The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-11-28
DEFICIT GROWS
TO $4,000 IN
S1ATElNDUSTRY
Figures Reveal Situation of
H0mebuilders Association
as Of October, 81
POSSIBLE LOSS s25o,ooo
Increase Over Estimated Cost
of Houses is 81 Per Cent
Complete List Shows
POSSIBLE LOSS $25o,oot

Complete List Shows,
The Homebuilders Association
had on October 81 when a bal.
ance sheet was made a deficit
of $91,l45.73.
The final cost on So houses
constructed by the state home
building body is 81 per cent
higher than the estimated cost,
The possible loss if settle
ment were made on the basis of
the estimated cost of the houses
would exceed $25O,000.
This statement of affairs is
shown from the books of the as
sociation by j. B. Adams, man.
ager Of the association, in the
last few months. Mr.. Adams
succeeded Manager Blakemore
and has been engaged in clean
ing up accounts on the homes
most Of the time. ..-.#.
The total increase in the cost
Of completed structures over
the estimate is $172,938.72. 1t
is expected that persons for
whom houses were built will
seek to avoid paying this excess,
which would increase the de-
ficit.
In arriving at the cost of houses 2
per cent Of the cost was added for
administrative expense. This left an
administrative expense excess Of $49,-
10000 which is charged against the
state association; and under the home
building law is paid by taxpayers. The
administrative expense charged
against taxpayers Is $927.35 for each
house built.
classification Of Deficit
The assification OF the deficit in-N
cludes the following losses: Admins
trative expense, $49,15O.61; drop on
material prices, $26,372.72; interest
on stock charged off, $8,162.97; dam
age to property account, $50O.0O. In
cluded in the administrative expense
are payments to the Equitable Audit
company which was employed to
make an analysis of cancelled checks,
etc, Of $4,000. Some homebuilders'
lumber has been sold since building
was suspended. The loss on this is
about 40 per cent. &s.... L.
Below is given the estimated cost
of each house and the total cost COM
plete as of October %, 1921.
The percentage of increase of COM
,pleted work over estimated cost-61
per CENTS greater than had prev
ious been reported, the highest fig
ure having been estimated from
available information being 40 per
cent. The deficit is larger than was
found last winter by the investigating
committees.
Complete figures on the home of
William Lemke, in Fargo, which has
been much discussed: The yshow the
estimated cost at $12,5OO; extras, $2,-
900; total cost 2l,379.S1, which does
not include some materials purchased
independently of the association by
the builder. s,,, s,.,g sn.s ...
The situation is one which is ex-
pected to be taken up by the new ad-
ministration, and the solution may
await court ruling as to whether
the builders of houses or the state
shall stand the loss as represented by
the increase in the completed costs
over the estimated costs.
No Contracts Signed
Thus far no contracts have been
signed on any of the houses built by
the association. Five contracts have
been signed on houses purchased,
which are not included in the figures
given below.
An opinion of Attorney General
Lemke OF Nov. % states that "as
long as both legal and equitable title
remains in the state the house is not
taxable and in no event can taxes be
levied against property Of the state
except as assessments as to special
improvements. Taxes are not to be
charged against the property unless
lie UulAuCt HdS dH dDoOluLc SoASC'
ance Of the property. Under this
rule the state pays the taxes on the
houses, and they cannot be sold.
Homebuilders' houses have been
advertised for sale on account Of de-
linquent taxes in Fargo and Mr.
Adams went to Fargo yesterday tc
deal with that situation and others
r. r. McClintock, editor of the Far.
go Courier-News, paid about $500 tc
the association and then refused tt
take his house, which the association
went ahead and completed.
Comparison with Estimates
Following is the estimated cost o
the houses as given the purchaser b,
James T. Baker, superintendent o
construction for the homebuilders
and the final cost:
Bismarck Project No. I
Home Buyer Est. Cost. Tot. Co.'S
A-Mossbrucker $4,000 $6,310.0
B-FCssum 4.520 7,29S.8
eSvensgaard 400 1855
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