PRIZE ESSAY.
Motto: With a long pull and a strong pull,
And a pull all together.
There is no room in such a paper as this for historical review. Sufficient is it to state that, since the naval establishment was inaugurated, there have been a number of systems of obtaining sup- plies, caring for them in government store, and finally issuing them for use. Up to the present one, none had been devised with much thought of economic conditions in relation to the general government. Finally, a young businessman became Secretary of the Navy at an opportune time; old moss-covered methods were looked at askance; and a radical change was made. The result was the present system of keeping the navy's big store.
The change was made under protest, grounded not on the belief that the new organization was radically defective, but on the fact that the various branches of the naval establishment were to lose control of the care and issue of the supplies of which they had cognizance. The new organization has survived some tempestuous times; long ago it would have become an abandoned wreck, had not the commanding power, the civil Secretary of the Navy, quelled the mutinous crew with the mailed fist of authority. The uprisings were put down because this supreme authority, with its mind free from the traditions and prejudices of the service, knew that the change pointed in the right direction,—towards business- like administration of a business branch of the naval establishment, and also towards wise general economy.
The new system, although well equipped mentally, was born with a curse, that, although alleviated a little since birth, has not been cured. This deformity is the binding tissues to the bureau system of the Navy Department.
For several years the workers under the new organization plodded on, striving for satisfactory results under this handicap.
But the ideal remained out of sight, and would not have come in view at all if it had not been for the creation of what is called the naval supply fund. In this fund was found the road along which we might travel towards a goal. But the means provided for progress along this way to success are already inadequate. The naval supply fund should be increased to four times its present amount; then, if we do our duty all the time, there will, in short order, be a quick and reliable working system of store- keeping at the disposal of the navy, and a businesslike economy to satisfy the public. Every increase of the fund makes the pernicious power of bureau control of supplies in store less felt, and real general store keeping nearer a fact. By this reference to the bureaus, no slur upon the present departmental organization is intended. The writer is simply pointing to the handicap of supplies being purchased and kept in store under so many appropriations.
THE DIFFERENCE BETWEEN STOREKEEPING UNDER THE NAVAL SUPPLY FUND AND THAT UNDER THE BUREAU APPROPRIATIONS.
The naval supply fund is a sum of money voted by Congress to be held apart in the Treasury for the purchase of supplies for the navy and to be reimbursed from the current naval appropriations, at the time the supplies are drawn from the naval store for actual use. The fund is continuous. Its debits are the public bills prepared in payment for the supplies purchased from the commercial world, and its credits, the transfer statements of the general store keepers, showing issues of the stock on account of the various current appropriations to be debited. The fund was created in 1893, Congress setting aside a few thousand dollars. It has since been increased several times, being now $2,700,000.
A great difference in status exists, in the general store keeper's warehouses, between supplies purchased directly under bureau appropriations and those purchased under the naval supply fund. The former are paid for from some current naval appropriation at the time of purchase from the commercial world, and, when actually drawn from the navy yard store for use, entail no further deduction from an appropriation; while the latter, when drawn for use by the navy yard departments or ships in commission, from the general storekeeper's stock, must be paid for then, from the funds of some current appropriation. In the latter case, the money deducted from the appropriation is transferred to the credit of the continuous and ever turning over naval supply fund, which paid for the supplies at the time they were purchased from the commercial world.
The quantity, style, and quality of the supplies purchased from the commercial world, under the bureau appropriations, are controlled practically by the various bureaus having cognizance. The quantity of the supplies purchased under the naval supply fund is controlled by the Bureau of Supplies and Accounts,—at present, Within the narrow limitations of a stock that must not exceed $2,700,000 in value. The style and quality of the naval supply fund stock are controlled, to a large extent, by standard specifications, approved by the various bureaus interested. Where standard specifications do not exist, style and quality are determined by the advice of the bureaus interested. The chief of the Bureau of Supplies and Accounts and his representatives, the general storekeepers, determine nothing of this. There is no flaw to pick in this detail of naval supply work. Everyone concerned knows that each bureau interested has always had its proper part in the control over style and quality of the naval supply fund stock.
THE ECONOMY OF GENERAL STOREKEEPING UNDER THE NAVAL SUPPLY FUND.
To partly illustrate the economy of the naval supply fund as compared with the system of direct purchase from the commercial world, under the current bureau appropriations, an article, in constant use by all branches of the establishment at a navy yard, will be selected and followed in its course through both systems. White lead will answer the purpose. The scene of the exposition will be a certain small navy yard, in regard to which the writer has reliable figures. At this yard, where about one thirty-fifth of the aggregate work done at the principal eight yards is accomplished, there were used in a year 45,700 pounds of white lead. This quantity was used by the various yard departments as follows:
Construction and Repair 35,000 lbs
Yards and Docks 5,000 “
Steam Engineering 3,000 “
Equipment 1,500 “
Ordnance 500 “
Medicine and Surgery 200 “
Supplies and Accounts 200 “
—————————
45,400 lbs.
rounding off the figures in the detail.
Suppose now that the naval supply fund did not exist. In order to stock up with white lead at this yard, seven purchase requisitions would have to be prepared. Purchase requisitions are made in quadruplicate, by the yard departments concerned, under the most exacting and time-consuming regulations in regard to specifications, estimates, certificates, etc. There is at least one clerk in each department of size constantly employed on this work. After preparation, the requisitions are sent to the general storekeeper for checking against stock on hand, to verify the yard department's previous check, and for recording and signing. From each one of these requisitions, represented by a specially opened "folder," is built up, in the general storekeeper's office, a case. On each case lodge all the papers and correspondence pertaining to the requisition, and on the folder is kept an exhaustive record of the steps of purchase. Some of these cases swell in time to volumes, before they become finished business, and the handling of them consumes a large quantity of clerical labor in the general storekeeper's office. From that office the seven requisitions for the white lead would pass to the commandant's office, for record and approval, and from there they would be forwarded to Washing- ton, to the bureaus concerned, where once again they would proceed to consume large quantities of clerical labor. After examination, record and approval in the bureaus, the requisitions are passed to the purchasing bureau, that of Supplies and Accounts, where there are expended over them more units of clerical labor than the aggregate in all the preceding steps. Then comes advertising and the bureau contracts, or navy pay office purchase under formal, written contract or in the open market,—a separate operation for each of the seven requisitions, unless by the merest chance two or more are forwarded from the yard by the same mail. Here is indeed mighty expenditure of clerical labor.
Referring back to the quantities of white lead used during a year by the various yard departments at the small yard taken as an example, it is likely the quantities called for under the seven requisitions would be about as follows:
Construction and Repair 40,000 lbs
Yards and Docks 1,000 “
Steam Engineering 4,000 “
Equipment 1,000 “
Ordnance 500 “
Medicine and Surgery 200 “
Supplies and Accounts 200 “
—————————
46,900 lbs.
These figures are not mere guess work, but are based on experience.
The prices paid on the seven requisitions would likely be close to the following, comparatively speaking:
Construction and Repair 40,000 lbs at .055 $2,200.00
Yards and Docks 1,000 “ at .07 70.00
Steam Engineering 4,000 “ at .0625 250.00
Equipment 1,000 “ at .07 70.00
Ordnance 500 “ at .07 35.00
Medicine and Surgery 200 “ at .0725 14.50
Supplies and Accounts 200 “ at . 0725 14.50
————————— —————————
46,900 lbs. $2,654.00
The average price per pound of the total would then be .056588.
There would be at least seven deliveries at the yard, to make up this aggregate of 46,900 pounds of the seven requisitions, entailing at least seven inspection calls, with the attending work and papers. After being passed in to stock, there would be seven public bills, in triplicate, prepared. Each of these public bills would involve the full work of the routine progress through the general storekeeper, commandant, bureau concerned, paymaster general, and purchasing pay officer, and its separate disbursement officer's check, in settlement. In the navy yard store house the white lead would have to be placed in seven different lots, each with it sown tally card, and in the bookkeeper's room seven different ledger accounts would be involved. Separated in to seven lots, the stock would take up twice as much space as if packed in one compact lot. Also, the store men would have to be seven times as watchful in the case of this divided stock than in the case of one general pile of the material, from which issues could be made indiscriminately.
Now a great change comes. The naval supply fund is created, and white lead is one of the items carried under it at the small navy yard of example. The yard departments no longer make purchase requisitions for it. Instead, when it is needed, they send to the general store and draw out the required quantity on a "stub requisition" (which is a store order), the same paper that was necessary in drawing their own stock from store, in the days of the bureau purchase requisitions. So all the clerical labor and other expense in the yard departments that were formerly necessary in preparing purchase requisitions are entirely eliminated.
The general storekeeper has a "limit" on the white lead stock. This limit is the number of pounds below which he considers it unsafe to allow the stock on hand to fall, before taking steps to obtain additional quantity. The general storekeeper makes but one request a month on the Bureau of Supplies and Accounts (except in emergencies) for replenishing the naval supply fund stock. When it is time for this monthly request, all stock tally cards are examined, and the request comprises all items of stock on hand below, or near the limit mark. He counts on buying white lead twice a year. The limit has been fixed at 19,000 pounds, about a five months issue (see page 24). When the quantity in store gets near that mark, the next monthly request bears, among perhaps hundreds of items, the item "23,000 pounds white lead," half the quantity used in a year at the yard. The request is prepared in duplicate, not quadruplicate, as in the case of each of the seven purchase requisitions just alluded to, and it requires none of the elaborate specifications, certificates, etc., of the purchase requisition, and needs only the signature of the general storekeeper, and the forwarding stamp of the commandant's office, before being started on its journey direct to the Bureau of Supplies and Ac- counts. After each item entered on it is written the reference number of the standard specification governing, —that is all. The items go into the next advertisement schedule issued by the Bureau of Supplies and Accounts: the white lead is purchased in one lot, conies to the yard in, say, one delivery, requiring one inspection, and finally passes in to store in one pile, from which it is sold to the yard departments as they actually need it. The only paper required of the yard departments in this transaction is, as stated before, the stub requisition, which would have been necessary even if the white lead had not been carried under the naval supply fund. There is but one public bill prepared in the general storekeeper's office, in settlement for this white lead, and this unity of transaction goes right through until the one merchant receives the one check and the who leaf fair becomes finished business. The mass of papers, stored away in the general storekeeper's file room, is about one-seventh the size of what was put there after stocking up with white lead under the system of purchasing directly from the commercial world under the current bureau appropriations.
