Does anyone know the story and is it true?

True, but your facts are a bit off. It was in a magazine a few months ago
but I forget which one and they mentioned the hole maker's business names
and all if I remember correctly.

The first company sent off a very small drill to some other company bragging
about their hole drilling capability being so small, etc. Company #2 sent
the drill back with a hole drilled in it across the diameter of the shank.

That's much closer to the true story but I'm sure it is missing some details
or has "static" from my brain added.

Regards,
Joe Agro, Jr.
http://www.autodrill.com
http://www.multi-spindle-heads.com

V8013