December 3, 1987

Executive Committee of the American Institute of Physics

Minutes of Meeting

1. Convene – Roll Call
The meeting was convened at 5:00 p.m. at Loew's Summit Hotel.

Member Present:
Hans Frauenfelder, Chairman of the Board
Kenneth W. Ford, Executive Director
Roderick M. Grant, Secretary
William W. Havens, Jr.
David Lazarus
Edward N. Sickafus
F. Dow Smith
Jack M. Wilson

Member Absent:
Peter B. Boyce
Martin Walt

Non-voting participants:
Robert T. Beyer (ASA)
William L. Duax (ACA)
A. F. Spilhaus, Jr. (AGU)

Staff Present:
Gerald F. Gilbert, Treasurer
Robert H. Marks, Managing Director of Publishing
John S. Rigden, Managing Director of Physics Programs
Bernard Dolowich, Controller (4 December)
Lawrence T. Merrill, Assistant to the Executive Director (4 December)
Paul A. Parisi, Manager, Special Projects (4 December)
Nathalie D. Wagner, Assistant to the Secretary

For clarity in presentation with reference to the printed agenda, events recorded here are not necessarily in the same chronological order in which they appeared.

2. Report of the Secretary

  1. Minutes of 10-12 September and 28 September 1987
    Secretary Grant presented these draft minutes which were approved by acclamation with no corrections.

3. Remarks by the Chairman
Frauenfelder said that further discussion of the space issue must await the receipt of more information from the Member Societies.

4. Report of the Executive Director

  1. Space Issues - Meetings of the Society Governing Bodies
    Ford referred to his 3 December 1987 memo to the Executive Committee which contained his comments of his meetings with Member Societies to date. He said his attendance at these meetings has been valuable to him in several ways. He reviewed the positions, as known, of the Member Societies; it appears likely that most or all of the resident Societies favor keeping the AIP headquarters in New York, and most of the other Societies favor a move to Washington, or at least an increased AIP presence there.

  2. 1989 Budget Calendar
    Ford referred to his 3 December 1987 memo to the Executive Committee on the 1989 budget calendar. He said that he is concerned about the present budget process: there has not been enough time for the directors and officers of the Institute to discuss the budget with the managers, and there is great pressure on the Treasurer's office. He hopes in 1988 to start discussions with the Executive Committee in February and to generate a figure by summer in order to give a status report to the Executive Committee in September, with final approval of the budget in December.

    Gilbert thought the computerization of the budget, a crucial factor in the budget planning process, could be done within a year.

  3. Role of Governing Board in Long Island Site Selection
    Ford next referred to his 3 December 1987 memo to the Executive Committee on site selection for Long Island Publishing Center. Management is searching for a suitable site, with the assistance of William Weinbaum, AIP's real-estate consultant. Ford said he wants to move faster on this after the first of the year. Should we have a committee of the Executive Committee or Governing Board to help review sites?

    There was agreement that this as a policy matter has already been settled. Outside committees would only slow up the process. This is a management job.

  4. Recommended Long-Range Planning Committee
    Ford referred to his 29 October 1987 memo to the Executive Committee on long-range planning. He said that Management has committed itself to developing a five-year plan. This needs to be based on consistency among roles, aspirations, and budgeting prospects of the various divisions. He proposed to proceed by forming a working committee, other than the Executive Committee, consisting of about half Society representatives and half staff members, which would work on the plan in the first half of the year.

    Havens said that for several years there has been discussion on the matter of long-range planning. It was agreed that the Executive Committee had to serve in this capacity. If the Executive Committee wishes to have subcommittees, it could do that, but it is not the responsibility of another committee of the Governing Board.

  5. Material Research Society re Associate Member Society Status
    Ford said he attended the recent MRS meeting in Boston and discussed with their governing body the question of applying for a status other than their current status of Affiliated Society. Our new rules produced no obvious financial benefit to them. He had hoped that the special rate on Physics Today ($12.50 instead of $25.00) would be appealing for their members. They will think about it. He thinks they may apply for full status. They are interested in other activities beside publishing, which AIP already does for them.

5. Matters Preliminary to Budget

  1. Subscription Fulfillment Update
    Marks referred to his 23 November 1987 memo to Ford, and to the 19 and 20 November 1987 memos to him from Dolowich. He said we are proceeding along two fronts: 1) debugging of the AZTECH system and 2) searching for alternate software. All the software packages examined would require major modification; all are expensive. Grenier has the most experience; their cost would be $240,000 for software plus $425,000 for IBM hardware.

    The goal is to do a parallel APS billing, beginning in February. So far we are on target with projections. The most problematic is file maintenance; staff expects to complete this last module early in 1988. A letter of intent has been given Data General for purchase of an MV15000 computer; this can be cancelled at no cost to AIP. The staff sees an advantage in proceeding in this manner: the equipment can be delivered within 30 days of purchase order and the additional power is needed to satisfy normal data processing requirements as well as the full parallel test.

