNLAWFUL FOR STOCKHAM TO IMPOSE REQUIREMENTS
OR QUALIFICATIONS ON BLACKS FOR PROMOTION TO JOBS
FROM WHICH THEY HAD PREVIOUSLY BEEN EXCLUDED OTHER
THAN THOSE REQUIREMENTS OR QUALIFICATIONS IMPOSED
ON THEIR WHITE CONTEMPORARIES
Stockham characterizes the plaintiffs' "Disparate
Treatment" argument as "an effort to conjure up any impediments
to employment testing". [St. T. Br. at 67] The plaintiffs are
innocent of any "conjuring" since their argument is soundly
1/based on Griggs v. Duke Power Company, the EEOC's Guidelines
on Testing Procedure, closely analogous civil rights decisions,
a nd a proper interpretation of Title VII. If any one is guilty
of "conjuring" it is the Company": "conjuring" up new procedures,
testing and educational, after the passage of Title VII, which
1/ 420 F.2d 1225, 1230-31, 1236-37 (4th Cir. 1970) aff'd
in pertinent part, 401 U.S. 424 (1971).
2
serve to do covertly what Stockham had previously done overtly —
V
segregate Blacks into certain jobs.
The practical import of the disparate treatment argument
is simple. A company which has previously excluded Blacks from
jobs on the basis of race, may not now exclude those Blacks,
who had been subject to the discrimination, on the basis of
some criteria other than that applied to whites during the period
of discrimination. The Company may apply new criteria to Blacks
3/
who were not subject to the discriminatory practices.
Decisions involving racial discrimination in voter
registration and teachers' dismissals, which have, in effect,
ruled that disparate treatment is unlawful, are indistinguishable
from the facts before this Court.
In Louisiana v. United States, 380 U.S. 145 (1965), the
Court considered whether a "citizenship" test, which did not
itself discriminatorily prevent the registration of Blacks, could
permissibly be instituted when Blacks had previously been denied
the opportunity to register. The Court held that since whites
who were already registered did not have to take the test, then
it could not be applied to Blacks who had previously been dis-
2/ One month after the effective date of Title VII, Stockham
introduced the use of the Wonderlic Test. [Ans. to Interrog.
No 28, PX18] Also the Company instituted an educational re
quirement for the apprentice program, [PX38; T. Given 279-83] and
has recently instituted, at least on an experimental basis, a more
sophisticated testing program, the Tabaka Tests.
3/ Of course, this assumes that the criteria have no "adverse
impact", or if they have adverse impact they meet the proper re
quirements. See Griggs v. Duke Power Company, 401 U.S. 424
(1971)
3
criminatorily denied the right to register, supra at
155-56.
The Fifth Circuit in a series of similar voting cases
established the "freezing" principle.
"This Court has construed . . . the term
'freezing' as keeping in effect, at least tem
porarily, these requirements for qualification
to vote, which were in effect, to the benefit
of others, at the time Negroes were being dis
criminated against". United States v. Duke.
332 F.2d 759, 769 (1964).
See also United States v. State of Mississippi, 339 F.2d 679
(5th Cir. 1964); United States v. Ward, 349 F.2d 795 (5th Cir.
1965); United States v. Lynd, 349 F.2d 785 (5th Cir. 1965);
United States v. Ramsey, 353 F.2d 650 (5th Cir. 1965); United
States v. Palmer, 356 F.2d 951 (5th Cir. 1966).
Black teachers who have been dismissed during the inte
gration of a school district confront similar problems as black
workers in industry who have been restricted to low-level jobs.
Courts have recognized that these black teachers should not be
compared with new applicants for hire, but rather should be
evaluated on the same basis as other teachers in the system.
Singleton v. Jackson Municipal Separate School District, 419
F .2d 1211 (5th Cir. 1970)(en banc); North Carolina Teachers
Ass'n v. Ashboro City Bd. of Education, 393 F.2d 734 (4th Cir.
1968); Wall v. Stanley Bd. of Education, 378 F.2d 275 (4th Cir.
1967); Chambers v. Hendersonville City Bd. of Education, 364
F.2d 189 (4th Cir. 1966); Rolfe v. County Bd. of Education of
Lincoln County, Tenn., 391 F.2d 77 (6th Cir. 1968); Moore v.
4
Bd. of Education of Chidester School District No....59, 448 F.2d
709 (8th Cir. 1971). The Fourth Circuit logically reasoned,
"[w]hite teachers who met the minimum standards
and desired to retain their jobs were not re
quired to stand comparison with new applicants
or with other teachers in the system. Conse
quently, the Negro teachers who desired to remain
should not have been put to such a test."
Chambers, supra at 192.
Similarly, white workers who have promoted to jobs now
covered by the Tabaka Tests do not have to take the tests to
remain on these jobs, and, of course, they did not have to take
the tests to originally qualify for the jobs. Accordingly,
black workers who previously were denied access to the jobs
solely on account of their race should not be forced to pass a
"qualification" obstacle which their white contemporaries oxd
not have to pass.
The principle inherent in the voting and school teachers
cases is apparent: "neutral" standards or criteria may not be
instituted to hinder the advancement of a minority group to the
place or status which they would have attained but for previous
discrimination.
This is a well-established principle for the application
of fair employment laws.
"Under the Act practices,procedures, or tests
neutral on their face, and even neutral in
terms of intent, cannot be maintained if they
operate to 'freeze1 the status quo of prior
discriminatory employment practices." Griggs
v. Duke Power Company, 401 U.S. 424, 430 (1971).
This general principle logically applies to "disparate treatment .
In fact, the Fourth Circuit in Griggs held the application of new
5
testing and educational requirements to be unlawful because
by instituting these requirements, the Duke Power Company was
treating Blacks and whites differently. Griggs v. Duke Power
Company. 420 F.2d 1225, 1230-31, 1236-37 (4th Cir. 1970) aff’d
4/
in pertinent part, 401 U.S. 424 (1971).
