This Bureau consists of the Governor, who is Chairman; Secretary
of State, Comptroller of the Treasury, State Treasurer, Chairman of
the State Roads Commission, Commissioner of Motor Vehicles, Chair-
man of the State Board of Welfare, Chairman of the State Board of
Health, State Superintendent of Public Schools, President of the Uni-
versity of Maryland, and the Superintendent or managing heads of the
following institutions: Crownsville State Hospital, Eastern Shore
State Hospital, Rose-wood State Training School, Spring Grove State
Hospital, Springfield State Hospital, Maryland Tuberculosis Sana-
torium, Maryland State School for the Deaf, Montrose School for Girls
and Maryland Training School for Boys.

The Chairman of the Bureau appoints a Secretary-Treasurer who
shall be known as the Purchasing Agent.

The Central Purchasing Bureau of Maryland was established in
consequence of an act passed by the Legislature of 1920 (Chapter 184,
1920). The Bureau was organized in June, 1920, and immediately took
over the purchasing of all State Departments and Institutions with the
exception of the State Roads Commission.
During the last fiscal year, purchases in excess of $2,000,000 were
made.

The principal functions which this office has endeavored to carry
out are as follows:

First: The securing of lower prices by reason of bulk purchases.
Comparison between the prices paid on consolidated quan-
tities and those which individual institutions would pay
show a saving of not less than 10 per cent.

Second: Standardization of commodities in common use, resulting in
a decrease in the varieties purchased with the consequent in-
crease in the volume of purchases of standardized articles.

Third: Because of the volume of consolidated purchases, original
sources of supply can be dealt with, resulting in the lowest
possible price.

Fourth: Warehousing. A warehouse of 18,000 square feet capacity is
maintained in Baltimore City for the storage of staple sup-
plies purchased in quantities on favorable markets. Such
supplies are paid for out of a Revolving Fund of $100,000,
which is available through Legislative appropriation. This
provides for prompt payment of bills and all invoices subject
to discount are paid within the prescribed period. The sav-
ing in cash discounts alone more than pays for the cost of
maintaining the warehouse.

Because of this ability to warehouse considerable quantities of
staple commodities and cash payment for same, lowest possible prices
are secured. An accounting system has been developed, by means of
which, through simple debit and credit entries, funds are transferred
from Budget appropriations of Using Agencies to reimburse the Re-
volving Fund. Supplies are withdrawn from the warehouse with a
consequent lessening in the amount of clerical labor on the part of the
Using Agencies in the payment of invoices.

Monthly meetings are held with the Superintendents of the various
State Institutions and other State Agencies present, at which time
samples are examined and contracts awarded. These monthly meetings
furnish a good opportunity for the heads of the various State Agencies
to meet and exchange advice with reference to the conduct of their
departments and institutions.