Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-04-11
price of brooms manufactured and the

ne IoSr III running the DflSDfl Tor
Dec l, 1911 to Dec l. 1912. as per the
report of Warden Wiggin amounted to
S43S1.27. These discounts in taking ac-
count of stock February. 1911 added
to the poor bills and deficiency in val
ues amount TO $2s,419.S0. You will no
tice that the total net resources, Nov.
50. 1910. at the. time Warden Wiggin
took charge We're $97.642.3i. The last
net balance, March, 1913. $5S.339.79.
thus showing a deficiency of 500, 3O2. no.
from this we should deduct the amount
of S23,419.3o stated above, which still
leaves deficiency of $1a,SS3.25.
We do not approve the method of
taking account of stock at the
institution. The parties i'm charge
stated to us that there was no way of
eertainng the cost of the several ar
tieles manufactured. that the usual sys-
TEN of taking account was to take
them at the selling price instead OF mt
what it cost to manufacture, thereby al
lowing the fun value ana making no al
loWance for the expense of selling. You
can readily see that any warden who
takes charge of this institution by man.
utacturing large quantities of wagons.
sleghs. brooms. furniture, etc, can show
that the institution is run al a profit re-
gardless of the fact that no goods of any
quantity are sold, that his successor will
be obliged TO work Year To sell this
old stock and have to make discounts
amounting probably to thousands of dol
lars besides the expense of selling. We
consider this method is wrong. there
should be way of figuring the cost of
each article and when stock is taken, it
should be figured at cost and not at the
selling price Then any warden would
receive credit for what had been sold.
We Were notified April fifth that the firm
OF Lewis a. Brown < Co.. pf Boston,
who owed the State S25I4.f3. had failed
and settled up as bankrupt and that
not one dollar of this is available. there
by cutting the bills receivable down to
SIS, l63 10 and the total net resources to
So. 76514 We see but one way to explain
this shortage of So, 96l52. 1t has cost
part of this amount TO run the Prison
more than the prisoners have earned and
the difference in value between that fixed
by the officials that have taken this stock
March {, 1913, and those who made the
value at the time Warden Wiggin took
! charge, February, 1911. Your committee
has no way of aseertaining this fact as
| there seems TO be no record of the values
set at That time. February 1911. We can
| not state that these differences will cover
this amount. Warden Wiggin stated TO
us that he had sales book at the pris-
on, mat he kept a fun account of every
thing sold The parties AZ The Prison
| when we were there stated there was no
sales book found. We recommend that
the same be examined if found and as
certain if the goods sold from Dee. /,
4Y,. IL
taken on the later date will agree after
adding the sales less the purchases.
The members of the committee feel
certain that it will be impossible to con-
duet the Prison proftably or economi-
eally without an appropriation for the
payment of the outstanding bills Many
| of these accounts are long overdue and
for the credit of the State they should
be paid at once. The warden is writing
letters of apology to creditors who are
asking for their money. The manufac-
tured goods on hand can not be sold al
present for enough to meet them and all
of the current income will be needed for
the current expenses. To get the best
results from the operation of the Prison.
the warden should have sufficient funds
constantly on hand to buy all supplies
and stock for cash, thus securing the
trade discounts allowed on cash pur-
chases He should also be able to take
advantage of the market and TO buy in
sufficient quantities TO obtain the lowest
prices. In the harness department alone
purchases amounting to $14,00000 have
| been made in two months and discount
| of per cent. for cash on all purchases
, in all departments would effect saving
/ equal to the salaries OF two or more OF
! the subordinate officials of the Prison.
But cash purchases can not properly be
| made until overdue accounts are PAID.
| With less than $4,000 on hand and near
" S22OO0.00 of unpaid bills outstanding,
| on part of which interest at the rate OF
6 per cent. is being paid, it is evident
that the warden can not possibly pur-
| chase supplies for cash and at the same
| time extinguish this Indebtedness, from
| current income.
1t has apparently never been 1.-THE poncy
| of the State to insure it's Prison property
and no insurance is carried on any Oh
the buildings or contents.
Recommendations.
We approve of the employment or an
| expert accountant to provide an I'M
! proved and comprehensive system OF ac-
| counting for the Prison.
! We advise the purchase of safe Tor
| the Prison office, to provide proper pro-
| lection for the books and papers OF the
| institution.
We recommend the appropriation OF
s20000.O0 by a deficiency resolve TO pro-
vide for payment of the OUTSTANDING
| debts of the prison, which sneuiu pe
| passed as an emergency measure so oiia'
the amount will be Immediately aVali
able.
Il We believe that the term OF the warren
| should expire on dehnlte oate, "nen
the assets of the Prison should be de-
! ,i,,ar.d n his successor and receipted
! for.
) Wa suggest to the Governor and Coun-