The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1922-03-08
SUITS STARTED
IN STATE HOME
BUILDING CASE
Ger0ge E. Wallace and John N,
Hagan Made Defendants in
Two Suits to Test Matters
MANY QUESTIONS INVOLVED
Four Separate Actions to be
Filed in Strengthening Out
Tangled Affairs @

Tangled Affairs @
Suit was commenced today by the
Home Building Association against
George E. Wallace and John N. Hagan
to compel them to pay the full cost OF
the houses built for them by the state.
The suits are expected to apply to the
cases of a large number OF other per-
sons for whom homes were built and
which homes, on the average, accord
ing to an audit report, cost about I'll
Fer cent more than the estimated cost
Four suits are to be instituted to de-
termine all the questions involved in
the Home Building Association tangle.
The four suits are as follows:
l. Suit against George E. Wallace,
to compel payment Of the full cost Of
the house. which was built at the re-
quest of Wallace.
2. Suit against John N. Hagan to
compel performance OF alleged con-
tract, and to determine whether he,
as member of the Industrial Commits
sion and one of the directors of the
Home Building Association, had the
right to SO deal with the association,
to determ jne if he shall pay full cost
of the house he abandoned, and wheth-
er the association must refund money
already paid, less rent, as he de-
mands. "
3. Two suits will be started to de-
termine whether persons who pur'
chased homes of the association at
ter the association had nearly COM
pleted them, shall pay the full cost
of the homes There are seven such
homes in Bismarck and seven in Far
20. A suit will be filed in Fargo and
one in Bismarck.
4. Suit to determine who shall
pay the taxes, which will be instituted
in Burleigh county by the association
against the county auditor, in which
the association will allege the houses
are not taxable but if the court holds
they are the person for whom they
were built must pay the tax. @
To Hear Suit Here.
The suit against Mr.. Wallace, form
er tax commissioner and himself a
lawyer, is expected to settle many
important questions involved in the
Home Building Association affairs.
The case will be heard in the Burleigh
district court. @
The suit says that ION or about the
first day of September, 1920, the de-
fendant (Wallace) made application to
the plaintiff Association for the pur-
chase and construction of home un-
der the terms and provisions Of the
act" that upon the completion OF
which house it was agreed that the
plaintiff would, upon receipt Of cash
payment of 20 per cent of the total
selling price of said home, convey
said property to the defendant by
deed, or by contract for deed, and re-
ceive settlement therefor from the de-
fendant as provided by Section II of
said Act"
1t alleges the association purchased
a lot, built the home, including such
equipments as are customarily used
in connection with the dwelling
houses, and including various extras
and alterations specifically ordered
and requested by the defendant from
time to time during the construction
thereof
June /, 1921, and occupied by Wallace.
The actual cost, the Associations suit
says, was $11,72O45 (which sum the
defendant agreed to pay to the plain
tiff association, and that said home
was, and is of reasonable value of
$11 ,720.45." ~ ..s .a
Wallace, the complaint says, has
paid a total of $4,000, that the defend
ant has refused and neglected to pay
the balance due the plaintiff, or any
part thereof, or to make settlement
in the manner provided by law" The
home, Wallace said, was to be built
for about $4,000.
The suit asks judgment in the sum
of $S,S20.45, and is brought by Attor-
ney-General Sveinbjorn Johnson and
Assistant AttorneyGeneral George
Shafer for the association.
Ask Hagan Judgment
Judgment in the sum of 81 1873 is
asked against Mr.. Hagan. The house
which was built for him was Occu-
pied by him from about June l, 1921,
until about November 81, 1921, when
he moved out and abandoned the
mouse. lue CUSL VI Tile MUSE, lll0
suit alleges, was sS,S92.9S, and Hagan,
it alleges, has paid about S1,7OO.
The right of Hagan as member of
the Industrial Commission to move
out of the house and turn it back as
he did is expected to be raised in
the trial of the suit, though it is not
specifically set out in the suit brought.
One paragraph of the suit, setting
out Hagan's relations in the transac-
ton, says THAT the defendant John
N. Hagan was at all the times herein
after mentioned and ntil the 23rd day
of November, 1921, member of the
Industrial Commission of the State of
North Dakota, and actively functioned
as member of that body; that said
Industrial Commission was then and
there at all times charged with the
duty and authority to operate, manage
and control the said Home Building
Association, and to make and en-,
force all necessary orders, rules, reg
ulations and bylaws for the trans
action of its business, and to appoint
the officers, agents and employees of
said Association, define their author
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