    Frauenfelder asked what we would gain by buying Grenier software and IBM equipment. What would we have to discard?

    Marks said that if we went this route, we would have to abandon much of the AZTECH work, resulting in a further delay. We need the new computer to be fully operational. The staff recommendation is not to buy from Grenier, but rather to continue the AZTECH system and with the addition of the second Data General computer.

    (See also discussion of the Data General under Agenda Item 7.C.)

  2. Short-Term Space Needs in New York City
    Ford reviewed his 24 November 1987 memo to the Executive Committee re: short-term space needs. Management does not anticipate more space requirements than are currently available in New York for 1988.

  3. Proposed Study of AIP Development Needs
    Ford referred to his 29 October 1987 memo to the Executive Committee re: consultant study of development needs, and proposal from Harry Staley of Staley/ Robeson/Ryan/St. Lawrence. He requests approval for an audit of AIP's development needs by this firm, at a cost of $10,000. This item is not built into the draft budget. The firm was used by the OSA and is recommended by Smith. Staley came to the Institute for a talk before submitting his proposal.

    Rigden said he thought the AIP programs have appeal. The question is how to tap resources to get support.

    Grant said that the proposed feasibility study seems like a logical step. We were reluctant to set up a development office in September. Why not at least get this kind of information so as to know how to proceed. It will be important to seek external funds for projects in the future.

    The following mot· on was made by Wilson, seconded by Sickafus, and unanimously CARRIED.

    MOVED that approval be given for the expenditure of $10,000 for a study and audit of AIP's development needs, as outlined in the 29 October 1987 memo from Ford to the Executive Committee.

  4. Policy on Computers at Home
    Ford referred to his 3 December 1987 memo to Executive Committee on computers at home and a draft of the proposed policy. Ford said this topic arose from individual requests from staff who need to work at home on AIP related business outside of normal hours. Management decided that they did not want to place AIP owned computers in people's homes, so they came up with the idea of cost-sharing. The memo details the principal features of the policy, as follows:
    - AIP assistance will be by outright subsidy of employee-owned computers rather than providing AIP-owned computers on loan.
    - Subsidy will be limited to one-half the cost (excluding printer) up to $1,000 maximum.
    - Only certain categories of employees may apply, and must justify the need to use a computer on AIP business outside of regular working hours.
    - The Personnel Committee will administer the policy.

    The following motion was made by Sickafus, seconded by Wilson, and unanimously CARRIED.

    MOVED that a Policy on Computers at Home be established for which specified categories of AIP employees would be eligible, as outlined in the 3 December 1987 memo from Ford to the Executive Committee.

    (The meeting recessed for dinner at 7:00 p.m.)

6. Executive Session
Following dinner, the staff were excused from the Executive Session, which is reported in the official minutes only.

(The meeting resumed at 8:30 a.m. on 4 December in the Compton Board Room at AIP Headquarters.)

7. 1988 Budget

  1. Introduction
    Ford stated that the draft budget had been built around the philosophy, adopted by the Governing Board, that there should be a balanced operations budget when short-term investment revenue is applied, and a positive net revenue for the entire budget when long-term investment income is included.

    The 1986 net in the operating budget (exclusive of long-term investment income) was $1.9 million; 1987 net is budgeted at $404,300 and is now projected at $208,500. In the 1988 budget the net revenue is budgeted at $12,300. The total investment income has been slowly declining. There are two general concerns:
    I) What principal new things account for the increased expenditures?
    1) Added strength in management, and
    2) Increased activity in physics programs.
    8-1/2 new positions are budgeted. Two of these are senior positions at the branch head level, and support staff. 6-1/2 are in management and support; 2 are in physics programs. The latter include substantial strengthening of the Education Division, which he hopes to increase beyond the SPS activities. The Senior Education Fellow will be budgeted for a full year in 1988.
    II) He thinks the budget is prudent in two senses:
    1) Long-term investment income is budgeted conservatively.
    2) Expenditures are budgeted on the high side.

  2. Operating Budget

    General Operations: Gilbert
    Gilbert began the review of the budget with the 1988 Summary Statement of Operations (page 1). This statement includes activities for Member Societies, and depicts the total magnitude of the Institute's operations.

    Total Revenue: Publishing Operations total: $45,009,000.
      General Operations total: $2,273,000.
      Other Operations total: $7,406,000.
      AIP income: $28,600,000 (52% of the total)
      Societies: $23,500,000 (43% of the total)
      IOP: $2,600,000 (5% of the total)
      Total: $54,700,000

    He then reviewed the Combined Statement of Physics Programs Supported by AIP and Outside Sources (page 3). This special statement has been prepared in prior years in response to the question of the dollar magnitude of AIP's physics programs. In 1988, AIP support is budgeted for $3,072,100; outside support is budgeted for $483,400; total dollar magnitude is budgeted for $3,555,500.

