BUSINESS ADMINISTRATION 
 
 OF 
 
 State Institutions 
 
 IN ILLINOIS 
 
 The Financial System in Iowa and a Report to Governor Charles S. 
 Deneen on the System in the State of New York. 
 
 By FRANK D. WHIPP, ' 
 
 Department and Institution Auditor of the Governor’s Office 
 
 1908 
 
 SPRINGFIELD: 
 
 Illinois State Journal Co., State Printers 
 • 1908 
 
Digitized by the Internet Archive 
 in 2017 with funding from 
 
 University of Illinois Urbana-Champaign Alternates 
 
 https://archive.6rg/details/businessadminist00whip_0 
 
^ \c • — • 
 
 ADDRESS BY FRANK D. WHIP? TO THE STATE CON- 
 FERENCE OF CHARITIES, JACKSONVILLE, 
 
 ILL., OCT. 10, 1907. 
 
 Business Administration of State Institutions. 
 
 In the business administration of the State Charitable and Reforma- 
 tory Institutions of Illinois, it has not been the policy of the officials to. 
 minimdze the cost of maintenance at the expense of the thousands of un- 
 fortunates in their charge. It is not a question of how much it costs to 
 support these inmates. The paramount aim is to cure the afflicted, 
 educate the delinquent children, and make better citizens of the other 
 unfortunates. The people of this State want their unfortunates cared 
 for in the best possible manner. 
 
 Illinois with her 56,000 square miles of territory, 27 million acres of 
 improved land, coal mines, railroads, prosperous hanking institutions, 
 manufacturing and commercial enterprises, and more than 5,000,000 in- 
 habitants, is a State with great resources. It is abundantly able to care 
 for its wards in a respectable manner and the officials of our State In- 
 stitutions are endeavoring to do this. They are alive to the pecuniary 
 side of the management of the institutions and all of these things are 
 being acomplished without extravagance. They know that the bills have 
 to be paid, and unless expenses are kept within a reasonable limit, the 
 appropriations made by the General Assembly will not be large enough 
 to meet the demands. The question of economy is of vital importance 
 to the management of our institutions, and it is believed that our super- 
 intendents are doing all in their power, within reason, to minimize the 
 cost of maintaining the inmates. 
 
 A typical superintendent makes it his duty to inspect the garbage 
 l)arrels at his institution every few days, in order to ascertain whether 
 r there has been a waste of food, as he must see that everything in the na- 
 A ture of food is utilized ; he also keeps a close watch on the kitchens to 
 y prevent any pilfering of staple articles, such as sugar, coTec, tea, butter, 
 j' etc. He is in close touch at all times with otlier departments in order 
 to be cm-tain that economy is practiced. He looks into the method of 
 ^ handling, cooking and serving the food, and has it so prepared that it is 
 palatable. A careful study of the financial statements of the snperin- 
 tendents who have been looking after these details, shows that their 
 efforts have not been in vain. Their per capita cost is always the lowest 
 and at the sam.e time the inmates liave been well cared for. 
 
4 
 
 In one item alone, of expense, the State expects in the future to make a 
 great saving. The last General Assembly appropriated funds to modern- 
 ize the heating and lighting plants at the various institutions. By the 
 use of chain grates and other new appliances there v/ill be a considerable 
 saving in fuel. At Kankakee, where they are installing a new heating 
 plant, it is expected to save $20,000 per annum. 
 
 The management of the Western Hospital for the Insane has de- 
 creased the cost of fuel more than 33i/;3% by using chain grate stokers. 
 
 Since January, 1907, when the chain grates were installed at Joliet, 
 to June 30, 1907, the penitentiary has saved $2,096.10 in fuel. 
 
 At the Soldier’s and Sailor’s Home, during the year ended June 30, 
 19’06, the institution used 8,423 tons of coal at a cost of $16,530.25. 
 
 During the following year ended June 30, 1907, it used 8,617 tons of 
 
 coal at a cost of $12,873.36, or a saving of $3,656.89, although 194' tons 
 were used in excess of the plevious year. This saving is attributed to the 
 use of modern stokers and also to the fact that the coal is purchased on 
 the heat unit plan. Scientific tests are made showing the heat vglue of 
 .the coal and bills are settled on that basis. The test enables the institu- 
 tion to get what it is paying for, no matter what mine the coal comes 
 from. The coal from seme of the mines does not contain as much car- 
 bon as that of other mines, and therefore the heat produced is not as 
 great. 
 
