Document ppwx4XznxGYgj8q4e0GkgVMyd

-BtJpGBT Am e r ic a n petoot/rttm tnstttttto PLAINTIFF'S EXHIBIT API-125 ( i ( SC-API-2117 October 28* 1959 Mr. . 0. Mattocks American Petroleum Institute 50 West 50th Street New York 20, New York Dear Mr. Mattockat - '` Enclosed are three copies of the Introduction and Summary of the Pinal Report on API Research Project MC-1. Within ten days, we expect to be shipping you two hundred copies of the Pinal Report together with the multilith mats, should this supply be Inadequate. Sincerely yours. AWHsbk A, W. Horton UNIVERSITY OF CINCINNATI KETTERING LABORATORY ACCOUNT of Anraicjti rvrr.Gum nts?xn?r png Bid qtttutia _______________ SALARIES (Imd on Proportion of Timo Actually Spent on Project) Direct Salaries.......................................................................... Indirect Salaries Histopathological Preparation... Other Services_________ ______ ......336*00 3,923*10 10,29k*1b MISCELLANEOUS EXPENSE . . . . . . and Antoni Cara Purchase of Animals................................... ........ ....... Special Laboratory Supplies---------------------------------Travel ---------------------------------------------------- ---- ------- .....Ufa**9 l3hg*10 715*80 Overhead (Proportion of Heat, Cat, Electricity, Steam, Telephone, GjenyeLJab'Matory ^ Supplies, Postage, Annuities, Pensions, Maintenance, etc._.f..!....^.TM_r* ****-*** ^ TOTAL..................... 16#117eU8 **'*"it End w --------- -------1959-- 16.117 .W Balance Due Kettering Laboratory at End of----------------------------------------------------------- 2nd maarta? 195P 1&,117*U6 Expenditures____________________ --____ ____________ Receipts ----- ------------------------------------------------------------------------------------- Balance Available for Further Woric at End of------------------------------- --------------------------- Balance Due Kettering Laboratory at End of----------------------------------------------------------- .V t* ( UNIVERSITY OF CINCINNATI KETTERING LABORATORY ArrmiMT af c`Sai?o ckeccal ccmnxt ------B3Ranr52S2ilS5S------------ FAB 2ad CSABTSK 1&Z9________ SALARIES (ItMri m PrfBrtfew of TIm Aet*iljr Sport m Njlrtl Diroet SalariM .----~------- ---------- ---------- -------ladtroct SbUHm Hbtoptfcolofiel ftapmtiM--....--........ OHitr Sonic**--------------------------- .. --... 125*07317 *49 MISCELLANEOUS EXPENSE ( NrekiM of Aniaub----------- --------------- ----..--------------------- Spodal LaWntwy SappliM--------------------------------------------------------------- Trml ......--.......................................... ................ ............. ..... wA.W-- iNN . (PrepwtiM of KUit, Cm, BoctricHy, StMM, Taltpheu, flM*il,,tJbffrry SuppliM, Nta|, ANiHM, NmIom, MBtetwuaa, rtc......*^.r...-....... ... , tBS&3to.9S9 TOTAL . ... 9.693.79 bind Dm Kttttriaf Ubwrtiy t l*d of___ :------------------------------------------ ,,,, 2nd Quarter 1959 423*32 bpiiftMi------------------------------------------------- ---------- Ipcaipti ...................................................... _______ Mj.Si 9,470*47 ( Wi MIWI^ IMBVVIVVJ t lad ad_--.....,,,........... UNIVERSITY OF CINCINNATI KETTERING LABORATORY ACCOUNT OF AMERICA* PETROLEUM IB3TIT0TE FOR lt QPARTSR X9S9 SALARIES (Bind on Proportion of Time Actually Spent on Project) Direct Salaries............................................................................-1*.6QQ*1X Indirect Salaries Histopathological Preparation Other Services__ 122,50 1sQ52.,Q7........ . ^aaL.6fl, MISCELLANEOUS EXPENSE Purchase of Animal*.. ............................ A35.*7P............-- Special Laboratory Supplies__________________________ ______ __________________ Overhead (Proportion of Heat, Gas, Electricity, Steam, Telephone, Genera! Laboratory Supplies, Postage, Annuities, Pensions, Maintenance, etc224*.Q61,;513.70 Balance Available for Further Work at End of.-J^5 Balance Due Kettering Laboratory at End of____________ ___ _________ _ TOTAL....................... 4,1+07.38 20,524.86 Expenditures __________________ 4x407.38 Receipts Balance Available for Further Work _ at End quarter 1959____________ Balance Due Kettering Laboratory at End of.......,,...... ... .......... 16,117 UNIVERSITY OF CINCINNATI KETTERING LABORATORY ACCOUNT of uuxicMt pgntougm aamm FOB 4th Quarter 1938 SALARIES (Based on Proportion of Time Actually Spant on Project) Direct Salaries......................................................................................... ?e658.e.P0,, Indirect Salaries Histopathologica! Preparation............... ................................. W1.*.5Q... Other Services...............................................................-- MISCELLANEOUS EXPENSE Purchase of Animals...-.Anlwa..SujjpUf!e Special Laboratory Supplies---------------- ------------------Travel ..................................... .......................................... .... 36T..1I. 2*046*01... ..... ifflfeHL Overhead (Proportion of Heat, Gas, Bectricity, Steam, Telephone, GeneraU^oratory , Supplies, Postage, Annuities, Pensions, Maintenance, etc____._ - 4,356.00 Balance Available for Further Work at End of 3*6 tluartar 1958 TOTAL .... 23,902,68 Balance Due Kettering Laboratory at End of----------------------------------------------------------- Expenditures MS*S*..1258_______________ 3,457.82 Receipts-----------------------------------------------------------------------------------------: Balance Available for Further Work at End of 4thjfciajrter 1953 20,524.86 Balance Due Kettering Laboratory at End of________________________ 8,457.32 {, UNIVERSITY OF CINCINNATI KETTERING LABORATORY ACCOUNT OF MXmiCM nSBOIXM IMTItm FOR 3*& Qumrtmr 1958 SALARIES (Bawd cm Proportion of Tuna Actually Spent on Prefect! Direct Salaries....................................................................... ............. Indirect Salaries Histopathological PreparationTM............................................... Other Senrices.........................................................-- ........ m*T5_ 3.163.91 MeMiMHwaalhBn MISCELLANEOUS EXPENSE Purchase of Animals--a.. AnltlilTl ..filgpUtt.........................69.1.*6.1. Special laboratory Supplies.-------------------------------------------------- ------ ------- ------------ wi....______________________ ____ *#_ Overhead (Proportion of Heat, Gas, Electricity, Steam, Telephone, General Laboratory Supplies, Postage, Annuities, Pensions, Maintenance, etc.--jRa.Ijjrf.tS?- 3,056.9 TOTAL .... Balance Available for Further Work at End of.........................................-.....--...-........- Balance Due Kettering Laboratory at End of--2a&-4uart*r.-.19`^_________ 31*9* 6#2S5*Q Tom* amExpenditures ____ mm................. Receipts --_________ 6,225.10 o#i?7i^c 54*3*0.00 Balance Available for Further Work at End of--3l& air*i*.1958 S3v93a63 ( Balance Doe Kettering Laboratory at End of----------------------------- roan use kit. uml tm-t-u UNIVERSITY OF CINCINNATI KETTERING LABORATORY account OF mxcMf tmouem jassxrm FOR Baft 13SS SALARIES (Based on Proportion of Tuna Actually Spont oo Project) Direct Salaries...................................................................