Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-01-10
ALL0F STATE
INDUSTRIES
BE AUDITED
Examination to be Extended
to Include all state-spon-
sored Businesses.

Bismarck, N. D., Jan. 1O.-1nvesti-
cation and audit of North Dakota
state industries by an auditing firm
employed by the Industrial commits
sion is being extended to include all
industries under the commission and
the commission itself. The work of
auditing the Bank of North Dakota Is
nearing conclusion, and auditors this
week began pushing the audit Of the
and Elevator association. Home Build
ers' association and the books of the
commission itself.
1t is proposed by the administra-
ton to lay before the people Of the
state a complete record Of the condi-
don and management of the state in
dustries. The audit is to be more
thorough than n heretofore made
and will, with reference to the Bank
of North Dakota in particular, go in
to the question of valuation in order
to determine the losses of the bank
accurately.
Previous audits made under the
league administration have been un-
satisfactory. There was sharp con-
troversy between officials of the Home
Builders association and the audit
company, he league representatives
falling to agree in many respects. j..
B. Adams, former of the
Home Builders. charged the Equitable
Audit company with inaccuracy. Diff
ferences also obtained as to the Drake
mill. A complete investigation by an
impartial firm was held necessary by
the administration.
In connection with the deficit faced
by the Bank of North Dakota, Treas
uret john Steen. it is understood. will
make a new demand for repayment by
the bank of 500, 900. interest on the
bank bonds issued to provide capital
stock for the bank. for 1920. This in
terest. paid from taxpayers funds,
was not repaid by the bank. although
it paid for two following years. This
payment in itself would almost de-
stroy the profits which have been
listed by the bank and is declared by
the treasurer. who previously made a
demand for it, to be a valid obligation
OF the bank.
Must Shoulder "Commission.'
Another item which the bank prob
ably must shoulder is $4,000 advance
commission paid to a New Yorker
during the banks bond sale efforts in
the east. This was listed as 'commis.
sion" on bond sales. Since the su.
preme III held that no commission
may be paid by the state on bond sales
it is,held the bank must shoulder this
The amount was part Of bills allowed
by the retiring administration on thu
next to last day in Office, payment o!
which has been held up by the treas
urer.
Big Loss On Machinery.
The new commission has bee facet
with contract for about $570,00'
worth of machinery for tho Crane
Forks mill. especially made month
ago and on which storage now is be
ing charged against the state. !Thi
machinery and other equipment wa
purchased at the peak of prices. he
cording to the secretary Of the com
mission, although the mill at that tim
has hardly been fairly started. 1t i
est mated that the price on this ma
chinery. has since dropped 80 to A.
per cent. u.
The present commission will inves
tiratc to determine if it is necessar,
to assume all these obligations which
it is claimed. will increase the cost O
the mill many thousands of, dollar
over the cost hat would have beel
entailed had the machinery not beel
ordered at peak Of prices and man,
months in advance of the time ]
could possibly be used.
Let's see; the order to the confer
ence was stack Arms" not "Stacl