Howard, here is part of the exact quote from Trailer Life:
"When grease (usually far too much and too often, if our reader mail is an indication) is pumped into the Zerk fitting, that grease travels back through the center hole and exits in the middle of the spindle. That spot is near the center of the wheel hub, between the bearings. The new grease is added to the existing grease in the hub and displaces some of the old grease that exits from the outer surface of the inner and outer wheel bearings."
As you can see in Larry's photos the grease comes out between the seal and the inner bearing.
Larry, thanks for the photos. I know that you want to develop a responsible maintenance schedule for your spindles. From my experience, the quality of parts are all over the map and what might work for work or fail is only a wild guess. I have had bearings that were manufactured incorrectly and the failure process started on the first revolution. I still have the original wheel bearings in my 39 year old van and they were only serviced when brakes were replaced. Following are just a couple more issues that I have found with these cheap axles.
Now take a close look at your photo showing the grease coming out of the hole. Look at the shoulder where the bearing rests, that narrow lighter colored band on the seal diameter is the only contact area and that marginal has to take all the lateral thrust as the trailer rounds a curve. Look for a burr there because it can damage a new seal. As that shoulder gives way, bearing clearance increases. Of course others have already dismissed me when I called attention to this extremely poor design previously.
Another reason for pulling hubs is for brake inspection. In PA, one hub is pulled from each axle every year at a Pennsylvania inspection station. You need to check for broken of missing parts, brake lining wear, grease contamination, worn armature and magnet, and electrical issues. For example, look at your green wires and notice how close they come to moving parts.
I think there is no way to nail down an ideal schedule, if I would have used the recommended 12,000 miles, I would have been on the side of the highway multiple times. I am fighting back by using the best bearings and grease I can find and recognizing junk when I see it.