The Washington herald., 1908-05-27
@. P. O. is LOSER
BY AUDIT SYSTEM
Continued from Page one.

which was too low There were numerous In.
stances where recommendations BY The Audit sys-
TEN Tor the purchase Of deTices was followed b.
immediate orders to tho manufacturers. In many
cases Mr.. Raynor passed upon proposals Of other
bidders while himself a bidder. The Public Printer
laid himself open to serious criticism by tolersting
od by or purchase from The Audit System or
any allied concern.
Second.-Financss-Th books OF the Printing
ohieo were found to bo in a condition Of great
confusion. deficit was 20 be confronted Of ap-
Woximately $4,000. This deficit was partially due
70 eTTOneous estimates and partially TO lack Of
Judgment IN the conduct Of the establishment
and purchase OF supplies and especially 20 an un-
wise hberahty In the purchase Of plant.
ihird-Aethod Of Purchasing Supplies-From a
careful and systematic investigation Of this subject
By representatives Of various executive departments
working under Mr.. Rossiters supervision, these gen
temen asserted that there had been great ex-
travagnncc in the purchase OF furnishings and
equipment ot all kinda: that the purchase and
issue OF supplies had become complicated and
irregular; that many purchases had been made from
Tho Audit System without competition and often
at prices greater than charged By other companies
Tor similar material and that in many instances
larger quantities Of supplies were purchased than
were required The arrangement OF the facilities
OF the Printing ofhce for the maintenance Of
supplies and the disposal Of old material was Sc
yerely criticised. Securing especially designed frni-
ture. one order for which amounted 10 over $1,000
and the removal Of the pneumatic tubes were
severely condemned.
Fourth. Organization. Plant and Volume and
Cost OF Product-rhe organization Of the Govern
ment Printing Ofico remained economical and
simple until 1903 IN 1905 reorganization had re-
suited IN six grand divisions. sixty-sey officials
and tWenty-one PER diem employees. receiving at
least 500 per anntm Oflcals and clerks in the
administrative urnnch increased in number frm IS
July 1. 1905. 10 E3. January l. 1905 with cUmpcn-
saton Increased from $l26.O5s.a to S296.47lA
A Decided Loss,
Theoretically the total annual disbursements Of
the Printing onice should equal or approximate
the total value Of sales phis total expenditures for
plant For the period Of 100 10 1907. inclusive.
disbursements IN excess Of sales amounted % s. 9s2
N.a while expenditures for plant properly
chargeable % the years In question. approximated
SlOOO The difference Of almost $4,000 must
De regarded as the deficit aca1ling IN a money
losing plant, II was evident that since 1900 al
least Congress has been fncurring Tor the mainte-
nance of tho Government Printing Office an e1-
penditure Of approximately $4,000 a year over the
amount which the onioe has charged 20 its Gus
toners for product.
The Tropcrtion Of the total expenditure for
labor. formed by the compensation Of nonpro-
ductivs employes 40 computed for spccinci periods
was be per cent 10 1904. 1853 rsr cent IN 1905 and
% per cent IN 1907. Comparison % the last six
months Of l9G with the corresponding period for
1877 showed that the compensation of the produc-
tive foTcc decreased approximately $4,000 while
that Of the nOnpTuductiTe forUe increased apIru1i-
mately Slsi,ooo
Il is absolutely necessary 10 rearrnnse the rrices
charged for printing In the Government Printing
ONCE. taking into account the important factors
which appear never 10 have been considered re
sultmg rum the difference in the classes Of print
Ing produced IN the Office There should be a
special scale Of prices formulated for emergency
and Congressional work. and another which should
Dot be charged without due notice. for ordinary
departmental work resembling the product Of ordi-
nary Commercial Offices. The excessive and cratic
charges made under The Audit System procedure
were slspeuded by the Presidents order and A
temporary scale for composition appro1imating the
charge for similar work In Nov York and other
printing ccnters was established while the units
formerly in use Tor other items Of charge were
again ordered employed. pending m0ro detailed
Investigation
What Il Needed.
