Ellsworth American., 1918-09-04
HOW THE u. S. NAVY
BUYS ITS SUPPLIES
Purchasing Department Under Admiral MCGOWAN Has Net Tests
SuccessfuIy-centra the Chief Merit Of the
System-Compimented for Efficiency After
Investigation by Congress.

washiugton.-A business concern
which can increase It's turnover 2.5G
per cent In - months without radical
changes 10 method would seem to be
. pretty sound organization.
Amid all the expansion OF govern
ment activities due to war. with far,
reaching changes IN methods of con.
dactiBg business, reorganizations, in-
crense in personnel, and addition Of
wholly new departments. one big bust
ness agency OF the government has
changed not at all. except In magni-
tude. That agency Is the bureau of
supplies and accounts Of the navy,
which purchases practically everything
required by the navy except arrn0r
plate. gum. and shells. II feeds and
clothes the navy, buys It's steel. met
ais, lumber. textiles. and chemicals.
provides transportation for the navy's
supplies, Goals its ships, and pays Its
officers and men During the last
year this bureau has been greatly en-
larged by the addition Of new officers,
technical experts from civil life. and
clerical workers, but its organization
and methods have fully met all tests
Of war and have required practically
no change. says the New York Times.
After thorough investigation, con-
gress recently declared this great bust
ness Office Of the navy TO be notable
for efficiency. as well as one Of the
biggest business enterprises In the
United States
There are two reasons for the eti-
ciency-an excellent business system
and an excellent business man. Ad-
miral MCGOWAN, who FIRST became
identified with the navy's purchasing
affairs four years ago, after demon
strating his ability as purchasing Off
Ger for the American feet when II
went around the world.
Its Chief Merit.
The chief point Of merit iu the
navy's purchasing system is censrxIi- /
zation. All its supply activities are |
administered from Washington, no
matter how widely the American feet
may be scattered ever the world. i
Ships are provisioned in the West In /
dies. sailors are provided with warm /
winter clothing for destroyer service I
ia the submarine zone around the Brit !
ish Isles. coal IS dispatched 10 ships /
In the Philippines. nitrates are brought I
from Chile, clothing IS manufactured /
In View York and Norfolk. stores are
carried at innumerable points ready 1
for delivery TO ships at instant notice. !
Yet all activities center in Washington. /
and navy supply business is not only I
kept undrr the eyes of a few execu. /
tives. but is expedited by a fine work
Ing spirit
Next To centralizatioa and this fine !
working spirit. probably the most i'm
portsnt element In the system is pub !
licity in dealing with the supply OF
the navy's innamerabie needs Under (
pressure Of war other departments I
have found Il expedlent to set aside /
the normal peaee-time methods OF pur-
chasing under competitive bids, but the /
navy has adhered to the method OF /
open bidding. with full publicity. on I
the principle that the public, contrib /
uting war funds by taxation. has a
right 20 know exactly and In the full
est detail how its money is being ex-
pended
Another principle the navy adheres.
to is that war demands should be met
by the peaes-time system of purchas-
ing. Great as war demands are, they
call simply for an increase In volume
of business-not change in the fun
damental method of conducting busi-
ness. II the method has been proper
ly worked ont IN peace, IL will meet
the exigencIes Of war.
Directed by meGo~an.
II every institution is the length
and shadow OF one man. as Emerson
said. then the bureau Of supplies and
accounts today reflects the personality
Of Admiral MCGOWAN. When the b1-
reau transacted It's affairs with g peo-
pie. he knew them ell. and they work
ed under his eye every day. helped by
the optimism and energy which he ra-
dates. After a year Of war. with his
organization approaching 1000 people.
be still knows them all and sees them
frequently, and maintains the original
spirit Of organization by making un-
limited demands upon each individual
for work. according TO his or her capac-
ity, with unstinted commendation for
all good work, whether the job be
great or small.
When the strength OF the navy was
about $4,000 officers and enlisted men
the bureau OF supplies and accounts
did all its purchasing and transporta-
ton through naval officers OF the pay
masters corps. When war came, and
activities increased by several hun
dred per cent monthly. the organiza-
tion was strengthened by taking on
about a dozen civilian experts from
business life. men who gladly resigned
good positions and large salaries with
private business concerns to don Uncle
a.