Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-02
REPORT FOLLOWS .
LINES OF AUDIT
FORMERLY MADE
Drake Mill is Shown in Re
port to Have Lost Large
Sum Of Money.
Almost Million Dollars Are
Shown to be Tied Up in
Mill at Grand Forks.

Mill at Grand Forks.
(By Staff Correspondent
Bismarck, N. D.. Feb. Am ex-
of the report of the state
Industrial commission on the state in
lustries which was filed Tuesday,
hows that in many respects it is. a
complete corroboration of the report
made last week by Bishop Brissman
I CO. The industrial commission re-
BORT was prepared with the help OF
he Equitable Audit company, con-
,ern in which the league members
nave always professed the greatest
confidence, while it has been fire.
luently charged that the audit report
prepared by Bishop Brissman & Co.
.anda purposes.
EVEN WORSE.
The fact is, however, that in
some respects the showing made
by the industries in the commits
siOn's own report is worse than
the one shown by Bishop Briss-
man audit. The Drake mill, for
example, in the commissions re-
port is shown to have lost over
$1,000, while no statement of
its gains or losses was included
In the audit previously made. In
the report filed Tuesday. Gov
crl,Or Lynn j. Frazier, Attorney
General William IIcmkc and j.
". Hagan, commissioner of agri-
culture and labor, practically ad-
nit the facts alleged ia the pre-
yious report regarding the loans
and deposits in c.osed !. banks,
and in addition admit that the
Drake mill suffered losses; that
more than a million dollars is
tied nm In loans to the state in.
dustries, with work suspended on
all of them with tho exception of +
the Drake mill, and admit that I.
1920, 900 has been poured Into the
.iisdustrics.. from the state bunk.
since December 3. the date of the
Bishop Brissman g. CO. report.
The industrial commission, report
Is silent ms TO the records. or
lack of records of the Home
Building association, and makes
no statement Of profits or losses
for that organization.
The Grand Forks Mill.
Included in the report of the indus
trial commission is statement OF tn
expenses of the Mill and Elevator as
soc c:ation at Grand Forks, in, connec
zion with the erection of the new
plant there.
1t shows expenditures as follows:
Materials for construction of tn
Grand Forks mill and elevator, $515,
l3O.95; labor, $250,493; sundry con
tracts. s1OS,619.1'l; advances on ma
',c%ial. $17.479.11; spur track, $13,
$50: tther. miscellaneous expense
hr;ng the expenditures in Gran'
Forks up to $907,$S5.1S.
In connection with the Drake mil
hc statement shows that during ina
calendar year the plant manufacture
a5.56S barrels Of flour and use
wheat that cost $259.02S.37. IN
}nan by the state bank to the Mill an
Elevator association is now $s5o'oot
The Bank.
The section of the report dealln
with the Bank Of North Dakota give
.ir,,i,s concerning the banks in whlc
;hc state money is redepos.ted or con
rcr,:ng' the banks which have re
tcived loans. The report OF the panh
,,era,ions lis based on the, assumptio
throughout that every transactlo
during the 18 months of it's exlstenc
'nsses whatever have been placed. IN
r.nort contains an attack on tn
%oyth Dakota Bankers association !
connection with the passage OF tn
initiated laws regarding the Bank
Nor1h Dakota. 1t is also charged ths
a boycott against the sale OF Nor!t
rako,a bonds Is being carried on .
financial interests outside of IN
state. a.s 80.
The report claims a profit of $1l6
427.75 for the state industries durin
,he 1S months they have been IN opel
, alton. According to its>own statemei
however, the only one of the lndu'
,rics which has shown profit is tf
Bank of North Dakota, Tor "hlch
nrofit of $175, ,99S.50 is claimed.
From this an admitted loss of SIT
G6S.31 by the Drake mill, and expen'
item Of $4,000 incurred by the HON
Euilding Association and an eApen'
item Of s11,S14.35 for the industri
commission along with charge
s15.0s9.O9 for the Mill and Elevate
Association is deducted. leaving a n
nrofit of S$116427.75 claimed.
"A further investigation of this pro
!, llnweyer. gives some interesting r.
suits.
In the first place among the asse
are listed SG,227, ,O40.44 redeposileu
hanks OF the state. Included In tn
sum, however, was $492,S46.05 whie
was deposited in banks which ha'
been closed This amount is listed
it's face value.
Likewise among the loans the r
norts admit that 1886. .638.64 is Il
amount of loans to banks now close
II is contended that this also may
listed at it's face value.
This makes total of $7S9,474.,
deposits in, and loans to closed ban
on December 81, 1920, the date
making the report. This is an evt
worse showing than that made in Il
audit report prepared by Bisho
BrisHnan & Co. on December 8 VIII
the loans to, and deposits In clos'
banks amounted to S0.7l1.S9. u
Bills Receivable Past Due.
According to the report of the
state industrial commission on
December 81 !, the bills receivable
Of tho Bank OF North Dakota
Bismarck, N. D.. Feb. 2.Annu
: report OF the North Dakota industri
commission on the condition Of Il
state industries was presented yeste
day to the governor as the law r
CONTINUED on Page 81