Stockham tried to, as it had to, distinguish Griggs.
[St. T. Br. 72-73] The Company argues that the Duke Power tests,
unlike the Stockham tests, had an adverse impact and were not
Vjob-related. A finding of disparate treatment requires no
determination that the requirement will disqualify more Blacks
than whites (i.e., have an adverse impact). A common sense
analysis of the rule makes this apparent. For years whites
6/
promoted into jobs for which the Tabaka Tests are now required
while Blacks were either excluded or severely limited in their
opportunity to promote into these jobs. If any Blacks are now
disqualified from these jobs on the basis of the tests then they
are being treated unfairly and adversely in comparison to their
white contemporarties.
Stockham's argument that the tests used by Duke Power
were not "job-related", as determined by the Supreme Court, misses
the point; the Fourth Circuit held that the tests were valid under * 6
4/ See also Watkins v. Scott Paper Co., F.Supp.
6 EPD *[8912 at 5864, 5889 (S.D. Ala. 1973).
5/ For this argument we will assume these contentions are
true since they are on their face irrelevant.
6/ See PI. Br. at 39, fn. 46.
6
Title VII but nevertheless held that the test could not be used
in a disparate manner. Similarly, this Court should hold, whether
or not it finds the Tabaka tests valid under Title VII, that
they may not be .used disparately.
The unlawfulness of "disparate treatment", clearly in
dicated by judicial decision, as discussed supra, is fully
Vsupported by EEOC Testing Guideline 1607.11. The Supreme Court
has held on numerous occasions that courts should pay great
deference to the regulations or guidelines of the commission or
8/
agency charged with implementing the pertinent statute. In
Griggs the Supreme Court applied this principle to the EEOC
testing guidelines, although not the disparate treatment guide
line specifically, supra at 433-36; Cf. Phillips v. Martin
Marietta Corp., 400 U.S. 542, 545 (Marshall concurring). The
Courts of Appeals have consistently followed EEOC guidelines.
United States v. Georgia Power Company, 474 F.2d 906, 913
(5th Cir. 1973); Pettway v. American Cast Iron Pipe Company,
494 F .2d 211 (5th Cir. 1974); Riley v. Bendix Corp., 464 F.2d
1113 (5th Cir. 1971); Bartness v. Drewys U.S.A.. Inc., 444 F.2d
1187 (7th Cir. 1971). When the administrative guideline is con
sistent with the purpose of the statute, as it is here,
7/ This Guideline is set out in plaintiffs' brief on pp.
39-40.
8/ Udall v. Tallman, 380 U.S. 1, 16 (1965); United States
v. City of Chicago, 400 U.S. 8 , 10 (1970); Trafficante v.
Metropolitan Life Inc., 409 U.S. 205, 210 (1972); Mourning v.
Family Publications Service, 411 U.S. 356 (1973); NLRB v.
Boeing Co., 412 U.S. 67 (1973).
7
then the Court should follow the guideline.
The Company advances one last argument why the Court
should not rule Stockham's use of the Tabaka tests as unlawful
disparate treatment: that the jobs from which Blacks were
excluded have changed during the 1960s and 1970s and new re-
9/quirements are necessary. [St. T. Br. 69] The Company only
provides conclusionary statements and does not detail any
specific need for the drastic increase in requirements for pre
viously all-white jobs. [Id.] Statements by Company supervisors
clearly dispose of this argument.
Despite the supposed need for the Tabaka Tests the
Company at least until the date of trial never used the tests in
any way in the selection process. The Company imaginatively in
terprets Mr. Adamson's testimony to indicate that the tests were
used in the selection process. [St. T. Br. 46-47] This is just
wrong as the following selections from Mr. Adamson s testimony
reveal.
Q. Mr. Adamson, does anybody who has any
responsibility for promotion at the Company
to evaluate an employee's Tabaka scores as a
judge of his abilities or in anyway use those
scores in a determination of whether he'll
get the promotion?
A. Not to my knowledge in anyway, sir.
9/ Thus, it must be inferred that the Company seeks to
justify the use of these tests under the businsss necessity
rule. Of course, the defendant has a heavy burden to meet in
order to justify a discriminatory policy on the basis of business
necessity. See Pettway v. American Cast Iron Pice Co., supra
at 245-47; United States v. Jacksonville Terminal Company, 451
F .2d 418, 451 (5th Cir. 1971) cert, denied 406 U.S. 906 (1972).
8
Q. It hasn't been used yet?
A. No, sir.
Q. As far as —
A. No, sir.
Q. As far as you know, they have just been used
to accumulate data?
A. They have not been used in employment
has not been used in transfer; and it
been used in promotion.
; it
has not
Q. So, as far as you know, they are just
used now to accumulate data which has
accumulated in the log, is that true?
being
been
A. Yes, sir, I told you this earlier.
Q. Okay. And there's no exception to that that
you know of?
A. No sir, none that I know of.
Q. Okay.
A. And I'm responsible for it. I think I would
know it. [T. Adamson 626—67; See also 623-24,
634, 642-43 and see T. Tabaka 1541-42].
Moreover, a Company superintendent, Mr. Ferrell Burt,
did not perceive any difference which the use of testing made
in the selection of qualified personnel from 1965 through 1971.
[T. Burt 1646-50]
9
B. THE STATISTICAL EVIDENCE INTRODUCED BY
STOCKHAM'S EXPERT, DR. GWARTNEY, DOES NOT
IN ANY WAY REFUTE PLAINTIFFS 1 CLEAR
EVIDENCE OF RACIAL DISCRIMINATION
The Company through Dr. Gwartney made attempts through
various indices to "measure" discrimination, or rather the lack
thereof. Dr. Gwartney did not study any of the employment practices
at Stockham; he was simply given certain data by Stockham.
