Document 4JpXwMYQdQw7BnG4aj9b4YnNG

! N10109 INTERNATIONAL SMELTING AND REPINING COMPANY REPORT ON AUDIT YEAR ENDED DECEMBER 3.1, 1944 *! Pogaon, Pelcrabet ft Co. Certified Public Accountants ISfiOOOOOOANdl INDEX IM& 1 2 3 4 4 4 5* 7 7 7-9 10 - 41 42 - 43 Scope of the report Financial condition of the company Company operations ................ Inoome or loss from sundry Investments Investments In wholly owned subsidiaries Other Investments Statement of funds received and disbursed Distribution of Balance Sheet and Income Account to departments Scope of audit Financial statements and explanatory schedules (see alphabetical Index) Alphabetical Index i! PNycoooooasp NEWYORK MAU RICC C. 'tLOUlir p(c t w. paascN. jq. POQSDN, PELQUBET & CO. CERTIFIED P'J S LI C ACCOUNTANTS eA*'-* *aauu "CCRTirito" hc w *OENT c k at t *,,,, 4 ca io n o q n 2 S 0 ROADWAY, NEW YORK 4, N. Y. To the Board of Directors, International Smelting and Refining Company, 5 Broadway, New York 4, New York. Dear Sirs: We hare made a general audit of the books and accounts of INTERNATIONAL SMELTING AND REFINING COMPANY for the year ended December 31, 1944, and present the various statements listed on the opposite page. Hie acoounts of New Jersey Storage and Warehouse Company and Raritan Terminal and Transportation Company, Aolljr owned subsidiaries, which are not operating, have not been consolidated with those of International Smelting and Refining Company in this report. International Smelting and Refining Company is a 100;* owned con solidated subsidiary of Anaoonda Copper Mining Company. This report, while complete and inclusive for International Smelting and Refining Company, is principally a supplementary amplification of the report on audit of Anaoonda Copper Mining Company and subsidiary companies. It shows the portion of the consolidated accounts of Anaoonda Copper Mining Company relating to Inter national Smelting and Refining Company on the same basis and under tbe same olassifloatlosa as shown in the consolidated report, hut In somewhat greater detail. In the consolidated accounts cf Anaoonda Copper Mining Company and subsidiary oompanies the investment of International Smelting and Refining Company In shares of National Tunnel & Mines Company (acquired in exchange fer shares of Ctah-Dtlaware Mining Company) has been reduced by $136,307.60 to reflect loaeee of TJtah-Del aware Mining Company during the period of its inclusion In suoh consolidated accounts. This reduction has also been given effect to in this report as shown on pages 12 and 21. FIHAHCIAL 2 Summarized, the changes In financial condition during the year were as follovs: At December 31, Fixed assets, less reserves 1242 applicable thereto $ 14,797,949.75 Deferred charges 1,904,913.06 Current and other assets - net. except notes payable to Anaconda Copper Mining Company 6,531.752.67 At December 31, 1244 14,060,874.19 2,274,520.85 6,716,903.70 Decrease* or increase in Investment 737,075.56* 369,607.79 185,151.03 Reserves for workmen's coapensatlon insurance 23,234,615.48 23,052,298.74 182,316.74* _____58,544.09 ______ 52,576.64 ____6,167.45* Equity of Anaconda Copper Mining Company $ 23,176,071.39 32,999,922.10 176,149.29* The equity of Anaconda Copper Mining Company at December 31, 1944 Is represented by: Capital stook Rotes Surplua $ 12,262,500.00 10,500,000.00 237.422.10 As above * 22,999,922.10 and represents Investment In the following net assets: Principal smelting, refining and aanufsoturlng plants (details page 3) Securities of and advances to other companies, etc. (details pages 4 and 40) 15,972,783.64 7.027.138.46 As above $ 22,999,922.10 The decrease In equity during the year 1944 Is the result of the net loss for the year Advances to International Building Association written off Investment in International Building Association written off $ 94,300.61 110,848.68 1,000.00 206,149.29 Less overaccrual of Federal Income tarn for the year 1943 30.000.00 Decrease, as above $ 176,149.29 Changes In current position vere as follows: December 31, 1943 December 31, 1944 Current assets 10,219,504.30 8,291,256.17 Current liabilities 3,976,112,00 MS?i7ft5il t 6,243,392.30 6,398,460.41 Increase or decrease* 1,928,248.13* 2.083.316.24* 155,068.11 Current ratio 2.6 to 1 4.4 to 1 OPERATIONS 3 Operations of International Smelting and Refining Company for the past three years compare as follovs: Year 1942 Gross sales and earnings $ 20,341,958.03 Year 1943 22,046,552.29 Year 1944 21,918,993.90 Net profit on plant operations^ 1,042,376.83 Income (lass*) from sundry investments 192,598.21 1,234.975.04 Interest paid to Anaconda Copper Mining Company on debenture*1 and notes 596.875.00 Provision for Federal income taxes - estimated 180.700.00 Provision for contingencies 764,377.88 67,745.23* 696,632.65 596,875.00 30,000.00 297.642.94 412,217.10 110.60S.27* 301.611.83 >95.912.44 Net Income (Loss*) 777,575.00 t 457,400.04 924,517.94 227,885.29* 395.912.44 94,300.61' Gross profit on operations of the various plants and departments of the company and Income from sundry investments for the past three years together vlth the respective Investment therein at December 31, 194* are shown in the following summary; Het Profit (Loss*) on Plant Operations Year 1942 Year 1943 Year 1944 Investment at December 31, 1944 Tooele plant $ 28,320.46 394,775.34* Copper Canyon lease Miami plant Lead refinery Zinc oxide 121,098.88*' 133,925.85 36,773.18* 32,969.95 department White lead 150,804.77* 90,618.19* department Raritan refinery Raritan electro 19.lTT.fir* 16,825.58* 1,203,369.23 1,216,453.14 sheet department Not allocated (de 15,600.35* 34,409.58* tails page 41) 88,075.77* 88.344.37* 344,208.98* 4,552,484.04 147,172.64 36,223.72 1,257,380.07 1,594,017.85 754,932.17 1.890.97* 570,632.78 21,701.99* 595,416.05 729,523.18 6,706,081.71 21,545.80* 287,775.99 111.354.70* 345,937.02' Gross profit an plant operations - as above $ 1,048,376.83 764,377.88 412,217.10 15,972,783.64 , Details of the above figures for 1944 are shown on the Balance Sheet and income Account by departments on pages 13 and 14 respectively. (loan*? from sundry Hwwtascts Year 1942 Mountain City Copper Company, dividends $ 219,440.10 National Tunnel and Mines Company, interest 20,833.31 `Talker Mining Company, Interest 12,379.24 Other investments and advances not loss* (details page 40) 80,054.44* Income (loss*) from in vestments - per page 3 y 192,596.21 ,, Year 1943 -44,365.37 -- 112,110.60* 67,745.23* Year 1944 Investment at December 31. 1944 -- 996,967.93 48,751.09 -- 2,729,386.32 200,142.21 159.356.36* 3.100.622.00 110,605.27* 7,027,136,46 Dividends of yl46,293.40, received during the year from Mountain City Copper Company were credited to investment in that company. Details of the above figures are shown on the Balsnoe Sheet and Income Account by departments on pages 13 and 14 respectively. INVESTMENTS IN WHOILY OWNED SUBSIDIARIES The net investment of International Smelting and Refining Company in its wholly owned subsidiaries amounted to $17,103.47 at December 31, 1944. Net income of these companies for the year 1944 was $1,827.74. During 1944 Inter national Building Association was liquidated with a lose of $84,562.08 which Included interest of $3,309.51 accrued on advances by International Smelting and Refining Company. Details page 18. INVESTMENTS IN OTHER COMPANIES Investments, including noncurrent advances, in subsidiaries not wholly owned aid in other companies amounted to $5,220,959,83 at December 31, 1944 oompared with $5,407,125.36 at December 31, 1943, as shown by the following table: Subsidiaries not wholly owned: Mountain City Copper Company National Tunnel & Mines Company - see below `.Talker Mining Company Other subsidiaries Other oompenias: National Tunnel i Mines Company - see below Park Utah Consolidated Mines Company Prince Consolidated Mining Company Copper Canyon Mining Company December 31, December 31, 1943 1944 $ 1,143,281.33 2,797,394.89 200,000.00 769.558.78 4.910.235.00 996,987.93 200,142.21 797,553.01 1.994,683.15 441,157.50 47,132.86 8.600.00 2,729,366.32 441,157.50 47,132.86 8.600.00 As above 496.890.36 3.226.276.68 5,407,125.36 5,220,959.83 By reason of the merger of National Tunnel & Minas Company with Utah Metal and Tunnel Company, the stock interest of Anaoonda Copper Mining Company and subsidiaries was Isss than 50jf at December 31, 1944. Market values of the above securities based on market quotations of seouritias whioh are quoted on various stock exchanges amounted to $4,412,319.70 000856 at December 31, 19*-* compared vith $3,601,294.38 at December 31, 1943 (details on pages 20 and 21), The company's share of the combined net Income of subsidiaries not wholly ovned amounted to $85,551.64 for the year 1944, compared with a loss of $217,431.80 for the year 1943. Dividends received from Mountain City Copper Company amounting to $146,293.40 were credited to investment in that company. There is included in the Income Accounts of the years 1943 and 1944 the following income and expense relating to the above investments: Interest on advances Dividends Loss reserved for advances Net income from investments Year 1943 $ ^8,259.91 $ 48,239.91 Year 1944 52.739.40 6,980.00 51,98a.06* 6,737.34 STATEMENT OF FUNDS RECEIVED AMD DISBURSED Funds were made available to the company during the year as follows: Operating profit before deducting non-cash Items and Interest paid on debentures and notes payable to Anaconda Copper Mining Company (details below) $ 1,085,626.77 Decrease In Inventories (details page ) 1,370,382.65 United States Treasury tax notes disposed of 250,000.00 Decrease In accounts receivable (details page 6) 151,950.00 Dividends received credited to Investment In Mountain City Copper Company 146,293.40 Cash