The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1927-10-29
NJ ade No Examination of
Books of Midland Grain
Company, Since That Con-
Germ Refused to Show Him
It's Bo0ks-Joseph Company
Also Allows Only Partial
Audit

Report on his examination of the
I. $. Joseph company, Minneapolis,
with regard to its transactions with
the state mill and elevator, was
filed with the .tate board Of audit
ors Friday by 0. B. Lund.
Lund made no examination Of the
books of the Midland Grain COM
pany, he said, because that concern
refused to open its books to him.
The Joseph company also refused to
permit him to examine into certain
details of its business, Lund said,
and he was forced to obtain data
elsewhere with which to make COM
parison of it's dealings with the
state-owned enterprise.
Lund was sent to Minneapolis to
make the examinations by the audit
ing board after the Joseph company
had asked the governor and the
state bank examiner to have an ex-
animation made in order to prove
that there was nothing irregular in
its dealings with the mill. In a
letter to the state examiner, the
Joseph company attacked the Lund
audit report Of the state mill and
elevator in which reference was
made to that institutions dealings
with the Minneapolis firm. The
auditing board dispatched Lund to
make the audit requested immedi-
ately thereafter.
Penalty Was Difference
Commenting on the contracts by
the state mill to deliver feed to the
Joseph company, Lund said the
Minneapolis firms books agreed
with those at the state mill as to
prices. The contracts called for the
delivery at Minneapolis Of 1890
tons of mill feed and contracts for
1922 tons were later Cancelled be-
cause the mill could not make de-
livery. the mill paying a penalty OF
81 ton for the cancellation privi-
lege. The penalty per ton was the
difference between the contract price
of $21 per ton and $2e per ton, the
market price at The time of cancel
lation.
Lund said he was given full ac-
cess to the books Of the Joseph COM
pany with regard to tbs feed pur-
chases during July and September,
1926, and found that the company
had purchased feed from Minneap-
oils mills at approximately the
same price paid the state mill. In
his comparison of prices, Lund said,
he considered pure spring wheat
brand as called for in some con-
tracts worth so cents a ton more
than the standard pric and the
state mill middlings as equal to
Minneapolis middlings.
Prices Slightly Lower
Feed purchases by til, Joseph
company from Minneapolis mills in
July, 1926, appear to average q lit
tie below the price paid to the state
mill, Lund said, but these were
largely for immediate or early ship
ment. Their September, 1926. pur-
chases average q little higher than
the price paid to the state mill.
General purchases by the Joseph
company appeared to average
slightly below the Minneapolis mar
ket quotations but this may be due
to the fact that they purchased in
large quantities, Lund said.
A comparison of purchases from
the state mill, the market price Of
mill feed at Grand Forks and the
market price at Minneapolis as dis
closed by tho Daily Market Record
is contained in the report.
It shows that on July 6, 1926, the
contract price was $21 q ton, the
Grand Forks price was $24 and the
range from $20.6O to
sci for bran. Prices for standard
were the same except the
Minneapolis range WEI from $2l to
e21 so.
On September 20, 1926, with the
contract price still $21, the Grand
Forks price was $23 while the Min
range was 922 to $22.50 for
bran and $3.50 to $23 for mid
dlings.
Cenied Access to Re ,ords
Efforts to examine fee. pur-
:hases by the Joseph company for
February and May, 1927, when the
cancellation penalty was paid py
he state mill, failed when the Jo-
seph company denied him access to !
ts feed purchase records for these |
periods, Lund said. The Joseph |
.ompany theory Lund said, was |
hat It would IS unfair to use the |
Iame method for determining the !
cancellation price Is the purchase
price. Certain invoices were picked
~ Joseph and his assistants from
heir files and Lund was told that
hey were all he would be permitted
% see, Lund said.
Contending that + could not con-