Executive Committee of the American Institute of Physics
Minutes of Meeting
Members Present: Ralph A. Sawyer – Chairman, S. A. Goudsmit, W. W. Havens, Jr., R. B. Lindsay, Vincent E. Parker, S. L. Quimby, Mary E. Warga
AIP Staff Present: Elmer Hutchisson, Wallace Waterfall, Mary M. Johnson; Henry A. Barton joined the meeting for luncheon.
The Chairman called the meeting to order at 9:30 a.m.
1. Minutes
Upon motion made, seconded and passed without dissenting vote, the minutes of the meeting of 7 June were approved with the following correction:
Page 5, Item 7 – First sentence should read: “The Director reported that gross income of $156,750 has been received from 184 Corporate Associates to date this year, leaving a net income of approximately $113,000 after the full non-member cost of journal subscriptions is deducted.”
2. Financial Matters
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Report of Finance Committee Meeting
The Treasurer reported that the Finance Committee consisting of James T. Bergen – Chairman, J. W. Buchta, Herbert A. Erf, A. I. Mahan, Paul M. Routly, S. L. Quimby and Elizabeth A. Wood, which had been authorized at the Governing Board meeting of 4 October and appointed by Chairman Sawyer soon thereafter, met at the offices of the Institute on 26 November. The entire meeting was devoted to exploring a proposed new system which had been developed by the staff for allocating the costs of dues billing and subscription handling.
The Treasurer distributed copies of the charts which had been prepared by Mr. Gilbert for the Finance Committee (copy attached to official minutes) and explained the proposed system. The activities involved in dues collection and subscription handling are divided into eight separate operations each of which has a unit on which cost can be determined. By combining these unit costs it is possible to establish the cost of any of the various combinations of services of this type which we now perform for the Societies. The following table describes the separate operations, gives the basis for the unit cost, and gives the value of the unit calculated from the proposed 1964 budget.
Operation Basis of Unit Cost Unit Cost According to 1964 Budget Preparation of Member Renewal Bills Per item billed $0.066 Cash Receipt Analysis Per item collected .290 Cash Allocation Per item collected .104 Preparation & Updating of Addressing Cards Per card .366 Membership Service Per membership 1.055 Non-Member Service Per subscription 1.65 Machine Processing & Maintenance Of Addressing Cards Per mailing card .435 Preparation of Mailing Labels Per label .0025 In 1964 we will be maintaining separate lists of mailing cards for each Society and it will be necessary to perform operations 4, 5 and 7 for each membership. These three unit costs should total $1.856 according to the 1964 budget. Since these mailing cards will be used by the Societies for their mailings as well as by the Institute for PHYSICS TODAY, it was proposed to the Finance Committee that this total be split 50-50 between the Societies and AIP, the AIP half being charged to PHYSICS TODAY.
In presenting the proposal to the Finance Committee, the total charges for 1963 had been worked out on both the old and the new systems of cost allocation. The figures showed that costs charged to AIP journals would have been about $17,900 higher under the new system and charges to Societies would have been correspondingly less. All Societies do not save under the new system. Because of the necessity of maintaining the member lists, those Societies which make little use of those mailing cards may be charged more than at present. The Society of Rheology may be charged a few hundred dollars more. The American Astronomical Society and the American Crystallographic Association may each be charged about $1,000 more.
The Finance Committee was also shown the projected 1963 costs of the departments involved in these service operations and the proposed budget for the departments in 1964. The estimated costs for 1963 total $393,000 and the 1964 budget figure is $377,000. This is a reduction of a little over 4% and we expect to handle about 5% more subscriptions and members in 1964. We expect to be able to do even better in reducing unit costs in future years if our simplification recommendations are accepted and our operations can become stabilized.
The Finance Committee made the two following recommendations:
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That the new system of cost allocation be adopted for 1964 and used in preparing the 1964 budget.
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That the Institute absorb in 1964 the charge which, under the new system, would be made to AAS and ACA for the preparation and maintenance of the member lists.
The Treasurer said that the Finance Committee planned, at future meetings, to look into the distribution of Editorial Mechanics costs and Administrative costs and also to make some comparisons of AIP costs with those of other organizations performing similar services. Future meetings will be held as soon as the staff can prepare and accumulate necessary information.
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Third Quarter Statement and Budget for 1964
The Treasurer distributed copies of the attached financial statement containing various figures including income and expense for the first nine months of 1963, projected figures to the end of the year, and a proposed budget for 1964. The 1964 budget is based on the new system of cost allocation recommended by the Finance Committee and also incorporates the other recommendation of that Committee. In preparing the 1964 budget efforts were made to reduce costs of all service operations to the lowest point possible consistent with maintaining the quality of service necessary. The future alone will show whether the budget is realistic and whether still further cuts in unit costs can be made later.
The attached statement was then discussed page by page and the following summarizes the more important points:
Page 5. Administrative expenses for 1963 are expected to be a little below budget for the year. The 1964 budget is higher mostly because it includes additional funds for library and promotional literature. The Director explained the need for these funds.
