March 18-19, 1988

Governing Board of the American Institute of Physics

Minutes of Meeting

1. Convene – Roll Call

The meeting was convened on Friday, 18 March 1988, at 1:30 p.m. in Conference Room A & B at the Woodbury Office. 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.

Grant asked that 1988-89 Governing Board members identify themselves as he read the roster.

Members Present:
Hans Frauenfelder (Chairman), Orson L. Anderson, Robert S. Bauer, (Fri. only), Robert T. Beyer, Peter B. Boyce, Alex Dalgarno, William L. Duax, Frederick H. Fisher, Kenneth W. Ford (Executive Director), Judy R. Franz, Thomas E. Graedel (Fri. only), Roderick M. Grant (Secretary), Robert G. Greenler, W. W. Havens, Jr., Donald F. Holcomb, James A. Krumhansl, Arlo U. Landolt, David Lazarus, Harry Lustig, Eugen Merzbacher, James S. Murday, James A. Purdy, Jarus W. Quinn, Robert Resnick, Joseph M. Reynolds, Jean St. Germain, F. Dow Smith, A. F. Spilhaus, Jr., Murray Strasberg, Martin Walt, Gerald Wheeler, Jack M. Wilson, Kurt F. Wissbrun, Jerry M. Woodall

Members Absent:
Peter M. Bell, Herwig Kogelnik

Member Society Officers Present:
Reuben Alley (AAPT), Howard Voss (AAPT), Catherine M. Foris (ACA), Elaine P. Osterman (AAPM), Nancy L. Hammond (AVS)

Guests:
H. William Koch, Former Executive Director, AIP, Julia Phillips (MRS Secretary), Harry L. Staley (Staley, Robeson, Ryan, St. Lawrence) (Fri. aft.), Alan McGowan (President, Scientists' Institute for Public Information (Fri. eve.)

AIP Staff:
Gerald F. Gilbert, Treasurer; Robert H. Marks, Managing Director of Publishing; John S. Rigden, Managing Director of Physics Programs; Darlene A. Carlin, Director, Publishing II Branch; Bernard Dolowich, Controller (Sat.); Timothy Ingoldsby, Managing Director, Information Technology; Lawrence T. Merrill, Assistant to the Executive Director; Paul A. Parisi, Manager, Special Projects; John T. Scott, Director, Publishing I Branch; Nathalie D. Wagner, Assistant to the Secretary; Spencer Weart, Manager, Physics History

2. Report of Secretary

1. Minutes of 29 September 1987 Meeting

   The draft minutes of the 29 September 1987 meeting were approved by acclamation as presented, with the correction noted that Joseph M. Reynolds should be included in the list of members present at that meeting.

2. Memorial Resolution for I. I. Rabi

   A resolution of appreciation in memory of I. I. Rabi, written by Rigden, and approved by the Executive Committee at its February meeting was noted. It was subsequently transmitted to his family.

3. Memorial Resolution for John A. Thornton

   A resolution of appreciation in memory of John A. Thornton, written by Sickafus and David Hoffman, who were AVS colleagues, was presented by Sickafus and distributed. It was accepted for distribution to his family and colleagues and for entry into the minutes of this meeting.

   At this meeting on 18 March 1988 the Governing Board of the American Institute of Physics notes with regret and sadness the untimely death on 10 November 1987 of its past member, John A. Thornton.

   His single-minded devotion to science, his singular contributions to the generation and study of thin film materials, his persistence and effectiveness as an educator, and his never-failing humility had brought him to a unique pinnacle of esteem and affection in the eyes and hearts of his colleagues. Following his tenure as President of the American Vacuum Society in 1982 he served AIP on the Governing Board in 1984-85 and on the Committee for Physics Today in 1986.

   Even as John Thornton's presence was a guiding light to his professional community, his premature departure is a blow that has fallen heavily and will be felt for years to come.

4. Affiliated Society Matters

   1. Physics Clubs of Chicago and Richmond

      Grant reported that there had been no response for two years from the Physics Club of Chicago; the Institute was informed that the only contact person, Grant Miles, had died in December 1987. The Physics Club of Richmond has been inactive in recent years according to its contact person, who has corresponded with the Institute. Grant then made the following motion, which was seconded by Wilson and unanimously CARRIED.

      MOVED that the Physics Club of Chicago and the Physics Club of Richmond be dropped as affiliated societies of the Institute.

   2. MRS Status

      Ford suggested that the MRS be invited to send an observer to Governing Board meetings through 1990, contingent on the publication of their journal by AIP. He noted that the MRS does a far greater volume of business with the Institute than any other affiliated society. They have under consideration the possibility of requesting associate or full member status.

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

      MOVED that the Materials Research Society be invited to send an observer to Governing Board meetings through 1990, contingent on their Journal of Materials Research being published by AIP.

