The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-10-02
GOVERNOR SEES HOPE FOR n. D. mill:
COST SHOWN in CONSTRUCTION AUDIT
Best Months Ahead for Max.
ing Money in Flour Mill
Business, He Declares
DIS APPOINT ED
Hoped for Better Showing,
But Says There Is Much to
Give Optimism for Future

Belief that the North Dakota Stat,
Mill at Grand Forks will make bet
ter showing in the future than il
contained in the first public audi
report was expressed today by Gov
ernor r. A. Nestos, commenting upo,
the Bishop, Brissman and Compan,
audit which ascribed loss of $3.50,
S47.57 for the period from October
%, 1922 to July 81, 1923.
Asked for expression on the audit
report, Governor Nestos made thu
following statement:
II am naturally somewhat disap
pointed over the fact that We have
lost money in the operation of thu
mill during the past eight months
although presume there is no rea
cause for such disappointment.
while all those who have talked
with US about the matter have ex
pressed the opinion that we werI
Bound to lose considerable money or
the enterprise the first year, and
others have said that it was ridicul.
Gus ever to expect to make any pro-
tit from it, yet when the industrial
commission after long and careful
search were able to secure in addi-
tion to the splendid head miller al
ready employed, a general manager
OF the wide experience and splendid
recommendations of Mr.. Austin, we
began to hope and have expected
that the loss the first eight months
would be very small and that by the
end Of the year we might break even
on the running expenses.
May Wipe it Out
"Of course, We realize that the
fall months are always the best and
most profitable in the milling busi-
ness, and since the August state ment
recently filed with US by Mr.. Aus
tin shows that during that month he
had an operating, profit of over
$4,000, it indicates that the enter
prise is now over the worst and that
the fall profits on operation may
practically wipe out the spring and
summer losses.
"Those who have great faith in the
mill should not become disheartened
because Of the fact that the first
eight months show losses. I realize
now that it could not very we'll be
otherwise. In fairness, it should be
remembered that the construction
accounts were not closed until March
first and that some construction and
alteration work has been going on
ever since; that the elevator was
completed TOO late to use for the
1922 crop; that the machinery was
to be tested out. the office and mill
ing organization built, sales force
created and trained, and q market
established for a new product in
competition with the best the old
mills could produce. When we re-
member that this audit not only
presents the business results for the
poorest part Of the year, but also
reflects the results Of all Of the
above handicaps, it is not at all sur
prising that the operating loss has
reached large sum.
Best Months Ahead
"But now that the best milling
months Of the year are yet before
rs, with the force inside. and out
side OF the mill pretty well organic
ed and trained for work, and with
the market Tor the Dakota Maid
flour pretty well established, it will
not only be possible to reduce the
expenses but to increase the profits
With each passing month,
Il have always believed that it
vas we'll to have a managing board
familiar with the various phases. of
The business to be operated, and who
we're so located and in position to
give the necessary time to assist the
in the best and wisest
operation Of the mill and
elevator, and it was for that reason
hat the last Legislature provided for
'uch board Of managers and / have
he confidence that those appointed
IN this board by the industrial COM
mission will be Of great assistance !!
o the manager Of the mill and ele-
'ator In bringing about the decreas-
q expenses Of operation and selling, |
which We all hope and believe viii |
'esult in that the mill before long |
vill pay not only the operating ex-
lenses but We trust also the inter.
u on The bonds issued for the con.
tsuctioa q the mill" .;3.s