received from dissolution of Interna tional Building Association 20,204.14 Fixed assets disposed of 862.14 3,025,319.10 Funds were disbursed as follows: Decrease In Indebtedness to Anaconda gales Company 1,941,593.58 Increase in deferred Items (details page 6) 436,486.19 Interest paid on debentures and notes payable 395,912.44 Fixed assets purchased (details page 7) ' 245,405.43 Decrease In current liabilities other than Indebtedness to Anaconda Sales Company 111.722.66 3.13lll20.30 Resulting In a decrease in cash of $ 105,801.20 Operating profit before deducting non-cash Items and Interest paid on debentures and notes payable to Anaconda Copper Mining Company Net loss* per Income account - page 11. Add back charges to Income not requiring cash: Depreciation (details page 17) $ 654,443.42 Olaoier Peak option written off 60,710.95 Advances to subsidiary companies written off (details page 6) 51,982.06 Loss on dismantlement or sale of fixed assets (details page 39) Sundry 15,411.13 1.467.38 94,300)61* ^ Add back Interest paid on debentures and notes payable to Anaconda Copper Mining Company As above 784,014.94 395 912.44 1,179,927-38 % 1,085,626.77 Advances to subsidiary companies written ofr Comet Coalition Mines Company Yankee Consolidated Mining Company Mountain Vlev Mining Company Total advances vritten off - per page 5 6 * 45,9*9.88 4,085.48 -1.2*6.7 * 51,982.06 Decrease In Inventories Metals and manufactured products - finished Supplies (details page 25) - In process Net decrease per page 5 $ 869,792.02 421,890.27 ___ Zg,7-- ?6 $ 1,370,382.65 Degrease In accounts receivable Currents Accounts receivable - trade Accounts with subsidiaries not vholly owned, principally Mountain City Copper Company Accounts with affiliates $ Decrease In current receivables Not current! Net Increase In advances to subsidiaries not vholly owned; principally North Lily Mining Company $ Net Increase in advances to sundry companies and Individuals (details page 31): Advances made $ 338,005.76 Less payments received 315.443.19 80,118.50 Accounts written off or reserved for 22,562.57 891.84 21.670.73 Decrease In advances to Tooele Valley Railway Company Decrease In Installment land sales contracts 17,809.85 2.215.67 101,789.23 20,.025.52 Net increase In receivables - not current Net decrease, per page 5 % 212,309.08 19.065.38 233,713.71 81,763.71 151,950.00 Increase In deferred Items - net Mine development: Guild Adams lease operations Victoria lease operations Copper Canyon operations Glacier Peak project operations Total Increase (details page 22) Lees decrease in other deferred items Net Increase, per page 5 237.307.93 122,589.95 82,458.62 ______357.6.2 442,714.12 6,227.93 | 436,486.19 r Expenditures for fixed assets Hines and mining olalms and lands i Guild Adams lease Salt Lake City office, principally development of Tlntlc District Total (details page 15) Buildings and machinery (details page 16) Total expenditures, per page 5 $ 96,616.56 72,764,33 169,380.89 76.0S4.54 * 245,405.43 DX3TRIBCTTI0K OF BALASCK 3HEET AHD INCOME ACCOUNT TO DEPARTMENTS The detail schedules vhlch support the Balance Sheet and Income Acoount by departments (pages 13 and 14 respectively) are presented In ten divisions, the Sight principal operating departments: a ninth division, 1. Tooele plant, 2. Copper Canyon lease, 3. Miami plant, 4. Lead refinery, 5. Zlno oxide department, 6. White lead department, 7. Raritan refinery, 8. Raritan electro-sheet department, together vlth 9. Investments and advances, which Includes the activities of the company other than the principal smelting, refining and Manufacturing operations, and a tenth division, 10. Iteiss not allocated to departsients. In making this rearrangement, the accounts of the company as shown on Its various ledgers have been redistributed and allocated to the departments to vhlch they apply, except for a few Items for which there is no exact basis for allocation and which are shown separately In the last division mentioned above. Details of acoounts which appear In the ninth and tenth divisions are shown on pages 40 and 41 respectively. Land at East Chicago, and land, buildings and machinery, and reserve for depredation at Perth Amboy have been allocated among the various depart ments on a baals believed to be approximately correct. SCOPE OP AUDIT We have made a general audit of the books and records of International Smelting sad Refining Company end Its subsidiary corporations for the calendar year ended December 31, 1944. In connection vlth our audit we examined or tested the accounting records of the company and Its subsidiaries and other sup porting evidence and made a general review of the accounting methods, including PNYC00000859 8 the system of Internal check and control and of the operating and Income aooounta for the year, hut ve did not make a detailed audit of the transactions except