Document 37739kkOOEdKZNEonDvwRkmME

N10105 T 00. PELOUBETaCo. New Yo b C0FT To the Board, of Directors, International Smelting and Refining Company, 25 Broadway, New York Dear Sirs: We have made a general audit of the books and accounts of INTERNATIONAL SMELTING AND REFINING COMPANY for the year ended December 31st 1940, and present herewith a Comparative Balance Sheet, Comparative Income Account and Surplus Account, followed by various supporting schedules. INVESTMENT IN AND OPERATIONS OF SUBSIDIARIES The aoaounta of wholly owned subsidiaries have not been consolidated with those of International Smelting and Refining Company in this report. Three of the subsidiaries, New Jersey Storage and Warehouse Company, Raritan Copper Works, and Raritan Terminal and Transportation Company, are not operating, and the operations of the fourth subsidiary, International Building Association, are not an integral part of the operations of the parent company. The investment, Including net advances, of Internetional Smelting and Refining Company in its wholly owned subsidiaries amounted to $143,436.81 at December 31st 1940 and oombined net loss of such companies amounted to $2,906.78 for the year 1940 (details page 19). Investment, including noncurrent advances, in subsidiaries not wholly owned by the company amounted, at December 31st 1940 to 978,239.91, a net decrease of $88,505.03 from December 31st 1939. This decrease resulted from writing off investment in and advances to Felleyre Mining and Milling Company soounting to $379,745.54 offset by net advances during 1940, principally to Walker Mining Company, amounting to $291,240.51. Tha equity of the company in the oombined net income of these subsidiaries amounted to $436,494.29 for the y*ar 1940 (details page 17). A dividend of $365,733.50 was received from Mountain City Copper Company. 3 PNYC00000651 ye nPBffATlOM For the year 1940 International Smelting and Refining Company operated at a net profit of 31,104,939.02, compared with a profit of $896,571.94 for the vear 1939. Income or loss of the various plants and departments of the company compared with the respective investments, may he summarized ae follows: Investment at December 31st 1940 Tooele plant $ 5,896,462.05 Miami plant 1,471,374.64 Ochir Hill plant 14,400.60/ Lead refinery 826,776.68 Zinc oxide department 939,069.22 'hits lead department 646,582.82 Haritan refinery 6,374,509.00 Raritan secondary motals department 2,775,780.27 Raritan electro-sheet department 287.321.17 Income or loss* of the year 1940 175,950.65 76,659.47 48,043.75 152,247.81 71,992.00* 15,218.40 1,792,626.42 62,223.03 10.948.84 Income or loss* of the year 1939 170,980.77 19,309.14" 82 ,707.52 114,532.04' 49,590.31 23,859.19 1,151,357.76 321,386.66 19.729.06 19,203,475.25 Investments and advances {investmeat in and advances to Pelleyra Mining and Killing Company, amounting to $379,745.54, written off in 1940) - details page 37 5.845.756.41 Items not allocated to depart ments (including estimated Federal income tax of 3130,000.00 in 1939 and v271.477.25 in 1940 details page 38 Net profit before interest on debentures and notes payable to affillatee Interest on debentures Interest on notes payabla to affiliates 25,049,231.66 23.862.87 Net profit 3 2,261,926.37 1,685,770.11 146.308.10* 155.074.43 2,115,618.27 1,840,844.54 352.361.18* 193.439.26' 1,763,257.09 1,647,405.28 460,000.00* 480,000.00' 178.618.07* 270.833.34' 1,104,639.02 896,571.94 Capital stook, surplus, and debentures and notes payable to affiliates I 25,073,094.53 / Bxoess of liabilities over assets. Details of the above figures are shown on the Balance Sheet end Income Account, pages 11 and 12. Pn y c o o o o o 6;2 /fOPETKG CAPITAL Changes in current position were as follows: December 31st 1939 December 31st 1940 Current Current assets liabilities % 11,929,242.74 1.442.019.08 $ 10,487,823.68 11,045,932.53 1.450.808.91 -9,595,123.72 3 Increase or decrease* 083,310.11* 8.789.83 892,099.94* Ratio 8.3 to 1 7.6 to 1 In the foregoing comparison, advances by affilietes evidenced by notes, $5,000,000 payable to Anaconda Sales Company and 32,2 50,0C0 payable to Anaconda Copper lining Company at December 31st 1939, and 34,750,OOC payable to Anaconda Copper Mining Company at December 31st 1940, are not considered current liabilities. DjSTRIBPTION OF BALANCS 3H3ET AND INCOME ACCOUNT TO DEPARTMENTS The detail schedules which support the Balance Sheet and Income Account are presented in eleven division^ the nine principal operating departments: 1. Tooele plant, 2. Miami plant, 3. Ophir Hill plant, 4. Lead refinery, 5. Zinc oxide department, 6. White lead department, 7. Raritan refiaeryi 8. Raritan secondary metals department, 9. Raritan electro-sheet department, and a tenth division, 10. Investments and advances, which Includes the activities of the company other than the principal smelting, refining and manufacturing operations, and an eleventh division, 11. Items not allocated to departments. In making this rearrangement, the acoounts of the company