Supposing the white lead purchased under the naval supply fund cost five and a half cents per pound, the bill for the 23,000 pounds would be $1265.00. A similar quantity purchased from the aggregate of the seven purchase requisitions would have cost, at the average price of .056588, $1301.52, thus involving a loss, by prices alone, of$36.52 to the government. The navy also would have, under the seven purchase requisitions transaction, a surplus stock, a useless stock for the time being, of 23,900 pounds of white lead, the difference between the aggregate of the seven purchase requisitions, 46,900 pounds and the half yearly request for 23,000 pounds under the naval supply fund. This would require extra storage room, involving contingent expenses for care, etc.
At the navy yard of example, where about one thirty-fifth of the work of the principal eight yards is done, we find the supplying of white lead by direct purchase from the commercial world involved a loss of $36.52 as compared with the cost of the naval supply fund method of storekeeping. If thirty-five times as much white lead was required for the principal eight yards as at the Yard of example, and all eight places were to stock up at the same time under the system of direct purchase under current bureau appropriations, there would be a loss to the government, on ac- count of prices paid, of $1278.20, and there would be an un- necessary stock on hand of 23,900 times 35, which would be 836,500 pounds of this one item among thousands,—this unnecessary stock occupying valuable storage space, and tying up $47,335.76 of the government's money.
White lead is but one item among thousands carried in stock at a yard, and it is not a particularly good item for the writer to have selected for making his argument. It is hoped the student of this paper will read here more than is printed. The writer in many cases will try only to point the way. At the risk of being tiresome with the white lead example, he has tried to show, with- out exaggeration, that storekeeping under the naval supply fund is more economical for the government than the present method of a storehouse divided against itself, as it were, and that under it, the navy gets as good a quality and style of supplies as it got in any other way. This example, by itself, is not put forward as a mathematical certainty; simply a convenient way of demonstrating by pictorial steps the superiority of storekeeping under the naval supply fund. All those experienced in such matters know the assumed data of the seven purchase requisitions for white lead fairly represent the truth, taking as a whole the system of store- keeping by direct purchase under bureau appropriations.
An economic advantage that would come in full with an adequate naval supply fund would be the ability to purchase, under one contract, in a lump lot for delivery at a certain yard, the total supply of an article needed for all the yards during a certain period, and then distribute from the point of delivery to other yards as needed. The lower prices obtained in this way would often off set the freight charges of distribution, fewer papers and units of clerical labor would be involved, and a uniform quality would be obtained for the entire service. Also, if delivery were made at the New York yard, better inspection would be had. The Bureau of Supplies and Accounts is practicing this to an extent, limited by the size of the fund. All shellac used in the service is bought this way, delivered at New York, and required from there by the other yards. It is the same with writing, copying, and blotting paper. As the fund increases in amount, this power increases in extent. Concentration in purchasing makes for economy in administration. And it might be remarked here that reform in administration at the buying end of our business is much more telling for economy than reform at the issuing end, for many more papers and units of clerical labor are used in getting supplies into stock than in taking them from stock, for use.
A PROPOSITION FOR ENLARGING THE NAVAL SUPPLY FUND.
On July 1, 1905, there was, in the aggregate, at the principal nine navy yards (Portsmouth, Boston, New York, League Island, Washington, Norfolk, Mare Island, Puget Sound, and Cavite)
$42,500,000 worth of supplies in stock, excluding naval supply fund stores and provisions and clothing, and rounding off the figures. $27,500,000 of this amount was represented by fuel and technical ordnance material, deducting which from the total just mentioned, would leave $15,000,000. It has been carefully calculated, from reliable data, that, of this last amount, $4,000,000 was represented by a class of material that it would not be wise, or at least necessary, to carry under the naval supply fund, such as instruments of precision, machines, heavy ground tackle, boats, and a lot of other ship equipage, etc. Deducting this amount from the last remainder, we have $11,000,000. It is guessed that about one-third of this last amount was represented by obsolete and worthless stuff, stock on hand in excess of requirements, and difference between excessive prices borne on the ledgers and market prices. Calling this$3,500,000 and deducting it, we have left $7,500,000, which represents the amount by which the naval supply fund should be increased to satisfy the demands of the principal nine yards. The value of supplies on hand, July 1, 1905, outside these yards was $6,000,000. Reducing this in the same proportion as the sums just handled, would leave $1,000,000 as necessary for the fund at the smaller yards and stations. Add this to the $7,500,000 just obtained and we have $8,500,000, which may be called the amount by which the fund should be increased, to satisfy the requirements of the entire service. As the fund is now $2,700,000, it can safely be said, with a naval supply fund of $11,000,000 the navy can be kept supplied with all commercial material and can have as near a perfect general stores system as will be possible under the conditions in sight.
The fund, as stated, is now $2,700,000. How increase it towards the estimated $11,000,000? Congress seems stubborn towards any further setting aside of money for the purpose. All recent efforts have met with failure. At the bottom of this action is, no doubt, fear of giving the navy additional facilities for over- stocking, for the members of the naval committees understand by this time that the fund is not an "appropriation." The writer has long had in mind a scheme for the proper increase of the fund, but has not advanced it, thinking opposition the suggestion would probably meet from some of the bureaus would kill it. But there have been favorable signs in the sky of late, and, with some hope of success, the proposition, will be made here.
At a set date, turn over to the fund all general stock (stock that has been purchased directly from the commercial world under current bureau appropriations) fit for use in the active work of the navy, and which has not been purchased for definite work that is actually in hand at the date set. And thereafter, when any of the jobs for which stock has been reserved are completed, turn over to naval supply fund stock remaining material. The transfer to the fund should be made, of course, at current market prices, where the ledger prices are excessive. From this transfer, exclude articles of a purely technical naval nature that are used practically by but one bureau, building material used exclusively by the department of yards and docks, and fuel. After this transfer, all increase navy stock that is not in store for use on a ship or its equipment not completed should be bought by the naval supply fund. This latter transfer might or might not run the fund in debt to "increase navy," for lack of ready cash; but that obligation would soon be settled. After this first transfer of increase navy stock all remnants of the stock held for ships and their equipage not completed should be bought by the fund as soon as completion and commission of the ships concerned.
Under the proposed transfer of common general stock to the naval supply fund it is problematical what the fund would amount to after the transfer was accomplished. This lack of precise knowledge is nothing to bother over now. If the fund still remained considerably under the required $11,000,000 Congress no doubt, under the influence of the navy's generous move, would at last help out with some more cash. If, on the contrary, the fund was found to be considerably over $11,000,000, Congress, after allowing us time to shake down and find out where we were, could lop off a piece. According to the writer's deductions, just shown, the fund after the transfer, etc., would be under the required amount, for he provides in his scheme for the ultimate purchase of all common increase navy stock, and not its transfer to the fund without reimbursement of the increase navy appropriations.
"Increase Navy," as a separate stock "account" in the book- keeping system of the supplies department, should be abolished, and the supplies now carried under it that are not sold to the naval supply fund, transferred to general stock (Account a). There never was good reason for the existence of this separate account. There has been a feeling among those in control that Congress was going to ask, some day, how much increase navy stock there was on hand at the yards, and that alone, the writer believes, is the reason this separate increase navy store, within the general store, has been kept up, with its attendant books, papers, and clerical work. Let Congress ask the fearful question. It will be all right. The answer can at once be picked out of stock ledgers at the various yards. For if the increase navy stock were transferred to general stock, separate itemized ledger accounts and tally cards would be maintained, and the stock kept separated on the shelves of the store, just as is done now in the case of general stock purchased for a particular purpose.
Common general and increase navy stock, of the kind mentioned for transfer, that would not be transferred under the proposition, on account of being obsolete or in poor condition, should be surveyed, with a view of condemning for sale. No part of this remaining stock should be "hoarded." Storage room is valuable.
Bear in mind that the yearly general appropriations are in- tended for the support of the navy for one year. If Congress gives money for building ships, procuring reserve guns and ammunition, etc., the appropriations are separate items in the naval bill. The regular annual bureau appropriations have not been intended by Congress for use in storing vast quantities of reserve supplies at the yards. They have been used for such purpose, though, towards the end of the fiscal year, with large balances on hand. This waste or tying up of government money has done the navy, as a whole, more harm than it has done good to the individual bureaus who have thought to gain an advantage. This useless stocking up is an old, familiar subject in the naval committee rooms at the capitol.
If this idea for enlarging the naval supply fund should ever be considered by the Department, it is hoped it will not be opposed by the technical bureaus for the reason, alone that they do not want to pay a second time for the supplies originally bought under the irregular appropriations. What they really will be paying for is a sane, efficient system of storekeeping from which, in the end, they are certain to benefit immensely. And they should reason that the sacrifice, if any, is necessary on account of sins of the past, which now make Congress say "nay, nay," when we knock at the door with our request for a money allotment increasing the fund.
It is true the fund has been increased since its creation, but in the past few years, in spite of strong and what should be convincing arguments, Congress has shown itself stubborn towards further increase. At the bottom of this is undoubtedly the tradition of the overstocking of yards. Sometimes ignorance, on the part of some in the naval committees, of the real purpose of the fund is one cause, but not the principal.
Now, if the navy comes to Congress and says that it is willing to turn over several million dollars worth of supplies, which have already been paid for from past annual appropriations, to the naval supply fund, in order to increase the efficiency of the fund, and thus make nearer possible a businesslike, and therefore economical storekeeping system, Congress will exclaim, "Larks me! the skies must be falling, "and then, we hope it will say,“ "Go ahead. The sooner the better."
Should the navy move Congress in this way, it would want to accomplish one other important thing, and that is to provide against the constant drain from the fund, on account of deterioration of stock, etc. There is no provision whatever now. This could be done by turning over to the fund the proceeds from public sales of condemned naval material, except clothing, which itself is carried under a fund. This should be provided for in the same bill authorizing the transfer of the surplus general stock to the naval supply fund. As the law stands, proceeds from sale of ordnance material, up to a certain limit, are credited to a current appropriation of the Bureau of Ordnance; the proceeds from clothing and small stores, to the fund for those articles; and all other sales money goes to the general fund of the treasury, the navy de- riving no benefit. During the year 1905, $203,307.48 was received from the public sale of condemned property. Of this sum, $84,510.73 went to the credit of the Bureau of Ordnance, $21,666.86 to the credit of the clothing and small stores fund, and the balance, $97,129.89 left the navy and went back into the general fund of the treasury.
