The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1927-08-24
Fact Finding Commit
tee Ascribes Miu,Loss-
es to Three General
Causes


showing was further augmented by.
the following facts:
Il. The cost Of wheat milled. as
compared to average prices of wheat
purchased in other large markets, Is
too high to permit the mill to reason
ably compete with other large mills
on cost milled basis.
Had these higher prices been paid
to the farmers of North Dakota.
there would be little cause for COM
plant. But, it was shown to our
satisfaction that the individual ship
per and the country elevator received
less for similar grades Of grain than
did the large commission houses.
Our committee has at no time TAX
en- the stand that the mill shou d re-
frain from doing business with the
Minneapolis commission houses, but
it does object to ans one Of these
commission firms and grain compan-
les receiving more than the market
value of the grain sold. 1t was also
a recommendation of our comm ttee
that as FAR as possible the mill
should purchase its grain direct from
North Dakota elevators and from in
dividual shippers and farmers assoc
Citations.
Eve commend the efforts and ex-
pressed policy of the management to
establish at Grand Forks, pursuant
to constitutional and statutory prOvi-
sions. a grain marketing terminal and
center for producers and shippers Of
North Dakota grain.
Change in Personnel Made
This point has been met by the
mill management by a change in the
personnel OF the wheat buying de-
partment, and the adoption Of diff
ferent policy on the part of that de-
partment. In the future, we are
told. it will be the policy Of said de-
partment to purchase, as far as it is
possible, all their grain from the
North Dakota elevators direct, and
from grain companies that are repre-
sented on the local terminal exchange.
1t is our recommendation, however,
that the mill purchase wheat on the
basis of its actual milling value
without any discrimination as to who
the seller may be.
~ The policy Of selling flour In
large quantities for less than the
cost Of the bare materials and trans
| portation to sale destination, without
any manufacturing cost added. is in
| defensible.
During 1926, large losses were
sustained by large volume sales Of
flour in eastern markets. This Il
not disputed by the manage ment but
is defended on the ground that the
increased volume resulting from
these sales resulted in large over
head cost per barrel on all the grain
milled.
"Our committee appreciates the
value of a large volume Of production
in keeping costs down, but it has
been pointed out that the advantage
gained by this increased volume dur
! ing 1926 was in no way sufficient to
| offset the losses sustained in making
these sales.
| Condition Better Now
1.-THE record of the mill thus far In
| 1927 indicates that healthier con-
dition exists in reference to eastern
sales. The volume has been material
ly reduced and the sales, we IRE In
! formed, have been made on q much
| better basis. As result profit IS
shown on these sales and furthefr
| more, flour milled for eastern con-
sumption has enabled the mill To
keep one unit Of the mill in opera
! ton during the first seven months Of
the year.
the buying and sales departments.
| 1--WE find that the apparent policysis
for the wheat purchasing department.
! to buy wheat without consulting the
mill management and il losses accrue
because too much grain Is purchaser
at too high price The loss must be
absorbed by the mill department by
the sale of flour at less than the cost
Of the materials.
1T is evident to. the most casual
/ observer that an organization Of this
kind would show the best results
with a centralized management.
"There necessarily must be depart
ments with their own work to per-
form, but these departments should
not work at cross purposes, and 1t Is
the function of the manager to bring
| these departments together so that
the best coordination possible will
! prevail.
at is our opinion that this lack Of
coordination was responsible for
| some of the mistakes made in 1926.
"The recommendation OF our COM
mittee that some one man be given
sole charge of the active manage
ment of the mill and elevator has
been carried out by the governor
Mr.. Spencer, we are informed, Is now
the active head Of the entire plant,
and the heads Of the other depart
ments are answerable to him.
"Thes success or failure. of this
plan will rest entirely upon Mr.. Spen-
Ger and, in our opinion, will result
nj Esall
to show improvement can only result
in the event that Mr.. Spencer fails
| to measure up to the demands of his
new responsibilities.
"This. in brief. constitutes the
also gives an outline relative to the
manner in which our recommended
| tions have been received.
Appreciate Difficulties
"Our contact with the mill and
probation Of the difficulties with
tend, and it has not been the pur-
hnt to offer such constructive criti-
cism as would enable the mill and
+, elevator to better function to the
advantage of the North Dakota farm
| err.
1--WE have been and will be assisted
! in our work bv C.. u. Somers Of the
Equity Cooperative Exchange. He has
provided the committee with tech
nical knowledge of the grain trade
and his services have been extremely
| valuable.
"In our contact with the affairs
Of the mill and elevator. we have
been impressed by the results OBJ
tanned by Mr.. Bronson, who has been
assisted by Mr. Durant Of the Com,
merciaf club in obtaining more fav,
orable freight rates and tariffs for
the mill. Progress in this work is
necessarily slow, but much has: been
accomplished by the hard work OF
/ these men. One cannot come in con-