The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-01-07
Nestos, in Message
Reviews Work of
Administration
CONTINUED from page y
rom Bank of North Da-

CONTINUED from page y
from Bank of North Da-
kota, discounts, etc. 80. 16,173.70
Depreciation ..........:. 81, 497.44
Operating gain ........... 58,037.O7
THE accuracy of the last three
items, however, is subject to audit.
| This indicates total interest loss
of more than $533,484.24, and total
operating loss of about $751; ,306.74.
81 had expected that with the ex-
perience of 1923 and with a perfected
and efficiently functioning organiza-
| ton inside and outside of the mill,
we would have been able to make
| slightly more than operating expen-
ses in 1924, but present indications
are that the final figures for the year
will indicate small operating loss,
although l am glad to note the oper-
ating gain of $5s,O27.O7 for the past
! five months.
with the preliminary work done,
the organization may now be smpli-
fled by the consolidation of some
positions and thus make possible a
reduction in expenses. 1t ought not
to be difficult therefore, in the COM
ing years to make at least operating
expenses. I have contended and full
ly believe that by exercising care
and using good business judgment
the mill will pay operating expenses
and in all probability small addi-
tional amount to apply on interest.
For the purpose of insuring such re-
suits for 1925, the Bank Of North Da-
kota has gone the very limit this fall
in providing money with which to
| purchase milling wheat so as to avoid
the larger premiums that unquestion-
ably will be eXacted in the spring and
summer. This amount has varied
greatly, reaching at one time $749,-
1862.
Wishes Mill May Pay
81 am glad to know that my sue
cessor believes that he can make the
mill pay. He will have my very
best wishes in his effort to do so. To
make it pay will mean that in addi-
ton to earning operating expenses,
which should not be difficult now
when the milling, office, and sales
force has been fully organized and a
market for our flour we'll developed,
he will also have to make enough
more to pay about third of mil
lion per year in interest, taxes and
depreciation. No business NANNY
successor is a business man-would
begin to claim profits until these
charges have all been met. While
have not believed it was possible to
make the mill a paying institution in
this, the only proper sense of the
term, | am anxiously awaiting, as
am sure every other citizen is, the
results of the administration of this
institution by my successor in the
hope that he may be able to do So
He pledged himself without reserva-
ton, to put the mill on a paying
basis; that means to meet from its
earnings all the charges / have emu
merated and to make it real asset
to the people of this state. He has
laid upon himself a task from which
more timid souls might we'll shrink
| We may be assured that he will spare
no effort to show a profit. If he
successfully performs this Herculean
labor, he will be entitled to all
glory. Every good citizen will wish
him God speed. May he make il
pay greatly
| Bank of N. ID.
| In discussing the Bank of North
Dakota, Mr.. Nestos said:
"When We took charge of the Bank
of North Dakota we discovered that
there had been deposited by the
former administration in various
banks of the state amounts ranging
from few dollars up to about $442,.
900, and aggregating $3,996,SO7. Ap.
parently Aost of the banks SO fav.
ored were among the weakest anG
most inefficiently managed banks in
the state. The money so loaned and
redeposited belonged to the tax.
payers. They were intended to be
used to run the state and local gov
eminent, state institutions, and as
a revolving fund for mill and elevator
construction and the farm loan bus.
mess. We found that large num-
Der Of these banks had closed al
ready with 1880, 9s6.2O Of these tan
moneys tied up in them. Most OF
the others were in shaky condition
and upon investigation we became
satisfied that if an immediate pay.
ment were demanded not only woult
we secure but little, but that they
would be constrained to close thei1
doors, while if given time most Of
them would have fair chance Of
working out Of their difficulties. Sc
we concluded that the wiser policy
was to nurse them along and give
them chance to repay these funds
and to pay them gradually, as crops
and conditions permitted. During
our administration, under the man
agement of 6, 4. Green, We have col.
i iected $3.50, 1903. 80 Of this amount
Leaving only {2la,oi6, 74-in the oper