Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-12-12
OVER ! !. $4,000 ! q!
SINCE JAN. /
CORPORATIONS.
Twenty Thousand Addition
al Figured as Loss on
Consignrnents.
BESIDES FORMER
$l7,6es DEFICIT Fl
Consumers Stores Co. Has
Over $4,000 Worth Of
Flour Unpaid For.
(Herald Special Service.)

(Herald Special Service.)
Bismarck, N. D., Dec. 12.-Be-
tween January / and October Is,
1921, the Drake mill lost money
at the rate of more than $2,50O
per month.
This is shown by a report made
by the Equitable Audit Co., of
Fargo, as of October Is to the old
industrial commission, which has
now come into the hands of the
new commission.
The direct loss for, the period
on the mills operations is given
as $21,712.42 on business amount
ing to $144,ls8.29.
In addition to this the audit
company sets aside a reserve of
$4,000 as reserve to cover loss
es which are expected to result
on flour shipped on consignment,
etc. This expected loss includes
$13,352.87 on -four shipped to the
Consumers United Stores Co.
The losses as stated above are
in addition to tlE $17,6 loss in
CURED previous to Jan. !, 1921,
which was given in the former re-
port Of the Equitable Audit Co. B
SOLD BELOW COST PRICE.
The report shows that the av-
eraKe cost Of making ont. barrel
Honf at The 'rnilE h inclnd ndlnEs all
operating costs was $S.O41z and
that the average selling price per
barrel was 81. .2s1z, resulting in an
average loss per barrel Of 76
cents.
In addition to this loss there is
listed a loss Of $5,195.57 incurred
on three cars Of. flour in transit,
carried as refused and sold at a
loss. 5.g IF e -i Z - -,
The losses 50 far incurred are
summarized as follows: :.
Operating loss, Jan. ! to April
27, exclusive of interest on in
vestment- 81, 1897: AZ.
Operating loss, April "a to Oc-
tober Is, exclusive Of interest on
.investnent-$11 ,723. 90.
Interest. on investment, 1anu-
ary / to Oct. Is, 1921-$5, 1891 81.
Total loss for the period-$21,-
712.42.
Other Losses.
In addition to this loss there are the
losses anticipated on storage nc
counts, for which the reserve Of $780,
600 is set up by the audit company.
In this connection the ledger account
Of October Is included, the following
items:
Flour reported sold by Con-
sumeFs' United Stores Co., but
unpaid for. $1S.352.87
Peoples Supply Co. of Grand
Forks (defunct). ~ .606.5s.
Capitol Commercial Co. of Bis
marck $3.13O.14. and a large
number of small open cpnsign-
nlent accounts of individual Con-
sumers' stores, elevators, etc.
AS most of these accounts are with
the Consumers United Stores co. and
this concern is bankrupt. the audit
company has thought it necessary to
set up the account of 100000 to cover
losses which are bound to result.
Comment by Auditors.
In connection with this the audit
company says:
"Storage account-$4, SOC. .12-Un-
der schedule F will be. found de-
tailed statement of this account. this
amount of which is $24.606.12. On
the balance sheet we have deducted
the 10000 as a reserve for possible
loss, and carried onto the assets only
$4.O60.12. A little study Of Schedule
F will reflect quite a serious situation.
Z On our audit report Of April 81, 1921.
we showed an amount due for goods
sold but unpaid. $1S,S68.10. In the
past Ave and one-half months tho on
~ payment recorded at Drake against
this asset Is for 1851. which amount
is a 10 per cent dividend from the de-
.