      Dr. Julia Phillips, current Secretary of the MRS, attended this meeting on behalf of the MRS. She noted that the MRS derives considerable benefit from its journal, and that AIP also handles the placement service and equipment exhibits at the MRS meetings. She also reported that the MRS, at their fall meeting, decided not to request associate member society status at this time.

   3. SPIE Status

      Ford said he had received an inquiry from SPIE regarding the ramifications of associate member society status. He will respond to their request.

3. Report of Chairman

1. Actions of Executive Committee Since Last Meeting

   Frauenfelder called attention to a summary which was distributed with the agenda.

2. Report of ad hoc Committee on Composition of the Executive Committee

   Frauenfelder referred to the 9 February 1988 letter from Ann E. Wright which constitutes the report of the ad hoc Committee on the Composition of the Executive Committee. He noted that there are a number of competing problems; as the size of a committee is increased, it is harder for a committee to work and reach conclusions; if the committee is kept small, not all ten Societies can be represented.

   Lustig said he questions the selection formula as presented here, because no weight was given to the dollar volume of business and level of services done by Member Societies.

   In response to a question from Greenler (current chair of the Nominating Committee), Grant stated that under the Wright proposal the Nominating Committee would continue to be responsible for nominating Governing Board members for terms on the Executive Committee. In the case of Societies which have more than one representative to the Governing Board, the Nominating Committee would have to make a choice from among them. Member Societies could suggest who might be the appropriate person to nominate from among the possibilities.

   Frauenfelder said the current problem is how to follow up on the report. The Governing Board can accept it, or it can instruct the Board Chair to appoint a new committee.

   Grant commented that any change in the size of the Executive Committee (in this proposal, adding two members) would require a constitutional amendment. The problem of how to allocate the slots would be handled via a new Bylaw or as a Rule.

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

   MOVED that the recommendations of the Ad Hoc Committee on Composition of the Executive Committee be accepted and referred to the Committee on Constitution and Bylaws for recommendations on their implementation.

   (The following related discussion took place after completion of Agenda Item 8.)

   Landolt said he thought that last year the Nominating Committee suggested that the Executive Committee and other committees should have more changeover in their membership. He does not see this happening here. Boyce agreed, saying that he made this point as a member of the ad hoc Committee on the Composition of the Executive Committee, but it is not in in the final draft.

   Wilson remarked that the people with the longest term are able to get the most done as they know the history and how things work. He suggested putting some limitation on the number of consecutive terms which an individual could serve; an automatic scheme operates blindly but fairly.

   Frauenfelder said he is seeking a long-term solution; this matter does not require urgent action. He suggested that the Nominating Committee be asked to address this problem at their next meeting.

3. Resignation of Robert H. Marks

   Frauenfelder announced that Marks had resigned as Managing Director of Publishing, effective 25 April 1988, in order to become Director of the Publications Division of the American Chemical Society. He thanked Marks for all he has done for AIP in the last 18 years.

   Ford said in his one year as Executive Director he has realized Marks' value to the Institute, one tangible reflection of which is the dollar volume and net revenue of the publishing activities. He expressed his personal thanks to him and wished him well.

   At a later point in the Friday afternoon session, Koch spoke regarding Marks' resignation. He said the announcement made at this meeting had given him little time to consider how best to express his appreciation. From the time Marks came to AIP (May 18, 1970) the four members of the Management team functioned very effectively together for about 17 years. Much of the growth at AIP during that period has been due to the growth in publications under the direction of Marks.

4. Report of Executive Director

1. Report on Organizational Realignments

   Ford introduced Ingoldsby, the recently named Managing Director of the newly-organized Information Technology Branch. He then called attention to the AIP chart of organization which includes every fulltime employee. He noted that Dolowich has returned full-time to the position of Controller.

2. Annual Report for 1987 and Authorization to Publish in Physics Today

   Ford referred to the draft of his annual report which had been distributed, and highlighted accomplishments at AIP throughout the past year.

   The following motion was made by Ford, seconded by Grant, and unanimously CARRIED.

   MOVED that the annual report of the Institute for 1987 be accepted and authorization be given to publish it in Physics Today.

3. Presentation of Committee Reports

   Ford noted the summary of actions taken at AIP advisory committee meetings, July 1987-March 1988. Full reports are also available to the Governing Board on request.

4. Resolution on Open Communication (from Committee on Public Policy)

   Ford referred to a proposed "Resolution on Open Communication" which was recommended by the Committee on Public Policy at its 8 March 1988 meeting. The motivation for this resolution is a response to the proposal from the White House to Congress to include in the Superconductivity Competitiveness Act of 1988 restrictive language of the Freedom of Information Act that would prevent government labs from freely sharing the results of unclassified research on superconductivity.

