The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1908-03-17
PLAYS AUDIT SYSTEM
Concern Cost Government
Sum Far Too Big.
RAYNOR CALLED THE SYSTEM
ROssifer Report BIames Queer Com
pany for Many ThIngs-COndemns
Purchase of Supplies from It-COst
Too Much by Far-Had, Appar-
emily, but One Real Object.

Not the least of the iaDors Of Mr.
Rossiter were those which dealt with
that strange creature, The Audit sys-
tenn. The System IS subjected in the
report to much criticism, not only for
It's apparent relations with Government
Printing Office contracts, but for the
failure Of its own cost and inventory
system.
Raynor manager Of the system in
the Government Printing Once, is
shown to have been. for all intents, the
head Of the big print shop, and the man
to whom all had 10 bow.
The enormous cost OF the system.
which was not warranted. nor in pro-
portion To that which might be consid-
cred just for the installation Of any
sort Of audit system, also comes in for
severe censure.
Inquiry by correspondence. saws
the report. concerning the actual
expense OF installing cost systems
in large commercial plants devel-
oped the fact that an important steel
company in Pennsylvania expended $1,000
Tor systematizing a large share of their
cost accounting. A large brass foundry
in New England paid 5000 for the in
sjallation OF a cost system, and expends
POSSIBLY $500 per annum for blanks.
A large corporation in Connecticut. en-
gagged in the manufacture Of silverware,
setting intelligent employees Of their own
at work upon the problem Of cost anal
ysis under the supervision Of profess
sional experts, state that during nearly
a year they have paid the latter approx
mately 5000 and have yet to make some
further but moderate expenditures. other
important concerns have replied IN Ike
tone 10 my inquiries
In addition to making inquiry By a rep
resentative dispatched 10 New York. and
by letter, / have personally conferred
with the principal member Of one OF the
most important firms OF public account
ants In this country, who has Just COM
pleted extensive work for the govern
ment In his opinion. the cost account
ing problem in the Government Printing
ONCE should have been successfully han
died for approximately $4,000. Urged 10
make the most liberal figure which Pc
culiar conditions in the government serv-
Ice might make necessary. he would not
exceed $4,000. Subsequently. after in
specting the Government Printing Office,
he stated that he would not hesitate 70
accept a contract TO systematic the es-
Enlistment for S25000.
Would Not Permit IL.
He informed me that under no condi-
ton would he have permitted the pur-
chase Of dollars worth Of material
through his concern. or have recon-
mended any one from whom to make
purchases. except upon express condition
that other bids would be obtained. in
order to protect himself from any charge
OF self-interest. I've expressed surprise
that the official head Of an Office would
be willing 10 permit purchases. many Of
them without bids, from a concern whose
self-interest was obviously involved
Al the request OF the Public Printer the
following clause was inserted in the sun
dry civil appropriation bill for 1906:
For the purchase and installation Of. and instrrc-
ton in cost. audit and inventory sgstems. stat
l.. vol -, II. !. np I5s and l36hl
After comforting with at least one other
firm Of systemauZers. the Public Printer
closed a contract with a concern known
as the Audit System" a partnership
which was incorporated later, April I3,
1907, under the laws of the State Of New
York, with a capital OF $4,000. The Off
GERS are said TO be Frederick Alfred.
president: W NJ Raynor. vice president
and general manager. and J. f Handy.
secretary and treasurer. This concern
has nominal Offices with the printing
house Of the J. W. Pratt Company, 50
Duane street, New York City.
Familiar with Plants.
The Public Printer states that he Sc
lected The Audit System because Of its
familiarity with printing plants. I have
not been able to ascertain that Mr.. Ray
nor had previously acquired an admit