The Washington herald., 1908-05-27

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sistants but one came from New York The con
tracts with the Public Printer stipulated expert
service" Careful inquiry into their past employ
ments, aside from the testimony taken by the con-
mittee. fails TO discover one. unless Mr. RaJnol
himself. who possesses any experience worthJ o
/ consideration IN connection with the problems o
! cost accounting The entire force appears % have
been hastily gathered from occupations other thar
eost-sccounting, and organized subsequent 70 the
date OF The first contract IL Is a matter OF aston
ishment TO the committee that any responsible
Official Of the government could have tolerated the
presence Of persons ~ equipped for the task tc
which they were appointed
Direct TO the G.. p. o.
| BY the testimony Of both the president and the
secretary Of TIE ]. W. Pratt Company Mr. RaynOr
With four assistants. was engaged for more than
one year in the installation Of a cost and audit
system In that establishment. FOR a total compen-
sation Of 5000 Mr. Raynor testified that he came
directly from that employment 70 the Government
Printing Office
The testimony Of Mr.. Rayn0r, when first on the
/ stand. was that among those employed for the ex-
pert service at the Government Printing Ohce we're
one man az $50 per week. at $50 per week.
ono az 20 per week, and one az so Der week
lie stated that the remaining employees received S5
/ Ter week each. Miss Cook who was IN charge Of
! the payroll. testified that she took Mr. Rayuor's s
| check for The amount Of the payroll 10 the bank
weekly cashed II. and paid the exact amount Of
! the check %
Mr.. II. o. Thompson twho was subpoenaed by
| the coumissionl. formerly paving teller Of the
Traders National Bank on which these checks were
drawn. testified from the records Of the bank that
'hese weekly payroll checks during the first forty
weeks OF the contract. amounted 70 50 sos OF an
average OF S3l.@ Per week According 10 Mr.
haynors statement. uhis would have left an aTc-age
OF S6265 for the remainder Of his employees who.
according 20 his testimony were each receiving So
per week During the remainder Of bis ser1ce.
II we assume that all the money drawn on these
checks entered the payroll. this statement would be
Approximately correct bat these checks. under the
most favorable showing. contradict both the state
ments o. Miss Cook and Mr. Handy. tho secretary
and treasurer Of the company. Miss Cook testified
that the weekly payroll varied from 500 70 $50
Icr week; Mr. Handy testified that it was about
lOoO per week. The checks show that II averaged
during the first forty weeks, SZnG5, and during the
remaining thiry-two weeks S9L4. During the
rrst-named period the average compensation 20 The
Audit System was 2.a0 .er week and during the
remaining time 1t was sl650 Der week
Fast Growing Rich.
Mr.. Rayuor testified that he was receiving in
salary at the Government Printing Oflce 500 per
week, in addition 20 his share as a stockholder Of
nch profits as accrued 70 the company. Investi-
cation shows that Of the Sl02ZO accruing to The
Audit System not cEceeding $500 was paid out
for wages; the profits. therefore. must have ap-
Iroximatcd $1,000. Il thus evident that tnere
was every Incentive for The Audit System 20 pro
long the work IA the Printing Ofiee. rather than
20 complete h promptly. and u appears 10 have
been their expectation 10 continue their work al
least until the close OF ne present hscsl year.
when authority Tor further payments would have
expired
No information which the committes has teen
able 20 secure has furnished a precedent for such
an enounO1s expenditure for the installation Of a
cost-kccuiug system Mr.. Raynor himself. when
questioned was utterly unable % justify his charges
by any precedent. and fell back upon the bare
assertion that bis particular system Of cost ac-
counting was the only system adapted % the print
mg Industry. The fact remains that much q u
has been found utterly ulslited 20 the great Office
an which be was paid 50 eItmmmntly 70 install H.
and that only two establishments In the neld Of
private cuterlriso have ayaiied themselves Of lis
Advantages Neither Of these is noted for the
magnitude q its operations Cost accounting sys-
tens bayc been installed In manufacturing con
Germs whose operations are far more C0mrlex from
a cost accounting standpoint. than those ot any
printing establishment and the variety Of whose
operations is infinitely greater and the number Of
employees much larger. az COS, which Is but a
small part Of the total outlay made 70 The AUDIT
System.
