The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-10-30
EXPERIENCE0F
STATE IN MILL
BUSINESS TOLD
Governor NestOs. in Grafton
Speech. Says Politics Was
Kept Out OF II
MANAGER SELECTION
G.. +. Austin Chosen in Part
Because of Absence Of PO-
liticaI Ties, He Says

Grafton, N. d., Oct. 3O.-Governot
Il. A. Nestos, in a speech at Grafton
reviewed, in the course of his pOliti-
cal address, the history of the state
owned mill and elevator at Grand
Forks, and charged political oppon-
ents would put political management
in the bill through abolishing the
board Of managers created. The in
dealing with the various state indus
tries, the Governor said of the Grand
Forks mill:
"The platform Of the Independents
again declares for a full, fair, and
honest trial of this project. The con-
vention felt that the losses during
the past year were considerable, that
in view Of the continued construction
work during the first half of the
year and the difficulties connected
with building new business, the
experience to date could not as yet
be regarded as full and fair trial
and that we should therefore con-
tinue the state management of this
project until such time as the evil
dence of its value to the state should
be SO complete and fair as to satisfy
all reasonable men.
"While the Independents did not
believe that it was either wise or
profitable for the state to make great
investments in buildings, machinery,
and working capital to 60 into busi-
ness in competition with citizens and
taxpayers of the state, yet we were
of the opinion that since more than
million dollars had been spent in
the partial erection of the walls Of
the mill and elevator at Grand Forks,
and contracts entered into for the
completion Of the buildings and the
manufacture Of most Of the machin-
cry required, and, since the majority
of our people apparently desired to
try this experiment, we should COM
plete the project and give it full,
fair, and honest trial. This we have
done and are doing. Some would
have you believe that, since some
losses have been suffered, we were
not acting in good faith and trying
to achieve success. In this they
know they are wrong and unfair.
Expected Loss At Start
mo man Of any business expert
ence or judgment supposed that dur
ing the first year, while we were still
busy with building operations and
alterations, while we were training
u working force outside and inside
Of the mill and elevator, and while
we were creating market for "Da-
kota Maid" flour in competition with
many excellent and we'll known
brands that had been sold for years,
we should be able to make profit
or even pay running expenses. Every
person who knew anything about the
business told US very frankly that We
were bound to suffer big losses the
first year. While we have tried to
keep the losses as low as possible,
every member of the administration
and, ! am sure, every other rsas0na-
BILE man expected that the statement
would show loss for the first year.
Mr.. Austin, the general manager,
himself told the legislative commit
tees last winter that they should not
feel discouraged even if the operat-
ing loss the first year should ap-
proximate a quarter of Il million dol
lars.
when the project was nearing
completion, the problem that con-
fronted the industrial commission
was the best method to be pursued
to secure the honest and efficient
that would enable US to
give the project full, fair, and hon
est trial as promised to the people.
1t was necessary that we should Sc
cure the head miller and the super
intendent of the elevator Immediate
ly to help supervise the installation
of the machinery in the mill and ele-
vator. With the cooperation of a
committee of the commercial club at
Grand Forks, we were fortunate in
securing an excellent head miller and
an elevator superintendent of wide
and successful experience.
"When the first unit of the mill
was completed, it seemed plain to
the industrial commission and it was
Continued on page 81