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<
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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
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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
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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
!
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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
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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