The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1908-03-17


tedIy high reputation IN his calling. He
testified before the printing commission
that he systematized two printing Offices
in New York These We're the J. W
Pratt Company, a concern employing
about 50 persons. and the Winthrop Press
somewhat larger concern. employing
approximately 900 persons.
Between 1906 and 1905 three contracts. OF
articles Of agreement" were executed
by the Public Printer with The Audit
System. The first agreement. dated Sep
TENDER IS. 1906. provided for the installa-
ton OF a cost-accOunting system by The
Audit System concern. the consideration
being four groups Of weekly payments:
Per week
First period "A weeks s.
Second period % weeks o9l
Third period ~ weeks 81
Fourth peTicd ~ io
This contract thus required payment
by the government Of S34.s90. From the
statements made by the representatives
OF the more important accounting firms,
10 whom reference has heretofore been
made, il would appear that this sum was
sufficient for the installation of a com
plete and satisfactory cost system; and
this sum. Il viii be observed. is IN ex-
This contract became effective September
.. 1906. three days after signature. and
remained in force until June %, 1901.
Another Agreement.
April IS. 1907. another agreement was
executed between the Public Printer and
The Audit System covering the taking
of an inventory OF the entire establish
ment. For this undertaking the Public
Printer agreed TO pay The Audit System
81 go per week. This contract also ran
until June 30. 1907. BY July /. 1907, liabil-
tiles Of SIS. $50 for cost and inventory sys-
tens had been incurred
For an alleged inventory SI3.750 was
paid 10 The Audit System II must be-
remembered. however, that the inventory
contract was coexistent with the cost
accounting contract under which Mr-
RaynOr's services were being paid for by
and already belonged to, the government
Therefore. even had he himself prepared
an inventory, his personal services were
paid for dOubly from April i 20 June 80
1901.
/ am informed by Mr.. Donaldson. at
tOrney for The Audit System. that from
September. 1896. TO July. 1891. The Audit
System maintained ten persons al the
Government Printing Once. but that parl
Of the time one additional person was
connected with The Audit System force.
July ]. 1907. a second cost-accOuntins
contract OF agreement was executed be-
tween the Public Printer and The Audit
System, BY which, without time limit
except the power 10 terminate At one
weeks notice. the government agreed 4
pay The Audit System for the "neces-
sary expert service 10 continue the install
latiOn Of the cost. audit, and inventory
system in the Government Printing Of
fee" the sum OF $3.50 per week
Continue Operations.
1t appears to have been the purpose 81
The Audit System TO continue 10 operate
under this agreement until July = 1913
This intention was stated by Mr.. RaynoI
before the joint committee and 10 officials
OF the printing Office. The contract con-
tinued in force until the specified weeks
notice was given by the Presidents ordei
OF February s, by which payments Were
terminated February q, 1908. Under this
contract the sum of $3.50 CS463.0 paid
and $500 accrued but unpaid was ex-
pended. the total being: