PROOFING YOUR TRAVEL AND ENTERTAINMENT EXPENSES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP88-01315R000400300015-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 36
• Document Creation Date: December 16, 2016
• Document Release Date: October 25, 2004
• Sequence Number: 15
• Publication Date: December 7, 1973
• Content Type: REPORT

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Recommendations
REPORT OF THE MONTH
Proofing Your Travel and Entertainment Expenses
The battle of the profit-and-loss statement frequently is won in elegant restaurants,
country clubs, discotheques, and jumbo jets. The social climate in which many deals
are agreed to, the friendly camaraderie which lubricates the course of difficult negotia-
tions, the exchanging of views outside of the executive suite's pressures - all these can
cause the cash registers to ring merrily. But there are few, if any, income tax disallow-
ances so common as travel and entertainment expenses. This Report explores what
steps can be taken to make your travel entertainment deductions 100 proof.
Federal income tax administrators recognize
that in the frantic business and professional
world, it isn't possible to keep track of every
piece of paper, of every penny. So there are cir-
cumstances where approximations are accepted
in lieu of detailed documentation of expenses.
Specifically, the so-called Cohan rule provides
that if a taxpayer demonstrates to the satisfaction
of the court, that he has had business expendi-
tures of a certain type, but there is no detailed
substantiation, a court may estimate the amount
of the allowable deduction. That rule was de-
vised to cover the, undocumented expenses of
the celebrated actor-singer-composer George M.
Cohan. But, curiously, the one area today in
which credible estimates are not acceptable for
federal income tax purposes is T & E. You are
not permitted to deduct one cent without sub-
stantiation in some acceptable form. So existing
business procedures may have to be reviewed
and tightened up to prevent automatic disallow-
ance of such expenses.
This applies to expenses for entertainment,
travel, and business gifts.
Why T & E expenses differ from
all others
The reason for this severity on the part of the
tax people is obvious. As one court stated in a
1972 decision, "entertainment expenses are pecu-
liarly susceptible of abuse."
Thus, no deduction is allowed for business
entertainment expenses unless the taxpayer sub-
stantiates - by adequate records or by sufficient
evidence corroborating his own statement - (1)
who was entertained, (2) the amount of such
expense, (3) the time, (4) the place, (5) the
business relationship to the taxpayer of the per-
son or persons entertained.
What is required must be understood before
you can undertake to prove your right to deduc-
tions. Unlike other business deductions, it is not
always enough to show that entertainment costs
are "ordinary and necessary." The taxpayer
must show:
1. That the expenditure was directly related
to the active conduct of his trade or business; or,
2, In the case of an expenditure directly pre-
ceding or following a substantial and bona fide
business discussion including business meetings
at conventions and otherwise, that the expendi-
ture was associated with the active conduct of
the taxpayer's trade or business.
What is "directly related"?
An expenditure is directly related to a tax-
payer's trade or business if it meets All of these
tests:
1. When he made the entertainment expendi-
ture or committed himself to it, he had a reason-
able expectation of deriving some business
benefit at some indefinite future time.
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l recommendation: Keep data such as interoffice
memos, business diaries, or letters indicating
what you expect to get out of entertaining some-
one. A taxpayer does not have to prove, how-
ever, that benefit actually did result from every
expenditure.
2. During the entertainment period, the tax-
payer actively engaged in a business meeting,
negotiation, discussion, or other good-faith busi-
ness transaction, other than entertainment, for
the purpose of deriving income. (Get this fact
on paper, at the time.)
3. In the light of all of the facts and circum-
stances, the principal character of the comb-ned
business and entertainment was the active con-
duct of trade or business. It isn't necessary to
prove that more time was devoted to business
than to entertainment in order to meet this re-
quirement.
4. The entertainment expenditure was allo-
cable to the taxpayer and person or persons with
whom the taxpayer engaged in active conduct
of a trade or business.
W recommendation: If outsiders happen to be
present, leave their portion of the tab out of your
expense deduction. It makes a more favorable
impression if you do this yourself instead of
waiting for a Treasury examiner to do it - with a
heavier hand.
An expenditure is considered directly related
to the active conduct of a trade or business if it is
established that the expenditure was for enter-
tainment occurring in a clear business setting
directly in furtherance of the trade or business.
An expenditure isn't deemed to be directly re-
lated to the taxpayer's trade or business if he was
not present during the period of entertainment.
Nor is there the necessary clear business setting
if the distractions were too substantial to allow
for the discussion of those things which business-
men have to discuss. This could rule out enter-
tainment expense deductions for cocktail parties,
group encounters, and meetings where many out-
siders are present. One decision sustained the
Treasury's disallowance of entertainment at a
nightery called "Las Vegas" because the very
name suggested that serious discussions could
not have been held there about such mundane
things as product specifications or delivery dates.
Expenditures for food and drink will be al-
lowed as tax deductions, without reference to
the ground rules for directly related expendi-
tures enumerated above, where the circum-
stances are conducive to business discussions,
even if business is not actively discussed. But
the surroundings must provide an atmosphere
where there are no substantial distractions. This
may be referred to as the "quiet business meal."
The "associated expenditures" test
Entertainment expenses which do not meet the
directly related test but are associated with the
active conduct of a trade or business are allow-
able, if the entertainment directly precedes or
follows a substantial and genuine business dis-
cussion. In general, any ordinary and necessary
entertainment expense is associated with the
active conduct of one's trade or business if the
taxpayer can show that he had a clear business
purpose in incurring the expenditure, such as to
develop new business or to encourage the con-
tinuation of an existing business relationship.
But any portion of the expenditure allocable to
persons not closely connected with those who
attended the substantial and genuine business
discussion won't be considered by the Treasury
to be associated with the active conduct of the
trade or business. This makes it difficult to justify
expenditures for persons you brought along to
"liven up the party."
What is entertainment?
Entertainment includes more than the pay-
ment for food, drink, theatre tickets, and the like.
Dues and fees paid to a social, athletic, or sport-
ing club are treated as expenditures for an
entertainment facility - that is, deductions are
allowed where the facility is used primarily for
the furtherance of the taxpayer's trade or busi-
ness. If he can prove that lie used a club more
than 50% of the time for business purposes, he
can deduct that portion of his dues which is
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directly related to the active conduct of the busi-
ness. One case allowed a businessman to deduct
that portion of his total dues which corresponded
to the percentage which his expenditures for
business meals at the club represented of his
total yearly expenditure for food and beverages
furnished there.
Inasmuch as a country club or similar facility
for hunting or social purposes customarily is
thought of as pleasure-oriented, the taxpayer has
to offset the logical presumption that he really
joined for personal pleasure, as most people do.
But this can be accomplished. One lawyer con-
vinced the court that he joined a country club
even though he didn't enjoy golf; what he did
enjoy was the fact that 50% of the persons with
whom he wanted to do business were members
of the club. Another individual was permitted
to deduct his expenses at a hunting club which
had no recreational features, the court noting
that he didn't even own a gun. And another tax-
payer was allowed the entertainment expenses
claimed by producing a chart which showed
that new business income paralleled entertain-
ment expenses.
What if you're not actually looking
for business?
Entertainment expense is for the purpose of
attracting or of retaining customers. But what
if you can't serve any more customers? Deduc-
tion still may be possible, but the problem pre-
sents more of a challenge.
One manufacturer who was unable to fill exist-
ing orders was allowed to deduct 50% of the
entertainment expenses which he claimed. Ne-
glected customers could, be disinterested ex-
customers when business was required later on.
But the entertainment expense deduction of
a prominent automobile dealer was slashed
greatly by a court in a year when cars were in
short supply and, possibly, it was the dealer who
was more apt to be entertained by a would-be
customer.
A broker who had been suspended indefinitely
by the New York Stock Exchange was not per-
mitted to deduct the cost of entertaining people
who would be his customers if he were rein-
stated. Those weren't expenses related to the
active conduct of his business, for he could not
actively conduct it. The ordinary common gar-
den variety of expenditure is not allowed where
a taxpayer is not yet engaged in business. An
insurance company wasn't permitted to deduct
entertainment expenses in connection with the
establishment of agencies in a state where it had
not yet been licensed to do business.