With the naval supply fund increased to the amount argued for in this paper, the bureaus should not be allowed to purchase under their appropriations, directly from the commercial world, any items that are habitually carried in store under it. In emergencies, when the stock of any item becomes exhausted, purchase in the open market should be made under the fund. And right here, the writer will imagine what is being thought by some who have had experience in yard department work. That is, that the general storekeepers will not keep the stock up to meet the demands. The answer to this is that if the Bureau of Supplies and Accounts can not provide, for the duty, general storekeepers with intelligence and application enough to keep stock up to requirements, that is, as near to the requirements as zealous foresight and complete system can accomplish, then get the Secretary to appoint line officers or naval constructors or civil engineers or civilian clerks general storekeepers, and eliminate this, the most important duty the pay corps performs, from its tasks; but do not wrong the navy and the government by stunting the growth of a fine general stores system because the particular workmen in mind are considered incapable of administering it.
Congress may say to us, "What is to prevent yard departments from overstocking even under the enlarged naval supply system; that is, expending useless balances of annual appropriations, towards the end of a fiscal year, for naval supply fund stores that are not needed in the departments at the time, and for excess supply of articles exempt from the naval supply fund stock?"
Nothing will prevent this being done to an extent, with naval sup- ply fund stock, unless we institute more stringent regulations. The spirit of the regulations permits no storehouse in a navy yard other than the general stores, in charge of the general storekeeper, and also directs that supplies be drawn from store by the yard departments for use only on specific jobs underway at the time, and only in such quantities as necessary to keep the jobs going properly. The writer will admit that with present customs, ideas, and ignorances there would be danger in instances, where yard departments had unexpended balances placed at their disposal towards the close of a fiscal year, of the drawing of quantities of naval supply fund stores not really needed at the time, from the storehouses and putting them away against a rainy day. But we of the navy, as a whole, ought to be able to prevent such zealous action on the part of a few of our brothers, who work with in a contracted mental horizon. The following roughly suggests a plan that would probably prevent this:
At the end of each fiscal year require the head of each department at each yard and station to submit an itemized list of quantities, with value, of material, drawn from store, on hand in the department. This list should have on it the date each item was drawn from store, the job order number under which drawn, with a detail of the order, and the probable time of the completion of the jobs. The list to be closed with a certificate by the head of department that the items listed cover all supplies actually within the jurisdiction of the deparment at the close of the last day of the fiscal year, and that amounts listed are considered necessary for completing the jobs under which they were drawn from store. The lists to be transmitted by the commandant first to the general storekeeper for examination and comment, and then to the Bureau of Supplies and Accounts, through the bureau concerned.
As to overstocking with the class of supplies exempted, in the proposition, from the enlarged naval supply fund, there is little danger. Honest officers would not burden the navy with a useless and highly expensive lot of compasses, barometers, machine lathes, and other instruments and machines that might deteriorate- with disuse and which would be liable to damage. The man who might unblushingly lay in a ten years stock of commercial steel bar in the month of June, with the aid of an unexpended balance, would not think of buying several hundred mercurial barometers with the same money, if he could.
The following list, although not exhaustive by any means, will show more fully the class of articles that the writer would have exempted from even the enlarged naval supply fund proposed, and which would be purchased or manufactured directly under the bureau appropriations:
Ordnance material, fuel, navigation and survey instruments, sails, awnings, screens and tarpaulins, boats and outfits (with some exceptions), rigging of all kinds, sideboards, tables, bookcases, and other articles of ship's furniture usually manufactured at navy yards, ship's anchors and cables, and some other articles of ground tackle, photographic outfits, machinery and machine tools of a character that is purchased only when actually wanted for use, curtains and fittings and rugs of a ship's outfit, drawing instruments, fodder, harness, ranges and galleys (but not spare parts), printing outfits, masts and others pars, etc.
With the adequate naval supply fund suggested, stores turned in from ships placed out of commission could be handled as follows: Articles habitually carried under the fund, that are considered by the general storekeeper as fit for issue, take into the naval supply fund stock, and at the current ledger price, in case the invoice price exceeds it, charging difference to waste. Credit the appropriation of the bureau turning in the stores with the
value of the articles as taken up (if legalized), and debit the naval supply fund with the same amount. Survey the articles, habitually carried under the fund, not considered fit for active naval supply fund stock, and any such articles afterwards repaired by a yard department, take into naval supply fund stock, at the current ledger prices, if the general storekeeper considers them fit.
The adequate enlargement of the naval supply fund would do away practically with the tedious time-consuming matter of the transfer of appropriations on account of supplies purchased under one bureau being used, during the fiscal year in which bought, by another bureau. It happens often at a yard that a department needs, at once, supplies in stock that have been purchased, during the current fiscal year, under an appropriation of a bureau other than the one the department represents at the yard. In such a case the supplies can not be used without the consent of the head of the department having cognizance of them. With this consent, the general storekeeper, after issuing them, must make a record for the proper crediting of the appropriation under which the supplies were purchased, and the debiting of the proper appropriation, the one pertaining to the yard department drawing them from store. At the end of each month the general store- keeper sends to Washington a detailed, tabulated statement showing necessary transfers between appropriations, covering such cases during the month. This statement must be accompanied by a voucher for each case stated. The same papers are as necessary for a pound of nails as for a thousand pounds of copper ingot. At a large yard there are hundreds of such transfers each month and they all concern the kind of stock that it is recommended in this paper be carried under an enlarged naval supply fund. After the transfers and accompanying vouchers reach Washington there is much work in the Bureau of Supplies and Accounts with the liability books, and then further work in the Treasury Department, in actually making the credits and debits to the many appropriations involved. With the proposed $11,000,000 naval supply fund this work will be practically eliminated, and, therefore, many units of clerical labor saved to both the navy and the treasury.
The gradual enlargement of the naval supply fund has been through no policy settled in advance, but it has likely, after all, acted for the best interests. Through the naturally ignorant and experimental stages of its administration we have not been able to do the amount of damage that might have occurred had an adequate fund been created at one time.
Almost immediately after the first allotment of a few thousand dollars for the fund there was bought under it, at one of the principal yards, a quantity of horse-shoe nails. Yards and Docks soon after changed its style of head or horse or something, and refused to use the nails in stock under the fund. There being no particular call for them from the fleet, they became a dead loss to the fund.
Sometime after this, the supplies department entered into diplomacy, and in order to bring round a big man to its side on some question of supplies or accounts, consented to keep all the rigging blocks of the navy under the fund. The block maker sat the various yards then began to turn out little blocks and big blocks and middle blocks so fast that soon, in order to save a few dollars of the fund for other purposes, and to keep the stock of blocks on hand down under a hundred years supply, we had to cry "enough!" to the big man. And we, who did it, concluded it was long-eared policy to use the fund as a diplomatic lever. Fortunately, the big man was kind and bought all the blocks back again from the fund,—for a concession.
Then it was found that, following the advice of our brothers, the officers of the yard departments, we were saddled under the fund with quantities of certain sizes of fittings, etc., that did not turn over as fast as healthy stock should, and we accordingly learned to scrutinize closely our brothers lists, before ordering the goods. One of the leading causes of overstocking and the accumulation of some articles not used at all in the service, is the lazy man's method of making out requisitions for supplies for general purposes. Catalogues are too often resorted to, when the whole gamut of sizes is copied off and the quantities guessed at, often the same quantity being asked for, for each size, from the extreme of smallness to the largest; this done with the feeling that it would be too long a job to calculate the proper proportions for the kind of work in hand and that, after all, there will be a certainty of having the proper size when it is wanted. We would hardly buy in this way if we were partners running our own shop. It would not then seem too long and tedious to ascertain the relative proportion in which we used material. Not long ago a general storekeeper received from a yard department a request to carry in stock, under the naval supply fund, certain kinds of bolts and nuts. The quantities asked for were not exactly the same for each size, there being a tapering towards the two extremes. But that tapering was done in the office of the yard department, from no data from the shop. The general store- keeper, after a little investigation, learned that sixty times more of a certain size than other sizes quite near it on the list were used in the actual work of the department. The variation in the quantities asked for had no proportion to the quantities used in the work in hand.
We have been learning all the time, and do not forget, it is hoped. The stumbles we have made should scarcely be spoken of, except where useful in making points, when it is recalled what has been accomplished under most disadvantageous circumstances. The general stores system was established in the year that saw the first ship of our new steel navy commissioned. In the score of years that have passed, the change in the fleet has been so stupendous that it makes one blink his mental eyes when he turns quickly to the subject from some other thought. But, comparatively speaking, we of the supplies department have had no such improvement in facilities for meeting this new condition. We have floundered along, wrestling with the questions of ancient and inadequate storehouses, lack of clerical and other help, jumbled methods, jealousy, contempt, envy, and malice, from our professional brothers, improving here and there, tossing old methods on the dump and creating sound structures within our own lines. To-day, the position we find ourselves in is creditable to the supplies department of the navy. But this means creditable under the circumstances hindering us. There is yet an urgent duty of creative and repair work before us. So up on deck, all hands! And may the master-at-arms give the last one up a good, sound caning on his lazy legs.
CONCERNING THE LAW AND REGULATIONS MAKING SUPPLIES COMMON PROPERTY AMONG THE BUREAUS.
Congress, on June 30, 1890, made the following law:
"All supplies purchased with moneys appropriated for the naval service shall be deemed to be purchased for the navy and not for any bureau thereof, and these supplies shall be arranged, classified, consolidated, and catalogued, and issued for consumption and use under such regulations as the Secretary may prescribe, without regard to the bureau for which they were purchased." (The writer's italics.)
Congress, groping around in the dark for some scheme for preventing overstocking and the useless expenditure of balances of appropriations, towards the end of a fiscal year, unconsciously, with this law, helped to clear the way towards the only possible general stores system,—the one established upon a naval supply fund. But Congress did not achieve its real object with this law, because it was what might be called an impossible law. It directed that there should be a real general store, with all the stock therein common property, but it left the annual allotment of money, with which to keep stocked up, still divided among six navy department bureaus.
