Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1921-12-01
DEFICIT OF HOME
BUILDERS NEARLY
HUNDRED THOUSAND
Final Cost Of Houses Will Be
Sixty-One Per Cent More
Than Estimated Every
Home Built Will Cost Tax
payers Nearly Thousand
Dollars.

Bismarck. n. ID. Nov. 2S.----(Spec-
ialD--Thc Homcbuilders Association
had on October 81. when Il balance
Ishcet was made. ii deficit Of SOL
145.73
The final cost Of SO houses con-
;siructed by the state BODYBUILDING
body is Gl percent higher than the
estimated cost
This statement OF affairs is shown
from the books OF the association
by J. D. Adams. manager of III" as
sociation, in the last few months.
Mr.. Adams succeeded Manager
Blakomorc and has been engaged ~
cleaning up accounts on the homes
most OF the time.
The total increase in the cost nf
completed structures over the asl;-
mate is $172.93S.72. 1t is expected
that persons for whom homes we're
built will seek 10 avoid paying this
excess. which would increase the def
icit.
In arriving at The cost of houses
g percent Of the cost was added tor
administrative expense. This left
an administrative expense excess Of
$49,15O.O0 which is charged against
the State association and under the
home building law is paid by taXpay-
ers The administrative expense
charged against taxpayers is $927.35
for each house built.
The classification of the deficit
includes the following losses: ad-
ministrative expense, $49,1 50.6l:
drop on material prices. $2G,372.72;
interest OH stock charged Off, $S.-
1921: damage to property account
$4,000. Included in the admins
trative expense are payments to the
Equitable Audit company, which was
employed to make an analysis OF
cancelled checks, etc. of $4,000.
Some homebuilders' lumber has been
sold since building was suspended.
The loss on this is about 40 percent.
= The percentage Of increase OF
completed work over estimated cost
81 percent-is greater than had
previous been reported, the highest
available information being 40 per-
ent. The deficit is larger than was
found last winter by the investigat-
ing committees.
I.cmke'S House Over $21 900
Complete figures on the home OF
William Lemke, in Fargo which has
been much discussed. They show the
estimated cost at $12,5OO: extras,
$4,000: total cost. $21,379.51,
which does not include some mater
ials purchased independently OF the
association by the builder.
The situation is one which is cx-
pected to be taken up by the new
administration, and the solution may
await court ruling as to whether
the builders of houses or the state
shall stand the loss as represented
by the increase in the completed
costs over the estimated costs.
Thus far no contracts have been
signed on any Of the houses built by
the association. Five contracts
have been signed OH houses purchas-
ed
State Must Pay Taxes
An opinion of Attorney-General
Lemke of Nov. 23 states that las
long as both legal and equitable IT,
tie remains in the state the house is
not taxable and in no event can tax
es he levied against property of the
state except as assessments as to
SpcCIil Improvements. i"NSS AAS
not TO be charged against the prop
erty unless the builder has an abso-
lutte conveyance of the property. In
der this rule the state pays the taxes
on the houses, and they cannot be
sold.
Homebuilders houses have been
advertised for sale on account OF de-
linquent taxes in Fargo and Mr.. Ad-
ans went to Fargo yesterday to deal
with that situation and others.