Company expenses can be converted
into your own
A corporation executive or other employee
ordinarily cannot deduct expenses of entertain-
ing company customers. These are company ex-
penses and the individual who picks up the tab
is acting as its agent, entitled to reimbursement
for outlays on behalf of the employer. Only the
company is entitled to deduct the expenses of
its entertaining.
But the tax situation is quite different if enter-
tainment of customers or clients is expressly a
part of the job for which the employee is being
paid. Some companies, which feel that entertain-
ment expense accounts all too often are really
"swindle sheets," require employees to assume
all such costs without possibility of reimburse-
ment as part of their salaried job. Other sus-
picious companies allow reimbursement for
entertaining established customers but not for
"prospects," which might be poor risks or even
friends and relatives of the employee. The em-
ployee who feels that his own business (being a
company employee) would be helped by enter-
taining customers could properly claim the de-
duction as being helpful in doing his job.
A vice-president of a prominent paper com-
pany, whose principal responsibility was main-
taining "first-name" contacts with top echelon
officers of customers, could deduct his substan-
tial entertainment expenses by showing that he
had a specific understanding with his president
that he (the veep) would assume the usual and
ordinary entertainment required by his job,
while the corporation would take care of large-
scale entertaining.
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Inasmuch as company entertainment for
which an individual could be reimbursed is not
an expense which he can deduct, care must be
taken to see that reimbursement is made un-
available by a letter, statement of company
policy, corporate bylaw, or the like.
Entertaining your spouse
Deduction for the cost of entertaining one's
spouse is permissible, but the clement of proof of
business purpose is vital because (presumably)
entertaining one's own spouse is a matter of
pleasure. For that matter, so is writing out a
purchase order, and entertainment expenses in
connection with that pleasure should not he dif-
ficult to justify.
If a businessman takes a customer and the
customer's wife to a nightclub, and the business-
man's own wife also is present, the evening's
expenses are deductible, provided the evening
follows an afternoon session between the two
men where a substantial business discussion had
taken place.
How substantiation is provided
The taxpayer claiming an entertainment ex-
pense deduction must furnish corroboration of
his claim. The Treasury requests that a receipt
be obtained for entertainment expenditures of
$25 or more. "A restaurant receipt would be suf-
ficient," we are told, "if it shows the name and
location of the restaurant, the date, and the
amount of the expenditure (and, if a charge is
made for an item other than meals and bever-
ages, such as a tip, an indication that such is the
case)." If a person entertains a relatively large
number of people, he isn't required to record
each of the names. Where a class of readily
identifiable individuals is involved, a designation
such as "all of the stockholders of XX Corpora-
tion" would be sufficient. On the other hand, if
the identity of a class such as "customers of KK
Corporation," is not sufficient to identify the per-
sons entertained, then an individual designation
of each person entertained would be required.
Identification could be in such language as "Mrs.
MM, branch manager of VV Company, and her
nine salespersons,"
Evidence of entertainment expense need not
be in writing if the taxpayer backs up the ex-
penses with corroboration by the verbal state-
ment of somebody in a position to know the facts
and circumstances. The leading decision in this
area says: "Thus oral testimony of the taxpayer,
together with circumstantial evidence available,
may be considered 'sufficient evidence' for the
purpose of establishing the business purpose re-
quired . . ." here an individual obtained testi-
mony from the cashier of a restaurant as to the
amount he customarily spent there on persons he
entertained, many of whom she knew. But re-
liance upon her memory and credibility was a
gamble.
A cancelled check, in itself, is not sufficient to
document an entertainment expense deduction.
Payments to hotels, for example, have turned out
to be for purchases of clothing delivered to the
front desk or even cash advances from the hos-
telry. But a cancelled check, together with a
bill from the payee, ordinarily would establish
the element of deductability if the business na-
ture of the invoice were valid.
As a 1972 decision established, the entertain-
ment expense deduction is forfeited where the
host is reluctant to ask bartenders for receipts
for purchases,. Nor was deduction allowed where
the taxpayer had billing statements from bars,
without indication of who was entertained and
how many shots the host had taken. 'Were we to
hold otherwise," observed the court sagely,
"with a little trading back and forth from day to
day, well-nigh every drink at every bar, every
doughnut and every cup of coffee would wind
up as a deduction on somebody's tax return." For
meal expenditures under $25, however, receipts
or other documentary evidence are not required.
A diary entry alone is sufficient.
What happens to your part of the
entertainment tab
Under the Tax Court's "Sutter" rule, a taxpayer
who entertains when he is not traveling away
from home cannot deduct that portion of his own
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meal which is not in excess of what he would
ordinarily have spent for his meal if he were not
entertaining. This rule has also been approved
by other courts, but the Treasury will invoke it
only in abuse cases where taxpayers claim de-
ductions for substantial amounts of personal
living expenses.
But what is abuse and what is meant by sub-
stantial? The Treasury has no fixed guidelines or
rules of what constitutes either abuse or sub-
stantial. If an agent makes a disallowance for
what he considers abuse, the taxpayer may then
have the burden of proving that the agent was
wrong. In one case, an individual was success-
ful when he established that he was a diabetic
who took no alcoholic liquors and even when he
dined with a customer he ordered only coffee
and vegetables for himself. He won his case but
may have lost several customers who didn't enjoy
dining in solitary splendor with a noneater.
Where full documentation isn't enough
Suppose that a person has solid evidence of
every element of his business entertaining. He
still may lose part of his tax deduction. The
regulations say that to the extent the expenditure
is lavish or extravagant, the deduction can be
disallowed, but they don't say what lavish or ex-
travagant means. Entertainment expenses won't
be disallowed on this ground merely because
they exceed a fixed dollar amount or are incurred
at plush restaurants, hotels, nightclubs, and
resort establishments. An expense which, con-
sidering the facts and circumstances, is reason-
able won't be considered to be lavish or extrav-
agant. Sometimes a business person will attach
to his expense account the menu of a hotel or
restaurant where he has been entertaining, to
show that his bill was about as reasonable as
possible in terms of the tariff existing there.
Credit cards and diaries
Despite the lure of many advertisements,
credit cards in themselves are not the answer to
substantiation of business entertaining deduc-
tions. Checks drawn to the order of a credit card
company weren't allowed as tax deductions in a
case where there was nothing to relate any par-
ticular expenditures to any person or business
reason. Such cards establish only the where,
when, and how much. They don't establish the
who and that highly important why.
Detailed substantiation isn't required in the
case of expenditures under $25 other than for
lodging while traveling away from home, and
diary notations of the party entertained, with
his business identification, will be sufficient. But
that fact furnishes only limited support to the
ads of some commercial stationers that their
columnar diaries will satisfy the tax deduction
requirements of the Internal Revenue Service.
What if you have no supporting
evidence?
The business entertainer who has no back-up
records is generally not entitled to any deduc-
tion. One salesman offered a Treasury agent a
list of 10 persons from whom he allegedly re-
ceived more than $20,000 in commissions in lieu
of detailed entertainment bills. But the Treasury
subpoenaed one of these persons, who was said
to have been entertained on eight occasions,
none of which he could remember. The deduc-
tion was disallowed. In another case, after a
named guest told the agent that he never had
been entertained by his alleged host, the latter
claimed that his former customer had become
hostile because of an unfortunate business trans-
action. But that's the risk you run when you
give the tax people an excuse to speak to your
customers. One taxpayer lost an entertainment
deduction when the customers in question told
the Treasury agent that they would have placed
orders even without entertainment, which sug-
gested that the entertainment had not been an
expenditure necessary to get business. And a
deduction must represent an ordinary and neces-
sary expense.
If you can show that your records were de-
stroyed through circumstances beyond your con-
trol, such as a flood, the Treasury may permit a
re-construction of the records on the basis of the
best evidence available.
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Records must be contemporary
The recording of the necessary elements of an
entertainment expenditure in one's records must
be made at or near the time of the expenditure.
If the entries are made belatedly, they will not
comply with the substantiation rules. There can
be no "reconstruction."
Improperly handled entertainment
records can be costly
If entertainment expenses incurred by an of-
ficer-stockholder of a corporation are disallowed
on the corporation's tax return because of insuffi-
cient corroboration, an equivalent amount may
be taxed to him as a dividend, on the ground
that lie derived an economic benefit at the cor-
poration's expense because lie was a stockholder.