Just one little illustration (dozens could be given if it were thought necessary) to show the chaos that this law would have brought about if administered as Congress must have intended. One bureau might have millions to spend for supplies while another was alloted but thousands. The smaller bureau, as it were, knows that the larger bureau is obliged to use constantly in its work all varieties of brass screws. The smaller bureau uses a good many of these, too. Therefore, desiring to save its money for the purchase of articles not so common in their uses among the bureaus, it makes no purchase requisitions for brass screws, but, instead, helps itself whenever its wealthy and powerful friend puts a new lot on the general store houses helves. It is thought this example is sufficient to make the point.
The Department saw this at once, it is presumed, and letting its blind eye cover the last words of the law, "without regard to the bureau for which purchased," read the words directly ahead,
and issued for consumption or use under such regulations as the Secretary may prescribe," as permitting it to brace up the law in a way that would at least allow it to be put in operation to a degree. And so is was "regulated" as follows:
"All supplies purchased during a current fiscal year shall be kept separate from other supplies, and be held by the general storekeeper for consumption in the department for whose use they were intended when purchased. * * * all such supplies remaining on hand at the close of any year shall thereafter be subject to requisitions of departments without regard to the bureau for which purchased."
And even with this regulation the law has not worked,—that is, in the direction Congress intended. For the bureaus have asked for just as much money, comparatively speaking, and have turned in no balances, of amount, at the end of the fiscal years.
This regulated law has created a general stores system that makes the student in the science of government storekeeping, who by chance is a humorist, laugh, and he of a serious mind, weep in despair. It is as prodigal in the expense of its necessary administration as the New York Yacht Club is with the beautiful printed matter circulated among its members.
The best system for a general store is that which will provide at the time needed the necessary quantity of supplies of the proper quality at the lowest possible price. In "price" is included not only the charge made for the articles by the contractors furnishing them, but all the expense of administration. Under these conditions, the naval supply fund method of keeping store comes very much nearer perfection than that one in which the bureau appropriations form the capital.
So long as supplies, that may be used by more than one bureau, are purchased directly under bureau appropriations from the commercial world, laws and regulated laws will not prevent the officers who represent the bureaus under whose appropriations they were purchased from looking upon them for all time as their stores, and this sense of ownership affects injuriously, under existing regulations, efforts towards economical administration of navy yard affairs. Take an example of some common article. Say spruce lumber. The naval constructor buys 40,000 feet. After the following first day of July there is left in stock the amount of 30,000feet. The civil engineer presents to the general storekeeper a stub requisition for 10,000 feet of it. The naval constructor hasn't a leg to stand on, under the letter or the spirit of the law and regulations, in preventing its issue. It is not special stock in any sense of the word, and if it were possible that spruce would be needed in an emergency, it could be bought almost as quickly as a pound of sugar at the corner grocery. The general storekeeper can not help the naval constructor out, even if disposed. The civil engineer gets the lumber. Then friction starts a new. Although he may know nothing about the case, the constructor begins talking about the civil engineer holding up the yards and docks job until after July 1st, in order to get hold of his spruce. He also says he doesn't know how he found out there was so much spruce, and that he suspects the general storekeeper of having gone out of his way to tell him; that it is quite wrong, anyway, that the general storekeeper, only a paymaster, should have the say about the issue of his lumber. Passing the civil engineer the next day, it is strictly a military ceremony that takes place; and in the meantime he starts in despatching to the general storekeeper frigid, peremptory notes, calling his attention to the careless manner in which the store men handle construction stock in store, or other lapses. And so comes friction, that damning and expensive influence that so enters in to official life. If the spruce had been carried under naval supply fund, there would have been a clear sky from the time it ceased to be a tree to the time it became a handsome but frail new sidewalk in a modern yard.
As the Department read with a blind eye parts of the law of Congress, the Department's employes have read very often many parts of the regulated law with a hopelessly blind eye. A general storekeeper administering this regulated law for the best interests of the government could be court martialed, at any time convenient to the Department when it was short of work in that line, for violating it. Of course, if the Department ever took such a step in the case of a conscientious, hard-working storekeeper, it would be but common justice to give him company, by also trying his friends and enemies, the other heads of departments at the yard. If the general storekeeper threw open his doors on the first of each July to all corners, there would always be one or two yards departments that would not have to buy much for several months, from their own appropriations, while there would be other departments that would, in a week or so after the first of July, have to stop certain work in which the fleet would be vitally interested, waiting while they bought more stock to finish the jobs. Remember, the wealthy departments would not have advance information from their poor friends as to what kind and amount of their stock were to be swooped down upon on July 1st. So they would be unable to submit any advance purchase requisitions to meet the great July robbery.
But while the earnest general storekeeper has been violating regulations, for the best interests of the service, as a whole, the other heads of departments at the yard have been violating regulations for the best interests of only the bureau they represent. And here comes up one of the most damning points of the system under the regulated law. All sorts of devices and subterfuges are resorted to by them in order to protect their stock from their brother vandals. Some do it secretly, with a "shoo" of silence Upon their lips to their subordinate accomplices, while others, With a healthy, deep-sea affrontery, make no bones over the matter. Once upon a time the head of an important department at a navy yard bitterly complained to the commandant of the fact that he was obliged, towards the end of each fiscal year, I n order to save his stock in the general storekeeper's charge, to draw it from store in large quantities, not really needed for specific jobs, and store it in the buildings in his charge. And yet the last words of the regulated law, in the regulation book on the desk of that officer read, "and in no case shall supplies be drawn from store except on requisitions to fill specific job orders." Every one knows what the spirit of that regulation calls for.
Knowing that a general storekeeper, who really respects him- self more than he does portions of the regulated law under discussion, would not let a yard department take out of store supplies that had been purchased by another department for an ex- pressed object of work, let us say a ship under repairs, heads of departments, in submitting purchase requisitions for supplies, often make the "object" the repairs on more than one ship. For example, take a lot of commercial steel bought in May for repairs to the Fly and the Bat. When July comes the general storekeeper will not allow any other department to touch the steel, as both vessels are still under repairs. The work on the Fly is completed and the ship is commissioned July 15, but the work on the Bat, which is a navy yard "steady," drags along for two years longer, and the steel is held exempt all that time. In the mean time, the department buying it has used about two-thirds of it for purposes other than repairs to the two ships named, while other departments in the yard have not been allowed to draw any of it. All this time the current appropriation of the bureau concerned has not had to be taxed for the purchase of common commercial steel for its department at the yard in question. Much better, says the zealous and wide-awake head of the department, who engineered this matter, than letting that uncivil engineer across the street have all "my" steel. Yes, Mr. Zealous, you have protected your bureau all right, while the general storekeeper was trying to protect the best interests of the service and Congress was trying to protect the government, but what a mess of inefficiency and useless expense it all makes.
Another head of department, and he be indeed a man of genius, requires a lot of sheet brass for manufacturing articles of ship's equipage. His purchase requisition for it requires the contractor to deliver it cut up in special slips or sizes, as needed for the articles in to whose making it is to enter. This costs more in the end than buying the same brass in commercial sizes and cutting it up in the yard as wanted. If, after the first of July, the others come around for his brass in the general store, he tells the general storekeeper, or the commandant, in case the former is not friendly, that the brass has been specially cut up at an expense, and on account of the peculiar sizes, is specially adapted for making so and so. The stock is reserved, and perhaps some of those peculiar sizes remain in the storehouse for ten years.
Once upon another time a navy yard department drew from store on June 28th an immense supply, comparatively speaking, of a certain article it had purchased during the year. The "object" stated on the stub requisition drawing it from store was, "care of ships in ordinary." The general storekeeper returned the stub requisition inviting attention to the fact that there were no ships in ordinary at the yard at that time. Of course the general storekeeper knew that the stub requisition was being used simply as the means of transferring this big stock from the general store to the private, illegitimate store of the yard department, so that no one else could get hold of it after June 30th. Well, the yard department regretted the clerical error and changed the "object" on the stub requisition to" for repairs" on two vessels that had not yet reached the yard, and on which no surveys had been held, and for which it would have been impossible, therefore, to have Opened an honest job order.
A strange device reported to have been resorted to at times to circumvent the regulated law, but entirely different in character from those just mentioned, is agreement between heads of departments not to touch each others stock, no matter how long it remains in store. Of course, such agreements have to be limited to the tour of duty of those entering into them. But this method can not be entirely effective, because there are always one or more yard departments who could never be got to make such a compact, for the reason that they have little to lose by the full operation of the law and much to gain.
And so it goes. There is no use taking up space and time by giving more examples. The tricks, and they certainly are tricks, are various and numerous and being resorted to all the time. The humorous general storekeeper laughs, and he of the sorrowful mien weeps.
Let us pass now to some important special subjects, connected with the everyday work of storekeeping, which need discussion.
KEEPING UP THE STOCK.
While the care of the stock in store, and the proper accounting for it, are most important duties, of the supplies department, that should never be neglected, all that the customers, the yard departments and the ships in commission, interest themselves in is hay- mg their supplies in the quantity and at the time necessary.
These requirements should be paramount at all times. Whenever there is no supply of an item to meet the demand a black mark is recorded against the general stores system, and properly so, because the yard departments and the ships can not be expected to bother over determining whether or no it is the fault of an individual, and not really the system. When stock becomes exhausted, time should not be wasted in explanations as to the cause. Instead, the mental powers of the administration should be concentrated in determined effort to have no recurrence of the lapse. Ingenuity should be invoked towards discounting" emergencies." Of course, in spite of all human effort, there will be times when there will be no supply to meet demand for certain items, but these times should be reduced to genuine emergencies, where all the foresight in the world would have been useless.
