Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-01-28
Declares Drake Mill i. Too.
Small To Be Run At A.
Profit Unless II Il Run Con-
tinuously; Says Flour ), May
Be Sold Direct From State
Min. !.
(By stan CORRESPONDENTS !

(By staff Correspondent.)
Bismarck, N. D., ian. 2S.-J. "A. Nc
Govern announced today that he had
turned in his resignation as manager
of the North Dakota Mill and Elevator
association several weeks ago. He ar
rived in Bismarck early this morning.
Although the industrial commission
has not acted formally on Mr.. McGov-
ern's resignation as yet. Mr., ;McGov-
ern says that this action will be
mere formality as he has not been ac-
tually in charge of the operations Of
the mill and elevator association for
several months past. T.s
The industrial commission through
its former secrcrary. w. A. Anderson.
asement of the association, Mr.. Nc
Govern said.
Il suppose that Mr.. Anderson is a
practical mill and grain man as we'll
as lawyer, from the position in
which he was placed by the industrial
commission" said Mr.. McGovern.
Places Blame For Loss.
Asked as to reports of losses by the
Drake mill which have, been current
in the state recently. Mr.. McGovern
said that he Yves unable to say just
What might be the fact in this con-
nection pending the completion OF the
q.
has been due to the fluctuations in the
grain market" said Mr.. McGovern.
Three things have been made ap-
parent by the operation of the Drake
| mill by the industrial commission, Mr.
McGovern said. ~
The first of these is that A small mill
cannot be operated with safe margin
of profit. ,4}--. =. - Jo
Margin TOO Small.
AT the Drake mill we have been
|, operating with net profit of from
| $3.50 to $500 per month";" said Mr.. Nc
Govern. This has been made with the
mill operating at capacity. In the
| event of any accident, shutdown or
similar contingency this margin is not
J sufficient to save the mill from loss.
1t has been shown therefore that it
was good thing for the state that
| the industrial commission did not do.
as many of the farmers wished. and
buy number of small mills through
| out the state"
The second point that Mr. McGoy-
ern said had been demonstrated was;
/ that 1t was possible to esta blish n
! terminal market in this state in con-
nection with the terminal mill and ele-
I vator
Mr.. McGovern claims that the pos;
4 silvil ilfty of -tilc sale ofeflour direct from
:. tIle inlli mas DoPn eSCdOilShCO,
l. Although resigning as manager Of
Fthe mill and elevator association Mr..
+ McGovern will retain his present po-
/ s:tiOn of chief deputy grain inspector.
/ Report Incomplete.
Bismarck. n. D., Jan. eS.-Thc res
port Of the audit of the Drake mill
and elevator made by Bishop Briss-
man and company is decidedly incom-
plcte.
AS will be noticed in the preliminary
! pany this failure to complete the re-
port is charged chiefly to the OBJ
stacles thrown in the way of the audi
tors by the employees of the Drake
mill and other officials! The account
Of this phase of the proceedings is
/, among the most interesting features
of the report. .s4-- So.
Much OH Consignment.
OF the tables appended to the re-
port probably the most interesting is
that which shows the flour shipped out
on consignment. 1t VIII be noted that
more than two-thirds of this -four
went to branches of the Consumers
United Stores company, one of the
side issues put across by the league
leaders.
These institutions had received on
consignment s129.004 wortl, of -four
up to Dec. 3 and had paid the sum or
s95.so3.32 for it,
Prominent among other concerns
listed among the consignees is the now
derunct Peoples Supply company of
Grand Forks.
Outside of these points the audit is
uf necessity inconclusivc. 1t is inter
esting, showing that certain of the
state employees as we'll as those OF
other concerns. as mentioned in the
report for reasons bes. known to
, themselves. made it their business to
prevent full and complete audit
! ! from being obtained. The statement
OF Bishop Br:ssman and company in
; regard to the audit, and the chief of
the tables contained therein follows: