The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1926-06-01

do not understand the services such
an institution can render to the state.
In time. however, the functions Of
the Bank Of North Dakota will be as
we'll understood as the functions of
the Irvine plant, the bonding depart
ment. the hail insurance department,
the fire and tornado insurance depart
ment and the workmen's compensa-
tiOn bureau.
There is an old saying that 1--WE
must first learn to Green before we can
learn to walk" The Bank Of North
Dakota is now safely past the creep
ing stage and is well able to stand
on its own feet
Mill and Elevator
The law creating the mill and clevn-
the same time the Bank of North
Dakota was created. The attacks
upon the mill and elevator have been
the most severe Of all. One Of the
first attacks to be made was the in
junction action brought by ~ taxpay-
crs. The construction of the mill and
elevator had been begun before this
injunction was brought and because
Of this litigation completion Of the
structure was delayed for con-
siderable length Of time, with the
result that the cost Of the mill and
elevator buildings and the machinery
was brought to the highest point.
This is one reason why the mill and
elevator cost 81 100000 more than it
should have cost. The injunction
was finally disposed Of and construc-
ton work resumed.
The operation Of the mill md
elevator was commenced in October.
1922, which was very unfortunate.
Neither the mill nor the elevator was
completed at that time and operation
Of this Industry should not have been
commenced until the spring Of 1923.
The operating loss Of this industry
up to January l, 1895, was sol ,llO.O1;
the interest on mill and elevator
bonds SlO5. l52.07, and depreciation
Sl4l .O05.92. making "a total Of
S637 1868.
Between January l. 1925, and jan
uary l. 1926. your directors succeeded
in changing these figures from an
operating loss to an operating gain
in the sum Of $l43,4S2.2 This
would have Melted a profit of an per
cent on the investment If the capital
stock in the mill and elevator associa-
tion had been paid up. During the
same year $263,9l5.3l was charged
off as interest on thu bonds. and
$67 .GlO.44 to depreciation, making u
total Of 1891 ,525.75.
| You can readily see from this state
mcnt that our profits have not been
sufficient to pay 6 per cent interest
| on 81 500, 900 Of bonds, plus the item
of depreciation. But any industry
(, that can make 3,s per cent on it's in
vestment in one year is considered
a very sound institution. There arc
very few privately owned industries
in North Dakota that can make any
better showing.
The Mill and Elevator a. Marketing
| Agency
To produce a profit on the invest
ment is, however, but very small
part Of the real function Of the state
mill and elevator. 1t was primarily
/ intended that the mill and elevator
should become a marketing agency for
North Dakota products. The prin.
cipal product Of our state is wheat.
AS a marketing agency for this prod
uct the mill and elevator has far
exceeded the expectations Of any Of
tus.
| Through our state laboratory we
+, are able to ascertain the true value
of our wheat as Il milling product.
North Dakota has been produc ing
pretty much the same grade Of wheat
for the past 40 years or more. This
wheat has been sold on q grade basis.
with no attention paid to its milling
alue. A dark northern wheat usually
! sells on the Minneapolis market for
i from l6. to % cents over No. Nor
, thern. AS matter of fact. No. 4
! northern may be worth more as a
milling wheat than the dark northern.
There have been cars Of wheat ship
/, ped to the state mill that prove this
to be fact. One case have in mind
shipped to the mill by the same party
car of No. 4 northern. The difference
between these two grades on his
elevator card price was about % cents
per bushel. The wheat was shipped
to the mill and the shipper asked to
have a protein test run. BY this pro-
tein test it was established that his
No. 4 northern was worth 2 cents per
bushel more than his. dark northern.
In other words his No. 4 northern
wheat brought him "a cents bushel
more than the elevator card price mt
his local elevator. The local elevator
could not possibly have obtained 4
premium for him. If no protein test
had been made the wheat would have
| sold on grade basis.
From information gathered from
letters and conversations with farm
.. ers and elevator men, / have ascer-
tanned that wheat brings from 5 to
! Is cents a bushel more when sold
on protein basis than it brings
when sold on grade basis. Such be-
ing the case, because of the fact that
we have state mill and elevator for
a marketing agency, with facilities
for laboratory. analysis, the farmers
of North Dakota. have made from
to 16 million dollars on the 1l4,-
0O0, 900 bushels Of wheat produced in
the state last year.
Has it ever occurred to you that
the agricultural industry is the last
of the industries to realize the value
of laboratory analysis of its prod
ucts? Every manufacturing industry
has laboratory in which its products
are tested and analysed. The labora-
tory analysis proves the worth of the
commodity, and because of such analy-
sis the manufacturers are able to tell
their buyers and consumers all about
the commodity they have to sell.
You are all more Or less familiar
with the marketing IF milk and cream.
Some IS years ago milk was sold by
the gallon or by the pound, regard
less of whether it came from Jersey
COW or a Holstein, and without TAX
ing into account whether the milk
came from cow that was grain fed
or straw fed. Under such system
you can readily see that there was
no incentive TO have good milk or
cream. But the dairy industry soon
learned the value of chemical analy-
sis Of their product, and now milk
and creams are sold throughout the
country on q basis Of butterfat con-
tent