in the oaso of Miami plant, vhlch la not examined by the company's own Internal auditors In the case of all other companies and departments ve satisfied our selves that International Smelting and Refining Company and all subsidiary companies vere included In the scope of the vorlc of the Internal auditors of the company. We examined Into the sufflolenoy of the Internal audit and examined the reports of the Internal auditors. Investments, securities, cash, notes receivable and payable, deben tures and capital stock have been verified by Inspection, certificate or correspondence and found In order. Accounts receivable, where these are of material amount, vere tested by selecting certain accounts for confirmation by direct cosmunloation with the debtors or, where possible, by direct comparison with the books and records of the debtors. The company's internal auditors have also verified the accounts receivable of certain departments by direct coassunlcation with the debtors and, while suoh confirmation by Internal auditors cannot be substituted for a similar procedure by the company's Independent auditors. It has been given full consideration In determining the nature and extent of our verifi cation of accounts receivable. Trade and Installment accounts receivable and advances to sundry mining companies vere examined In detail and those considered bad or doubtful have been written off or have been provided for In reserve. Certificates of responsible offlolals have been received certifying to the eorreotness of quantities, descriptions and ovnerahlp of Inventories and ve have made teats of the clerical aocuraoy at the Inventories. In aooordanoe with vhat Is now generally agreed to be accepted auditing procedure, our audit Included physical teats of Inventories. In ventories at all plants are not tested nor Is a complete count made of inventories at any one plant. Inventories are not all tested at the close of the calendar year and the physical testa are In no way Intended as a substitute for the taking of physical Inventories by company employees. The purpose is to establish the existence of a proper system for taking and 9 recording physical Inventories and to satisfy ourselves that the systems are operating effectively and as planned. In the course of this vorlc, a very substantial part (measured In money value) of the physical Inventories Is actually Inspected by us. While this inspection is not our primary evidence of the existence and value of the Inventories vhich must lie in the records of the company, it is of great value as a confirmation of the company's records and representations. Of stocks of metals and produots held for the company or its subsidiaries by others or held by the company for the accounts of others a substantial part has bean verified by direct communication. It is the general practice of the company's Internal auditors to make physical testa from time to time of inventories of supplies and, vhlle 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. Fixed assets, including investments, are carried at cash cost or. in the case of properties acquired for securities of the company, at the original par value of such securities. The values of fixed assets are shovn on this basis and do not indicate ourrent values, vhich could be established only by current appraisals. All other assets are carried at cash cost. We received during the year the usual courtesy from the officers and staff throughout the aompany. Respectfully submitted. r I record!*1 physical inventories and to satisfy ourselves that the systems are I operating effectively and as planned. In the course of this work, a very j substantial part (measured in money value) of the physical inventories is actually inspected by us. While this inspection is not our primary evidence of the existence and value of the inventories vhlch must lie in the records of the company, it is of great value as a confirmation of the company's records and representations. Of stocks of metals and products held for the company or its subsidiaries by others or held by the company for the accounts of others a substantial part has been verified by direct communication. It is the general practice of the company's Internal auditors to make physical tests | from time to time of inventories of supplies and, while these tests cannot ! take the place of eimilar teats by Independent auditore, they are given i i full consideration in determining the nature and extent of the tests made by us. Fixed assets. Including investments, are carried at cash cost or. In the case of properties acquired for securities of the company, at the original par value of auch securities. The values of fixed assets are shown on this baels and do not lndieate ourrent values, which could be established only by current appraisals. All other assets are carried at cash cost. We received during the year the usual courtesy from the officers and staff throughout the company. Respectfully submitted. US (.7 t.5 !..3 I.Q I:! Hew lork, June 18, 19*5 i. i: INTERNATIORAL SMELTT^ SOMTARATTVE i^t , DECEMBER U&s. FIXED ASSETS: ASSETS 15 Mines and mining claims, water rights and lands for metal producing and manufacturing plants 16 Buildings and machinery at mines, reduction works, refineries and manufacturing plants 17 Less reserve for depreciation Patents Investments: 10 Securities of subsidiaries - wholly owned 19 21 Other Investments - not wholly owned Indebtedness of subsidiaries - not current: 20 Wholly owned Rot wholly owned Decamfa 27,198,945. 