Source: New York Herald Tribune: March 11, 1950
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Former Aid of Dr. Waksman Brings Action; Profits Now Go to Rutgers Foundation

By The Associated Press

TRENTON, N. J., March 10. – A former Rutgers University graduate student today accused Dr. Selmn A. Waksman of misrepresenting himself as the, sole discoverer of the drug, streptomycin. The former student, Dr. Albert Schatz, of 210 Riverdale Avenue, Brooklyn, filed suit in New Jersey State Superior Court claiming he was a co-discoverer of the drug with Dr. Waksman.

Asserting he holds one-half interest in all profits from the exploitation of the drug, Dr. Schatz asked the court to direct Dr. Waksman and the Rutgers Research and Endowment Foundation to pay him what it shall "find to be due him."

All profits from the manufacture and sale of the drug have been assigned by Dr. Waksman to the foundation.

Russell Watson, attorney for Dr. Waksman and the Rutgers foundation, said Dr. Schatz's claim was "entirely without merit." "The action will be vigorously contested," he added.

Mr. Watson said there would be no further comment until papers in the case had been received and read.

Dr. Schatz also demanded the court restrain Dr. Waksman from representing himself as the sole discoverer of the drug, which he said in the suit was of "great value in the treatment of diseases."

The Brooklyn man claimed that, during the period from June to October, 1943, he "conducted experiments and research in continuation of prior work done by him, which eventually led to the isolation and discovery of a new drug now known as streptomycin."

He added that his research and experimentation were checked and confirmed by Dr. Waksman, and that, thereafter, he collaborated on the discovery of the drug, which he said in the suit was of "great value in the treatment of diseases."

The Brooklyn man claimed that, during the period from June to October, 1943, he "conducted experiments and research in continuation of prior work done by him, which eventually led to the isolation and discovery of a new drug now known as streptomycin."

He added that his research and experimentation were checked and confirmed by Dr. Waksman, and that, thereafter, he collaborated with the renowned scientist "in the further development of the drug."

Dr. Schatz said he was a graduate student in Rutgers' department of soil microbiology at New Brunswick during the five-month period in 1943.

The suit charged that Dr. Waksman and the graduate student jointly sought a United States patent covering streptomycin, and were described as "co-discoverers" of the drug in that application.

It further alleged that Dr. Waksman threatened to "see to it" that employment would be denied Dr. Schats in the scientific field if he failed to assign the patent application to the Rutgers foundation. Dr. Schatz asid he agreed to the assignment for fear of Dr. Waksman's "power, position, and influence . . . in the world of science."

In the suit, Dr. Schatz asserted that Dr. Waksman has "reaped rewards, both monetary and professional, to his sole benefit, and to the damage and injury of the plaintiff."

He said Dr Waksman and the foundation have "licensed firms and corporations unknown to plaintiff, to manufacture and sell streptomycin, with the result that defendants have received and will continue to receive large sums of money by way of royalties."

Dr. Schatz added that he understood Dr. Waksman and the foundation have patents or patent applications for streptomycin in Argentina, New Zealand and Canada as well as the United States.

He said he demanded but was refused payment by the defendants of "one-half of all proceeds received by them in exploiting the discovery of the drug."

In addition to the plea for reimbursement and restraint against Dr. Waksman's alleged representations, Dr. Schatz asked the court for a judgment:

(1) Setting aside all assignments made by him to the foundation,

(2) Directing the defendants to account for all moneys received by them from the discovery and sale of the drug, and

(3) Restraining them from selling or assigning any interest in the drug patents.

Jerome C. Eisenberg, of Newark, is attorney for Dr. Schatz in his civil suit filed with Superior Court's chancery division.

Waksman Unavailable

Neither Dr. Waksman nor Dr. Robert C. Clothier, president of Rutgers, could be reached immediately last night for comment. Generally all the recent drug discoveries in the United States have been produced by collaborators or teams of researchers, with the credit and responsibility for the work ascribed to the project's leader. Dr. Schatz has been cited in several news stories as having worked on streptomycin with Dr. Waksman.