The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1927-11-30

feed against an anticipated upward
market trend would have been MOTH
ing other than speculation and, in
our opinion, not to be condoned.
cat the time the contracts were
made the feed situation in North
Dakota was not . stringent one and
it would have required somewhat Of
q super-intelligence to predict, six
months in advance, the decidedly
unusual rise in feed prices during
the fall and winter Of 1926 and
1927. That sort Of intelligence
would perhaps show a lack Of busi-
ness acumen on the part Of other
millers that failed to fill their feed
contracts and were obliged to pay
penalties similar to those paid by
the North Dakota Mill and Eleva-
tor association"
An invoice by the RUSSELL Miller
Milling company is duplicated in
the report and shows that 1890
was said by that firm for. the privi-
lege of canceling 220 tons Of bran
sold to the Joseph company.
Others Did Same Thing
Commenting further on the feed
sales by other companies. the report
says: 1.-THE Russell-Miller Milling
company cancelled out on December
Is, 1926, and paid q penalty of Sc
q ton as of that date. In addition
to the cancellation as indicated by
the above invoice, the Russell
Miller Milling company cancelled
out, on November %, 1926, $50 tons
Of Occident bran at $25 per ton,
paying 81 per ton penalty or 1000.
Also cancelled on the same date 500
tons Of mixed feed at $24.5O per
ton, paying a penalty of $3.50 on
such contract. This company has
mills located in various parts Of the
state of North Dakota and is in ex-
cellent position to keep in touch
with feed conditions. Other illus
trative transactions could be given.
However, it appears that the ones
indicated above should establish
that there was nothing irregular in
the business transactions between
tn state mill and the /. S. Joseph
company.
'In his report on the examination
Of the books of the /. S. Joseph
company. the auditor for the state
board Of auditors made the follow.
ing rather inconsistent statement:
"'Considerable stress has beer
placed upon the fact that the /. S
Joseph company has been very len
lent with the state mill in permit
ting the state mill to fill some o.
its contracts long after they hat
matured, or at the convenience o.
the mill. This action on the part o,
the ]. S. Joseph company was due t.
the fact that the state mill con
tracts Numbers 1O,158 and 1O,169
respectively, calling for 500 tons o.
pure bran and 500 tons of STANDARD
middlings, provided that no can
collation. penalty should be imposed
on these two contracts, and they
might be filled at the convenienc,
| of the state mill. ......
Argument Is Lame
"By referring to exhibit G Of thi
report or to page 104 Of Mr.. Lund'
report, it will be noted that the con
tracts referred to were filled an,
no penalty accrued thereon, and thu
facts prove the foregoing argumen
to be very lame. The I. S. JOSEPH
company had a full and legal RICH
to collect a penalty of 81 per tol
on the 1922 tons cancelled in add
ton to the 81 per ton rise in tn
market.
According to the terms Of al
the contracts, with the exception
Of contracts 10,158 and 10,150 whicl
were filled, specifically on con
tracts calling for delivery of 1890
tons Of feed, there was nothing t
preclude the I. S. Joseph compan
from collecting 81 per ton in tn
event delivery was not made on tn
date called for in the contract. TIL
fact that contracts for 1000 tons Q
feed did not contain q penalt
clause in case of default surel
would not afford relief on contract
for 10000 tons, such contract
specifically setting forth penalt
Of 81 per ton in the event default
made thereon.
]. 1.-THE records Of the state mi
show that the mill was generally j
arrears in the filling Of its fee
contracts and if the Joseph CON
pany did not avail itself of its legs
rights it was entirely due to il
fair dealings and not due to tn
absurd alibi contained in Mr.. Lund
l