as ahowa on its various ledgers have been redistributed and allocated to the departments to which they apply, exoept for a few items for which there is no exact basis for allocation and which are shown separately in the last division mentioned abOTe. Oetails of aocounts which appear in this division are shown on page 38. land at 2ast Chicago, and land, buildings and machinery, and reserve $ PNYC00000653 n?n*.rr-l AND JI3BUR3SD 4 funds received *jnd disbursed v-ere as follows: Funds made available: Operating profit, before deducting non-cash items end interest paid on aebentures and notes payable to affiliates (details below) f 3,319,907.39 Decrease in inventories (details below) 561,261.32 Increase ln current liabilities (principally taxes) 115,450.36 Decrease la deferred charges 5.607.29 4,002,426.36 Funds disbursed: Decrease in notes payable to affiliates Interest paid on debentures and notes payable to affiliates Increase in amount receivable from Anaconda Sales Company Fixed assets purchased (details below) Increase in accounts receivable Met increase in investments in and advances to subsidiaries end sundry companies (details below) 2,500,CCC.CO 656,616.07 358,709.94 257,243.26 218.640.17 180.798.18 4.174.009.64 Decrease in cash 5 171,583.20 Operating profit, before, deducting non-cash items and interest paid on debentures and notes payable to affiliates Profit, car Income Aocount - page 10 Add: Depreciation - on deliveries $ - automotive equipment written off Loss on disposal or dismantlement of fixed assets, principally Rico and .Vsron plants Royalties received from sales of ore mined by North Lily Mining Company from properties of International Smelting and Refining Company Investment in and advances to Pelleyre Mining and Milling Company written off Sundry mining claims and options written off - Ophir Hill and Tooele Interest paid on debentures and notes payable to affiliates, shown separately above As above $ 1,104,639.02 793,324.88 1,715.45 211,679.99 126,328.05 379,745.54 38,856.39 658.618.07 2.215 .-268.37 * 3,319,907.39 Decrease (increase*) ln inventories betels and manufactured products - finished (details below) | 1,243,166.46 - in process (increase) 606,549.67* Supplies (Increase) 75.355.47* As above 561,261.32 Of the above deorease in finished metals, a decrease of $**1,203.96 in oopper at Tooele and Miami plants la offset by an increase PA,*C00000654 in material in process at those shelters amounting to 51,034,008.74. ty,ia and manufactured products - finished 5 Decrease or Increase* Copper (details below) Zinc (details be Low) lead (details below) Silver {details below) Gold miscellaneous r.etala Zinc oxide Y/hit: lead ilectro-sheet co;"er fabricating Prepaid billet cost Freight or. consigned stocks 13,065,002 lb. 5,826,829 lb. 4,620,443* lb. 19,254.97* 02. 1,206.829 oz. ,099.02 ,857.31 ,656.95* ,422.99 ,966.63 ,285.23 ,821.92 379.45* ,659.99 ,697.06* .401,58 Reserves for freight and refining 1 ,63?.. 731.21 402 , 030.60 Decrease shown by Comparative Balance Sheet - page 9 Increase in depreciation included in inventories (details below) .'.5 above 1,235,950.41 7.216.05 i 1,243,166.46 Increase in denreciation included in inventories Pounds Depreciation applicable to unsold 1940 production of Tooele lead 5,722,949 Depreciation applicable to 1939 in ventory sold in 1940 - zlno oxide 18C,C69 - white lead 51,133 Cents oer lb. .131 i .095 .215 yflaBai Tooele plant: Deliveries from December 31st 1933 inventory Deliveries from 1939 accumulations Uiami plant: Deliveries from December 31st 1938 inventory Deliveries from 1939 accumulations i 3,641,213 1.456,504 5,099,717 9.872 12.619 10.658 3 1,600,604 1.396.188 2,998,792 10.070 11.194 10.594 Amount 7.497.06 171.07 109.94 281.01 7,216.05 359,465.90 104.048.62 543,514.52 161,174.75 156.514.69 317,689.44 Raritan refinery - deliveries from December 31st 1938 inventory Raritan secondary metals department: Deliveries from 1939 accumulations leas accumulations in 1940 409,485 8.296 11,989,505 7.432.497 4,557,008 12.061 11.801 12.485 33,971.00 1,446,001.18 877.077.12 568,924.06 Hat decrease, as above 13,065,003 51aa D*li*eries from December 31st 1939 inventory - zlac oxide department 5,826,829 ) 1,464,089.02 4.603 } 279,857.31 ) PNYC00000655 La ad r;ad refinery: jeiivoriea .'ron 19c9 accumulations r,las accumulations in 1940 Hkiic leod department - deliveries from December -1st lldf. inventory Tooele plant - accumulations in 1140 Nat increase - as above Silver Covered by affidavits - decrease unsold 1952 production Not covered, by affidavits - 1940 accumulations in Increase in Quantity - as above decrease in amount - as above expenditures for fixed assets Lines and mining claims - 1.1 aal Lands - Raritan refinery ouairy mines and lands -iuiliin^- =nd saoninery - .-taritan refinery - Other plants Cents per lb, 6 1,CC,355 12,150 1,102,506 5,722,949 4,oLC,443 Ounces 5.177 .001 1C0.0C0.46 no,235.78 4, 6CC 4.918 552.90 50,797.66 221,454.53 1 230,556.95 Cents per oz. 44,410.03 63,67Q,co 19,214.97 71.C230 1 31,551.29 34.75C0 2,12\. 