Address Of President, W. L. Saunders, Annual Meeting, New York, Feb. 15, 1916.

The Institute is at present in sound condition professionally and financially. During the past year 546 new members were elected, the total membership now numbering 5,221. The Treasurer's Report shows that the expenses of the Institute are met by its income. Your Directors have thought it wise to issue a referendum to the members asking for a vote upon the suggestion that the annual dues be raised from $10 to $12. This moderate increase is proposed not because the Institute needs it at present but to insure a continuation and increase in its activities and usefulness, and to provide a reserve fund for future emergencies. In well-conducted organizations, such as clubs, it is a wise and safe course to so adjust the clues of members that the total receipts from this source will about equal the annual expenditures, the initiation fees being used for reserve purposes. Our dues alone do not at present meet the expenses. This, I think, is the whole situation, so far as this question is concerned. Expenses might be reduced in some measure, but they cannot be materially reduced without affecting the integrity and usefulness of your Institute. Nothing of consequence in our internal affairs has occurred during the past year except, perhaps, the establishment of the Arizona Section and the prospect now assured of a Nevada Section. During recent months there has been a marked change in the relations of the Institute to its fellow societies and to the Government of the United States. That change is one of cooperation. The Secretary of the Navy has appointed two of your members to the Naval Consulting Board to cooperate with members of 10 other scientific organizations. This Board is now organized, and through its work your Institute is brought in close touch with the activities of the other societies and with the United States Navy. The President of the United States has requested us to recommend to the Government one of our representatives in each State in the Union to act in collaboration with a member in each State from the. American Society of Civil Engineers, the American Society of Mechanical Engineers, the American Institute of Electrical Engineers and the American Chemical Society, thus organizing a directorate of engineers for each State, that will conduct, through the members of each of the five societies referred to, living in each State, a campaign of industrial preparedness. No more important step than this, it seems to me,