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SMITHSONIAN INSTITUTION
783 
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The purpose of the organization are:

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"To provide means for the advancement and extension of technical and scientific investigation, research and experimentation by contributing the net earnings of the corporation, over and above such sum or sums as may be reserved or retained and held as an endowment fund or working capital, and also such other moneys and property belonging to the corporation as the Board of Directors shall from time to time deem proper, to the Smithsonian Institution, and such other scientific and educational institutions and societies to conduct such investigation, research and experimentation."
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"Research Corporation may pay no dividends to its stockholders and all of its net earnings over and above those required for the conduct of its business must be eventually available for scientific investigation and research."

Many subsidiary patents relating to the Cottrell process are owned or shared by Research Corporation, so that its monopoly of that interest for years is assured. The business has greatly increased of late, owing especially to the efficient management of Mr. Poillon, so that at present the Corporation is in great prosperity, has a large reserve, and earnings exceeding $600,000 per annum. The outlook for the future is bright. The interest of the Directors in the Smithsonian Institution and its work is cordial, and increasing. The Secretary of the Smithsonian is urged by other Directors to take an active, prominent part, especially in matters relating to grants. The present directors being mostly of middle age, and the patent having but 13 years to run, it is unlikely that a less favorable personnel of Research Corporation will succeed during the life of the proposed arrangement.

[[underline]] K [[underline]] The exploitation of the patent may involve: (1) searching of the art to ascertain rival claims if any; (2) obtaining reports from skilled experts on the manufacture and possible uses of the insecticide; (3) investigating the business and standing of some dozen chemical manufacturing firms likely to wish rights; (4) decision and arrangements as to most suitable allotments for manufacturing and distribution under the patent; (5) making with such company or companies as seems most proper the best possible bargains, safeguarded against legal complications, and with a proper view to protecting public interest; (6) discovering uses not yet conceived for the product; (7) supervising appropriate advertising literature; (8) defending legal actions if any; (9) as a remote possibility actually manufacturing and distributing insecticide, in the event that it proves difficult to get outside companies to operate to a proper standard; (10) endeavoring to effect conciliatory arrangements as may relieve the present somewhat chaotic conditions in the insecticide business.

[[underline]] L [[underline]] In view of the numerous and important items just stated it appears that the division of net profits proposed is fair. It seems certain furthermore that the Institution could not with existing personnel attend to the business properly for itself, and it is doubtful if acting directly, it could realize as much from the business, either in financial returns or in security for its own and public interests, as through the agency of Research Corporation. Furthermore, since the Institution stands to gain