3C i 9,422.99 * 12,450 .54 27 ,COO.00 476.64 k 45,935.18 217,449.07 Less salvage received from assets sold As above Net increase in investments in and advances to subsidiaries and sundry companies `.Valuer Lining Company relleyra Lining and Milling Company: Payments on option Advances Copper Canyon operations: Zxoendlturcs on option Shares purchased Lureka Bullion Lining Company sundry subeidlarles 1 21,OCC.CC 4.42C.66 2,149.34 . a.dcc.oo jacreases: Mountain City Copper Company -undry mining companies Cor oree and development Tooele /alley .tailway Company Comet Coalition Lines Company rark Premier Mining Company international Building Association sundry indirect subsidiaries V 271,594.90 5,420,36 26,749.34 1,277,14 22.61 96,955,43 29,441.19 15,011.68 5.201.14 2,171,56 3,366.47 12C.C0 PNYC00000656 ar.nPi Of AUDIT 7 'e have made a general audit of the books and records of International Smelting -and Refining Company and ita subsidiary corporations for the calendar year ended December 31st 1940. In connection with our audit we examined or tested the accounting records of the company and its subsidiaries and other supporting evidence -nd made a general review of the accounting methods includ ing the system of internal check ^nd control and of the operating and income accounts for the yeer but we did not make a detailed audit of the transactions except in the ceae of t-'iaai plant, which is not examined by the company's own internal auditors. In the case of all other companies end departments we satisfied, our selves that International omelting and Refining Company and all subsidiary com panies were included in the scope of the work of the internal auditors of the company. Je examined into the sufficiency of the internal audit and examined the reports of the internal auditors. Investments, securities, cash, notes receivable and payable, debentures and capital stock have been verified by inspection, certificete or correspondence and found in order. .iccounts receivable were examined in detail and those considered bad or doubtful have been written off or have been provided for in reserve. Accounts receivable, where these ore of material amount were tested by selecting certain accounts for confirmation by direct communication with the debtors or, wr.ere possible, by direct comparison with the books and records of the debtors. The company's internal auditors hove else verified the accounts receivable of certain departments by direct communication with the debtors and, while such confirmation by internal auditors cenaot be substituted for a similar procedure by the com pany's independent auditors, it has been given full consideration in determining the nature and extent of our verification of accounts receivable. Certificates of responsible officials have been received certifying to the correctness of quantities, descriptions and ownership of inventories and we have made tests of the clerical accuracy of the inventories. In accordance v:lth whet is now generally agreed to be accepted audit ing procedure, our audit included physical tests of inventories. Inventories P*YC0000065 ^ -iaots sre not tsstcd nor is a complete count rae.de of inventories at any one -'lant. Inventories ' re r.ot tested *t the close of the calendar year -.nd the phvs<cal sts Jre in no v.-sy intended as a substitute for the taking of physical inventories &7 c::r.pany employees. The purpose is to establish the existence of a pro^ef system for taking and recording physical inventories and to satisfy' ourselves tii*t the systems are operating effectively and as planned. In the course of this work, a very substantial part (meesured in money value) of the physical inventories is actually inspected by us, tie this inspection is not our orir.ary evidence of the existence ond value of the Inver.torJ.cj hich must no-.;, as in the past, lie in the records of the company, it is of great value as a confirmation of the company's records and representations, Jtocks of metals and products held for the company or its subsidiaries by others or held by the company for the account of others h?ve been verified by direct communica tion. It is the general practice of the company's internal auditors to make physical tests from, tine to tine of inventories of supplies ^nd, ',.hile these tests cannot take the place of similar tests by independent auditors, they are given full consideration in determining the nature and extent of the tests made by us. The accounts ere presented in the sane form and on the same basis as those of Anaconda Copper Vining Company, of which International Smelting and Hafining Company is a wholly owned subsidiary, New York, July d5th 1941 Respectfully submitted-,-., "-iSZHlLxx ic Certified Public Aocountants INTERNATIONAL SlCT.H;v ^.:o a 3 COMPARATIVE ^LATCE ! DICaaSR 31ST 1959 Alg ASSETS EXX2D ASSETS: Mines and mining claims and lands for metal producing and manufacturing plants Buildings and machinery at reduction works, refineries and manufacturing plants Less reserve for