19,28ol7fin. FUNDS PROVIDE) BY GOVERNMENT AGENCY * expended or on hand DEFERRED CHARGES: 22 Mine development 25 Prepaid expenses 24 Deferred expenses CURRENT AND OTHER ASSETS: Current assets: I 13 Supplies on hand I 13 25 Metals and manufactured products - In process - finished Accounts and notea receivable-: 26 Trade, less reserve 27 Afflliatee 28 Subsidiaries - not vholly owned - current United States Government securities 29 Cash Other assets: 30 Installment lend sales and other accounts receivable, lees reserve 31 Advances to sundry mining companies. Including advances on ores, less reserve Advances to Tooele Valley Railway Company 1.830,959.' 70,833.: 3.119. 1,194,903. 2,564,898. 4,001,518. 1,504,196. 26,596. 49,341. 250,000. 628,049. 8,288. 182,197. 9.7., 875,: LIABILITIES 32 CAPITAL STOCK - Issued and outstanding - 163,500 shares of the par value of $75.00 each ADVANCES BY GOVBRNHHfT AGENCY i 33 RESERVE FOR VORSKBK'S COMWESATION INSURANCE ,, CURRENT LIABILITIES: 34 Accounts and wages payable 35 Accrued taxes 27 Indebtedness - to affiliates It - to subsidiaries - wholly owned 28 - not wholly owned 36 DEBENTURES AND NOTES PAYABIE TO ANACONDA COPPER MINING COMPANY 12 SURPLUS 1,277,113.' 42,059.' 2,589,406. 20,468.: 47.063.' ATI ORAL aHELTOTO tBD REPIKIKG COMPANY COMPARATIVE BALANCE SHEET DECEMBER 31. 1943 AMD 1944 Deoember VI. 19*3 December 11, 1944 Decrease or ^ncreaaa* $ 1,268,615.68 1,450,588.94 * 181,973.26* 27,198,943.43 19.280.760.20 7,918,183.23 1.00 $ 27,242,920.04 19.894.595.62 % 43,976.61* 7,348,324.42 613.835.42* 1.00 569,858.81 42,000.00 2,625,163.58 496,890.36 41,000.00 1,699,483.86 3,226,276.68 ' 1,000.00 925,679.72 2,729,386.32* 162,024.48 2.285.071.42 14,797,949.75 300,000.00 295.199.29 14,060,874.19 162,024.48 1^89,872.13. 737,075.56 300,000.00 1,830,959.71 70,833.39 ?,.H9tg6 1,904,913.06 2,212,962.88 56,951.83 4.606.14 2,274,520.85 382,003-17* 13,881.56 1.486.18* 369,607.79* 1,194,903.38 2,564,898.98 4,001,518.04 1,504,196.83 26,596.34 49,341.36 250,000.00 628.049.37 10,219,504.30 8,288.00 182,197.02 97.875.35 288.360.37 $ 27,510,727.48 1,116,203.02 2,143,008.71 3,108,310.60 1,346,952.60 24,257.09 30,275.98 ___ 522.248,17 8,291,256.17 21,502.97 2Jfc874.82 80.065.50 318,443.29 * 24,945,094.50 78,700.36 421,690.27 893,207.44 157,244.23 2.339-25 19,065.38 250,000.00 105.801.20 1,928,248.13 13,214.97* 34,677.80* 17.809,85 30.082.92* * 2,565,632.98 i J2.05S 2,589.;o 6 20,468 >7.063 4 12,262,500.00 300,000.00 58,544.09 3,976,112.00 10,500,000.00 413.571.39 t 27,510,727.48 $ 12,262,500.00 -- 52,376.64 * 1,260,014.35 , 2,534.90* 610,738.97 23,f^ ~ 1,898.793.76 10,500,000.00 ___ 22Li2iil t 24,945,094.50 17,099.42 44,594.54 1,978,667.58 3,428.31* 46.383,01 300,000.00 6,167.*5 2,083,316.24 176.149.29 % 2,565,632.98 PNYC00000865 IWTEBRATIORAL SMELTIEQ ASP RgFIKIRO COMPARY SURPLUS ACCOUNT YEAR ENDED DECEMBER 31. 1944 Balance December 31, 1943 Overaccrual of Federal Income tax for the year 1943 Investment In International Building Association vritten off Advances to International Building Association vritten off Net loss* of the year 1944 - page 11 Per Balance Sheet, December 31, 1944 - page 10 413,571.39 30,000.00 , . *1 000 00 110,848.66* 94,300.61* $ 237,422.10 Investment In Rational Tunnel and Minos Company In this report, as in the report on Anaconda Copper Mining Company and consolidated subsidiaries, has been reduced from the amount shown on the books of International Smelting and Refining Company by $136,307.60, the amount of the deficit of Utah-Delavar# Mining Company on dissolution in 1937. V BALANCE SHEET - QECBCggfl *SM ASSETS FIXED ASSETS: Mines and wiring claims, vater rights and lands Buildings and machinery Reserve for depreciation* Patents Investments: Securities of subsidiaries: Wholly owned KoC wholly owned Other investments Indebtedness of subsidiaries - not wholly owned - not current Total page 10 Eliminations* Tooele plant * l, 450,588.91 27,2*2,920,04 19,894,595.62* 1.00 368,919. 7,843,086. 6.191,313. 41,000.00 1,699,483.86 3,226,276.68 295,199.29 DEFERRED CHARGES: Mine development Prepaid expenses Deferred expenses CURRENT ASSETS: Supplies on hand Metals and manufactured products: In process Finished Accounts and notes receivable: Trade, less reserve Affiliates Subsidiaries - not wholly owned - current Cash 2,212,962.88 56,951.83 4,606.14 22,914. 