Where a person fails to keep the records re-
quired to justify an expenditure, ordinarily all
he has to fear is disallowance (and some inter-
est). But where he is highly knowledgeable in
tax or even in general financial and business
matters, he may be assessed a penalty because
he should have known better than to claim un-
substantiated entertainment expenses as a tax
deduction.
Requirements for travel expense
deductions
The United States Supreme Court has laid
down three conditions which must be satisfied
before a traveling expense deduction is allowed:
1. The expense must be a reasonable and
necessary traveling expense, such as that term
is understood.
2. The expense must be incurred while away
from home overnight.
3. The expense must be incurred in pursuit of
business. This means that there must be a direct
connection between the expenditure and the
carrying on of the trade or business of the tax-
payer or of his employer. Such an expenditure,
moreover, must be necessary or appropriate to
the development and pursuit of the trade or
business.
Travel expenses away from home include the
cost of transportation from one's home or place
of work to the airport or station, and vice versa;
air, rail, and bus fares; baggage charges; trans-
portation costs from the place where you are
staying to where you work when you are away
from home overnight; the cost of maintaining
and operating an automobile, including a trailer;
meals and lodgings, both en route and at the
destination; telephone and telegram charges;
cleaning and laundry expenses; the cost of a
public stenographer; other similar expenses inci-
dental to qualifying travel; tips.
Documentation
It is not necessary to make a separate entry in
one's expense account record for each incidental
separate expenditure, such as for taxi fare, buses,
telephone charges. For each day, expenditures
may be aggregated in reasonable categories, such
as for local transportation, gasoline and oil, the
taxpayer's own meals.
Business-pleasure trips
Although travel expense is deductible only
when business-related, some pleasurable fea-
tures of the trip will not negate the finding of an
overall business benefit. If the trip was primarily
for business and, while at his business destina-
tion, an individual extended his trip for non-
business reasons, the travel expenses to and from
his destination are deductible. If the trip was
primarily personal, his travel expenses to and
from the destination are not deductible even if
lie engaged in some business activity at the
destination.
If a person makes a trip outside of the United
States primarily for business, but there were
some non-business activities, the cost of travel is
to he allocated between business (deductible)
and non-business activities. However, this partial
allowance rule applies only if (a) travel outside
of the U.S. exceeds one week and (b) the portion
of travel time outside the U.S. which is not at-
tributable to the taxpayer's trade or business or
an income-producing activity is 25 percent or
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more of the total travel time outside the U.S. But
there is no partial disallowance if the taxpayer
does not have substantial control over arranging
the trip or getting a personal vacation or holiday
was not a major consideration in deciding to
make the trip.
Travel expenses of one's spouse
Where an individual's spouse accompanies
him or her on a business trip, expenses attribut-
able to the accompanying spouse (for old times'
sake, let's use the word "wife" here) are not de-
ductible unless it can be shown that her presence
on the trip has a genuine business purpose. The
wife's performance of some incidental service
does not cause her expenses to qualify as deduct-
ible business expenses. Even where she accom-
panies him on a business trip to assist him in
entertaining business associates at the destina-
tion, her expenses usually are regarded as per-
sonal, non-deductible. But her expenses are
deductible where it can be shown that she helped
him to perform his job. Court-approved in-
stances are:
1. Where the husband was sent abroad by his
employer to report on the employer's overseas
operations as to employees' working conditions,
recreational and educational facilities, health,
morale, and the like. The wife, by chatting with
employees' wives, was able to gather data inac-
cessible to him.
2. Where the husband was a diabetic who
could not go abroad without the instant avail-
ability of medical aid if required, and the wife
had been trained for this. However, the tax
court disallowed the wife's expenses in a similar
situation in a later decision.
3. Where the husband conducted business in
a social atmosphere at the homes of customers'
top executives, who specifically asked that he
bring his wife with him.
4. Where the wife was conversant with the
language of foreign countries where her husband
conducted business and he was not. Many mat-
ters to be discussed were too confidential to rely
upon interpreters.
Conventions
Travel expense to a business convention, if not
subject to reimbursement, is deductible, pro-
vided attendance at the convention is appro-
priate or helpful in one's trade or business. The
agenda of the convention does not have to deal
specifically with the taxpayer's official duties or
the responsibilities of his position, if the agenda
is so related to his business and responsibilities
that attendance for a business purpose is plainly
indicated.
It should be useful to preserve with your tax
papers the program or schedule of events at the
convention, to show that attendance there was
for the purpose of benefitting you in a business
way.
Business tips
Tips in connection with business entertain-
ment or travel are deductible, but frequently
such tips are not a part of a restaurant or other
bill and hence are apt to be unrecorded. In ag-
gregate, the amounts may well be large enough
to document, with a record of that essential busi-
ness purpose. One court observed that "The
common experience of mankind would bear out
the fact that an additional gratuity to a maitre d'
or a doorman will, on occasions too often to be a
mere coincidence, have the effect of securing a
better table location or a more prompt taxicab."
Indeed, a reasonable case can be made that tips
are ordinary and necessary and proximately re-
lated to a salesman's duty of entertaining his
clients.
But it's still necessary to show the time, place,
business purpose, and business relationship of
tipper and tippee. This point is stressed because
few persons bother with such records and valid
tax deductions are thus forfeited.
Practical suggestions
Where the facts justify the position you take
on your tax return, the following should be
helpful:
1. There should be a record of what actually
was discussed during the course of the alleged
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quiet business meal, not a conjecture of what
probably was discussed. This can be in the
form of minutes, a report sent the following day
to one's superior or associate, a tape recording
dictated when you get back to your home, hotel
room, office, or car. Of course it's a nuisance. So
is a tax disallowance.
2. When you've entertained some one, espe-
cially in the elaborate manner which so fre-
quently gets disallowed, often you %-.gill get a
"thank you" note. Preserve it. Keep it with your
bill for that evening.
3. File copies of purchase orders or contracts
along with the expense vouchers of persons
whom you entertained while that order was be-
ing discussed.
4. When you are taking a customer, client, or
prospect out to dinner or the fights, remind hirrr
of the appointment in a letter which can be
attached to the expense voucher. There could
be noted briefly various business matters which
you hope to be able to discuss with him. There's
no reason to be coy about mentioning business
matters. He knows why you are taking him out.
5. Keep records of names and dollar amounts
of business obtained from persons you met at
the country club where you are a member. Ditto
in the case of persons you took to the opera or
the dog races.
6. When you are entertaining at expensive
nightclubs and the like, often there is a photo
girl who snaps pictures for an outrageous fee. It
isn't outrageous if it shows an identifiable person
who is a customer or prospect. Put it in with the
expense vouchers.
7. If you take your spouse to Europe with you
on a business trip, take the camera also. Don't
forget to take pictures of her at your customers'
factories, or trudging in some company town
through snow and mud (that was no pleasure
trip).
8. When you sign a chit at a restaurant or bar,
note on the reverse side the data which the
Treasury is likely to demand some day: name or
names of persons present, purpose of the meet-
ing, and the like.
9. Require that even the highest level execu-
tives in your corporation keep documentary
back-ups for T & E. Too often Mr. Big thinks
that company rules don't apply to him. The
Treasury agent isn't impressed by titles.
10. Make certain that vouchers and entertain-
ment expense data don't get thrown away when
the files have their periodic weeding out. Such
data must be kept as long as the tax returns
which they document are still open under the
statute of limitations, which usually is three
years, but may be longer. Ask your tax adviser
how long to keep the back-up data for each of
your taxable years.
11. Don't bury T & E expenses in other ac-
counts so as to keep confidential data from the
staff, or for other reasons. To a Treasury agent
that suggests you didn't want him to see what
you were doing, and he'll draw his own conclu-
sions as to why.
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o/ /)I'o~/'c'ti.s I
to /Yi ' '/Tt' (I'(/t'I' (lilt/c/ c'/ia,u''.
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\lIred lurch %%hirehcad
(.y%II 111 1`) Z h~ 1 hr Ilr"rar - I Institute ()l .\IIICrlct. Ins..
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 Approved For Release 2004/11/01 : CIA-RDP88-01315R000400300015-2
Evolution Of An Idea
One of the fascinations of business is the way in which a
new idea is born and is nurtured to success. In the depres-
sion year of 1935 a unique concept was launched from a
one-room office with remarkable results.