To meet these all important requirements, it is necessary that the officers of the supply department take personal part in the work connected with keeping the stock up; not be content with saying do this, or that, or asking is this or that done, but help do things. Why should not officers have actual, active work in the details of this, their most important duty connected with storekeeping? Anyone can sit at a mahogany desk and sign his name to invoices, bills of lading, letters written by someone else, requisitions, etc., but it is not every man who can keep the stock
in a great navy storehouse in a manner that,on the whole, satisfies his customers—the yard departments and the ships. That may require genius at times. We may have the best ships and perfection of discipline and esprit with the personnel, but when the battle comes and we do not know how to shoot, we will not be able to "deliver the goods" as the country expects. A tour storehouses, if we deliver supplies in the quantity and at the time needed, the supplies department will have delivered the goods as the navy expects. But general failure, at this time of battle for us, would make our storehouse plant, with its studied organization, a government folly.
A few words about the practical steps in keeping stocked up.
As referred to in the white lead example (page 6), a low "limit" should be established for each item carried in stock. There is a question as to what this limit ought to be. Experience has shown the writer that, on an average, a six months issue of an item is a wise limit. There are many items where a four months' issue is a safe limit, and yet there are others, especially in the case of steel and iron material, where a year's issue is not too safe. It takes a long time to buy even the commonest kind of commercial articles under the present purchase system, and in fixing the limit, a possible rejection, and consequent replacement, must also be provided against; and after these calculations are made, a wide mar- gin of safety arbitrarily added on.
After the limits have been established, through research and calculation, the task is not ended. The limits should always be watched, and when stock runs low, or becomes exhausted before new delivery, new calculation should be made with a view to increasing the limit. It is a good store house rule to require the stock tally card and also the stock ledger sheet placed on the general storekeeper's desk whenever an item of stock becomes exhausted. This will work great benefit where the general storekeeper, in every case, conducts a personal investigation, with a view to changing the limit, if necessary. The writer knows of but one general storehouse where this rule is in effect. There it works in the most admirable manner for efficiency, and is considered the only means by which the general storekeeper can keep in proper touch with the most important part of his business.
The established limits should not only be written on the stock tally cards, as guides to the storemen, but also on the stock ledger sheets, so that the bookkeepers may act as a check, to some extent, on the storemen who post the tally cards. It might be well to explain here, for the benefit of some readers, that a stock tally card is a pasteboard slip kept with the item of stock it covers. On it a reentered, in pencil, all the amounts of the item received or expended, a balance being struck after each entry; the last balance on a card always showing, therefore, the amount actually on hand in the store house. No prices are entered on the card. On the bottom of each card is written the limit of the item it represents. The stock ledger sheet (loose leaf book system) is the ledger account of quantity and value, showing all receipts and expenditures in detail. It is kept by the bookkeepers, in the office, away from the stores.
The limits should be made liberal enough to permit the limiting of requests on the Bureau of Supplies and Accounts for new stock to one each month. It is doubtful whether the Bureau could properly handle the business were requests sent in oftener from the navy yards. As balances reach the limits on the tally cards during the month, the fact should be reported, by the storeman who strikes the last balance on the card, to the head storeman. When the time arrives for the preparation of the monthly request on the Bureau of Supplies and Accounts, every tally card should be gone over by the storemen, as a check on the reports made during the month. The quantities to be asked for on the request can only be determined after careful study, and in this work the general storekeeper should again have a personal hand. In the cases of hundreds of articles, where the commercial supply always promptly meets demand, a six months' supply is sufficient to ask for. There are other articles of which, in order to obtain the benefit of the lowest price, it is well to buy more than a six months' stock at a time. At one yard the practice of calling for an eight months' supply of most of the articles carried under the naval supply fund has been found to work well. There are a few articles that turn over so quickly and are so easily purchased, at little risk of rejection after delivery, that a three or four months' supply is sufficient to ask for. But as a general economic rule, the quantities on a request should not be below a six months' supply.
With the all embracing naval supply fund, under discussion, a reserve supply of certain very important articles, to be kept in stock against the emergency of sudden hostilities, could be managed with in the fund. When the Department issues an order in a specific case, simply purchase the amount to be reserved, put it with the rest of the stock of the same item, and increase the ordinary limit on the stock tally card by the amount of the reserved stock.
DELIVERIES OF SUPPLIES, BY CONTRACTORS, AT THE YARD.
This matter is in a state of confusion, which has continued for along time. There is no reason for its continuance; a simple direction from the Department would set things right.
Some years ago, when there were few or no facilities for running railway cars into the navy yards, contracts generally called for the delivery of purchased supplies at such place in the navy yard as the commandant might direct. That "place" was always indefinite, most contractors not knowing where it was until their wagons finished a weary beating from building to building. The writer recalls a case where the" place" was declared to be the floor of a gallery running around a room on the third floor of a storehouse. With the establishing of railway terminals in most of the yards, a new style of delivery was introduced, and, although "Where the commandant may direct" is not entirely gone from us, we now have "Delivered alongside cars placed in the navy yard." That is, the contractor delivering supplies by rail, must unload the cars in the yard. This is one of the strangest pieces of business the navy has ever been guilty of. A merchant in Omaha contracts to deliver supplies at an eastern yard. He ships them consigned to the general storekeeper of the yard. The car is run into the yard, and the merchant way out in Omaha must arrange with some firm of freight handlers in the east to go into the yard and take the goods off the car, although the railway track may run along the delivery door of the building in which the goods are to be stored. It would seldom cost the government more to take the articles, delivered by a contractor, from the car and place them in the building where they belonged than to pick them up from along side the car. But be it more or less expense, it does not matter, for the government would get back what is paid out in handling, by the lower prices bid by merchants, when they realized that this most unbusinesslike practice of the navy was done away with.
Readers not closely connected with this work may think imagination is playing a part here. But these are stern facts. It is believed general storekeepers now do not always insist on the Pound of flesh, and unload many cars put in the yards; but in doing so they render themselves liable to be called to account, for the wording of the contracts is plain.
Many examples from life could be given of the bad results to both government and the merchants of this wretched method of managing deliveries, but it is hard work to keep this paper from being so long and prosy that but a very few will read it. So the writer, in order to make his point clear, will give one example, but only one, and that will be the last marked case of the hundreds that have passed under his eye. One morning recently, he watched private teams trudging up a navy yard street bearing galvanized iron pipe from a car at a freight station a stone's throw beyond the boundaries of the yard. The pipe was placed on the ground outside the door of the building where it was to be stored. The car was not run into the yard, for then the contractors would not only have had to pay the teamsters for discharging the car but also the railway company's switching charges.
A track ran within three feet of the door where the pipe was dumped. If the car had been run to this place, it would have been easier and cheaper for the general storekeeper's men to have passed the pipe directly from the car to the racks that filled the building, than to pick it from the ground and store it. But the contractor had done his full duty, and, without the knowledge of the general storekeeper, had corresponded with local teamsters, always on the lookout for such business, and made arrangements for this queer delivery called for in the bond.
On every printed schedule of supplies advertised for, in every contract, and in every open purchase order, there should appear something like the following:
"Deliveries at navy yards or stations must be made as follows, without expense to the government. If by truck, the articles will be delivered in the proper building of the yard,in such a manner that the doors of the receiving entrance may afterwards be closed. If by railway car, delivery will be considered complete by the placing of the loaded car in the yard. If by water, delivery will consist of placing the articles on the yard at the berth assigned to the carrying vessel."
INSPECTION OF PURCHASED SUPPLIES.
The proper inspection of supplies, upon their delivery by the contractors, is an important factor in efficient and economical storekeeping. The navy yard board of inspection, as administered at present, makes a useless expense in our organization. This board, consisting of three officers, is supposed to pass on all deliveries; but it doesn't. What does it do? Why, the members sign their names to the inspection calls, which are the authority of the general storekeeper for taking the supplies into store and paying the contractors for them. Why do these members generally only sign their names? That is another story, too long to tell this time.*
This much should be stated here: it is all important that some method be adopted at once by which it will be known by record, who actually make the inspections, for it is taken for granted that in every case some person looks at the supplies before the call is signed by the three members of the board. It is useless saying,
"You have a Board of Inspection. Hold its members responsible," or, "You have the head of such and such department. Hold him responsible," because, practically, you can not do it. And
this, after all, is a very practical question. When supplies, after being passed and paid for, are found at variance with specifications, the general storekeeper wants to know who the person was who stood up before, and in sight of the supplies, and declared them to be according to the specifications under which they were purchased.
* See "The Purchase System of the Navy," by Pay Inspector Mudd, No. 117, page 108, PROCEEDINGS U. S. NAVAL INSTITUTE, March, 1906.—EDITOR.
Not long ago the general storekeeper at one of our northern yards discovered that some pipe fittings of ordinary weight had been passed into store and paid for, where extra heavy fittings had been called for by the specifications, plainly typed on the inspection call. He knew none of the three officers who signed the call had seen the fittings, except in the case of one, perhaps, who saw them in order to count them, not as an expert. He knew the head of the department that made the inspection had not seen them. He tried to learn who made the inspection. The Master Something was looked to by the head of department; but didn't. It was allowed that it might have been Hiram who did the inspecting, and someone else reckoned it was Rube who went down to the store that day. The department concerned, with Solomonian wisdom, sent in a stub requisition at once for the fittings, and they passed out of store as "extra heavy." The general storekeeper was busy at that time and had to neglect something; so he neglected raising a row over this drop in the bucket. The majesty of his "books" had been upheld.
Again, some alligator wrenches were delivered under contract and passed. The specifications called for a large size, No. 4, but the general storekeeper afterwards discovered that he had a lot, of the smallest size, No. 1, on hand. No one remembered who had "looked at them."
And again, and lastly, an electrical mechanic was discovered, once upon a time, inspecting a large delivery of officers' mess tableware. Now, if any of those plates or glasses had afterwards been found to be defective, who would have thought of looking in the electrical world of the yard for the inspector?
There ought to be an official record of those who actually do the inspecting under the calls. This could be kept by the receiving clerks in the general store, who hold the supplies until inspected. A certain general storekeeper would have opened such a book long ago had he not feared the board of inspection would misunderstand his action. Even the king of a retrograde monarchy can be proud and sensitive, and insist on being considered as much of a great and good friend as the rest of the gang.
