provision for the liability, in the association reserve and its related fund. I attorneys state that no other litigation is pending against the association. In our opinion, subject to the exceptions set forth in the preceding paragraphs, the accompanying balance sheet and related statement of income prese. fairly the position of the American Medical Association at December 31, 1, and the results of the operations for the year, based on the accounting procedu”, employed by the association regarding which the following observations are mitted: (a) In accordance with the established practice of the association, the counts as stated do not include (1) unrecorded assets in respect of accrued in'est on bond investments and membership dues unpaid; and (2) provision accrued property taxes for the year 1945, and sundry unpaid bills and wages (b) Subscriptions paid in advance are stated at an estimated amount whrs is based on cash received in December 1945 on account of 1946 subscription This procedure conforms to the method used in prior years. (c) Advance payments on publications include an estimated amount ($1% 552.42) for prepaid subscriptions to Hygeia, and the amount ($118,933.83) ** ceived in advance for January 1946 advertising, directory information sales, .. service. Fidelity insurance is carried against the undermentioned officers and • ployees in the amounts stated: Dr. Olin West, secretary and general manager. Dr. Josiah J. Moore, treasurer. E. A. Hoffman, cashier__. J. E. Hartigan, assistant cashier. Joseph T. O'Connor, accountant. Sundry employees (15, $1,000 each). Total fidelity insurance_. $10.** 10.9 10 m We have pleasure in reporting that the books are well maintained and every facility was afforded us for the proper conduct of the examination. Yours truly, Publications (periodicals), costs and expenses for the year ended Dec. 31 1945-- Expenses of councils, bureaus, and committees for the year ended Dec. 31. 1945 Type metal (book inventory) at average cost.‒‒‒‒ 1,010, 9 23. Total, property and equipment---. 1.362 Marketable securities, at cost (valuation based on market quo- United States Government securities.--- $3, 986, 419. 11 dustrial bonds__ 1,602, 849. 36 Income: EXHIBIT B.-Income account for the year ended Dec. 31, 1945 SCHEDULE 1. Publications (periodicals) costs and expenses for the year ended Estimated cost to complete November-December 1945 issue of special journal publications_. Bad debts and recoveries, net.... ---- Loss on metal dross sales___ Total. 298, 606 45,32% 20,994 19, 647. 2,886 11, 851. 14, 713 45, 993. 6,255 34,62% 16,034 48,022 60, 479. 109, 195 75,623. 1.649 12,273. 7.439 4.7 22, 317. 4,063 25,44% 11,0013 15,418 (168 515 1,787, 575.1 Deduct proportion of overhead expense charged to other pubcations and departments.. 26, 322. 21 Total publications (periodicals) costs and expenses_‒‒‒‒‒‒‒ 1,808, 381. 36 NOTE. Total wages and salaries for year 1945 amounted to $1,342,149.45. Of this mount $872,540.79 is included above, $328,699.82 is shown in schedule 2 (expenses of ouncils, bureaus, and committees), and the remainder, $120,908.84, was disbursed on the aintenance of records which will be used in connection with the next edition of the Amercan Medical Directory and with the printing of books, reprints, and pamphlets, and printng in process at the close of the year. Schedule 2. Expenses of Councils, Bureaus and Committees for the year ended Association exhibits_. Frustees' meeting expenses-- Consultations, investigations, tests, and honorariums_. Section secretaries' conference and honorariums_- Council and bureau conferences_. Committee on scientific research. Other committee expenses_ Miscellaneous Total expenses of councils, bureaus, and committees‒‒‒‒‒ NOTE. The above expenses are spread over the following councils, bureaus, and comnittees as indicated: Association account, $141,413.86; Bureau of Health Education, $56,241.70; Council on Pharmacy and Chemistry, $49,547.06; Chemical Laboratory, $21,102.14; Council on Physical Medicine, $24,261.78; Council on Foods, $16,583.50; Committee on Therapeutic Research, $13.358.97; Council on Medical Education and Hospitals, $60.948.84; Bureau of Legal Medicine and Legislation, $33,145.67; Bureau of Investitation, $9,164.90; Bureau of Medical Economics, $6,309.26; Council on Industrial Health, 21,152.22; Association and Bureau of Exhibits, $22,795.12; Council on Medical Service ind Public Relations, $50,342.97; Committee on Medical Preparedness, $11,243.67. EXPLANATORY NOTES AND BREAK-DOWN OF SCHEDULE 2 FOR YEAR ENDING, Association account-- This includes such items as selective retirement salaries for indiiduals too old to participate in our pension retirement fund, salaries if the secretary's office, honorariums for trustees and section secrearies, etc.. who meet at odd intervals during the year, and the exense of certain committees not included in other break-downs (rural medical service, medical motion pictures, American health resorts, war participation committee, etc.). $141, 413. 86 Bureau of Health Education___. This bureau serves the public either directly or through component county and constituent State medical societies. Its principal functions are broadcasting network radio programs, supplying scripts and electrically transcribed recordings for local radio programs, cooperating in radio broadcasts by other organizations, furnishing reprints and pamphlets in the field of health education for general distribution, attending and addressing various meetings of lay groups, and answering through correspondence questions on matters of health. This bureau also cooperates with governmental and voluntary public health and lay organizations that have interests in the field of health education. Council on Pharmacy and Chemistry-. This council consists of 17 specialists in the field of science, each one being a leader in his particular specialty. The council was organized in 1905 with the primary object of protecting the public against fraud, undesirable secrecy, and objectionable advertising in connection with proprietary medicinal articles. The council at the present time also functions as an adviser to the medical profession concerning the status of medicinal articles the profession is importuned to use. Reports on claimed advances in the use of drugs and standards for the control and identity of these drugs are published. The council has recently established a therapeutic trials committee as a standing committee of the council, whose fundamental objective is to stimulate progress in the control and treatment of disease through facilitating investigations to establish the usefulness and limitations of diagnostic, preventive, and therapeutic agents. Committee on therapeutic research___ This is a standing committee of the Council on Pharmacy and Chemistry, which is interested in the development, promotion, and advancement of diagnosis and in the prevention and treatment of disease with special emphasis on therapeutics. Chemical laboratory--- This laboratory was established in 1906 to aid the council on pharmacy and chemistry in the evaluation and standardization of medicinal products. She laboratory also supplies chemical data for the bureau of investigation. It performs no commercial work or work for individual physicians but limits its activities to investigation of products of general interest to the medical profession. Council on physical medicine‒‒‒‒‒‒ This council was established with the primary purpose of gathering and disseminating such information as will assist the medical profession in determining the therapeutic and diagnostic value of certain devices and methods employed in the practice of medicine. The membership of the council is composed of pathologists, surgeons, clinicians, physicists, physiologists, and radiologists. Council on foods and nutrition_____. This council was organized to evaluate nutritional claims for food products. It is composed of 11 persons selected because of their knowledge of those branches directly concerned with food composition, nutrition, and health. Voluntarily submitted foods, accompanied by complete advertising data and information on ingredients, manufacturing processes, bacteriologic examinations, etc., are appraised. Only those foods are considered at present which are offered as special-purpose foods and a few generally used foods of particular importance to the public health. This council has caused extensive changes in food advertising in order to protect the public and has also sponsored publication in the Journal of the American Medical Association of authoritative and informative reports on various nutritional subjects. $56, 241, 70 49, 547 06 13,338. 21, 102, 14 24, 261 78 16,583.50 |