Fhh.-GeDeTal Aspects Of the Printing Orice
Probiem-CongTcEs should specify. either by a gen
lral Law o. IA each APPROPRIATED bill in which
provision Is made for the Printing Ofice. the
mount or proportion which may Dc expended BY
he Public Printer for plant The Public Printer
IS az present Wtrnmmeled: he may spend his en-
re appropriation wisely and frugally, or unwisely.
Is his temperament OF inclination may determine.
Attention was called 20 the problem presented By
he Office Of the superintendent Of documents. and
o the immense accumulation Of old Documents In
onclusion. Il was urged tLat the Public Printer
h0ud b responsible o. some supervisory autboritv
md that suCh authority uas most apurouri,ielv
ound in the Joint Committee on Irintiug az Con
'ress, which should exercise mHe direct CON
toi over tie policies Of the ofice and be regarded
ls the Public Printer as his boanl Of directors
The investigation conducted b the Presidents
Erection thus more than justified the action which
'ao oeen iaken ny the committee, and WIS fol-
owed by The resignation % the Public Printer
The Investigation Conducted bv the pra.iJerf'e
eIresentative and the testimony taken by the sub
oninitteo both before and after that iuvcstig7-
ion. proved conclusivcy that The Audit system
yas Permitted BY the Public Printer TO suggest
De Purchase Of various classes Of material. much
y which was obtained q The Audit System or from
ohcerns which they designated or under ALLEGED
onrctition In which they were the successful CON-
lciitors X was further shown that in AZ least
ne important instancs the material ur1n which
'ds were requested AZ the instance Of The Audit
'yS'em had actually been ordered by that Concern
q advance Of the invitation for proposals
A Good Customer.
Mr. RayuoT Was engaged in the Government
'riuting Oiice with seventeen eInploves He was
1Eanizing that oince. lie was suggesting various
ssignucntS Of its employees While II is true that
III The sales Of supplies by The Audit System and
Is allied concerns were not made 20 the Govern |
ient Printing Ofioe yet the Printing OfRce was
Is principal customer among the government estab-
shmeuts In the purchase Of supplies and many
the stationery supplies Of the executive dcrart
lenis are purchased through the Government Print
'g Othce. The significance Of this letter will be
eadIy understood. In its consideration the fact /
aOuld not be overlooked that Mr. Ravnur and his /
ssoeates were being compensated at the rate Of /
'oWy Der annum for installing a cost audit. and 4
1veutory system IN the Government Printing Onco /
ie testified that he personally receiving from
pc compensation above noted 500 per week In |
llary. II 50. the government was certainly en- /
tied 10 the full measure Of both his time and
llents
Mr.. Raynor has denied that The Audit System
as organized subsequent to the negotiation OF the
'ntract with the Public Printer. bat admits that
iis was the first and has been the only contract
altered into by that company for the installation
a cost, audit, or inventory system. The records
the Traders National Bank Of Washington ala, |
low that for more than three months after the
canning Of the work IN the Government Printing
nice the checks deposited 20 meet the payroll
counts were drawn b. the J. w. Pratt COMPANY.
hose manager Is the president Of The Audit sys.
IN. The first check Of this character issued by |
he Audit System appears in the records OF the
ank on January e. 1907
The influence Of Tho Audit System In the GOV. !
nment Printing ofice was evidently paramount
that Of any ofcial In the Office except the Public
rinter himself The order Of the Public Printer /
lder date Of May 8 1907 made II possible for he
npoyeS Of the system % displace any ernploye |
the Office who might have incurred their DIS
eastre. The effect Of this order upon 80 large a
)dy Of employees need not be dwelt upon
The supply division seems 70 have commanded
e especial interest Of The Audit System as shown
the records Of the committee in the proposed
heme OF reorganization Of the Office OF stipcrin
ndent OF supplies. the paper warehouse section
the supply division. and the material and qlpplv
ction Of the supply division. The proposed prr
mel OF these Offices is shown IN detail by papers
u in the desk Of Mr.. Mock the assistant general
anager. bearing notations in his handwriting.
Room for Scandal.
With the freest Interpretation Of the spirit Of the
", il we admit that The Audit System could
operly participate in the sale Of miscellaneous
pples 70 the Public Printer it would naturally
How that in these particular divisions II In no
her. ard suggestions from The Audit Svsfer, oe 10