The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1892-09-30
VERY INTERESTING ARRAY
Some Things About the Hospital That
Have Not Heretofore Been Printed.
How Contracts Are Let for Supplies to Favored
Bidders-A Compilation of Figures Show
ing How Things Are Fun.
Are things lust as they used to be,n

"Are things just as they used to bef"
The question was put to a member of the
board of trustees one day IN July last by
j. S. Farrell, the well-known I1linois-street
plumber and gas-ftter. The remark was
no doubt put ont as a feeler in reference to
the award of the August contract for work
and supplies at the Central Hospital for
the Insane.
What do you meanp asked the member
addressed.
Il was just wondering" said Mr.. Farrell,
whether 1t is worth while for me to bid
for the contract. / did SO for a number OF
months. but nothing ever came of 1t and /
quit doing so. 1t seemed to be plain to me
that wasn't In it."
Certainly; put in your bid" was the
answer. "and if it is the lowest, you will
get it,
Mr.. Farrell followed the advice and
when. on July 90. the bids were opened in
the office of Custodian Griffin. at the
State-house. be surprised himself by sue
ceeding. There were present J. L. Carson,
president of the board; z. II. Hauser, treas
urer; Thomas Marley. secretary; DR..
q. T.. Wright, superintendent of the
hospital. and S. p. Neidigh. the steward.
There were three bids, Mr.. Fsrrelfs com
pet;tors being the firms of Heely IL O'Brien
and Knight * Jillson. The law requires
the acquisitions for supplies to be fled In
the State-house and bids advertised for,
but there is no evidence that the pending
award was generally known among the
business men in a position to- bid for the
contract. There is apparently no evidence
that bids have for some months, even q
year or more past. been properly adver-
tised. A journal reporter discovered yes
terday, In inspecting the records OF the
steward at the Central hospital, that
at no time were there more than three
bidders. and these seem rather TO have
taken turn about in charging the State ex-
traordlnarily high prices for supplies for
the engineers department.. 1t has been
said that the Journal, in showing up the
higher cost OF maintenance OF the insane
in Indiana over Ohio, vas unfair. The
forthcoming report of Alexander Johnson.
secretary OF the State Board of Charities.
will show that the cost is higher. and the
Journal to-day contains an account point
ing out one avenue of extravaganza, which
Is inexcusable. If not criminally negligent,
upon the part of the MANAGEMENT of the
hospital. There are other sources
OF Extravaganza yet to be made
p prissd whe ao Mr. one Farrell Tas was m0 aSar snIi
tho August contract than Healy 81 OBrien.
They had been ENJOYING the big profits at
the list price rate. and did not want the
combination broken. The bids were offered
on a requisition duly approved by Superin-
tendent Wright, calling for about twenty
different article. The range of bid was as
follows:
j. S. Farrell &
Healy d O'Brien 530.93
Knight 81 Jfllson o23.lo
What struck the board as strange was
that j. s. Farrell q Co.'s bid should
be less than half the other two. as Its orig
inal figures were. A palpable mistake was
quoted on ]. 500 feet of inch biack-iron
pipe, and Mr.. Farrell was properly given
an opportunity to correct 1t and save him.
self from loss. This added s63 to his bid
on this item. making BIG, while Healy d
O'Brien's bid was S2l7.50, q difference of
S91.50. But, even with this increase, Far
rell & Co.'S bid was but little more than
half either of the other bids.
WANTED THEM TO
These facts and the award to Farrell &
CO.. had q disturbing effect upon Healy X
O'Brien. The Journal learned soon after
ward that this firm offered the successful
bidders 500. for the contract, but it
was refused. Then Healy & O'Brien, it
was said. offered Farrell * Co. 500 TO
withdraw their bid, and suggested that the
excus could be that the accepted bid had
been too low.
AJournal reporter soughtfMr. j. S. Farrell
and asked:
authorities were surprised. were they mott"
"Yes. L believe there was some such feel
ing
The bid was sent back to you to inquire
if you had not made a mistaken"
Eyes; | recall that my clerk said some
thing of the sort. The bid, however, was
satisfactory and stood as first made"
lis 1t true. MIR. Farrell. that Healy &
OfDrs.- forAA -. C1(0 f~~ %hn Aa-%-.Ata1
Now" said Mr.. Farrell with q smile of
SURPRISE. that is q matter that 1 do not
care to talk about. You know how 1t is
with a man in business"
will you say that the story about the
affair is not trne"
Il don't care 10 be quoted on that at ALL"
1t Is significant that no denial of the
story was offered In any way. shape or
form. MIR. FarrelPs answers tally with the
story which first reached the Journal. In
the light of the figures presented below,
the burden of credibllity 10 with the re-
port.
the money to pay for supplies is computed
and drawn must DO kept on file with the
Auditor of State. A reporter was detailed
TO make a copy of them and 10 submit them
to dealers in such supplies for estimates at
market rates. The discovery was made
that the charges in the vouchers, conform
ably to the bids. were made at the list
price rates, whereas q discount of as high
MS w poi CCubs Wdos III oOuo CdSco, uu6 10
the State. Private individuals making
such contracts in open business
competition would have been gwen
the advantage of such discounts.
Not SO the State, when buying
for its largest benevolent institution,
as long as it is run on O Democratic basis,
by an incompetent board. For instance,
in the vouchers for the July contract,
which was secured by knight & Jillson,
there appears an Item as follows:
July IL, 2.5SS 4-12 feet, / inch. extra
strong pine
A fair market price would be 60 per
cent. OIL, Z'S.4Z
Making the amount Of OBSERVATION-DISCLOSURES
The July bill for engineers supplies
amounted 70 S496.41. or nearly 500 in excess
of q fair market price. In this connection,
it IS just that the authority for the market
quotation should be reliable. The Journal
has taken great pains to learn what prices.
under legitimate and square competition,
would be. and guarantees that the articles
named in the vouchers can be bought at
the lower prices quoted.
THE AWARDS.
The awards and bids for the fiscal ye ar,
beginning November, 1891. were as fol-
lows:
November-Healy & O'Brien, at SI64.43.
January. 1S92-freany Brothers, at S34l. 25.
Other bidders were Healy * O,Brien. $346.41;