New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-04
Controller Says State
Should Buy Supplies
at Wholesale
S6.000.000 ANNUALLY
SPENT FOR MATERIALS
Proposed Board Would
Get in Gross Quantities
Things Needed
By EUGENE NJ. TRAVIS,
State Controller

otdlr COtiAiOtAti
The State Of New York purchases an
nually s6.0O0,000 worth Of depart
mental Office supplies. The present de-
partmentsl organization permits over
100 different officials 20 execute this
function. Would d private business
corporation buy under such an ar
rangement? An answer IS unneces-
sary. Decentralization is the problem,
and already the experience in CONNER
cial fields and in other state govern
ments shows the need of central pur-
chasing in the conduct Of our states
business.
For a number Of years there has
been agitated a constructive investiga-
ton Of the methods employed in the
purchase of supplies by the various
state departments. From the records
compiled by the State Controllers Of
fee. it is apparent that existing
methods are absolutely archaic, gross
" wasteful and hopelessly inefficient.
In fact. the present system makes I'M
possible the application OF those tunds-
mental principles which underle all
modern effective systems for the puf-
chase Of supplies IN use by the large
commercial corporations or the couh~
try.
The annual budget that has been IN
troduced into our State Legislature
calls for the purchase OF over Sb,UVo'-
600 worth OF supplies, materials ana
equipment There are few other cor
porations that annually spend more Tor
this purpose This Is the taxpayers
money and with the possibility OF the
tax rate mounting still higher u
might be well 10 question some OF our
present governmental methods OF 40
ing business. We are all IN favor OF
good. sound business methods OF run
ming our state and are refusing 70 be
lieve that IL cannot be run as other
large corporations.
Should Apply Business Methods
Purchasing supplies is a function
common to both government and
private business. The same principles
should guide both. Capitalization o.
buying is the customary procedure IN
private business. and there is plenty OF
evidence available 10 warrant Its
adoption in public business. Large
corporations are founded on the prin-
ciple OF Capitalization, and TO allow
each department or bureau TO DO its
own purchasing would be IN direct
violation o. this theory. A central
purchasing agency was the natural re-
suit. and such a system IS to-day en-
poyed in all the big industrial organi-
cations in the world
The principal desire in the adoption
of such a system is 10 secure economy
and avoid experiments frsugnt or
great waste and scandal. At present
there are no two departments IN state
government adopting the same methods
OF plan Of purchasing supplies. More
over. each proceeds in utter ignorance
of what the other is doing and there
he absolutely no means OF making the
/ experience and knowledge acquired oF
orc dapartrnent Of practical value 20
another Not only does the present
method ignore the fundamental eco
noric law Of supply and demand. out
il also means that the state IS ouyihs
al retail prices millions o. doiIsi T.
worth of supplies annually wnlch J.
should purchase az wholesale prices OF
even less.
food Results ElseNhe
pr. government experience m cen
80 nu~cbasine has already been trlec
IN NAM cities IN roUghout the country
with good results. This indicates ina ii
commercial practice IS entirety appI'
cable % affairs Of government anu
whatever our large cities nave uUo a0
toward efficient purchasing OF suP -,
nc COR al least expect as mucn from
a,,- s+ate Before considering now
o,-or nc problem m this state u may
10 ~ interest 20 point out the sll1a
- a. IL exists IN other cOhWoi
,yeaItbs. where central purcnaslIis a., p,
w 60 This array Of states inciuoss
a.,t,, one-half and certainly mo ca y, D
J,ssatisfaction with the presehL
.o~-ralized scheme, or. al leasl.
80 ma. so far as GOOD nahase ~,
OH economics are concerheu; N
eraI plan. as now proposes, -
per-. ing 70 the present situation 10
VI one finds much the saD's5
-, ~ deceutral cation tnat eN's-,'
~ largest city previous 70 the a"op
-. 80 80 me present plan Cnaer Ll'
ur,, rlan Of decentralizauon no t.
pLe,.b;ii+,- il possible, with the Iesu,.
p. az state is buying over t"o-D I-ii IoS
s,roIies in the open maj -
,.b means az retail TatheI me-
..LoIossle prices, which naJuraHE p
~ 10 such circumstance 'oi
~ buving in small quantities 80
~ l;,tI. or no competition 80
- t;me. en- organization OF wy
an ~. Empire State, purchasing e.
Ill, supplies 20 the amount "
n0o 600. is entitled 20 whole,sSaie @.;er,
TS;s uoint alone is o. itseii sun,''''''
80 irdic, the entire present syS'''''
present wasteful system
D.. careful comparison o. t sas
.-''--,ops volume OF vouchers useu TO- o.
.,a,.,oent Of supplies, when nav ~
me p. sy bv the several departn,''enS y
De PIsdp.cr5ed in the State ControiIei
"a az nresents a striking exam r.
~. ,rasent wasteful methoa, -
~ splitting up Of the GUAM
'n,Hss purchased without cor " Ia ~ :
o. ''p ~ eagrant abuse OF the ope.
az. ordsr method OF purchas.ns
~, enphasize TIE Tremendous an'pSS a
49,. 49, az the establishment oy ia~ ybis
80 purchasing board. OhoeI re-
s 80 plAn all purchasing oenyt
pIoR,b 49, provided for by lsW w w.
sn" 5one bv this board, and a. SUPPL, /
+ Ds,air,d BIZ the state ospa. US
..a,iS be reauisitioned TOT Dy 49,
bos,d and purchased IN gross 4""'
rs. -.,ead Of different lines OF