The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-05-20
Shows North Dakotans Paw
More for State Flour Than
Is Charged Elsewhere \
53.CENT EDGE is NOTED
Loss Is Shown on Current Ope-
rations; Further Deficit
Held in Prospect
by The Associated Press)

a loss Of $6,653.13 from March II to
April 10 after charging off bond in
terest and depreciation on the plant
while an operating profit of SIG, $3.50 81
Is reflected without considering de.
probation or bond interest, according
to an audit by o. B. Lund, auditor ana
accountant, filed with the state boare
of auditors.
The audit is special examination,
made at the request of the state in
duStrial commission to cover the
months business following the taking
over Of the mills affairs by the COM
mission. Previously the mill and ele-
vator commission, abolished by the re-
cent legislature, administered affairs
of the institution.
Before considering depreciation OF
the plant and interest on bonded in
debtedness, the mill department shows
a profit Of $13,836.20, the elevator de-
partment $565.0l, and the local eleva-
tor $2,588.70, the audit shows.
1.-THE excessive profit of the local
elevator" Lund comments in his re-
port, lis due to the raise in the price
OF grain on hand that was not
hedged."
Few Sales in State
Flour sales during the period Of the
audit totaled 1876 barrels, of which
120,678 barrels or sos per cent, were
made in the eastern sales territory;
1901 barrels or 1872 per cent in North
Dakota; 1892 barrels, or 6.3 per cent
in Minnesota, and IS barrels in South
Dakota.
Flour sales are not taken into GU:
statement Of affairs until shipped
with the exception of the wheat mar.
ket differential reflected in the hedg.
ing" the report says.
"The flour prices were generally re-
duced at the beginning Of this period
with the result that the sales for east
ern delivery are sold at a price below
manufacturing costs which will not
appear in the financial statements as
compiled until the products are actu-
ally shipped and taken into the finan-
cial accounts of the MILL"
The present reduced sale price OF
flour in North Dakota nets the mill
an average of IS to IS cents barre!
over material and transportation cost
the report says, while the eastern sales
are made at net price or from Is to
66 cents below the North Dakota
quoted price, when taking into ac-
count the added transportation costs
and sales discounts in the form OF
commissions paid.
Eastern Buyer Favored
In making a comparison. using the
same costs and feed prices in the east
ern and North Dakota sales, Lund
commented, they reflect an advan-
tage to the eastern buyer Of So cents
per barrel below the price charged the
average North Dakota buyer"
The "A" mill unit ran Is days from
March II to April 10.
During this period the mill shipped
1926 barrels of flour and manufac-
tured only $4,000 barrels" the report
states. I'm other words they shipped
1924 barrels from stocks manufac-
tured and on hand from the previous
period; at the present pricings Of in
ventories this throws the statements
off,"
In regular audit If the mill and
elevator covering operations from
January to April 10. an operating
profit Of $6,314.81 is shown before con-
sidering interest on outstanding bond
ed Indebtedness and depreciation Of
the plant, while loss of $70,412.74 Is
shown after charging off these items.
The report calls attention that the
First National Bank Of Grand Forks
has not reopened for unrestricted
business after the bank holiday de-
clared last March 4.
1.-THE state mill and elevator has on
deposit with this bank" the report
states. "$l03, PSI 40. on which they may
sustain a partial loss in the final set
tlement Of the banks affairs" No loss
is set up in the statement on this de-
post.
THE probable losses on untitled
flour sales had all been charged off
in our previous statements" Lund
comments, "and with the raise In
market prices there are no further
losses anticipated.
Wheat on hand was priced at the
current market close. Inventories OF
packing materials and supplies were
priced at the lowest market price OF
recent purchases by the mill"