depreciation Patents Investments: Securities of subsidiaries - not wholly owned - wholly owned Other security investments Indebtedness of subsidiaries - not current: Not wholly owned Wholly owned DEFERRED CHARGES: d Prepaid expenses 22 Deferred expenses CURRENT AND OTHER ASSETS: Current assets: Supplies on hand Metals and manufactured products - in process 23 - finished Accounts and notes receivable: 24 Trade, less reserve 15 Affiliates 18 Subsidiaries - not wholly owned - current 26 Cash Other assets: 2? Advances to sundry mining companies, including advances on ores, less reserve Advances to Tooele Valley Railway Company Other aocounts receivable December 5lsi 26,460,316.75 17,026.396.78 21,409.72 21,390.48 827,199.52 1,453,038.70 7,653,672.48 840,500.22 27,592.04 755,883.06 391,178.72 1 69,734.26 119,911.68 ee.se LIABILITIES CAPITAL STOCK - issued and outstanding - 163,500 shares of the par value of 75.00 each RESERVES: For repairs For workmen's compensation insurance CURRENT LIABILITIES: Accounts payable - trade Wages payable Accrued taxes Other accritt4 liabilities Indebtedness - to affiliates - to subsidiaries - not vfcolly owed - wholly owned Employees' deposits 32 DEBENTURES AND NOTES PAYABLE TO AFFILIATES 13 SURPLUS (defioit*) $1 5,250.91 34,079.24 909,816.56 105,897.48 231,440.52 2,103.25 156,673.83 9,949.38 19,388.85 6,749.21 PNYC000G065S rsaiuTioKM r z f in in g c o mp a n y COMPARATIVE flALAJrCJ SKSZT DEC13SR 31ST 1939 AI-ED 1940 December 3lst 1939 December 31st 1940 9 i, 1,212,001.73 v 1,102,805.32 * 109,276.41,/ 26,460,316.73 17,026,396.78 9.433.619.95 1.00 V 25,a77,fiig.84 17,361.601.01 V 482,696.89# 8,616,018.83 3c4,S04.23 1.00 817,601.12// 21,489.72 21,390.48 2,809,594.00 43,000.00 1,414,465.48 731,366.74 123,818.46 15,767,947.36 42,880.20 17,978.96 47,243.29 2,765,473.03 43,000.00 1,423,055.48 l,212,7oo.88 120,151.99 15,283,262.53 35,222.25 3,510.76# 25,852.81 44,120.97# 8,600.00 481,400.14 484,664.83# 22.J42.05 827,199.52 1,453,036.70 7,633,672.48 840,580.22 27,392.04 755,683.06 391,178.72 11,929.242.74 89,734.26 119,911.58 ee.SC 209,734.44 C 27,949,804.74 902,554.99 2,059,586.37 6,397,722.07 1,053,735.19 281,712.04 131,026.53 219,595.44 11,045,932.63 60,293.07 104,900.00 165,193.07 ^ 26,559,630.48 75,355.47 606,549.67 1,235,950.41# 213,154.97 254,020.00 624,856*53# 171,583.28# 863,310.11# 29,441.19# 15,011.68# 88.50]/ 44,541.37# $ 1,390,174.26# 12,262,500.00 5,250.91 34,079.24 39,330.15 $ 909.816.56 105,897.48 231,440,52. 2,103,25 156,673.03 9,949.36 19,386.85 6,749.21 1,442,019.08 15,250,000.00 1,044,044.49* 27,949,804.74 4 12,262,300.00 _ 35,727.04 35,727.04 $ 4 5,250.91# 1.647.00 -. 3,603.11# 902,134.22 95,373.37 352,660.97 11,917.40 48,292.31 13,719.82 19,715.18 6,995.64 1,450,806.91 12,750,000.00 60T594,53 V 26,559,630.48 7,682*34# 10.524.11# 121,220*45 9,814*15 108,381*52# 3,770.44 326*33 246*43 8,789.83 2,500,000.00# 1.104*639.02 4 1,390,174.28# 1 PNYC000006< & ua u -O >- oJ <o w c- J ID a] a 5 0,-w0 oago e bO I *C3O>1 a Co *0 ->OaHd*r4a *-*0ccVoHr0t,,oC3-ec**oo-*<aaa94oJs -*oa wO Po wV**i an uoO co Q 9 1.0c Vo1C ao.* o 3 -O 3 49 cO /9H ooa 3a CfcL.| r(- -I J PNYC00000661 PNYC00000662 PTOS11HATX0HAL BMUT.TTNP AMD RZJIWINC COMPANY BALANCE SHEET - DECBtBEB 313T 1940 - BT nEPUglttEj, r3 a and lands on - deduct* taries: Tooele plant Ophir Hill Miami plant plant Lead refinery Zinc oxide White leac department departmeni $ 355,398.16 66,666.60 7,101,420.61 3,103,550.21 5,772,495.31* 3,037,202.21* 130,665.27 1,113,670.67 706,352,72* 1.00 60,822.51 676,373.82 428,161,12* 13,243.9C 734,447.48 476,994.4S cments idieriea - not current: 5,848.91 i products: si.vable: lly owned - current lng companies, including , less reserve Ley Railway Company rt iss :ompensatlon Insurance ie ies Hates Ldiaries - not wholly owned - wholly owned 921.49 3,277.70 370,65L*79 1,407,404.57 2,524,693.46 87,923.61 89,640.54 100,989*25 55,279.03 188.25 57,104.36 503,976.99 490,483.39 320,547.43 15,917.05 6,325,305.12 1,521,232.07 1,971.55 4,644,70 100,548.95 40,046.92 382,142.12 21,386.71 700.00 36,014.74 108,157.89 280,133.77 213,279.05 23,241.2S 275,785.5C 76,941.68 12,600.41 25,000.00 1,971.55 1,099,354.03 978,169.57 646,665.32 4,062.85 333,812.96 40,135.14 16,698.45 13,767.18 13,719.82 6.626.67 428,843.07 22,903.68 12,763.09 14,190.66 2,360.47 13,642.71 49,857.43 360.97 16,372.15 24,334.19 214,060.84 23,455.98 9,545.21 1,181.13 38,782.24 318.11 272,577.35 39,100.35 82.50 82.50 as excess of liabilities $ 5,896,46S.05 1,471,374.64 14,400.60# 026,776.68 939,069.22 646 ,582.82 PNYC000006< agjisnr ZPAfflMEHTg 11 hlte lead epartment 13,243.90 34,447.46 76,994.49* Raritan refinery 343,890.04 10,008,991.97 6,040,996.49* Raritan secondary metals departments j 65,861.21 ' 2 , 043,072.59 618,405.1.1* 23,241.25 75,785.50 76,941.68 10,358.41 308,769.24 15,116.25 961,359.79 229,827.15 33,860.70 41,185.99 2 9,589.80 1,474,018.33 >46,665.32 6,726,836.60 2,779,663.27 Raritan electro-sheet department Investments end advances - details B1 H Items not allocated tci departments - details 38 