A small group of forward-looking business experts saw
that the country faced a period of unprecedented business
change. The federal Social Security Act and other laws just
passed by Congress were the first of many controls that
government would impose on business. They saw that
businessmen would need someone to interpret these com-
plicated legislations, regulations and directives into the
kind of business English that executives could under-
stand and follow. They also reasoned that most single com-
panies could not afford to hire enough management
specialists to look into and make recommendations on all
of the complex changes that would affect business. But if
many companies joined together they could engage a group
of topflight specialists and share in the findings.
The idea was the brainstorm of Carl Hovgard, a young
Kansas businessman, who came to New York to try out the
new concept. Shortly thereafter, he was joined by Leo
Cherne, a brilliant young lawyer-journalist. Then Joseph
D. Ardleigh came aboard to employ a staff of people who
would further the aims of the Institute and start a field
sales organization to sell the programs they developed.
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The Idea Gains AcceJ)timce and the Institute (;roes
When the idea was tested and proved valuable to busi-
nessmen, the Research Institute began to flourish. Over
the years the initial concept has been expanded in varying
ways. Today RIA plays an ever-increasing role in helping
businessmen adjust to the bewildering changes dictated by
Washington, the economy, social change, and world events.
RIA is now the world's largest private business manage-
ment and advisory organization. It counsels more than
150.000 executives in all fields of business and govern-
ment. At any given time, 75% of the companies in For-tune's
Top 500 hold Membership in Institute programs. The Insti-
tute serves the guidance needs of large, medium-sized and
smaller companies and assists government agencies, legal
and accounting firms, as well as a variety of individual
businessmen and professionals.
A Prolkssional Stall Dedicated to (:outinuing Research
Today, on the Institute's full-time staff, RIA employs
many of the country's leading management consultants,
attorneys, economists, tax analysts, personnel and indus-
trial relations specialists, marketing strategists, behavioral
scientists and computer and programming experts. RIA's
journalists and foreign affairs analysts, backed by a net-
work of correspondents throughout the world, continually
report current developments in every area affecting
business.
In the Institute's offices each of these professionals is
responsible for continuing research in his or her area of
specialization, and the preparation of concrete recom-
mendations for appropriate action by individuals, com-
panies and government agencies.
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How The Institute Serves Members
The Research Institute provides business intelligence
and guidance that alerts the business community to the
opportunities and pitfalls in all levels of management de-
cisions of an operational or manpower nature. RIA per-
forms this service for Members in every phase of business
varying from tax guidance to economic forecasting, fiscal
planning, sales and marketing to manpower management.
As a clearing house of available business and govern-
ment intelligence, the Institute gathers the findings of
research groups, industry and trade organizations, and the
results of all significant court decisions. To these are added
the findings of RIA's own continual scientific research in
each area of specialization. The Institute conducts over
150 interviews a day by telephone and in person, in addi-
tion to initiating periodic surveys, audits and conferences.
The Institute provides information, guidance and coun-
sel with a unique distinction to Members.
An RIA Observation offers complete and useful inter-
pretation of business intelligence. Significant facts are
sifted and weighed for their real importance, and each
observation carries the thoughtful and proven judgment
of the highly skilled professional staff.
An RIA Recommendation is the most profitable of the
Institute's functions in the opinion of most Members. In
clear language it details principles and step-by-step pro-
cedures that help Members contribute to corporate profits
and avoid seemingly inevitable losses.
In the years since 1935 no Research Institute recommen-
dation has ever been reversed by a court of law or successfully
challenged by an agency of the government.
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RIAs Flow of Intelligence
- LI 'INDUSTRY AND
BUSINESS
LAW
DIVISION
ACCOUNTING
AND FINANCIAL
DIVISION
L DIVISION Pw*
GENERAL
MANAGEMENT
PRODUCTION
AND
PURCHASING
DIVISION
LABOR AND
PERSONNEL
RELATIONS
DIVISION
DOMESTIC AND
TAX FOREIGN
DIVISION ECONOMICS
DIVISION
MEMBERS
MANAGEMENT
DEVELOPMENT
DIVISION
SALES AND
MARKETING
DIVISION
RESEARCH GROUPS
GOVERNMENT
REGULATIONS
DIVISION
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RI, Ns Unique Feedback Concept "Pooled Intelligence"
At the center of this continual flow of information is "Pooled Intelli-
gence, " the Institute's unique input idea. In a confidential exchange
of information with RIA, Members report actual business experience
as it applies in their company's day-to-day operations. This not only
provides RIA with an excellent sounding board on all of the latest
ideas and developments affecting business, but through this exchange
Members benefit from other companies' successful or unsuccessful
experiences. How the Institute coordinates this mass of information
is shown in the flow chart on page 4.
The Institute's intelligence further responds to the needs of Mem-
ber firms. Since developments in one area of business ultimately
affect others, all RIA intelligence and feedback are sifted and
screened through a cross-fertilization of ideas between staff spe-
cialists-experienced in all phases of business operations. For ex-
ample, one line of a given report or recommendation is often a
compression of literally weeks of study and analysis on scores of
management experiences, economic statistics and legal decisions.
A Long Record of Objectivity and Accuracy
An important aspect of RIA's intelligence is its emphasis on ob-
jectivity. The Institute gives unbiased answers to management ques-
tions and problems where many companies find it difficult to obtain
impartial opinions. Another is the reliability of RIA's predictions,
reports and recommendations. This record of accuracy has long been
acknowledged in business and government circles.
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 Approved For Release 2004/11/01 : CIA-RDP88-01315R000400300015-2
Atlantic magazine says:
"Steadiest record for accuracy among cur-
rent forecasters . . . most thorough and
specific of all services in its business
areal Psis.
But long before being disseminated to Members, RIA
intelligence must meet certain criteria: (1) it must answer
a timely question business is facing, or soon will face;
(2) it must tackle the real pl-oblem. not just the symptom;
(3) it must offer help that is not available from any other
source. Finally, and most important of all, it must respond
to the needs of Member firms as confidentially expressed to
RIA through "Pooled Intelligence."
The equation "RIA=EWS+QRC" best describes this
objective: to provide an "Early Warning System" for an-
ticipating problems and opportunities, and furnish "Quick
Reaction Capability" to do something about it.
F(WI u-u I nagazi I is says :
"The Institute not only reports develop-
ments aftectiug the businessman but
actually tells what to do about them. So
far it has handled this colossal assign-
ment with astonishing success. "
With this record of accuracy and objectivity, it is not
surprising that eight out of ten companies in the United
States and Canada continue their membership year after
year.
By having access to top RIA intelligence and guidance
a company, large or small, can keep pace with its competi-
tors and ahead of the rapid, frequent and unexpected
challenges facing business.
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Current Research Institute Programs
Institute programs are designed for management's re-
sponsibilities and concerns-policy-making, planning,
equipment, finance-and for the people who implement
them. If they all work together for the same objectives,
management can cut costs, avoid unnecessary loss, in-
crease profits and gain personal satisfaction.
Members can participate in the following programs:
Executive Membership
This program provides policy-making executives with
rapid access to RIA's capabilities in all areas of business.
It is designed to help companies grow in size, sales and
profits by keeping executives abreast of all the changes
outside the company which have a bearing on the com-
pany's operations. The system is carefully organized so that
a Member need invest only minutes a week to keep on top
of developments affecting his business.
Management is alerted to important ideas, strategies,
methods and techniques, with recommendations for their
possible application. The ever-increasing number of gov-
ernment regulations with which business must comply are
reported and evaluated for planning and action. As the
need dictates, periodic in-depth studies on business prob-
lems and opportunities are included. Members also draw
upon the Institute's unique information-retrieval system-
a "bank" where RIA stores information on hundreds of
problems that management will encounter in business.
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Associate y1CIrllhers1}iJ
The Institute provides two coordinated, flexible systems that
will supplement a company's efforts to improve the performance
and effectiveness of their people. The aim of these programs is to
create so sound a relationship between upper management and
supervisors, and between supervisors and employees, that the pro-
ductivity of each is substantially increased.
Today, more than ever, a company's success depends on its people.
We at RIA believe, in common with most experienced companies,
that people do change with the times, and that today's employees
not only have different problems but different values and viewpoints
from their counterparts of a decade ago. Therefore in facing any
important decision management must ask itself, "Is the old way,
even though basically sound, good enough today?" In the light of
today's conditions, the Institute can help companies find a better
way to approach their problems-and solve them-through properly
motivating their personnel.
RIA tackles this by concentrating on the total development of the
individual in two distinct dimensions. First, the individual's on-the-
job requirements. Second (of increasing and frequently overlooked
importance), is the individual's off-the-job needs and concerns. By
communicating brief and authoritative guidance, a clearer under-
standing and better motivation for performance is achieved.
Associate Membership programs are designed for two specific
areas: Sales and Marketing, and Supervisory and Management. These
programs represent years of Institute experience working with peo-
ple at all levels of responsibility- both in government and industry.
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Associated Research Institute Companies
The Research Institute of America, Inc. includes sep-
arate associated companies whose specialized activities
help business capitalize on the profit opportunities in a
constantly changing economy.
Tax Research Institute of America
This organization helps solve tax problems. Special memberships
and services provide reports and guides which keep business up-to-
date on the federal tax laws. It publishes the well-known Tax Co-
ordinator, Tax Guide, Tax Action Coordinator and Tax Membership.
Autotax Incorporated
Autotax is a computerized. system for preparing tax returns for
individual and corporate clients of professional tax practitioners. It
performs all necessary calculations and prints out tax returns, sup-
porting schedules and diagnostic reports.
Research Institute Investors Service, Inc.
This company provides guidance for the investor and keeps him
up-to-date on the Institute's current evaluation and analysis of the
stock market.
Research Institute Management Reports, Inc.
This company publishes a variety of influential, timely and topical
newsletters covering a wide spectrum of business interests. They
include marketing, selling, the law for business executives, inter-
personal skills for both executives and secretaries-and a distillate
of RIA guidance for executive planning and action.
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 Approved For Release 2004/11/01 : CIA-RDP88-01315R000400300015-2
A View Of RIAs
It isn't possible to adequately convey the extent of the
Institute's network of complex facilities in these pages.
However, a few selected photographs show some of its
installations, and the professional staff at work.
Staff specialists screening RIA intelligence with a cross-fertiliza-
tion of ideas.
One of RIA's Management Information Center libraries serving
the reference needs of the professional staff.
A production facility at Lawyers Co-operative Publishing Com- Separate Information Center and Business Office in Mount Kisco,
pany, including a high-speed Hantscho web-offset press. New York, serving Member company needs.
RIA's sophisticated computer installation building in Mount
Kisco.
A corner of RIA's computer installation with some of its
IBM equipment.
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 Approved For Release 2004/11/01 : CIA-RDP88-01315R000400300015-2
Facilities And Operations
With the broadened opportunities that RIA shares as
part of a corporate communications family, there will be
continued expansion and a strengthening of the services
it provides to Members.
Staff member Daisy Kempton conducting a RIA "Pooled Intelli-
gence" survey with a Member.
Executive Director Leo Cherne presenting his annual economic
forecast before the Sales Executives Club of New York.
RIA District Manager Walker Stansell presents an award to execu-
tives of Holiday Inns, Inc., in recognition of their manpower
development program.
Dave Nelson, Bureau Chief of RIA's Washington office, with
Peter Lisagor, Washington Bureau Chief of the Chicago Daily
News, following a White House press conference.
RIA Government specialist Tom Roth presents achievement RIA's Canadian Manager Richard Spei with Robert Robertson,
award to Admiral D. K. Weitzenfeld of the Naval Air Systems Executive Publisher of Maclean-Hunter, Ltd.
Command.
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 A.+lvcL I. RosenatAx
7 YAi NU }6LE
!A?fe8 A. Al1LEY R F[) tic
CARL
~~trx Fv N.~ LswrRAu
row: /
12 Approved For R
THE RESEARCH INSTITUTE
HENRY A. WALLACE
f1.LLd)H S. PALSY CHARL,
e~'6e*"
a GnveN *:er'-
I~LvCC HENRq-t
Y Creo'I,
 The Institute took the occasion of its 25th anniversary celebration
in 1960 to inaugurate "The Living History Awards," saluting the living
men and women of the nation who played a significant role in shaping
the major events of our history in the turbulent years since 1935. The
Awards were presented at the Research Institute Anniversary Dinner
at the Waldorf-Astoria Hotel in New York, before 1,800 leaders of
American industry.
25TH ANNIVERSARY DINNER
-0. ~z
ELEANOR
I,EO HExNm ~ '_/ a -Ri ES E W'. N V61~ &M-11 o RN
.t ulSrw WILLIAM F. KNOWLAND
Why-V`~+~a.
A No.I.AN T11111s
' N/V lYi S
lit
O
ALLA
ARNOLD
AN F MT ROBERT MOBES .IOBEpN ~'~'wMT R.
13
'?or RelepJ=( . CIA-RDP88-01315R000400300015-2
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Chronicle Of Growth 1935-1974
This abbreviated chronicle of RIA achievements pro-
vides prospective Members with an insight into the opera-
tions of the Institute, and records its history of accuracy
and growth.
PRESIDENT
Franklin D Rousc,elt
I'RESIDFNT
Harry S. Truman
PRESIDENT
Dwight D. Eisenhower
1935-Carl Hovgard opens 12' x 12' office in the middle of the Great Depres-
sion.
1936-Leo Cherne joins the Institute and helps expand services.
1937-Contrary to unanimous opinions, Institute accurately forecasts General
Motors sitdown strike. Predicts U.S. Supreme Court would uphold
National Labor Relations Act. Predictions cause RIA Members to have
doubts, but when facts become known, Membership swells.
1938-Persuaded war is imminent, U.S. Government asks RIA to prepare
studies for mobilization and production planning. RIA predicts Presi-
dent Roosevelt's precedent-shattering third term two years ahead of
time. RIA hammers away at the theme "Watch the Far East.-
1939-Joseph D. Ardleigh joins to start a sales organization and a new era of
expansion begins in the Institute. RIA warns Members to prepare for
industrialization in World War II.
1941 Predicts specific events shaping up in the Pacific and that U.S. would
to be at war with Japan. General Douglas MacArthur calls upon the Insti-
1949 tote to devise a plan for redistribution of wealth in Japan, to serve as a
stimulus for Japan's economic expansion in the decades after. Leo
Cherne serves as consultant to the United Nations. RIA helps with
Marshall Plan.
1950-RIA predicts Supreme Court would review and reverse legislation
enabling President Truman to seize steel mills. Provides Members with
complete and accurate analysis of government defense regulations at
outbreak of Korean war. Conducts American management courses for
European industrialists.
1955-U.S Treasury Dept. gives RIA "Outstanding Public Service" award
for helping to train personnel for U.S. Savings Bonds campaign.
1956-Leo Cherne flashes reports on Hungarian revolt directly from Budapest
to the White House. RIA hosts luncheon for then West Berlin Mayor
Willy Brandt, and later Chancellor of Germany- 1,700 business and
community leaders attend. Life magazine gives recognition to RIA as
number one authority on what to expect in the Sixties.
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Research Institute Highlights
The medallions on these pages signify the honor the
Institute has had in contributing its unique capabilities to
the efforts of each successive Administration since 1935.
1960-RIA celebrates 25th anniversary by honoring 50 men and women who
made history during first quarter century.
1961-Predicts compulsory arbitration would be applied in public service
field. Two years later Congress first applied it to halt rail strike.
1962-Forecasts Supreme Court would force discontinuance of "super
seniority" status for workers who replace strikers during labor disputes.
1963-American Bar Association gives RIA coveted "Silver Gavel" Award.
to RIA accurately predicts the first increase in the Federal Reserve Bank's
1969 discount rate in a year and a half. Throughout the 1960's RIA warns
Members about future effects of campus radicalism on hiring criteria.
Consistently defines effects of civil rights legislation on business. Fore-
casts emergence of Japan as super power. Forecasts devaluation of
British pound and vulnerability of dollar, and centrist shift of Supreme
Court following retirement of Justice Earl Warren. Warns Members of
ever-increasing federal government interference in affairs of pri-
vate business.
1970-At turn of decade professional Staff members accurately predict stock
to market slide. RIA issues OSHA legislation evaluation to Members
1974 across the country before it was eventually passed. Forecasts direction
of new consumer movements and legislative results giving Members
recommendations for trouble and worry-free compliance.
Within hours of President Nixon's historic wage/price freeze announce-
ment RIA Staff produces analysis, and a few days after mails detailed
study to Members.
With office theft at an all-time high, RIA mails comprehensive report
"Countering White Collar Crime." As nation's Social Security programs
get drastically overhauled, the Institute mails three different FICA
handbooks for management executives, salesmen and supervisors.
The Research Institute has lived and thrived through one depression, five reces-
sions and three wars. But most important, during these years it has helped
thousands of other businesses survive those crises-and will continue to do so
in the future.
PRESIDENT
Lyndon B. Johnson
PRESIDENT
Richard M. Nixon
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 Approved Fo e e (2e f-SD L814.1 1JS000400300015-2
The Research Institute, naturally, receives an unending stream of
endorsements and testimonials from Members. They tell us of the value
of membership, praise the depth of the intelligence and guidance of-
fered by the Staff, and how specifically RIA programs save them time
and money, regardless of the company's size or stature. A few are shown
here.
"In the Depression's bleak days, one of the first investments I made for
Volpe Construction was RIA Membership. There is no doubt that the
guidance we received in those early days was contributory to the suc-
cess of our small, new company. Volpe Construction is still a member."
HON. JOHN A. VOLPE, former
Secretary of Transportation,
present Ambassador to Italy
?1 have been an Executive Member of the Research Institute for a num-
ber of years and have found the information which this association has
made possible very helpful."
WILLIAM S. LOWE. Chairman of
the Board. A. P. Green Refracmries Co.,
former President. Chamber o(' Conrtnerce of the
Ilnited States
"Fashion is totally a reflection of the times and acts as a sharp mirror
of social and economic change. In order to be a successful fashion
retailer, you have to keep pace with and interpret correctly every shift
and trend. This kind of guidance is key, and that's why I read RIA's
reports."
JANE R. EVANS, President
1. Miller Salons
"When you're a growth company with offices all over the world, and in
a people's business, an organization like RIA not only provides you
with ideas, but keeps the bases covered."
JOHN C. EMERY, JR., President
Emery Air Freight Corporation
"RIA Membership is an investment that has paid off well. I know I can
count on RIA to bring me concise reports, expert opinions, and good
advice ... and I need only spend only a fraction of the time I used to
devote to keeping posted on what's going on in the world."
WILLIAM N. AUSTIN, President
Gaffers & Sattler. Inc.
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 Approved For Release 20(L4/1)/01 : CJA-RDP88 irThe 30 15-2 ?
Leading Company institute
You may not have known about our services before, or you may be
one of our Member companies. In either case you will be interested in
this partial list of the thousands of companies who are presently Mem-
bers of the Research Institute.
Abbott Laboratories
Eastern Airlines
IBM Corporation
A. B. Dick Company
Eastman Kodak
Idaho Power Company
Aetna Life & Casualty
Eaton Yale & Towne
Illinois Central Railroad
Alberto-Culver
Economy Forms
Ingersoll-Rand
Allied Chemical
Elba Systems
Inmont Corporation
Aluminum Company of America
Eli Lilly
International Paper Company
American Broadcasting Company
Endicott: Johnson
International Wire Products
American Cyanamid
Equitable Life Assurance
Interstate Restaurants
American Express
Ethyl Corporation
Itek Corporation
American-Standard
Elanco International
Intertel
Anaconda Wire & Cable
Electrolux Corporation
Ivan Sorvall, Inc.
Avis Rent-A-Car
Exxon Corporation
Ivy Supply Company
Babcock & Wilcox
Faberge, Inc.
Jackson Beauty Supply
Bancroft & Martin
Fairchild Industries
Japan Airlines
Bank of New York
Fairbanks Morse
Jiffy Manufacturing Company
Baskin-Robbins
Farmers Supply Company
John Hancock Life Insurance
Bell & Howell
Federal Reserve Bank of Philadelphia
Johns-Manville
Bendix Corporation
Ferro Corporation
Johnson & Johnson
Bethlehem Steel
Firestone Tire & Rubber
Jones & Laughlin Steel Corporation
Black & Decker
Florida Power & Light
Joseph Schlitz Brewing Company
Boise Cascade
Ford Motor Company
Joyce Associates
Borden, Inc.
Frito-Lay, Inc.
Judd & Detweiler
Boston University
Fuller Brush Company
Jung Products
Burroughs-Wellcome
Funk Brothers Seed Company
Jurgenson Construction Company
CIT Financial, Corporation
GAF Corporation
Kable Printing Company
Canadian Forest Producers
General Motors
Kaiser Aluminum
Celanese Corporation
Georgia Pacific
Kalamazoo Spring Corporation
Chrysler Corporation
Gerber Products
Katz, Schachter & Krause
Ciba-Geigy
Goodman & Company
Kayser-Roth Corporation
Coca Cola
Goodyear Tire & Rubber
Kent & Snow
Connecticut General Life Insurance
Grand Rapids Gypsum
Kenyon & Eckhardt
Container Corporation
Grandma Cookie Company
Kimberly Clark Corporation
Control Data
Great Scott Supermarkets
Kirby Block
Crane Company
Green Shoe Manufacturing Company
Kohler Company
Crown Zellerbach
Greyhound Bus Corporation
Kraft Foods
Cuneo Press
Gulf Oil Company
Kurtz, Coleman & Weber
Dallas Merchant & Taylor
Hallmark Cards
Lake Ontario Cement Company
Dan River
Hartford Courant Company
Lawrys Foods
Decision Data Computer
Hermes Electronics
Lederle Laboratories
DeKalb Feeds
Hertz Corporation
Lehn & Fink Products
DeLaval Turbine
Hewlett-Packard
Libbey-Owens-Ford
Detroit Edison
Hoffman-La Roche
Liberty Mutual Bank
Dillon Read & Company
Holiday Inns
Lincoln Electric Company
Doctors Hospital
Honeywell, Inc.
Litton Industries
Dow Corning Corporation
Houston Chronicle
Loews Theatres & Hotels
Drydock Savings Bank
Hughes Tool Company
London Records
Du Pont
Hurdman Cranston & Penney
Lantz Corporation
Duro Metal Products
Hyster Company
Lykes Brothers, Inc.
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Quigley Company
Varian Instruments
Quincy Compressor
Vaughn & Fortner
Mack Trucks
Quinney & Quinney
Vedder, Price & Kaufman
Maclean-Hunter Ltd.
Quinlan & Company
Venable, Bactjer & flowa
Madison Square Garden Corporation
Quirk & Quirk
Vendo Company
Magnavox Corporation
Quiter, Younger & Swanson
Victor Equipment Company
McLean Trucking Company
Vincent Brass & Aluminum
Merck
Sharp & Dohme
Radio Corporation of America
.
Volkswagen Company of America
Metropolitan Life Insurance Company
Ramada Inns
Vornado, Inc.
Midas Muffler Shops
Rand McNally
Midwest Liquor Com
an
Ravhestos
p
y
W. R. Grace & Company
Milbank
Tweed & Hadle
Raytheon
.
y
Wagner Electric Corporation
Minnesota Mining &
Reuben H. Donnelley
Walgreen Company
Manufacturing Com
an
Reynolds & Reynolds
p
y
Walt Disney Productions
Motorola
Inc
Rhecm Manufacturing Company
,
.
Warner-Chilcott Laboratories
Rockwell Manufacturing Company
Watkins Ward & Stafford
National Cash Re
ister
Ronson Corporation
g
Weber & Company
Nankin Schnoll & Com
an
Rust-Oleum Corporation
p
y
Wells Fargo Bank
Naramore Niles & Company
Ruzzo Scholl & Murphy
West Bend Company
Narco Scientific Industries
Westcoast Transmission
Nash Engineering
S. S. Pierce
Westheinter
Fine & Ber
er
New England Envelope Company
Safeway Stores
.
g
Weyerhaeuser Com
an
Norcross Corporation
Sanders & Sanders
p
y
Scheiing Corporation
North American Rockwell
XYO Vest
Inc
Scott Paper Company
,
.
Norton & Norton
X-L Brass Manufacturing Company
Seven-Up Bottling Company
Novak & Agnoli
X-Ray Medical Grou
Shell Chemical
p
Novato & Company
Xanthos, Carloni & Pclleg
Sherwin Williams
Nuclear Technology Corp.
Inc.
Xcelite
Singer Company
.
Xebec Corporation
Smith & Wilson
Occidental Petroleum
Xerox Corporation
Ogilvy & Mather. Inc.