Page 6. The Public Relations Department will be a little below its budget for 1963. The 1964 budget is higher because of our commitment to NSF to bear next year one quarter of the cost of the project to publicize research reported in our journals.
Page 7. The Education & Manpower Department will also be below its 1963 budget. The 1964 budget is only slightly higher than the 1963 budget.
Page 8. Advertising net income for 1963 will be about $285,000, a little less than budgeted but well above the $248,000 net of 1962. It should be noted that AIP is actually losing a little money on solicitation of advertising in Society journals. Prospects for 1964 look good.
Pages 9 thru 16. RSI, JCP, JAP, PF and JMP were budgeted in 1963 to be, collectively, in the black by about $10,000. They will actually be about $6,000 in the black. For 1964 they are budgeted to be ahead by $28,000 thus offsetting previous deficits.
The net expense for PT for 1963 is about on budget at $181,000 and is below the anticipated advertising income of $206,000. PT will have a larger page size and a new printer in 1964. The number of copies printed has reached a point where use of a rotary press is faster and less expensive and the job has been transferred from Lancaster Press to National Publishing Company in Washington, D. C.
APL is budgeted for a deficit in 1964 because it used up more of its NSF subsidy than contemplated in 1963.
Pages 17, 18, 19, 20. Net credit to overhead from special projects and income from royalties and miscellaneous sources for 1963 will be about as budgeted. Total credits and income from these sources for 1964 are budgeted to be about the same but are contingent on grants some of which have not yettt (yet) been received.
The three unnumbered sheets following the numbered pages present information not previously distributed with financial reports. These show the costs which make up the total expenses of the Editorial Mechanics Department and the departments involved in dues collection and subscription handling, and also the anticipated distribution of those costs to AIP and Society journals. This distribution is based on estimated journal pages and subscriptions for 1963 and 1964. We cannot guarantee the accuracy of the 1964 figures but they should be of value to Society officers in estimating AIP charges for 1964.
The fourth and final unnumbered sheet compare projected service costs to Societies for 1963 with budgeted costs for services the Societies are expected to want in 1964 according to the new system of cost allocation.
Page 4. This page shows AIP anticipated net income from all operations of about $74,000 for 1963 and budgeted net income of about $78,000 for 1964. There are many uncertainties about 1964 but this is our best guess now.
Pages 1, 2, 3. The Balance Sheet shows an accumulated deficit of about $112,000 at 30 September 1963 and it should be about the same at 31 December. This is an encouraging reduction from the $174,000 deficit with which we started the year. If we realize our 1964 budget we should have a further substantial reduction by the end of that year.
The following motion was then made, seconded and passed without dissenting vote:
MOVED that the budget for 1964 be adopted with the understanding that the increase in charges to the two Associate Member Societies for 1964, caused by the new system of cost distribution, will be absorbed by the Institute, as recommended by the Finance Committee.
Another motion was made, seconded and passed as follows:
MOVED that the Finance Committee be thanked for its recommendations and the AIP staff commended for its efforts in developing the new system of cost allocation.
3. Corporate Associates
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Status Report
The Director distributed copies of a status report on Corporate Associates (copy attached) and answered some questions concerning our policy in dealing with them.
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Election of New Corporate Associate
The Director stated that the following organization had requested to become a Corporate Associate of the Institute and, on motion duly made and passed, it was so elected, effective January 1964:
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Parke Mathematical Laboratories, Inc. &ndash $500
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4. Appointments
The Director reported that he had consulted with journal editors and others and suggested new appointments as follows for 1964 on terms as indicated (a through f):
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Editorial Boards of Institute Journals
THE JOURNAL OF CHEMICAL PHYSICS
- John L. Magee
- E. A. Mason
- W. E. Wallace
- R. A. Marcus
- H. L. Frisch
- A. D. Buckingham
JOURNAL OF APPLIED PHYSICS & APPLIED PHYSICS LETTERS
- Conyers Herring
- D. J. Rose
- Robert H. Silsbee
THE REVIEW OF SCIENTIFIC INSTRUMENTS
- Paul Rosen
- D. A. Mack
- R. E. Honig
- Frederick C. Brown
- Harlan W. LeFevre
- William Paul
- G. R. Ringo
THE PHYSICS OF FLUIDS
- E. A. Frieman
- Norman Rostoker
- R. G. Fowler
- C. F. Curtiss
- Daniel Bershader
- Marshall N. Rosenbluth
JOURNAL OF MATHEMATICAL PHYSICS
- Morton Hamermesh
- David Ruelle
- Mark Kac
- J. M. Luttinger
- Rudolph Haag
- Kurt E. Shuler
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Representative to AAAS Council
Reappointment of Mary E. Warga for a two-year term to 15 January 1966.
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Representative to the USANC of IUPAP
Wallace Waterfall for a three-year term to replace Elmer Hutchisson whose term expires 31 December 1963 and who is ineligible for reappointment.
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Nomination to USANC of UNESCO
William A. Nierenberg instead of Malcolm Correll, one of the three candidates nominated by the Governing Board on 4 October 1963. Mr. Correll has stated he may be unable to serve.