Dr. Gwartney did not study the following: that Blacks were
10/
excluded from the formal training programs at Stockham;. [T.
Gwartney 2020-21] that Blacks were assigned on the basis of race
to certain jobs,which were generally in the lower-paying job
11/classes; [Id.] that the seniority system at Stockham had a "lock-
in" effect which clearly inhibited Blacks from transferring out
of the lower-paying production departments into which they were
traditionally assigned and into departments which offered train-
12/
ing and higher-paying jobs; [T. Gwartney 2027] that the Company
13/maintained unlawful tests and educational requirements;
10/ Bl.acks were excluded from the apprenticeship program
until April, 1971. [See PI. Prop. Findings, pp. 56-60]
11/ All the jobs at Stockham were rigidly segregated, as
admitted by Stockham supervisors until 1965; the evidence demon
strates that the segregation of jobs, except for token exceptions
remains. [See Pi. Prop. Findings, pp. 33-55]
12/ It is now commonplace that a seniority system like
Stockham which is based on previous segregated job assignment is
unlawful. See Pettway v. American Cast Iron Pipe Co., 494 F.2d
211 (5th Cir. 1974) [Pi. Br. Section II]
13/ Dr. Gwartney is "uninterested" in tests. [T. Gwartney 2032]
Of course, unlawful testing is a major Title VII issue and is a
considerable issue in this action. It is interesting that Dr.
Gwartney did not investigate testing at Stockham even though one •
of the articles relied on by Dr. Gwartney in his testimony re
ferred to discriminatory testing in private employment.
[T. Gwartney 2119-21]
10
[T. Gwartney 2031-32] and that the Company regularly excluded
14/
Blacks from on-the-job training programs. [T. Gwartney 2073-74]
Dr. Gwartney's testimony is based on a faulty assumption:
"Employment discrimination is not something
that we can directly observe. . . . 11
[T. Gwartney 1870]
The Courts have disagreed with Dr. Gwartney: a "lock-in" seniority
system, unlawful tests, subjective use of discretion among white
supervisors which serves to exclude or' limit black advancement,
and segregated or nearly-segregated initial assignment policies,
15/
etc., are all directly observable employment discrimination
practices.
While the discrimination in employment may be directly
observable the exact economic measure of that discrimination may
be difficult to determine. See Pettway v. American Cast Iron
Pipe Co., supra at 260-61. The Fifth Circuit has made it
clear that any doubts as to the amount of back pay should be
resolved in favor of the discriminatee rather than the lawbreaker.
Johnson v. Goodyear Tire & Rubber Co., 491 F.2d 1364, 1380 (5th
Cir. 1974); Pettway v. American Cast Iron Pipe Co., supra at 260-61;
Baxter v. Savannah Sugar Refining Corporation, 495 F.2d 437, 445
(5th Cir. 1974).
14/ See Pi. Prop. Findings at 60.
15/ See PI. Br. Sections II-IV, for a description of the
unlawful practices.
11
Stockham by use of testimony of an economist Dr. Gwartney,
resolves difficulties in the "measure" of economic harm against
the discriminatees; the Company further disregards the applicable
judicial decisions by then arguing that the results of its approx
imation of the "measure" of discrimination indicate that, in fact,
there is no discrimination.
Plaintiffs' statistics are not "manipulative" such as Dr.
Gwartney's. Rather, plaintifffs' statistics simply describe
factual situations in numerical terms: in June, 1965 not one black
worker of the 505 Blacks who were still working as of August,
16/
1973 was in JC7 or above; in June, 1968, there were still no
Blacks (at least of those Blacks working as of August, 1973)
17/
working in JClO-13; until May, 1971 there was not one black
foreman; [PX 11; T. Marsh 879-80] no Black has finished the
apprentice program at Stockham, nor was a Black even enrolled in
the apprentice program until April, 1971; [PX 12a] no Blacks was
selected for any of the training programs for supervisors intil
18/
1970. [See Plaintiffs' Prop. Findings, Section VIII, paras.
34-50] The Fifth Circuit's remark that ”[n]othing is as emphatic
as zero" is certainly applicable to this action. United States
16/ 154 or 92% of the 162 whites who were still working in
August, 1973, were in JC7 and above in June, 1965. [PX 1; PL
Prop. Findings pp. 34-35]
17/ 85 whites were working in JClO-13 in June, 1968 who
were still working there in August, 1973.
18/ The number of Blacks in these supervisory training, and
high-paying positions has improved only marginally. [See P.
Br. 33-34]
12
v. Hinds County Board of Education, 417 F.2d 852, 858 (1969).
While these statistics were emphatic in themselves, plaintiffs
did not, as defendant Company repeatedly asserts, rely solely
on the statistics; the plaintiffs repeatedly demonstrated the
various unlawful practices engaged in by the defendants by
19/
testimony, example and statistics.
Dr. Gwartney's faulty underlying assumption and his dis
regard for the application of judicial definitions of discrimina
tory practices makes the statistical analysis he prepared irre
levant at best and misleading at worst.
Dr. Gwartney used four factors to "evaluate" discrimi
nation at Stockham: (1) comparison of relative earnings at
Stockham with local, regional and national labor markets and with
the federal government; (2) relative changes in the earnings of
employees from 1965 to 1972; (3) relative earnings of employees
recently hired; and (4) regression analysis. [See St. Br. p. 34]
The first point, the comparison of employment at Stockham
to labor markets and to the government is both plainly irrelevant
and misleading. The labor market figures, derived from census
data, include everyone who had any ($1 or more) earnings. [T.
Gwartney 2100] Black unemployment is almost twice as great as
20/
that of whites. Clearly the disparity in average earnings
19/ See Pi. Br. and Prop. Findings, passim.
