Best explanation of the production of these issues is demonstrated in, "United States Postage Stamps of the 20th Century, VOLUME 3, 1922-1935;©1935 by Max Johl, published by Lindquist Publications, Inc., New York., N.Y."
Go to the link below. Find pages 245 CHAPTER IV, MANUFACTURING and the process is explained there.
http://www.siegelauctions.com/enc/p...hl_Vol_3.pdf