The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1922-07-20
MATERIALS NOT
ACCOUNTED FOR
CRUX OF CASE
What Became of $149,OO0 Ex-
pended by Association Sub
ject in Lawsuit
ARCHITECT TESTIFIES
Saws He Made Complete Ex-
animation of All Materials
Used by Association

The Home Building Association
case, in which this state industry
seeks to cause George E. Wallace
former state tax commissioner, to
nav the cost of the house as given
by the association which was, ac-
cording to Wallace, more than S5,-
600 above the estimate, developed
today into an effort to account for
the yS149, 900 worth Of material which
could not be traced by the Equ't-
able Audit Company to the various
jobs.
On the one hand, the association
was endeavoring to show that in dis
tributing this $4,000 to the cost OF
the houses the audit company was
pursuing a fair course, in view OF
records and Investigations made
On the other, the defense was seek
ing to show that all, or at least the
great bulk of the $l49,00O worth OF
material was dissipated through
neglect, waste, graft, loss and theft.
The defense placed great stress
upon the testimony of w. c. Schrae-
der. architect and engineer, who had
been employed by the association to
visit the houses and make an esti-
mate Of the amount Of material used
in them. Schraeder did so, and his
plan was discarded.
Plan Discarded
The reason for throwing out his
lplan, Schraeder said, was that he
did not account for all the material
bought. W ,.... -..
"In other words" asked Attorney
LANCER, "when you visited these
houses in Bismarck and made care
full estimate of the materials used,
and compiled your figures, you
couldn't account for all that ma
terial bought and used up by the
Home Building Association"
eyes," was the reply, with expla-
nation in further questioning that
he worked two and half months
on his plan and thought that his
plan of causing the Home Builders
to pay for materials actually used
was a fair plan. ~
"And you believe that the reason
for discarding your plan was that
YOU didn't account for $4,000 worth
of material?"
81 believe that is So"
The results of his investigation,
he said, he gave to J. B. Adams, for
mer manager of the association, and
Mr.. Darling, Of the Equitable Audit
Co. He said that "they told me l
misunderstood their wishes, that
they wanted to include all the ma
terial." He added that this estimate
did not include shrinkage which he
said would not have amounted to the
total unaccounted for.
Phony Entries, Claimed
Nick Chernick, formerly connected
with the association, endeavored to
show that all deliveries Of material
to the home of Mr.. Wallace had been
accounted for. He said that he went
on the job in charge of the delivery
records after work on some houses
had started but that he visited them
and checked materials used. He
maintained that he had accounted
for all materials used, although he
said he would not testify as to
whether the records were preserved
by the accounting department.
Attorney LANCER produced in an
swer report of the Equitable Audit
Company, submitted in October last
year, but as of date of May 81, 1921.
This report called attention to dis
PARTIES in records-that one house
was charged with seven loads Of
sand and another house of like char
acter was charged with 81 loads of
, sand. The report added that the de-
livery slips were valueless and said
further that discovery was made
that many were "phony' and that
admission was made to this effect.
Chernick denied that he had made
any phony slips or that any he pro-
vh