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[[preprinted]] Smithsonian Institution 782 [[/preprinted]] [[underlined]]F[[/underlined]] The patent assignment having been made of record in the U.S. Patent Office, the Secretary of the Smithsonian on October 9, 1928, consulted with the President and Directors of the Research Corporation of New York concerning the terms and conditions under which the Research Corporation would undertake to manage the commercial exploitation of the patent. [[underlined]]G[[/underlined]]Research Corporation offers to (1) investigate; (2) develop and introduce commercially if found practicable; (3) advance sums necessary thereto; (4) keep books of all transactions relating thereto; (5) pay to Smithsonian Institution 50 percent of net receipts after setting up a fair reserve;(6) guarantee to prevent the Smithsonian from suffering any losses, or being harmed by any suits incident thereto; (7) guarantee to protect the public from extortionate prices of the product; (8) the above to be conditional on receiving from the Smithsonian the assignment of all right title and interest in the patent. [[underlined]]H[[/underlined]] Research Corporation points out that (1) its objects are nearly identical to those of the Smithsonian Institution; (2) all of its profits aside from prudent reserves must go to promote the progress of research; (3) the Secretary of the Smithsonian is an influential member of its Board of Directors; (4) the Smithsonian Institution is named in Research Corporation's charter as the preferred beneficiary of its grants' (5) on all these accounts, as Research Corporation points out, the Smithsonian's program will be promoted either directly or indirectly by the 50 percent of net profits of insecticide retained by Research Corporation as well as by the 50 percent direct royalty of the Institution. [[underlined]]I[[/underlined]]The questions arise: (1) Is Research Corporation's proposal a fair one? (2) Is its standing, financial strength, and skill in business adequate? (3) Are the duties of the agent and the advantages of employing it sufficient to warrant the relinquishment of half the net profits by the Institution? (4) Could the Institution, acting for itself, probably realize a larger return from the property? (5) Are the interests of the public likely to be conserved? [[underlined]]J[[/underlined]] Research Corporation was organized in 1912 on the initiative of Dr. Walcott and Dr. Cottrell to handle the Cottrell patents for electrical precipitation of dusts, which Dr. Cottrell gave to the Research Corporation. Special care was taken to provide it with a Board of Directors who could give it an efficient business administration so that not only the original Cottrell patents but other patents that it might acquire would be handled to the best advantage. Its directors and officers at present are: President and Managing Director - Howard Poillon Secretary, Treasurer and Legal Adviser - Lloyd Scott Other Directors: Dr. C.G. Abbot, Secretary, Smithsonian Institution, Washington, D.C. Coleman DuPont, 120 Broadway, New York City Frederick A. Goetze, 63 Wall Street, New York City Dr. Ellwood Hendrick, 139 East 40th St., New York City Otto H. Kahn, 52 William Street, New York City Ivy Lee, 111 Broadway, New York City Colonel Isaac N. Lewis, 1 Russell Terrace, Montclair, N.J. Dave Hennen Morris, 19 East 70th Street, New York City Clinton P. Townsend, 30 East 42d Street, New York City. [[initialed]]CGA[[/initialed]]
