The Washington herald., 1908-02-04

Conditions in the Government Printing
Office are closely akin to those discovered
in the Post-ofice Department a few
years ago, which resulted in criminal
prosecutions and convictions.
7 The Audit System. which is in the en-
( ploy Of the government. at cost Of sS.-
0G0 a year. 10 install a system-though it
never before systcmatzed the business Of
any big instItution-has been forced 10
admit its interest in contracts for Print
ing Office supplies. Indeed. before the
/ Congressional committee yesterday, the
admission was frankly made that The
Audit System Supplies Company was
formed for the purpose Of getting con
/ tracts for such supplies. The Suffolk Dis
trbuting Company. in which some Of the
shown 70 be so-has secured contracts,
Through ". a. Root. agent OF The Audit
! system, and its bids on contracts for
$4,000 Of white paper are now held up.
improper IN ali this, being clearly isu0-
rant OF the statutes covering such cases
Meanwhile report made 10 the Presi-
dent by Expert Haven1er shows that.
under the suIings regime, the cost Of
printing has increased enormously. IN
stead Of being administered economically,
I the Government Printing Ofics is to-day
operated more extravaganty. considering
the amount Of work done, than ever be-
fore in its history.
Finding Of Committee.
By the evidence of Frederick Alfred. of
Brooklyn, the joint Committee on Print
ling yesterday found conclusively that The
Audit System. Of which Mr.. Alfred said
he IS not only an incorDorator but also
an officer. and the Suffolk Distributing
Company while not the same cog Dora-
ton, OF directly allied, are sun connected .
through the person OF an officer.
According to the testimony Of 3Ir. Ale
fred, given under oath. he, with ". II.
/ IRaynor, vice president and general man
ager Of The Audit System; J. F. Handy,
an officer Of the J. ". Pratt Company, Of
New York and the president Of the suf-
folk Distributing Company formed The
Audit System. a New York corporation,
about four years ago.
Mr.. Alfred further testified that the
IonIy other contract which The Audit Sys-
! TEN had undertaken before It came to
Washington 10 install a cost, audit. and
inventory" system in the Government
Printing Office, was a similar Job in tho
Offices Of the J. ". Pratt Company, whers
The Audit System now makes its head
quarters.
Only One Contract.
This one contract, he testified. was
made and carried out before The Audit
System was incorporated. and cost the
Pratt Company 5000 It took one year
TO do this work for the J. W. Pratt Com
Ipany which employed at that time about
loo men. Afterward Mr.. Alfred and Mr..
Handy. who. il seemed. together with a
man named HaIsey. composed the J. u.
Pratt Company. decided that they had
better take Mr. Raynor. who then was
The Audit Company, IN with them. This
was done and the three men formed The
Audit System with capital stock OF
Is5oo30 which they later increased 10
S2o00O0
The various men who have appeared and
will appear seem 10 be classed about this
way:
Frederick Alfred, secretary and mans
lager Of the J. ". Pratt Company. which
has offices at q Duane street. also in
Icorporator and president OF The Audit
System and stockhoIder in its auxiliary
company. The AuGit System Supplies Com-
Ipany
J. F. Handy. president Of the Suffolk
Distributing Company president and
treasurer Of the J. W Pratt Company,
and secretary and treasurer OF The Audit
System, interested also in The Audit Sys-
TEN Supplies Company
W NJ Raynor. vice president OF The
Audit System, and interested in The
Audit System Supplies Company, also
at present in charge Of the cost work
at the Government Printing Office,
"OccasionaIy'' an Agent.
W A. Root. occasionally an agent for
the Suffolk Distributing Company, agent
for The Audit System, The Audit System
Supplies Company, the Wabash Cabinet
Company, the Pike Adding Machine
Company. and. perhaps. others that were
not mentioned yesterday.
Neither Mr. Handy, who had not
reached Washington n time for the hear
ing. nor Sir. Raynor. who was present.
were called 20 testify yesterday. Borh.
70 IS expected, VIII go upon the stand
to-day
The testimony Of these two men, It is
believed viii add materially TO the
knowledge Of the committee as 10 the
relations which seem to exist between
the many companies. which evidently be-
lieve that Duane street, New York, Is a
great place for business.
Concerning 80 Duane street. New York,
Air Alfred said when on the stand
that he believed the Offices Of the Suffolk
/ Distributing Company, Of which he said
he had but perfunctory knowledge
Continued on Page ?, Column 4,
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