Executive Committee of the American Institute of Physics
Minutes of Meeting
Members Present: P. M. Morse – Chairman, R. T. Beyer, L. W. Fredrick, W. W. Havens, Jr., H. W. Koch, Sidney Millman, J. W. Quinn, A. A. Strassenburg
Absent: W. A. Fowler
Nonvoting Participants: J. A. Burton (APS), R. W. Hoffman (AVS), I. M. Krieger (SOR), Jacques Ovadia (AAPM), N. F. Ramsey (APS) for part of the meeting only, R. A. Young (ACA)
Guest: R. J. Moynihan, Consultant
AIP Staff: H. W. Koch, Director; Sidney Millman, Secretary; G. F. Gilbert, Treasurer; R. H. Marks, Associate Director for Publishing; Lewis Slack, Associate Director for General Activities; D. M. Lasky, Assistant to the Director; M. M. Johnson, Assistant to the Secretary
Chairman Morse called the meeting to order at 1:30 p.m.
1. Minutes
The Secretary noted a correction proposed by Quinn to the draft minutes of the Executive Committee meeting held on 19 December 1977 and, upon motion made and passed, the corrected minutes were approved for distribution.
2. Status of Move to Woodbury
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Transportation of Employees; Staff Losses and Replacements; Schedules for Future Moves
Koch reported that 61 employees of the Stony Brook Editorial Center relocated to the Woodbury Building on 20 March and are functioning well in the new quarters. The present facilities at Woodbury are intended to house about 200 employees, with about 170 remaining in Manhattan. The losses occasioned by the move have been about 10-15%, as expected. He reported further that the experience so far in response to an ad for new employees has been extremely good. About 150 inquiries resulted from the 3-day ad; the average qualifications of the respondees were much higher than one would expect compared to Manhattan. Not only will the few losses be easily made up, but the prospects for the replacement of the anticipated higher losses in Subscription Fulfillment look very good. Moreover, the new employees will probably need less training than one would normally expect.
The schedule for moves to Woodbury in the immediate future is as follows:
Subscription Fulfillment 19 May present population ~ 45 people Data Processing & Computer 9 June present population ~ 15 people Society of Physics Students end of June present population ~ 10 people Koch noted further that the Institute rented 9 sedans for car pooling at a cost of $2,100 per month, and is providing a transportation allowance of $.03 per mile to each employee. So far everything connected with the move seems to be working extremely well.
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Expenses Incurred So Far
Gilbert distributed a one-page memorandum entitled "Capital Investments in Buildings and Equipment" dated 31 March 1978 (copy attached as Exhibit A) and stated that it is an update of the sheet which was distributed at the Executive Committee meeting of 26 October 1977. He noted that the total sum of about $1,960,000 has been committed even though it has not as yet been fully spent in every case. Also listed at the bottom is an additional $110,000 for the purchase of a telephone system for our headquarters building, if the Executive Committee approves.
Marks reported that the Institute encountered a large number of contingencies outside the scope of the renovation contract. To take care of the unexpected items, the cost was increased by $79.000. Some of these items were:
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Repair or replacement of heating and air conditioning equipment which we did not know about
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Additional renovation cost because the building was not built according to the original design plans, which were used when bids were solicited; the duct work in the ceiling was lower than indicated in the drawings and had to be raised
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Water leakage in the foundation
Moreover, our original plan called for a computer room of only half the size we later decided to equip. The change was made to accommodate both new ATEX and UNIX systems, if found desirable.
In response to a question about anticipated moving expenses, Marks noted that expenses involved in moving the Stony Brook Editorial Center have been negligible. The only sizable item from New York City will be the computer and that will be of the order of $10,000. We will move the new 90/30 computer but not the old 9300 computer. The move of the ATEX system will be some time later.
The following motion was made by Fredrick, seconded by Strassenburg, and passed without dissent:
MOVED that the Executive Committee authorize the expenditure of an additional $79,000 to cover the increased cost of renovation.
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3. Review of the 1978 Woodbury Property Budget
Gilbert called attention to Attachment A to the agenda which was an exchange of letters between Havens and Gilbert concerning a line item in the 1978 budget, interest on AIP money invested in the Woodbury Building. He noted that the matter of return on equity is one which is currently receiving a lot of attention in accounting circles with professional arguments on the accounting merits for both including it and for excluding it. It is not, therefore, only a mere accounting issue, but one of policy. If this item is deleted from the 1978 budget, there would be a reduction of $60,000 in the Woodbury Building expense which would reduce the costs to the Societies of services performed for them, and a corresponding reduction in income to AIP. Havens agreed with Gilbert that it is a matter of policy. He did not think it was worthwhile figuring out the prorated fraction that would affect the different Member Societies, however. He introduced the following motion which Fredrick seconded and which was passed without dissent:
MOVED that the item of $60,000 labeled “return on equity” be deleted from the Woodbury Property, Building Maintenance section of the 1978 budget.
