The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-08-05
RICE PROFITS
BY PURCHASE
OF SUPPLIES
CONTINUED from First Paee.)

-
1t just cast up your accounts?" asked
Mr.. Backes.
1T was thorough"
He said he did not think his books
had ever been audited before.
Mr.. Backes-then went into the mat
ter of the cost of maintenance for each
patient. Warden Hayes said each
county was charged 81 per week.
1t was brought out that clothing is sold
the patients for a slight advance over the
price paid by Hayes. The total amount
of advance a year Is about s., 900 yearly,
which is equal to less than 81 a patient.
Mr.. Backes got out a mass of testimony
which showed Hayes buys from merchants,
who, Hayes says. gives him the lowest
price. It was developed that practically
all supplies are bought from retail mer-
chants. Clothing is bought from the Rice
Clothing Company and shoes from Fluid
Brothers. Joseph Rice, one of the man.
ayers of the hospital, is interested In the
Rice Clothing Company, md one Of the
fluids is a son-in-law Of Joseph Rice.
Insurance matters at the asylum were
taken from Hayes's jurisdiction last fall
because of a decision to rearrange insur-
ance. Practically all of the insurance is
placed through the Standard Insurance
Company. of Trenton.
Hayes was asked why he buys from
Rice and Fuld. He replied that the prices
he gets from these firms are as low as he
can get from any wholesale firm, and that
the quality of goods obtained is excellent.
He claimed that Mr.. Rice has always
told him If he could get shoes cheaper
from anyone else than the Fuld Brothers
that he should buy from other parties.
Meat are purchased from local dealers.
Counsel Backes insisted on being told why
H. - I----1 =
to the INDECENT patients. and he replied
that the repairs to clothing cost about
$1,000 a year, and that charges are only
made for repairing when they are extern
sive. This only brings In 1900 each year.
The $1,00O profit helps to pay for the re-
pairs. That was the object of charging a
profit.
What is your charge for private pa
tients?"
Five dollars to ten dollars a week"
HAYES insisted that the only reason he
purchased clothing from the Rice Clothing
Company. Field and Siegel. was that they
had given satisfaction. He added that
Mr.. Rice. of the board Of managers, had
told him to buy elsewhere If he could
purchase cheaper.
Mr.. Backes then referred to a private
patient, w H. Gratz. of Ocean County.
and showed that GRATIS people were
charged $40 a week.
rs there any reason why the Ocean
County authorities should charge SIS a
week?"
mo. there is not"
Counsel Backes then went into the mat
ter of having patients in droves on the
public highway. Mr.. Hayes said 1t was
considered that the patients did not get
enough exercise on the grounds, although
Mr.. Backes showed that there was 2OS
acres of and within the hospital enclosure.
Cornelius S. Hoffman, one of the manag-
ers, was then called, and said he had no
recollection of the warden's accounts hav-
ing been audited.
Since last Tuesday," he said, "a COM
plete system of auditing has been adopted,
comparing bills with vouchers
"Oh, then, this committee has done some
good in your department" commented Mr..
Backes.
Mr.. Hoffman insisted that competitive
bidding for supplies would not be an i'm
provement over the present system. He
said he did not know that Lewis A. Field
and Abe Siegel were sons-in-law of Mr..
Rice.
j. Bayard Kirkpatrick, of New Bruins
wick, was then called and examined to
the placing Of the insurance on the build
ings. Mr.. Kirkpatrick said this matter
was in the hands of Warden Hayes.
At this point adjournment was taken to
2 o'clock.
The committee is going to the hospital.