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SMITHSONIAN INSTITUTION 792
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MADE BY BAKER-VAWTER CO.
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The Secretary then read the following letter:

CARNEGIE INSTITUTION OF WASHINGTON
WASHINGTON, D. C.

Office of the President

February 12, 1929.

Dr. C. G. Abbot, Secretary,
The Smithsonian Institution,
Washington, D. C.

My dear Dr. Abbot:

I have just examined with care the form of contract between the Research Corporation and the Smithsonian Institution relative to the insecticide patent, the turning over of which to the Research Corporation is under consideration.

Regarding the general form of the statement I have no comment to make, as the technical aspects of the contract are of such a nature that my opinion would have relatively little value compared to that of an expert in preparation of such contracts. I do not know the technical value of the statement regarding re-capture on Page 4, but assume that this is legally fully sufficient to cover the requirements of the Smithsonian with reference to termination of the agreement with the Research Corporation if in the opinion of the Smithsonian the patents are handled to the disadvantage of the public or of the Smithsonian.

As I see the situation at the present moment the most critical aspect of the problem relating to this particular patent contract concerns the policy of the Smithsonian regarding acceptance and disposal of patents in general. There is also a question regarding influence upon the future of the Smithsonian of an arrangement through which the Smithsonian may profit from development or use of patents. I am not able to rid myself fully of the idea that the position of the Smithsonian Institution relative to the acceptance of profit or income from patents may be similar to that of regularly constituted governmental agencies.

I believe that in the vote of the Smithsonian Board disposing of this case there should be full recognition of the fact that an extremely fundamental principle is under consideration, and a policy is established which in one way or another may vitally influence the future of the Smithsonian Institution. In making this decision in my judgment it is important that the Board have in view various other ramifications of Smithsonian policy which in one way or another touch the relation of the Smithsonian to the Government, and the

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