1,597. 1,116,203.02 2,11(3,008.71 3,108,310.60 1,3*6,952.60 21,257.09 30,275.98 522,248.17 2,193.35* 722.16* 395,589. 1,335,807. 913,918. 90,359* 4,507. 19,338. 198,814. OTHER ASSETS: Installment, house and land sales and other accounts receivable Advances to sundry mining companies, including advances on ores, less reserve Advances to Tooele Valley Rsllway Company 21,502.97 216,871.82 80.065.50 21,502161,828. * 21.915,091.50 3,215.51* 1,916,813. LIABILITIES RESERVE for workmen's compensation insurance 1 52,376.61 27,311. CURRENT LIABILITIES: Accounts and wages payable Accrued taxes Indebtedness - to affiliates - to subsidiaries - wholly owned - not vholly owned 1,260,014.35 2,534.90* 610,738.97 23,896*53 6&0.81 2,193.35* 722.16* 311,831. 23,464. 1,037. 680. SET INVESTMENT i.??.^a.io,,. ?.??** _ 361,359. 22,999,922.10 -- >.552,181. - j rsO oo oo o oo u Jt-- a SHEET - UiSCEMBER 31. 194% - BY DEPARTMENTS Patella of total Eliminations* Tooele plant V 568,919.89 i 7,843,086.42 6,494,343.11* ) ) S i ? Copper Canyon lease Miami plant Lead refinery Zinc oxide White lead department department Raritan refine rr 56,419.72 3,103,550.21 3.103,550.21* 130,665-27 1,171.386.25 845,532.40* 1.00 22,073.16 638,140.45 490,578.80* 13,243.90 796,350.58 607,665.52* 409,75113,143,560. 8,239.264. 8,600.00 3 1,146,219*50 ) 22,914.21 5.247.66 + 4,597.82 2 395,589.74 i 1,335,807.54 943,918.54 } 9 2.493.35* 3 722.16* r 90,359.61 4,507.86 19,338.42 198,814.51 67,108.43 13,336.70 1,214.99 1,616.27 102,877-77 609,684.78 114,746.86* 987,859.63 15,076.61 2.530.20 8.32 106,395.46 137,011.50 220,184.76 13,529.28 10,159.11 6,741.68 31,004.16 45,955.91 254,123.33 51,071.99 25,000.00 25,450.23 277,271.59 90,812.46 133.64 22,180, 345.108. 14,548, 1,515,728. 88,535* 11,949, 11,659. 81,816, 7 21,502.97 2 161,828.91 44,850.53 10,195.38 0 0 5,215.51* 4,916,843.33 1,286,577.81 1,668,983-30 952.880.43 576,790.20 595,596.88 7,405.576. 4 27,341.95 5 0* 7 2, *95.35* l 722.16* 3.215.51* 311,834.63 23,464.48 1,037.42 680.81 364,359.29 4,552,484.04 20,616.32 7,859.26 722.16 29.197.74 1,257,380.07 60,204.12 14,107.85 653.48 74.965.45 1,594,017.85 6,445.87 185,257.41 5,973.20 271.78 5,979-33 178.09 180.83 12,428. 663,540. 21,<58. 2,066. 197.948.26 754,932.17 6,157.42 570,632.78 180.83 595,416.05 699.494. 6,706,081. 0 allocated to departments - details p-g- *i 22,180.33 41,000.00 1,699,483.86 3,217,676.68 295.199.29 1,066,7*3.38 2,663.16 S*fi S.'&2 6,7*1.68 jl.OO*.16 45,955.91 254,123.33 51,071.99 25,000.00 25,^50.2? 277,271*59 90,812.46 133.64 345,108.77 14,5*8.98 1,515,728.85 88,535.45 11,9*9.83 11,659.72 81,816.60 11,830.39 42.668.46 11,447.48 4,145.38 189,438.40 jgr.MO.t; 576.790.20 595.596.88 7,*05.576.38 ____________________80.065.50________________ 295,846.83 7,059,776.45 189,438.40 6,4*5.87 5,979.33 180.83 12,428.66 21,*58.83 2,066.99 8,070.84 6,996.47 1.744.99 23,896.53 3,494.37 77,143.51* 609,024.56 6.157.42 SR.632.78 180.83 595,416.05 699,*9*.67 6,706,081.71 8,070.8*________ 32.637.99 287,775.99 7,027,138.46 535.375.42 345,937.02* I PNYC0000Q869 T -- -sup--.--' *<*ty*. mcpm ACCOUST - YBAH BMDKD pgft Total - pae 11 Salea of copper 2 Inc lead silver gold miscellaneous metals zinc oxide white lead electro-sheet copper residue, ores, etc. Premliaa payment on production in excess of quota Tolls $ 2,165,*79-65 41,143.80 2,669,881.91 2,904,034.33 2,537,815.40 327,254.73 1,403,960.89 1,106,178.23 39,993.17 1,833,643.21 279,126.81 6.810.481.77 Sales and tolls 21.918.993.90 Cost of sales Interdependent 21,029,222.04 21.029.222.04 (Income or loss*) Provision for depreciation and loas (or gain#) on dis posal or dismantlement of fixed aesets 889,771.86 669.854.55 Income or loss* from operations 219.917.31 Other Income: Dividends and Interest received - net Miscellaneous Income 72.475.94 9.218.58 81.694.52 (Income or loss*) 301,611.83 Interest on debentures and notes payable to Anaconda Copper Mining Company 395,912.44 Interdepartment elimination Tooele plant Miami plant 53,972.88* 647,516.63* 797.16* 225.48* 853.85* 1,444,223.99 2,793,851.59 1,779,724.31 938,975-92 49,242.74 33,861.63* 1,722,275.18 583,508.02 215,391.06 135,466.61 2.502.656.07* 279,126.81 753.202.72 2.673.618.42 3.239.883.70* 9.760.623.26 3.607.984.11 9,075,914.73 1,754,430.59 3,239.883.70* 791.250.23 1.708.108.88 3.239.883.70* 9.867.164.96 3.462.539.47 106,541.70* 145,444.64 244.572.99 351.114.69* 145.444.64 6,506.81 398.90 6.905.71 344,208.98* 1.728.00 1.728.00 147,172.64 1. 1, 1. Hat lnecme or loss* $ 94,300.61* 344,208.98* 147,172.64 \ c t t u p irgmamuR 31. 