The Oakes times. [volume] (Oakes, N.D.) 1906-current, 1921-02-03
NO ACCOUNTS
HAVE BEEN KEPT
Thousands of Dollars Wasted by Men
in Charge of State
Industries
MANY SCHOOLS MAY BE CLOSED
Lack of Funds Will Handicap State
This Year

the Bank Of North Dakota and the
other state institutions has naturally
been the center of interest among
lawmakers and everybody else in the
capital during the past week. Two
special investigation committees, one
from the hoase and one from the SEN
ate, are considering the report but as
it is both a lengthy and complicated
affair it will at least take another
week before any official statements
are forthcoming.
A preliminary survey Of the find
ings of the auditing firm shows how
ever, that careless management and
gross irregularities have been the or
der Of the day at the various state in
dustries az well as in the bank. Every
charge made by the critics Of the pres
ent administration has been more than
borne out by the report. Large sums
Of money have been wasted and a
large and important part Of the
to hole.
The grand prix for criminal care
lessness in the management Of its af-
fairs must be divided between the
home builders department and the
mill and elevator associations man
ayers. The state has built in all
twenty houses and work has been
started on forty-two others, mostly
for the benefit Of rich people in the
larger cities, but nobody knows what
these buildings cost. There has been
kept no individual accounts for each
house. In this manner $376, ,699.08 Of
the tax payers money has been used.
The department has overdrawn it's
available funds to the tune Of $10,-
1882 after having borrowed $227,-
900 in the Bank Of North Dakota.
After the report on the state mill
at Drake was made public Manager
J. A. McGovern Of the mill and ele-
vator association has admitted that
the stories published in the league
newspapers during the past year and
showing that large profits had been
made, were lies made out Of whole
cloth. Mr.. McGovern admits that all
the mill can do under the most IA
vorable circumstances is to make a
profit Of not to exceed $500 a month.
He also admits that instead Of maxi
ing a profit in the past it has, as q
matter Of fact, lost some 10000;
these losses having been incurred
largely because the mill management
failed to hedge in wheat. :.
On the mill and elevator at Grand
Forks about $650,0 has been spent,
but the auditors failed to find any
complete itemized accounts of these
expenditures.
The affairs of the state bank are
not in much better condition finan-
cially, but at least books have been
kept there. The big question before
the investigation committees as far
as the Bank Of North Dakota is con-
cerned is to find out the approximate
value Of the collateral held for loans.
A large percentage Of loans past due
have not been paid, fact which does
not promise well. It is also worthy
of mention that the amortization table
for rural credits loans is faulty. I'm
der the plans adopted loans are sup
posed to be paid back with interest
after thirty years in annual payments.
The investigation has shown that on
the contracts already entered into the
state still has $151, 900 coming after
the thirty years have gone and it is
just possible that the tax payers stand
. to lose that amount.
The best that can be said as to the
position taken by the league members
Of the two houses as to the audit Of
the state institutions is that they are
absolutely consistent in their attempts
to have it suppressed. They fough
the audit up to the moment when the
two houses had received their copies;
and since then they have just as ener-
getically tried to prevent payment Of
the work done by Bishop, Brissman
& Company. The house finally passed
bill appropriating $4,000 for this
purpose last Friday.
Senator P. o. Thorson, of Grand
Forks, has introduced bill which
proposes to appropriate $1,000 to as
certain the sources Of black rust and
the eradication Of this and other plant
diseases. The pronosed worl, is IN