The Bismarck tribune., 1922-01-09
EXTEND AUDIT
AND PROBE TO
ALLINDUSTRIES
Industrial Commission Auditors
Nearing Conclusion on
Bank Work
MILL WORK is DISCUSSED
Industrial Commission Meets
Engineer on Contracts
Entered Into
MILL WORK is DISCUSSED

Investigation and audit. of North Da-
kota state industries by an auditing
firm employed by the Industrial Com
mission 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 Drake mill, Grand Forks project,
Mill and Elevator Association, Home
Builders Association and the books or
the commission itself.
It is proposed by the administration
to lay before the people of the state
complete record Of the condition and
. management of the state industries.
The audit is to be more thorough than
any heretofore made and will, with
reference to the Bank OF North Da-
kota in particular, go into the ques-
ton Of valuations in order to determ-
inc 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 Associations and the audit
company, the league representatives
failing to agree in many respects. J.
B. Adams, former manager 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.
Asks Payment by Bank
In connection with the deficit faced
by the Bank Of North Dakota, Treas
urer John Steen, it is understood, will
make new demand for repayment by
the bank of 100000, interest on the
bank bonds issued to provide capital
stock for the bank, for 1920. This
interest, 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
demand for it, to be a valid obligation
of the bank
Another item which the bank prob
ably must shoulder is $4,000 advance
commission paid to New Yorker dur
ing the banks bond sale efforts in the
cast. This was listed as "commis-
sion" on bond sales. Since the su-
preme court held that no commission
may be paid by the state on bond sales
it is held that no commission may be
it is held the bank must shoulder this.
The amount was part of bills allowed
by the retiring administration on the
next to last day in office, payment of
which has been held up by the treas
urer.
A representative of the engineering
firm employed by the Industrial Com
mission in the Grand Forks mill work
and representatives of contractors
were to have conference with the In
dustrial Commission today.
The new commission has been faced
with contract for about $4,000 worth
of machinery for the Grand Forks
mill especially made months ago and
on which storage now is being charged
against the state. This machinery
and other equipment was purchased
at the peak of prices, according to
the secretary of the commission, al
though the mill at that time had hardly
been fairly started. 1t is estimated
that the price on. this machinery has
since dropped 80 to 40 per cent.
Discuss Mill Work.
The present commission will inves-
tigate to determine if it is necessary to
assume all these obligations which, it
is claimed, will increase the cost of
the mill many thousands of dollars
over the cost that would have been
entaileG had the machinery not been
ordered at peak of prices and MANY
months in advance of the time it could
possibly be used.
The commission also was to dis
cuss the question of resuming work on
the mill during the spring.
Nnn MNn NH IINH