The Bismarck tribune., 1934-09-13
TAXPAYER HIT BY
FORMER POLICY OF
MILL AND ELEVATOR
HUSKY Says Eastern Buyers
Fattensd at Expense Of
North Dakota Farmers

Belief that the taxpayers and The
present state industrial commission
have been "jobbed'' by the recent
management OF the state mill and
elevator was expressed Thursday by
John HUSKY, industrial commission
member, after surveying contracts
entered into by the mill management
during June and early July.
Many Of these. HUSKY said, call fol
the delivery of flour to eastern buy
ers at prices below the cost Of the
materials entering into 1t. Milling
freight and other charges add to this
loss and HUSKY forsees the possibility
Of the mill losing as much as 100000
In filling these contracts alone.
During June and July, HUSKY said
contracts were entered into for the
sale of 10000 barrels Of flour at
prices which average 50 cents . bar
rel less than milling cost.
Analyztng 10 Of these sales, ad'
mittedly among the worst, HUSKY
found that on l9,050 barrels Of flour
the state took total loss of $l4,80o IN
cash. That Is, the cost Of placing the
flour in the buyers hands was that
amount In excess Of the money re-
ceived for 1T. This figure, he said
makes no allowance for such other
charges as interest on the mill bonds
and depreciation Of the mill buildings
and machinery.
How It Figures Out
The first sale listed is one Of SOC
barrels to Sprague, Warner and COM
pany, Chicago. made July 10 at q
price of $5.85 per barrel. The wheat
going into the flour cost $4.72 per
barrel. Freight, transit charges and
sales commissions cost IS cents. The
federal milling tax is $l.38, making
the total cash investment $6.55 per
barrel. From this was deducted sc
cents, the value Of the feed remaining
after the milling process. The net re-
suit is to place the cost Of these items
at $3.50, or four cents more than the
selling price.
When milling costs Of 66 cents
barrel are added the loss on the deal
Is fixed at 10 cents per barrel or
total Of $3.50. Figured on this basis,
the mill took the following losses on
the other nine sales: Thornton and
company, Chicago, 400 barrels, $296;
H. r. Walker and Sons, Passiac, N
J., 500 barrels, $3.50: Gross Brothers,
New York, 1000 barrels, $40: Chas'
Roach and company, Pittsburgh. y
500 barrels, $500: Chas. Roach and
company, Pttsburg, 5000 barrels. S.
050; Kruger Grocery and Baking
company, Cincinnati, 2,500 barrels,
81 800; r. r. Prina, New York, 1000
barrels, $3.50; M. A. Rober, Brooklyn,
N. Y, 400 barrels, sass; Central
wholesale Grocery. Chicago. ESQ bar
rels, SITS.
Undersold Private Millers
A significant thing, HUSKY said, Is
that the prices Ut which the state mill
flour was sold were uniformly lower
than those obtained by private mill
ers, despite the fact that North Da-
kota gluten flour Is admitted to be .
superior product.
The "jobbing" comes about, he as
serted, by reason Of the fact that these
contracts prevent the present mill
management from making q satisfac-
tory showing because 1t has to fill
these disadvantageous contracts. Hus-
by expects political opponents to make
capital Of the inevitable losses With
out mentioning the fact that 1t was
the sales policy Of the opponents
themselves which caused them.
HUSKY. also 4 member Of the state
board Of equalization, tax-fixing body,
said $l60 900 was levied to pay for mill
losses last year and q levy as large
or larger Is in prospect for this year,
despite the fact that the mill had .
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