The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1922-07-27
ESTIMATES ARE! E
BINDING, JUDGE
PlUGH DECIDES \
Ruling in Cases of George E.
Wallace and C. N. FOssum,
Judge Finds for Them
CASE TO BE APPEALED
If Judge Pugh's Decision Is
Sustained State Will Lose
About $25O,OO0

About $25O,OOO
The theory of contract advanced
by persons for whom houses were
built by the Home Building Associa-
tion of North Dakota-that the ver-
bal agreement as to the cost of the
houses is bindings held to be cor
rect by District Judge Thomas Pugn
OF Dickinson in the cases against
George S. Wallace, former state tax
commissioner, and C. N. Fossum, for
whom houses were built in Bismarck.
The case will be appealed to the
supreme court by the sla:e associa-
tion. If Judge Pugh's decision is up
held it means that the persons for
whom houses were built will get
them at the estimates given by the
association which according to the
audit report of the Bishop, Brissman
and company, was 6l per cent less
than actual cost as nearly as actual
cost can be figured.
The net loss to be sustained by
the state through the Home Building
association would be in the neighbor-
hood of $25O,0O0 to $275,OOO on 81
houses constructed.
In the case of Mr.. Wallace Judge
Pugh holds the house should cost
Wallace $6,11O.75. The cost of the
house as given by the association
was $1l,72O.45. -.
Questions of Fact. ......
No questions of law are decided IN
the case it is indicated in Judge
Pugh's memorandum to lawyers, tie
matter of the right of the parties to
contract for the building of house
in excess of the cost of $4,000 as
provided in the law not being raised,
as the state had contended there was
no contract.
A great part of the cost of the
houses as fixed by the association
came through the distribution of
$l49,0O0 expended for materials
which could not be traced to particu-
lar jobs by auditors, the amount be-
ing distributed proportionately to all
the houses.
practically the only question to
be decided is one of act as to the
terms Of the contract" said Judge
Pugh. "There is no question raised
that the state would be entitled to
recover the reasonable valre a. tic
construction either in the pleadings
or in the evidence No evidence was
offered in the trial concerning the
reasonable value of the structure.
The evidence shows that the state
had charged against the Wallace pro-
ject the sum of $1l,720.45. which in
cludes 5000 for the ground, insur-
ance, the abstract and two per cent
for expenses Of administration, the
being for material, labor,
wiring, plumbing and heating, and
to approximately $4,000.
Various methods of computing por-
tion of this amount were submitted.
Millwork Cost Excessive.
"There is also some testimony rel
ative to excessive prices paid for
stock, materials and millwork. The
state, having entered into the busi-
ness of house building for the bene-
fit of it's citizens, owed the duty to
it's citizens Of purchasing the mate
rails at the best prices obtainable
rom the standpoint Of the citizens
having the houses erected and the
;axpayer The testimony offered to
sustain the states theory of the case
shrouded in much uncertainty.
"On the other hand, referring to
he defendants claim, the only writ
ng is the application which recites
hat the home in question was to
.ost about fifty-three hundred dollars.
The defendant himself testifies that
1e placed a limit of six thousand
dollars, and that when he went to
he office of the Home Building as
,ociation to ascertain what would be
he price of the structure he desired,
le was by Mr.. Blakemore, manager
If the Home Building association,
to a Mr.. Baker, who was
of construction. Mr..
Baker informed him that the addi-
ions of the sun porch and the gar
lge would amount to $3.50, and that
other changes in materials to be
,sed in the building Of the house and
,ther small changes made with ref
.rence to building Of the house and
,ther small changes made with refer
.nce to the plans would amount to
;52O. Witness Chernick testified that
Baker informed him that the Wallace
OBJ was to cost $4,000, plus $3.50 for
xtras.
Sustains Defendants Theory.
The testimony for the defendant
n connection with this matter, and
,oing to sustain his theory of the
natter is clearer cut than is the tes-
imony of the state, and the. court
las no hesitation in finding that the
|efendant's theory of the contract is
he correct one, and that court finds
hat the basic charge for the standard
,lans used in the erection of this
louse was the sum of $4,750, includ-
ng ground to cost not to exceed
500; that the cost of the additions
o the house in size and sun parlor
nd garage was to be the sum of
$50, and that the other changes in
materials and additional works was
o cost $780, The lot in this case
ost 5000, and to the foregoing sums
Continued on Page p