 During the 5^ear ended July 1, 1906, the Eeformatory at Pontiac ex- 
 pended $20,560.84 for coal. For the year ended July 1 of this year it 
 
 only expended $15,186.98, or a saving of $5,373.86, which is also due to 
 chain grates and other modern appliances. 
 
 Industries. 
 
 Many of the charitable institutions have installed industrial enter- 
 prises, and manufacture certain articles used in the institution. The law 
 will not permit them to manufacture articles for the market, but if they 
 were allowed to do this, it could be done with profit to the institutions. 
 There is not only the pecuniary aspect to be considered, but also the 
 mental and physical benefit derived from employment by types of defec- 
 tives deteriorating in idleness. With many patients, to be able to feel they 
 are in some measure earning their way, contributes to a more contented 
 state. 
 
 Interest on Public Funds. 
 
 Through the efforts of the Executive Department of the State several 
 of the banks in which the institution money is deposited now pay in- 
 terest on daily balances. The profit thus accruing to the institutions 
 will amount to considerable. This new departure is in line with what 
 has been done by the State Treasurer and by departments under Gover- 
 nor Deneen, in collecting interest on daily balances and crediting the 
 same to the State. 
 
5 
 
 Farms and Gardens. 
 
 It has been the policy of Governor Deneen to encourage scientific farm- 
 ing and gardening at our institutions. Many of them have large farms 
 and are raising an abundance of garden produce for institution con- 
 sumption. Some are raising poultry on a large scale. Hay and corn 
 are also grown in large quantities. As a rule, the institution superin- 
 tendents favor the maintenance of large herds of milk cows, so that the 
 inmates can be furnished with an abundance of wholesome milk. Each 
 institution should have a large farm, so that the labor of the inmates 
 could be utilized. The Governor has advised the institution officials to 
 take advantage of the soil experiments made at the University of Illinois, 
 to use fertilizers and select products adapted to the available soil; and, 
 in all cases, to employ competent and practical farmers and gardeners. 
 If these suggestions are carried out, such institutions as the Boys’ School 
 at St. Charles, the Eeformatory at Pontiac, and the two penitentiaries, 
 can raise garden produce on a large scale. The five hundred thousand 
 dollars appropriated for the new penitentiary site will enable the State 
 to start this industry. If this plan is feasible, the surplus product 
 might be interchanged between the State institutions at prices agreed 
 upon by the superintendents. This system is successful in Iowa where 
 the prices are fixed by the State Board of Control. If this industry 
 were carried out on a scientific basis it would add to the income of the 
 institutions and help to make them self-supporting. The knowledge of 
 farming acquired by prisoners would find them ready employment among 
 the farmers of the State, who clamor in vain for a supply of trained 
 farm labor. In any event, the experiment is worth trying. A high 
 standard of excellence in stock and farming methods would make 
 each of -these institution tracts of land a model farm, and constitute an 
 educational influence in the agriculture of its locality. 
 
 Financial System. 
 
 The question of remodeling the financial system of our State institu- 
 tions is a matter to which the General Assembly should give careful 
 consideration. Many of the provisions in the present law governing the 
 charitable institutions, which was enacted in 1879. are obsolete and fail 
 to meet the requirements of modern business conditions. At the time 
 the law was enacted the business of these institutions was so small that 
 their financial affairs could be handled in the manner contemplated by 
 the law without difficulty, but since then the institutions have increased 
 in number and size until a modern up-to-date law is needed. At the 
 time our present law went into effect there were ten institutions under 
 the State Board of Charities, with a population of 2,478 inmates, while 
 now we have seventeen institutions with a population of 13,474 inmates, 
 or an increase of 10,996. 
 
 In 1879 the Legislature appropriated $1,432,494 for the support of 
 these institutions, while this year the General Assembly appropriated 
 $6,588,402 — an increase of $5,155,908. 
 
