The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-10-01

rel produced.
The terminal elevator erected to
function in connection with the mill
contributed materially to the deficit,
the report says, the elevator not he
ing ready in time for handling any
Of the 1922 crop of wheat.
Officials of the Industrial Commits
sion, which now are relieved Of the
supervision Of the mill since the cre-
alton Of Board Of Managers, had
not studied the audit report sufiici-
emily today to offer statements. In
formal views Represented both opti-
mistic. and pessimistic outlooks.
A Views Differ.
On the one hand it was stated by
one Official that c. E. Austin, man
ager of the mill, had informed the
commission that during August, since
the audit report was completed, tha
operating income exceeded expenses
by $6,la4.66. this being the first
month in which the bill has shown
an operating profit.
The mill, it was held, has passed
through the most trying time and
since the besttimes for -four mills to
profit. is in the late fall and early
winter. months. much of the losses
may be recoupea.
Also. that the task of building ny
sales for the mill has been greatest
in the early stages and the mill was
forced to make a better -four than
the selling price justified in order to
attract customers.
The same official held tnat G. =.
Austin, the manager, is capable
manager. having made reputation
in handling publicly owned elevators
and privately owned -four mills in
Canada.
That Mr.. Austin informed the
legislaturee that they need not be
surprised if there was a deficit OF
100000 the first year.
On the other hand it was pointed
out in an Official quarter that the
mill already was facing q heavy loss,
that as predicted it had been found
tremendous task to throw a state
owned institution into competition
with experience milling concerns in
one Of the most scientifically special
lied businesses existing, that there
must be taken into consideration in
addition to operating costs interest
upon the construction bonds of $3,-
100000, which alone amounts to more
than $l50,000 per year, the interest
on bonds during course Of construc-
tion which was frequently delayed
being $86,258.06. In addition depre-
citation to the amount Of about $751;
600 per year must be taken into con-
sideration. To this should be added
taxes which the state loses and which
a private plant would pay, and which
might run if profits were made to
considerably more than 100000 q
year.
Sales Costs High.
Under the statement Of operating
costs the audit report says:
"This statement exhibits -four
sales, material cost thereof, operat-
ing expenses, selling expenses, gem
eral expenses and net operating loss
of SIPS, ,05S.68, which, with additions
to and deductions from income is
increased to $230,846.67, the
amount Of deficit a. stated ON the
within balance sheet.
During the period under survey
the elevator functioned only in the
handling and cleaning Of grain for
the mill. It was Of course contem-
plated in the original plan Of the
unit that 1t be SO constructed that it
might operate - terminal elevator
in addition to meeting the require
ments Of the mill.
"The total cost Of the elevator and
storage tank units, incltdine elsya-
tor machinery, is el,2Al, ,726.lO, of ap-
proximtely Al per cent Of the total
investment.
"The storage capacity Of the tanks
and elevator bins 10 approximately
1,0O0, 900 bushels. The storage space
required for the mill, ws bslievs,
should not under ordinary conditisns
exceed 76O, 900 bushels. This would
leave approximately 1,l60,OOO. bushais
space that could bs utilised for stor-
are ppfposes. ssssSssa:
'sIt = evident thet it 81 extremely
timpoGtent tss Meet thae ths SIetaxox
be mads a income ptodpciAg alif
both hy crsditinx ths Atfvies 5ts ~
mill aad ~ n&ill1tng thS roasnlniSk
available stSrAgS space. IL a7sF
Ibs toeer6S ~ MalntsinSa ~
lsAet permat - Sre tlp1 ef a ~ ~,
eUxata 6kakoHnaHk - Y, ~ ~ 49,.