The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1922-10-18
NEST0S SAYS
RECORDS WERE
FOUND MISSING
Asserts Investigation of State
Business Checked by Ac.
tion of League
SPEAKS AT HAZELTON
Reviews the Record of His
Opponents, Saying They
Have Made It An Issue

Hazclton, N. D., Oct. l8.-As-
serting that the fact that Mr..
Frazier and Mr.. Lemke have re-
fused "to accept the verdict repu-
dating them in the recall cleo
ton" makes necessary the presen-
tation CT their record in office as
a part Of the present campaign,
Governor Nestos. in campaign
speech here last night, reviewed
the record of the former admins
tration.
During the campaign last fall, y
said Governor Nestos, 1--WE told
you that we would make as full
an investigation as possible Of
the conduct Of the public buiness
and the condition Of the public
:r"unds, and to report the results of
such investigation to the people of
the state. This we have done as
fully as it was possible for US to
do, The handicaps were many. In
the first place, there was such a
lack Of funds as to make it inn
possible to have an audit made of
all the different departments and
funds, and we have had to be con-
tent to confne our investigation
to the lines of business only man.
aged by the Industrial Commits
sion. In addition to that, public
records had been mutilated or de-
stroyed to such an extent that de-
finite information was lacking so
as to handicap us greatly in the
investigation.
-\ Says Records Destroyed
"When we assumed the manage
ment of the Bank Of North Dakota
and also OF the Scandinavian
American Bank at Fargo, and had
chance to investigate the books,
records, and correspondence il,
those institutions. we desired to
examine the correspondence that
would shed light on those business
transactions between the Bank of
North Dakota and the Scandina-
vian-American Bank which had
been SO severely criticized. We
felt that the people ought to know
the whole truth, as to those bust
ness transactions which had lost
to the people a large amount o.
money. When we came to inves-
tigate, however, we discovered that
practically every letter and copy
of letter that dealt with these
transactions had been carefully re-
moved, not only from the files Of
the Bank of North Dakota, but al
so from the files in the Scandina-
vian-American bank and were now
here to be found"
In addition Governor Nestos
charged that the records of the
Bank Of North Dakota were falsi-
fled in reporting an item of $3,-
900 paid to George Webb, bond
salesman,2 stating that, the head
bookkeeper admitted that the
item, which the bank showed was
paid in the spring, was not actual
ly paid until the following Novem-
Der after the results of the recall
election were made known. q
Losses In Industries
Losses of the state industries
under the league administration
were given by the Governor as fol-
lows: Industrial Commission,
S156,348.73; Home Builders Asso-
cation, $159,974.74; Bank of
North Dakota, $15O,475.64; Mill
and Elevator Association, $751;
194.17, total book loss $653, ,993.28
'In addition thereto there will
appear large additional losses be-
fore the affairs Of the Home Build
ers Association have been wholly
wound up, the settlement of the
loans and redeposits made by the
Bank Of North Dakota completed
and the definite and final amount
Of these losses ascertained," said
the Governor. ut is now estimat-
ed that thoe losses will total from
two to three millions of dollars
even if the best business judgment
and skill is employed in salvaging
the securities and other property"
The Governor referred to the
house built by the Home Builders
Association for William Lemke,
his opponent. He charged Lemke
violated both the spirit and the
letter of the law "by erecting for
himself a house costing $22,276.41,
in addition to his proportionate
share of the total book loss of the
department which amounted to
$159,974.74."
He said Lemke had declared
during the recent campaign that
the state never had more than $4,-
900 in the house at any one time,
whereas after he went out Of o.
flee Lemke paid into the state &c.
371.55. "and thereby conclusively
proved by the admission of this
payment that he and his speakers
and papers had been trying to de-
ceive the people. Only once since
June II, 1921 had his indebted
ness to the state dropped under
100000 and then only for few
days, and on this he paid no in
terest."
NO SUNDAY SPEECHES.
Governor r. A. Nestos will make
no political speeches on Sunday, he
fCnrktry,al ~, Daoo ~