6 
 
 For the food item alone the charitable institutions expended during 
 the year . ending June 30, 1907, $640,041.86, and the correctional in- 
 stitutions, $203,193.19, making a grand total for food of $843,235.05. 
 The quantity of the supplies purchased appears colossal, but it must be 
 borne in mind that there are about 20,000 people to be fed in the in- 
 stitutions. Fuel also is one of the largest items of expense for our in- 
 stitutions. All purchases are made by officials of the twenty different 
 institutions, some under the bid system and some on the open market. 
 There has been no uniformity in the grade of supplies purchased by the 
 institutions, as the policy of buying is controlled by the officials of each 
 institution. For instance, some of them consider it economy to buy the 
 best grade of everything and some purchase cheaper articles, all depend- 
 ing upon the judgment of the superintendent and trustees of each insti- 
 tution. These problems have often been discussed by members of the 
 General Assembly and the officials of our institutions. At this time I 
 am not prepared to recommend a plan for their solution, but am satisfied 
 that a change in the law is needed. 
 
 There are arguments for and against creating a State Board of Con- 
 trol. Some contend that the chances for wrong doing are fewer when 
 purchases are divided among twenty different places, and others main- 
 tain that it is easier to keep a check on three members of a Board of Con- 
 trol than it is to look after the affairs of eighty officials and trustees of 
 the institutions. Some favor a board to consist of reliable business men 
 who are experts in financial matters. One plan suggested is that, in- 
 stead of allowing each institution to do its own buying of staple articles, 
 we have one central agency by which supplies niay be purchased in large 
 quantities and delivered to the institutions as needed. Under this system 
 uniformity could be secured in the supplies used and purchases could be 
 made without reference to the interests of any particular locality. Such 
 interests are frequently detrimental to the best interests of the institu- 
 tions. Contingent funds could be provided for the use of the officials in 
 making emergency purchases, and requisitions for regular supplies could 
 be made quarterly in advance. It wmuld relieve the officials of financial 
 details and enable them to devote their whole time to the care of the in- 
 mates and if an arrangement could be made to relieve the State Board of 
 Charities of the function of supervising accounts, it could devote more 
 attention to the broader humanitarian phases. Officials of large corpor- 
 ations express amazement at the methods provided in our law for pur- 
 chasing the supplies of the State charitable institutions, and say it would 
 be better to centralize their financial control. 
 
 It is almost too well known .to call for comment, that now no large 
 business concern permits each department to do its own buying of sup- 
 plies without some supervising control. Few are the large corporations, 
 the volume of whose purchases exceeds the aggregate of the supplies for 
 our State institutions, especially when it is borne in mind that among 
 the branches of the State government which could partake of the ad- 
 vantages of this system are six educational- institutions, the University of 
 Illinois, and five normal schools. Under the present law, the Board of • 
 Ciiarities audits each quarter the accounts of the seventeen State institu- 
 
7 
 
 tionSj which accounts have already been audited by the trustees of each'' 
 institution. This means that the trustees of each institution practically 
 audit their own accounts before they are paid by their local treasurer. 
 Under this system it is impossible for any one at Springfield, repre- 
 senting the State administration, to stop payment of any irregular ac- 
 count charged to ordinary expenses, as no one respecting the Executive 
 Department passes on the necessity for the expenditures until after the 
 bills are paid. The only remedy is to stop payment by the State Treas- 
 urer of appropriations for the ensuing fiscal quarter, until the accounts 
 of the preceding period have been adjusted. This way of adjusting 
 matters should be supplanted by some other remedy. All bills should be 
 properly audited, before payment, by some person not connected with 
 the institutions, and if found irregular or unnecessary, payment should 
 be stopped. 
 
 Another feature of centralizing the control of State institutions which 
 is worthy of consideration by the General Assembly, is the manner of 
 handling disbursements. It might be practicable to have the State 
 treasurer pay all bills from Springfield. The treasurer of the University 
 of Illinois resides in Chicago and all checks are paid through the State 
 Bank of Chicago. If this plan works satisfactorily at Champaign, why 
 could it not be done at Springfield ? 
 
 In this manner the state of Iowa handles all its business, except checks 
 for the total of the payrolls, which are sent to each superintendent by 
 the State treasurer on the first of each month, he issuing his individual 
 check to each employe. 
 
 System m Iowa. 
 
