The San Francisco call., 1899-07-23
THE MERCHANTS
URGE THE CITY
To ECONOM|zE
They Outline a Money
Saving Plan.
CONDEMN ANNUAL CONTRACTS
WHY GRAFTERs GET MUNICH
PAL BUSINESS.
Association Advises the Supervisors
to Buy Fire Department Sup
plies in the Open Market.
on Monthly Estimates.

The Merchants Association has sub
mitted to the Board of Supervisors a
plan of procedure to be followed by the
city in purchasing supplies for the Fire
Department. 1t is a plan laid down
along solid business lines and on the
same business principles which the
hard-headed members of the assOc1a-
ton have rigidly adhered to in build
ing up their own successful concerns
1t does away entirely with the present
ilI-conditioned and eXtraVagant method
and instead of yearly schedules and
contracts suggests monthly statements
and an open field for all reputable mer-
chants.
The communication accompanying
the plan, which was filed yesterday
criticizes severely every detail of the
system now in vogue. 1t points out the
fnnumerable weak spots and tells
pOintedly why it is that scarcely one
reputab BILE merchant in the city will do
business with the municipality. AS an
explanation of why city business has
fallen into the hands of grafterS and
brokers. who get from two to six prices
for everything ordered, 1t is complete
and thorough.
pended:
First-We find that it is impractic93bIIe
and inadvisa6le to prepare a Sc6sdqle lie
the Fire Department during the year.
Second-We believe that ii is not ad-
visable to advertise for bids and contract
for SUPPLIES for as long time as one year.
Third-We believe, after considering the
question thoroughly and giving due
weight to the troubles which have arisen
over this matter heretofore, that the en-
tire system of purchasing supplies in
vogue at the present time is unbUsiness-
like is not economical ana Is opposed to
the public interest.
In support of these conclusions we beg
to call the attention Of your honorable
board to the following facts:
First-The schedules as heretofore sub
mitted for bids do not specify in any way
the probable quantity required of each
many of these articles the quantity re-
ouired TO a great extent determines the
price To ask firm to bid inteligently
for an article when it is not known
whether there will be required a gross or
only half a dozen is to ask an impossible
ty and the city undoubtedly suffers from
such a method.
Second-The contracts at present not
only call for an indefinite quantity but
also require the successtul bidders to fur-
nish the articles at a specified price at
any time during a years time. 1t is well
known that the cost of many goods. par
ticularly in the hardware line, varies
greatly during years time. A price
which may be perfectly fair now may be
very much too high or too low in six
months from now, according to the chang
ing conditions of the market. The result
is that dealers, in order to protect them
selves from loss, are compelled to bid
higher prices than the articles are worth
at that time. which is unfair to the city.
Third-The uncertainty of securing pay
ment for goods supplied. In the past mer-
chants have in several instances lost
heavily on the city because orders were
given for which no funds were available.
At other times payment has been unduly
withheld for trifling errors or apparent
difference in prices. Merchants know OF
these facts but do not always understand
the reasons and cannot afford to give sut-
soil Tir11a tn re-
treasury or the technical question fn-
volved Hence many merchants refrain
entirely from competing for any. business
done with the municipality, while II the
ordering for the city were properly done
the city should enjoy the best of credit
and command the lowest prices