The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-03-01

The North Dakota Industrial Pro-
gram really shows loss, the amount
Of which is not possible to determine
for its operations during the last year.
according to Herbert Temple of Tenn
pie Webb and company, certified pull
lie accountants of Minneapolis,
The deduction of Mr.. Temple was
based on the Industrial Commissions
financial statement Of the industries.
He was brought to Bismarck by the
house investigation committee 70
make an analysis Of the Bishop.
Brissman and Equitable Audit-Indus-
trial Commission reports
On the witness stand this morning
at the house committee hearing in
the courthouse, Mr.. Temple made his
analysis Of the statements with refer
ence to the alleged profits of the in
dustries. ...
The summary of profits of the In
dustrial Commission listed as profits
of the Bank Of North Dakota $175, $685.
so. Mr.. Temple said that interest
earned and uncollected should be ell
minated a total of 1859, 437 .9S, an ap-
propriate reserve set up for possible
losses to be sustained by the Bank
OF North Dakota in closed banks. On
this basis he said:
"1t appears that the surplus of
S175,O00 did not exist and was wiped
out" ~-,. X.
He gave further consideration 20
the possibility Of the bank facing for
closure proceedings II it failed to pay
the $1.000,000 loan for which it hypo-
thecated bonds.
Summarizing It.
Taking then the Home Builders de-
ferrel expense Of $4,000, as listed
by the Industrial Commission; ex-
penses Of the Industrial Commission
in organization work, and the $751;
0SS.09 deficit admitted by this re-
port on the Drake mill, which the In
dustrial Commission subtracted from
the $175,99S.50 Of bank profits to de-
termine a net profit Hof $4,000 for
the industries, and considering the
bank deficit on the basis above out
lined, the accountant said:
"The net profit Of $116,00O does not
exist, and there really is a large de
ficit, the amount depending upon the
realization of possible losses"
Mr.. Temple was first on the witness
stand last night when he presented
his analysis of the various statements.
He, F. W. Cathro, John Steen and o.
E. LOfthus were this mornings wit
nesses. After they had completed
their testimony it was announced BY
the committee counsel that as only Il
few days remained in which to com
plete the report, that no more meet
ings should be held, except called
meetings. ~. FL
The loss of the Mill and Elevator
Association for the year 1920 should
be $321,756.40 instead OF $17,66S.31 as
shown by the Industrial Commissions
report, Mr.. Temple said.
The Industrial Commission report
carried separate the S1766S.31 loss on
the Drake mill and $15,0S8.09 of or
ganization expense. Both properly
were chargeable to the association,
Mr. Temple said, making his analysis
and compilation Of figures. 3.
During his testimony Mr.. Temple
referred to the Industrial Commits
sion's manner of setting up figures IS
"old fashioned" debit and credit sys-
tenn. .-H.. .n4
There was large crowd in the
courtroom last night when Mr.. Temple
presented his analysis. He was ask
ed to read the payroll list OF the
Drake mill, He read list Of five
millers, six packers and seven engin-
eers, employed at the mill. The sal
ary amounts indicated that they were
employment for different periods dur
ing the year. The list brought a
laugh from the crowd. Twenty-onc
persons were listed on the payroll
during the year.
Asked if any person could make any
analysis of the Home Builders repOr.
he said that they could not.
WAS it possible to really arrive
at a conclusion as to whether they
lost money or 'not?" he was asked
Custom of Contractors
He said the usual custom of large
contractors was to set up accounts
showing the cost of each contract that
enters into a house, keeping track OF
the amount going ror plaster, etc,
but he said there seemed to be no in
formation aS tn individual costs OF
the Home Builders association.
"An average person could not pick
up and tell what anything COST" he
was asked.
oh, my no." he replied.
Asked about the capital of the bank
lConfinuod 0f 20 Sl