The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1927-08-24

the, management correct Such l0ultS
as might exist within the organize
ton. The reports to the governor
were based on the record of the last
year and it is not difficult to find
fault with the way things have been
handled after the work has been
done. 49,, Sesa -,
we have not felt that it was the
duty Of the committee to find fault
with past methods, but that we should
determine. from the records Of: the
past, policies which should operate
10 better conditions in the future.
agement should be given fair OPP
po..unity to test out the changes
thu. have been made"
PRICES PAID FOB WHEAT
TOO HIGH. REPORT SAYS
Fargo, n. D.,i Aug. 2I.-LP)-
Charges involving the grain pur-
chases, flour sales and mill feed
sales, as carried on ut the North Da-
kota state mill and elevator, are con-
tanned in the special report Of the
select committee OF the North Da-
iota state senate, which came into
the possession of the Fargo Forum
today. 4;
This is. the report that was filed
with Governor A. &. Sorlie abolt
four weeks ago.
! rrices Called Excessive
Excessive prices for wheat, COM
pared with the current Minneapolis
quotations, are held up by the COM
mittee rs constituting one OF several
reasons why the state has suffered
nsavy losses in the institution, and
these excessive prices were paid, not
to farmers, but to Minneapolis grain
commission concerns;
OF all wheat purchased in 1926, the
| records show that SO per cent of it
was purchased from grain commits
sion companies, and that only four
per cent was purchased from farm
ers, this point being shown by the
committee to offset any plea that
ing her prices were paid for wheat
with view to building u grain mars
ket at Grand Forks.
/ For the second half of 1926, the
senate committee shows that grain
purchased from grain commission
companies was bought ut price av-
eraging 1915 cents higher than the
/ Minneapolis price for No. dark
northern, this notwithstanding the
fact that much Of the grain was Of
inferior grade and that it command
81 lesser price.
Midland Company Favored
In carrying out this inquiry into
nrices paid. for wheat, the commit.
tee shows that the Midland Grain
company received the highest margin
paid to any concern, the prem ium
ranging in q selected group OF months
up to six per cent over the Minnea-
polls prices, while. in three Of these
months individuals who sold grain to
the mill received price Of from l.2
to 3 per cent less than the Minnea-
polls price.
I'VE find contracts for the pur
chase OF large Quantities OF wheat
from the Midland Grain company
were entered into by the mill at
prices relatively fOusss cents per
bushel higher, according to the CON
!; tracts, tean the price paid to any
other elevator or commission conf
pAny fer the same grade and pro-
tein coiitent on the same date, and
that these prices were nearly always
/ far in excess Of the highest price
card Of the same grade sold on the
| Minneapolis market on the same day,
anf Mt xhda6 be borne In mind that
ovxr half million bushels, or ap-
/ proximately ~ per cent Of the en-
1 tire. AMOUNT milled, was purchased
from the Midland Grain company, in
some instances costing the mill l-2
cents per ,bushel above the highest
priced car Of any kind Of wheat sold
on the Minneapolis market on the
same date" says the committee in
tracing the record Of wheat dealings.
Other Connections Traced
| Showing that the Midland Grain
company was favored "in that high
est premiums were paid to Them"
the committee traces also connections
between that concern and two others
that are brought into relief. One Of
these is the Seaboard Flour corpora
ton, the head Of which is Otto
brlske, identified by the committee
as formerly Minneapolis man and
u former associate Of !. s. Joseph.
president of the Preferred Midland
Grain company" while in analysing
mill feed sales which the commit
tee charges were made at Figure
below the prevailing Minneapolis
price. it says that approximately
half of all the feed manufactured
sold to the ]. S. Joseph company Of
Minneapolis"-the Joseph in question
being the Midland Grain company
president.
Tracing flour sales, the committee
charges that heavy losses were in
Cured in dealings with the eastern
| corporations, while home buyers were
forced to pay . price that Melted a
Drofik to the mill
Theory Exploded
! The theory that North Dakota
would get advertising out Of the
manufacture of its own wheat, to be.
marketed under q North Dakota label.
is exploded by the, COMMITTEES, which
says vast quantities Of wheat sold to
outside concerns we're sacked in con-
tainers bearing the brand of the
private concern which contracted for
| Sales to the Seaboard Flour corr
poration are listed to show losses Az
eraging 81 barrel, while North Da-
kOta buyers were made, to pay u
price that netted . SO cents barrel
profit.
In some instances sales of flour
were made at prices below the ac-
tual cost Of wheat used. +ln June,
1926, O. single contract Of 1000 bar
rels was entered into at q price of
$40 delivered, while the cost Of the
material alone was S7.77." says the
committee. ,@This material cost does
not include manufacturing cost,
overhead, interest or depreciation.
The loss. therefore, on nstetials
alone is 81 cents . barsel. An ex-
nlanation Of this sale BY Mr.: Spen-