Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-03-07

ASSOCIATION
MABAD WAY
Manager, Visiting in City
Gives Fine Idea Of Terri
bic Mix-up.

r. E. Diehl, new manager OF the
state Homebuilders' association un-
der Governor Ncstps, threw up his
hands in despair Monday evening
when asked how the state, was going
to come out financially on the build
ing scheme launched by the Nonpar-
tisan league. Mr.. Diehl is in the city
visiting with his two sol attending
the university and in an interview said
that he did, not even know how collec-
tons on the homes built were coming
out. e.s
The audit of the accounts, such as
could be made from records on hand,
has shown that every house built is
far in excess of the original estimate
and the owners are refusing to settle
on the new figures. The audit board
has been able to check up fairly
accurately on everything but material,
and in this it has taken stock, pro-
rating among the houses built the
amount which has been found to have
been used. This audit of the associa-
ton accounts has added another ex-
pense of about $2,4OO.
! Working Hardships.
In practically every Ease the in
crease in cost of the building as shown
from the estimate made will work
- N"I AA"i AAAh III i VI -
homes, who annot afford to pay what
the house actually cost, the manager
said. He gave an instance where a
minister stands to lose his home be-
aus Of an addition which he had
built.
Mr.. Diehl said hal he had been
unable to find one actual estimate
that had been made before the house
had been built. All figures hat had
been located had been made after the
house had been erected. He stated
that the chief estimator, had been a
brick mason and knew nothing OF
frame buildings.
The manager said hat according to
law the state must hold a deed of the
property until the home is paid for,
hut that he had been unable to locate
anything to show hat the state had
ever held a deed to one of the houses
erected.
No Books Kept.
Giving another instance of how the
association books were kept, Mr.. Diehl
said that after disseminating building
operations in December lumber was
sold at retail from the different yards
M all the account kept was a debit
to the Bank of North Dakota and a
credit to stock of the anloun involved
in the transaction. No record of the
number of feet of lumber, kind or tc
whom it was sold being made.
Besides the $2,400 which it cost
to audit the books of the association
Mr. Diehl said hat it owed the Bank
of North Dakota $4,000 and was IL
the hole an appropriation of $780,.
900. He said that after he had SOLD
all the material On hand, which he
figured would bring between $12, 00(
and $4,000 and the interest on loan!
to home builders had been paid in OF
the new valuations, probably the ap'
preparation would be covered, but h
was unable to tell how an association
with a debt of $413,O00 and a maxi
mum income of s2S,65 per month pc,
house on 54 houses was going tt
weather the storm.
Can't Pay Interest.
Placing the loan to each builder a
the maximum amount of 81, 900, tn
manager showed how at the end o
to years the debt would be greater
ever standing as it is. If each builde,
had borrowed $4,000 he said, tina
they would pay in s2S.65 per month
the total Of which would be $1,547.10
or $~19,725.2O per yea The associa
ton is paying 6'per cen on the SAL,
600 it owes the bank, which is some
thing i've $4,000 per year, shown:
that the payments from the home
will not even take care of the interes
on the debt.
Mr.. Diehl spoke of the propaganda:
used by the league during its las
campaign when it was claimed tina
as there was only $4,000 invested il
the Lemke home in Fargo. it was
good investment. He said Mr.. Lemke'
last payment to the association wa
something over $4,000, d~isproving tn
statement that there was only $4,000
ipvoofaI