20/ In 1960 black unemployment was 2.1 times white unem
ployment. In April, 1972 it was still 1.8 times greater than
white unemployment. See U.S. Census Bureau, Statistical Abstract
of the United States (Washington, D.C.: 1972), p. 221.
13
between Blacks and whites in the labor markets was partly due to
the general problem of refusal to hire Blacks, which is not at
issue in this action, and partly due to discriminatory oppor-
21/
tunities within firms, which is at issue. However, Dr. Gwartney
does compare employment at Stockham to another firm - the United
22/
States government.
Dr. Gwartney labelled the United States government as
generally recognized as a "low discrimination firm". [T. Gwartney
1908-09] Dr. Gwartney reasons that since the disparity between
black and white earnings at Stockham was somewhat lower than the
dispartiy in the Federal government (only for blue collar workers,)
then this indicates that Stockham doesn't discriminate. Even if
Ty.g ignore the non—sequitor in this reasoning, the whole concept
falls on the basis of a faulty assumption — that there is real
equal employment opportunity in the federal government.
Unfortunately, as Senator Williams, a chief sponsor of
23/
the Employment Opportunity Act of 1972, stated
2 1/ The greater amount of Black unemployment obviously increases
the disparity between blacks and whites in labor markets; a second
factor and the only one that is comparable to the issue here is the
disparity in "firms".
22/ We will ignore
employment to private
the difficulties
employment.
in comparing government
23/ This Act amended Title VII, providing, inter alia, for
private litigation against the federal government. 42 U.S.C.
§2000e-16. The reason for this amendment was the failure of
the government to achieve equal employment opportunity.
14
"equal employment opportunity in the federal
Government is still not a reality for all of
its workers.
Some of the relevant statistics tell the
story all too clearly. For example, minorities
represent 19.4 percent of the total employment
of the Federal Government, but their concen
tration in grades GS-1 through GS- 8 indicates
that their ability to advance to the higher
levels has been severely restricted." =~z/
118 Cong. Rec. 4492 (1972)
At most, Dr. Gwartney's method of comparison may be
interpreted to mean that the economic results of discrimination
is somewhat less at Stockham than in some private firms and maybe
in the federal government. This is of no significance. The
Fifth Circuit has plainly held that even if an employee in "good
faith" intended a policy of no discrimination if, in fact, the
practices discriminated then the employer violated Title VII and
is responsible for back pay. Johnson v. Goodyear Tire & Rubber
Company, supra at 476; Pettway v. American Cast Iron Pipe Company,
supra at 251-63; Baxter v. Savannah Sugar Refining Corporation,
supra at 442-43. The argument advanced by Stockham is not even
one of "good faith" - just that they may be a little less guilty
than some.
The second method used by Dr. Gwartney was the relative
change in earnings of black and white workers employed at
Stockham during 1965 and 1972. Dr. Gwartney assumes that since
earnings of Blacks increased more than earnings of whites, that
24/ See"Analysis of Federal Employment," 118 Cong. Rec.
4492-93 (1972).
15
this indicates that Stockham did not discriminate since 1965.
There are just numerous problems with this analysis.
Actually there is little relative improvement in earnings
of Blacks compared to earnings of whites from 1965 to 1972. In
1965, according to Dr. Gwartney, Blacks earned on the average
$4,720 or $961 less than the $5,681 earned.by whites; in 1972
blacks earned $ 6,937 or $979 less than the $7,916 earned by
2 Vwhites. [CX 19] Dr. Gwartney, however, reads these stark
figures as indicating no (or less?) discrimination because the
black earnings as a percentage of white earnings rose from 83.1%
in 1965 to 87.6% in 1972.
Even this small change in relative earnings should be in
terpreted carefully. In 1965 it is admitted by Company managers
that the Company engaged in a complete and utter job segregation.
[See Pi. Prop. Findings, pp. 33-35] Obviously when you begin
from a system of total job segregation, any tokenism will result
in some relative improvement. Of course, Title VII requires
26/
affirmative relief and not just mere tokenism. Moreover, the
small relative change in earnings at Stockham is due, to a sig-
25/ In CX19, Dr. Gwartney transforms the 1965 dollars into
"constant" 1972 dollars. Besides showing the inflation in the
country since 1965, this transformation indicates that back pay
should be calculated in constant 1974 dollars.
26/ "This Court [the Fifth Circuit] has always recognized the
importance of granting full relief in Title VII cases. E.g.,
United States v. Georgia Power Co., supra, 474 F.2d at 927;
Voqler v, McCarty. 451 F.2d 1236, 1238-39 (5th Cir. 1971)."
Pettway v. American Cast Iron Pipe Co., supra at 243, n.82.
16
nifant extent, to the hiring of whites for the first time into
laborer positions and not to any real black advancement into
27/
higher-paying jobs. See Pettway v. American Cast Iron Pipe
Company, supra at 228.
The third criterion relied on by Dr. Gwartney involved
the comparison of earnings of recently hired workers (those hired
since 1965). Dr. Gwartney purports to find less earnings dis
parity with this group of employees than with older employees;
Dr. Gwartney infers that this indicates that Stockham has not dis
criminated since 1965. This argument falls on both the appli
cable legal principles and the facts.
Dr. Gwartney's refusal to analyze the various forms of
discrimination repeatedly ruled unlawful by courts causes serious
difficulty with his analysis. Stockham engages in several dis
criminatory practices which logically affect longer-term employees
more than recent employees: (1 ) the "lock-in" effect of the
departmental seniority system is a serious inhibition to older
employees transferring departments because the longer-service
employees stand to lose more departmental seniority, job security
and pay than do new employees; (2 ) the institution of the
Wonderlic Test in 1965 and the high school education requirement
for the apprentice program restricted the advancement of Blacks
hired prior to 1965 into jobs which they had previously been
2 7/ For example, Mr. Otto Carter, the Superintendent of the
Grey Iron Foundry indicated that it was not until 1968 - 1969
that whites were first hired in the laborer positions in that
foundry. [T. Carter 653-54; D. Carter 17, PX63]
17
contemporaries had freely moved without having to take the Won—
derlic Test or have a high school diploma; [See Section A, supra]
and (3 ) the institution of an age limit of thirty for entrance
into the apprentice program directly excluded the long-service
black employees who had previously been excluded on the basis
28/
of race.