-.................. 5*96.*5$.Indirect Salaries Histopathological Preparation....................................................................... OHier Services...................................................... ............ aroc#.aQ MISCELLANEOUS EXPENSE Purchase of Animals.. ........................... .is#.nia..TM Special Laboratory Supplies............................................................. --16T7.*13.-- Travel ---------------------------------------------------------------- ----------------- -- Overhead (Proportion of Heat, Gas, Electricity, Steam, Telephone, General Laboratory Supplies, Postage, Annuities, Pensions, Maintenance, etc--J&MXaSH____- . TOTAL.......................14,733.35 Balance Available for Further Work at End ,1 lt gqagtqy 1SS3______ 14,701*95 Balance Due Kettering Laboratory at End of----------------------------------------------------------- bp.n<li>.m MJSSSXUSSS.__SS.TO.8S Receipts---------- -------- ------ --------------------------------------------------------------------- Balance Available for Further Work at End of----------------------------------------------------------- Balance Due Kettering Laboratory at End of,,S^_^i*^3P_195!9_________ roau mo err. lab. sk--m 51*9* !/ XETTSRIKG LABORATORY SECTSOR; AMERICAN PETROLEUM INSTITUTE (ACPRCPP) ESTIMATED BUDGET POR 1959-1960 -2-, OOO. OQ MSSj. 10-14-1953 TOTAL DIRECT CHARC-SS- n^o.oo t* r" "*1 o t *"v T o'.'.' c o2. c ry -- Gc'JtT2. - 0 Div. - n Jiv. - S Div. - T _/iv. -- V/ Div Arcl-ticai Laboratory Pathclofrr Er.idor.iio In 07 /* n . - J . DemriolcrR Direction and Editing Erganeering jjir.riirr Statistics Jorroutinr Shoe Drnlicating and Drafting , Other TOTAL DIRECT SALARIES .12,QS)0QQ 50.00 *nTnr\ .12.170*00____ OVERHEAD 190 % ,14.604.00 ,, _ t Diract Charges Direct Salaries Overhead TOTAL EXPENDITURES 2.450.00 ,9 170.00 j --14;604.00------ 29.254.00------ AMERICAN PETROLEUM INSTITUTE ( ACFRCPP) ESTIMATED BUDGET FOR SEARS 1959 *0 I960 DIRECT SALARIES A. Vesley Horten Russell Tye Chemist Secretary Editing - ; Maltilithing . (15*) (25*) (75ft) (10*) SUPPLIES ...... ................... . . TRAVEL OVERHEAD - 120$ of Direct Salaries 5,000.00 2,510.00 6,480,00 500.00 . 50.00 50.00 $12,170.00 2,000.00 450.00 14,604.00 TOTAL ESTIMATED BUDGET $29*224.00 (? KETTERING LABORATORY SPONSOR? AMERICAN PETROLEUM INSTITUTE (ACFRCPP) ESTIMATE FOR BUDGET FOR 1959-1960 DATE.? 10-14-1953 DIRECT CHARGES Supplies Animals Animal Care Histopath. Prep, Travel TOTAL DIRECT CHARGES DIRECT SALARIES Toxicology - Genfl. - C Div. - H Div. - S Div.- T Div. - Div. Analytical Laboratory Pathology Epidemiology Clinic Dermatology Direction and Editing Engineering Library Statistics Computing Shop Duplicating and Drafting Other TOTAL DIRECT SALARIES 2,000,00 __ 450.00____ P.4R0.00 .. !. t 12.000.00 ... 50.00 ! 1 30.00 12._L7Q_.Q0 . .. ............. *' jI l 1 j i --------------------------- 1 ......... i -------------------- ---j i .......... i! \ ;' : 1 i i1i OVERHEAD 120 % SUMMARY Direct Charges Direct Salaries Overhead TOTAL EXPENDITURES 14,604.00 * l _____ --_________ j1__________________ ___ nn______________________________ .. 12,170.00 14,604.00 29.,224.00 . AMERICAN PETROLEUM INSTITUTE ( ACFRCPF) ESTIMATED BUDGET POR YEARS 1959 tO i960 DIRECT SALARIES A, Wesley Holton Russell Tye (150) (250) -. ' Chemist . . (750) . Secretary ` ` (100)'- . Editing Multlllthlng * t * .-5,000.00 2,510.00 , 6,480.00 500.00' 50.00 ` 50.00 .,, ;; $12,170.00 SUPPLIES . . ....................... 2,000.00 TRAVEL ............................. *** 450.00 OVERHEAD - 1200 of Direct Salaries 14,604.00 TOTAL ESTIMATED BUDGET ............................... $29,224,00 UNIVERSITY OF CINCINNATI KETTERING LABORATORY ACCOUNT OF American. Petroleum Institute FOR,, April and.May. 1958-------------------- a pt SALARIES (Bated on Proportion of Thna Actually Spout oo Project) Direct Salaries.... ....... --........... ------ .----------- ------6.253a.4X_..... -- Indirect Salaries Histopathologieal Preparation-................................ 53*00.............. Other Sendees............................................22.7-6..QO........ .... jfi, 25JL, ill MISCELLANEOUS EXPENSE Purchase of Animals. "..AniJna.l..jC&r........ --............ J.y.V..*.y.v............-- Special Laboratory Supplies---------------------------------------------- .206.1.,.]$.------------ Supplies ordered in April, May, June Travel -iMl..flutj3t.aadlng.,;fcr.a.v.e.l.)....... ....... ....... 55.6.j1.2.______ Overhead (Proportion of Heat, Gas, Electricity, Steam, Telephone, Central Laboratory Supplies, Postage, Annuities, Pensions, Maintenance, etc..-2l(33-*il7________ 5r 101.33 TOTAL....................... 11,354.74 Balance Available for Further Work at End of--1-st-Quarter 4958--------------- 14,701.93 Balance Due Kettering Laboratory at End of-------------------------- -- Expenditures .Apni_and...MfiJ.................... ..... ll.3S4.7il Receipts---------------------------------------------- --- --------------------------------- Balance Available for Further Work et End of_JM.ay_195_______________________ 3,347.19 rone mo Balance Due Kettering Laboratory at End of----------------------------------------------------- ---- xrr. las, tw-4-M UNIVERSITY OF CINCINNATI KETTERING LABORATORY ACCOUNT TM Mmeni wtmtnxm mmm* FOR li Ctaurfy 1958 SALARIES (Baud on Proportion of Timt Actually Spent on Project) Direct Salaries................................................................................. AAtteJS -~ Indirect Salaries Histopathological Preparation............................................. 37*00........ Other Services................... ...................................... ------------------------------ 6fyAFi.OA MISCELLANEOUS EXPENSE Purchase of Animals...JOA.JUUMBX..ttHl .................... 30**60____ Special Laboratory Supplies........................................................... 2^120^93. Overhead (Proportion of Heat, Gas, Electricity, Steam, Telephone, General Laboratory Supplies, Postage, Annuities, Pensions, Maintenance, ctc..2+.4&2L&0jQ----------- _ TOTAL . . . . Balance Available for Further Work at End of_l57--------------------------------------------- 26,275450 Balance Due Ketterinc Laboratory at End of---------------------------------------------------------- Expenditures ------------------ XI,573*57- Receipts Balance Available for Further Wort at End of- lt Balance Due Kettering Laboratory at End of__________________ He 373.57 UNIVERSITY OF CINCINNATI KETTERING LABORATORY ACCOUNT OF AMERICAN EF.TR0T3STTM TMSTTMBB ESTIMATE FOR 1st Quarter 1968 ........ ! SALARIES (Based on Proportion of Ton* Actually Spout on Project) Direct Salaries................................... .......................... .................. 2,.6.4!L38------Indirect Salaries Histopathological PreparationTM........ _................................3Z*.Q0....... OHier Services................................ ............................ l#.63Z-65........ ..... MISCELLANEOUS EXPENSE Purchase of Animals..TM.3dL..AnlJial..C.ltt!e..TM................... 3.Q4*j5D. Special Laboratory Supplies-- ----------------- ---- ------------------ --------- ke-P.iSJ---- Overhead (Proportion of Heat, Css, Electricity, Steam, Telephone, General Laboratory - Supplies, Postage, Annuities, Pensions, Maintenance, 1,532,01 .. . 1. Q57.54 Balance Available for Further Work at End of. TOTAL . .................... Balance Due Kettering Laboratory at End of--,--.---------------------------------- --------- 6,273.57 Expenditures ---------------- --------- _-- ------ ------------------ ------------------------ Receipts------------------------------------------------------------------------------------ Balance Available for Further Work at End of---------- _-------------- ------------------------ Balance Dim Kettering Laboratory at End of--____ roea ms err. ut*. sa-e-ss ( MiO. < r IV 2-2-2-^7^ n<*. ti svw^. I. n.S'o , / foo -arrfar f nt 1 ff J ~ . l 7 r0i---------------------- ---------------------------- :---------------------------------------------------------- Iff 2 if i -- ' |. _ j ( I American Petroleum Institute BO WEST BOnt STREET NEW YORK 20. N. Y. CCESECTED copy OF: Letter dated - February 7* 1950 To Members Central Committee on Fire Protection Medical Advisory Committee Gentlemen; For your Information there is enclosed copy of letter dated February 8th which is being issued by Lacey Walker, Secretary, to executives of oil companies in solicitation of contributions for special projects of interest to you as follows; Flammable Liquids (HFPA) Project $ 15,000 Medical Advisory Besearch 90,000 We regret it is impracticable to give each of you the amount of contribution requested from each company. r/a / j 0 ,, ^L ^ ** 2.T t* Very truly yours, DVS:d D, V. Stroop I AMERICAN PETROLEUM INSTITUTE Budget for Years 1957-58 and 1958-59 Funds Budgeted 1957-58 For Chemical and Biological Work It is anticipated that these funds will be expended entirely by the end of this fiscal year (1957-58) $ 39, 150.00 Proposed Budget 1958-59 For Chemical and Biological Work It is anticipated that these funds will be expended entirely in accordance with the following allocations A. Identification of individual classes of polycyclic aromatic hydrocarbons and development of analytical methods therefor. In this work approximately half of the cost will apply to chemical, and half to biological experimentation. B. Development of analytical criteria by which to estimate the catalytic (accelerating) activity of the medium. Of this, approximately three fourths of the cost will apply to biological experimentation. C. Combination of above measures so as to estimate the carcinogenic potency of complex oils and to apply the analytical tool to petroleum oils which have been tested biologically. About four fifths of this work may be expected to be of a chemical character. 35,240.00 40 per cent 25 per cent 35 per cent American rsmaurn institute 1956 - 195T BUDGET APPROPRIAIICM For Epidemiological Dot*. Tor Chemical and Biological Work 7#500.00 43.$00.00 Lea a unexpended balance in funds as of June 30, 1956 ACTUAL BUDGET ALLOWANCE............................................................................. EXPENDITURES - Juno 30,195fc to December 31, 1956 For Epidemiology 641.76 For Chealcol and Biological Vork 21.654.65 BALANCE REMAINING AS OF DECEMBER 31st, 1956 ................................ ESTIMATED EXPENDITURES - Jan. let, 1957 to Jana 30, 193d For Epidemiology 6,858.24 For Chemical and Biological Vork 21.220.35 51,000.00 625.00 50,375.00 22.296.41 28,078.59 28,078.59 API RESEARCH PROJECT MC-1 ESTIMATED BUDGET POR EXPERIMENTAL WORE 1956-1957 Direct Salaries Chemical Research Related Biological Research Pathology (micro) Supervision Pensions $ 7,900,00 1,930,00 200,00 U.U.10.00 $14,440.00 Hlstopathology Mlacellaneous Animals (purchase) Animal care Special lab supplies Travel Expenses $ 410.00 750.00 3,200.00 2.500.00 I 6,860.00 Overhead and Indirect Salaries $ 14,440.00 # 1,730.00 | 830.00 # 6,860.00 $ 19,640.00 $ 43.500.00 u sK ^u *N ( Balance Remaining at End of 1955 0,275.29 Receipts - February 1956 ................................. 27,257.20 Total Sum Available.................. .... .......................... 50,512.29 V* ran Expenditures - January sr 775 J9 ' ' Cancer Project 5,964.71 Epidemiology 1,567.47 7,35218 25,180.12 ( Dr. A. Wesley Horton AMERICAN PETROLED* INSTITUTE 50 Beat 50ih Strset Sew York 20f * X* August 27* 1956 Board of Dlrsctors Univarsity of Cincinnati Cincinnati 19, Ohio Gentlemen: Thio ooeisunieatlon is authority to continue work on ths investigation of ths toxioity sad sods of action of certain petroleum products for the year ending June 30 1957* according to the terns of the agreement dated January 0, 1946 and on the basis of a maximum budget for operating expense as followst 1, For analyses of epidemiological data $7,500 2* For ohenloel and biological oork 43*500 Subject to and upon your acceptance of these toms, ere shall pay you $29,250* The balance of $21,750, less the unexpended balance in the fund on June 30, 1956, will be paid as of January 1, 1957. It ia understood that any balance in the fund on June 30, 1957 will be returned to the American Petroleum Institute and that no excess over the amount of the budget le to be obligated or spent without written authorisation* Very truly ycura, . AMERICAN PETROLEUM INSTITUTE Aooepted and Approved UNIVERSITY OP CINCINNATI through ita Board of Directors By /a/ Frank H* Porter President By // Larry talker Secretary wHoXman By // Ralph C* Burslek Clerk Horton Heyroth COPY AMERICAN PETROLEUM INSTITUTE 50 West 50th St., New York City 20 May 2, 1955 Board of Directors University of Cincinnati Cincinnati 19, Ohio Gentlemen: This communication is authority to continue work on investigation of the toxicity and mode of action of certain petroleum products for the year ending June 30, 1956, according to the terms of the agreement dated January 8, 1946 and on the basis of a maximum budget for operating expenses of $65,000. Subject to your acceptance and as of July 1, 1955 we shall pay you the sum of $32,500. The balance of $32,500, less the unexpended balance in the find on June 30, 1955, will be paid as of January 1, 1956. It is understood that any balance remaining in the fund on June 30, 1956 will be returned to the American Petroleum Institute and that no excess over the amount of the budget is to be obligated or spent without written authorization. - Very truly yours, AMERICAN PETROLEUM INSTITUTE By /s/ Frank M. Porter President ; By /s / Lacey Walker[ Secretary Accepted and Approved UNIVERSITY OF CINCINNATI through its Board of Directors By /s/ Renton K. Brodie Renton K. Brodie, Chairman By /s/ Ralph C, Bursiek Ralph C. Bursiek, Clerk /9ST % '9S-<-UtLO^cX 7-7 3-si Expenditures ( 3rd Quarter 1955 4th Quarter 1955 1st Quarter 1956 Epidemiology Cancer Study April and May 1956 Epidemiology Cancer Study 2,252.03 8,197*22 June 1956 - Epidemiology 31.90 66,086.40 Receipts - July 1955 March 1956 May 1956 ri6 253 32,500.00 ,27,237.20 5 262.80 65,000.00 7, 2 fcj Cj /?. -, I ( ESTIMATED BUDGET OF THE KETTERING LABORATORY FOR THE INVESTIGATION OF POTENTIAL HEALTH PROBLEMS OF THE PETROLEUM INDUSTRY ASSOCIATED WITH THE FRESMCE OF CARCINOGENIC COMPOUNDS IN CERTAIN MATERIALS AND PRODUCTS API RESEARCH PROJECT MC-1 July 1, 1954 - June 30, 1955 Salaries Direct Salaries $ 27,000 Indirect Salaries Histopathological Preparation $ 2,000 Other Services | 20,000 Miscellaneous Expense Purchase of Animals 0* $ 1,^250, Special Laboratory Supplies 5,000 Travel # 4,000 Overhead (Proportion of heat, gas, electricity, steam, telephone, general laboratory supplies. Postage, annuities', pensions, maintenance, etc.) $ 13,000 Total # 49,000 I 23,250 $ 72,250 ESTIMATED BUDGET OP THE KETTERING LABORATORY FOR THE INVESTIGATION OP POTENTIAL HEALTH PROBLEMS OP THE PETROLEUM INDUSTRY ASSOCIATED TOTH THE PRESENCE OP CARCINOGENIC COMPOUNDS IN CERTAIN MATERIALS AND PRODUCTS ' API RESEARCH PROJECT MC-1 July 1, 19514- - J*m 30, 1955 I. Biological experimentation relating carcinogenic potency to conditions of exposure of animals to various types of refinery streams and fractions thereof. Continuing concurrent examination of the methods of assay and modifications, where indicated, to improve the significance of the results as measures of relative hazards of these materials to workmen. Further examination of ' methods of reduction of hazards from such exposure by washing, use of barrier creams, etc. $ 20,000 II. Determination of nature and concentration of carcinogens and accelerators of carcinogenesis which make Important contributions to the potency of refinery streams # 32,250 III, Epidemiological Program Collection and correlation of data on cases of cancer among employees of the petroleum industry including any special investigations in particular plants of the industry ' - # 20,000 Total 72,250 September 20, 1952 Dr. Robert A. Kehoe The Drake Hotel Lake Shore Dr, and Michigan Ave. Chicago, Illinois Dear Dr. Kehoej I hope' Ill have a chance to see you before the meeting of the Project Advisory Committee on Wednesday to discuss this budget very briefly. Since your tight schedule may make this impossible, I am writing this note to explain the attached modification of the proposed budget for 1953-54-* Two reasons have led to this reduction in the estimated budget for the API program. The first developed from my meeting with a Koppers representative on September 18. His company has already budgeted $10,000 for the year 1953 as their share of the cost of a coal tar project. Further discussion of the scope of sponsorship of that project with John Lauer indicates that its total budget will probably exceed $4.0,000 for 1953* Secondly, item eight of the report of the sub committee on carcinogenicity to be made to the Medical Advisory Committee on September 25 is a recommendation that the API project be continued at approximately its present cost ($100,000 per year) for the year beginning July 1, 1953. The attached revision of our estimated budget will thus, hold more closely to this recommendation of the members of the subcommittee and at the same time permit us to do more for the coal tar people without overexpanding our research team or facilities. Sincerely yours. AWHsmjg A. We si ey~ Horton' BUDGET OP THE KETTERING LABORATORY FOR THE INVESTIGATION OP THE POTENTIAL CANCER HAZARD OP THE PETROLEUM INDUSTRY SPONSORED BY THE MEDICAL ADVISORY COMMITTEE of the AMERICAN PETROLEUM INSTITUTE July 1, 1903 - June 30, 1954 Salaries (Based on proportion of time actually spent on project) Direct Salaries #38,500*00 Indirect Salaries Eistopathological Preparation $ 5#000,00 Other Services #28,450.00 # 71,950.00 Miscellaneous Expense Purchase of Animals # 2,500,00 Special laboratory supplies # 6,800,00 Travel # 5#000,00 Overhead (Proportion of heat, gas, electricity, steam, telephone, general laboratory supplies, postage, annuities, pensions, maintenance, etc.) #17,823,00 , ' # 32,123.00 Total #104,073.00 BUDGET OP THE KETTERING LABORATORY FOR THE INVESTIGATION OF THE POTENTIAL CANCER HAZARD OF THE PETROLEUM INDUSTRY SPONSORED BY THE MEDICAL ADVISORY COMMITTEE of the AMERICAN PETROLEUM INSTITUTE July 1, 1953 - June 30, 1954 I* Determination of the location and extent of the cancer hazard from refinery intermediate and product streams Direct Salaries $ 4,000.00 Indirect Salaries 3,500,00 Miscellaneous Expense 2,000.00 Overhead 1,860.00 $ 11,360.00 II, Development of semi-quantitative biological testing'methods for measuring the relative carcinogenic potencies of petroleum products Direct Salaries $ 3,500,00 Indirect Salaries 4,200.00 Miscellaneous Expense 2,300.00 Overhead 1,630.00 ' $ 11,630.00 III, Determination of the relationships between the rapidity of induction of benign and malignant tumors in experimental animals and various exposure factors such as frequency of application, dosage per application, area of exposure, number of applications, special irritant or toxic properties of the oil applied, etc. _ ' Direct Salaries $ 4,50.OO Indirect Salaries 5,200.00 Miscellaneous Expense 2,300.00 Overhead 2,090.00 # 14,090,00 Indirect Salaries include Histopathological Preparation and other services. ,, Miscellaneous Expense includes purchase of animals, special laboratory supplies, and travel. IV. Development of rapid analytical methods for estimating the relative carcinogenic potency of any given refinery Intermediate or product A. Isolation and identification of compounds responsible for observed potency of various types of oils and determination of physical and chemical properties of these compounds which could be used in the development of a widely applicable analytical tool (including associated animal testing) Direct Salaries $12,000.00 Indirect Salaries 10,200.00 Miscellaneous Expense 3#050*00 Overhead 5,500.00 $ 30,750.00 B Semi-empirical correlations with carcinogenic potencies based on the chemical or physical properties of known or suspected carcinogens in the oils (including associated animal testing) Direct Salaries $ 5,000.00 Indirect Salaries 3,700.00 Miscellaneous Expense 1,350.00 Overhead 2,330.00 $ 12,380.00 V. Epidemiological Program A. Collection and correlation of data on cases of cancer among employees of the petroleum Industry Direct Salaries $ 5,000.00 Indirect Salaries 3,500.00 - Miscellaneous Expense 2,350.00 Overhead 2,320.00 ( ' $ 13,1-70.00 B. Special investigations of cases of cancer ' in particular plants in the industry or among customers of the industry Direct Salaries $ 2,500.00 Indirect Salaries 1,750.00 Miscellaneous Expense 850.00 . Overhead 1,163.00 $ 6,263.00 C. Survey of pertinent literature on cases of cancer