    Gilbert then reviewed General and Administrative Expense (page 67), which shows a large increase. Meeting rooms (page 70) are a significant item, with increases here in part due to the acquisition of space on Long Island which is as yet unassigned.

    The increase in Administrative Offices (page 67) resulted from changes in prorations of the officers for time spent in the general management of the Institute. This portion represents running AIP as a corporation, independent of individual operations.

    Referring to Net Operating Revenue (page 4), Gilbert said that in 1987 we budgeted for a net of (-$395,700) and expect to have net of (-$641,500), exclusive of investment income. The comparable figure budgeted for 1988 is (-$943,100).

    In response to concern over the magnitude of the budgeted deficit that was expressed by several members of the committee, Gilbert agreed it is not prudent to become dependent on investment income. In the years 1982-86 we were in a position of positive operating income so the reserves went up. Starting in 1987, there is no longer any operating income he can put into reserves. Accordingly, we are completely dependent on investment income to increase our reserves.

    The Short-Term Investment Income projected for 1987 is $850,000. Practically all of this income has been realized. A net of $950,000 is budgeted for 1988. The major source of funds for this investment is subscription revenue.

    Smith asked if the daily balance kept in this account is more than needed. This question has been raised in the meeting of the Committee of Society Treasurers. He asked what the low level in the account would be over a year.

    Gilbert said that experience shows that the balance fluctuates due to billing cycles. He said the low balance was probably close to $6 million.

    Smith asked why that much of a cushion is needed, and could some of the balance not be transferred to long-term investments.

    Gilbert said if we decrease the balance and then become short in working capital, we would have a cash flow problem. We have a large amount of cash receivable from the Member Societies and some Societies do not pay promptly. We have unusual payments at certain times of year, such as the Soviet royalties, and the timing is difficult.

    Frauenfelder asked how much risk can be tolerated, and can scenarios be calculated with a computer.

    Gilbert said he would study the matter further.

    Net Operating Revenue: Short-term investment income is now being credited to operations. As a result, the net operating Revenue for 1987 is projected at $208,500. 1988 Net Operating Revenue is budgeted at $12,300.

    Non-Operating Revenue - Long-Term Investment Income - Net: This figure consists of three elements: interest and dividends, plus realized capital gains and losses, less investment fees on securities held in our reserve accounts. Projection for 1987: $1,015,000. Practically all of this income has been realized. The 1988 budgeted figure for non-operating revenue from long-term investment income is conservatively budgeted at $750,000. Total Net Revenue projected for 1987: $1,223,500. Total Net Revenue budgeted for 1988: $762,300.

    Publishing Operations: Marks
    Marks began a review the Publishing Operations with an overview of the net operation (page 4). The 1987 budget projection is about on target. He reviewed the line items, then turned to the AIP Archival Journals: Summary Statement of Revenue and Expense (page 5). He noted the drop in 1987 projected microfilm income and expense from the budgeted figures; sales dropped almost 50%. The number of pages published is 2300 below projections. Ad sales in RSI and APL were a little less than budgeted. Subscriptions had been budgeted for a 4% drop and the projection is for a 3.7% drop. 17% more pages are budgeted for 1988. These journals are generally in healthy shape. He then reviewed the journals individually. (Archival Journals: budget, pages 5-11.)

    Applied Physics Letters is now a weekly. There has been an increase in submissions, and a 10% increase in pages is projected. Subscriptions to this journal went up. We also published a five-year cumulative index, which is included in the projection for 1987.

    Journal of Applied Physics has large swings in pages, depending on the Magnetism Conference. Next year there will be two conferences. The income is on target. Subscription decreases are less than projected. This journal is in healthy shape.

    Journal of Chemical Physics pages are more predictable and income is on target. The total pages are slightly more than budgeted. We are budgeting for an 8-1/2% increase in pages.

    Journal of Mathematical Physics now has no page charges. Pages are budgeted conservatively. The net revenue is higher than budgeted. Drop in subscriptions is between 4-5%. We have no long-term experience on budgeting published pages without the insurance-like protection of page charge income.

    Physics of Fluids: Marks said they are looking at the possibility of splitting this into two journals: Plasma and Fluid Dynamics. The editors of these two divisions of the journal now operate almost independently.

    Review of Scientific Instruments: This journal has made more money than budgeted because the number of published pages expected did not show up. It is competing with Nuclear Instruments and Methods for pages and conferences, but fewer pages and conferences have been published in RSI. The Soviets still translate cover to cover and pay AIP a substantial royalty.

    Soviet translation program: (Budget: pages 12-29). Pages have not increased in recent years, and expenses are on target. JETP is the best seller, with about 1000 subscriptions. Amounts in the budget reflect the last half of 1986 and first half of 1987. 1988 issues will be published by mid-1989. These will be the end of the current contact. We will have to renegotiate the contract before that time, and this will have a major effect on the 1989 budget. (See Agenda Item 9.B.)

