The Washington herald., 1908-05-27

THE subcommittee has been un-
able 10 discover any service rem
dered by The Audit System under
the contract worthy of serious con-
siderutiOn, or any outlay or expen-
citure 90 the extent Of n single dol
lar for the expert service necessary
10 take complete inventory, nnn-
Officially arranged OF the entire
plant Of the Government Printing
Ofiice,' as stipulated In the con-
fract.D
IN these words the Printing Investiea-
ton Commission, which submitted its re-
port to Congress yesterday. sets its seal
of approval upon the assertions long ago
made in The Washington Herald that the
dOings Of the odd Audit System in the big
printery were. to say the least, strange.
Analysis o. Work.
The report Of the commission covers.
with an appendix, eighteen printed pages.
1t is devoted to an analysis Of the work
Of The Audit System in the printery; the
relations existing between that system
and other concerns which were doing. or
which sought to do. supply business
with the Government Printing Office. and
uncovers other angles Of the whole tangle
which resulted some weeks ago in the
resignation OF Charles a. StIlings from
the Office Of Public Printer.
While the sum Of $3.50 for the work Of
taking "an analytical inventory" Of the
printery has been already paid bv the
Comptroller Of the Treasury. It is now
conceded possible that steps will be taken
to have this money returned IN view OF
the finding quoted above
The sum OF $500 which has not been
paid TO The Audit System for such work.
but which. under the contract, seems to
have been due. will not be paid az all. and
II The Audit System wants 10 get # the
opportunity OF proving services rendered
may be had by referring the matter to the
Court Of Claims
Not Expert Services.
The report in referring to this $500 saws
the following:
Whether the services rendered BY The Audit svS-
TEN % the Government Printing Offcr urrre errc-t
services within the meaning Of the contract is a
matter Of opinion. which. by approving the ac-
counts as they were presented was decided bv the
tnen Public Printer IN the Affirmative In the otdnon
OF the subcommittee. the services which were rem
dered In connection with an ALLEGED inyeutO-v n
rendered At al- were not expert services as re-
Quired under the contract, and the se-Tices which
nave been rendered IN connection with the ont
standing Indebtedness Of 100 were not exuert
serrices The subcommittee is therefore Of he
opinion that the payment Of the $500 should not
be approved.
The whole Of the report is interesting.
Excerpts from it are not devoid of light
upon situation which was 10 some ex-
tent Illuminated by The Washington Her
aid before the real investigation was com
menced
The Suffolk Company.
On January 2 1906 there was submitted to the
Joint Committee on Printing prorosaI bv +bs
Suffolk Distributing Company a corporation claim
ing Offices al II Duane street New York citv IN
supply TO the Government Printing Office certain
ledger Tapers, bond Papers and other supplies FOR
the public printing and binding. The Suffolk Dis
uihuting Company the lowest bidder on items
approxmating S5.0Oo and tie bidder on other items
slightly exceeding this amount. in all more than
Representations having been made 10 members Of
the JOINT Committee that the officers Of the said
Suffolk Distributing Company were also officers of
The Audit system, a company az that time en-
NN.
veutory system In the Government Printing Of5ce
the subeomnpittee Of the Printing Inrestirrtio1
Commission was directed 20 inquire into and report
upon the prUpTiety OF entertaining proposals from
this company.
The Audit System. on the date Of its iryt con-
tract, was not incorporated. but was as nearly as
can be learned. composed Of James r. HandT
Frederick Alfred. and Wilet NJ Raynor On IA
date Of the second contract articles Of inooruor,-
tion were fled IN the Office Of the clerk OF suffolk
County at Riverhead. y Y, and in the 'ofRce of
the Secretary Of State. at Albany. y Y Tha
inquiry revealed the presence Of certain other cor
porations which were closely allied 70 The Audit
System. The records Of the county clerk OF Suf-
folk County show the following:
Audit System-lncorporatcd April IS 1907: raid
up capital. $780, authorized carital SO 600 Di-
rectors. Frederick Alfred. IS shares; James T.
Handy. share; Willet N. RayncT share
Suffolk Distributing Company-Incorporated Feb
mary Il. l9Fi paid mp capital. $500: authorized
capital. 5000. Directors James F. HANDY ss
shares William H. Manchester. I share. Sbcron II
Sammis / share.
The J. w Pratt Company-Incorp0rated Decem-
Der Il. 1901; paid up capital. $500: authorized
capital. 500 900. Directors James F. Handy g
shares Frederick Halstead. / share. Frederick
Alfred SHARE Jane ". Pmtt. I share
Audit System Supplies cognpany-inooTpuTatrd
December T. 1907; paid up capital. 500; author
lied capital. $1,000 Directors Frederick Alfred.
z shares; James F. Handy. z shares Wilet NJ
Raynor % shares
First.-The Audit System-The attempt Of the
Public Printer 70 establish cost and inventory
system in the Government Printing Ofice resulted
in expenditure Of Sf50 and liabilities Of
500 without accomplishing rcsilts which could
be regarded commensurate with the expenditure.
Inquiry Of concerns regarded as leaders in this
class Of work showed conclusivey that exreniiturs
for establishing a cost and inventory system should
not have exceeded $500 and probably would not
have reached that sum.
Cost of Installation
The actual cost Of installing The audit-cost sy,-
tenn. including an alleged inventory and such ac.
cessory expenses as be clearly attributed to Ths
Audit System OperutiOns was SIS llO In ordes
10 a1alyZ0 and make effective the cost returns
secured by this system an annual outlay Of nearls
$1,000 is required. resulting in an expenditure fos
al classes q clerical assistance of $f7 3oo4 com.
pared with expenditure q Sl523s covering SINH
lar work under the old system-a figure however
Continued on Page II, Column 3.