occurring among workers exposed to tar or oil in their occupation , Direct Salaries $ 2,000,00 Indirect Salaries 1,14-00.00 Miscellaneous Expense 100.00 Overhead 930.00 $ 14., 14.30 *00 ESTIMATED BUDOET OF TBS KETTERING LABORATORY FOR THE ZXVESTIOATIOH OP POTENTIAL HEALTH PROBLEMS OF THE PETROLEUM INDUSTRY ASSOCIATED WITH THE PRESENCE OF CARCINOGENIC OOMPOUMDS IN CERTAIN MATERIALS AND PRODUCTS API RESEARCH PROJECT MC-1 July 1# 1953 - June 30, 1954 Salaries Dlreot Salaries $ 30,000.00 Indirect Salaries Histopsthological Prspsrstion $ 2,000,00 Other Sorvioos % 22,000*00 . $ 54,000.00 Miscellaneous Expense . Purchase of Animals $ 1,500.00 Speoial Laboratory Supplies $ 5*500.00 Travel # .4*000.00 Overhead (Proportion of heat, gas, electricity, steam, telephone, general laboratory supplies, postage, annuities, pensions, maintenance, etc.) # 14,000.00 $ 25*000*00 Total # 79*000.00 ESTIMATED BUDGET OP THE KETZERIMO LABORATORY FOB THE IHVBSTIOATIOH OP POTENTIAL HEALTH PROBLEMS OP THE PETROLEUM INDUSTRY ASSOCIATED WITH THE PRESEMCS OP CARCIMOOEVIC COMPOUHSS IB CERTAIH MATERIALS AND PRODUCTS API RESEARCH PROJECT *C-1 July I. 1953 - June 30, 1954 I. Further development of semi-quantitative biological teeting methode for measuring the relative carcinogenic potencies of petroleum products and fractions thereof $ 12,000.00 II. Determination of the relationships between the rapidity of induction of benign and malignant tumors in experimental animals and various exposure factors such as frequency of application, dosage per applioatlon, area of exposure, number of applications, special Irritant or toxic proparties of the oil applied, ete. | 14,500.00 ' III. Development of rapid analytical methods for estimating the relative carcinogenic poteney of any given refinery intermediate or product A. Isolation and Identification of compounds responsible for observed potency of various types of oils and determination of pertinent physical and chemical properties of these compounds | 30,500.00 1 B. Development of seml-empirleal methods of $ 4,500.00 estimation of oardnogenio potencies of oils based on the ohsmieal or phyaloal properties of known or suspected carcinogens and accelerators IV. Epldemlologioal Program Collection and correlation of data on oases of cancer among employees of the petroleum industry, including any tpr.eial Investigations in particular plants of the industry $ 17,500.00 > $ ^jOOV.DO American Petroleum Institute - Budget Carry over from previous year - $ 8,387*02 3rd Quarter, 1952 4th Quarter, 1952 1st Quarter, 1953 2nd Quarter, 1953 $ 21*,010*..53 27,958.35 25,713.02 30,1*94.72 Estimated budget $108,210.62 $104,760.00 I 96,372.98 received in July and Dec. 1952 i BUDGET OF THE KETTERING LABORATORY FOR THE INVESTIGATION OF THE POTENTIAL CANCER HAZARD OF THE . PETROLEUM INDUSTRY . SPONSORED BY THE MEDICAL ADVISORY COMMITTEE . of the AMERICAN PETROLEUM INSTITUTE . Supervision - general , $ 5,000.00 Determination of the Significance of Cancer in the Industry by Epidemiologic Field Investigation Compensation to Personnel Principal Investigator Secretarial and Clerical $ 7,000.00 $ 5,000.00 2,000.00 Miscellaneous Expense Annuities and Pensions ; -450.00 Travel 2,500.00 Supplies, forms, stationery etc * 1,400.00 4,550.00 Total 11,550.00 Biological Screening of Refinery Streams and Products Compensation to Personnel Technical Personnel Secretarial and Clerical Animal Care ' ' . Miscellaneous Expense Annuities and Pensions Animals and Food Other supplies - 8,000.00 too.00 00.00 500.00 1,000.00 2,100.00 8,900.00 5,600.00 Total 12,500.00 Standardisation and Improvement of BioXoglo&l Techniques Compensation.to Personnel: - Technical Personnel- ' Secretarial and Clerical Animal Care - Miscellaneous Expense Annuities and Pensions Animals and Food - - -Other Supplies 12,000.00 . 750.00 ' 700.00 800.00- . 1,200.00 5,000.00 --` 5,000.00 -' `' `. 18,450.00- - r* t 2. a a: ffTi 'J=y Development of Analytical Tools for Identification of Carcinogenic materials . - " . ,, > ; . - Compensation to Personnel " 25#>30.00 Technical Personnel' '. 25,I5G*00', ' . Secretarial and Clerical, .1,000.00 -' . Animal Care 1,150.00 `' 7 Miscellaneous Expense .. Annuities and Pensions' Animals and Food , Other Supplies .. - .' 1#740.00 2.400.00 7.200.00 11,540.00 .. ... ' .. . .. . . Total - .... ' .... 56,640.00 General Expenses Sot Distributed to Any Single Part ' of Project . General Administration .. . . . 4,600.00 *. Educational Expense;(Cost of - . Professional Training of . Physicians for Industry) - 7,160.00 Maintenance# Beat# Light# Power ` and Telephone Service 5,700.00 . ' Travel Expense . , 2 #500.00 '. . TotAl *_ .. ... . - 1 19,960.00 Grand Total' of Budget -Por All Purposes $105,900.00* * This does not come out precisely the same as the sum arrived ` - ' at by our usual.method of approach, based upon the methods of . . , accounting employed .regularly In the university and Laboratory. : The latter was !' . . . .- , $104,760,00 4* * l :* %. l'** - * ( ZXPLA5AT0RI. VOTES -* BUDGET 1952-55 Compensation fop Personnel Supervision 7".; y. . General supervision of Vork. in ailcategdries by ; ' . - v Director, Assistant -Director and Division Beads of ' r - Laboratory. ; ' Conferences, day to day consideration of program and critical examination of current data, critical study : . and editing of reports * general coordination of entire . . program tovard the accomplishment of the primary.and secondary objectives; / ' -." - ' * : This is . not administrative ...expense, but high level contribution to conduot of the investigation*. , Administrative overhead relates to accounting, . . budgeting, purchasing, routine, correspondence, etc . Determination of Actual Significance of Cancer Baxard Investigation of the occurrence of cancer among ; employees of the industry, including all efforts and ' plans to provide and recordt infomation from past, present and future .experience eo :ai. to elucidate the Tacts as to the actual, hazard ,/and eventually to reveal the effectiveness of preventive Measures vhlch may be taken. Screening. of: Streams *; r.v, OVb\seVrvations .adds '^anf .''ithte>4rVesponsvero*f\'an*im'sa*ls1' for" t'h e primary purpose of locating refinery produots and processes vhioh are. potentially hasardous. -7. ; - . I--..;"'* J,-p- ' .< - . Standardisation of Biological`Techniques . Critical! study.of the procedures for testing animals / - /. vhereby the results can be Interpreted in definitive and. _ V;quantitmtiyeftems in relation to the cancer hasard* -.- , -.'. ; Developa^t of rinai^ical. Tools for. Justification of Baxard .; - : The seareh-for' :a .suitable analytical means'- of. identifying . carcinogenic substances in a petroleus product depends,7:..-7 cn the one, band, oaiprecise means for measuring careino-.c/.,%' r-genie-pjbtehey^'aadj.-cn^ the "bther, on-identifying* - strictly-correlative physical or. chemical property -or.'.'^7~ structure in the product^ Such vork on animals *a :is rz*--`.T ` devoted primarily1 to '-the' establishment :of. potency -in :<^. 7 rr;: . quantitative terms' against a specific property / chemical configuration or other means for. the identification of a speciflc-tchemlcal.or classf of chemical.is' budgetsd-/>77i77 funder' this fctndingv'TTbe chemical ^technology.involved H'.- .^3^ inTthis vork-requires'no exolanation or'elaboration! 'i; 777 ( API RESEARCH PROJECT MC-l ESTIMATED BUDGET FOR JULY X, 1952 to JURE 30, 1953 CHEMICAL TECHHOLOQY AND EPIDEMIOLOGY Supervision, general Principal investigators Experimental and teohnologio phases Epidemiologloal surveys Research chemists Travel Laboratory supplies $ 2,500 Salaries: 28,000 x 1.2 Overhead % 36,500 33,600 Total $ 70,100 c^ BIOLOGICAL TBSTIHQ Supervision, gsnsrsl | 2,500 Gross Pathology and records of animals 2,600 Teohnlolans (Animal Tests) 3,700 Micropathologioal examinations 2,000 Animals, 3,600 at 72/ aaoh' 2,600 Postmortems, 2400 at 50/ each 1*200 Preparation of slides, 2400 at 1,50 each 3*600 Supplies 3*500 . Salariest 10,800 x 1.2 Overhead $ 21,700 $ 12,960 Chemioal Technology and Epidemiology 34*660 34*660 $ 70,100 Total #104,760 American Petroleum Institute 80 WEST BOTH strut ' NEW YORK 20. N. Y. To Members Medical Advisory Committee June 14, 1950 Subject: University of Cincinnati Kettering Laboratory Gentlemen: For your consideration ve enclose a copy of a letter dated May 9 and memorandum dated March 15 both from Dr. Robert A. Kehoe who outlines a need for increasing the University's overhead charges against research projects carried on at Kettering Laboratory. You will note that his proposed program of graduate training is expected to increase the total overhead percentage by more than 5$ but less than 10$. As recommended in November .19^9, the carcinogenicity budget for 1950-51 is $92,000. With the additional overhead. Dr. Kehoe estimates the maximum total budget should be increased to $100,000 to cover the next 12 months. Ve believe the unexpended balance of current funds at Kettering Laboratory on June 30, 1950 will be at least $8,000; There fore, our payment of new money should not exceed the $92,000 which is now available and on deposit at the Institute. In view of these facts and with the possibility that you may favor acceptance of Dr. Kehoe's recommendation, we enclosfe a rough draft of a modified letter of agreement for your consideration. Your comments, either favorable or unfavorable, should be mailed to me at the earliest possible date because the agreement should be submitted to Dr. Kehoe not later than June 26. If no objections are received on or before that date we shall assume you have none to submit. Yours very truly. DVS:fn Enc. D. V. Stroop t l copy S.M1X COZY UNIVERSITY OP CINCINNATI Department of Preventive Medicine and Industrial Health May 9, 1950 The Kettering Laboratory College of Medicine--Eden Avenue Cincinnati 19, Ohio Cable Address: Ketlab, Cincinnati Telephone: CApitol 1414 ' Mr. David Stroop. Director of Safety, American Petroleum Institute, 50 West 50th Street, New York City 20. Dear Mr. Stroop: I am sending you herewith several copies of a memorandum I have pre pared for submission to the sponsors of the experimental work of the Laboratory. I believe this will be self-explanatory, but I have con sidered it desirable to append a note to it, in explanation of its length, which seems a bit long. It Is my firm conviction that there is nothing which this Laboratory can do for industry, and specifically for the petroleum industry, which would be more useful in the long run than to spend some of our efforts in training medical men to appreci ate the general problems of industrial health. This is a service that industry needs, and I am sure that it can afford to pay a nominal cost for the benefits to be achieved. Therefore, I have gone to some length to explain our program and our ideas In connection with it. I realize that this may be a very poor time to suggest more extensive expenditures. On the other hand, I think this should be presented for consideration. It might have been wise to do it at the formal meeting of the Medical Advisory Committee, but, quite frankly,' I did not want to cloud the issues under consideration by bringing forward a proposal of this type. I leave entirely to your discretion the manner and the time of presenting this. In my feeling, if it were approved in principle, we would be in position to handle the situation fairly well this year, since our cost for the current year will probably be relatively small. I shall appreciate hearing from you at your convenience concerning this matter. Sincerely yours, RAK ef Enc. ( /S/ Robert A. Kehoe Robert A. Kehoe, M. D. UNIVERSITY OP CINCINNATI The Graduate School of Arts and Sciences Institute of Industrial Health The Kettering Laboratory of Applied Physiology College of Medicine - Eden Avenue Cincinnati 19# Ohio Cable Address; Ketlab, Cincinnati Telephones University 2665 MEMORANDUM TO RESPONSIBLE EXECUTIVES OF ALL INDUSTRIAL ORGANIZATIONS INVOLVED IN TOE EXPERIMENTAL PROGRAM OF TOE KETTERING LABORATORY. COLLEGE OF MEDICINE. UNIVERSITY 0 CINCINNATI The developments of recent years in the field of industrial health and, specifically, the evolution and growth of the activities of this Laboratory in this field, have posed a number of problems that are of considerable importance to this Medical College and Uni versity and are, likewise, matters of concern to industry. It is nec essary to formulate certain policies and plans in order to deal with these problems on some more or less permanent basis,' and It is the purpose of this memorandum to obtain an expression of opinion from representatives of industry relative to such plans. The work which led to the creation of the Kettering Labora tory began in the Department of Physiology in the Medical College in 1925# when the study of a single toxicologic and hygienic problem was undertaken for, and at the expense of, one industrial organization. While this work was expanding beyond the space and facilities avail able in the laboratories of the Medical College, additional industrial organizations became Interested in our engaging in other investiga tions. There being no source of funds in the University by which to provide facilities for such work, a group of three industrial organi zations provided funds to build and equip a laboratory, which was 2 completed late in 1930, and was named Che Kettering Laboratory, in honor of the distinguished industrialist, scientist and inventor, Charles Franklin Kettering, whose work, with his associate Midgley and others, had created the industrial commodity (antiknock material containing tetraethyl lead as the primary ingredient) out of which our first industrial investigation grew. Che significance of the foregoing comments is that American industry, with particular reference to the chemical industry, was on the way to its present dominant position in international production