The Bismarck tribune., 1922-03-23
PROBESTARTED
/ OF TAMPERING
IN. MILL OFFICE
Attorney General Investigates
Substitution of New Books
For Original Records
McGovERN is CALLED
Explanation Demanded Of For
mer Manager-Features of
Mill Report Detailed
M GOVERN is CALLED

Investigation is now under way by
the Attorney Generals office of the
rewriting Of records Of the Mill and
Elevator Association under the man
agement Of ]. A. McGovern, it be-
cane known today.
First steps in an effort to deter
mine the reason for destroying the
original records were taken some time
ago and the report Of the Bishop-Briss-
man Audit company, submitted this
week, is a further basis for the inves-
tigation Attorney General johnson,
asked today If any action would be
taken as a result of the Bishop-Briss-
man report, said that the matter Is
being investigated.
Effort was made to clear up the sit
uation before the Bishop-Brissman
company began it's audit of the state
industries under the new administra-
ton, it was learned. Demand was
made upon Mr. McGovern by Secre-
tary Crawford of the commission for
an explanation OF the rewriting of
records, for the production of original
vouchers and other records and for
an explanation of the great amount of
expense in mileage incurred by the
Fargo office of the Mill and Elevator
Association. Mr.. McGOvern, accord
ing to Secretary Crawford, has failed
to make any explanation of the
matter.
The Bishop -Brissman report quotes
the former bookkeeper for the Mill
and Elevator Association, as stating
that the records now on file were
written up by tie Equitable Audit
Company. The original records in
stalled in July, 1919, are not on file
in the office of the Industrial Com
mission and effort to find them has
been unsuccessful. There are no or
iginal vouchers on file, according to
Secretary Crawford. The audit COM
pany report also quotes A. w. Leuhrs,
former secretary to McGovern, as say
ing that records were purchased in
1919 and that transactions were en-
tered thereon by him, but these can
not be found. Records of the Mill
and Elevator Association were first in
controversy insDecember, 1920, when
the Bishop-Brissman auditors attempt
ed to get them but were told they had
been removed from the Fargo Of
flee.
An overdraft of $31, ,47S.OS by the
Mill and Elevator Association was re-
ported by the Bishop Brissman COM
pany auditors who have just reported
on their survey of the mill and ele-
vator association. The report says:
up to December, 81, 1920, one ac-
count was maintained by the Bank of
North Dakota, receiving deposits and
honoring Withdrawals of all three Of
fices, Grand Forks, Fargo and Drake.
January /, 1921, two accounts were
maintained by the Bank, one for Grand
Forks and another for Drake. Ap-
parently no attempt had been made
to harmonize the bank balance with
the bank. The Grand Forks records
show the bank account to be over
drawn $3O,2876 &C, with no provision
made for bank. withdrawals by the
Fargo office amounting to $13,494.97.
The correct overdraft is $31, ,478.09.
The expenses incurred in the Grand
Forks mill and elevator project which
according to the audit, represent a
loss because there is no physical value.
shown for it, includes: Interest, Bank
of North Dakota, s54,O31.53; Interest
Strong Scott Co., Pawling Harnisch-
feger Co., Grand Forks Commercial
club, bonds retired, $27,410.72; salar
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