    Marks then reviewed Physics Today (page 32). The 1987 projection is comparable with the budget; ad income is slightly up. The 1988 Buyers Guide income is also up. Expenses are slightly down. The net loss of about $449,000 for 1987 is $143,000 less than budgeted. We plan to increase the 1988 ad rate, reflecting the increased circulation and are budgeting $3 million in ad sales. Editorial pages will be increased. Editorial management is 25% of the total cost. The net loss is budgeted to decrease to about $162,000.

    Rigden said that the PT increase is basically an increase in editorial management. There are two new salaries included. One is a new position and they are recruiting for a replacement.

    Beyer and Wilson, noting an increase, thought the amount budgeted for travel seemed high. Marks said the advisory committee encourages expansion of European coverage and our Japanese contacts. A European office has been discussed but nothing has been settled. The staff is encouraged to attend meetings; there is no substitute for that. Magazines of this type have to have considerable travel.

    Grant said one of the goals has been to get PT more on schedule. Rigden said this has improved, and Marks noted that it takes two weeks for delivery. Grant replied that maybe the target date is off; perhaps the mailing should be done earlier. It is a priority to get the magazine to readers on time, before discussing the advisability of a European office.

    Rigden said the Advisory Committee encouraged increased coverage.  Candidates are now being interviewed for a successor for Tom von Foerster (former Managing Editor who has moved to the Books Division) and timeliness is being stressed.

    Marks reported that 25,000 copies of the premier issue of Computers in Physics were printed. The APS billing resulted in a 22% return. They anticipate 15-16,000 circulation and considerable advertising support. There have been problems in getting archival articles; the rejection rate has been high. To compensate for this, they are giving more content in the news section, so an additional editor is budgeted. All new subscribers get the premier issue free. It has been sent to all library subscribers of PT. The non-member price is $250; there have been complaints on the price relative to the size of the journal. He invited any comments and suggestions on the development of this journal and extended appreciation to all the Member Societies for listing this on their dues billing.

    Marks then reviewed Information Services (page 37). This was budgeted for a modest gain in 1987, but one contract (Engineering Information) was cancelled, so there is a projected loss of $50,000. Current Physics Index (CPI) is a byproduct of journal production; one-half of the AIP journal article charge revenue goes to CPI the other half to GPAA. More subscriptions to GPAA were lost than expected. A separate division has been formed, called Information Services Division. These services absorb part of the cost of journal production. It may be a good time for a review of cost allocations in this area.

    OSA has now made an arrangement to provide AIP with an advance tape of their journals, so these will be included in CPI and will be promoted. This is a service and only aims to break even. Not many library subscriptions have been received as yet; the number is not up to PR Abstracts, which has about 400. APS is considering dropping PR Abstracts, which would definitely affect this publication.

    CPM has only three subscribers. It makes a slight net. It has not taken off as he had anticipated. Lazarus wondered if it is worth it for so few subscribers. Marks said it is done by our regular microfilm supplier at little expense. Parisi added that the work is computerized, so there are no production costs. Marks said this could be reviewed in the Committee on Publishing Policy.

    Marks said SPIN is kept on the market to protect the copyright of abstracts. It has four subscribers.
    DOE pays about $18 per item. We have to do special indexing for it. There are about 8-9,000 articles per year of interest to them. He had proposed a price increase, but if it were implemented they would only take the number of articles to equal the present price.

    Merrill reviewed the PI-NET budget (page 44). The 1988 budget is set to try to recoup most of the telephone charges. The major costs (training and software maintenance) will drop off in 1988 after the initial development is completed. PI-MAIL (page 44) revenue should more than match the costs. The total amount will not show up directly because it requires a lot of staff work. They hope to bring PI-MAIL onto the Gould computer, which will eliminate the charges paid for Telemail. Charges for use will remain the same, thus adding to the income.

    Marks reported that the Graduate Programs Book (page 46) has a projected 1987 net of $23,000. The Directory of Physics and Astronomy Staff has a slight loss.

    Conference Proceedings and Books (pages 47-48) show a projected slight loss due to titles not yet sold and the addition of a senior staff member.

    JPCRD (page 49) is budgeted conservatively. The revenue is good on this journal.

    Other Publishing Operations (page 50) include revenue from IOP, advertising, CPR, and Engineering Information. The e are budgeted with an overall net revenue of $66,600.

    Physics Programs: Rigden
    Rigden said he does not understand or feel comfortable with the budget process; many things, such as prorations, were in place before he arrived. Next year he will know what is going on. In all divisions, the increases are basically due to salary increases and the additional personnel outlined by Ford in his Introduction.

    Career Placement (page 53): The major increase is a new position.

    Education and Employment Statistics (page 54 and 55): Increase is due to a new position, which was approved in 1986 but not added until December 1986.

