Capital journal. (Salem, Or.) 1919-1980, 1921-10-29
Compton Explains

tNvAainueu ALOm rage One-l
which is sold to the linseed OH
works. Consequently we are sell.
ing no fiber at this time, but are.
selling green upholstry tow. mere
" In sufficient quantities to H.
nance the payroll. An effort will &
be made to sell no fiber until the
market is more nearly on normal
basis
ITO intelligently understand
the present flax situation, the
financial history of the plant
should be briefly recounted. IA
certified public accountant was
employed to go into such history
from the time OF the plants In
stallation to March 81. 1921, the
date when It was turned over to
the warden Of the prison by the
board Of control. as provided BY
law Up to that time $57,541,9z
had been paid for flax straw,
seed and similar expense to the
farmers. The cost Of operation.
Of the plant during that period
had been $82,05I10S, and depre-ss
citation was figured at $5.202,S7.S,
Total receipts from the sale .of.
straw, seed and other producta s
amounted to $115.00711. and the
straw and seed on hand at that.
time had an estimated value of
$21, 1881. Total cost OF flax,
operation and depreciation
amounted to $144,795.82 as
against total receipts and prodE
ucts on hand of S$136,4 1876 592. an
a loss Of $S,299.9O. shown as Of
March 81, 1921.
Consequently we were con-
fronted at the outset of this sea-
son with negligible amount OF
cash on hand. The growers were
called together by Governor Olcott
and the board OF control and the
situation frankly presented to-
them. Notwithstanding the facts
thus presented at this meeting aB
to the financial status Of the FLAX
industry the growers continuSd
with the planting. ~ 1a
by the time farmers had de-i
livered the straw OF their 1891
crop, an added debt OF 37,021.5se
was incurred, and with no money
from which to meet our obligA-
tions.
I'VE can only meet these obli-a
cations through the sale Of prod-;A
ucts. These must be worked up
at a continual monthly expense
of $65O.00 covering the payroll,
exclusive OF miscellaneous ex-
penses which will approximate
5000 additional. 'i
by careful, economical man
agement, we hope to weather the
| financial stress and meet pay-as
ments to the farmers as soon 90
possible, but how soon that will
be cannot say. All depends up
on market conditions and the
success we have in financing cur
rent expenses. In the meantime
those who have delivered flax to
the prison must wait for their
money. There is no other soiu-
tion to the problem as far as the
prison Is concerned. snsA
"The flax industry is one OF
several departments which areA
conducted at the prison. ] am
anxious that every department be-
continued at the highest possible
state OF efficiency. 1t is further
nv wish that the flax growers re-
ceive every dollar coming to them
under the terms OF their contracts
and am bending every effort TO
| this end. Governor Olcott several 2
months ago informed me he would
present the matter to the next
regular legislative assembly with
the recommendation that all
claims be paid in the event OF cur =
inability TO dispose Of our prod-f
ucts at a satisfactory price.
TT should be remembered that
no appropriation or working capra
ital has been furnished by the
state other than the original $4O,-7
| 600 OF which about $4,000 was
nut into the equipment OF the
plant. leaving approximately $2S.-s
| 600 as working capital to finance
its operations. This was expended
several years ago and since that
time the plant has been operating
from hand to mouth, without
working capital. or further state
| s.a... g.. auch eanft n "IiIl ll