Squibb Corporation
Xidex Corporation
Stewart Warner
Ohio University Library
Xim Products Corporation
Olin Corporation
Teledyne, Inc.
Xomox Corporation
Oscar Mayer & Company
Texas Instruments, Inc.
Xtermco
Oshkosh Truck Corporation
Thomas J. Lipton, Inc.
Xtra, Inc.
Ostrow, Dailey & Dailey
Todd Shipyards
Otis Elevator Company
Toro Manufacturing Corporation
Yale University
Overhead Door Corporation
Touche Ross & Company
Yamaha Parts Distributors
Owens-Illinois, Inc.
Travelers Insurance Company
Yancey Brothers, Inc.
Oxford Paper Company
Triangle Publications
Yandell Page & Archer
Ozinga Brothers, Inc.
Tuck Industries
Yates & Fann
Tucumcari Industries
York Bank & Trust Company
Pan American World Airways
Tupper Moore & Company
York Machinery & Supply Company
Parade Publications
Turney & Dupree
Young Door Company
Parker Brothers, Inc.
Young & Rubicam
Peat, Marwick & Mitchell
Uncle Bens, Inc.
Younghans & lmgrund
Pepsico, Inc.
Underwood Wilson Sutton
Youngs Drug Products Corporation
Pillsbury
Uniflite, Inc.
Yuma City Refrigeration
Pitney-Bowes
Unimac, Inc.
Polaroid Corporation
Union Carbide Corporation
Zacks Luper & Durst
Porter Stahnke & Phillip
United Grocers Association
Zenith Radio Corporation
Price, Waterhouse & Company
United States Steel Corporation
Zetley & Palay
Procter & Gamble
Uniroyal, Inc.
Zinsco Electrical Products
Puerto Rico Cement Company
University of Wisconsin
Zippo Manufacturing Company
Upjohn Company
Zonolite
Quad City Food Services
Utah, International
Zunker Business Services
Quaker Oats Company
Utility Trailer Manufacturing Company
Zurich Insurance Company
Quakertown Brick & Tile
Zurn Industries
Quality Stamp Company
Vail-Ballou Press
Zweiback & Laughlin
Queen City Barrel Company
Vamac, Inc.
Zwick & Zwick
Quest Apartment Locators
Vanier Graphics. Inc.
Zwight Logging Company
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 Approved For Release 2004/11/01 : CIA-RDP88-01315R000400300015-2
People Make The Difference
Every company has a particular flavor and character-a
style that makes it different from all others. Though many
factors contribute to a. company's stability and growth,
business experts generally agree that the major one in a
company's success is the effectiveness of its people. Per-
formance and profits go hand in hand, resulting from peo-
ple's attitudes, work habits, loyalty, knowledge and energy.
If a company seeks to educate and motivate its employees
in the best possible way, it can look to the Institute for
guidance.
The Research Institute itself is only an organization of
people-its most important resource. Some of the profes-
sional staff are shown on the next two pages. Their back-
grounds and abilities offer some insight into the depth
and diversity of talent available to American business.
Top management usually sets the tone or atmosphere
in an organization. If it is industrious, serious and fair-
minded, the company as a whole tends to take on this
character. Both RIA's management and staff work hard
to develop and sustain a climate of excellence. They are
proud of their special way of being and of doing things.
As the Institute grows and instills new methods of in-
telligence and guidance in its programs, it offers business-
men a way to improve profits through the effective
management of people.
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 Approved Fo Meet o1me : -0e esearch institute's
ROBERT C. ALBROOK
Formerly associate editor
of Fortune. specializing in
management research and
analysis. and a member of
the Editorial Board of
The Washinioon Post and
The Fretting Bulletin in
Philadelphia. Head of a
U.S. Senate committee
staff. and lecturer at the
University of California.
IIAIG BABIAN
Pill it ica I-economist.
historian and analyst of
the macroeconomics of
growth and social change.
Specialist in international
trade and monetary affairs.
as well as government
programs to regulate the
economy. hornier director
of the Institute of
Economic Affairs.
M.A.. New York
University.
ROBERT A. BEDOLIS
Labor relations analyst.
More than two decades
experience in evaluating
and reporting significant
developments in
management union
relations. Former labor
editor of major New York
newspaper. Master's
Degree. Columbia U.
JANE G. BENSAJIEL
Specialist in analyzing
and describing supervisory
developments. middle
management techniques
and behavioral svchology.
B.S. Degree in Economics.
University of Pittsburgh.
ISIDOR BIRKENTIIAL
Anticipates. evaluates and
re arts on fine points of
se Ping. Broad corporate
background as broadcast
salesman, sales manager.
copy editor and advertising
account executive. English
ma or at Brx ,klsn College
and New York University.
RUTH BURGER
Specialist in personnel
relations. communications
and management
development. Writer and
lecturer on industrial
psychology for over 20
years. Author of The
Psychologist in Industry."
Graduate of Douglass
College. Rutgers
University.
THEODORE CASE
Responsible for all
marketing sales
intelligence and
recommendations. Gained
broad merchandising
experience with consumer
and industrial firms. Yale
University and Alliance
Francais de Paris.
RAY CONCANNON
Over 21) years of practice.
specializing in commercial
law. Broad experience in
analysis of business
legislation. Author of
You and the Law." an
ABA gasel award winner.
Doctor of Law. Fordham
JOE COWLEY
Specializes in writing and
editing reports on selling
and sales management.
Previously: salesman.
freelance writer. English
teacher and sales
promotion director. B.A.
-cum laude[ and M.A..
Columbia University.
Co-author of "The
llxccunse Strategist."
KEN DOURER
Marketing change analyst.
More than 20 years of
experience in selling and
sales management with
leading consumer and
industrial firms. Broad
background in both
tangibles and intangibles.
Industrial Psychology
major. Columbia
Unrversits and Baruch
College.
PAT DURSTON
Wide experience as an
analyst of corporate affairs
and management practices
in U.S. and Europe.
Author and editorial
consultant. Graduate of
Smith College.
CHARLES E. ELTING
Specialist in Trusts and
Estates. Ad-unet Associate
Professor of Taxation.
New York University and
Pace College. Member of
the Tax Court of the U.S.
liar. A.B.. Yale: J.D..
Ilarvard Law Schrwf:
ELM. [Taxation[. N.Y.U.
GENE EPSTEIN
Specializes in analyses
and recommendations for
foremen and front-line
supers isors. with special
concentration on the
relationships between
off-the-job activities to
on-the-job performance.
Award-winning author.
St. John's College.
Annapolis.
EMIL ERNST
Responsible for the
Institute's Tax
Coordinator. Member of
the New York Bar and
N.Y. County Lawyers
Association. B.S.S..
CCNY: J. D.. I Iaryard
Law School.
LEON GOLD
Director of the Institute's
staff of nationally-known
tax attorneys and
accountants. Member.
Taxation Section.
American Bar Association
and member. Tax Advisory
Board. Pace College.
Author of tax section.
Encyclopedia Americana
Annual. B.A.. NYU (Phi
Beta Kappa I: J.D.. Harvard
Law School.
BERT GOTTFRIED
Chief economist for the
Institute. Also specializes
in U.S. regulatory
agencies. Nineteen years'
experience in projecting
economic conditions and
business prospects.
Formerly with the Bureau
of Economic Research.
Master's Degree in
Economics. Columbia
University.
BARBARA IIAUGEN
Chief WashinJ;ton Bureau
analyst of U.S. government
regulatory agency
operations. Also
experienced in covering
other Federal executive
departments. B.A..
University of Minnesota.
MARGARET IIIGGINSON
Specialist in organizational
and environmental
development. Nineteen
years' experience in
business research, writing
and administration. Author
of "Management Policies"
and "Managing With
EDP." B.S. and M.A..
University of New Mexico.
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 DedicatedA?i~efessionarStaIff F CIA-RDP88-013158000400300015-2
MARY LOUISE JOHNSON
Government regulations
analyst with extensive
journalistic credits.
Contributor of numerous
articles on business trends
and outlook in foreign and
U.S. newspapers and
magazines. Former
Washington correspondent
to United States missions
in Southeast Asia and
other areas. B.A.,
Rosemont College.
MARY JOLLON
Over 10 years' experience
in secretarial management
and supervisory training.