 Tw'o weeks ago I went to DesMoines, Iowa, for the purpose of making 
 a study of the methods in use in that state for the government of its 
 State institutions. I first visited the office of the Board of Control, and 
 later went to the hospital for the insane at Mt. Pleasant. By thus visit- 
 ing both the capitol of the state and the institution referred to I was 
 enabled to see the complete system. The Board of Control makes all • 
 contracts for furnishing supplies- except where it delegates authority for * 
 small purchases to the superintendents. Everything is bought with 
 freight prepaid and this enables them to make a fair comparison in prices. 
 Samples of goods are submitted with the bids and later, when the goods 
 are received at the institution, they are compared with the samples 
 on file with the Board of Control. All supplies must be purchased in 
 Iowa, provided the prices are the same, or lower, than those of outside 
 firms, but in no event can purchases be made outside at the expense of 
 the State. Sixteen tons of coffee are purchased at one time. Rice is 
 bought by the ton, and $15,000 of sugar is contracted for at one time. 
 Xot a dollar in cash is handled by the Board of Control. The miscel- 
 laneous income at the various institutions is remitted to the State treas- 
 urer on the first of each month and placed to the credit of the institution. ’ 
 The superintendents, stewards and storekeepers give bond. The Board of 
 Control keeps an account with the storekeepers of each institution and ' 
 
requires monthl}^ reports whi(3li have to be sworn to. The accountant 
 from the board checks up the storekeeper’s account twice a year. Each 
 cook makes a weekly dietary report, showing how many patients have 
 been fed and the quantity of provisions used, and this report has to be 
 sworn to. Mr. Cownie of the board informed me that the products of 
 the institution farms had nearly trebled since the board was created. 
 (Overproduction at one institution is relieved by exchange of products 
 with the other institutions on prices fixed by the board. 
 
 Unlike Illinois, the legislature of the State of Iowa bases all appro- 
 priations on a per capita allowance. For the insane it allows from 
 $144.00 to $156.00 per annum for each inmate. There are ten employes 
 in the office of the Board of Control. One accountant keeps the accounts 
 of fifteen institutions and also checks the storekeepers accounts at the 
 various institutions. The accounts of the. Board of Control and of other 
 state officers of Iowa are examined by an accountant employed by the 
 Executive Council, consisting of the elective officers of the State. 
 
 The arguments against creating a central board of control, resolve 
 themselves into the assertion that to concentrate such great power in any 
 single body of men is unsafe; that such a board of business rather than 
 professional men would be likely to give too exclusive attention to the 
 business, to the detriment of the medical side, of State institution a(^- 
 ministration. But the limits of my address will not permit me to go at 
 length into the merits of this contention. I therefore submit it in this 
 general form, along with my presentation of the other side of the ques- 
 tion, for your consideration. 
 
 Additional Boom for Inmates. 
 
 In the Illinois hospitals for the insane there are a number of inmates 
 who could safely be returned to their homes. Insanity is increasing so 
 rapidly that the room occupied by these patients could be used to ad- 
 vantage by other patients who need hospital care. It might be advisable 
 for the Legislature to provide for the appointment of a commission, to 
 act independently of the institution officials, to examine into the degree 
 of insanity of the inmates of insane hospitals, and to have those dis- 
 charged who could safely be returned to their homes. There are also 
 quite a number of inmates in the insane hospitals who own large estates 
 and could well afford care in private hospitals. Of course, the wealthy 
 pay their taxes the same as other people, but it would seem that where 
 a patient has ample funds and desires private care, it should be afforded. 
 
 Two patients in particular illustrate this situation. At Bartonville 
 there was at one time an inmate whose private estate w'as valued at 
 $100,000, and whose repeated requests for private care were denied by 
 his legal heirs, who compelled him to remain in the public hospital until 
 he died. Aside from the imposition upon the taxpayers, there is in- 
 justice in depriving a patient of special luxuries his means could provide 
 outside of the institution. 
 
 Today at Kankakee is a patient who has been there 25 years, during 
 all that time the recipient of a pension of $75.00 a month, in addition 
 
9 
 
 to a good private income. The public cannot realize, as do the superin- 
 tendents, the number of this class of patients being supported by the 
 State, and occupying room needed for others. 
 
 Quite a number of pauper insane in our hospitals are subjects of for- 
 eign countries, and the Legislature should also provide means to send 
 them to their home countries. This is done in New York, Massachu- 
 setts, and quite a number of our eastern states. If done in Illinois it 
 would result in a saving of expense, and additional room in our hospitals. 
 
 Some of our institution officials are making arangements, by paying 
 higher salaries, to have employes and their families live outside, except 
 where it is absolutely necessary to have them in the institutions. This 
 is desirable not only because it makes more room for patients, but elicits 
 better service from employes, thus freed a portion of each day from the 
 depressing influences of institution life. Facilities at the institutions 
 for getting to town are better than they were years ago, making this prac- 
 ticable now. 
 
