The Hays free press. [volume] (Hays, Kan.) 1908-1924, 1921-03-03


presented to the taxpayers of North
Dakota. If it were published in full
it would fill two or three newspapers
the size of The Forum. But every
effort will be made by The Forum to
present the essential facts contained
in the report at the earliest possible
moment.-The Forum, Fargo, n. D.
The following dispatch appeared in
the North Dakota State Journal,
printed at Minot, N. D.:
Some Figures from Report Show Con-
dition of Industries
Bismarck, N D., Jan. 26.-Dis-
closures contained in the report of
the audit by Bishop. Brissman Co., of
the three principal state enterprises
undertaken by the state of North
Dakota in the last two years under
the provisions of laws passed two
years ago include the following:
The Bank of North Dakota:
Has deposits in the, Scandinavian
American bank of Fargo Of S22, 974.-
II, and loans to the same bank and
other liabilities total S215, 984.71,
making this banks total obligation to
the state bank, $444, 127.42.
Has loaned $65O,OOO to the North
Dakota Building and Loan Associa-
ton.
Has loaned $685. 900 to the North
Dakota Homebui1ders' association.
Has loaned $7,716.72 to the indus
trial commission.
Has 1907, 1883 on deposit and
loaned to 80 banks that have closed.
Had advanced $7,186.72 to F. A.
Pike, a Nonpartisan league attorney,
before the industrial commission or
dered s7,716.72 paid to him by the
state auditor, leaving a 500 over
draft charged to Mr.. Pike.
Has borrowed $1,0OO,O00 from the
Merchants Loan & Trust Co., Chi
cago, secured by s1,2OO,O0O of state
bonds, due on March Is, 1921.
Has established system of farm
loan payments, over 80 year 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 80 year
amortization period.
More than half of the first pay
ments due on land loans were unpaid
on date of audit; $33,074 was due
and $18,353 had not been paid.
Had $249, 900 in deposits and loans
in a single state bank with $4,000
capital.
Had deposited $3O7,3OO in banks
for the purpose of taking up farm
loans, approved by the bank but not
completed, this being in addition to
S2,599, O69 in loans fully completed
and in force.
Of $2,4O7, 654.25 due from banks,
S1,147, 6O735 is listetd as past due.
OF S1O5,722 loaned to elevators,
packing companies and individuals on
warehouse receipts, $65,122 is past
due.
All of these items are as of date OF
December 3, the date the audit was
commenced.
North Dakota Homebuilders' assO-
ciation
Records incomplete and deficient"
Adequate accounting system, auth
orized installed by the industrial COM
mission on April z, 1920, not put into
effect on December 1920.
No cost system used to show cost
of individual building projects
Construction expenditures listed at
S311,119.62.
No contracts covering purchases Of
residences on file December 5, though
building operations had been under
way many months, and many houses
had been sold and some were occu-
pied.
No mortgages of any kind affect
ing property being sold on file.
y Total of 57,985.72 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 Decen-
Der 8.
Operations have cost s376, &c., 8,
financed by loans from the state bank
by using direct appropriation of
$780, 900 and income from payments
by home buyers. An overdraft of
SO, so is charged to the associa-
a. Pei - RI----kL Fa,f-~-<s