New-York tribune., 1912-01-18
Business Methods.

In every case where technical prOrc-N"t
have been studied 10 has been dcWon1'rh'''
beyond question that large economies H'dS
b. Effected Tn" subjects FIRST appfpa'U'i
were those which lie clos" iu oacu d'il'h-
istrator viz office practices An llIustid-
ton of the possibilities WITHIN l1is h.l"
NAV be- found lu tI" results "I the lh4Hlih
into the 'hOd- of handling ana ullhE
. ,nIr.spoutcne, Every uflC' iu iN" gov
crnncut has reported its methods To- th"
commission Thes" reports brought :" HGh'
the fact that present methods W'I" Iu'''
the reverse OF uniform. Som" offices tniiO"
the practice OF bricfing all correspondence,
some do not Some have fiat filcs, others
fold an papers before filing. Some US"
press copies. ether retain only carbon
The reports also show not only very
wide range in the methods of doing TINS
COfupaTatiycly simple part O' tho govern
rueui business but an extraordinary raUg,
iu cost For the handling Of incoming mall
the averages ~ cost 10y departments vary
from g. u 90 Ski ~ q l"n. FoI the handling
Of outgoing mail 10" averages hE depart
ments vary from g. 9l 10 So ~ q I.OOp This
does not include the cost ~ preparation.
but is confined merely to the physical sid"
OF the work. The variations between in
lividual Offices is many times greater than
that shown for averages bN departments.
II Is at once evident either that % g.
costing some Of tn" Offices too little or that
others are being run at an uuvaTrauted
EXPENSE Nor are these variations pN-
planned b. differences IN character of work
For example. There are TWO departments
which handle practically In" same Kind OF
business and In very large volume The
average cost OF handling incoming mail 20
one was found 10 b" over six times as
great as the cost Of handling incoming mail
TO the other. Excluding the cost Of pre-
paration the average cost 1000 for out
going mail 90 one was nearly 80 per cent
greater than that for the other
II has been found that differences OF
average cost by departments closely follow
differences in method and that the great
est cost is found IN the department Whcrr
the method Is most involved. Another fact
IS Of interest, VIZ. that in the two depart
mcnts above referred 10. which show the
lowest averages. orders have been issued
which VIII lead to large savings without
impairinR efficiency. II cannot be- said what
he saving ultimately will be when the
attention OF officers I'm all Of tho depart
ments has been focused on present meth
DDS with q view TO changing them IN such
manner as 10 rcduC" cost To the lowest
point compatible with efficient service II.
however must be considerable percent
| age OF nearly SioI0,@D, the total estimated
cos. Of handling this par, Of IN" govern
mont business At Washington
Results have already been obtained which
are noteworthy. Mention has been made
| OF the orders issued by two departments
! or these tn" order OF one is most rcyOlu-
| tionary in character. since II requires fiat
! sling. whore before all correspondence was
| folded; tn" doing away with lettcTprcss
copies, and the disCOntiauauCr OF iudOrSc-
L
processes and one which in the other de-
partment has been carried to very great
! length.
Lack Of Specifications.
The Importance OF esta blishing and main
! tanning standard specifications H. found
! not only In the possibility Of very ma
! terally reducing the direct cost Of govern
/ ment trading. hut also I'm insulting TO the
service materials. supplies and equipment
| which are better adapted TO its purposes
| one Of the results Of indehniteness Of spcci-
| hcatiOns is 10 impose contract conditions
| which make ii extra hazardous for persons
| to enter into ContraCtural relations. This
/ not only depriyes the government of ~"
| advantage Of broad competition. but causes
/ II 80 pay an added margin I'm price to
vendors who must carry tho risk The
! specifications which may have been worked
out IN one department usually differ from
J specifications for same article TO be used
/ I'm another department Much progress
| has been made toward improving this con-
| ditiOn through the schedules Of the Gen
/ eraI Supply Committee. hut there are many
| classes Of supplies not on these lists which
! may be standardized and the articles
which are there listed may be specified
! with eXactnesS.
| In connection with standard specifica-
! tions for purchasing. the subject Of 4
| standard form Of contract has been given
| consideration. No one form or small mum
| her OF forms will be applicable to al tie
| agreements into which the government
! enters There can be standard conditions
| and provisions for such contracts. however
and the work i'm this connection II being
| nrosecuted in an effort 10 simplify tie
! forms OF contracts and TO do away wfth
| The great diversity OF requirements which
on en- perplex and irritate those who
wish 10 enter into contract with the gov
| crnment.
Accounting and Reporting.
| Tn my message OF March 3. 1911. atten-
| ZION was called TO some of the defects in
| the present methods OF accounting and re-
! porting. ! SAID:
| .The condition under which legislators
and administrators. both past and present,
| have been working may be summarized as
| SolIows: There have been no adequate
leans provided whereby either the Presi-
dant or his advisers may act with intelll-
| aence on current business before them
| shere has been no means or getting
| nrompt, accurate and correct information
| ". so results obtained, there have
haan practically no accounts showing what
| tbe Government owns. and only partial
| rnnresentation OF what IL owes: appropri-
! a,ions have been over encountered with
| ont tbe facts being known; officers Of gov
ornrent have mad no regular or system
e,in method Of having brought 10 their
! attention the costs OF governmental ad-
| a,t,istration, operation and maintenance.
/ ~ ,bsrefOre could not Judge as 10 econ