1944 - BY p s p a o t w h c t s k*si 3.02 1.06 5.6l Details of total Lead refinerv Zinc oxide denartment White lead department 523,546.95 566,389.10 390,271.48 13,698.84 95,116.68 1,404,186.37 131,530.82 1,107,032.08 Raritan reflaerr 137,747.64 Raritan electro- sheet deportment Investments Items not and allocated to advances - department* - netze 4o page 41 * 342,529.86 873,101.39 278,809.15 39,993.17 3.42 4.11 :3 9.47 4.6* 437.047.30 1.930.953.67 1,768,224.14 JJI.512.87 1.859.737.01 71,216.66 1.630.833.87 1'59845MJ 12.648.64 1.611.402.18 19,431.69 5.449.269.40 1.107.032.08 ,7.081.457.44 39.993.17 457,507.70 6,027,213.62 634.867.99 _ 1.495,09 58,888.69 176,184.33 112,104.70 1.092.375.69 6.02^.708.71^ 58.888.69 176.184.33 112.104.70 14,656.39 1,052,7*8.73 18,895.52* 176,184.33* 112,104.70* 34.992.94 .6 --- 36,223,7? 21.322.66 ...36.358,38 . 2.650.28 _ 1.890.97*-- 21.7frl99^ 722JS1JI3___ 1,5*3,80* Il6.l8,33 ng,.lQ*ia 8.00 '.00 .64 36,223.72 2.64 36,223.72 1,890.97* . .... .07 6.731.68 6.731.75 21,701.99* 729,523.18 65,219.06 360.00 750.00 65.579.06 750.00 21,5*5.80* 110,605.27* 111,354.70* 1,890.97* 395,912.44 21.7ta.99* 7*5,3*3.18 21,5*5.80* 110,605.27* 507,267.14* C-- : [SC WT-. r MINES AND MINING cune. WATER RIGHTS AND LANDS 15 Other changes - Balance add - Balance December 31, see notes Deoember 31, 1943 Additions below 1944 lands for metal producing plants: Tooele plant 3 Miami plant Lead refinery Raritan refinery 353,665.89 56,191.60 130,665.27 409.751.25 353,665.89 56,191.60 130,665.27 409.751.25 950.274.01 950.274.01 Lands for manufacturing plants: Zinc oxide department White lead department Raritan electro-sheet department 22,073.16 13,243.90 4.349.45 22,073.16 13,243.90 4.349.45 Other lands: Tooele Miami 39.666.51 2.654.63 228.12 2.882.75 7.00 6,342.37(1) 7.00 6.342.37 39.666.51 9,004.00 228.12 9.232.12 'iVater rights - Tooele 6.250.00(2) 6,250.00 Total lands and water rights 992.823.27 7.00 12.592.37 1.005.422,64 Mines and mining claims: Investments and advances Salt Lake City office Miami Guild-Adams lease 162,095.68 72,757.33 20,058.54 93.638.19 96.616.58 234,853.01 20,058.54 190.254.75 Total mines and mining claims 275.792.41 169.373.89 - 445.166.30 Per Balance Sheet page 10 3 1,268,815.68 169,380.89 12,592.37 1,450,588.94 NOTE 1 - lands transferred and sold; lands in Tooele, Utali transferred to International Smelting and Refining Company by International Building Association $ 8,493.47 lass. --I* of four lots in Salt lake City aoquired from Diamond Coal and Coke Company In 1943 (see page 38) 151.IQ As above 6,342.37 2 - Water rights transferred to International Smelting and Refining Company by International Building Association: 122J shares Middle Canyon Irrigation Company stock Water rights As above 3 4,310.00 1.940.00 3 6,250.00 pN*C000008 BnTTJVrfQS AMD KACHt mt o y Tooele plant Miami plant Lead refinery Zinc oxide department White lead department Raritan refinery Raritan electro-aheet department Investments and advanoes - Guild-Adanw lease Per Balance Sheet - page 10 Balance December 31, 1943 3 7,855.569.02 3,103,550.21 d Construction 17,949.95 1,153,825.51 . 628,529.17 789,724.32 17,560.74 9,611.28 6,626.26 13,140,610.43 3,656.63 393,328.28 133,806.49 20,619.68 $ 27,198,943.43 76,024.54 NCTE 1 - Hospital building transferred to International Smelting and Refining Company NOTE Z - Depredation of automotive equipment written off NOTE 3 - Equipment sorapped at Guild Adams lease eharged to development. 800000DANd BUILDUPS AND MAUt t t mt o v - IS uw lease Balance December 31, 1943 $ 7,855,569.02 3,103,550.21 1,153,825.51 628,529.17 789,724.32 13,140,610.43 393,328.28 133,806.49 Construction Deduct* sales and d ismantiemanta - details 17,949.95 34,124.01* 17,560.74 9,611.28 6,626.28 3,656.63 20,619.68 148.00* Other changes - add or deduot* 3,691.46^(1) 706.17*(2) 761.21*(3) 3 27,198,943.43 76,024.54 34,272.01* 2,224.08 Balance December 31, 1944 7,843,086.42 3,103,550.21 1,171,386.25 638,140.45 796,350.58 13,143,560.89 393,328.28 153,516.96 27,242,920.04 d to International Smelting and Refining Company by International Building Association. quipment written off. idams lease charged to development. RESERVE FOR PEPEE Tooele plant Miami plant Lead refinery Zinc oxide department White lead department Raritan refinery Raritan electro-sheet department Per Balance Sheet - page 10 Balance December 31, 1943 $ 6,296,661.41 3,103,550.21 810,539.46 469,160.10 580,531.02 7,909,306.99 111.011.01 $ 19,280,760.20 Details qf depreciation on 1944 operations Depreciation applicable to 1944 opera Straiyht-liae method Production net Cost Tooele plant: Lead plant * Sulphide concentrator Oxide concentrator # 617,706.09 Slag plant 512,846.78 . Automotive equip ment 2,681.07 Rate 5* 2056(2) 2556 Quantltv ' 42,851,938 pounds 101,275.525 tons Lead refinery Furniture and fixtures 19,066.17 5% to 20* Zinc oxide department 636,140.45 3.3564?t(3) White lead department: White lead production White lead retreated Raritan refinery Raritan electro-sheet departme nt Per Income Account, year 1944 - page 11 36,955.008 tons 12,604,849 pounds 15.850 pounds 12,620,699 pounds 164,978.650 tons 176,686 pounds NOTE 1 - Depreciation reserve on hospital building transferred to Inten Building Association. 