 IxsANE IN County Almshouses. 
 
 It is the aim of Governor Deneen to give State care to every insane per- 
 son in the county almshouses of the State, and before he retires from 
 office it will be accomplished. The last General Assembly passed a law 
 providing for the transfer of all county insane to the State which will 
 aid materially in bringing about the desired results. 
 
 Civil Service. 
 
 Civil service is an important factor in the successful management of 
 our State institutions. Generally it gives satisfaction and the institu- 
 tion officials are well pleased with it. It certainly has been a step in ad- 
 vance. The Board of Civil Service Commissioners is doing much to- 
 ward a successful management of our institutions. 
 
 Auditing Accounts. 
 
 The auditing of the accounts of the State charitable institutions is be- 
 ing carefully done by the State Board of Charities. The inspections are 
 always made without notice to the officials. On visiting an institution, 
 the first duty of the inspector is to count the cash. Then he verifies the 
 books, in order to see whether the money received and disbursed has been 
 properly accounted for. Written reports of these inspections are always 
 made and if anything irregular is apparent it is taken up and adjusted 
 by the State Board of Charities, with the responsible official. 
 
 ^ During the year 1905, Governor Deneen employed me as one of his as- 
 sistants in his office and it is my duty, when called upon, to make special 
 investigations of accounts of institutions and departments. Through 
 the efforts of the Governor, in having the accounts of the various de- 
 partments audited, he has succeeded in recovering for the State, a sum 
 of over $150,000, since I have had charge of the work of auditing. This 
 sum does not include any part of the claim against the Auditors an ex- 
 Treasurers amounting to $321,000 or the claim against the Ilinois Cen- 
 
10 
 
 tral Eailroad Co. These examinations are not perfunctory but are thor- 
 ough in every particular. They have a tendency to make those in charge 
 more careful with their trusts, and at the same time secure uniformity 
 in accounts, which is important in making comparisons of the expenses 
 of one institution with another. A new departure in the Executive De- 
 partment is the examination of the sufficiency of bonds of State and in- 
 stitution officials. All sureties are required to schedule enough property 
 to cover the amount of the bond, and their financial responsibility is in- 
 quired into before the bond is approved by the Governor. When changes 
 are made in the treasurers of the institutions, I am expected to be present 
 in order to check out the old treasurer before the funds are transferred. 
 Another improvement, for which the State administration is entitled 
 to credit, is changing the form of the omnibus appropriation bill, 
 by requiring uniform blanks for itemizing traveling expenses. In 
 order to make each person responsible for expenditures, every such bill 
 has to be certified to as follows: 
 
 “I certify that the above account is correct and just; that the detailed 
 items charged within are taken and verified from a memorandum kept by 
 me; that the amounts charged for subsistence were actually paid, and the 
 expenses were occasioned by oificial business or unavoidable delays, requiring 
 my stay at hotels for the time specified; that I performed the journey with 
 ali practicable dispatch, by the shortest route usually traveled, in the custo- 
 mary reasonable manner, and that I have not been furnished with transpor- 
 tation, or money in lieu thereof, for any part of the journey herein charged 
 for.” 
 
 The system of accounts is not perfect, but we are doing all in our 
 power to bring it up to the highest standard. 
 
 It is noteworthy that during the Governor’s administration there has 
 been no shortage in the accounts of any of the officials of the State char- 
 itable institutions. The records are clean and the Governor’s steward- 
 ship in this respect has been well discharged. 
 
 Appropriations. 
 
 It is not my wish to bore you with statistics, but for the infornitstion 
 of those who desire to know how much the State of Illinois appropriates 
 each year for its unfortunates, and the number cared for, I may say that 
 the last General Assembly appropriated liberally for the institutions. 
 For the next two years it appropriated the sum of $6,588,402 for the 
 seventeen charitable institutions, and the sum of $1, 466,100, for the 
 reformatory and correctional institutions, besides appropriating $500,000 
 for a new penitentiary site, making a grand total of $8,534,502 for 
 charitable and correctional purposes. 
 
 Population of Institutions. 
 
 On the first day of July of this year there were 9,659 insane in the 
 State hospitals, and 3,815 inmates in the other institutions under the 
 jurisdiction of -the State Board of Charities. 
 
 On the same date the penitentiary at Joliet contained 1,584 convicts; 
 the penitentiary at Chester had a population of 976. The reformatory 
 at Pontiac cared for 1,080 boys, making a total cared for in the twenty 
 institutions of 17,114. 
 