   Ford made the following motion on behalf of the Committee on Public Policy. It was seconded by Fisher and, following discussion, the motion was CARRIED with one abstention.

   MOVED that the following statement, on recommendation of the Committee on Public Policy, be adopted. (Given here in final form).

   “..... Be it therefore resolved that the Governing Board of the American Institute of Physics opposes the imposition by the Federal Government of any constraints on the free and unfettered communication of scientific and technological information generated through government supported research, by exemption to the Freedom on Information Act or any other means, unless that information is classified for reasons of national security."

5. Report of Annual Meeting of Corporation

Grant reported that this meeting, required by New York State law, took place just prior to the Governing Board meeting. He reported that approval had been received from the State of New York for the revised Articles of Incorporation, which were approved at the March 1986 Annual Meeting of the Corporation.

6. Report of Executive Committee – Nominations for Board Chair and Secretary for 1988-89

Frauenfelder and Grant were excused for this discussion.

On recommendation of the Executive Committee, the following motion was unanimously CARRIED.

MOVED that Hans Frauenfelder be elected Chair of the Governing Board (his third term) for 1988-89.

On recommendation of the Executive Committee, the fol owing motion was unanimously CARRIED.

MOVED that Roderick M. Grant be elected Secretary of the Governing Board (his seventh term) for 1988- 89.

7. Report of Nominating Committee

1. Elected Member-at-Large of Governing Board

   Greenler (Chair of the Nominating Committee) reported that Praveen Chaudhari was the nominee for Member-at-Large. The following motion was unanimously CARRIED.

   MOVED that Praveen Chaudhari be elected Member-at-Large of the Governing Board for 1988-90.

2. Report on Other Nominations

   The following motion was unanimously CARRIED.

   MOVED that the report of the Nominating Committee be accepted as presented.

   At this juncture Landolt raised the question of a suggestion of last year's Nominating Committee that there be more regular changeover in the Executive Committee. This is reported under Agenda Item 3.B., for continuity.

3. Appointment of Chairs of Committees by Chair of the Governing Board

   Grant read the list of committee chairs as designated by Frauenfelder.

8. Appointment of Subcommittee Members and Chairs

Ford said these appointments would be made shortly.

9. Physics Programs Items

1. Overview and Planning

   Rigden said that as most of the physics programs activities are described in Ford's annual report he will talk more generally. He sees the physics programs serving and working with individual Societies as well as in ways good for the physics community as a whole. Each Member Society faces and addresses concerns individually, so another function the physics programs can achieve is to identify various kinds of shared concerns and to address them in a coordinated fashion.

   He reviewed three new initiatives:

   Placement. He suggested to Citrynell that she extend the concept of career placement to career planning. An idea being investigated is to bring students of about 6th-7th grade level together with representatives from recruiting firms at the time of meetings in major cities. The AAAS is excited about this possibility in relation to the San Francisco meeting in January 1989. The San Francisco school system has agreed to send students for one afternoon. It may not work well, and may be rough at first, but there is a lot of interest. He hopes that Public Information can get media attention for this effort.

   Introductory University Physics Project. The spirit of curriculum reform is stirring. Questions need to be asked regarding introducing students to physics. He has a steering committee to look at this issue. The project had a successful conference recently at Harvey Mudd College and another one is planned at Carlton College in August.

   Project SEER (Science Education and Equity Reform). There is a proposal under review at NSF to support this project, which involves doing something about science education at the K-5 level. Why do girls and minorities make the judgment that physics is not for them? Equity audits will be done, and a series of workshops will be held. The Statistics Division is involved in analyzing data, and Public Information will assist in getting media attention.

2. Relocation of Education Division to Washington

   Ford called attention to his 2 February 1988 memo to the Executive Committee, with the 9 March 1988 revision to indicate approval of the move by the Executive Committee at its 11-12 February 1988 meeting.

3. 1988 Gemant Award

   The committee has not yet met to recommend a candidate for this award. In order to facilitate final approval of the award winner, Grant made the following motion, which was seconded by Lazarus, and unanimously CARRIED.

   MOVED that the Governing Board authorize the Executive Committee to act on behalf of the Governing Board in naming the Gemant Award winner, upon receipt of a recommendation from the Gemant Award Committee.

4. Report on Olympiad Fund Raising

   Merrill reported that AIP has taken over the fund raising for this activity. $40,000 has been raised to date, and he is awaiting responses from other organizations that have been solicited. He hopes for responses from Member Societies that did not contribute last year. Requests to Corporate Associates members went out late; there has not yet been time for many responses to come in. Letters also went to affiliated societies.

   Wilson reported that Larry Kirkpatrick has joined the team to work with the students. The Olympiad will be held in Austria in June 1988. There are 80 U. S. finalists, with the field to be narrowed to 20 before the training sessions begin at the University of Maryland. Interest is growing in the Olympiad; this year applications are up 25%.