Accordingly, the slightly smaller disparity in earnings
between recently hired black and white employees as compared to
the older employees is a function of the very nature of the dis
crimination practiced at Stockham and is not a function of any
significant amelioration of Stockham1s harsh discriminatory
practices.
Moreover, the disparity in the departmental placement and
earnings between Black and white workers has remained sub
stantial since 1965. Stockham continued to overwhelmingly assign
white employees hired after 1964 into the predominantly white
maintenance departments and the Blacks into the predominantly
black foundry departments. [See P. Br. 10-11]
The following chart clearly indicates the continued
gross disparity in earnings between Blacks and whites. [PX 95;
Appendix D. to Pi. Br.]
excluded from solely on the basis of race and to which their white
28/ The Company incredibly argues that the plaintiffs have
not shown that the age requirement has no adverse impact on Blacks.
[St. Br. 85086] Obviously if, as here, Blacks are for many years
excluded from an apprentice program and then an employer, as
Stockham did, institutes an age requirement for this lily-white
program, then that requirement is going to perpetuate the exclusion
of certain Blacks (those who are too old). Pettway v. American
Cast Iron Pipe Company, supra at 250.
18
MTIMRER AVE. RATE GROSS/REG. HRS .
YEAR B w B W B W
1965 106 31 3.17 3.91 3.97 4.47
1966 70 13 3.14 4.10 3.96 4.46
1967 25 20 3.18 3.80 3.93 4.40
1968 36 18 3.11 3.64 3.90 4.30
1969 72 24 3.10 3.68 3.76 4.18
1970 28 34 3.07 3.80 3.69 4.16
1971 125 77 3.07 3.56 3.68 3.96
1972 100 70 3.00 3.32 3.37 3.65
1973 273 127 2.89 3.19 3.16 3.44TOTALS AND 835 414 3.03 3.49 3.56 3.87AVERAGES
Dr. Gwartney's final method of comparison is regression
analysis: an attempt to isolate the effect of various factors
on earnings. Dr. Gwartney determined that race (considered alone)
influenced earnings - Blacks had lower earnings than whites.
[See, e.g., DX34] However, when other factors were included into
29/
the analysis, the effect of race on earnings was diminished.
Of course, the regression analysis, the analysis of the
effect on earnings-of various "factors", depends for its use
fulness upon the appropriateness and reasonableness of the
definition of the factors evaluated. Here again, Dr. Gwartney s
failure to review the employment system (and discrimination
practices) at Stockham creates fatal flaws in his analysis. The
factors "skill level" and "merit rating" were the major variable
which "explained" the disparity between the earnings of Blacks
and whites as a result of causes other than discrimination.
This analysis, is a sham, no matter how unintended. Both
these factors, themselves, are based on discrimination.
29/ According to Dr. Gwartney, only one factor, seniority,
indicated an increase in the effect of race on earnings. Of
course, in a system based on seniority one would expect that
seniority would be an important and crucial factor in determining
earnings. Interestingly, this factor, the only one used by Dr.
Gwartney in his regression analysis which had a direct relation
ship to the employment system at Stockham, was the single factor
which when analyzed with the racial factor increased the
"adjusted" dispartiy in earnings between Blacks and whites.
20
job class an employee worked. If an employee worked in job
class 10-73 he had "skill", if he did not then he lacked "skill".
is
[T. Gwartney 2117] This analysis, apart from being simplistic,/absurd
because of one overlooked fact: Blacks have been systematically
30/
excluded from jobs in job classes 10-13.
What a wonderful tautology! Blacks are excluded on the
basis of race from jobs in job classes 10-13; an analysis is then
made which defines"skilled" employees as those who are in job
classes 10-13; the analysis concludes that Blacks do not earn as
much a s whites, not because of their race, but because they are
31/
not "skilled".
The use of the factor "merit rating" is almost, but not
quite,as misleading as the use of the factor "skill level". Dr.
Gwartney's figures which he used for his regression analysis
indicate that Blacks averaged a 71.-3 merit rating whereas whites
averaged 79.3. [DX 55] When the merit rating factor is used to
to adjust the earning disparity between Blacks and whites, the
result indicates that some of that difference is the result of
"merit" as revealed by the ratings and not by discrimination.
"Skill level" was determined solely on the basis of the
30/ Until 1965 company managers admitted to total job segre
gation; of course, no "black" jobs were in job class 10-13. [See
PI. Prop. Findings, Section VI] This practice, except for some
tokenism continues. In 1973 221 whites were in JC 10-13 and only
6_ Blacks. Only 2 . 6% (not the 5% referred to in the Stockham's
Post-Trial Brief) of workers in JC 10-13 were Black. [PX 94,
Appendix E]
31/ Moreover, Blacks have been discriminatorily excluded from
the training programs which prepared workers for the more skilled
jobs. [Pi. Prop. Findings 56-60]
21
But the question which Dr. Gwartney did not answer was
whether racial bias accounted for the lower black merit scores
Dr. Gwartney admitted both, that
32/
"[it] was simply not the focus of my study as
to whether or not there were a bias on the
basis of race in terms of merit rating. . . . "
and that,
"if your statement were true that there is,
you know, blacks randomly at least score
lower because of having lower rating and
merit rating is positively influencing earn-
ings, that this factor would tend to reduce
the adjusted black-white earnings ratio."