Extensive corporate
management background.
Graduate of St. John's
University, New York.
STEVE KAUFMAN
Responsible for sales
management and
manpower development
material. Former magazine
writer and editor. Also
served as reporter with
leading newspaper. B.S.
Degree in Journalism and
Communications,
University of Illinois.
JESSICA MILLER
Responsible for in-depth
marketing and
management analysis.
Broad communications
background includes
corporate sales promotion.
B.A. Political Science.
Chatham College.
AUGUSTUS MORRIS
Prepares in-depth reports
on opportune tax
situations. Particular
emphasis on the specific
nature and timing of the
action to he taken. C.P.A.
and twenty-four-year
veteran of the Institute.
B.S. and M.S., Columbia
University.
DOMENICA MORTATI
Specialist in researching,
analyzing and describing
new and improved office
methods and procedures.
Fifteen years of corporate
communications and
business research. B.A.,
Hunter College.
DAVID NELSON
Chief of the Washington
Bureau. Former aide to a
vice president of the U.S.
and to a governor of North
Dakota. Master's Degree in
Political Science,
University of Minnesota.
MARJORIE NOPPEL
Specialist in manufacturing
management. Eighteen
years' experience in
research and writing on
all phases of plant
management and
production operations,
Co-author of a book on
executive development.
Graduate of Wellesley
College (Phi Beta Kappa).
THOMAS L. QUICK
Authority on organization
development and group
behavior. Author of books
on task force management
and the dynamics of
behavioral change in
organizations. B.A.,
Fordham University.
JOSEPH QUIGLEY
Specialist in tax research
for more than 20 years.
Member, New York Bar;
Tax Court of The United
States Bar. Lecturer and
author. B.S., Holy Cross;
J.D., Fordham University.
JAMES M. RUSSELL
Chief of Washington Tax
Bureau. Conducts
Institute's liaison with
Internal Revenue Service
and Congressional
Committees. Certified
Public Accountant. Law
degree, George
Washington University.
RICHARD M. SALZMANN
Directs RIA's Executive
Membership program and
staff. Former vice
president of President
Eisenhower's People-to-
People programs. M.A.,
University of Cincinnati;
B.A., University of
Chicago; B.D., Wartburg
Seminary.
ERNEST E. SCHNEIDER
Washington Bureau staff.
Specialist in urban and
government affairs. Chief
analyst of U.S. National
Trends For Free Europe
for many years. Graduate,
Institute of International
Studies, Geneva,
Switzerland, M.A.,
International Relations,
Yale University.
GERALD STEIBEL
Recognized authority on
government, international
relations, foreign policy.
Author and teacher.
Consultant to Defense
Department. Former
Research Director. Free
Europe Committee, Ph.D.,
Columbia University.
GENE THOMPSON
Specialist in management
with over 15 years'
operating experience in
financial, marketing and
general management. Past
president, Society for
Advanced Management.
Former liaison officer for
General Joseph Stilwell
with Lord Mountbatten.
B.S., University of
Missouri.
AUREN URIS
Internationally recognized
authority in the fields of
supervision and
management. Author of
20 books. Frequent
television and radio guest
and panelist. B.A.. New
School for Social Research.
THOMAS WEYR
Specialist in national
affairs, politics, social
change, legislation. Former
Washington reporter and
foreign correspondent.
B.S., Columbia University,
Ph.D., University of
Vienna.
BARBARA WHITMORE
Director of Research for
management and
organization behavior.
Over 25 years' experience
includes advising
management on manpower
development, labor
relations, personnel
practices. B.A.. Wellesley
College; M.A., Stanford
University.
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RIA's Top Management Leaders
WARREN C. MEEKER
Chairman of the Board
For more than twenty-five years. Warren C. Meeker has made
distinguished contributions to the professional, business and
publishing worlds as a researcher, marketer and administrator.
He was formerly president of Bancroft-Whitney Company, and
president of Bender-Moss Company. Mr. Meeker is active in
a variety of professional and community organizations.
JOSEPH D. ARDLEIGH
President
Recognized nationally as an authority in modern marketing
and personnel practices, Joseph D. Ardleigh has over thirty-
five years experience in sales management including former
operation of his own company, Sales Methods. Inc. A past
president of the Sales Executives Club of New York, he serves
in numerous capacities with the National Society of Sales
Training Executives. Chamber of Commerce, and The Busi-
ness Advisory Council of Manhattan College. Mr. Ardleigh is
also a Director of Emery Air Freight Corporation.
LEO CHERNE
F.vecutrre Director
As a lawyer. political scientist and economist, Leo Cherne,
from the inception of the Research Institute, has directed the
Institute's distinguished research staff. Mr. Cherne is Chair-
man of the Board of the International Rescue Committee. He
has been an advisor to successive Administrations in Washing-
ton and has worked closely with heads of nations throughout
the world. Iic is a member of the President's Foreign Intelli-
gence Advisory Board, the United States Advisory Commis-
sion on International Educational and Cultural Affairs, and a
member of the Board of Advisors of the Industrial College of
the Armed Forces.
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RIA Supported By A Corporate
Communications Family
The Research Institute of America is one of three specialized companies which to-
gether serve the vital function of providing authoritative information and stimulating
ideas to assist the world of business.
Lawyers Co-operative Publishing Company, created in 1882, is the parent firm,
and also founded on a unique idea: the cooperative effort of a group of lawyers to
underwrite the publishing of lawbooks and to merchandise them at a reasonable
cost to their associates in the profession. Its headquarters is in Rochester, New York.
Early in this century LCP became associated with the Bancroft-Whitney Com-
pany, a successful West Coast lawbook publisher founded in 1856. This led to in-
creased collaboration and common ownership of the two firms in 1956. With large-
scale, coordinated research staffs and related products and customers, they now
serve separate geographical areas of the country with a full range of legal reference
materials.
Since the Research Institute is a vital source of information on business in general,
and on tax law, a logical merger took place when RIA joined the corporate family
in 1965. Together these three companies share the same basic mode of operation
and fundamental objectives, and represent a major voice in the field of
communications.
At the same time each company maintains its own personality, reflecting the
character of its people and the nature of its corporate development over the years.
The highly analytical and detailed nature of all its operations makes the group
well suited to the adoption of sophisticated computer technology. All three use
unique information retrieval systems, and have the capability of reproducing the
output with automatic typesetters and high-speed printing and binding equipment,
to provide almost instantaneous answers to questions facing business. In 1971 the
Lawyers Co-operative Publishing Company completed a major new plant in the
Rochester suburb of Webster, New York, which provides the latest computerized
data-base publishing capability to all three companies.
As they increase the efficiency of handling research information, and develop
new and effective ways of providing the services needed by the business, legal and
accounting professions, Members will clearly benefit by their association with the
Research Institute.
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Management's Need For RIAs
Services GreaterThan Ever
America is now undergoing more fundamental change
and experiencing more pressures and uncertainties than
ever before. Sonic of our basic values are being changed.
New and divisive concerns affect our business and per-
sonal lives. Complex local, state and federal legislation,
the widening tax maze, spiraling costs, new technology
and ever-increasing competition continue to frustrate
management's task of operating profitably.
For a company or government department committed to
keeping pace with today's accelerated change, promoting
more effective performance on all management levels and
thus fostering dynamic growth, RIA offers the benefits of
a service that has successfully advised and assisted business
and government for almost forty years.
If a man's ability to grow is as good as the quality of his
mind, then the nation's ability to prosper is as good as the
quality of its management. Mobilizing every professional
resource required toward this undertaking is the contin-
uing objective of the Research Institute and the heart of
the service it renders.
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We InviteYouTo Participate
This brochure provides only a broad, general under-
standing of the services offered by Membership in the
Research Institute; it can't possibly answer all the questions
you may have. A better way to learn about us and our
capabilities as they relate specifically to your business
would be a brief, informal talk with one of our District
Managers nearest you. Or, if you wish, we would be pleased
to send you further detailed information about our
programs.
We invite you to call us, without obligation.
In New York [phone]
Or, if you prefer, write for further information to:
The Research Institute of America, Inc.
589 Fifth Avenue
New York, N.Y. 10017
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 Approved For Release 2004/11/01 : CIA-RDP88-01315R000400300015-2
The Research Institute of America, Inc., 589 Fifth Avenue, New York, N.Y. 10017
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