The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-01-07

Statements In Speech
Among the statements made by
Governor Nestos in his message
were:
The state mill at Grand Forks, con-
tracts for which were let by pre-
vious administration, cost twice what
it should have cost
The state mill, having passed
through the stages of organization
should make an operating profit in
the future, but it is a big task to
make it pay interest on bonds. de-
probation and allowance for taxes.
The board of managers law for the
mill should be unchanged.
Indebtedness of the Home Building
Association has been reduced $685.
16O.39 by the administration.
The pa,t administration has pre-
vented tax monies of the Bank of
North Dakota from becoming "froz-
en-" in weak banks and the bank has
liquidated much indebtedness.
.Delinquencies on farm loans of the
Bank of North Dakota have been re-
, duced as a result of a conservative
loaning policy.
Great economies have been effect
ed in the conduct of receiverships of
closed banks.
Good business records have been
made by the board of university and
Nsc,.ool lands and the state peniten-
tiary twine plant.
Progress has been made in reduc-
ing taxation.
Costly Institution
The state mill and elevator, the
Governor said, cost $3,O48, 500, adding
that it is a splendidly built institu-
tion.
"ln proportion to capacity, how
ever, the inglorious fact remains that
it is one of the costliest in exist
ence," he said. "A. comparison with
the cost of other plants of the same
capacity indicates that we have in
vested more than double the average
amount" sag
IAN investigation as to the working,
capital available for other mills of
the same size in the spring wheat
belt, outside of the twin cities, indi-
Gates that our mill is amply provided
with working capital and that it
would be. folly to sell any long time
bonds in a market where they could
not be recalled for retirement when
ever desired" he continued. "Ac-
cording to figures prepared by the
Federal Trade Commission for four
mills in the spring wheat region,
outside Of the large cities, of a total
'tapacity of ~i4,2OO barrels shows an
average working capital Of $594,OOO
for mills of three thousand barrel
capacity. While it is conceded that
state owned mill needs more cap
ital. yet it must be apparent that the
capital provided is now ample.
During the past, while the manag-
er has been developing and perfecting
his organization in the mill, elevator
and office. training his sales force,
and developing market for the
flour and other mill products, it was
inevitable that losses should occur.
In view Of these facts and the furth-
er fact that milling conditions were
such that more than so per cent of
the capacity of tho mills in Mimi
eapolis stood idle during the past
year, L do not believe that the oper-
ating loss suffered is materially larg-
er than might reasonably be expect
ed. These losses since the beginning
of operations and until June 80, 1924,
according to the state audit, have
been as follows:
1nterest on construction
Z bonds 1918, ,185.40
Interest on operating bonds 38,33S.2S
4 interest on additional
~ loans, discounts, etc. -. 45,O36.86
\ sYepreciation ............. 08,48O.51
Operating loss .,......... 209,343.S1
From July first, to November 30th,
1924, the additional losses have been:
Interest on construction
Interest on operating bonds 23,958.33
Interest on additional loans
CONTINUED On paes a