Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-11-28
SOME COST MORE
THAN DOUBLE THE
PROPOSED PRICE
Financial Statement Shows
That Association Has
$91,145 Deficit.
Several Persons For Whom
Homes Were Built Re
fuse to Pay.
lRy starr correspona.aA

tBy staff CorresponAsuaA
Bismarck. N. D.. Nov 2s.-Fifty
residences erected by the North Dar
kota Homebuilders' association have
cost on the average over so per cent
more than the estimate furnished by
officials Of the association to the buy
ers at the time the building of the
houses was ordered.
In many cases the final cost is more
than double the original estimate
which the unfortunate buyers expect
eo would at least approximate the
final cost
These facts are brought out BY a
study Of the records of the associa-
ton and comparison of the sheets
showing the original estimate. and
those showing the actual cost as now
determined.
The financial statement as of Oct.
81, last, also show that the associa-
tion now has a deficit of $91,145 and
this will be greatly increased unless
the home buyers can be compelled to
pay for their homes at the cost as
now apportioned. There Is a general
refusal to do this at present and the
outcome Of any court action which
might be launched to enforce collec-
that compromise may be found
necessary.
May Increase Greatly.
If this is the case the final deficit
of the association on the work now
completed will be nearer 100000
than 100000.
T In regard to the immense increase
In the costs of the houses as shown by
the final figures. j. B. Adams, now
manager of the association, claims
that the fault lies with j. B. Baker,
formerly superintendent Of construc-
tlon for the association, who was in
capable Of making correct estimates,
and in faulty accounting work.
In connection with the accounting
work, he claims that he was instruct
ed when he became manager to leave
that side of the BUSINESS in the hands
Of the Equitable Audit Co. Of Fargo
and st. Paul which has been closely
connected with The Nonpartisan
league and its subsidiary concerns.
ABOUT .$22s 300 has been paid to the
concern for its auditing work for the
Home Builders association, Mr..
Adams claims.
A Typical Instance.
William Lemke's house in Fargo
concerning which there has been
much dispute seems to furnish typ
ical instance Of the methods used in
handling the affairs of the associa-
tion.
The records show that the original
estimate of the cost of the house. and
the extras ordered by Mr. Lemke was
$14,5e0. This was made in the sum
mer of 1920.
In June, 1921, a check up was made
by the Equitable Audit Co., according
to Mr.. Adams, anS9the report showed
that the states share in the house ex-
pense was only in the neighborhood
Of $4,000.
Several months later however a re-
check was made by Mr. Adams, the
latter claims, and he discovered that
in the previous audit some $4,000
worth of material paid for by the
state had dbeeearrerlooked or at least
omitted with result that the state
was found / have invested in the
house a totaiof S9.371.55, although it
had been cor astrn.ly claimed that
the law which provides that no more
than $4,000 might be furnished by the
state for any city residence had been
complied with at all times.
Makes Full Settlement.
Mr. Lemke was unaware of this
fact however. Mr.. Adams claims, until
he himself informed him of it few
weeks ago. Since that time Mr.. Lemke
has made a full settlement with the
state, and the title to the house is in
his wIfe'S name.
r. NJ. McCintock. managing editor
of the Fargo Courier-News, however.
is declining to pay up on the basis Of
the final estimates, although he has
been stuck to a much smaller degree
than many others. The original esti-
mate on his house was $4,850, the
records show, while the final cost now
assessed against it is $6,53471.
AS it happened. however, the house
Anf E.
deposited one-fifth of the estimated
cost as is required by law, his deposit
having been only 5000. According to
Mr.. Adams he now claims that this
MARKS the deal not binding, and will
not accept The house which has tsen
competed. and is standing idle.
z Hagan Moves.
j. y. Hagan, o,.lner commissioner
"f agriculture ard labor, has a,so
moved out of his house which cos,
$8,Sss instead of $5.43S as originally
figured. and has told the state that it
may keep the house at that price.
Court action will probably be neces-
sary to collect from him.
Tax Commissioner George Wallace
was also among those heavily stung
His houses cost Is now figured at
1,0S1.57. more than double the orig.
tnal estimate OF $3.50. c. b. Rosen,
oA o1SildICk 1S HuW OelnE asked TO
pay Sls,715 on an original estimate Of
$500.
The examples given are typical. A
complete list comparing the original,
estimates and nnal costs OF the houses
erected by the state win be found at!
the conclusion Of this article.
Situation Is Serious.
Taken in conjunction with the de-
ficit already mentioned the situation
is serious as it will probably be Inn.
possible to collect the full amount on
most OF these houses. & &
There are several factors entering
into this deficit OF s1.145.73 already
admitted by the management Of the
association. s4Si a sS s u
The first ofsthese is loss on material
purchased by the association at peak.
prices. and then sold at q consider
able loss when II was found nocessary
to raise money by any and ali means.
One example Of this sort swas revealed
at Grand Forks during the paSts sum-
mer. The total loss incurred by thes
association from the cause Il ret byt
the manager at $2s, ,372.
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