The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1930-02-03

such wheat Il Of proper quality and
the prices axe In line with the mar.

~O
ket.
Isaivianal Purchases Few
Practically Ill Of the wheat pur-
during the year was bought
from elevator companies and COM
mission firms. only 7S.2oe bushels /
coming directly from individuals. OF
the total purchases made, ~ per cent
were taken directly from farmers
and cooperative associations.
including the North Dakota Wheat
Growers association ana the Farmers
Union Terminal association. and So
per cent from commission firms. in
Guiding many who sell in behalf Of
farmers elevators financed by them.
The mast disappointing feature Of
the seasons business was the falling
off in the flour sales in North Dako-
ia. In lo34 tlseae sales were 1872. 871
barrels o. ag1fnst l4O.404 barrels In
1929. a reduction Of 52,387 barrels. The
difference In actual flour deliveries.
however, WaS mot so great in these
two years. In 1928. deliveries were
only l72S16 barrels. while in 1929
they we're 15S $40 barrels. making the
difference in actual deliveries only
1856 barrels. This rather indicates
that in 1919 our flour dealers in the
state were somewhat oversold. while
in 1929 they were undersold. The
principal cause for the difference,
however. seems TO be Hccounted for
by the fact that In 1929 both cofasun-
ers and dealers bought on . smaller
margin than usual. during the fall
months. due In part to the Shogt crop.
and in part to the violently fluctuat-
ing wheat market which constantly
upset business calculations.
Good Profit Possible
Another Abnormal factor in 1929
business, was the marked fluctuatious
in protein premium values. From
January to June these values ~increas-
ed considerably. giving the wheat
stock on hand IN increased inventory
value Of about $4,000 above cost.
During July and August. however,
when the new crop came on the mar
ket with its high protein content. pro-
TEN premium values almost entirely
disappeared. Since premium values
cannot be hedged on the futures
market. this resulted in q temporary
inventory loss Of about SIS. Later
in the season. premium values came
up again but not enough to restore
the original value in the stock on
hand. Should the next wheat crop
be low in protein content. and pre-
/ miun1s consequently. high, we are due
! to make q good profit on the wheat
| carried over into 1891. most of which
has been purchased On . low premium
basis.
The management has made 4 spe-
| cial effort to reduce operating costs
by eliminating unnecessary expenses
wherever possible ana BY conducting
the business on q basis Of strict econ-
ony. All unnecessary audits and spe-
cial services not required. have been
dispensed with.
CommendR Employees
There has also been q noticeable
Improvement in the spirit OF coordin-
alton and cooperation between the
several department heads, which ha.
had good results. I felt that I'll
members of the mill and elevator
staff have made a very earnest effort
to render good service and I wish tx
publicly commend them for their in.
dustry, ambition and loyalty and II
acknowledge my sincere personal ap'
probation for their unfailtng cooper
alton.
During the past year, we have con
centrated our efforts on reduciu,
operating Losses and improving tn
financial condition Of the institution
Our principal goal is to make tn
business self supporting and relieve
! SO far as possible. the taxpayers o
the state from large annual tax levie'
for bond principal and interes
charges. To accomplish this, tn
business must be operated in strie'
accordance with established principle:
in the milling and elevator indus
tries.
Needs Management
ut must buy its raw material
wheat, as cheapiy a possible and sci
its products. flour and feed, for q;
high prices as are ottainahle. It can
not buy. wheat ut prices above tn
market. nor sell flour at low figure.
without inviting certain financia
disaster. Competition IN the private
milling industry In the United State
is stern. keen and efficient. Tn
State Mill cannot prosper In the fac
Of such competition. except in pro
portion to the ability Of its manage.
ment to attain the same standard
Of efficiency In production. statesmen
ship and business administration q
that maintained by its Successful
competitors.
"As to the coming year, I make n
predictions other than to shy that tn
present business policy viii be con
tinued."
To his statement the governor 1t
tached portions of the ANIMAL audi
report Of <. G. Nelson, mill audtt0g
These included Nelson's analysis o
the years business. financial state
ment at the close Of the year, tn
operating statement for l02e. uhea
I inventories and q list Of wheat pur