The Ward County independent. [volume] (Minot, Ward County, N.D.) 1902-1965, 1921-01-27

North Dakota legislature by Bishop,
Brissman & Co., the affairs Of those
industries are in a very much worse
condition than anyone believed they
could possibly be. There has been
gross mismanagement of the State
mill at Drake, Of the State Home
Builders Association and certain 9TH
er state industrial propositions.
The report of the auditing com.
pany, which was selected by the state
department, has been turned over to
the Legislature and thoro investiga-
ton of the report, which cover SOC
typewriter pages will be made.
Atty. Francis J. Murphy of Minot
and Atty. Thos. Sullivan of Mandan
have been hired by the legislature as
counsel to conduct the investigation
Here in brief are some of the dis
closures made from the report:
The Bank of North Dakota:
Has deposits in the Scandinavian
American bank in Fargo Of $685.
974.71, and loans to the same bank
and other liabilities total $215,974.71,
making this banks total obligation to
the state bank, S444,127.42.
Has loaned S65O,OOO to the North
Dakota Building and Loan association
Has loaned 1925, 900 to the North
Dakota Homebuilders association.
Has loaned $7,716.72 to the indus
trial commission.
Has 1883 on deposit and loan
ed to 80 banks that have closed.
Had advanced $7,816 to F. A. Pike,
a Nonpartisan league attorney, be-
fore the industrial commission order
ed $7,716.72 paid to him by the state
auditor, leaving a 500 overdraft
charged to Mr.. Pike.
Has borrowed $1,OO0,OO0 from the
Merchants Loan & Trust company,
Chicago, secured by 81 200, 900 Of state
bonds, due on March Is, 1921.
Has established system of farm
loan payments, over 80 years period,
which result in only three-fourths of
whole loan being paid at the end of
the period, requiring the borrower
to pay .$263.6O for each $1,000 borrow
ed in the last year of the 30-year
amortization period.
More than half Of the first pay
ments due on land loans were unpaid
on date of audit; $33.O74 was due, and
$18,353 had not been, paid.
Had $4,000 in deposits and loans
in a single state bank with $4,000
capital.
Had deposited $3O7 300 in banks for
the purpose of taking up farm loans,
approved by the bank but not COM
pleted, this being in addition to ST.
$4,000 in loans fully completed and
in force.
Of $2,4O7, 645.25 due from banks,
$1,147 ,6O7. 35 is listed as past due.
OF $685. 22 loaned to elevators, pack
ing companies and individuals on
warehouse receipts, S65,122 is past
due.
All of these items are as Of date
of Dec. 3, the date the audit was com
menced.
The North Dakota Homebulders
association:
Records incomplete and deficient"
Adequate accounting system, au-
thorized installed by the industrial
commission on April 7, 1920, not put
into effect on Dec. 3, 1920.
No cost system used to show cost
Of individual building projects.
Construction expenditures listed at
S311, 1852.
No contracts covering purchase Of
residences on file Dec. 3, though build
ing operations had been under way
many months, and many houses had
been sold and some were occupied.
No mortgages of any kind affecting
property being sold on file.
Total of S57,985.72 expended, ac-
cording to records of checks issued,
without invoices in support Of &C
counts.
Bond of $4,000 required of the
manager expired July Is, 1920, and
had not been renewed up to Dec. 3.
Operations have cost s376, 699oS,
financed by loans from the state bank,
by using direct appropriation of $780,
900 and income from payments by
home buyers. An overdraft of $l0,-
1882 is charged to the association
by the Bank Of North Dakota.
Sixty-hve building projects COM
pleted or in the course Of construc-
ton, in Bismarck, Fargo, Mandan and
Underwood.
Big supply Of building material,
bought at peak prices on hand.
North Dakota Mill and Elevator
association:
Flour valued at $l29,OO4.52 to the
Consumers United Stores company,
with no records available from which
to check the account.
Additional flour consigned to other
concerns, making total consignment
S17O,807.42, with no records available
from which to check the accounts.
No balance sheet, to show profit and
loss growing out of operations Of the
state owned mill at Drake, the audit
company explaining that a large part
of the records was not available eth
er at the Drake mill, the Mill and Ele-
vator association office at Fargo, or
the industrial commission office in
Bismarck.
Officials and employees of the Drake
mill, with the single exception Of one
mentioned in the report, refused to aid
the audit company in compiling the
records Of the Drake mill.
Drake mill has received an advance
of $211 ,795 40 from the Bank Of North
Dakota. About $4,000 is due on
-four shipped on consignment.
Audit incomplete because of the re-
f11sa1 Of officials tn coonnratp and IN