Eliminations* Total page 9 4,349.45 366,135.60 80,993.56* 61,900.16 29,956.69 1,102,805.32 25,977,619.84 17,361,601.01 1.00 9,105.71 29Q.597.2Q 2,765,473.03 43,000.00 1,417,216.57 1,212,766.88 120,151.99 1,866,11 28,149.34 6,224.66 70,000.00 5,014.04 104-900.00 5,866,627.47 31,858.01 248,446.30 35,498.93 315,803.24 594.96* 594.96* 2,765,473.03 43,000.00 1,423,065.48 1,212,766.88 120.151.99 17,978.96 47,243.29 902.554.99 2,059,586.37 6,397,722.07 1,053,735.19 281,712.04 131,026.53 219,595.44 60,293.07 26,559,630.48 82.50 4,949.53 283,482.59 19,019.16 31,713.00 323.26 12,640.06 3,883.00 82.50 352,327.60 3,883.00 646,562.82 6,374,509.00 2,775,780.27 11,276.03 11,276.03 1,155.80 19,715.18 3,126.41 265,715.06 21,098.90 594.96* 20,871.06 291,940.37 594.96* 95)373.37 11,917.40 48,292.31 13,719.82 19,715.18 6.995.64 1,486,533.95 287,321.17 5,845,756.41 23,862.87 - - "25,073,094.53 Capital stock Surplus Debentures and notes payable to affiliates As above $ 12,262,500.00 60.594.53 12,323,094.53 12.750.000.00 $ 25,073,094.53 PNYC00000664 Sal^3 of cc?per lead silver agioslcdellaneoas ne^ta,ls zinc elide wnite laad electro-sheet copper ores and concentrates Tolls Tooele plant 478,411.96 3,849,191.85 3,463,613.00 2,471,854.56 59,e0Q.3O I'iaci plant 310,125,56 267,776.04 289,009.71 Ophir fill plant 1,019,366.78 1.C67.005.41 11,408,251.86 986.065.87 1,852,977.20 350,093.71 350,093.73 Clnterdepertaent 9,777,646.13 1.288.611.53 11,066,257.66 1,031,263.97 681.202.28 1,712,466.25 237,938.06 237,538.06 t^pne or l93 ' -^ovi3i3 for depreciation and loss on disposal or dismantlement of fixed assets locoae or loss* from operations 341,994.20 151.554.45 190,439.75 140,510.95 112,155.65 65,700.68 74,310.27 63.691.70 4a,463.95 Otter incone: Dividends received from Mountain City Copper Company otfier dividends and interest (paid*)-ret Miscellaneous income 248.22* 248.22* i2i.ac i. 723.00 1,849.20 285.00 205.00 Incoce or loss* 190,191.53 76,659.47 48,748.95 United States incoae taxes - estimated Sxpenaes pertaining to nonoperating 'units 14.240.88 14,240.38 705.2C 705.2C Income or loss 175,950*65 76,659.47 46,043.75 Interest on debentures and notes payable to affiliates Ijr.eaditure on options not exercised Net income or loss* r> 175,950.65 76,659.47 48,042.75 5 PNYC00000665 INCOl'S ftCCOtftTT 5Y OSPATTO^rv ?le Tlant t78.4-U.96 349,191*85 i62,613.00 171,854.56 59.e08.30 : 19,366,"8 67.OC5.41 <08,251.86 Miami Diant 310,125.58 267,776.04 289,009.71 Ophir Hill plant 986.065.87 1,352,977.20 350,093.71 350,093.71 Laed refinery Zinc oxide department -'hits lead department 236,822.16 904,691.02 270,336.74 3,134.30 442.526.29 1,857,510.51 2,324,606.74 365,067.46 2,689,674.20 967,060.85 967,060.85 Haritan refinery 20,860.50 55,310.63 8,682.16 115,771.95 5.670.366.02 5,871,191.26 3?.ritan secondary metals department 4,893,501.8; 640,388.6' 5,534.390.5C '77,646.13 38.511.53 66,257.66 1,031,263.97 61.202.20 1,712,466.25 237,938.06 237,938.06 1,577,947.98 78.220.05 1,656,168.03 2,635,876.13 L52.Q5 2,636,023.18 423,963.60 499.919.42 923,883.02 3,807,212.67 Cl.903.94 3,869,116.61 5,222,333.02 133.362.55 5,408,195.5? 41,994.-20 140,510.95 112,155.65 201,342.48 53,646.02 43,177.83 2,002,074.65 126,194.93 .51.554.45 9C.43S.75 65.700.68 74,310.27 63.691.70 48,463.95 49,094.07 152,247.81 124.315.12 70,669.10* 27,986.91 15,190.92 3L7.102.07 1,084,972.58 63.971.9C 62,223.03 <248.22* 248.22* 90,191.53 121.20 1.728.00 1,849.20 76,659.47 285.00 285.00 48,748.95 152,247.81 14.240.38 14,240.98 75,950.65 76,659.47 705.20 705.20 48,043.75 152,247.81 295.92 295.92 27.46 27.48 107.653.84 107,653.84 70,373.18* 15,218.40 1,792,526.42 1.615.82 1,618.02 71,992.00* 15,218.40 1,792,626.42 62,223.03 62,223.03 5,950.65 76,659.47 48,043.75 152,247.81 71,992.00* 15,218.40 1,792,626.42 62,223.03 PNtcooo00666 Raritan refinery 55,310.63 0,882.16 115,771.95 Raritan secondary metals department 4,093,501.83 -tritaa -itctrosdeot department 640,888.67 5,670,366.02 0 5,871,191.26 5,534,390.50 105,869.15 i 3,807,212.67 5,222,833.02 01.903.94 105.352.55 * 3,869,116.61 5,408,195.57 81,550.00 243.20 81,793.20 3 2,002,074.65 126,194.93 24,075.95 317.102.07 1,684,972.58 63.971.90 62,223.03 13.127.11 10,943.84 12 Investments and advances - oene 37 Items not allocated to departments - page 38 Interdepartment eliminations* 243.20* 499,830.17* 9,553.35* 424.12* 3,210.42* 450,921.40* Total page 10 5,702,656.67 2,586,133.84 4,690,390.69 3,040,003.17 806,915.57 2,324,182.62 963^650,43 105,969.15 1,266,740.79 2,,795,615.02* 27,941,404.22 9,393.66 9,393.66 9,393.o6* 82,576.03 82,576.03 24,368,201.25 ?. .795.615.02* a.,795,613.02* 24,385,201.25 82,576.03* 2,9::,<iC*-.97 120.960.26 136,3 5 3.92* 82,576.03* 1.GC3.5C,.67 1,949,COS.1C 5 107,653.84 o 107,653.34 0 1,792,626.42 62,223.03 10,946.84 1,792,626.42 62 ,223.03 10,948.84 1,792,626.42 62,223.03 10,946.84 365,733.50 38,816.64 1.190.03 405,740.17 269,386.25 35.946.81 35,948.31 233,437.44 1,692.10 1,692.10 80,633.93* 271,477.25 271,477.25 352,361.18* 379.745.54 379,745.54 658,618.07 658,613.07 146,308.10* 1.,010,979.25* 305,733.50 40,705.12 L1C.856.87 517,295.49 2,466,993.59 271,477.25 5L.513.7l 323,330.96 2,1-; j , CCiS .63 653,613.07 379.745.54 1,038,363.61 1,104,639.02 3 PNYC00000667 ! PNrC0000066 PNYC00000669 ) PnYCOOOQ 06 7 N0T2 X - T ra n s fe r between departm ents, 3 S SSS s sis ?! 2 5 a g g 32 s I si a 3 = S8 g CD S ti CT> C-Os s s si S i<D i i i i i3 itS3" 4 sS 3 s5 ss g s s a ss o fT 3 3' I tl s II s aS 3 S Si 8 S' S'4 it Is Ig 4 ) pnYC00000671 PNYC00000672 ootoomoooomo c~iftoooo<roo>o <i<oDociOorjce-0\*jOi'<i'r<etOo~oc'Nic^J^HO^OO^ijn`Ce'eto~ue a o c* MON OHHflH ao-> So Ttt ooiBono^onwoo t'toer>oejct'0Wir>n o rt tO^ CDcO')1 O 03 i CHToi-'<JOitfinOMin9O0OoOiC'io* 'TMOCC'0'000 ^CiOO<0<9^,AINHN o j to w <y rH ea -tHDOf'-OM>eNOO<OWC<'<7|`*r- N O QiO to to cu e- <oc r -flt* <ff0l C Q CO o <o to ^O OO 2 TWfl atOO "lOO HOOHO& H n .1J tfi O H O uv to wttj wCkJ' ii OHiOH A] o c q o x o "f oi so Hat-<HtOO^MOCtOO U I 38 a<m0wxaccDHgt^0twWooa.--tetefc-w.om{00m c mo -h o> w NCin4tOH<hHNwNHn XssX o. a, XX C O o ce C05.xa -*o>4 se>eooou.<c 8 81-- . 6 >d*m nA on.n-< e-*-* o o o <1 o a a cc_ v. xa eoO AgfAc9iooo*a4 *a4 - a e coo oo o aa-cgwf<l-ctC4OO c c a * OSSlHflua c-H*J *> o o a*;? o4 e a onon a *e4-4aMa4w<H , *xtoc*.^-oi *a*^aaG b .oh *o4 t., U X_| 0<4CBi j 3 *4 o a a o o i ns oo cwn^voo* *4 fc. O e KOSA>i (4 *Q Mc * aO ** .a o i t3oHK3Sn9ih2o3o(<aatj><.al.at<<.Htokaax n&sx s ss>. >* d If k.p aS. qS.4txaaiHc ic o o~ O* *oi1 SC .f_*i.~4. O ft. 8 Q *4*4 43 *o-.oxna<-rn4-HntaoOoGouoeosea4-n3 o-aa-j o h +> a o o a o4 c oo ft n e-j to *> xto-Ho noa4ana -nH*4 o *a G *J *4 bflOh O CHHHO*4X fl -B c a4oCca9s0wq b oonh *+4 UO *OMO%OObt bXO kX (3 .M .* J4 J4 *4 J' - PN*coooao673 o o <o a *i*3 c p n cp o r E-t > O oo o aa oCO *h a o a p *h o a* <-t < o *o <o o 0 e- to a to a a to to -< >h oa ft to c<oo c^o o* a IlI fat* a uo a o f.-tttr-hH ofa a a aa *a. fa a 3o f>t oh -oa f>a OaJ3 oa S3 wfaa.aOfaa Ho .pa fa ,32 Q Q 4 4 w p Tc -fht ^ O.PnoOJ3 3 fa <3 O <0 eo ,4 aa fcHio 3 <3 fa ~ h4p>a>afsa oOa <h o --t fjaqt a psa oa a pmafa HOOD OMP aaaa o 3 00 fa oa. TJ * 'Wco,. CTHSR SECURITY INVESTMENTS Balance December 31st 1939 Additions - year 1940 - Copper Canyon Mining Company, 64,000 shares Per Balance Sheet, December 31st 1940 - page 9 20 $ 1,414,465.46 8,600.00 $ 1,423,065.46 Details of balance at December 31st 1940 Zinc oxide department: Delaware Floor Products Company: Common stock Second mortgage bonds National Fireproofing Corporation: Common stock Income debentures Northwestern Terra Cotta Corpora tion stock Viscosity Oil Corporation stock Investments and advances: Condor Gold Mining Company stock Coppar Canyon Mining Company National Tunnel and Mines Company stock Park-Utah Consolidated Mines Company stock Prince Consolidated Mining Company stock no par 2,600.00 no par 200.00 18.75 no par 26 $ 7 18.75 .75 2,580.50 2,600.00 65.01 200.00 367.78 35.62 5,848.91 4,632.30 6,400 no par 69,800.00 80,000.00 61,764 64,000 328,200 69,800 800,000 4,632.29 8,600.00 915,693.92 441,157.50 47.132.86 1,417.215.57 3 1,423.065.48 Investment in National Tunnel and Mines Company in this report is at the amount shown on the books of International Smelting and Refining Company which differs from that shown in the report on Anaconda Copper Mining Company and consolidated subsidiaries, in that the investment and Consolidated Surplus have there been reduced by $136,307.60, the amount of the deficit of UtahDelaware Mining Company on dissolution in 1937. i pwrcooooo675 "^oooot PEFSaaSS EXPENSES Tooele plant: Expenditure on account of option to purohaae stock of Copper Canyon Mining Company Prepaid rental Adrenoe on purchase oontract Prepaid lime sand royalty Sundry deferred expeaaea Zinc oxide department - club memberships Raritan secondary metals depart ment - blast furnace slag treatment expense Per Balance Sheet - page 9 December 31st 1939 December 31st 1940 Increase decrease* 4 -2,157.98 1,225.91 246.58 3,532.43 1,000.00 15,758.05 $ 31,390.46 28,149.54 1,240,00 1,711.60 326.10 31,427.04 700.00 15,118.25 47,243.29 28,149.34 1,240.00 446.38* 1,225.91* 77.54 27,794.61 300.00* 1,641.80* 25,852,61 } PNrC00000677 28,416,265 g?3S8S S8*?s_- g g slH'g'H sssis s <J> s r* isssis if'-' i I to -H O * 8 KUO S 8S2 I f 2 | ~S s s s i i'i i coe3<* I Sa" S3 1I 2S e <3 ft Q e-. -a sss 83 ggs ss 11 ! II I ss asss i i's'i i S' HV ga i n 3 8 3 2 g i s I S 1 S* 2 s' i 3 S' I s il N s5 I 1 3o -a t 0B u3~X* *i 3 * O , t m aOo 4 s3) 9 V* 3 m iS-SiSSlS C 0t1* o. -* S53Sa3 9 Ot 111 III 35 s 3 1 i las of*V i iiS 0OO9P1 il H Is i4 g <0 C- O(8 C03- g* ! o 0 g 1 3 rrf 3 11 is o o> lO co* o o S3 IS CDk.OC-<8 ?r* ^ o oo. * <- to ta l fo r a ll departments PNYC00000678 25 ACCOUNTS WITH AFFILIATES Accounts receivable from: The American Brass Company Anaconda Sales Coaeany {payable at Doc. 31, 13391 Anaconda Wire and Cable Company Chile Exploration Company saber 2ist Dersmbsr 3ist Increase 1539 1940 decrease* ^ 1,025.39 11,627.77 15.579.76 28,232 - 92 2,277.12 248,446.30 16,178.27 15,405.31 282,307.00 1,251.73 248,446.30 4,550.50 