The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1922-03-04
CREAMERY LOST
$15,000.00 IN 7
MONTHS, REPORT
Bishop, Brissman and Company
Audit of Experimental In
dustry Shows Loss
SOME RECORDS MISSING
Difficulty Occasioned in Making
Report Upon Creamery by
Absence of Records

the comparatively short time it was
operated, according to report on ex-
animal ion and audit submitted today
by Bishop, Brissman and company.
This is the first public statement ever
made of the detailed operations OF the
experimental creamery.
The report of the auditors covers
a period from June l, 1920, to Decem'
ber 81, 1921. The creamery was op.
Grated from about June !, 1920, and
was closed in January, 1921, a period
Of about seven months, the report OF
Bishop, Brissman and company states.
Among the expenses listed in the
mass of figures upon the creamery,
showing its operations, are four
checks aggregating $509.9O issued to
State Senator A. A. Liederbach and
entered on the creamery books under
the head of organization. Two checks
to Senator Liederbach, amounting to
$70.48 were issued to Liederbach and
charged under the heading "oftice sup
plies" Another check Of 1886 to
Liederbach was not entered on the
expense distribution sheet.
Ssnator Liederbach was a member
of the legislature which created the
experimental creamery fund. Accord
ing to- information given the auditors
he was employed for about three and
one-half months at a salary of $20S
month engaged in organizing cream
routes and the additional checks is
sued to him were for expenses.
A cream station at Dunn Center
was leased from a club over which
Mrs. Liederbach was president and
checks were issued to- her for rent, a
letter from l.. Haselrud, former man.
ager of the creamery said, in explana-
ton of two checks for SIS each issued
Mrs. Liederbach.
Auto Truck Burned
Among the losses tof the, creamery
is $500 auto truck, which burned in
a garag, in Bismarck and was not in
sured.
The letter from former manager
Haselrud, included in the audit re-
port saws: '4We,. bought a. Ford track
and body at the approximate cost OF
5000. The chassis and body were pur-
chased at two separate firms. When
the creamery closed the truck was
put in storage at Mr.. Liederbach's
farm There was no insurance of any
kind on the car
Considerable difficulty was en-
countered in the examination owing
to- the lack of records and supporting
data, the report says, mentioning that
in addition to the records submitted
at the creamery; a search was made
in the office of the Commissioner Of
Agriculture and Labor in the capitol
for additional records, and that "a
quantity of cancelled checks were
found in a box in the carpenter shop
room in the capitol building"
mo records were found of Cash Re-
ceipts, Disbursements, Sales and
Shipments, Production, and Daily re-
ceipts of Butter fat," the audit re-
port says.
''The disbursements were obtained
from cancelled checks and bank debit
slips, in total amount of $57,O63.61,"
says the report, land items appearing
on expense sheets with no cancelled
checks were in the amount of 1886.
The account with the Merchants State
Bank, Werner, N D., was closed with
the receipt of $37.79 from the state
treasurer to- balance the account. The
above summary reflects apparent
bank withdrawals with no cancelled
checks or check stubs filled out to
cover, in the amount of S63S.27.
"In most cases the check stubs were
not filled out. .a
! "The bank statements show in
many cases the daily Withdrawals in
one total, so that the cancelled checks
on hand could not be compared with
the bank Withdrawals and thereby OBJ
tain the missing items.
Checks appear to have been drawn
from three stations-Werner, Killdeer
and Dunn Center. The checks appear
to be signed by L. Haselrud, F. E.
Hamel and ]. Dugstad. A large num-
ber of checks with the signature of l..
Haselrud appear to have been signed
by other persons, and have various
initials underneath the signature"
It is added that it is apparent that
the balance of payroll checks undls'
covered we're among the missing
checks totalling $63S.27. Effort to find
these missing cancelled checks fail
ed
Cancelled Checks Missing
Regarding the operations the audit
report says in part:
"The creamery was operated from
about June l, 1920, and was closed in
January, 1921, period of about seven
months
"The statement reflects sales, TAX
en- from receipts and bank deposits, OF
s52,SOo.9S; c,ost of butter fat, freight,
automobile expense (upkeep) and
creamery supplies of $55,051.43, re-
flecting a gross loss of s2,250.4o. op.
Grating expenses are in the amount OF
$9,211y96, effecting an operating loss
Of s11,462.41. Other expenses and
losses are in the sum of s3S2o.4s, re-
sulting in a total loss of SIS ,2S7S9 for
the period of about seven months op-
erations.
"You will observe that under the
caption of Other Expenses a n q
Losses we have included item OF 'Ap-
parent Disbursemen ments, no cancelled
checks, and check stubs not hlleu
out of s63S.27.
improvements to building and elec
trio wiring cost $421.62. Loss or
equipment purchases, after estimating
the equipment on hand at 5000, is
s1.O32.99. An automobile truck wa!
purchased for $3.50. Mr.. Haselrue
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