5. Report on Activities of Senior Education Fellow

   Rigden called attention to this report, adding that he was impressed at how much Watkins has accomplished during the year.

10. Planning

1. Report by Spencer Weart on Long-Range Planning

   Weart said that AIP has had five-year plans, coupled with Function Planning but the need has been felt recently to have more integrated planning. He is the chair of the staff committee on long-range planning, with Ford as staff liaison. Members of the committee had had little prior knowledge of long-range planning. The process of planning and exchange of information is one of the most important aspects. The second most important component is the development of objectives. They hope to set definite targets and schedules, with costs. They will have something in draft form for the Executive Committee at its April meeting where there will be the opportunity for input on the first draft. If approved by the Governing Board at its October meeting, the long-range plan will be integrated with the budget process. By the time the project is finished, everyone will have a broader understanding of what AIP is and what it should be doing.

   Holcomb asked if there is a clear time scale for review. If too stretched out, long-range plans gather dust on shelves.

   Weart said they hope 1) to produce a short report; 2) to look not more than five years ahead; and 3) to develop a proper planning process for the future.

2. Study of AIP's Private Fund-Raising Potential – Report by Harry Staley

   The report of this development study, as authorized by the Governing Board, was distributed to the Governing Board prior to the meeting. Staley explained that the purpose of the study was to consider the advisability of creating a development office which would provide:

   1. professional staff for funding of AIP-sponsored and co-sponsored programs; and
   2. development staffing capability for Member Societies, upon their request.

   Fund raising is not an end in itself. It will only work if there is a well defined, genuine need for funds. He has found a rather general acceptance of the idea that there may be a need in the future for funds to be raised. Some of the Member Societies do no fund raising and don't anticipate doing any, while others do some now or have this under serious consideration for the future.

   In his report he has outlined the topics that most concerned the interviewees. There are answers to these concerns. We have come a long way in developing fund raising; it should not be implemented only in the time of a crisis. He thinks AIP would be best served at this point by first taking a look at the needs through study by a committee, then recruiting someone at the senior staff level.

   Lustig said he found the report good and thorough. Staley talks about a dual function of such an office: AIP and the Member Societies. What does he have in mind and where are the loyalties of a fund raiser going to lie?

   Staley replied that this is a complex question, and is the reason he cannot make further recommendations than he has made to date. The rationale has to be worked out so that all parties can live with it. He does not think there necessarily would be conflict between the Member Societies and AIP.

   Lustig and Beyer commented that, inevitably, AIP will look to members of the Member Societies. It is expected that a certain percentage of these have means. These are the ones who would be approached, so AIP would be in the position of what could be regarded as raiding the clientele of the Member Societies.

   Staley said this has to be monitored and controlled within the proposed development committee of the board; they would recommend only what the Member Societies are willing to have done.

   Frauenfelder noted two points:

   1. It is the Governing Board which will decide if this should be undertaken.
   2. He can see the possibility that a decision could be made to have fund raising for Member Societies the only purpose. AIP would get a percentage of the funds raised. No Society can afford the staff needed for a development office. He suggested that Ford offer a suggestion first to the Executive Committee, then to the Governing Board, as to which direction to move. We need to look at the matter in a positive light.

   Lustig suggested that a positive action would be to appoint a high level committee now. It should be comprised of Society representatives. He made the following motion, which was seconded by Lazarus (recommendation 1 from the Report):

   MOVED that the Governing Board authorize the creation of a Development Committee of the Board, to be composed of a representative cross-section of Member Society representatives, along with the Executive Director of AIP.

   Ford said it is his hope that the Board will accept the report along with all of its recommendations.

   Resnick said he was supportive of the report. He thinks AAPT could use aspects of the proposed office. Spilhaus said he is also enthusiastic and would like to go beyond recommendation 1, adopt the whole report, and have a committee to iron out the details. Duax said nine of the ten Member Societies were consulted. His Society, the ACA, was not. He wants to note that he is strongly in favor of this activity.

   Spilhaus moved a substitute motion, which was seconded by Landolt and was accepted as the main motion by a vote of 16 YES and 13 NO. After discussion and amendments, the following motion was unanimously CARRIED.

   The Governing Board of AIP authorizes the creation of a Development Committee of the Board, to be composed of a representative cross-section of Member Society representatives, along with the Executive Director of AIP. The Development Committee is charged with the responsibility for designing an AIP development program and for recommending to the Governing Board actions required to implement the program, including: personnel requirements, budget, fund-raising programs, relationships with Member Societies, and such other matters as shall be required for the appropriate implementation of the development program.