174-45" 254,074-09 Net off accounts payable to: The American Brass Company Anaconda Wire and Cable Company 540.98 540.88 532.35 62.61 594.96 532.35 470.27* 54.00 Per Balance Sheet - page 9 $ 27,593.04 281,712.04 254,020.00 Accounts payable to: Anaconda Copper Mining Company The American Brass Company Anaconda Sales Company {receivable et Coo. 31, 1940) Anaconda Wire and Cable Company Chile Steamship Company, Incorporated Montana Hardware Company Tooele 7alley Railway Company Net off accounts receivable, as above 21,098.90 -" 110,263.64 540.38 10,118.53 4,793.36 10.399.40 157,214.71 540.98 21,098.90 532.35 - 62.61 7,104.23 9,305.09 11.794.09 48,807.27 594.96 _ 532.35 110,283.64* 478.27 3,014.30* 3,511.73 1.384.69 103,327.44* 54.08 Per Balance Sheet - page $ 156,373.83 48,292.31 109,381.52* Ptrtcoc ! PN,<:oo 6e, ADVANCES TO SUNDRY MINING COMPANIES INCLUDING ADVANCES ON ORES 27 Ors purchase accounts: Good Good but slow Pair but slow Other notes and accounts: Afterthought Mines Corporation New Quincy Mining Company Panther Mines Company Rloo Enterprise Mining Company Sundry Lees reserve for doubtful accounts Per Balance Sheet, page 9 December 31st December 31st Increase 1939 1940 decrease* j 15,203.61 3,999.50 91.351.05 110,554.16 7,185.58 1,652,53 42.552.82 51,390.93 8,018.03* 2,346.97* 48.798.23* 59,163.23* 2,935.34 9,982.70 9,393.66 217.26 22,528.96 133,083.12 43,346.86 % 89,734.26 4,978.54 29,854.31 9,788.19 7.737.29 52,333.33 2,043.20 29,854.31 194.51* 9,393.66* 7.520.03. 29,829.37 103,749.26 43,456.19 29,333.86* 107.33 60,293.07 29,441.18* pNVC0000068. PNYC0000068 i PNYC00000665 I I PNYC000GQ686 32 DEBENTURES AND NOTES PAYABLE TO A77ILIATSS Balance December 31st 1939 Payments 1940 details below Per Balance Sheet, December 31st 1940page 9 L5 year 6% debentures due 1550, held by Anaconda Copper Min ing Company Demand note, interest at 5%, payable to Anaconda Copper Min ing Company Time notes details of payees and interest rates below 8,000,000.00 2,250,000.00 5,000,000.00 2,500,000.00 8,000,000.00 2,250,000.00 2,500,000.00 15,250,000.00 2,500,000.00 12,750,000.00 id balance' EkecemKer" 3lst 1939 $ 21,098.90 Accrued 1940, per Income Account page 10 480.000.00 Paid 194Q 501,096.90 480.000.00 Balance December 31st $ 1940 21,098.90 -- 112.500.00 112,500.00 112.500.00 -- 3,125.00 66.118.0? 69,243.07 69.243.07 -- Details of time notes Payable to Anaconda Sales Company; Balance December 31st 1939 -interest at1-1/2% $ 5,000,000.00 Payment June 15th 1940 1.000.000.00 Balance June 15th 1940 - Interest at1-3/4% Payment August 31st 1940 Payment September 14th 1940 4,000,000.00 500,000.00 3.500,000,00 Payable to Anaconda Copper Mining Company: September 14th 1940 - interest at 1-3/4% Payment October 22nd 1940 $ 3,500,000.00 1.000.000.00 2,500, 000..00 24,223.90 658.616.07 682,841.97 661.743.07 21,096.90 Details of interest accrued on time notes Payable to Anaconda Sales Company; December 31st 1939 to June 15th 1940 1-1/2% on $5,000,000 June 15th 1940 to August Slat 1940 1-3/4% on $4,000,000 August 31st 1940 to September 14th 1940 1-3/4% on $3,500,000 Payable to Anuconat Copper lining Company: September 14th. 194Q to October 22nd 1940 1-3/4% on $3,500,000 October 22nd 1940 to December 31st 1940 1-3/4% on $2,500,000 Total, as above 34, 375.,00 14,,583..33 2.,430..54 51..338..87 6 ;,465 .31 3,,263,,3f 14,,729 .20 66,,118..07 *ncooe< ), OTHER DIVIDENDS AND INTEREST Interest received: On advances: To subsidiaries not wholly owned: Comet Coalition Mines Company Eureka Bullion Mining Company Walker Mining Company Tooele Valley Railway Company International Building Association On refund of capital stook tax Miscellaneous - net Dividends received: Park Utah Consolidated Mines Company Miscellaneous Per Income Account, year ended December 31st 1940 page 10 9 PNYCC0000688 j 34 MISCELLANEOUS INCOME Miami plant - rents Ophlr Hill plant - rents Raritan refinery: Record storage rentals Copper storage rentals Discount on prepayment of taxes Loading and unloading lighters Investments and advances: Park-Utah Consolidated Mines Company reimbursement for dividends of prior years not received by the company Less outside property expense, Tooele I 1,350.00 87,532.32 3,008.08 15.763.44 ,1 200.00 9.97 Per Income Account, year ended December 31st 1940 - $ 1,728.00 255.00 107,653.84 1.190.03 J -- *o< 0}** uO <aJ QoS-S' 0.-0s0is! o3 k 5 o o t> to ol 0 13 ~ -<,* H 51 0* 898 *C<>0 CCQ.TQ3 3<OJ 4 s M 0 0 CD OO^OOb to o ? to o <H C- 'CNlfl m o r> o eg < ,-f tt to O * Ov eg 50 m Co>D tO *h < t egeyTieT e-evitoj (9S0m0egAc0olDegle0D^0>>l<(800 H C Ul O H M ** a no-a ocOj foc.,aH> 0a. cl eg c* eo to to eg to O to cj irij > *>*** q u ss i I if 1% 3<a h*> mna.05sE>baO3 a<Q OSHOdflc*eom) Sltts 0.4* Vt*H tCemHfa u mo j h +s>e8**a QOddc>5(.(.8 hH^o5a0h)h^SsRaBa!Ha ^C0 HO<OQ O9 as oH o0. O9 au Hsc S'*stOo a S^h 0 0.