The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-02-02
CLAIMS LOSS
IS SHOWN BY
FORKS PLANT
State Mill Hasn't Made Profit
as Claimed, Says j. G.
GlmderSOn
ANALYZES THE FIGURES

The North Dakota state mill and
elevator located at Grand Forks lost
$107,855.62 from Aug. l to Dec 81 /,
1898, instead of making profit of
$13,725.2l in that period as claimed
by the board of managers, declares
j. 6. Gunderson of Aneta, president
of the State Taxpayers association,
in letter to ne board.
Mr.. Gunderson charges the mana
.Ars with overlooking certain I'M
Eortant items, such as interest and
depreciation, in their recent state
ment which claimed to profit. He
pointed out, for instance, that the
interest due on construction bonds
on the date Of the managers state
ment totaled $70,666.G6. Depreciation
on machinery and buildings during
the period amounts to $42,384.95 he
declares.
The Tax Payers association p,esi-
dent critici.es the board for emitting
figures regarding the $3,0OO,O00 con-
ganization expense and publicity cost
Under deferred charge to operations
p part of the assets He declares
THAT these latter two figures are
worthless.
Mr.. Gunderson's letter follows:
'To Board of Managers,
State Mill, Grand Forks, N. D.
II notice in the Grand Forks Her
aid of Friday, Jan. % statement Of
the financial condition of the state
mill and elevator, claiming a profit
of $13, 1881, made from Aug. 1 to
Dec. 81, 1928. | take exception to
this report, as not being correct and
that instead of making the above
amount there was really loss of
oyer 100000. The following is a
COPY of the statement as it appeared
in the Herald. Statement omitted
"At the date Of your statement
there was due on interest on account
of the construction bonds Of $1,000
600, $70,666.66 being in, interest
from Aug. l to Dec. 81, 1928.
t$l 100000 at percent and 81 500, 900
at 1-2 percent.) You have made no
,tfntion of these. Then there is the
you cannot help but figure; at least
on the mill machinery and other
equipment consisting of trackage,
automobiles, trucks, etc. The gov
eminent allows 10 percent on mill
machinery, but let us call it 5 per
cent. 1t allows 2 percent on concrete
buildings and 5 percent on wooden
structures. Depreciation on machin-
cry for five months at percent per
annum ($l ,40S, 942.06) and on amount
Invested in buildings ($1 ,563, 846.44)
IT percent, amounts to $42,384.95.
Then you have as an asset unuer
the head of deferred charge to oper-
alton; organization expenses, $5,579.-
vi and publicity $2,95021. claim they
are worthless as they have no cash
value :, Etever and only serve to mis-
inform the public. Who would buy
your organization expense or who
would buy skull caps, aprons and
junk like that bought and paid for,
orpublicity purposes?
'iOu listed assets under eonstruc-
ton department; due on inter office
account, $21,67l.27. also question
this very much as an asset.
why a statement of the mills
financial condition should be made
tf without showing the $3,OOO,OOC of
construction bonds, | am at a loss to
know. The average man reading
your statement will figure there was
only one million dollars in bonding
Indebtedness Whilei the institut ION
has $4,OO0,OOO
./"Suming this up, we have $7O,-
'G66.66 interest, $42,3S495 deprecia-
ton, $5,579.01 organization expense,
and $2,95O.21 advertising; or total
of $121 ,5S0.S3, expenses unaccounted
for by you, less your claim for a
profit of $13,725.21 or a loss to the
taxpayer since Aug. to Dec. 81,
1923, Of $1O7,855.62.
81 again desire to claim that we
should have u thorough audit by
some firm of accountants that makes
. his kind of business a speciality, in
order that we might find out the
Dxact financial situation, and 1 be-
lieve the taxpayers of the state
should have voice in the selection
of such firm of accountants and the
right to man representing them
at such an audit, that we might
have combined political and tax
payers audit.
II do not believe that your state
ment will appeal to the taxpayers
OF the state because it is mislead-
iAg in that it SHOWS profit, when
there is really "a big loss.
b (SigneO u. G. Gunderson,
'President State Taxpayers
Association.
,Aneta. N. d., Jan. 81, 1924"