73 EXECUTIVE OFFICE OF T H E PRESIDENT BUREAU O F THE BUDGET WASHINGTON 25, D. C . November 3, 1950 lLE24OilANIxTBrf FOR THE FILE SUBJECT: Conversation with Dr. Cornelius P. Rhoads, Director, Sloan-Kettering I n s t i t u t e f o r Cancer Besearch, and E r e c t o r , BIemorial Hospital I c a l l e d on Er. Rhoads a t U:30 am Friday, IJovember 3, by appointment and spent t h e balance. of t h e day w i t h h i n a t t h e I n s t i t u t e a t 4I.O East 68th S t r e e t , New York City. Ye read m y precept and we discussed various matters r e l a t e d t o i t , but p r i n c i p a l l y t h e meeting was of value t o ne i n giving me an i d e a of the functioning of a p r i v a t e l y supported research i n s t i t u t i o n i n t h e medical--biological f i e l d , wfiich i s a l s o doing some Government supported m r k . Dr. -Rhoads i s about 52 years o l d , and was o r i g i n a l l y a Early i n h i s c a r e e r he had t u b e r c u l o s i s , p r a c t i c i n g physician. and w h i l e a t Saranac decided t o concentrate on research. Be was a s s o c i a t e d with the A%ckefeller I n s t i t u t e f o r some years. &wing Yiorld 'iiar 11, a f t e r sone work - 4 t h the National ELesearch Council and i n t h e OSilD, he and members o f h i s OSXD u n i t went i n t o t h e chemical warfare s e r v i c e o f t h e Army, i n which he remained as a Colonel from 1943 t o 1945. He gave ne some pamphlets and o t h e r l i t e r a t u r e which d e s c r i b e q i n some d e t a i l t h e organization and p r i n c i p a l channels of a t t a c k of Sloan-Kettering I n s t i t u t e , and I will t h e r e f o r e not attempt t o summarize them here. The I n s t i t u t e has a staff of about 300 individuals,including lOU s i g n i f i c a n t r e s e a r c h personnel, and 200 other staff members. The I n s t i t u t e connects w i t h Memorial Hospital and the new city-owned 'L?Aing Hospital, each of which has about 800 beds (or perhaps it i s 800 beds f o r both cmbined?). Technically SKI i s a s u b s i d i a r y of Memorial Hospital. There i s a l s o a t i e - i n i n operating arrangements with t h e nearby Cornel1 U n i v e r s i t y Medical Center, New York Hospital, e t c . Dr. Conant, Compton, D r . Bronk, as w e l l as Lewis S t r a u s s and Alfred Sloan, are trustees of SKI. Lawr ce Rockefeller has r e c e n t l y become President of Memorial Hospi a l , i n which h i s family has long been i n t e r e s t e d , and which has a r e l a t i v e l y l a r g e board, including Lewis S t r a u s s . The family of L w n s Douglas, who is a l s o on the board a t Cenorial, has been i n t e r e s t e d i n t h a t h o s p i t a l f o r s e v e r a l generations, going back t o Dr. James Douglas. I t h i n k t h a t Archibqld Douglas may a l s o be on t h e Xemorial Board a t t h i s time T -2Sloan-Lettering i s operating on an annual budget of $1,6Ou,OOO. Its only f i x e d income i s ’4j3OO,OW per year from Alfred Sloan, NhiCh has been guaranteed f o r a continued five-year period. I n a d d i t i o n t h e r e i s a 6260,000 annual contract frm t h e A X , an annual grant of about $300,00U from t h e b e r i c a n Cancer Society, and l e s s e r sul~ls from a v a r i e t y of organizations in Fund, and i n d i v i d u a l s . Thus finances, are a s u b j e c t of constant concern t o Dr Memorial Hospital has annual operating c o s t s o f about f o u r m i l l i o n d o l l a r s a g a i n s t which it receives r e g u l a r revenues o f about $3,40O,OOO, leaving an annual d e f i c i t of about $600,~00, which i s made up,apparently y i t h o u t much d i f f i c u l t y , by income from investments, miscellaneous revenues and bequests of various s o r t s . SKI was announced i n 1945 and began i t s a c t i v i t i e s a f t e r completion of i t s b u i l d i n g i n about 1947 o r 1948. Alfred Sloan, of General Yotors, gave two m i l l i o n d o l l a r s 285 t h e construction, and then as c o s t s proved t o be about 83,200 made a f u r t h e r bequest addition, he committed of about a m i l l i o n d o l l a r s , o r sane such. himself i n 1945 f o r two m i l l i o n d o l l a r s f o r operating expenditures payable a t t h e a n m a l rate of $200,000, with t h e i d e a t h a t a d d i t i o n a l funds should be r a i s e d from others. A s i n d i c a t e d above, he has A-&-@-< I increased t h e annual r a t e , and contemplates extending t h e time period. fAn Dr. Rhoads had a meeting a t 3:30, and a t that time I was taken on a tour of t h e building and i t s l a b o r a t o r i e s by h i s assistant, Miss Beverly Alexander, formerly of Randolph Macon and Yemphis. Among o t h e r s , I F ? Dobriner. The t r i p i s b e s t s m a r i z e d by reference to t h ,&tter, but I must note t h e i n c i d e n t a l i n t e l l i g e n c e she furnished t o the e f f e c t that i t c o s t s U&+? per month t o provide board and lodging f o r one mouse. Details of bookkeeping were not furnished. I a l s o learned t h a t Dr. Rhoads l i v e s i n a penthouse atop the I n s t i t u t e . As i n d i c a t e d above, D r . Rhoads i s eager t o o b t a i n supporting g r a n t s because o f t h e u n c e r t a i n t i e s o f the I n s t i t u t e ’ s sources o f o u t t h a t much of t h e v m k that i s being d i r e c t e d esearch is c l o s e l y r e l a t e d t o chemical warfare and from b i o l o g i c a l warfaro m a t t e r s , and he spoke a t sane l e n g t h of his chemical warfare experience and on t h e f c t t h a t ome members of his present staff were with him i n t h e &?mica1 &fare A m i c e .q 1 9. He told m e t h a t he has been i n v i t e d t o lunch by Fred Lawton, Director of the &eau of t h e m g e t on November lu. He s a i d he Lirs. Lasker does not know why he has been so i n v i t e d , may have arranged it. l’iilliaa T.’ dolden