(3 CW 1 ! "i i 36 EXPENDITURES CN OPTIONS NOT EXERCISED Investment in and advances to Pelleyre Mining and Milling Company written off: Investment Advances - Balance December 31st 1539 Additions 1940 Per Inoome Account, year 1940 - page 10 # 65,120.97 $ 310,203.91 4.420.66 314,624.57 * 379,745.54 PNYC00000691 b a l a n c e s h ee t im&s Mines and mining claims and lands Buildings and machinery : Investments: Securities of subsidiaries - not wholly owned - wholly owned Other security investments Indebtedness of subsidiaries - not current - not wholly ov< Prepaid expenses - wholly owned Deferred expenses Supplies on hand Accounts receivable - trade Advances to sundry mining companies, including advances on ores, less reserve Advances to Tooele Valley Railway Company Accrued taxes Indebtedness to subsidiaries wholly owned Net investment $ INCCIS ACCOUNT TTg Cost of sales # Provision for depreciation and loss on disposal or dlsmantleme of fixed assets Other income: Dividend received from Mountain City Copper Company Other dividends and interest Miscellaneous income (expense*) Income or loss* Deduct: Expenses pertaining to nonoperating units Expenditures on options not exercised Net income or loss' PNYC00000692 INVESTMENTS AM) ADVANCES DETAILS OF BALANCE SHEET AND INCOME ACCOUNT ITEMS d lands Wholly owned subsidiaries $ Mountain City Copper Company 'ValKer Mining Company Other subsidiaries not wholly owned National Pari Tunnel Consc and Mines V Company Cc 2s - not wholly owned - wholly owned ts 43,000.00 ries - not current - not wholly owed - wholly owned 120,151.99 1,143,281.33 862,049.50 797,479.10 740,142.20 415,287.78 915,693.92 441, :ompanies, including advances on Railway Company 163,151.99 1,143,281.33 1,679,528.60 1,155,429.98 985,693.92 441,: s wholly owned 19.715.18 19,715.16 $ 143,436.81 1,143,281.33 1,679,528.60 1,155,429.98 985,693.92 441,1 4 and loss on disposal or dismantlement >untain City Copper Company *est 'ensa*) noperatlng units at exercised 4,797,57 4,797.57 4,797.57 365,733.50 365,733.50 365,733.50 4 4,797.57 365,733.50 18,795.49 16,795.49 16,795.49 2,955.37 2,955.37 2,955.37 16,795.49 379.745.54* 379,745,54* 376,790.17* 6,9* 1,2C 8,1 0,18 8,18' 5 t 06 93 Park-Utah Prince Consolidated Consolidated Mines Mining Company Cotntanr Condor Gold Mining Company 441,157.50 47,132.86 4,632.29 35.50 441,157.50 47,168.36 4,632.29 .41,157.50 47,168.36 4,632.29 Afterthought Copper Mines Canyon Company operations Tooele Talley Railway Company 8,600,00 20,149.34 4,978.54 4,978.54 36,749.34 104.900.00 104,900.00 4,978.54 36,749.34 104,900.00 Rico Mines department, outside exploration, etc. Tota pag 11 an> 2,480.00 29,956.69 1,866.11 6,224.66 40,527.46 59,428.16 59,428.16 61,906 29,956 2,765,472 1,417,216 1,212,766 120,151 1,866 28,149 6,224 70,000. 5,014. 104.900. 5,866,627. 1,155.88 1,155.88 1,155. 19.715. 20,871. 39,371.58 59,428.16 5,345,756.< 6,980*00 1.200.00 a,lao.oo 8,180.00 1,180.00 9,393.66* 136.960.26* 136,353.93* 7,288.21 7,288.21 7,288.21 136,353.92* 35,946.81* 3S.948.81* 7,288.21 173,302.73* 9,393.6 126.960.2 136,353.9 9.97* 9.97* 3-5,733.5' 38 ,816*61.L90.0: 405,740.1'; 9.97* 269,386.25 35,948.81 379.745.54 415,694.35 9.97* 146 ,308.10' P**COOO, 00694 PNYC00000695 INDEX 39 Pago A 23 Accounts with affiliates 24 Accounts receivable - trade, less reserve 29 Accounts payable - trade 31 Accrued liabilities, other 30 Accrued taxes 19 Advances to subsidiaries * not wholly owned i-9 - wholly owned 27 Advances to sundry dining companies 25 Affiliates, accounts with 32 Affiliates, debentures and notes payable to B 11 Balance Sheet - by departments 9 - comparative 15 Buildings and machinery C 26 Cash D 32 Debentures and notes payable to affiliates 22 Deferred expenses 16 Depreciation, provision for 16 Depreciation, reserve for E 36 Expenditures on options not exercised 22 Expenses, deferred 21 Expenses, prepaid P 3-6 funds received and disbursed I 12 Income Account - by departments 10 - comparative 18 Investment in and indebtedness of subsidiaries - not wholly owned 19 25 Indebtedness of affiliates - wnolly owned 19 Indebtedness to subsidiaries - wholly owned 33 Interest reoelved and paid 23 Inventories, finished 37 Investments and advances 17 Investment in securities of subsidiaries - not wholly owned 20 Investments, other security 38 Items not allocated to departments L 14 Lands, mines and mining claims and 35 Loss on disposal or dismantlement of fixed assets PNYC00000696 40 Page U 15 Machinery, buildings and 23 Metals and manufactured products - finished 14 Mines and mining olelms and lands 34 Miscellaneous income N 32 Motes payable to affiliates 0 2 Operations by departments - comparative 36 Options not exercised, expenditures on 31 Other accrued liabilities 33 Other dividends and interest 20 Other seourity Investments ? 36 Pelleyre Mining and Milling Company write off - see expenditures on options not exercised 21 Prepaid expenses S 16 Reserve for - depreciation 28 - workmen's compensation insurance 3 18 Securities - of subsidiaries not wholly owned 19 - wholly owned 20 - other 18 Subsidiaries, investment in and advances to - not wholly owned 19 - wholly owned 27 Sundry mining companies, adv&noea to 13 Surplus aocount T 30 Taxes aocrued W 3 Working capital