and commerce, creating, as it developed, the special industrial hazards which it had no proper means of appreciating or controlling. Historically, the same thing had happened in Germany, and It was in evitable that medical attention should be brought to bear on these problems by some means. Ihe facilities available in' the United States vere very scanty and wholly inadequate, and, by sheer accident, we were drawn into this type of work at a comparatively early time. Che Laboratory, therefore, has developed, with something of a lag, in re sponse to the needs of the situation, and since no other meani was available, these developments, in the University, were financed by industry exclusively. From Its small beginning, the Laboratory has expanded its equipment and personnel to fit the work that it has been able to accept, and with the completion, equipping and.staffing of a new wing in July of 1949, which more than doubled the available space, its physical facilities accommodate a staff of more than one hundred persons, and its annual budget comes to about $400,000.00 per year. This growth and development has not been merely quantitative but qualitative as veil, in that experience with the problems of in dustry has contributed to the shaping of policies, methods of pro cedure and functions. It became apparent at an early date that the experimental work had to be applied in the industrial environment, and that much of it would have to be done with the practical problems of industry clearly in mind. This resulted in frequent consultations with industrial people, in a variety of direct professional services to industry, and in the acquisition of direct familiarity with the industrial organizations, plants, and personnel involved. This ex perience demonstrated, among other things, that trained personnel for the work of industrial health were not available. Therefore, nothing was more clear than that a University medical center such as this had the duty of making provision for professional training. For the most part, the facilities required for such training were available in the Colleges of this University, but a great deal of planning and organ izing was necessary to put them to work. By July of 1947 plans had been crystallized for this purpose, the Institute of Industrial Health had been organized in the Graduate School of Arts and Sciences, of the University, and two graduate physicians had been enrolled for'a course of three years of study and training as candidates for the degree of Doctor of Industrial Medicine. ' While these developments were in progress in this Univer sity, somewhat similar activities began and progressed elsewhere. In response to the continually growing requirements of American industry in these respects. Other centers of research or professional train ing, or both, have been established or are being established and ( - 4- developed, fhls Laboratory, however, which Is the administrative and academic center of the Institute of Industrial Health in the Graduate School, and which, recently, was consolidated with the De partment of Preventive Medicine to become the Department of Preventive Medicine and Industrial Health in the College of Medicine, has the unique character of being a university enterprise created and fi nanced wholly by industry to serve industry. It embodies the willing ness on the part of an important segment of American industry to in vest appreciable sums of money in the solution of industrial problems by an organization that is responsible to the public. The presumption, , based on the growth of the Laboratory, is that this has been a good investment. Because of this presumption, and in keeping with the . good will that has developed out of years of direct and frank rela tionships with industrial management, certain changes in fiscal and operating policies are proposed for consideration, which, if generally acceptable, will be Incorporated in future formal agreements between the Laboratory and its sponsors. The educational program of the Laboratory has created some expense, and the means of dealing with this expense is a problem which it seems necessary and desirable to present to the Industrial organi zations involved Independently and jointly in the financial support of the experimental work. One point must be made clear In this regard. There are no funds available to us at present from public or private sources, other than those earmarked for the prosecution of experiments] work agreed upon between the University and Industrial organizations. Nor can the University of Cincinnati, which is a municipal institution, ( - 5 ** provide funds for the support of any part of the experimental or edu cational program of tills Laboratory, it being caught, as are most American universities, on the two vicious horns of the dilemma of diminishing private gifts of all kinds and returns on endowment funds, on the one hand, and the increasing cost of all of its activities, on the other. The result of this is the necessity of turning to in dustry for the entire support of the activities believed to be neces sary. Since everyone who wants money turns either to government or to industry for it, this has a familiar sound. There is a difference, however, be believe, in that the entire productive effort of this enterprise is designed to benefit Industry, in an area of great in dustrial need and weakness. Moreover, present trends in industrial legislation and practice, with reference to health and welfare, em ployee relations, and community comfort and health (with specific , stress on stream and atmospheric pollution), are such that the present lack of adequately trained personnel in the field of industrial health is a serious and growing threat to American industry. If our ex perience of the past twenty years is to be trusted, the urgent, need for competent industrial physicians will have to be met in the near future. Moreover, industrial management is more aware of this, we believe, than is the medical profession, in general, including those responsible for the training of physicians, and therefore we can ex pect to obtain understanding and support from industrial management in this matter before it will be forthcoming elsewhere. With these matters In mind, we have considered the cost of our educational program carefully, and have decided to propose to the ( -6- sponsors of our vork that ve he authorized to add to the cost of all experimental vork an overhead charge of 10 per cent for educational purposes. This figure has been arrived at on the basis of previous cost accounting and estimates which extend somewhat into the future. Appended hereto, is a bulletin in which the program of graduate edu cation is outlined, together with a schedule of fellowship stipends offered to graduate physicians who are accepted for training. {The stipends are offered as a means of reducing the economic hurdle for physicians who may wish to extend their training