    Education Division (page 56): The major increase here is in salary. The manager of the Education Division, Dion Shea, has resigned and will be replaced. Rigden has requested a staff position to coordinate the 500 SPS chapters, get it into the high schools, and promote the interests of SPS. This will leave the manager of the Education Division free to do other educational projects.

    SPS (page 62): there are two major changes: Student dues are being increased from $10 to $13. This will result in an additional $10,000 revenue in the budget. Every SPS member will receive a gratis subscription to the Journal of Undergraduate Research, an expense of $12,400.

    Physics History (page 58): This budget is up 14%, due to salaries and addition of more part-time help.

    Public Information (page 61): Increases here are not due to salary but to two new programs. They are developing a new brochure for junior high students, written by Ben Patrusky, which is budgeted at $69,000 (mainly production and printing costs). $12,000 is designated for physics bibliography and reference charts, to be created for walls of schools and science writers.

    Ford reviewed the budget for the Washington, DC office (page 63). It is not a cost center but rather spread over several areas. He reviewed the special projects. The Office of Public Affairs (page 65) is partly in Washington. This includes the Federal Awareness Service, approved in September 1987. Budget for the Senior Education Fellow (page 66) was one-half year in 1987 and will be a full year in 1988. Watkins is paid by her institution, which is reimbursed by AIP. The Visiting Scientist Program budget is up due to a projected increase in activity.

    General and Administrative: Dolowich
    Accounting Division (page 72). The expenses here remain stable. There are no staff increases.

    Data Processing Division (page 96). The Management Committee instructed him to prepare the budget as if we were completing the AZTECH software. Part of this is in depreciation. A major increase is reflected in the salaries of two new programmers added since the summer.

    Subscription Fulfillment (page 97). Dolowich reviewed this Division, which is made up of four Sections: Cashiering, Control, Membership, and Nonmember. Effective l July 1988 the Fulfillment Division will be reorganized: Control, Membership, and Nonmember Sections will be replaced by Member and Subscriber Service, and Selection Section. Cashiering will remain the same. They tried to shift some of the costs to G & A as they felt uncertainties about staffing when the system is completed have resulted in some fulfillment costs being higher than they have to be.

    General and Administrative Expense (page 67). The accounting treatment of amortization of AZTECH software is regulated by the Financial Accounting Standards Board. It is no longer proper to defer costs and write them off over a five-year period; in their report Touche Ross said this was not an acceptable procedure. They would tolerate write-off of $170,000 per year over a three-year period. Data Processing charges in G & A includes $50,000 in 1987 and $100,000 in 1988.

    Gilbert added that the G & A expense is entirely AIP and is charged against AIP income. The only G & A charged to journals is proration of administrative offices (editorial management). He referred to page 4 (summary statement). The Executive Committee had not wanted 100% of G & A in General Operations, so here 50% is charged to General Operations and 50% to Publishing Operations.

    Dolowich said the cost of Pubs and Reprints (page 104) was questioned last year by Lustig. As a result the method was reviewed and changed. It consists of two factors: the number of invoices prepared and the number of reprints ordered. The new method can more equitably charge the users of the division. The figures shown in the budget are not consistent with the 1986 figures, but they are equitable.

    Publication Sales (page 105). This is now an automated billing operation. There are more people in this Division now due to a greater work load from the Books Division. They will review the method of proration for this area in the coming year.

    Gilbert then reviewed the areas of Finance and Administration. The total Personnel payroll, if the draft budget is adopted, is $13.5 million. We now have a total of 564 employees.

  3. Capital Expenditures Budget
    Gilbert began the review of the Capital Expenditures Budget. It is in three parts. The first part shows $123,000 in expenditures approved by the Management Committee since last year. He noted that they are authorized to approve expenditures not to exceed a unit cost of $10,000. The 1988 budget includes $316,610 carryover from 1987. There are plans to computerize this budget, but Dolowich has had no time to devote to this as yet.

    Ford said the present system for management approvals with a report to the Executive Committee is a workable one. He hopes, however, the total for this will not be as high in 1988.
    Ford said the total 1988 Capital Expenditures Draft Budget is $969,000. He distributed a handout showing an overview of the areas of expenditures. Much of it is in computers.

    Approval of the 1988 Budget
    A motion to approve the 1988 Operating Budget was made by Wilson, seconded by Sickafus, and following discussion reported below, unanimously CARRIED.

    MOVED that the 1988 operating budget of t e American Institute of Physics, as depicted in the "Summary Statement of Operations" and amended at this meeting, totaling net revenue of $757,000, be approved.

    Lazarus said he has a concern regarding the physics programs. There are many major increases, which change the net in a substantial way. He expects to see new physics programs, but these are all increments to existing programs. The spending is up to the limit. The publishing revenue is no longer covering us, and we have to use short-term income for these expenditures. Rigden has given explanations for all the items, but the increments are enormous. We also now have a risk from the Soviet translation program. The budget position has gone from favorable to marginal. We have not paid attention to the many little requests, which add up. He thinks this is a precarious position. He said Ford has expressed his desire to work on the budget over a longer period of time and have the budget reflect policy.