11 
 
 In conclnsion, permit me to add, that the cooperation of the so-called 
 ^^minor^^ employes is far from a “^hninor^^ factor, in successful administra- 
 tion. ^^0 one can come much in contact Avith the State institutions with- 
 out learning that the employes are doing noble work in relieving the 
 suffering of the poor unfortunates, and in many cases for a compensa- 
 tion Avhich is ‘'^moderate’^ to say the least. This summary of institu- 
 tional requirements would be incomplete without a word of recognition 
 for their self-sacrifice, and praise for their growing enthusiasm. 
 
12 
 
 REPORT ON THE NEW YORK FINANCIAL SYSTEM 
 FOR MANAGEMENT OF STATE INSTITUTIONS 
 MADE TO GOVERNOR DENEEN, APRIL 
 3, 1908, BY FRANK D. WHIPP. 
 
 Honorable Charles S. Deneen, 
 
 Go'ver’nor of Illinois, Spiingfield. 
 
 April 3, 1908. 
 
 Sir : I returned last night from New York where I have been looking 
 into the system of management of the State institutions. On Monday 
 and Tuesday I was in Albany visiting various departments in the State 
 House and on Wednesday in New York City at the office of the Pur- 
 chasing Steward on Ward’s Island. I furnish a memorandum report 
 as follows: 
 
 New A^ork State Institutions. 
 
 The financial affairs of the New York State institutions are managed 
 in three groups. Thirteen of the institutions which are for the care and 
 custody of the insane are supervised by the State Commission in Lunacy, 
 seventeen State charitable institutions are under the Fiscal Supervisor 
 for State charitable institutions and four prisons, one reformatory and 
 two institutions for insane criminals are under the jurisdiction of the 
 superintendent of State prisons. 
 
 All employes of institutions are under civil service and their salaries 
 are fixed upon a uniform basis by a commission consisting of some of the 
 State officers. 
 
 The financial system for each group of institutions referred to above 
 is described as follows : 
 
 Commission in Lunacy — This commission consists of three members, 
 one physician, one attorney, and one reputable citizen. The president 
 of the commission receives a salary of $7,500 per annum. Each of the 
 other commissioners receives an annual salary of $5,000. They are ap- 
 pointed by the Governor. The commission is provided with a secretary, 
 auditor and a clerical force. The financial affairs of thirteen institutions 
 are controlled by this commission. The names of these institutions are 
 as follows : 
 
 Utica State Hospital, in the City of Utica, in the county of Oneida. 
 
 Willard State Hospital, in the town of Ovid, in the county of Seneca. 
 
13 
 
 Hudson River State Hospital, near the city of Poughkeepsie, in the county 
 of Dutchess. 
 
 Buffalo State Hospital, in the city of Buffalo, in the county of Erie. 
 
 Middletown State Homeopathic Hospital, in the city of Middletown, in the 
 county of Orange. 
 
 Binghampton State Hospital, in the city of Binghampton, in the county of 
 Broome. 
 
 Rochester State Hospital, in the city of Rochester, in the county of Monroe. 
 
 Saint Lawrence State Hospital, in the city of Ogdensburg, in the county of 
 Saint Lawrence. 
 
 Gowanda State Homeopathic Hospital, in the town of Collins, in the county 
 of Erie. 
 
 Long Island State Hospital, at Flatbush, in the borough of Brooklyn in the 
 city of New York. 
 
 Manhattan State Hospital, on Ward’s Island, in the city of New York. 
 
 King’s Park State Hospital, at King’s Park, in the county of Suffolk. 
 
 Central Islip State Hospital, at Central Islip, in the county of Suffolk. 
 
 All supplies are bought by purchasing stewards. There is one pur- 
 chasing steward for four of the largest institutions in the State. He 
 has an office in N'ew A"ork City which is located on Ward’s Island. Each 
 of the other institutions also have purchasing stewards. The supplies 
 are purchased subject to the approval of the institution superintendents. 
 The law requires quarterly estimates to be filed by the institutions 
 with the Commission in Lunacy showing a list of the supplies to be pur- 
 chased. These are filled monthly. The estimates are subject to re- 
 vision by the Commission in Lunacy and the approval of the State Comp- 
 troller. No money can be drawn from the State treasury unless the 
 estimate is certified to. There is one treasurer for the thirteen institu- 
 tions and he resides at the capital of the State. When estimates have been 
 properly certified to the money is deposited by the State treasurer with 
 the treasurer for the institutions to pay employes and bills incurred. 
 Each institution is allowed to include $1,000 in their estimate for which 
 no details have to be shown. The institution treasurer remits to the 
 superintendent the total amount of each monthly payroll and he pays 
 each individual in cash. 
 
