The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1927-11-29
LUND'S REPORT
TO AUDIT BOARD
Is. CHALLENGED
Statements About Midland
Grain Profits Called I'm
supported by Facts
GAINS NOT EXCESSIVE
Mill City Firm Made Less
Than 1N Cents Per Bushel
on State Mill Dealings

Examination Of the books Of the
Midland Grain company showed
that the Minneapolis firm made
less than one and one-half cents per
bushel profit on its dealings with
the North Dakota Mill and Eleva.
tor association in 1926, m audit re-
port released by Governor A. G.
Sorlie for publication today shows,
The report was signed BY r. H.
Poole and William N. Schants, Bis
marck public accountants appointed
by the governor to examine the
books Of the Midland Grain COM
pany and /. S. Joseph. company,
both Minneapolis firms.
The examinations were made Ut
the request Of the two companies
which complained that various re-
ports of their dealings with the
North Dakota state mill and eleva-
tor did them m injustice. The
examination by Poole and Schantz
was made shortly after @. B. Lund,
accountant for the state board OF
auditors, went to Minneapolis ia
make similar examination for the
state board Of auditors.
Governor Sorlie announced at
that time he had retained Poole to
make the audit because he did not
want a political audit" which he
indicated he believed Lund would
make. The governor had previously
charged Lund with making q ''polit-
ical audit" Of the affairs Of the
ckuko ,rn:ll >uA >1~,,>%n~ D,.lls.>
ton Of the Lund audit of the mill's
affairs had created wide interest.
Take IssuS With Lund
In the report released by the gov
crnor today, Poole and 6chantx take
sharp issue with several facts and
conclusions advanced By. Lnpd in his
report on the mill operations. !.
Lund's statement that the Mid.
land Grain company realized = prof.
it Of $S7 7,326.8l on 316 carloads Of
grain sold to the, state mill and
elevator is branded in the report ia
the governor rs an academic con-
clusion" which, Poole and Schantz
contend is unsupported by the facts
Numerous supporting schedules
are contained in the report and
show, Poole and Schantz say, that
the grain purchases made by the
state mill and elevator were in line
with the purchases made by other
mills. Comparison between the
purchases by the state mill And
elevator from the Midland Grain
company and by other mills from
the same film at the same time are
advanced to prove the truth Of this
conclusion.
Poole and Schantz state that all
Of the records, books and files Of
the Midland Grain company and Of
the. /. S. Joseph company were at
their disposal and no attempt was
made by any of the officers Of
either company to conceal anything
pertaining to the transactions un-
der investigation. "We received
courteous treatment and willing as.
sistance from all Of the officers and
employees Of such companies during
the course Of examination !. Of the
records at Minneapolis" the audi
tors say in their report.
In making their audit Poole and
Schanty said they had before them
tte press report Of the fact finding
committee sponsored by the North
Dakota senate. "The original report
Of such fact finding committee was
not available for our inspection,
they state. I'VE also had before Us
ascopy Of the original audit report
Of the North Dakota Mill and Eleva-
tor association submitted by O. B.
Lund, &C 3untant Tor the North Da-
kota board Of auditors"
In . detailed comment on their
findings Poole and Schantx said:
viewing the result Of operations in
introspection i il comparatively
simple now to show what should
have been DONE In this report,
however, we attempt to analyxe GER
CONTINUED on page nine)