   Lazarus said he wants the minutes to show that it is the intent of the Governing Board to show that consultants be used as needed to implement the study and that members of the committee not be restricted to Governing Board members. Grant said the motion does not state that members need be from the Governing Board.

   Frauenfelder thanked Staley for his report. The following motion was made by Fisher, seconded by Wilson, and unanimously CARRIED:

   MOVED that the Governing Board receive, with thanks, the report "Development for American Institute of Physics", prepared by Staley/Robeson/Ryan/St. Lawrence.

3. Public-Policy Activities

   Ford reported that Condell will retire at the end of May. This will be at about the time of the move of the Education Division to Washington. Activities in place there now include the Visiting Scientist Program, Federal Awareness, Congressional Fellow Program, and the Federal budget process book. Most of these can be effectively taken on by the Education Division. He suggests that the initial work of the Education Division will be to handle these established programs, as well as SPS, and to get organized as a division in its own right.

4. International-Affairs Activities

   Ford noted that the new Committee on International Relations will need staff support in order to enlarge our effectiveness in the international sphere. This could logically be based in the Washington office. He suggests that the two support staff now in the Washington office continue; management would see at the end of the year what additional staff might be needed to move forward in public policy and international affairs.

   Boyce said he was dismayed that public policy activities in which AIP might engage are being downgraded. He thinks the Committee on Public Policy had a good menu of activities to pursue. We do have the Congressional Fellow Program, but the loss of a position which could make these activities work is unfortunate.

   Ford said he shares this concern, but the transition of staff gives an opportunity to evaluate and to see the type of person needed to provide staff support.

5. Congressional Fellow Program

   Ford reported that there were eleven fully qualified applicants, which have been narrowed to four who will be interviewed individually.

   Ford said there are now 30 Congressional Fellows on Capitol Hill. AAAS acts as coordinator of this activity. At the recent meeting of the CPP an AAAS representative stated that there is a need for double that number in science and engineering.

11. Space-Related Issues

Frauenfelder said the problem is clear. AIP is now operating in five different sites. There is no consensus among the Societies as to how to resolve this issue. What emerges as a possible solution is three locations. He sees Woodbury (publishing) as the largest, New York continuing, but with some growth, and a strong but not dominant presence in Washington. It is impossible to bring a definite proposal to a vote at this meeting, because we don't have one yet.

1. New York/Washington

   Ford noted the letters which had been received from the Member Societies. There is a substantial division of opinion as to whether to make a major move of programs from New York to Washington. A major area of agreement is to keep publishing in Long Island, and to consolidate our operations there. He suggests this should be our chief priority for now.

   Holcomb asked if it is expected that the present locations will be sufficient for some years if the Long Island facility problem is solved. Ford said that the answer is maybe; the picture is not clear at present.

   Wilson supports the notion that we are not ready to move AIP to DC now. However he disapproves of a decision not to move the physics programs branch to DC. He thinks this should be done immediately.

   Lazarus said there is no implication not to consider this. This can be recommended by Rigden.

   Ford said he thinks a space crunch will hit in New York in 1989. Any expansion, such as additional activity in the physics programs branch, will result in a crunch.

2. Long Island – Report on Survey of Sites

   Ford referred to his 2 February 1988 memo to the Executive Committee which discussing survey of available building sites on Long Island. This was discussed in relation to the preceding item.

*** The meeting recessed at 5:30 p.m.

Alan McGowan, President, Scientists' Institute for Public Information

McGowan addressed the group following dinner at the Plainview Plaza Hotel. He discussed means through which scientists can utilize various media to convey information.

A lively discussion followed his presentation.

*** The meeting resumed on Saturday at 8:30 a.m.

12. Information Technology

1. Subscription Fulfillment and Member Records; Recommended New Directions

   Ingoldsby referred to his 7 March 1988 memo to Ford giving a status report on subscription fulfillment. The new system, with the working name FAMIS (Fulfillment and Membership Information System), is to be developed in three phases. Phase I, to be completed within 60 days of the arrival of the new computing hardware, will consist of converting the existing batch-oriented fulfillment system from the Univac to the new computer. Phase II, to be completed by August 1988, will provide on-line subscription fulfillment and membership records services, with enhancements concentrated in the fulfillment area. Phase III, targeted for March 1989, will enhance membership record capabilities as desired by the Societies.

   The software selected is the Oracle Relational Data Base Management System (RDBMS). It is the most portable RDBMS available, and does not appear to be restricted to any particular hardware. The host hardware will be either from IBM or Wang. Each has something to offer; he reviewed the differences:

   • The Wang has a slightly lower cost. It is easier to use and has integration application capabilities, and he has experience with it.
   • The IBM has the best integration with the PC's we are now using and is expandable. It is the industry leader in disc technology. There is a wealth of third party software, more than from any other vendor.