Havens expressed his opinion that for this year, during the transition period, the averaging of space costs (for headquarters, rented space, and Woodbury) is the best way to allocate costs, although it is not appropriate in the long run because if we continue using average costs we would never be able to determine what our costs are at the different sites.
4. Proposal for Purchase of a Private Telephone System for Manhattan Locations
Marks reported that the experience with the private telephone system which has been installed in the Woodbury Building has been extremely satisfactory. The cost has been as budgeted and we are pleased with the results. AIP has a long-term maintenance contract. Based on this experience, we have turned our attention to the need for an improved telephone system in Manhattan. The annual telephone budget for New York City is between $110,000 and $120,000 a year. He then called attention to Attachment B to the agenda which recommended a system to be purchased, and he distributed additional data containing information received from the New York Telephone Company, after the original mailing to the Executive Committee was made, which presented a comparison of expected costs over the next ten years for three different New York Telephone systems. If we limit ourselves to five years and we omit the expected cost of about $60,000 that AIP would have to pay to New York Telephone for toll charges in any system, the average annual cost for the proposed non-Bell system to be purchased is about $25,000. This is to be compared with about $45,000 for one of the New York Telephone systems, the Centrex system. The purchase price for the proposed Key Communications Corporation system would be $107,000. Marks suggested that the Executive Committee authorize an appropriation of $110,000. He added that the proposed system to be purchased is flexible in that the company will take it back at stated values if improvements make that desirable and necessary. The new system is needed even if the headquarters building is not renovated. Should the Institute move to a different building, the system can be moved, too.
The following motion was made by Quinn, seconded by Strassenburg, and passed:
MOVED that AIP be authorized to purchase a new telephone system for the Manhattan locations at a cost not to exceed $110,000.
5. Investment of Endowment Funds for Center for History of Physics
Slack reported that funds collected for the Endowment Fund for the Center for History of Physics are now over $100,000 and are in a bank account paying 5% interest. The requirements for liquidity are not very great and we could seek a higher rate of return. The present Institute policy is for the Building Reserve Fund to be placed in our Investment Advisory Account, while Special Purpose Funds are in savings accounts and mutual funds. The Advisory Committee on the History of Physics has recommended that the endowment monies be invested to produce a higher yield, and E. R. Piore’s own suggestion was to invest it in corporate bonds. This exceeds the authorization that the Treasurer now has.
Havens suggested that the AIP Treasurer be authorized to negotiate with Bankers Trust as to the most appropriate method of investing the endowment funds of the Center. Quinn added that he would like to see our Special Purpose Funds managed professionally, and he asked that the Treasurer come up with a recommendation for this at the next meeting of the Executive Committee.
6. Appointment of Representative on ANSI Organizational Member Council
Millman reminded the members of the Executive Committee that, a few months ago, the Institute became an Organizational Member of the American National Standards Institute (ANSI). We have been advised by ANSI that AIP can appoint a representative to their Organizational Member Council. The AIP Management Committee suggested that he be that representative for the current year. He noted that he already attended one meeting in Washington on 30 March, at a conference noting the 60th anniversary of the founding of ANSI.
The following motion, made by Strassenburg, was passed without dissent:
MOVED that Sidney Millman be appointed as AIP’s official representative to the ANSI Organizational Member Council.
7. Election of Corporate Associate
Lasky reported on the application by Arthur D. Little, Inc., to become an AIP Corporate Associate at the $250 annual rate. She could not be certain that they had only four physicists. For that sum, Arthur D. Little will receive no journals. She expressed the hope that next year AIP might get more money from them. She recommended that they be elected and, upon motion made and passed without dissent, Arthur D. Little, Inc., was elected a Corporate Associate of the Institute.
8. Discussion of Governing Board Agenda
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Computerization of Accounting System
Moynihan referred to his latest report dated 28 March 1978 which was distributed at the meeting, and discussed some highlights. He pointed to accomplishments in some areas, such as the timely monthly Society cash statements, some progress in the objective of producing up-to-date Institute financial statements, and to the disappointing lack of progress in system conversion and in the developing of on-line capability. The latter is of particular concern because of the plan to move the computer to the Woodbury location in June while the Accounting staff will remain in New York City. There was general agreement that the principal cause for the delays was the shortage of programmer analysts which AIP was not able to build up as authorized by the Executive Committee. Some of that was caused by difficulty in attracting highly qualified personnel for New York when the move to Woodbury is imminent. He thought that AIP may have to advertise more aggressively and perhaps pay higher salaries. He also mentioned the possibilities of hiring outside technical consultants and of buying program packages designed for certain specific operations.
Members of the Executive Committee reiterated the urgency of getting the Accounting system automated as soon as practical and emphasized the desirability of designing future programs in COBOL language as soon as feasible, without interfering with Subscription Fulfillment schedules.