    Gilbert said he thinks all the programs should be discussed at Woods Hole, well in advance of the budget meeting. They all are funded from the AIP net income and involve large magnitudes.

    Havens said there is only $12,000 in net operating revenue. The only other income is from long-term investments in the reserves. Is there any policy passed by the Governing Board relative to the use of reserves and income from reserves?

    Gilbert said it had been previously approved that all money in reserves would go to the designated funds. He said we should take a fresh look at our designated goals. If there is no excess revenue from operations, we will keep increasing the goal of the reserves each year yet the amount in the reserves will not grow.

    Havens said if we use the income from the reserves, it will stretch out the time to reach the goals. He explained further that APS had allocated money to reserves without recognizing the liability of the different parts of it. Their auditors picked this up and have requested a statement of policy showing the connection between reserves and the amount that might be required from that reserve and that this be factored in the budget. He thinks a policy has to be developed by the AIP Treasurer's Office for next year.

    Frauenfelder that a major problem to be addressed in the near future clearly is to change the procedures so as to allow for advanced discussion of the budget.

    At this point the motion concerning the 1988 Budget was approved.

    The following motion was then made by Lazarus, seconded by Havens, and, following the discussion reported below, unanimously CARRIED.

    MOVED that the 1988 Capital Expenditures Budget of the American Institute of Physics totaling $656,000, which amount reflects the deletion from the Draft Budget of a provision for purchase of a Data General MV15000 computer with various peripherals and software, be approved.

    Frauenfelder asked if there was further discussion of the Data General or other aspects of the capital expenditures budget. (Previous discussion of Subscription Fulfillment equipment under Agenda Item 5.A.)

    Dolowich reviewed the staff proposal. The draft budget includes the MV15000 as backup for the present system and an enhanced system. The first $225,000 is for the MV15000. $25,000 is needed for printers. Pub Sales and Reprints needs a printer as this division has a lot of activity and it will be moving to the new rental site. We recently had problems with the present Raytheon, about which he informed the Societies. This has been partly remedied, but we will now have to use the MV8000 for input to the Univac, which will load this even further. The Data General is competitively priced. If we switched computers, it would be mean major efforts with the existing software.

    Considerable reservations concerning the purchase of the Data General MV15000 and software were expressed by members of the committee.

    Dolowich said we cannot run both the old and new systems on the MV8000. The Raytheon situation was not foreseen and makes a further load. We have the assurance of the manufacturer with a backup computer of the same brand.

    Ford suggested that the capital expenditures budget could be approved with the consideration that this purchase not be approved until further justification is given.

    Frauenfelder asked what an alternative system would cost. Is it better to bite the bullet now or later? He wants an estimate of an alternate path.

    Dolowich said he would not place the Data General order immediately, in any case. He wants to see more results by the end of the year. However, an alternate path would require new software. The software guides everything. It would be a significant effort to rewrite the software. In response to an inquiry, he said the only thing really needed now is $25,000 for a printer.

    (The meeting recessed for lunch at 12:20 and resumed at 1:00 p.m.)

    The following motion was made by Lazarus, seconded by Havens, and unanimously CARRIED.

    MOVED that the 1988 Capital Expenditures Budget be amended to provide for the purchase of a Data General printer at cost not to exceed $25,000.

8. Other Financial and Administrative Matters

  1. Gift to Center for History of Physics
    Gilbert referred to his 20 November 1987 memo to the Executive Committee. An anonymous donor gave a gold pair-cased cylinder watch to the Center. It was sold at auction and brought $950.00. The proceeds will be credited to the Endowment Fund of the Center.

  2. Kinokuniya Payment Covering 1988 Subscriptions
    Gilbert referred to his 20 November 1987 memo to the Executive Committee regarding payments which have been made or will be made to AIP for journals subscriptions sold by Kinokuniya, totaling $4,224,210. These payments are then distributed, with payments to Member Societies as applicable to Society journals.

  3. Faxon Agreement Covering Payment of 1988 Nonmember Subscriptions
    Gilbert referred to his 20 November 1987 memo to the Executive Committee and exchange of letters between Gilbert and Exon (Faxon officer) re: history of the agreement with Faxon, which handles a large volume of nonmember subscription renewal orders. This is an established routine procedure and does not now have to be approved by the Executive Committee.

  4. Report of the Investment Advisory Committee Meeting of 3 November 1987
    Gilbert said the next meeting will be a face-to-face meeting with AIP's investment managers. Everyone is concerned with the risk; AIP now has $16.5 million in direct cash investments.