[T. Gwartney 2157-58; 2160-61]
It is noteworthy that Mr. Tabaka refused to rely on the
merit ratings as a basis for his evaluation of testing at
Stockham because he realized the possible bias in such ratings.
Mr. Tabaka's refusal was justified - the ratings which he super
vised indicated that, for all practical purposes, black and white
workers were rated equally. [PX 32] Thus, the professionally
supervised ratings resulted in an equal evaluation of Blacks and
whites; whereas, the unsupervised ratings resulted, as Courts
have regularly perceived (See fn. 32, supra). in Blacks being
evaluated substantially lower than whites.
32/ ̂ This is a very pertinent question. Courts have re
cognized that discretion cn the part of a white supervisory
staff is a "ready mechanism" for discrimination. See Rowe v.
General Motors Corp.. 457 F.2d 348, 359 (5th Cir. 1972).
Until May, 1971, there was not one black foreman (foremen
prepare the merit ratings). [PX 11; T. Marsh 879-80] In fact,
discriminatory use of supervisory discretion is an issue in this
action. [See Pi. Br., Section III]
C. THE COURT CLEARLY HAS JURISDICTION OVER THE UNI§§/
DEFENDANTS PURSUANT TO BOTH TITLE VII AND §1981^^
AND THE COURT SHOULD HOLD THE UNIONS LIABLE FOR
ENGAGING IN DISCRIMINATORY AND UNLAWFUL PRACTICES
The defendant Unions, Local 3036 and the Steelworkers, do
not contend that there were no unlawful employment practices at
Stockham; rather, they contend that (1) the Court does not have
jurisdiction over the defendant unions because of the failure of
the plaintiffs to expressly name the unions in the original charge
to the EEOC, and (2) that, in any case, the unions should not be
held liable for the discriminatory policies at Stockham.
The defendant Unions base their jurisdictional argument
on the fact that plaintiffs did not expressly name the Union
defendants in their original charge to the EEOC, dated October
34/5, 1966. [PX. 56; See U. Br. at 4-5] The Unions state that
plaintiffs received their Notice of Right to Sue letters in
February 1970 and that this was prior to the filing of plaintiff
James' amended charge, which specifically named the Unions, on June
35/
1970. Thus, the Unions conclude that, since the plaintiffs did
33/ The Union defendants are also liable pursuant to duty
of fair representation, 29 U.S.C. §§151 et seg., National Labor
Relations Act. However, Title VII and §1981 plainly are
sufficient bases for liability.
34/ Plaintiffs have consistently asserted that this Court
has jurisdiction over the Unions pursuant to Title VII, §1981
and 29 U.S.C. §§151 et_ seg. See para. 2 of the Pre-Trial
Order.
35/ This action was filed in March, 1970 within thirty days of
the receipt of the Notice of Right to Sue letter.
23
not request a second Notice of Right to Sue letter based
specifically on the amended charge, the Court has no juris
diction. This argument is a misapplication of the appropriate
36/
law.
The defect in the exhaustion of the EEOC proceedings, if,
in fact there was a real defect, was one of form, which did not
in any way adversely affect the substantive or procedural rights
of the defendant unions.
The original charge filed by the plaintiffs detailed, as
one might expect, practices which the complainants thought were
discriminatory. [PX 56] The plaintiffs alleged, inter alia, that
the "Company has a dual line of promotion"; the Unions' argument
would be obviated if the complainants had added the words "which
are established or maintained by the collective bargaining agree
ment entered into by the Steelworkers and Local 3036".
Courts have not required laymen, unassisted by counsel,
37/
to file charges which meet the standards of pleadings. The
charges should be read in a reasonable manner by both the EEOC
and the Courts to include matters "reasonably related" to the
specifics which are alleged. See Sanchez v. Standard Brands, Inc. ,
431 F.2d 455 (5th Cir. 1970).
36/ The prerequisites to a Title VII suit are the filing of a
charge with the EEOC and the receipt of a statutory right to sue
letter. McDonnell-Douglas v. Green, 411 U.S. 792, 798 (1973);
Alexander v. Gardner-Denver Co., 39 L.ed2d 147, 157 (1974). See
Beverly v. Lone Star Lead Const. Co., 437 F.2d 136, 140
(5th Cir. 1971) .
37/ See infra for a discussion of Love v. The Pullman Company,
404 U.S. 522 (1972).
24
The EEOC gave the'October, 1966, charge a reasonable
interpretation: that the practices complained of by the plaintiffs
included allegations of unlawful union conduct. Accordingly,
the EEOC investigation included Union activities. [PX 55] Mr.
Erdreich in response to the EEOC investigation supplied a state
ment of the union position on March 20, 1967. [PX 60; PX 55] The
EEOC served a copy of their February 26,. 1968 Decision to the
38/
Local 3036 president, with a copy to counsel. [UT 1] Finally,
the EEOC sent a Notice of Right to Sue letter to the plaintiffs
39/
which listed both Stockham and Local 3036 as respondents. [See
Exhibit "B" to Amended Complaint]
The policy behind the requirements that a charging party
file with the EEOC and receive a Notice of Right to Sue is to
encourage the use of the conciliation process. See cases cited
in fn. 36, supra. Clearly, there was ample opportunity for all
the defendants to conciliate this action. As described above the
Unions were aware of the charges before the EEOC, participated in
the investigation and received a copy of the EEOC decision.
38/ The EEOC did not find reasonable cause to believe that
Local 3036 had violated Title VII; however, a finding of reason
able cause is not a prerequisite to suit. McDonnell-Douglas v.
Green, supra at 798-99; Alexander v. Gardner-Denver Co.,
supra at 158, n.8 .
39/ Judge Pointer has clearly held that an international union,
need not be named in the charge to the EEOC in order to be pro
perly before the Court in a Title VII action. Terrell v. United
States Pipe and Foundry Co., 7 EPD [̂9055 (N.D. Ala. 1973).
