The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1922-07-19

h1oASh CoihOAAo"' :,
w. C. Schraeder, architect and
engineer, who made some investi-
cations for the association, tes-
titled in court today that he un-
derstood that $4,000 shingles,
nearly a carload, had been stol-
en- in Fargo.
Glaring Irregularities in prices
paid by the Home Building associa-
tion for materials used, excessive
prices paid in some instances and an
indication that the defense would en-
deavor to prove that thousands Of
dollars of material purported to have
been purchased, never went into the
homes marked the trial today Of the
Home Building association against
George E. Wallace, former tax COM
missioner. The association is sueing
Wallace for the balance due on the
price of his home as fixed by the
Home Building ass ssociation, the price
being over $1,000. Wallace claims
the price agreed on was $1,000 with
further provision that extras
should not run the cost Beyond &c.
900.
M. W. Thatcher, who headed the
Equitable Audit Company which
made examinations of the Home
Building association, read from a re-
port showing large variations in the
prices purported to have been paid
for materials. Some Of these fol-
low: Variation of $24 thousand in
bevel siding in four months; 50 cents
in shingles in few days; 1925 in Sc
lcct fir in 80 days; $14 on common
boards in four months.
Reading from a report of one OF
his auditors, Thatcher told Judge
Pugh, hearing the case, that the
Home Building association paid $3lO
thousand feet for quartcr-sawed
oak flooring to Wisconsin firm
which, the auditor said from his per-
sonal knowledge, did not have the
machinery for making this grade OF
lumber. The opinion was expressed
that it was a grade which should
have sold for about 1925 a thousand
and was charged at the rate of $31O
a thousand. .#.
Variations in Price.
The variations in price were far
greater than they should have been
and entirely out of keeping with the
trend of the market, Thatcher testi-,
fed. The Home Building association,
which claimed to be saving home
builders great sums of money by low
sales prices, actually was selling ma
terial at loss, he said, quoting from
the report of his employees who said
that the selling price was in in
stances virtually the wholesale price
with no allowance made for expenses,
loss, and similar items Of cost.
Attorney LANCER, for Mr.. Wallace,
endeavored to show that all OF the
material purchased by the Home
Building association did not 60 into
the houses. Thatcher said that ne
thought it probable that through
theft of material and loss this was
true, but was unwilling to say from
his knowledge that this was true.
Attorney LANCER indicated witnesses
would be produced later to testify
upon this point.
Much of the testimony Of Thatcher
who was on the witness stand yester-
dav afternoon, went to the method
bv which he distributed Sl49,OoO TO
about so of the houses built by the
association. Thatcher said that be-
cause the records of the Home Build
ing association were in such a jum-
BILE he and employees visited each
house, made an estimate. OF the
amount of material used, questioned
the persons for whom the houses
were built and examined the houses.
Method of Computing.
After the investigation was COM
pleted and the materials CHECKED
the auditors found s149,000 had been
expended which could not be account |
ed for. This amount, Thatcher said,
was distributed to the costs of the |
various houses on pro rata basis. |
Five were not charged with the ex-
ira amount, he testified, these being !
a barn and house in Underwood, the |
Willman house in Bismarck and the |
William Lemke and Seeley houses In
Fargo With respect to the Lcmke
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