Document oe9dM9oe3vgGGrLoymVmOaaB3

Rv^unh iiuJ De\ehpinvni C'ni\ 26 s Research Activity at High Level The company's expenditures tor research exceeded 53.3GO.OOU in 1961. Over half ol this amount was spent in the areas of hydraulic and clectrohydrajlic products and systems for aerospace and industrial uses. Denison Division s redesigning its hydraulic puntps tc improve quality and performance while, at the same time, reducing manufacturing costs. This division is also developing hydraulic systems with advanced sensitive electronic controls for industrial applications. Raymond Archley Division has developed advanced design hydraulic serve-valves for missiles ur.d aircraft. Also, servo-valves developed for use m Denison Division's industrial hydraulic systems are now being pro duced. This div ision is also currently working on the dev elopment of modu lar electronic control systems which premise great versatility and conse quent lower cost. The Kellogg Division designed a hydraulic pump and motor package which contributed to the successful firing of the Nike Zeus anti-missile missile. The research activities of the hydraulics divisions arc integrated and co ordinated with :he over-all objective of increasing the company's capa bilities in the field of sophisticated systems and controls. In the field of metallurgy further development of the ceramic molding process, coupled with a broadening of the applications of high strength steel castings in defense requirements, will increase the degree of the com pany's foundry specialization. Under sponsorship of the Air Force, addi tional castings research is under way which is aimed at improving the mechanical properties of alloys by chemical and process modifications. Several new abrasion-resistant alloys have reached the field test stage. These may lead to proprietary alloys with enhanced wearing characteristics for crusher and bail mill applications. Work on improved precision forging techniques is centered around high energy impact type extrusions of sintered powder compacts and billets of vacuum cast refractory materials. Employee Relations The success of Brake Shoe is attributable to the efforts and contributions of many people. In 1961. relations w ith enpploye.es were generally satis factory. Only one work stoppage of any consequence occurred and it in volved a small number of employees in one plant. An average of 9,S32 men and women were employed by Brake Shoe throughout North America and Europe. Payrolls and employee benefit costs totaled 560.495,000. Brake Shoe employees have many benefits other than wages which help to make jobs with the company attractive. The following programs are in effect in American Brake Shoe and Dominion Brake Shoe companies. Pension programs provide monthly retirement benefits for eligible em ployees who have reached retirement age or have become totally and per manently disabled. At the end of the year, 1,310 retired employees were receiving monthly retirement benefits. A group insurance plan provides employees with life insurance con> mensurate with their level of wages or salaries. The plan also provides broad sickness and accident coverage for hospital, surgical and medical expenses. Benefits of approximately 52,200,000 were paid to employees or their beneficiaries during 1961. Benefits paid under the group in surance plan since its inception amount to approximately $20,000,000. SCI 01839