IN THE COURT OF COMMON PLEAS OF PHILADELPHIA COUNTY

                          FIRST JUDICIAL DISTRICT OF PENNSYLVANIA

                                    CIVIL TRIAL DIVISION


                                           - - -

                  LEROY AND CAROL STOUT, H/W     :  OCTOBER TERM, 1998

                      VS.

                  PORTEC, INC., AND LABOR READY, :  NO. 653
                  INC., AND MORRISVILLE SUPPLY CORP.

                                           - - -

                                 COURTROOM 253, CITY HALL
                                 PHILADELPHIA, PENNSYLVANIA

                                           - - -

                                       MAY 7, 2001

                                           - - -

                  BEFORE:  HONORABLE VICTOR J. DI NUBILE
                                         AND A JURY

                                           - - -






                       GEORGE D'ANGELIS, R.P.R., OFFICIAL COURT REPORTER
                                    LAND TITLE BUILDING
                                    100 S. BROAD STREET
                                        SECOND FLOOR
                             PHILADELPHIA, PENNSYLVANIA, 19110
                                       (215) 683-8056


                                           - - -
 











                  APPEARANCES:


                               BY: FRANK D. BRANELLA, ESQUIRE
                               MARC SYKEN, ESQUIRE
                               COUNSEL FOR THE PLAINTIFFS



                               LAW FIRM: POST AND SCHELL, P.C.
                               BY:  GLENN M. CAMPBELL, ESQUIRE
                               COUNSEL FOR LABOR READY INC.



                               LAW FIRM:  EISEMAN, MYERS & LIERO
                               BY:  STEVEN LIERO, ESQUIRE
                               COUNSEL FOR MORRISVILLE SUPPLY CORP.



                               STRADLEY RONON STEVENS & YOUNG, LLP
                               BY:  JEFFREY A. LUTSKY, ESQUIRE
                               HOUSE COUNSEL FOR PORTEC, INC.



                               CHAMBLISS, BAHNER AND STOPHEL
                               WILLIAM DEARING, ESQUIRE
                               COUNSEL FOR PORTEC, INC.
 







                                           INDEX
                                           _____

                  WITNESSES:

                                      DIRECT   CROSS   REDIRECT  RECROSS


                  JEROME STALLER      4        13       20
 
                                                                             4




         1

         2

         3                           THE COURT:  YOUR NEXT WITNESS,

         4               MR. BRANELLA.

         5                           MR. BRANELLA:  AT THIS TIME I'D

         6               LIKE TO CALL DR. STALLER.

         7                           COURT CRIER:  PLEASE STATE YOUR

         8               FULL NAME FOR THE RECORD.

         9                           THE WITNESS:  JEROME M.

        10               STALLER.

        11                           COURT CRIER:  PLACE YOUR RIGHT

        12               HAND ON THE BIBLE.

        13                     DO YOU SWEAR THAT YOU WILL ANSWER

        14               TRUTHFULLY ALL QUESTIONS PUT TO YOU

        15               TOUCHING THE MATTER NOW BEFORE THIS COURT

        16               SO HELP YOU GOD?

        17                           THE WITNESS:   I DO.

        18

        19

        20                         -      -      -

        21                        DIRECT EXAMINATION

        22                         -      -      -

        23        BY MR. BRANELLA:

        24        Q.     COULD YOU PLEASE INTRODUCE YOURSELF?
 
                                                                             5




         1        A.     JEROME M. STALLER.  I AM AN ECONOMIST.

         2        Q.     PLEASE TELL US YOUR EDUCATIONAL BACKGROUND,

         3        SIR?

         4        A.     SURE.  I RECEIVED MY BACHELORS DEGREE IN

         5        ECONOMICS AND THAT WAS FROM TEMPLE UNIVERSITY IN

         6        1967.  AND I WAS AWARDED MY PH.D. IN ECONOMICS AND

         7        STATISTICS.  AND THAT WAS FROM TEMPLE IN 1975.

         8        Q.     AND YOUR GOVERNMENT EXPERIENCE?

         9        A.     YES.  I STARTED WITH WHAT IS KNOWN AS THE

        10        PAY BOARD WHICH WAS PART OF THE WAGE AND PRICE

        11        CONTROL PROGRAM IN 1972.  I WAS A LABOR ECONOMIST

        12        WITH THE PAY BOARD.  SOMEONE MAY HAVE BEEN AROUND

        13        WHEN THAT HAPPENED.  BUT WE WERE CONSTRAINING THE

        14        RATE OF WAGE I