 A purchasing committee of the stewards meets every three months to 
 receive bids for staple articles bought in large quantities and all con- 
 tracts made therefor must have the approval of the Commission in Lun- 
 acy. Proposals are sent out by mail to a number of firms and samples are 
 submitted. The committee has standard samples on hand and the sam- 
 ples submitted by the different firms must grade up to standard. No 
 advertisements are inserted in newspapers asking for bids. 
 
 The Commission in Lunacy appoints an attorney for each hospital. 
 
 All of the institutions are required to remit all receipts from mis- 
 cellaneous sources to the State treasurer once a month. 
 
 Comparative Statement — A comparison of the expenses of the New 
 York institutions for the care and treatment of insane with like institu- 
 tions in Ilinois show that for the year 1907, New York with thirteen in- 
 stitutions and a population of 26,618 insane, cost $183.83 per capita, 
 while Illinois with six institutions and a population of 9,214, cost $158.54 
 per capita or $25.29 less than New York. This shows that the per capita 
 cost of maintaining the insane in Illinois is approximately fourteen 
 per cent lower than it is in the State of New York. 
 
14 
 
 In New York $76.05 per capita is expended for salaries and wages, 
 while in Illinois it cost $59.67 or $16.38 lower. The New York per 
 capita cost for this classification is 41.4 per cent of the total expenditures 
 and in Illinois it is 37.7 per cent. 
 
 The food supplies in New York cost $54.56 per capita and in Illinois 
 $45.33 or $9.38 lower. This is 29.7 per cent of New YorFs total expen- 
 ditures and 28.6 per cent of the cost of Illinois. 
 
 Illinois expends more per capita for clothes than New York. In New 
 York it costs $9.34 and in Illinois $11.94 or $2.60 more than New York. 
 The percentages of the total expenditures on this item are New York 
 5.1 per cent and Ilinois 7.5 per cent. 
 
 Illinois also expends more pc/r capita for medical supplies. It costs 
 $1.17 in New York and $2.08 in Illinois or 91 cents more in Illinois. 
 The percentage of the total on this classification is New York .6 per 
 cent and Illinois 1.3 per cent. 
 
 Fuel, light and water cost $17.84 per capita in New York and $13.49 
 in Illinois or $4.38 lower in Illinois. The percentage of this item is New 
 York 9.7 per cent and Illinois 8.5 per cent. 
 
 Other miscellaneous ■ classifications of expense cost New York $24.84 
 per capita and Ilinois $26.03 or $1.19 more in Illinois than New York. 
 
 The percentages on this are New York 13.5 per cent and Illinois 16.4 
 per cent. A tabulated statement is attached showing the per capita cost 
 referred to and the percentages. 
 
 Each hospital for the insane has a local board of trustees but its 
 powers are only advisory. At one time these boards were all al)olished 
 but owing to public sentiment the boards were reinstated. 
 
 Fiscal Supervisor por State Charities. 
 
 The seventeen institutions under the jurisdiction of this official are: 
 
 Western House of Refuge for Women ....Albion 
 
 State School for the Blind Batavia 
 
 Soldiers’ and Sailors’ Home Bath 
 
 New York State Reformatory for Women Bedford 
 
 New York State Reformatory Elmira 
 
 New York State Training School for Girls Hudson 
 
 Thomas Asylum Iroquois 
 
 New York State Woman’s Relief Corps Home Oxford 
 
 New York State Custodial Asylum Nevmrk 
 
 New York House of Refuge Randall’s Island 
 
 New York State Hospital for Incipient Tuberculosis Raybrook 
 
 State Industrial School Rochester 
 
 Rome State Custodial Asylum Rome 
 
 Craig Colony for Epileptics Sonyea 
 
 New York State Institution for Feebleminded Children Syracuse 
 
 New York State Hospital for the Care of Crippled and Deformed 
 
 Children Tarrytown 
 
 Eastern New York Reformatory Napanoch 
 
 The Fiscal Supervisor of State Charities is appointed by the Governor 
 and receives an annual salary of $6,000 per annum. He is provided with 
 an office in the Capitol building and clerical assistance. 
 
