The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1926-04-07
REPORT GIVES
T0TALL0SS OF
MILLAT DRAKE
Is Placed at $l2O,9l6.7O-Sale
Of Property Recommend
ed BY Auditor :"

Losses on the state mill at Drake.
closed since late in 1928, totallcd
$l2O,0l6.70, according to report by
X. c. Nelson, auditor of the state
mill and elevator association to the
state industrial commission which has
supervision of the property. The de-
ficit at the end Of 1924 as shown on
the books was sos.
The balance sheet Of the property.
filed with the report. shows assets
and liabilities balancing at $169. 144.O4.
OF the assets, however. $12O,9l6.70 is
listed as profit and loss and the plant
and equipment are listed as having an
inventory value Of $32,5493O. Cash
in the Bank Of North Dakota is listed
at &l2.748.47.
The liabilities consist Of $l36,6S1 40
invested in the property by the mill
and elevator association; $l5.SSO.9z
listed as reserve for depreciation and
$l6.58l.72 charged as interest on the
capital investment.
~ Urges Sale at Property
Although the industrial commission
has failed to find purchaser for the
mill, DESPITE legislative mandate
that it be disposed of, Nelson urges
that another special effort be made
to sell the property. The only bids
received by the industrial commission
year ago represented approximately
the junk value of the machinery.
In his report Nelson said: "Thc
mill has not been in operation DUR
ing the last year; having been closed
down the latter part of 1928 and re-
NAMED closed since. There has been
a caretaker during the last year, Mr..
f.. f. Nelson, who is still in charge
drawing a. monthly salary of 500.
ITO my knowledge there has been
no special effort made to dispose of
the property during the last year.
During the year 1924 the board of
managers acted in accordance with
the action of the legislature in ads
vertising the property for sale, but
did not get a bid which was considers
cd. I would recommend that some spc-
cial effort be pat forth to dispose of
this property at the earliest possible
date as 1t is deprcciating in value
very fast. this is especially true OF
the machinery. The buildings arc
also in rather unkcpt condition
owing to lack Of paint.
Revenue Is Small
GAS recommended in my 1924 re-
port. will again call your attention
to the fact that the property Is not in
presentable condition to show to
prospective purchasers to advantage.
The only revenue derived from the
property during the year 1928 is $40
rent from part of the warehouse. The
balance of the warehouse has been
utilized. by the Grand Forks Mill for
storing flour and the caretaker who
is in charge Of it has had charge Of
the distribution Of flour from ware
house for which the Grand Forks Mill
has paid no rent, nor have they paid
the caretaker's salary except that
they are paying him an additional $40
per month over and above what he is
paid by the Drake Mill funds.
''In conjunction with schedule No.
8, Reserve for Interest and Deprecia-
ton. | have set up an additional re-
serve for depreciation covering the
years 1924 and 1925 on capital invest
ment, calculating it on basis of 6
per cent interest covering the two
year period which is 81 ,53l.72. AS far
as know. there is no interest being
charged to the Drake Mill either from
bonds sold or borrowed money, but
the capital investment consists Of
transferring the Terminal Elevator
fund which was accumulated prior to
1919 to the Drake Mill. think the
institution should be charged with a
reasonable interest rate on this cap.
ital investment in order to show just
how it stands"