   Frauenfelder said the recommendation brought to the Executive Committee was for the Wang, but the Executive Committee felt the cost differential was small (the IBM was slightly higher overall) and preferred to give the staff more flexibility by providing sufficient funds to purchase either system.

   Grant read the motion of recommendation from the Executive Committee for purchase of the system and for the revised 1988 budget.

   The following motion, as recommended by the Executive Committee, was unanimously CARRIED.

   MOVED that the Governing Board approve the expenditure of up to $750,000 for the purchase of hardware and operating system software for a Subscription Fulfillment and Member Records system.

   Ford said the budget approved in December shows a net of $750,000. The implications of the plan would add $350,000 to operating expenditures. This is too slender a margin. Management wants to revise the budget formally and try to reduce expenditures somewhat.

   The following motion, as recommended by the Executive Committee, was unanimously CARRIED.

   MOVED that AIP management be requested to present a revised 1988 budget to the Executive Committee for its approval at a meeting to be held on 25 April 1988.

2. Report on APS Decision Regarding Member Records

   (This discussion took place during the previous Agenda Item.)

   Quinn asked about the reduced work load and related unit costs as a result of the APS decision to develop their own member record system.

   Ingoldsby said his projections are based on the present work load. If APS does its own billing, the unit costs will rise.

   Havens said APS does not plan to do its own subscription fulfillment. AIP will continue to do the APS non-member billing for APS journals.

3. PI-NET/PI-MAIL – Advisory Committee Report

   Ford referred to his 4 February 1988 memo to the Executive Committee reviewing the 20 January 1988 meeting of the reconstituted committee, chaired by Borchers. The committee considers as top priority the development of a mail system on the new Gould computer. They felt it is better strategy to have the AIP system serve as a gateway to large databases elsewhere than to develop large databases on the Gould itself. They also recommended adding a qualified Unix programmer. He hopes to incorporate this recommendation into the budget revision. The PI-NET system is behind schedule. The system now provides a useful service to a limited number of people. They hope for more users with the implementation of the enhanced system, possibly as early as mid-summer. The committee endorsed the general features of the proposed pricing policy. Charges could be paid by credit cards or institutional purchase orders. Ford said Ingoldsby will have to get involved in this once the subscription fulfillment system is on track.

   Ingoldsby said he has engaged in discussions with Brookhaven National Labs, which is a BITNET node. He hopes to be able to link to this, with no cost other than the dedicated line between Brookhaven and AIP and communications equipment at both ends. He hopes this would provide a "gateway to the world" for ingoing and outgoing electronic mail, including BITNET, ARPANET, and the new INTERNET being developed through NSF.

13. Publishing Items

1. Agreements with Soviets

   Marks referred to Ford's 8 March 1988 memo to the Governing Board. Marks then reported on the three new contracts with the Soviets, finalized during a February visit to Moscow. He noted the invaluable assistance of Martin Levin, AIP's negotiator, who has excellent contacts there. These contracts will cost AIP more, but the new fees represent costs comparable with those paid by commercial publishers; the contract terms are being kept confidential. There is the possibility of selling ads in the U. S. that might appear in the Russian-language edition of RSI.

   VAAP is the copyright agency; a multi-year agreement was concluded with them for continued translation of 19 Soviet physics journals. Planning was initiated for a series of small conferences to be sponsored alternately by VAAP and AIP.

   MIR handles book publishing. A one-year agreement was signed for continued translation of RSI into Russian, with further negotiations for improved terms needed in the future. Joint book publishing activities were also discussed with MIR. An open-ended agreement was signed covering purchase by the Soviets of English-language journals from AIP and Member Societies, and a marketing effort is underway there for PT and CIP.

2. Proposed Exclusive Agreement with FIZ

   Marks noted the correspondence between Rittberger (FIZ) and Ford, and a comparison of currency of PHYS versus INSPEC. Marks said that a primary publisher feels abstracts are copyrightable; a secondary publisher thinks these are fair game. We have sold these for several years to FIZ, but have been unsuccessful in our attempts to make an arrangement with INSPEC. The correspondence given in the agenda represents preliminary discussions with FIZ toward an exclusive arrangement.

   Lazarus asked what is happening with INSPEC. The IEE had previously offered $5 for each abstract purchased and had said that an exclusive arrangement with FIZ might violate Common-Market agreements.

   Ford replied that legal opinion has not yet been obtained. He said it is essential that we continue to state for the record that they (INSPEC) are using our material without authorization. The worst that could happen is that they would rewrite the abstracts. He agreed that the chances that they would stop using them are slim. The agreement now in negotiation with FIZ contains a one-year cancellation clause. Because of the proposed relationship with FIZ, we want to actively promote the use of PHYS on STN.