 He has power to examine into all matters relating to the financial 
 affairs of these institutions. 
 
15 
 
 Estimates similar in character to those used by the institutions for the 
 insane are furnished by the charitable institutions and are subject to 
 revision by the Fiscal Supervisor. The Fiscal Supervisor invites bids 
 for staple articles purchased in large quantities which are bought jointly 
 by the institution superintendents and boards of managers. Committees 
 are appointed from the superintendents and boards of managers to make 
 these purchases subject to the approval of the fiscal supervisor. All of 
 the institutions have local treasurers but in some cases the superinten- 
 dent acts in that capacity. Each institution has a board of trustees but 
 their powers are only advisory. 
 
 The plans for all buildings have to be submitted to the Governor for 
 his approval. 
 
 Other requirements of the law are similar in character to those de- 
 scribed for the hospitals for the insane. 
 
 Superintendent of State Prisons. 
 
 The institutions under this official are : 
 
 Sing Sing Prison. 
 
 Auburn Prison for Men, 
 
 Auburn Prison for Women. 
 
 Clinton Prison. 
 
 Eastern New York Reformatory. 
 
 Matteawan State Hospital for Insane Criminals. 
 
 Dannemora State Hospital for Insane Convicts. 
 
 Supplies are purchased on the estimate system the same as used by • 
 the other institutions. The warden or medical superintendent does the 
 buying. Every bill or estimate has to be approved by the Superintendent 
 of Prisons and by the State Comptroller. The money for the payment of 
 bills is deposited to the credit of the warden or the institution treasurer 
 as the case may be. The law does not require officials to advertise for bids. 
 
 The industrial funds of the prisons in the hands of the wardens can 
 only be checked out by them. Each check has to be countersigned by the 
 State Comptroller. The State Comptroller can order the warden to 
 remit to the State treasurer such amounts as are not needed for the in- 
 dustries. 
 
 In reading the prison law for the state of l^ew York I found one sec- 
 tion which. appeared to me to be quite out of the ordinary. It is as 
 follows : 
 
 “The prisoners shall be supplied vuth a sufficient quantity of inferior but 
 wholesome food.” 
 
 I believe an improvement could he made in the Illinois system regu- 
 lating the finances of the State institutions. There should i)e some su- 
 pervising control over the expenditures and this could be done without 
 materially changing the organization as it exists today. Some changes 
 could be made in our law and the office of Fiscal Supervisor could be 
 created. Respectfully submitted, 
 
 F. D. WlIIPP; 
 
 Department and Institution Auditor, 
 
16 
 
 Comparative Statement. 
 
 Expenses of New Yoi’h Institutions for the Care and Treatment of In^ 
 sane compared with Illinois Institutions for Insane, for year 1907. 
 
 Total per capita cost thirteen New York institutions (gross) : $183 83 
 
 Total per capita cost six Illinois institutions (gross) 158 54 
 
 Illinois institutions cost less per capita $25 29- 
 
 Per cent of decrease, approximately 14?S 
 
 Classification. 
 
 New York (Av. 
 population 26,618) .. 
 
 Illinois (Average 
 population 9,214). 
 
 Illinois increase 
 over New York 
 
 Illinois decrease 
 over New York 
 
 Percent of expendi- 
 tures in New York. 
 
 Percent of expen- 
 ditures in Illinois... 
 
 Salaries and wages 
 
 $76 05 
 
 $59 67 
 
 
 $16 38 
 
 41.4 
 
 37.7 
 
 Knod supplies 
 
 54 56 
 
 45 33 
 
 
 9 23 
 
 29.7 
 
 28.6 
 
 Clothing and bedding 
 
 9 34 
 
 11 94 
 
 $2 60 
 
 
 5.1 
 
 7.5 
 
 Medical supplies 
 
 1 17 
 
 2 08 
 
 91 
 
 
 0.6 
 
 1.3 
 
 Fuel, light and water 
 
 17 87 
 
 13 49 
 
 
 4 38 
 
 9.7 
 
 8.5 
 
 Miscellaneous expenses 
 
 24 84 
 
 26 03 
 
 1 19 
 
 
 13.5 
 
 16.4 
 
 Totals 
 
 $183 83 
 
 $158 54 
 
 $4 70 
 
 $29 99 
 
 lOOf. 
 
 100^