    One of the concerns of the Investment Advisory Committee is whether we will need our long term funds in the near future. The answer is no, but we still have to be careful about exposure. We fared well in the October 19 crash. Our equities investments with First Manhattan are in growth companies. They still reflect a paper profit. Our two mutual funds have a paper loss; the overall market showed a loss of 20%, with our loss 15%. These mutual funds were recommended by Krumhansl and are excellent investment vehicles.

    Gilbert had distributed a handout--a status report--at the executive session. We now have an overall paper loss for the year of 4%.

  5. Washington DC Office Petty Cash Bank Account
    20 November 1987 memo to Executive Committee from Gilbert. The Washington office staff has problems cashing their checks since AIP does not have a bank account in DC. APS has a petty cash bank account there, and he recommends that we open one.

    Accordingly, the following motion was made by Smith, seconded by Wilson and unanimously CARRIED.

    MOVED that the AIP Treasurer be empowered to open a petty cash account with The Riggs National Bank of Washington, DC, for our Washington, DC, office.

  6. Estate of Stewart S. MacDermott
    For information only, Gilbert called attention to his 20 November 1987 memo to Executive Committee, including initial correspondence from 1967 in which the Institute was designated a residual beneficiary in the will of Stewart S. MacDermott; November 1987 letter from bank advising that his first beneficiary had died and that our first interest payment would be received shortly.

9. Publishing Matters

  1. Report of the 20 November Meeting of the Committee on Publishing Policy
    23 November 1987 memo from Marks to the Executive Committee.

    1. Videocomp 570
      Marks said that a recommendation was made at this meeting to purchase the Videocomp 570. (This was approved at this meeting as part of the Capital Expenditures Budget.)

    2. Laser Proofer
      The Committee on Publishing Policy recommended purchase of a laser proofing system. (This was approved at this meeting as part of the Capital Expenditures Budget.)

    3. Special Journal Covers
      This was recommended as a way to remind members that journals are purchased for their use only. AIP was asked to contact other societies who have used this method to determine their experience.

      The following motion was made by Wilson seconded by Havens, and unanimously CARRIED.

      MOVED that approval be given for trial u e of special covers with the phrase "Provided by AIP for Member's Use Only" for member subscriptions to two AIP archival journals.

    4. Continents in Motion
      Recommendation was given for publication of a revised edition of this title by Walter Sullivan.

    5. Mandatory Air Freight Shipment of Journals
      Mandatory air freight is being considered; it was felt that it would be desirable for non-member subscriptions. The proposal will be taken to the Member Societies, in order to develop a consistent policy.

    6. PI-NET, PI-MAIL
      A report was made to the Committee on progress with the new Gould computer and its potential for publishing services.

    7. Automatic Page Makeup
      Proposals are being received and evaluated.

  2. Developments with Soviet Translation Program

    1. Recommended Agreement with Martin Levin
      Marks referred to letters from Martin P. Levin of Cowan, Liebowitz & Latman. He gave a background review on Mr. Levin and his potential assistance to AIP in renegotiating our contract with the Soviets. Mr. Levin has active contacts in the Soviet Union and goes there several times a year; he knows the head of VAAP, the agency with which AIP must deal. We have to have someone of this stature and with proper connections to achieve a good agreement; there is a lot on the line.

      Sickafus made the following motion, which was seconded by Smith and unanimously CARRIED.

      MOVED that AIP management be authorized to negotiate an agreement with Martin P. Levin of Cowan, Liebowitz & Latman, for the purpose of handling renegotiation  of the AIP-Soviet translation journal contracts per the letter of 29 October 1987 from Levin to Marks.

  3. Report on Discussions with IEE/INSPEC and FIZ/STN Physics Briefs
    Ford and Marks visited IEE and FIZ officials in November. He distributed to the Executive Committee a 23 November 1987 letter to Ford from H. W. Losty (Secretary of IEE, U.K.) containing an IEE draft letter of agreement. This was their counterproposal to the AIP proposed agreement of 22 April 1986. It proposes a price of $5.00 for each record received and added to the INSPEC database. Our offer was $12 per article plus a royalty, the same as our agreement with the Germans. It might be possible to negotiate the IEE offer upward a few dollars, but then we would have to drop the price received from the Germans. Their visit to Germany was cordial and productive; FIZ officials volunteered the suggestion that if we entered into an exclusive arrangement with them, they would be prepared to raise the price they pay for our abstracts. Ford and Marks feel that the prospect of an agreement with the Germans is more attractive, in terms of having a partner in other forms of electronic publishing developments. The British are only interested in getting the abstracts on tape to save them time and keyboarding. They are totally unwilling to admit that we own the copyright and that they have no right to use the material without compensation.

    Frauenfelder said it seems we have been fighting with IEE forever. He feels that to take a bad deal from them and lower income from the Germans would not be desirable. We owe the British nothing.

    Lazarus noted that INSPEC has a larger circulation. He thinks we should be careful about completely severing our contacts with INSPEC. FIZ may not succeed.