Before leaving this important subject, so lightly touched upon, it will be well to mention a practice that is prevalent to a certain degree, mostly on account of the majority of inspections being made by workmen and others, not officers in the navy. That is, inspecting and passing according to the ideas of the inspector on the subject, and not necessarily according to the specifications. A common sense latitude must always be allowed in the case of small and unimportant differences. But the waiving by the inspector of parts of specifications, or neglect to ascertain whether the requirements of certain intricate parts of specifications have been followed by the contractors, is to be soundly condemned; as dangerous to the government's interests, and most unfair to the merchants competing. Specifications are prepared after much research and trouble by the bureaus of the Department, and they are seldom the work of but one mind, and it is not for any individual, afterwards, to set his opinion up against them, in the actual work of deciding whether supplies are to be passed or not.
STANDARD SPECIFICATIONS.
The navy has done well with standard specifications, but there is much of this slow and tedious work to do yet, involving much communication between the bureaus. But the good men and the proper men should keep at it. Clear, well thought-out specifications are much more valuable than standard samples. It should be borne in mind in preparing specifications that the navy does not always need the highest grade, the most expensive kind of a certain article. There is too free a use of the term "the best quality.". Uncle Sam wants to save money as well as the rest.
Recently a remarkably wise change was made in the standard specifications for an important and much used article—wrought iron pipe. For years the navy had been suffering under specifications that insisted on having something that, in ninety per cent of the cases arising, it did not need, and which in every case the merchants did not want to give, and in many, could not. Fights and delays innumerable fill the history of this peaceful and ordinary article of commerce. There is one record where it took over a year from date of requisition to obtain delivery of an order. There is another instance where, after advertisement for three weeks over the broad land, the lowest bid for this standard specifications pipe was twice what the kind of pipe really wanted could be bought for at retail. There is also an instance in this history of wrought-iron pipe, as treated in the United States Navy, brought down to the good year 1906, where a well-intentioned merchant who blindly, or otherwise, entered into a contract to furnish some of the pipe under the navy specifications, had the mills of the whole country closed to him, every iron master telling him that he did not want to bother, where he had to guarantee a percentage of elongation never called for in commercial life. Finally, during one of the merry little squabbles over pipe, when the best literary talent of several bureaus was busily turning out endorsements, someone asked why, when in ninety per cent of the cases all the navy wanted was the best and strongest quality of commercial pipe on the market, there were not two kinds of standard specifications, one for the super pipe and the other for just pipe. That question accomplished the desired result, and there are now two sets of specifications. Is it necessary for the writer to Point out the things that were done by that stroke, and some other things? Very likely not. There may be dozens of such cases connected with standard specifications awaiting action. This little example is given to emphasize the need of continued work, but it might be read with certain other portions of the paper, to illustrate.
SHIPMENTS.
The shipping of supplies over the United States, and the rest of the world, is one of the important parts of the work done at a general store. It is fairly well managed at present; but there is room for improvement. One of the changes for the better, that have been made, occurred recently, when the Bureau of Supplies and Accounts was victorious in along fight to have but one freight appropriation to cover the cost of all shipments made. The conditions that had existed for years, up to the time of this change, were fantastic in the extreme—something like the general stores system without a naval supply fund. The Bureau of Supplies and Accounts alone could authorize a shipment, and yet its cost had to be borne from the appropriation of the bureau having cognizance of the articles shipped. As the Bureau of Supplies and Accounts could not take a step ,involving an expenditure from another bureau's appropriation, without the consent of the bureau concerned, a truly opera bouffe situation existed, to again make the humorous laugh, and they of the sober mien, weep. When shipments were made, there had to be a separate bill of lading for each bureau's goods, thus entailing unnecessary expense to the government, not only in freight charges, but in cost of clerical labor and stationery. Often, in making shipment abroad, to one of our ships, there would be five separate sets of bills of lading, where one should have sufficed. We added to the gaiety of nations, and were the laughing stock of railway and steamship men, although they profited somewhat from our official foolishness. Yet it took years to bring about the change, some in the Department fighting it as if they were taking the last stand between freedom and perpetual servitude. But we are there at last. This is mentioned now, only as bearing closely in style on the important change in regard to the naval supply fund recommended in this paper.
With the one appropriation, styled "Freight," the reform was not complete, one little thorn being left to prick quite often. Charges for shipments made by express were left to be paid for from the appropriations of the bureaus concerned. Why? The writer does not know. Recently, a general storekeeper had on his desk an order from a certain bureau not to incur any expense on account of express shipments of supplies under its cognizance, without its specific permission in each case; another paper from the head of a yard department cautioning the general storekeeper not to make a certain shipment by express, for the reason that a letter had been received from the bureau he represented directing that no liability against its contingent appropriation (from which express charges were payable) should be incurred without its sanction; and a third paper, from the Bureau of Supplies and Accounts, the sole director of shipments, authorizing the general storekeeper to send shipments by express whenever he deemed it expedient to do so, without previous reference for permission. The appropriation acts could easily be so worded as to permit the bureaus to still use their own appropriations for paying express charges on books, papers, and packages, not coming under the Bureau of Supplies and Accounts shipping authority, and at the same time have express charges on supplies shipped under the direction of the Bureau of Supplies and Accounts paid from the general appropriation, freight.
The general storekeeper should be ever on the alert to get the lowest rates in making shipments, taking advantage of all the customs of getting lump rates on mixed goods, car load rates, short haul competition, water carriage, etc. A neat sum of money can be saved to the government in the year by close attention to this matter. And freight bills rendered for settlement should undergo intelligent examination as to classification and rates, before public bills covering are prepared. At times there is a tendency to take it for granted that the rich and generous railway and steamship companies will not take advantage of Uncle Sam.
As before stated, navy freight is moved under specific orders by the Bureau of Supplies and Accounts. But those documents are too often of the nature of permissions instead of orders. They should always be orders in the strictest sense, and if, upon the receipt of one by the general storekeeper, it is found impossible to obey it in full or in part, the Bureau should be notified at once. In no other way can the matter be handled with the business- like celerity that the interests involved generally demand. There is damaging slackness now in this regard, and the immediate tautening of the lines is demanded for efficiency's sake. If it is considered necessary to have a general permission at a yard to make shipments from time to time, over an indefinite period, of an article, when ready in the required quantities, grant permission in the form of a letter, and cover each shipment as made (to satisfy the requirements of the Treasury Department) by an open con- tract requisition, or, as suggested to the writer lately, by a form of shipment order issued by the general storekeeper in the name of the Bureau of Supplies and Accounts, as transportation requests are now issued in the name of the Bureau of Navigation.
One of the large yards is, to an extent, a supply depot for some of the smaller yards, so far as naval supply fund stores are concerned. When a naval supply fund request is received at the Bureau of Supplies and Accounts from one of the small yards, certain items generally carried at the supply yard are checked off, to constitute a shipment order. The remaining items are advertised. The Bureau not having a detailed stock list at hand, can not always select accurately the items to be shipped from the supply yard. In nearly every shipment order of size thus received at the supply yard, there are a number, sometimes a large number, of items that are not on hand, some even being items that are not habitually carried in naval supply fund stock at the supply yard. The proper proceeding is an immediate reply by the general storekeeper of the supply yard to the Bureau's order, informing it that in respect to certain named items, the order can not be obeyed; and then, for the Bureau to advertise those items at once. But such is far from the practice.
There is a case on record where a general storekeeper sent in a request in December for some naval supply fund stock. He promptly received notice that certain items of the request would be shipped from the big supply yard. Time went on, and brought some of the articles, but in the May following, beyond the time that it would have taken to purchase under advertisement and formal contract, there were many important items not yet received under the shipment order. An inquiry was sent to the supply yard. Answer came that the items still due would be shipped as soon as received into store. In the last days of August, eight months after the request had been forwarded, the general storekeeper of the smaller yard received official notice that the items still due, twenty-five in number, from the supply yard, would not be furnished, for the reason that they were not carried in naval supply fund stock at that yard, and that if he still wanted them he should require for them again on his next monthly request. Wrong! No general storekeeper can successfully keep up the naval supply fund stock with the uncertainty that this practice creates. This work should be carried on with the certainty and uniformity of the swinging pendulum.
A general storekeeper, once upon a time, made a naval supply fund request for 2,000 gallons of oil for ships' engines. He received word it would be supplied from another yard. One year after he had sent in his request he received the first consignment, 1,000 gallons. He has not yet received the remainder. Several inquiries were made of the supply yard, and each time word came back that there had been repeated rejections of deliveries, but that likely some would be shipped soon. In the meantime, at the smaller yard, oil was being purchased under yard department requisitions. Can anyone imagine that the officers of that small yard will ever again depend upon naval supply fund for lubricating oil? So comes a little loss of respect for the best system of general storekeeping that can be devised with the present day facilities. When the general storekeeper of the supply yard received the shipment order for the oil he should immediately have informed the Bureau of Supplies and Accounts that it was not in stock, or in stock to spare, and the bureau then should have advertised it, for delivery at the yard requiring it. Articles due to come in at the supply yards under contract should not be mortgaged by shipment orders for the smaller yards. What is the use of always being behind? If articles are not actually in stock at a supply yard, at a time the smaller yard sends in a request for them, they should be advertised for delivery at the yard requiring them, and the incoming supplies at the supply yard kept to meet future demands.
This weak point is dwelt upon for the reason that it indicates a disease that must be eradicated before it spreads and actually takes the life from the system. Invoices may be delayed and officers of ships may growl. That is bad, but not at all dangerous to the life of a naval general storekeeping system. But administer the system in such a way that no general storekeeper can maintain his stock of general stores, even after the keenest foresight and painstaking calculation, and we are at the beginning of the end, just as the little thread of water sneaking in through the massive Dutch dyke, maybe the beginning of mighty destruction. Let us, without delay, dam this fault.
SURVEYS.
About seven years ago many changes for the better were made in the regulations concerning surveys on material and supplies. But there is still room for improvement in this irksome work connected with the supplies department.
At present, if a tin dish pan is worn out on a ship lying at a navy yard, the head of department concerned, on board the ship, asks for a survey, and the commandant has the pan formally examined and reported upon by a survey officer. If it is worthless it is turned into store, at the yard. The general storekeeper gets it in a few days, and he then asks for a second survey. Again the commandant has that tin pan formally examined and reported on, likely by the officer who made the first report. The recommendation now is that it be thrown on the dump, where it duly lands, after a few more stiff formalities. A slight change in the regulations would do away with this nonsense, make more little bits of economy, and further efficiency.