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Implementation of New Copyright Law
Koch reported on a copyright transfer problem AIP has encountered with the Ford Motor Company. It appears that the Ford general counsel took the position that only their Board of Directors can authorize such copyright transfers and this is, of course, not a practical mode of operation. Ford is willing to authorize only a limited license. Koch suggested that we seek the approval of the Governing Board to refuse to accept manuscripts from Ford on those conditions. The following motion was made by Fredrick, seconded by Beyer, and passed unanimously:
MOVED that the Executive Committee recommend to the Governing Board that the Institute be consistent in its copyright policy and apply it to all companies equally, including Ford Motor Company.
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Sale of Abstracts to Physikalische Berichte
Koch informed the members of the Executive Committee that W. Rittberger has signed the agreement that we sent to him for the use of the AIP computer tape abstracts in Physikalische Berichte. The implications are that AIP will receive an additional income of about $100,000 by feeding our SPIN tape into their information system.
9. Proposal for a Prize for Fundamental Data Compilation in Physics and Chemistry
Koch called attention to agenda Attachment C giving specifications of a proposal for a Prize for Fundamental Data Compilation in Physics and Chemistry, sent to APS, to AIP, and to the American Chemical Society by Herbert P. Broida and Felix T. Smith of the Stanford Research Institute. He reported that APS is going to recommend going back to the proposers with the suggestion that they try to get some sponsors for this prize. He raised a question about the advisability of having a prize involving three societies. Havens thought that the prize, as described, was too narrow and would soon run out of candidates. Moreover, the proposers should try to find some resources. He noted that joint administration of a prize sometimes leads to errors and suggested that one organization be responsible for it. He agreed to respond along these lines for both APS and AIP.
10. Proposal for a Joint AIP-AAS Heineman Prize for Astrophysics
Koch reported that James Heineman was so delighted with the way the Dannie Heineman Prize for Mathematical Physics has been administered that he has proposed another prize, for astrophysics, to be handled jointly by AIP and the American Astronomical Society. This prize would also be $5,000 to be awarded every year. Koch had asked Fredrick to get reactions from AAS officers. Fredrick reported that, of the AAS Executive Committee members that he was able to reach, all agreed that it would be a nice move. Their current most prestigious prize carries only $500 but recipients gladly accept that for the prestige and not for the money. Koch added that the AAS Council would take the leadership in selecting the candidates and the prize would presumably be awarded at an AAS meeting.
The following motion was made by Havens, seconded by Quinn, and passed without dissent; Fredrick abstained:
MOVED that the Director be authorized to submit a proposal to the Heineman Foundation for an American Astronomical Society-American Institute of Physics Prize for Astrophysics.
11. Financial Handling Charge for 1979
Gilbert stated that each year the Governing Board must set the financial handling charge that AIP makes to the Societies for business handled on their behalf, for the following year. In recent years the charge, which cannot exceed one per cent, has been set at five-eighths of one per cent, and the AIP staff recommends that it be set again at that figure for 1979. Upon motion made by Quinn, and passed without dissent, the Executive Committee recommended to the Board that the financial handling charge for 1979 be set at five-eighths of one per cent (0.6251.).
12. Future Meetings
It was the consensus that the next meeting of the Executive Committee be held at the offices of the Institute on Friday, 23 June 1978.
Koch reported that it is planned to have the annual Corporate Associates meeting on 28 and 29 September at Battelle Memorial Institute in Columbus, Ohio. In that case, the fall Governing Board meeting could be held at the nearby Chemical Abstracts offices on 27 September, and could include a tour of their facilities. He asked for suggestions on a time for the Executive Committee meeting. Quinn expressed a preference for having the Executive Committee and Governing Board meetings held back to back. The afternoon of 26 September was mentioned as a possibility.
13. Discussion of Recommendations of the Administrative Review Committee
The Executive Committee met in camera to discuss the report of the Administrative Review Committee, including recommended salary increases for the AIP officers: Koch, Gilbert, Marks, Millman, and Slack. The salary changes, retroactive to 1 January 1978, are recorded below in the official copy only of these minutes. A copy of the report of the Administrative Review Committee, consisting of G. E. Pake, H. L. Anderson, and Robert Karplus, is also attached to the official copy of these minutes.
From | To | |
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H. William Koch | $57,500 | $61,000 |
*Sidney Millman | 23,940 | 25,500 |
Gerald F. Gilbert | 40,400 | 42,500 |
Robert H. Marks | 45,500 | 49,000 |
Lewis Slack | 36,000 | 37,300 |
* S. Millman rate increased from $39,900 to $42,500
The meeting was adjourned at 5:00 p.m.
Special Session of the Executive Committee – Compensation for the Chairman
Later that evening, immediately following the evening session of the Governing Board meeting, the Secretary, at the suggestion of the Director, convened the members of the Executive Committee, including W. A. Fowler who arrived during the evening, but excluding Chairman Morse. Fowler was elected Chairman pro tem.
Koch reported that he had raised the question of compensation for the Chairman with the Administrative Review Committee. A figure of $5,000 per year was generally favored. Fowler thought that this might encourage the Chairman to devote more time to this activity. Quinn thought that the proposed compensation is quite typical of other organizations.
Upon motion made and passed unanimously, the Executive Committee approved 1978 compensation for the Chairman of $5,000.