field State Hospital, Maryland Tuberculosis Sanatorium, 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 he known as the Purchasing Agent.

The Central Purchasing Bureau of Maryland was established in con-
sequence 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 for all State Departments and Institutions with
the exception of the State Roads Commission.
During the first year of its existence the Bureau purchased materials,
supplies and equipment amounting to approximately $800,000. During
the last fiscal year, purchases in excess of $2,500,000 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. Corn-
parison between the prices paid on consolidated quantities and
those which individual institutions would pay sbow a saving
of not less than 10%.

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 sup-
plies 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 dis-
count are paid within the prescribed period. The saving 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 Revolving
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 Supplies are withdrawn from the warehouse with a consequent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 de-
partments and institutions.

Every advantage is made of the facilities which the State has for
the testing of materials, supplies and equipment, determining those
commodities most suitable for use. Advice is also sought of the various
scientific agencies of the State to determine the composition of com-
 
 
 
modities offered for purchase, and subsequently to determine the com-
parison of delivered articles and samples submitted.