beyond the already prolonged period required, thereby encouraging able but impecunious applicants. It is also evident that some inducement must be offered to potential candidates, in view of the almost overwhelming tendency , of graduate physicians to enter into other fields of professional 1' , practice.) Our intention is to accept four students, per year for training if satisfactory applicants are available. Present facilities in the Laboratory, and in the University generally, will not justify our accepting a larger number at this time. This would mean that we would have eight fellows (in two classes) in the school per year, since the third year group would be in residencies in industrial es tablishments for which they will be compensated by the industry in which they are working. (Arrangements have been made to take care of a certain number of trained men in these residencies, and additional arrangements can be made as required.) Under these conditions, the cost of all of the fellowship stipends will not exceed $22,800.00 per year, and will usually be somewhat less than this sum. Various plans are tinder way to obtain funds for this purpose from other academic and ( -7- professional sources, and to the extent that these succeed, the funds obtained vill be applied against this cost, but it seems necessary in lieu of such sources to secure the financial structure of this educa tional program through funds made available by the supporters of the general vork of the Laboratory. The cost of the instruction of graduate students, as the work of the Faculty of the Institute of Industrial Health is presently organized, varies a little from year to year. Much of this cost ap plied automatically against the budget of the Laboratory for experi mental purposes, in that the time spent in instruction by members of the staff of the Laboratory is paid for by salaries authorized for experimental work. (Other members of the Faculty, in other Departments of the University, receive no additional compensation for services rendered in the Graduate School.) However, the time so expended by members of our staff has been recorded and made a charge against the educational program for the past two years. It came to about . $10,000.00 in 1947-48 and to about $13,000.00 in 1948-49. Other items of expense included the cost of instruction given by non-university personnel, the traveling expense of visiting instructors (lecturers), the cost of miscellaneous supplies, stationery, printing, books and equipment, and a reasonable share of overhead expense for light, heat. Janitor service and the like. The total expense, exclusive of fellow ship stipends, was $20,000.00 in round numbers in the academic year 1947-48, and $21,000.00 in 1948-49. This cost can be expected to in crease to some extent as cost accounting of any and all expense attrib utable to such professional training Is more rigidly scrutinized and 8- - recorded. Moreover, the further development of the professional cur riculum will involve some additional cost, since not all of the De partments of the University are staffed adequately for the purposes of consultation and instruction. To the extent that the Laboratory needs and can make adequate use of consultants in a number of fields in which demands are made on us by industry, we shall undertake to aug ment the resources of these Departments. For example, consulting services and surveys in the field of Industrial Relations, with spe cific reference to job appraisal and fitness, employee morale and pro duction, and other aspects of the human equation in industry, merit much more attention, study and research than they have had at the hands of professional people. The work of the Harvard School of Busi ness Administration is a notable example of what can be done by com petent people in this field of study. On the whole. It is estimated that the cost of our program of graduate training, including provision for fellowship funds not otherwise available, will rarely exceed $40,000,00 in any one year, and that an overhead charge of not more than 10 per cent of our ex perimental budget ($395,434.40 in 1950) to this purpose, would secure the educational program indefinitely. Actually the cost to be applied directly to the cost of any experimental project would not come to 10 per cent, but would be nearer to 5 per cent. It is not our inten tion to accumulate any special educational fund, but to distribute the cost of graduate instruction annually in such manner as to balance re ceipts and expenditures yearly. Finally, it is our belief that an integrated program of -9- medical and hygienic services to industry, of investigative vork and of graduate instruction in the field of industrial health, is all of one piece; that these are related and complementary functions and that the separation of the one from the other in terms of function or expense is disadvantageous and unrealistic. Therefore, ve take pleas ure in offering this combination of functions to industry, as a proper service of this University to industry and to the community, at the actual cost that is required by a University organization to supply such services. Ve invite the present sponsors of the vork of the Laboratory to participate in this program, and request a response to this proposal, vith the intention, if there is general concurrence in the proposal, of modifying all agreements with subsequent sponsors, to include this expense. /S/ Robert A. Kehoe Robert A. Kehoe, M. D., Director The Kettering Laboratory and The Institute of Industrial Health March 15, 1950 ROUGH DRAFT ( June 26, 1950 Board of Directors University of Cincinnati Cincinnati 19, Ohio Gentlemen: This communication is authority to continue work on investi gation of the toxicity and mode of action of certain petroleum prod ucts for the year ending June 30, 1951, according to the terms of the agreement dated January 8, 1946, and on the basis of a maximum budget for operating expenses of $100,000 which is conditioned upon a minimum unexpended balance of $8,000 remaining in the fund at the University of Cincinnati as of June 30,1950 and with the understanding that a portion, not to exceed 10 per cent, of the budget shall be expendable in support of the University's program of graduate training. Upon receipt of your approval of the continuation and ex pansion of the project with this conditional maximum budget we shall pay you the sum of $50,000, the balance of $50,000, less the unex pended balance of $8,000 or more as of June 30, 1950, to be paid on . January 1, 1951. It is understood that any balance remaining in the fund on June 30, 1951 will be returned to the American Petroleum Institute, and that no excess over the amount of the budget is to be obligated or spent without written authorization. Very truly yours, AMERICAN PETROLEUM INSTITUi TE By'. . President Accepted and Approved UNIVERSITY OF CINCINNATI Through its Board of Directors By Secretary By.