Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-04-24
GREAT SUMS TO Be
SAVED FOR CITY
Proposal to CentraIize Pur-
chases by Departments
Through Buying Agent.

In line with its general policy of
economy. the Board of Works today
took under consideration plan by
which the city may be able to save
thousands of dollars yearly in the
purchase of supplies. Under the sys-
tenn now in vogue. which is admitted
to be antiquated, each department
purchases Its own supplies. prospect
i've of whether another department
may have in hand the goods needed.
AS explained by Commissioner
Charles F. Kraemer. this plan is
costly to the city, inasmuch as goods
are purchased upon numerous con-
tracts and at varying unit prices.
The board expends approximately
$1,000,000 yearly for supplies. In many
instances it is found that one depart
ment can purchase an article cheaper
than can another.
He Plans Capitalization.
Commissioner Kraemers plan is to
centralize the purchase of all supplies.
He suggests the appointment of
purchasing agent, who shall be in
charge Of general storehouse, in
which supplies may be stored until
needed by the various departments,
similar plan to that suggested aby
Commissioner Kraemer is in opera
ton in all of the great corporations
and railroads throughout the country.
1t is likely that some action will be
taken on the proposition next week =
In the purchase of supplies by the
various departm of this board"
Commissioner Kraemer said, there is
undoubtedly considerable loss in the
aggregate. No central records are
maintained showing the purchase of
supplies bought by the various de-
partments. In this respect each de-
partment is a law unto itself There
is absolutely no way of making the
experience ond knowledge acquired
by the head of one department of
practical value to that of another
One of the fundamental laws of
supply and demand recognized and
adopted in every modern purchasing
system is that the larger the quantity
purchased the lower the price. This
law is ignored by the board through
It's method of dividing the gross sup
ply needed into small quantities re-
CURED, with result that we are buy
ing at retail more than 81 100000 an
nually, which we should purchase at
wholesale prices or even less.
One Agent Should Buy.
THE plan that would suggest is
the Capitalization of the purchase of
all supplies required by each depart
ment of the board. All purchasing
should be done by a general purchas-
ing agent, who shall be held respon-
sible for all supplies requistioned by
the various departments whether de-
livered direct or through the general
storehouse. He shall be responsible
for the preparation of all bills to be
forwarded to the accounting heads.
1.-THE purchasing agent to be ap-
pointed by and be directly under con-
throl of the board.
This plan has been adopted by tho
city in the purchase of stationery
supplies, and upon investigation l
find that much money is saved by
this Capitalization of purchasing.
Since the beginning of the year the
department of water has found it
more economical to get their sup
plies through this source.
Explains His Suggestion.
II am, therefore, bringing this be-
fore you today, that you may be in
a position to discuss the advisability
of adopting such a plan at our next
meeting. 1t is very evident that it
will be profitable as well as advan-
tageous and along the lines of more
up-to-date methods if we adopt such
system.
Instead of different lines of sup
plies being purchased upon numerous
contracts, at varying unit prices, for
delivery to the departments, the en-
tire lines will be bought uponsa single
contract covering the gross amount
required for all the departments at
one unit. price for delivery at such
times as they are required to single
| delivery points or to/a general city
storehouse."