The Bismarck tribune., 1934-09-24
STATE MILL LOSES
HEAVILY ON DEALS
During JUNE, JULY
institution Went Into Red "a
Cents Per Barrel on Two
Months Shipments
MIsMANAcEMENT IS SHOWN
Audit Boards Report Shows At
torney Paid $7,566 IN
Seven Months

Seven Months
(By The Associated Press)
Loss Of $4,000 was incurred by the
state mill and elevator in sales OF
flour in the east during June and
July. the report Of Lester Diehl, ac-
countant for the state board Of audi
tors, revealed Monday.
The report. filed with the board
Monday. discloses the mill and eleva-
tor showed an operating loss of 4l6,-
$3.50 before considering deprecia-
ton and bond interest Indebtedness
for the first seven months Of 1894,
while the loss totals $l65, 5,19768 II
depreciation and bond interest are In.
cluded.
Average loss per barrel Of flour dur
ing June and July was "a cents, the
report shows.
Loss Under Peterson
The loss was incurred under the
management Of Ludwig Peterson who
was replaced as manager Of the state
mill and elevator by Q. B. Lund, for
merly accountant for the state, July
81.
Payment Of $7,5e6.s5 to H. A. Bron-
son, during the seven months. as at
torney for the mill and elevator also
was drawn to the attention Of the
board by the report. Diehl points
out the payments represent among
other things. q payment Of 44.372.69
ION q claim for services claimed per-
formed from December l. 1929. to
August 10, 1881"
Payment Of $280.43 In expenses to
DR.. Irvine Levine to investigate pub
lie utility regulation was the subject
of legal question In the report.
Criticism of methods Of charging
employees expenses was leveled by the
accountant, who said 1T has not been
the practice Of the mill for many years
to require receipts for travelling ex-
pense items"
Future loss on differenttals on .
number Of sales by one mill represent
alive ARE considerably out Of line
with regular differentials and the mill
will have to stand several thousand
dollars Of loss when delivery Is made
on the flour sold on this basis"
Study Previous Audit
The audit also includes q compare
tive schedule showing the previous
audit by the department.
During the audit period, the mill
operated at about so per cent capacity,
and manufactured 342, 2,476 barrels Of
flour. From July ., 1883, to Decem-
ber 81, 1888, the mill operated at
about 81 per cent Of capacity. From
January l, 1894. until the latter part
of 1894. only one unit Of the mill was
in operation ct . time, accounting
for reduced percentage Of capacity
operation during the period. From
the latter part Of April to July 81.
1894, two units Of the mill were In
operation, virtually constantly.
In his report, Diehl says:
Eastern flour sales during June
and July, 1884, were made at m aver
Gge loss Of ~ cents per barrel, and
result In loss to the mill Of over
$4,000, without considering interest
on bonds or depreciation Of plant and
equipment. An example Of some Of
the sales made during this period
shows how costs to deliver the flour
70 the buyer were figured.
Only One Sale Profitable
"The eastern sales policy during this
two months period was evidently ra-
ideally changed from the policy that
had been In force for the past several
years. We find but one eastern sale
made during these two months thai
did not show q big loss, that being Z
sale OF $50 barrels Of Pride flour on
July 26 to e. b. Gallagher. Detroit
Mich, at profit Of 26 cents per bar
rel. The next best sale made during
this period resulted in . loss Of 81
cents per barrel to the mill and the
poorest sales showed losses Of over o(
cents per barrel.
During the seven months covered
by this audito. H. A. Bronson, attorney
for the state mill and elevator, wal
paid $7,566.85 from mill and elevatol
funds. OF this amount, A,3726o rep.
resents payment on claim Tor serv.
Ices claimed performed from Decem.
ber l. 1929, to August 10. 1881.
I'm regard to this claim. records at
the mill show that papers were served
on mill officials on December q. 1882
in an action by H. A. Bronson versus
state OF North Dakota, doing business
as North Dakota Mill and Elevator
association, for the purpose Of forcing
the mill to pay H. A. Bronson @4,372.6s
for services from December !. 1870
to August 10. 1881.
"On October s, 1881, mill voucher
No. 33303 was drawn up in favor o.
H. A. Bronson in the amount Of @l.-
O68.58, approved by o. Z. Spencer
manager Of the state mill. with thil
notation, payment In full Of all de-
mands to date
New Check Issued
Check was issued. but later can
celled and the voucher carries the fol.
lowing notation. the check for thil
voucher was cancelled l1-30-3l and
new check issued under voucher
S33950.' Check for this voucher VA
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