3. Report on Computers in Physics

   Marks referred to the memos from Marks to Ford and from Parisi to Marks giving information about the progress to date of subscriptions to CIP. Marks said circulation is now about 12,000. It is targeted for 16,000 for this year. Not as many archival articles have been received as hoped, so there are fewer pages than projected at present. The non-member price has been lowered for this year. The news magazine section is very successful. The next crucial point will be the APS billing, to see if the subscriptions are renewed.

   Lustig noted that the library subscriptions have fallen behind the targets. How will this affect the financial future of the journal?

   Marks thinks the library subscriptions will increase. This is not the sole source of income. At least one-half of the total revenue is ads. If the quality is high, he thinks the library subscriptions will materialize.

4. Report on Handbook of Applied Physics Joint Project with VCH Publishers

   Marks noted the letter of agreement between AIP and VCH Publishers. An international editorial board is to be appointed by VCR Publishers. The maximum discount will be 20%; the majority of sales will be without discount. He predicts a nice revenue stream from this new venture. The project is well underway and is administered through the German Physical Society.

14. Finance and Administration Items

1. Estimated 1987 Financial Statement

   Gilbert distributed the estimated 1987 financial statement [to be attached to final minutes as Appendix A]. Reporting first on the statement of revenue and expense, he said the increase of about $1,535,000 over 1986 in operating revenue is due to more Soviet translation journal issues published and an increase in archival journal subscription income due to price increases. Revenue from Voluntary Page Charges is up by $114,000 due to a greater number of honored pages published in 1987. Advertising revenue increased by about $532,000 due to increased ad pages and a price increase in ad rates. Publishing Operations increased about $2,267,000, due to an increase in published pages, introduction of the new journal CIP (expense of $426,000), and publication of more new books. Increase in General Operations expenses of $750,000 is due to increases in expenses of Physics Programs activities. Increase in General and Administrative Expense of about $500,000 is mainly due to write-off of AZTECH software, increase in Computer Changeover Costs, and unassigned space.

   Short-term investment income is about $77,000 less in 1987 than in 1986. Long-term investment income is about $900,000 less due to the windfall in 1986 resulting from liquidation of two accounts. Total Net Revenue for 1987 is $1.5 million, compared with $3.9 million in 1986. This net revenue is transferred to the Fund Balances section of the balance sheet.

   Turning to the balance sheet, he noted that this is presented in a fund accounting format, with assets and liabilities assigned to the following fund groups: Operating Fund; Property, Plant, and Equipment Fund; and Restricted Funds. Cash and short term-equivalents in the Operating Fund in the amount of $15,124,427 represents primarily the funds in our cash management account. In Liabilities he noted three line items: $3,154,865 due to Member Societies (representing unallocated nonmember subscriptions received in late December and allocated in early 1988); $3,214,578 in deferred income; and $9,956,842 in deferred subscription income.

   Accounts Receivable ($2,061,895) consists mainly of two elements: regular A/Rcovering page charges, advertising sales, and reprint sales (totaling about$1,063,0000); the balance of about $998,900 includes DOE and FIZ contracts, Sovietroyalties, and grants. Property, Plant and Equipment: $6,510,917 represents the bookvalue of these. Our Net Equity in Property, Plant and Equipment (deducting Current Maturities of Long-Term Debt and Long-Term Debt) is $4,586,171.

   Long-term Investments in the Operating Fund (managed by investment managers), which total $16,746,707, are marketable securities carried at cost.

   Total Assets amount to $43,989,810. This equity is vested in two parties: outside creditors represented by Total Liabilities ($21,499,319), and Total Fund Balances ($22,490,491).

   The Executive Committee authorized the transfer of 25% of the annual net revenue to each of the four Designated Funds (Building, Equipment, Physics Programs, and Publication). After this distribution, the Designated Funds for Special Purposes (as of 12/31/87) amount to $16,138,089. These funds are not segregated on the books; the Board can change the designated goals at any time.

   Restricted Funds, which include nine special purpose funds, amount to $1,566,231.

2. Presentation of Approved 1988 Operations Budget and Planned Revision

   Gilbert reviewed the major points of the 1988 budget. He reviewed the summary statement of operations (page 1).

   Gilbert noted the Statement of Physics Programs (page 3) and the Net Revenue, excluding activities for Member Societies (page 4). He then noted the summary pages for the Archival Journals, the Soviet Translation Journals, Physics Today, Computers in Physics, and Information Services.

   Franz questioned the 10% decrease in Physics Today member subscriptions (page 32). Gilbert said we had incurred large fluctuations in the SPS membership. In 1986 it shows 102,000; in 1987, 90,000. Parisi explained that the SPS number was inadvertently not included in the totals for 1987 and 1988.

3. Computerization of the Budget

   Gilbert called attention to the 1 March 1988 memo to him from Dolowich discussing progress, goals, and procedures. Dolowich noted that APS has requested a revision of the budget to show the individual Society operations separately.

