Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-07-19
HOME BUILDING.
A WlERD mess.
WITNESS SHOWS
Glaring Irregularities in
II Prices Says Thatcher
On Stand.
League Industrial Comrnis-
sion Knew it But Didn't
f. Worry Much.
(Hcrald Special Service

Bismarck, N. D., July 1s.-Glaring
lrregularities in prices paid by the
Home Building association for ma
terials used. excessive prices paid in
some instances and an indication that
the defense would endeavor 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 T.. Wal
lace, former tax commissioner, The
association is suing Wallace for the
balance due on the price Of his home
as fixed by the Home Building asso-
citation, the price being over $1,000.
Wallace claims the price agreed on
was $500, with further provision
that extras should not run the cost
beyond $4,000.
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 follow:
Variation Of $24 thousand in bevel
shingles in few days; 1926 in select
fir In 80 days; $14 on common boards
in four months.
Reading from report Of one OF
his auditors. Thatcher told Judge
Pugh, hearing the case. that the
Home Building association paid $31o
thousand. feet for quarter-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 grade which should
have sold for about 1925 Thousand
and was charged at the rate Of 1910
a thousand. + ~ ,@.% x
Material Sold at Loss.
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 associa-
tiQn, which! claimed, to be saving
home hAilders great sums Of money.
by .loW faiAAprt prtses;r Xttua lily: was seiil.
ing material at q loss, he said. QUOT
ing from the report OF his employees,
who said that the selling price was
in instances virtually the wholesale
price with no allowance made for
expenses, loss and similar items Of
cost. AS, .,g
Attorney LANCER. for Mr. Wallace,
endeavored to show that all Of the
material purchased by the Home
Building association did not go into
the houses. Thatcher said that he
thought it probable that through
theft of, material and loss this was
true. but was unwilling to say from
his own knowledge that this was true.
Attorney LANCER indicated witnesses
would be produced later to testify
upon this point. 4;
Much of the testimony Of Thatcher,
who. was on the witness stand yes
terday afternoon. went to the method
by which he distributed $149,o00 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 tumble
he. and employees visited each house,
made an estimate of the amount of
material used, questioned the per-
sons for whom the houses were built
and examined the houses.
Continued on page 21