The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-01-13
0. B. LUND APPARENT
VICTOR IN TIFF OVER
FRIENDLY AUDITING
Statement Of Confidence In
Chief Accountant d Ex.
pected from Board
MULLoY MADE ACCUSATION
Industrial Commission a n d
Board Of Auditors Conduct
Joint Session

Board Of Auditors Conduct
Joint Session
Ole B. Lund. chief accountant for
the state board Of auditors Monday
will resume his audit Of the state mill
end elevator. interrupted when he
was recalled to Bismarck to face &C
cusations that his audits Of some de-
partments had been too friendly"
James Mulloy. secretary Of the state
industrial commission, made the
charges at joint hearing Of the In
dustrial commission and auditors
board late Friday. The meeting ad-
journed without any action taken.
Members Of the board Of auditors
Saturday declined to comment on the
charges, but they were represented as
catisfied with Lund's work. It was
indicated the members take the view
that the charges against Lund had
been before the board about year
ago, that at the time the board found
the accusations without foundation,
and that formal action at this time Is
unnecessary.
viii Direct Return
Lund said he had not heard offici-
ally from the board Of auditors. which
employs HIM. but it was learned the
board will direct him to return to
Grand Forks.
Mulloy based his principal charges
on an audit Of the home builders as
ISOLATION account, In which he claimed
there were discrepancies. william
M. Schantz, Bismarck. certified pub
lie accountant. testified for Mulloy at
the hearing that in his opinion the
Lund report on the home builders &C
count did not conform with the books
Of the industrial commission, custod-
Ian Of the accounts.
After Mulloy had completed his ac-
cusations, Lund told the board briefly
that he still stands on the record Of
his audit. He said study Of the full
report Of the home builders account
will show Mulloy's charges are I'M
founded. Lund did not 60 into any de-
tailed denials Of the specific charges.
Gronna Thought It o. X.
Lund added that previously. when
Mulloy questioned the home builders
account. he discussed the matter with
A. J. Gronna, then attorney general,
and that Gronna found the audit was
proper. Since then p. O. Satire has
succeeded 0ronna as attorney gener-
al and become an ex-officio member
Of the board Of auditors. He also is
q member Of the industrial commits
sion.
Satire asked Mulloy . few questions
during the proceeding but otherwise
little comment was made by those
present.
Gov. william LANCER, chairman Of
the industrial commission. said Moth
ing during the hearing. Others pres
ent were John HUSKY. commissioner
Of agriculture and labor, the third
member Of the industrial commission;
secretary OF state Robert Byrne and
state auditor Berta Baker, who with
Satire, compose the board Of auditors.
r. A. Kinzer. former state senator
and now an employe OF the state game
and fish department, appeared as
witness for Mulloy. Corroborating =
statement by Mulloy that Lund at one
time sought possession Of certain in
dustrial commission records. Mulloy
said that In Kinzer's presence he re-
fused to turn over the records. The
request, he said. was made after dis
closures Of shortages In the accounts
OF John Gammons. former secretary
Of the industrial commission, were u1-
covered.
Hits Audit Of le3l-31
Mulloy'S criticism Of the home
builders audit concerns an examina-
ton for the year Sept. /. 1881. to
Sept. 1. 1882.
He charged that an improper en-
try was made by Lund Of IN item Tor
$344 for unearned premium insurance
refunds from the Bank Of North d.
kota on home builders contracts as
signed to the bank by the industrial
commission.
The check was issued to dammons
Is secretary Of the industrial COM
mission Dec. 81, 1881, Mulloy said.
On Jan. 10. 1888. Mulloy told the
meeting, he notified members Of that
body that he had uncovered short
ages In the 0ammons accounts. On
Jan. II. Mulloy claimed. Lund,'
through messenger. caused the
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