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Replacement on AIP Advisory Committee on Manpower
Van Zandt Williams to replace Harold S. Stewart who resigned.
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Magnetics Conference Advisory Committee
On 15 March 1963, the Executive Committee authorized appointments to the subject Committee and the following AIP representatives are suggested, contingent upon their acceptance of the appointments:
- Richard M. Bozorth
- John A. Osborn
- William D. Doyle
- J. Samuel Smart
- J. F. Dillon, Jr.
- George T. Rado
- Richard J. Prosen
- Werner P. Wolf
- W. C. Koehler
- Alan M. Portis
- Israel S. Jacobs
- Louis R. Maxwell
- A. M. Clogston
- Julius M. Hastings
- Simon Foner
Upon motion made, seconded and passed without dissent, all of the above appointments were approved.
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Committee to Nominate Chairman, Executive Committee and Director-at-Large
On recommendation of the Chairman a motion was made, seconded and passed without dissenting vote to appoint the following as members of the subject Committee: W. V. Houston – Chairman, C. G. Suits and Laurence Batchelder.
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Committee to Survey Activities of the Institute and Select Candidates for Director
The Chairman recalled that the subject Committee had been authorized by the Governing Board at its meeting on 4 October 1963, and he appointed the following members:
- R. B. Lindsay, Chairman
- W. W. Havens, Jr.
- Vincent E. Parker
- James T. Bergen
- S. S. Ballard
- R. A. Sawyer (ex officio)
There was a discussion of proposed meeting dates for this Committee and it was the consensus that a meeting in New York City on Monday, 20 January 1964, would probably be most convenient for the majority of members. The Committee was asked to present at least a preliminary report at the 24 January meeting of the Executive Committee, if possible.
5. Policy on Affiliation of Foreign Physics Societies
The Director stated that the Governing Board, at its meeting on 4 October, had referred to the Executive Committee the matter of formulating a policy with respect to foreign affiliates. He gave some background information about the application of the Colombian Physics Society and, after brief discussion, it was the consensus that it appeared more appropriate for foreign physics organizations to seek affiliation with IUPAP. The Institute will be glad to give advice and assistance if requested.
6. Contract with Johnson Reprint Corporation on Old AIP Journals
The Secretary reported that an offer had been received from Johnson Reprint Corporation to take on consignment a limited number of certain back issues of JAP, JCP and RSI which are ten years old or older. The proposed arrangement, which would be non-exclusive, is for AIP to receive one-half of whatever sale price is agreed upon for all copies sold. We are to destroy any copies left in our stock and, if the demand should warrant, Johnson will reprint additional copies. We now have about 70,000 copies of the issues in question. Sales are low and storage costs continue. The following motion was made, seconded and passed without dissenting vote:
MOVED that the proposed contract with Johnson Reprint Corporation as described above be approved.
The Director suggested that an announcement about the availability of these issues be run in each of the subject journals.
7. American Vacuum Society Journal
The Secretary stated that an agreement had been made for the Institute to help launch a new journal for the American Vacuum Society, an Affiliated Society of AIP. The journal will consist of six issues per year of approximately 75 pages each, and the first issue will be July-August 1964.
8. Letter in Support of NSF Budget
The Director reported that he had sent telegrams and letters to appropriate members of the US House of Representatives and the Senate in support of the original NSF budget for 1964. He said that if there were no objections (and there were none) AIP would continue to pursue this course.
9. Progress with Neodata, Inc.
The Secretary said that, as a result of comments at the 4 October Governing Board meeting, the staff had been in contact with the subject organization in an effort to determine whether it can handle any parts of our dues collection and subscription operations better and cheaper than we can do them ourselves. A previous bid from Mailers, Inc., was about in line with our own costs for 1963 and a little above our budgeted costs for 1964. The staff will continue to seek bids and make comparisons in an effort to reduce costs still further wherever possible.
10. Member Rates on AIP Journals for Individuals Only
The Secretary displayed copies of dues bills and purchase orders which illustrate a problem which increases our costs. As an example – a member may be billed for dues and several journals; he may send his personal check for his dues and a note telling us that his company will order the journals for him. Then the company will send us a purchase order for the journals at member rates containing involved instructions about how they should be billed. In other cases, we have received purchase orders for both individual membership dues and subscriptions at the member rates. Executive Committee members voiced strong disapproval of this practice and agreed that the staff should return to the senders any such purchase orders and request payment for dues and member-rate subscriptions only on the basis of the standard bills presented by AIP. The Secretary was requested to send copies of any such purchase orders to an officer of the Society involved. Also, future AIP bills are to carry a statement that journals are for the member’s own personal use.
The following motion was then made, seconded and passed without dissenting vote:
MOVED that the staff be commended for calling attention to this abuse and for taking a strong stand to eliminate it.
11. Next Meeting
As previously reported, the next meeting of the Executive Committee will be a breakfast meeting at the Hotel Statler on Friday, 24 January 1964.
The meeting adjourned at 12:50 p.m.