Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-12-13
STATE. 5 |''. SHOULD .
SELLPLANT TO
PRIVATE OWNER
Might Be Success if Operat-
ed by Individual Report
-: Declares.
ACCOUNTS FOUND !
BADLY MUDDLED
Auditors Conclusion Based
On Investigation and
:.s.. Experience.
.(Herald Special Service. J

.(Herald Special service.)
Bismarck, N. D., Dec. 13.-The In
dustrial Commission as formerly con-
stituted by Lynn j. Frazier William
Lemke and John N. Hagan was ad-
vised by the auditing firm it employed
to audit the accounts of the Drake
mill that the mill should be sold.
Il 'It is our opinion that the only
manner in which this property
can be operated is through an
ownership Of some individual who
will place it back in line with
small country mills doing gen.
eral grinding business, grinding
feed and handling side lines of
coal, etc." says report submitted
by. the Equitable Audit company.
~ These small mills usually pay
when operated in this manner by
someone giving his day and night
attention to it along these lines"
This is the report of NJ. W. Thatch-
er. president of the Equitable Audit
the Nonpartisan league in a report
submitted in November after check
up of the business Of the Drake mill
for period from October Is to Octo
ber 81, which followed an audit up to
October Is. The letter Of transmittal
with the audit figures is undated.
s MILL SHOULD BE CLOSED. Z,
,sr % The auditing company further
says that: BIASED on our previous
audit report TO you and ~ result
: saeez figures learned In sttlhis 4tnyega- 5
Eatton we can state that # IS our
opinion both from q standpotnt of 4
the results obtaihed and shown In
Z our previous audtts and this STAGE,
ment, together with the, experi-
j, cnce Of the actual operating of
the mill had by the author OF
this statement, that the Drake
mill should be closed and sold and
no longer operated by the state"
;'5,- r3-s. Accounts Muddled.
Accounts Of the Drake mill have
been muddled in handling, according
to the audit companys report. It de-
clares that It's audit report for the
period of October is to October 81
lacks weight because information
given 1t by F. J. German. local man
-ager of the mill, are obviously incor-
rect. With respect to its previously
detailed length audit covering the Pc
riod from April 81 to October Is the
audit company holds its report to be-
only" approximately correct
Discussing reports submitted for
audit, by the manager of the Drake
mill the audit company report says:
'"Fhe statement submitted for our
investigation is obviously grossly in
correct and in the absence of manu-
featuring reports as to -four and feed,
etc, wheat used and further, due to
lack of information as to the kinds,
quality and the size, and amounts OF
production sales. we are unable to
give any i further information than
previously >recfted. a.{4r
1--WE have, however. been able to
set up schedules and results that show
to you that from his own figures, our
report. as at October Is, 1921 Is ap-
:proximately correct and that the only
changes that, could be-. used to effect
any change in our statement, would be
to the extent that any Of the October
18th inventories were not correctly
stated. -
t,..5,,:"rhis latter feature is q most i'm
probable situation because our state
weights and manufacturing percent.
ages the figures we did. use have beer
yery nearly correct. & u. ls5.
r,.sThe only further information thai
could be siyer, on this subject woult
be- az the result of detailed audit o.
the last sixteen days. s .E.
This report of the audit COMPANY
shows great difference between thu
hs1,res arrived at by the local man.
a1er oY the mtil and the auditing com.
nsny. the latter asserting the man.
ager.s figures are OBVIOUSLY incor'
rect "a Il: Z.
{ .5,5S 5!..s; 7;s Can't SEQ PROFIT. N
4rh -. :. - c,a,n,ed a nrof,t 70,
/. thes min inNsirteen days OF $e,12s. 81
~. ~. audst;n~ comnanv ~. that
~ M sstarna.oninr po.sibie ant
rs,,;r1 mmch .han All "a the mill. ",
have snown y tne nt aDova oom ~ * ooo
M :