The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-01-26
3FL0UR MILLS
TO BE CLOSED
IN NO. DAKOTA
Russell-Miller Mills To BE
Closed in Bismarck, James
town and Valley City
STATE MILL CAUSE?
Understood That Sale of
Grand Forks Flour Below
Cost Drives Them Out

The Russcll-Millc Company of
Minneapolis today announced the
closing Of its Bismarck flour mill,
its jamestown mill and one of the
two mills at Valley City on January
81
In announcing the closing W. c.
Helm, general manager. made no ex-
tended statement Of the reason for
closing. The reason, according to
understanding in milling circles, is
that the mills are being closed be-
cause they are driven out Of business
by the North Dakota state mill and
elevator at Grand Forks.
The North Dakota state mill has
sought to make its chief market
North Dakota, and according to the
announcement made few months
ago by c. f.. Austin. general man
ager, it sold flour at less than cost
in order to establish a market
The results of the closing of the
Russell Miller mill in Bismarck are:
Loss of 10 to 25 employees.
Loss to farmers in this section
of wagon market for wheat, which
resulted usually in higher prices be-
ing paid them.
Loss to taxpayers Of $l,l51.44 in
taxes each year paid on the mill.
Loss to business hcn of the pat
ronage of the employees.
The gain is to the city Of Grand
Forks and the state flour mill there.
II. c. Bjerke, manager Of the local
hn &ra for
Snow will be in charge of the Gle
vator and will buy grain here. The
employees will be given employment
at other mills of the Russell Miller
company as fast as they can be alb
sorbed
The situation faced by the COM
pany was chiefly the fact that the
North Dakota state mill at Grand
Forks had cut in on the market for
flour in this state. 1t sold some of
its brands at prices the private mill
could not meet. The statement of
the company for the first several
months of its operations showed
that flour was sold at a Toss and the
manager stated this was necessary
to establish a market.
Others To Go?
If the action is continued, il is
freely predicted in milling circles, it
will probably drive 40 to 80 small
flour mills in the state out of bus
mess. This will mean gain in bus
mess for the state mill, loss in
taxes for the other mills, loss to
the farmers of wagon market for
their wheat and force them to sell
their wleat at these 40 to SO points
on basis of shipping charges de
Quoted.
Rise in labor and commodity costs
since the war, and the uncertainty
of the flour milling industry, is also
to have caused some difficulty in
the operation of plants in this state.
The Russell-Miller company has
never voiced protest against the
tactics Of the state mill at Grand
Forks in selling below cost, and it
is understood officials will refuse
to make a statement in regard to the
closing Of the mills here. However,
various employees Of the company
have been shown the situation as re-
flected before the directors Of the
corporation.
Who Benefits
The railroads will gain as we'll as
Grand Forks as a result Of the ac-
ton. II the state penitentiary To-
Gated at Bismarck, for example, buys
from the Grand Forks mill, the rail
roads are benefited.
One local man pointed out this
Continued on Page 81