524 ANNUAL EEPOET SMITHSONIAN INSTITUTION^ 1916. 



Industrial research, conducted in accordance with the principles 

 of science, is no new thing in America. The department which is 

 under my charge, founded nearly 40 years ago to develop, with the 

 aid of scientific men, the telephone art, has grown from small be- 

 ginnings with but a few workers to a great institution employing 

 hundreds of scientists and engineers, and it is generally acknowl- 

 edged that it is largely owing to the industrial research thus con- 

 ducted that the telephone achievements and development in America 

 have so greatly exceeded those of other countries. 



With the development of electric lighting and electric power and 

 electric traction, which came after the invention of the telephone, 

 industrial scientific research laboratories were founded by some of 

 the larger electrical manufacturing concerns, and these have at- 

 tained a world-wide reputation. While vast sums are spent annually 

 upon industrial research in these laboratories, I can say with au- 

 thority that they return to the industries each year improvements 

 in the art which, taken all together, have a value many time greater 

 than the total cost of their production. Money expended in properly 

 directed industrial research, conducted on scientific principles, is sure 

 to bring to the industries a most generous return. 



While many concerns in America now have well-organized indus- 

 trial research laboratories, particularly those engaged in metallurgy 

 and dependent upon chemical processes, the manufacturers of our 

 country as a whole have not yet learned of the benefits of industrial 

 scientific research and how to avail themselves of it. 



I consider that it is the high duty of our institute and of every 

 member composing it, and that a similar duty rests upon all other 

 engineeering and scientific bodies in America, to impress upon the 

 manufacturers of the United States the wonderful possibilities of 

 economies in their processes and improvements in their products 

 which are opened up by the discoveries in science. The way to real- 

 ize these possibilities is through the medium of industrial research 

 conducted in accordance with scientific principles. Once it is made 

 clear to our manufacturers that industrial research pays they will 

 be sure to call to their aid men of scientific training to investigate 

 their technical problems and to improve their processes. Those who 

 are the first to avail themselves of the benefits of industrial research 

 will obtain such a lead over their competitors that we may look 

 forward to the time when the advantages of industrial research will 

 be recognized by all. 



Industrial scientific research departments can reach their highest 

 development in those concerns doing the largest amount of business. 

 While instances are not wanting where the large growth of the insti- 

 tution is the direct result of the care which is bestowed upon indus- 

 trial research at a time when it was but a small concern, nevertheless 