25
Moreover, on September 10, 1971 Judge Lynn ordered that
40/
this case be referred to the EEOC for conciliation. The case
ramined with the EEOC for conciliation for almost two years, until
plaintiffs motion to set aside the stay of proceedings, which was
unopposed by defendants, was granted on June 26, 1973.
The defendant Unions rely on a dry and technical argu
ment to defeat this Court's jurisdiction under Title VII; the
Supreme Court in similar situation strongly rejected this type
of formalistic reasoning.
"The respondent makes no showing of prejudice
> to its interests. To require a second 'filing'
by the aggrieved party after termination of
state proceedings would serve no purpose other
than the creation of an additional procedural
technicality.
Such technicalities are particularly in
appropriate in a statutory scheme in which lay
men, unassisted by trained lawyers, initiate
the process." (footnote omitted) Love v. The
Pullman Company, 404 U.S. 522, 526-26 (1972).
Under the Love standards the procedural "defect" raised by
the Unions is devoid of substance. Since the Unions were in
cluded in the initial investigatory and decision process, the
Unions were expressly named in an amended charge and the Unions
were parties to the action when it was remanded to the EEOC. See
also Local 179, United Textile Workers v. Federal Paper Stock
Company, 461 F.2d 849, 850-51 (8th Cir. 1972); Norman v. Missouri
41/
Pacific Railroad, 414 F.2d 73-85 (8th Cir. 1969).
40/ Of course
named in an EEOC
, as of this time the Unions had been specifically
charge filed by plaintiff James. [PX 57]
41/ The Eighth Circuit suggested that if joinder of additional
parties was warranted the appropriate administrative procedure could
be complied with on remand, Id. Of course, plaintiffs herein
cured any possible defect in administrative procedure shortly
after filing suit.
26
Finally, the plaintiffs have an independent right of
42/
action against the Union defendants pursuant to §1981. Caldwell
v. National Brewing Co., 443 F.2d 1044 (5th Cir. 1971) cert.
denied, 405 U.S. 916 (1972); Sanders v. Dobbs Houses, Inc., 431
F.2d 1097 (5th Cir. 1970), cert, denied 401 U.S. 948; see also
Alexander v. Gardner-Denver Co., supra at 158 & n.7, 9.
The Unions further contend that they should not be found
liable simply because they signed an unlawful and discriminatory
contract. The Unions further buttress this argument by pointing
out that they attempted to remove discriminatory sections from
43/
the contract.
42/ This Court is fully aware of the applxcabxlxty
so plaintiffs will not further brief the matters. See
Alpha Portland Cement Company, Civ. Action No. 73-611
Opinion) (N.D. Ala. Nov. 14, 1973).
0 -F f O l Q l
Reese v.
(Memorandum
However, it should be noted that the Supreme Court
has granted certiorari on the question of whether an EEOC
charge tolls the statute of limitations for a §1981 action.
Johnson v. Railway Express Agency, Ing,., petition granted
on June 3, 1974.
4 3/ There is some dispute as to the extent of these attempts.
Stockham maintains that there was "no serious proposal made by
Local 3036 during the 1970 contract negotiations". St. Prop. Findings
p. 158. (Stockham ignores the 1967 negotiations). The Unions
maintain that in the 1967, 1970, and 1973 negotiations they re- .
quested plant-seniority provisions. Unions' Prop. Findings, p. 3.
The Unions also maintain that they requested a Joint Apprenticeship
program, job posting, and elimination of tests. Unions' Br. p. 8 .
Stockham does not suggest any findings on these matters. See
Plaintiffs' Proposed Findings, pp. 31-33, 57.
The plaintiffs suggest that the resolution of these dis
putes does not affect the basic liability of the Unions but the
allocation of the liability between the parties. See, infra.
27
It is plain that the collective bargaining agreements
signed by the Unions contain discriminatory seniority provisions
which unlawfully limit the promotional opportunities of Blacks.
While it is true that, beginning in 1967, the Union attempted
during the negotiation proceedings to alter the discriminatory
provisions, these attempts may not be used by the Unions to in
sulate themselves from all liability.
The Unions - interpret Johnson v. Goodyear Tire & Rubber
Company, 491 F.2d 1364 (5th Cir. 1974) as supporting their position
The Unions interpretation is mistaken. They rely on one sentence
of Johnson which they read out of context; the Fifth Circuit
noted that the union was
"more than a passive participant in the con
tractual arrangements which furnished a sub
stantial contribution to the discriminatory
results evident here." Id. at 1381-82.
However, it is clear that the Fifth Circuit found the union
liable because it was a signatory to the unlawful contract and not
because the Court scrutinized union's positions during the
negotiation process.
"The Union's liability was based on the fact
that it is a party to the collective bargaining
agreement which contained the provisions re
quiring departmental seniority.
* * * *
Common sense demands that a union be held
to the natural consequences of its labors in
negotiating a collective bargaining agreement .
Guided by the facts of this case it would
be difficult to fasten liability on one party
to the labor contract which was a substantial
cause of the discriminatory employment practices
and grant total immunity from such liability to
the other party." (footnotes omitted) _Id. at 1381.
28
Moreover, the Court quoted with approval the Fourt Circuit's
explicit language: Id_. at 1381-82, n.57
"The rights assured by Title VII are not
rights which can be bargained away - either
by a union, by an employer, or by both acting
in concert. Title VII requires that both
union and employer represent and protect the
best interests of minority employees. Despite
the fact that a strike over a contract pro
vision may impose economic costs, if_ a_ dis
criminatory contract provision is acceded to
the bargainee as well as the bargainor will
be held liable." Robinson v. Lorillard, 444
F.2d 791, 798 (4th Cir. 1971) (emphasis
added by the Fifth Circuit).