While it should Le admitted that The dste71nina-
ton of the justicD Of a claim Of this character
aEAinst the G0rUmmont Printing 0nico Is M
maTily within the province Of the Public Printer.
and that his payments 20 The Audit System may
have been and doubtless regular, IN the opin-
slttNJ
paid has not been Justly earned according 10 the
terms Of the contract requiring expert service
Expert Service Questioned.
Whether the services rendered by The Audit Syz-
TEN TO the Government Printing Ofhce were expert
services within the meaning Of the contract is 4
matter Of opinion. which. By approving the ac-
eouuts a. they were presented, decided by the
then Public Printer in the affirmative. In the
opinion Of tho subcommittee. the -eTyices which
were rendered In connection with an alleged IN
TeutOry. rendered at all were not u1pert S,rT-
iccs, as required under the Contract and the
services which have been rendered in connection
With the outstanding indebtedness Of s 200 were
not expert services. The subc1mmittce Is there
fore of the opinion that the payment Of the s. 700
should not Dc approved.
In conclusion. the subcommittee desires 10 call
attention % the results Of this investigation and
tc make certain recommendations which in their
opinion, are o. much C0usc1uoncg IN connection
With the printing opcTotons of the go1cTument
flrst-InvestiUtton by this committee revealed
an unfortunate state Of afairs in connection with
tho organization and the purchases Of the Govern
ment Printing Ofice and resulted IN a recon-
mendat!on 20 The President Tor the suspension OF
the Public Printer
Sccond-Upon the strength Of this rccummenda-
uOn. the President suspended the Public Printer
who subsequently, resigned his position The action
taken hy the President at the instance OF this
committee effected a saving OF nearly so 0o
through the termination Of The Audit system con
tract, which otherwise would have been wsstefuly
expended.
Third-The subcommittee. directly and through
the Presidents representative has investigated the
relation OF The Audit System and allied cyrnpauies
with the Public Printer. the Government Printing
once, and the purchase OF SUPPLIES Although no
evidence Of fraud or positive WrUnedOing on the
part Of the Public Printer developed the facts
secured indicated great lsxity in the procedure Of
The, Printing Ofice In relation % the purchase Of
supplies, particularly purchases in which The Audit
system was interested and justify severe criticism
In several important particulars
The subcommittee has declined % receive bids
from companies allied with the persons operating
under the contract terminated as indicated in the
preceding Tangr1phS
Public Printer Rules.
Under the present language Of APPROPRIATION acts
there IS nothing to prevent the Public Printer e1-
pending for machinery or for ans item authorized
in his appropriation all Of the appropriation au-
thorized for other purposes. There Is no restrain,
IN the law or in the Appropriation act TO prevent |
the Public Printer from binding the government
Tor every dollar Of his appropriation under a con
tract for machinery. for any other item wise or
inwise, which he may see ht to purchase If spec-
ied in his appropriation.
No special legislation is necessary 10 corrpct this
discrepancy between estimates and expenditures
The Public Printer Is required by law 70 report 20
Congress the estimated needs Of his Office and a !
mere limitation in the framing Of future apIuo. /
TrAiions with reference % the more important /
tens viii prevent recurrence Of the conditions /
above noted
The subcommittee earnestly recommends that such /
limitations be introduced in each appropriation bill
lro7iding for the annual requirements Of the Gov
'rnmcnt Printing Office will prevent expcndi- 4
ures exceeding the estimates submitted By the
Public Printer.
The Government Printing Oflce Is In a large
enSe. Congressional establishment. and is likely
% 50 remain. The law requires that il be admin
stored by a practical printer who. by the very
lnure Of his calling win have denied himself the
lroadCr experience 30 important in the admins.
ration Of great public Trust.
There are committed to his care appropriations
lmost as large those granted the great De