    Havens said the IEE original offer was even lower. They seem to be coming up. He thinks they have no bargaining chip and sees no reason to make a counteroffer. The Germans have treated AIP very well.

    Ford said he expects to have about 12 physicists make an experiment with the databases to compare the two systems. The only general purveyors of physics abstracts are these two services. We are also designing a new marketing campaign to emphasize the superiority and timeliness of Physics Briefs.

    Marks said the Physics Briefs database could be augmented to make it more attractive. We are proceeding with development of a marketing plan with the Germans but we are not at the stage yet that a motion is needed. The INSPEC database contains more than physics (electrical engineering, computers, and controls). However, the FIZ government-supported financial base is stronger than that of INSPEC.

  4. Report on Computers In Physics
    Marks said copies of the first issue are available; he thinks it looks very good. The 1988 first issue is now at the printer. (See also Agenda Item 7.B.)

10. Physics Programs

  1. Report of the Director

    Rigden expressed his view that the physics programs are effectively serving the Societies. Public Information recently performed services for an AVS meeting in California, the first time for an AVS meeting. Statistics is doing a study for the APS. More generally, he thinks the programs are helping the promotion of physics. The first award winner of the the Science Writing Award for Children was chosen recently. Two studies are being carried out regarding high school physics. The Center for History of Physics has just heard informally from NSF that it would give a grant of about $150,000 for study of preservation of historical records of large research collaborations. In a change of policy the Journal of Undergraduate Physics is to be given to SPS members.

    He has spent a lot of time working with Sallie Watkins, the Senior Education Fellow, as this is a new position. She is helping to organize the departmental chairs conference. She also has three projects underway. He described one: a school system in St. Louis County has been chosen for a study. This program will involve Grades K-5 and will seek to strengthen science instruction and eliminate barriers that preclude female and minority students from electing science as a career. The project is going well. An advisory board of AIP Member Society representatives is being created to help keep the project moving; they will get reports. He has talked with the NSF people regarding funding. He envisions no AIP funds being used for this project.

  2. Meggers Project Award Committee
    A 20 November 1987 memo to the Executive Committee from Rigden gives the composition of the committee (given in minutes of Sept. 1987 Executive Committee meeting) and objective for the 1988 award: to support projects t the pre-college level for increasing interest in physics and enhancing the quality of physics education. Calls for proposals will appear in the AAPT Announcer and TPT.

11. Status of Federal Awareness Service
Ford referred to the 23 November 1987 report by Condell on the service. It is progressing as rapidly as had been hoped for. It will be available to users of PI-NET next week.

12. Question of Membership in Council of Scientific Society Presidents (CSSP)
Frauenfelder referred to his 5 October 1987 letter to William F. Prokasy of the CSSP Executive Board in which he indicated that he would bring the question of AIP membership up at a forthcoming meeting, although he had written a negative letter earlier. He had stated that one reason is that AIP is not a regular scientific society.

Lazarus said the organization has made statements that are not representative of its members. Park has been aware of these difficulties. APS has become disenchanted with their approaches. He also noted that AIP has no individual members.

Wilson said that AAPT is a member and he attends. They tend to have statements that are not well thought out. CEO's or paid staff cannot be members, but they are invited to attend.

Duax (ACA) said in the two years he has attended they have been cautious because of such previous problems. Their present philosophy is to state they are not speaking for the societies which are members. They invite the presidents of non-member societies to attend.

Frauenfelder said the question is whether AIP should be a member. He thought that AIP should not join before APS does.

Smith said he would like to see AIP as a member. He thinks it is a potential resource. It has a huge membership and was influential in establishing scientific apparatus.

13. Proposed Gift of American Flag
Frauenfelder said he has to answer Cranberg's letter, as he wrote to him that he would do so following the next meeting of the Executive Committee.

Ford said the flag has been used often in the U.S. for the wrong reasons; he remains opposed to displaying it in the lobby of AIP Headquarters.

Gilbert said that since we are in the area of the U.N., if a flag is seen, it appears as if we are affiliated with the government.

Lazarus agreed that it is not customary to put a flag in a lobby unless you are trying to make a statement.

Frauenfelder said we are reiterating our former position, which he will convey to Cranberg a final time.

14. Other Business

  1. Titles of Officers
    Grant reported that the following item had been acted on at the 3 December executive session.

    It was moved, seconded, and unanimously CARRIED: MOVED that the titles of officers of the Institute who head the Publishing, Finance and Administration, and Physics Programs Branches be changed from "Director" to "Managing Director".

  2. Future Meetings
    Following discussion it was decided to have the 11-12 February 1988 meeting of the Executive Committee in New York, as previous commitments by some members make this necessary.

15. Executive Session
The AIP staff was excused at 2:00 pm for the executive session, which is reported in the official minutes only.

16. Adjournment
The meeting was adjourned at 2:20 pm.