Thus, as clearly stated in Johnson and Robinson the
union's negotiation position may not be used to defeat liability
if, as here, the union is party to an unlawful contract. See
also Bush v. Lone Star Steel Company, 373 F.Supp. 526, 536 (E.D.
Texas 1974).
However, while the negotiation positions taken by the
unions may not result in removing all liability, they may pro
perly be considered in allocating the burden of liability among the
defendants. Bush v. Lone Star Steel Company, supra at 537;
United States v. United States Steel Corporation, 371 F.Supp.
1045, 1060 n.39 (N.D. Alabama 1973); Sabala v. Western Gillette,
372 F.Supp. 1142, 1155-56 (S.D. Texas 1973); See Johnson v.
Goodyear Tire and Rubber Company, supra at 1382 (remand to the
district court for a distribution of back pay among union and
company according to the "principle of equity").
29
C O N C L U S I O N
The plaintiffs have not attempted to refute each of
the myriad "facts" set forth by Stockham; rather the plaintiffs
rely on their original brief and proposed findings which detail
the evidence relating to each pertinent issue.
However, there are several recent opinions and one
factual matter which plaintiffs would like to call specifically
to the Court's attention.
In their brief, plaintiffs requested the court to order
strong affirmative relief in the form of goals and timetables.
PI. Br. 34-35. The Fifth Circuit in three, recent unequivocal
opinions has strongly approved this form of relief. Franks v.
Bowman Transportation Company, 495 F.2d 398, 418-20 (1974);
NAACP v. Allen, 493 F.2d 614, 618-22 (1974); Morrow v. Crisler,
491 F.2d 1053, 1056-57 (1974) (en banc).
Similarly, three recent Fifth Circuit opinions follow the
earlier decisions of Johnson and Pettway which mandate that
district courts award back pay when employment discrimination
and resultant financial harm are demonstrated. Baxter v .
Savannah Sugar Refining Company, supra at 442-44; Franks v.
Bowman Transportation Company, suora at 421-22; Duhon v. Goodyear
Tire & Rubber Company, 494 F.2d 817, 819 (1974). See Pi. Br.
44-46.
In their proposed findings Stockham asserts, on the basis
of Mr. Adamson's testimony, that Stockham maintained differential
30
cut-off scores for Blacks and whites on the Bennett Mechanical
Comprehension test for qualification for the apprentice program.
The plaintiffs in their proposed findings ignored this testimony
by Mr. Adamson because it was so incongrous and incredible for
several reasons.
Firstly, Mr. Adamson's testimony conflicted with the
testimony of other Stockham supervisors.
Mr. Given answered under oath, dated January 10, 1974,
plaintiffs' first interrogatories. Interrogatory 29(d) requested
what the passing score was for any test used for "promotion",
advancement, or transfer". [ PX 17] Mr. Given's answer was
"[P]assing score is ambiguous. . . . A good score would be to
44/
answer 75% of the questions correctly." [PX 18] There was no
mention of any lower score for Blacks in the answer to the
interrogatory. [Id.]
Mr. Edward Glenn was the supervisor of employment from
January, 1969, to February, 1970; during this period Mr. Glenn
administered the Bennett Test1 in the manner in which he had been
instructed by Mr. Adamson. [T. Glenn 926-27, 929-30, 935-36]
Mr. Glenn testified unequivocably that there was no dual scoring
43/
4 3/ Mr. Adamson testified that the lower score for Blacks was
put into effect in 1968 or 1969. Blacks were required to score 35,
while whites were required to score 45. [T. Adamson 572-73] This
dual scoring system would have remained in effect until April, 1971
when all testing at Stockham was halted.
44/ There are sixty questions on the Bennett Test.
[T. Adamson 570]
31
system for the Bennett Mechanical Test. [T. Glenn 933 35]
Secondly, Mr. Adamson's testimony is incongrous in
light of clear evidence.
In 1969 Stockham reviewed their training programs.
A general report was approved on September 25, 1969 and a
special report on apprentice training was issued at a later
date. [PX 38, 43] Neither of these reports mention any con
sideration of or recommendation for a dual scoring system. [Id.]
In addition to the Bennett Mechanical Test an employee
had to attain a specific score on the Wonderlic Test. [T.
Adamson 579] Mr. Adamson testified that he never considered
establishing a dual scoring system for the Wonderlic; [T.
Adamson 582-83] Although Mr. Adamson, stated that he made
such consideration for the Bennett.
It is clear that the first Black did not enter the
apprentice program at Stockham until April, 1971, when the
Company halted all testing. [PX 12, 12a; See T. Given 283084]
Finally, Mr. Adamson's assertion that Stockham established
a special policy to assist Blacks to enter the apprentice program
just does not conform to the Company's lack of any program
32
to terminate the
or their effects,
program.
continuing discriminatory employment practices
or of course, of any affirmative action
Respectfully submitted,
DEMETRIUS C. NEWTON
Suite 1722 - 2121 Building
2121 Eighth Avenue North
Birmingham, Alabama 35203
JACK GREENBERG
BARRY L. GOLDSTEIN
JOHNNY J. BUTLER
10 Columbus Circle
Suite 2030
New York, New York 10019
JOSEPH P. HUDSON
1909 - 30th Avenue
Gulfport, Mississippi 39501
Attorneys for Plaintiffs
33
CERTIFICATE OF SERVICE
This is to certify that I served a copy of PLAINTIFFS'
REPLY BRIEF upon counsel for defendants, Benjamin L. Erdreich,
Esq., Cooper, Mitch & Crawford, 409 - 21st Street, Birmingham,
Alabama 35203 and John J. Coleman, Jr., Esq., Bradley, Arant,
Rose and White, 1500 Brown-Marx Building, Birmingham, Alabama
35203, by mailing copies of same in the United States mail,
postage prepaid on the 29 day of July, 1974.
Attorney for Plaintiffs