4. Report of Investment Advisory Committee

   Gilbert referred to the report of the 5 February 1988 Investment Advisory Committee meeting. The total market value of the portfolio before 19 October was $17.8 million. Following that date it was $15.9 million, but by the end of December it was up to $16,154,000. The market value as of 29 February was $17 million, showing a dramatic recovery.

   Gilbert said the objective of our goals is $27.5 million. As of the end of February the total market value of our invested amounts is $17 million. $900,000 is now being held in cash, as the Committee wants a cash position. They now have the 1987 investment income of $1.5 million to invest; these two total $2.4 million. He will contact the new chairman of this committee in order to call another meeting; they have to settle the question of the $2.4 million that can now be invested long term.

5. Financial Handling Charge for 1989

   Gilbert said that Article IX of the Constitution specifies that Member Societies pay a financial handling charge, not to exceed one percent of the business done for the Society, to be determined annually by the Governing Board. The Executive Committee recommended the following, which was unanimously CARRIED by the Governing Board:

   MOVED that the financial handling charge for 1989 be fixed at five-eighths of one percent of business done on behalf of Member Societies.

6. Developments with IRS Audit

   Gilbert referred to his 11 February 1988 memo to the Executive Committee and to a 4 February 1988 letter to Touche Ross from Lehrfeld giving his current legal opinion of the case. The IRS has found that the Employment Tax area is a potentially lucrative one and are going after this revenue. An appeals hearing was held at the IRS New York office. Present were the IRS Appeals Officer, Lehrfeld, Beyer, Marks, and Gilbert. The Officer asked questions of the attendees and then asked for additional explanatory statements and affidavits. He does not expect a decision soon and asked AIP to sign a Consent Waiver extending the completion date to 31 December 1989. Gilbert signed it, on advice of counsel. Lehrfeld is optimistic that AIP will win this test case, the outcome of which will affect many societies.

15. 1989 Budget Guidelines

Ford referred to his 4 February 1988 memo to the Executive Committee on this subject. Previously the budget had been prepared in two months. The plan is to extend the preparatory period. He is seeking advice regarding the philosophy of the budget: 1) how to budget investment income; 2) journal pricing policy; 3) whether to seek outside funding. He noted the ideal set of things he would like to have but these are incompatible and cannot all be done simultaneously: 1) To give a strong bottom line and increase the reserves; 2) Make journal price increases modest; 3) Expand physics programs activities.

Ford thought progress had been made toward handling the fund raising more professionally. In his annual report he shows external funds and grants, totaling $440,000. Our consultant thinks there is potential to do more for physics programs activities and for the Societies. He enumerated the present non-journal sources of revenue: books, PI-NET, electronic products, FIZ contract. The primary source of revenue is still the sale of journals.

Spilhaus said in the December Executive Committee meeting there was discussion regarding market rents for New York resident Societies. Will this be done? Gilbert said he is working on this subject now.

Walt said he thinks we should keep in mind that goals are needed for reserves; this should be an overriding concern in preparing the budget.

Ford said it is not clear that we can or should ever reach the goals. He thinks we are in a strong position. If we set achieving the goals as top priority it would be deleterious to programs.

Frauenfelder said it is useful to put in even a small amount toward the goals rather than waiting to see what is left over.

16. Future of Assembly of Society Officers

Strasberg reported that the Committee on Society Services thinks this is a useful meeting for the exchange of information among officers. The committee developed a list of things they would like discussed and made a strong recommendation to continue the Assembly. They suggest that the format be a little different, with perhaps an hour allowed when a topic could be discussed in roundtable.

17. Report of Committee on Society Services

Strasberg reported that the committee had met Friday morning prior to the Governing Board meeting. At the last Governing Board meeting they were asked to consider the present charge and the future of the committee. Everyone at their meeting thought this was a desirable committee; it is a forum for discussing the nuts and bolts and interactions between a Society and AIP, and an exchange on both sides. Considerable discussion was held on problems with the processing of dues and subscriptions. Each society will be asked to prepare a shopping list of services that they want from AIP. It is obvious that not all societies are aware of the services that are available through AIP. AIP is to prepare a list and designate a contact person.

18. Announcements and Other Business

Several announcements were made. There was no additional business brought before the Governing Board at this time.

19. Future Meetings

Grant reviewed the dates and locations of meetings for Governing Board and Executive Committee. For the March 1989 Governing Board meeting the dates of March 31-April 1 were suggested.

Holcomb suggested a location other than Woodbury. Staff will look into the possibilities.

20. Executive Session

The staff were excused at 11:40 for the executive session, which is reported in the official minutes only.

21. Adjournment

The meeting adjourned at 12:00 noon, followed by lunch.