The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-08-24
LUND'S REPORT ON
STATE ENTERPRISE
GIVESNEW FIGURES
Shows 0ut.of-State Consumers
Get rs to IS Cent Edge
on North Dakotans
PRODUCTION STEPPED UP
Two Of Three Units Now Being
Operated At Capacity,
Auditor Declares

Showing a loss of $244 .222.77 If bond
interest and depreciation charges are
included and an operating profit OF
$41, 17e.40 if bond interest and depre-
citation are eliminated, report Of an
audit OF the state mill and elevator
for the year July l, 1882 to July 3,
1888 has been filed with the state
board of auditors by o. B. Lund, au-
ditor and accountant for the state.
Separate statements show the oper-
ations from July /, 1882, to April 10,
1888, the date on which the new mill
and elevator association management
took over the institution, and from
April IA to July 8, the period over
which the new management has oper-
ated the mill.
For the more than nine months
period from July !, 1882 to April -,
the mill and elevator departments,
considered as whole, show an oper-
ating profit Of $37,795.l3, while TOR the
three month period April IA, 1883 10
July 8, the profit is $3,38l.37. Bond
interest and depreciation are elimin-
ated in both instances.
Net Loss Is $244, 222.1
With bond interest and depreciation
charges included, the total loss OF the
plant as a whole for the year Is plac-
ed at $244,222.T. .
The flour manufactured by the mill
totalled 304, sos barrels from July !.
1882, to April Is, and 183,419 barrels
from April IA to July 8. Beginning
April 26, 1888, the mill operated Two
units, or two-thirds capacity, SIX days
a week continuously to July 3.
With a larger percentage OF plant
operation, the mill department shows
a reduction in operating cost for the
period from April to July 8, Lund re-
ported.
Financial results Of the operations
of the mill department. when separ-
ated from the elevator show. from
July l, 1882, to April Is, 1888, an oper-
atine profit Of $l6,68255 before con-
sidering interest and depreciation.
while for the following three months
period there is an operating loss OF
S17,e84.63 before considering Interest
and depreciation.
Selling Cheaper in East
The loss for the latter is due to the
reduction Of, flour prices at the be-
ginning Of the period, Lund comment
ed. Flour, he said, was quoted for
North Dakota at a price netting the
mill from IS to 30 cents for CONVEX
sion over material costs, and sales to
eastern buyers were made at prices
netting the mill from Is to IS cents
less than the North Dakota quoted
sales. The flour prices in North Da-
kota, Lund said, have been raised
gradually until they now yield the
same profit to the mill as before the
price reduction was announced.
The flour sales in the eastern mar
kets have been continued on approx
mately the same price basis as form
erly, which do not net the mill its
operating costs, Lund's report stated.
Before considering bond interest
and depreciation, the elevator depart
ment shows an operating profit OF
$2l, O89.O2 from July l, 1882 to April
10, 1888, and an operating profit Of
$16,823.75 for the next three months
period. Seventy three per cent of the
revenue Of the elevator department
during the last year has been from
the mill department for storage and
handling Of mill wheat, Lund report
ed.
The local elevator shows a net profit
from July I, 1882 to April Is Of $23.56
and from April IA to July g. net
profit of $4,542.24.
Gambled On Market
The reason the local elevator shows
the small profit for the first period
and the large profit for the last per-
iod, Lund explained, Is due to handl-
ing grain during the first period on
a falling market and on rising mar
ket in the later period without hedg-
ing.
FUNDS Of all departments on deposit
with the closed First National Bank
OF Grand Forks in the amount Of
$102, 1880, are carried In the audit at
full value, pending final settlement
in the reorganization Of the bank,
the report says. The mill and eleva-
tor officers contend, Lund commented,
these deposits are preferred claims
and q decision Of the courts may be
required before the amount Of recov-
cry will be determined.
Flour sales for 1882 totaled 418.648
barrels, with 257.397 sold In eastern
markets, 6,607 in North Dakota, ST.
229 In Minnesota, and 1926 In South
Dakota, Iowa and Wisconsin.
From January /, to July 8, 1888,
sales totaled 378, 406 barrels, with $780,
665 barrels sold in eastern markets,
7O151 in North Dakota, 26, 848 In Min
nesota, and 742 In South Dakota,
Iowa, and Wisconsin.