One of the most unwieldly pieces of survey work is that on the Outfit turned into store from a ship placed out of commission. Under the regulations every item of the hundreds turned in, by the five departments on board, must be surveyed. This involves the issue of volumes, by the general storekeeper, written out on the bulky survey forms, three volumes (triplicate calls being required) for each department, making fifteen books in all for each ship placed out of commission. The entries required to be made in the numerous columns of these survey forms run easily into thousands, —tens of thousands. Think of the clerical work alone! It was recently suggested to the writer that the regulations be amended, so that the general storekeeper would have to call survey only on articles he deems unfit to go back into active stock for issue. The ideals in the right direction, and could be applied partly, as suggested, but, as a whole, it goes too far. While the general storekeeper would be a safe judge, ordinarily, as to whether articles of "supplies" so turned into store were fit or not, for active stock, it would not do to in trust him with the deciding power in the case of many technical articles of "equipage." A reform along the lines of the suggestion would be to change the regulations so that after the outfit of a ship placed out of com- mission was received into store, the general storekeeper would furnish each head of department concerned with one of the copies of the ship's invoice of stores coming under his cognizance; these invoices then to be placed in the hands of competent persons, who would examine the articles covered and check off the items that are fit to be returned to active stock. The general store- keeper, upon receiving back the invoices, would request a survey only on the items not checked. This reform is urged.
Another point, small, but important on account of its exposition of neglect in small matters, which bunched together, mean much waste of public money. The official form upon which surveys are requested by the general storekeeper, is 2 feet by 11/2 feet in dimensions—rather a massive piece of paper. The quality of the paper used is expensive, being heavy and strong on account of the handling a survey request is bound to get. We have had this form, and no other, in use for years. There is room on one sheet for 38 one-line items. The writer finds that for twelve months recently, at one of our yards, of the total number of survey requests made,66 per cent did not occupy a half page of one sheet, and of this 66 per cent, two-thirds were not more than four lines.
And yet in each case, three of these ponderous forms, 24 inches by 18 inches, were used in making the request. We should have a form not larger than half the size of the present blank. Those who have much to do with survey work will appreciate that this bad point is not too insignificant for mention.
BOOKS, RECORDS, AND RETURNS.
The bookkeeping and accounting in a general storekeeper's office are simple affairs, in spite of what may generally be thought. There are tally cards, of quantities, kept with the stock; stock ledgers, showing quantities and values, kept by the bookkeepers; a book of receipts, showing total value of each invoice of stores, from whatever source; a book of expenditures, showing total values only; and a quarterly balance statement, a compact return of the value of the supplies on hand, made to the Bureau of
Supplies and Accounts, and compiled from the books of receipts and expenditures. Accompanying the balance sheet, just mentioned, are vouchers, amounting in the aggregate to the total amount shown on the return as having been received and expended during the quarter covered. At the same time, an important statement is rendered to the bureau showing the object of the expenditures during the quarter. Then there are numerous, yet simple records concerning the business of contracts, open market purchases, shipments, ships' requisitions, etc. But all of this necessitates thousands of papers and a large amount of clerical work.
Aside from the matters specifically mentioned in this paper, the writer is not prepared to criticise adversely any of the important Papers or books thus kept. In this direction there has been no handicap or unwise law or regulation, and the methods now in force are the result of the best mental effort on the part of those pay officers who for years have been intimately associated with the general stores work. But inspite of all that has been done in this line by those most skilled, there is not the slightest doubt in the writer's mind that, with some concrete incentive (see page 43), many corners would be rounded off and many short cuts hewn out in the mass of "paperwork;" and many times the old hands at this work of construction and repair, would rub their eyes and exclaim, "Why was that not thought of before?" as they read where some $2.50 clerk works his brain beyond where theirs had stopped years before.
INVOICES.
The question of the invoices, covering supplies issued to ships, is one of direct interest to many in the service. There has been growling on this subject. The situation has been gradually improving, however, owing to the establishment of an organization in the clerical work of the general storekeeper's office. It is believed that now there is no delay worth speaking of in forwarding invoices covering supplies that are on the general storekeeper's books at the time of issue. There still remains one old and important cause of delay, that not only has not been eradicated during years of protest, but has scarcely been alleviated; that is the delay of yard departments in furnishing the general storekeeper with manufacture invoices of articles made in the yard, and issued to ships. The questions pertaining to yard shop work, in which the general storekeeper is interested, can not be entered into here. Suffice it to state that there is no excuse for this delay. There is a defined limit to the Bureau of Supplies and Accounts authority here. The Secretary has taken hold of the matter a few times, in individual cases, but to that busy man it was no doubt a dry, if not impossible subject. If the chiefs of the manufacturing bureaus would take an active hand in upholding the regulations on this subject, there would no doubt be improvement almost to the extent of satisfaction. As long as the general storekeeper is without the prices from the manufacturing departments, he can not, except in the cases of common articles of which he always has a supply on hand, furnish the invoices to the ships.
CORRESPONDENCE.
It is believed more correspondence passes through the general storekeeper's office than any other point in a yard, and it is likely the Bureau of Supplies and Accounts leads in this respect at the Department. It is therefore fitting in this article to touch upon some defects in handling correspondence.
There are too many formal slip endorsements. In three-quarters of the cases, an office stamp, with date, placed on the back of a paper would suffice. What is generally wanted is something to show the commanding authority that the letter or order has been received. It is unnecessary to state that the order will be obeyed or that the letter has been read.
There is too much time and material wasted over "sir," "gentlemen, "very respectfully," "have the honor," etc. A requestor a statement couched in plain, business like English is polite. A spirit of deference should be taken for granted where it is necessary. There was a time, and not so long ago, when, in closing a letter to a superior officer, we wrote, "I am, sir, very respectfully, your most obedient servant." But we have been traveling along the road of sense in public affairs, and we now, at the longest, write "very respectfully" before our signatures. Let us go further in the elimination of the superfluous.
All public correspondence should be conducted in a uniform manner, with paper of the same quality and printing of the same style, the only difference being the distinguishing name of the executive department and the office of the department. The letter head should show from what office the epistle emanates and to whom it is directed. Immediately after the last word of the typed communication under the letter head should be written the initials of the head of the office or an authorized subordinate, or a small seal punched. Something like the following is suggested:
PUBLIC BUSINESS. | NAVY DEPARTMENT. |
To The Bureau of Supplies and Accounts. | From The General Storekeeper, Mare Island. |
No. 2671. Enclosures 1. Aug. 6, 1906. |
Stub requisition No. 3, for naval supply fund stores, for use in maintenance of the general store, is forwarded herewith, with request for approval. A.B. c.
PUBLIC BUSINESS. | NAVY DEPARTMENT. |
To The Commandant, Navy Yard, Norfolk. | From The Bureau of Supplies and Accounts, Navy Department, Washington. |
No. 18212. Enclosures Aug. 4, 1906. 21567 |
Hereafter, in filling in amounts passed or rejected on inspection calls, duplication by carbon paper will be resorted to, to insure the same amounts appearing on all copies of a call X. Y. Z.
Every day the general storekeeper receives letters from merchants that are not signed, the name of the firm being typed in. There is no doubting the genuineness of these documents, and on them most important action, involving dollars and cents, is often taken, with no hesitation whatsoever. At one of our yards the general storekeeper has for some time past had his name and rank typed in at the end of letters to merchants not sent through official channels, in lieu of his signature. He has on office rule that such letters must bear his initial before being press copied.
He even contemplates ending such letters with "The General Storekeeper" instead of name, rank, and the designation of general storekeeper. The name and rank of the general storekeeper are of no importance in correspondence with the commercial world.
Much time is wasted in briefing letters on the back. The regulations call for official letters to be folded and endorsed on the back with name of station or ship, date, writer's name and rank, and a brief of the subject. This backing is use less in many of the filing systems in the offices of the naval establishment. Would it not, therefore, be wise to have the briefing done in the office where the letter is filed? Certainly it would be economy in administration, taking the service as a whole. It is noticed that letters emanating from the bureaus of the Department are not backed, although those offices are not exempted by the regulations.
The system of filing letters flat, without folding, is now in use throughout the commercial world. It is also in use in many of the offices in our navy yards. It is only a question of time when it will be adopted for the entire public service. Anyone can appreciate what a time-saving flat filing makes over the method of keeping letters folded and stuffed away in unhandy file boxes.
Much paper is wasted in our correspondence. The regulation letter sheet is 8 inches by 10 1/2 inches. The general storekeeper at one yard has for over a year been using in his direct correspondence with merchants a letter sheet of half this size, and has found that it answers in ninety per cent of the letters he writes. This abbreviating of letter paper is common among businessmen, and is most sensible. We could, in addition to the present letter sheet, adopt one two-thirds the length, to be used for short letters. That would admit of one fold of the regulation width.
TRANSPORTATION OF ENLISTED MEN.
The general storekeeper furnishes transportation to enlisted men changing station. This work, involving the disbursement of money, is foreign to his other duties. It is also illegal, as the general storekeeper is not a disbursement officer and makes no return of the money he thus handles. The cash he needs he borrows" from the paymaster of the yard, and, after a strange interchange, cancellation, and substitution of money receipts, that makes even a paymaster dizzy at times, he pays it back at the end of the month in the form of a public bill for the total amount, made out in favor of the paymaster of the yard. This transportation business, with its paraphernalia of request books, schedules, reports, orders, countermands, etc., should be transferred to the paymaster of the yard, who has plenty of time to look after it, and who is as accessible as the general storekeeper. The general storekeeper needs all his time and that of his clerks for matters Pertaining to supplies.
BUILDINGS FOR THE STORAGE OF SUPPLIES.
Some of the yards are in great need of modern storehouse facilities, especially those at Boston and Norfolk. Money in this direction will be wisely spent. Large sums have been wasted, so far as conditions in sight indicate, during the past ten years, on buildings for the various bureaus, including that of Supplies and Accounts, at useless naval stations, while Norfolk and Boston have been neglected in storehouse matters. And at other yards, where there are modern main buildings, there is lack of outlying storage places, for classes of material that should not be kept in the main buildings. These wants affect perceptibly the efficiency of the supplies department.
THE CIVIL FORCE OF THE GENERAL STORE.
The force of clerks and others connected with the general store at navy yards is apparently sufficient in numbers, but is underpaid. With a few isolated exceptions the highest pay given is $1200 per annum, and there are very few such positions. Two dollars and forty-eight cents per diem is too common, and promotion from that grade does not occur often. We lose many good men each year, after the trouble and expense of educating them, by their passing to positions in other executive departments of the government that pay more than the Navy Department. This drain of useful material and the entering in its place of the raw, affect in a marked degree the efficiency of the supplies department. It is not only the loss of good and promising men, but it is also the damaging effect of unstability in the offices. There should be a system of increase of pay through length of honorable service. However low the percentage of increase, it would prove an incentive to many to remain, to do good work and behave themselves. Sooner or later, and the sooner the better, we must adopt a system of old age pensions for our civil servants.
Some years ago, the Bureau of Supplies and Accounts, with the approval of the Secretary of the Navy, issued a manual for the use of the employees of the general stores. This, covering, to an extent, along felt want, was an economical step in administration. But the book, however useful, was the work of but one mind. Although still in constant use at the storehouses, the time has come for its revision, owing to many changes in laws and regulations since its issue, and perhaps, for its enlargement, owing to the fact, as stated before, of its being the work of but one officer. The old book should be put in the hands of experts, and from it should be produced an all-embracing manual to date. The scheme of a printed detailed guide to every step taken in the day's work at a general store, at the elbow of every employee, should not be allowed to die with the passing of the present book. Atone of our storehouses the writer has noticed that the edges of every copy of this manual indicate constant reference to its pages. There is no doubt it is useful. Let us make it more so.
Before the publication of the general manual, an experimental one was issued by the general storekeeper's office at the New York navy yard, for use at that yard only. On the front page of the book appear the following words of advice to the civil force:
"Be as honest in the daily measure of work you give the government as you would want to be considered in your private life by those among whom you live; be thorough in all the work you perform, be it small or large in quantity, be it important or not in character, remembering that no excuse should ever be accepted for lack of thoroughness; and, above all things, be resourceful, for a manual could not be written that would cover all the ground that has to be trod during the work days at the general storekeeper's."
These words, if followed strictly by all in the civil service, would give our government the most useful body of public servants in the world. Let us help weak human nature to live up to this exortation, by making certain to the clerks some reward, if they do their full duty, all the time.
PUBLIC SERVICE ECONOMY.
It is poor business on the part of the government cutting down expenses by ignorantly shaving the estimates of it strained officials, thus publicly announcing its unbelief in their statements, and having it understood that there is an established distrust, on the part of the alloting power, of all estimates. Close scrutiny always, but not this. Such unwise action sometimes hits the nail on the head, but much oftener causes additional expense. Better that intelligent energy be used in another direction. The writer will take the liberty of hinting at a method, the mention of which will not be inappropriate, as the general stores system of the navy would be certain to profit by its application.
Establish a government system of awards or prizes for improvements resulting in public service economy. Have three grades. First, a grand prize of $1000, to be known as The Grand Prize, U.S. Public Service Economy. This to be awarded for marked improvements in methods of public work of any character, that, if applied, would result in permanent economy, and by which more than one executive department, or bureau or office not connected with an executive department, might benefit. Second, a prize of $200, to be known as Second Prize, U.S. Public Service Economy. This to be awarded for any marked improvement by which but one executive department, or separate bureau or office might benefit, or for an improvement not so marked as warranting a grand prize, but by which more than one executive department or separate bureau or office might benefit. Third, an award of $25, to be known as U.S. Public Service Economy Award. This prize to be given to anyone making an improvement which, in point of importance, would not be placed under the first two classes, but which would result in permanent economy in public work.
The final awarding of these prizes to be made by a national commission, or board, to be composed of persons selected from the public service by the President. So far as the Navy Department would be concerned, the following is suggested as a plan of the machinery for operating the award scheme. At each navy yard, station, etc., have a permanently organized board of from two to three members, the commandant or senior officer being one, to be known as the Public Service Economy Board, such and such a yard. Anyone in government service at the yard to have the privilege of submitting at any time to the board a suggestion for economy in public work. If, in the opinion of the board, a suggestion would result in permanent economy, if applied, the suggestion to be forwarded to the Secretary of the Navy, with a recommendation as to which prize should be awarded. But before this final action, the papers in the case to be submitted to each head of department at the yard, and to the surgeon and paymaster of the yard and the commanding officer of the marine barracks, for any comment they may choose to make, these comments to form part of the case sent to Washington. If the board forms an unfavorable opinion of a suggestion submitted, it be not sent to the Department, unless the person interested requests it.
At the Navy Department have a permanently organized board of from two to three persons, to be known as the Public Service Economy Board, Navy Department. All suggestions received from yards, etc., after being submitted to each bureau, the judge advocate general, and the commandant of the marine corps for comment, to be reviewed by this board. If suggestion is approved, forward, with all papers, to the Public Service Economy Commission, with a recommendation as to the class of prize to be awarded. If this board of review think sun favorably of a suggestion, it be not forwarded to the national commission, unless the person interested requests it. The action of the commission on a suggestion to be final and beyond the power of review.
The names of prize winners to be publicly posted, directly after award is made, at the places where they work; quarterly, in departmental circulars; and annually, in there port of the commission to the President.
All employes of the government, from the President down to the humblest rating, to be eligible for prizes.
In illustration of what detail this scheme of awards would embrace, let us suppose it in operation. A clerk from the general store at a navy yard comes before the yard board with the following statement:
“Here is an official form that I use constantly in sending contractors certain necessary information. You will notice that there is a great deal of printed matter, with blank spaces scattered throughout, to be filled in by typing. It takes me two minutes and a half to type in one of these forms. I have drawn up a new style of form that will convey exactly the same information to the contractors. It takes me two minutes to fill in the new form. I have calculated that 12,000 of these forms are sent out annually from the various general storekeeper's offices. Mine will save one-fifth of the clerical time now put in on the one in use. For example, consider that clerks throughout the service, handling these forms, work with the same speed on the typewriter. A half minute saved on each 12,000 papers would amount in a year to about fifteen clerical days, which at the pay I am receiving, $2.48, is worth to the government $37.20."
The board proceeds to investigate these statements and finds them true; also finds, after the suggestion has been passed through the departments and offices of the yard, that the changes made in the form do not conflict with any laws, regulations or established customs, or with the economy of any office. The award of $25 finally made to the clerk for his improvement is more than balanced by the first years' saving to the government.
Another clerk comes before the board with the following: "I have here a form for a notice that I send out constantly in my day's work. This notice is not needed and should be abolished, for the reason that the offices to which it is sent already have on hand the same information, only in a different shape."
He then explains in detail. The board investigates and finds everything as stated; and this clerk also receives the honorable award of $25 for having been the means of abolishing a paper that the government has wasted hundreds of clerical hours over for many years, and which had become such a matter of uninteresting routine, that it had drawn no particular thought to it, until our clerk, with the incentive of public honorable notice and a little cash bonus, with which to buy Christmas presents, began to look around to see how he could economize in the work of his desk.
The writer would like to see Congress try this plan. He will prophecy that if allowed to run for two years it would not be abolished.
The writer makes a plea for harmony in the work towards a better general stores system; for all to look at the matter earnestly with a business eye. Each bureau has enough of its own technical work to keep it busy all the time, without trying to hold on to the bartering and storekeeping. When a bureau does this, it is unpatriotic, as it surely increases the expense of running the Department. The human weakness of wanting to appear as the directing power in large purchases,—the seeking for self-aggrandizement before the great people of the commercial world, is perhaps at the bottom of much of this tenacious holding on. To a judge, say the Secretary of the Navy, the insistence of a bureau to do work properly belonging to the Bureau of Supplies and Accounts, or of duplicating the work of that bureau, must mean one of two things; either the Bureau of Supplies and Ac- counts is not performing its duties as intended by the laws and regulations, or there is not as much reason for the existence of the other bureau as it might claim. Purchasing supplies directly from the commercial world, under the bureau appropriations causes the bureaus to appear more prominently before the merchants than if the supplies were carried under the naval supply fund. This may cause opposition to there form proposed. But each to his last.
Friction is a great foe to efficiency—to economic administration. A smart officer, with an uncompromising dispositon, in the position of head of department, is often more of a menace to the efficiency of the yard than one much less brilliant but possessing some wisdom, for the former is a breeder of discord; and good work and discord have never occupied the same place at the same time. There should be no fighting without just cause. If there is cause, the fighting should not consist of attacks made in the back, in the privacy of the superior's office, or in a committee room. It should be with the weapon of open assertion, sanctioned, and even compelled by regulation. A healthier spirit would prevail, and there would be little soil where deceit, malice and slander could be cultivated. Under a system of "having it out" int he open the parts where the friction takes place would no longer be hidden from the master machinist, the Secretary of the Navy. He could then go straight to the spot with his tools and fix things,—or people.
If someone would concoct a potion that would cast out greed, malice, envy, and uncharitableness from official life, and put the price of it, say at $6,000,000, Congress would make a better investment in the purchase of it for the navy than by appropriating a similar sum for the monster battleship now being discussed, war or no war. Sometimes, in the turmoil of our doing things or trying to do them, one might, barring the scenery and such, imagine himself transported back to the middle ages of romance, with the swaggering men-at-arms, the sneaking courtiers, the jesters, yea, the hired ruffians, the king, the royal closet, and lastly, the axe and the block. Perhaps a reader will ask, "What are you aiming at? Trying to stop the planets in their course? For you have simply been referring to ordinary human nature as it has existed since man came and will exist till man passes." No, the writer has been referring to the human element of the United States Navy, which is the best aggregation of men in the world. The student of philosophy should not apply his ordinary deductions here. The aggregate power with in us can place and maintain us, as an organized force, on a plain to which the philosopher would have to make a special ascent.
The writer is not trying to instruct for the pleasure of telling what he knows that others do not. If we had a clearing house of knowledge in the navy very few would be left insolvent - there are not many fools among us. He is only pleading with his brothers to help make things better, and he believes a paper like this will do some good, at least among the earnest men.
Too often our efforts are expended against each other, as in a tug of war; and the navy profits nothing, so far as final results are concerned. Let us trample down some of the greed and forget stale prejudice, and,
"With a long pull, and a strong pull,
And a pull all together,"
do things for the navy as a whole.