2 - Accrued on monthly balances. 3 - Rate based on remaining life expectancy. 5 V \ 7B FOR DEPRSCIATIOH 17 an co ber 31, 943 6,661.41 3,550.21 0,539.46 9,160.10 0,531.02 9,306.99 1.011.01 0,760.20 Depreciation on 1944 operations details below 214,874.28 * 34,992.94 21,418.70' 27,134.50 329,957.30 2.650.28- V 9UD4 addition to reserve - see note below 957.26(1) Deductions* for sales and dismantlements - pase 39 18,149.84* 631,028.00 957.26 18,149.04* . Balance I(ecember 31. 1944 6,494,343.11 3,103,550.21 845,532.40 490,578.80 607,665.52 8,239,264.29 113,661.29 19,894,595.62 o 1944 ODerations - as above oduotion method tity Bate Amount Depreciation applicable Depreciation to inventory per Income December 31, Account 1943 - paae 11 8 pounds 5.525 tons .131? 22.500? # 56,136.04" 22,787.00" 30,885.30 ' 104,395.67 670.27 .008 tons 89.000^ 32,889.96 2.102.98 214,874.28 34,992.94 21,418.70 14,191.54 14,191.54 70,327.58 22,787.00 30,885.30 104,395.67 670.27 229,065.82 34,992.94 21,418.70 =9 pounds 1>0 pounds 9 pounds '8.650 tons .215? $ 3.00 Ii6 pounds 1.500? 27,134.80 329,957.30 2.650.28 $ 631,028.00 9,223.88 23,415.42 36,358.38 329,957.30 2.650.28 654,443.42 ed to International a*el ting and Befining Company by International PNYC00000676 18 INVESTMENT IN WHOLLY OWNED 3TJB3ID TJLRIBS Shares Far value Net loss (inoorae*) of the year 1944 - see Note 1 Investma nt below New Jersey Storage and Warehouse Company Raritan Terminal and Transportation Company io 3i.ooo.oo $ l.ooo.oo $ e.oo 400 - - 40,000.00 1.633.74* International Building Association (2) 10 1.000.00 1,627.74* - - 84.562,08 Per Balance Sheet, December 31, 1944 page 10 $41,000.00 $82,934.34 Less indebtedness to wholly owned subsidiaries: New Jersey Storage and Warehouse Company 4 694.93 Raritan Terminal and Transportation Company 23.201.60 Per Balance Sheet, Deoember 31, 1944 page 10 23.896,53 Net investment 17,103.47 The above net investment at December 31, 1944 is represented as follows: Assets: Lands Railroad construction $ 20,065.35 Less reserve Ibr depre ciation 20.065.35 7,891.34 - Less liabilities: Taxes accrued 7,891.34 541.67 Net assets 7.349,67 Difference, being accumulated operating deficits to Deoember 31, 1944 # 9,753.80 Net Investment - Deoember 31, 1943 Advances to International Building Association written off Assets of International Building Association transferred to International Smelting and Refining Company Net increase in indebtedness to Raritan Terminal and Transportation Company and New Jersey Storage and Warehouse Company Investment in International Building Association written off $183,556.26 $110,848.68 51,175.80 3,428.31 1,000.00166.452.79 Net investma nt - December 31, 1944 - as above $ 17,103.47 NOTE 1 - Net loss shown above includes intercompany surplus adjustment for overacorual of 1943 Federal lnoome tax of $62.48 far Raritan Terminal and Transportation Company. 2 - Investment in International Building Association was written off at December 31, 1944, that company then being in the process of dissolution. INVESTMENT IN SECURITIES OT SUBSIDIARIES NOT WHOLLY OVrNTO Shares PM XfikSt Mountain City Copper Company Walker Mining Company Other unconsolidated subBidiaries: Comet Coalition Mines Company Eureka Bullion Mining Company Uountain View Mining Company North lily Mining Company Viator Consolidated Mining . Company Yankee Consolidated Mining Company .,442,934 1 73,146.70 * 882,042 882,042.00 760,244 756,000 728,420 475,000 190,071.50 37,800.00 72,842.00 47,500.00 365,390 182,696.00 501,005 50,100.50 Amount Equity in income or loss* Year 1944 996.987.93 88,216.98 340,891.71 187,923.49 68,806;23 66,527.78 18,306,52 20,040.20 583.08* 1,996.57* 46.54* 39.15* 702,405,93 # 85,551.64 t Per Balance Sheet, Deoemhar 31,1944 - page 10 $ 1,899,483,85 a 1 j PNYC00000878 20 INVESTMENT IN AND INDSBTEENESS OF SUBSIDIARIES NOT VmoT.T.Y nwwm Mountain City Copper Company $ Walker Mining Company Comet Coalition Mines Company Eureka Bullion Mining Company Mountain View Mining Company North lily Mining Company Viator Consolidated Mining Company Yankee Consolidated Mining Company IV 0 Indebtedness Dfttfe 19 not ourrent 996,987.93 340,891.71 187,923.49 .68,806.23 66,527.78 18,306.52 20.040.20 200,142.21 27,328.47 67,728.61 Per Balance Sheet, Deoember 31, 1944 - page 10 $ 1,699,483.66 295,199.29 Total Market quotations Deoember 31, 1944 996,987.93 $ 2,925,868.00 200,142.21 44|l02.10 340,891.71 144,446.74 215,251.96 107,730.00 68,806.23 18,210.50 134,256.39 228,000.00 18,306.52 9,134.75 20.040.20 11.272.61 1,994,683.15 $ 3,488,764.70 Indebtedneaa not current Deoember 31, 1943 National Tunnel as Mines Company 0) | 2,013,008.57 Welker Mining Company 200,000.00 Comet Coalition Ulnaa Company 39,745.40 Sureka Bullion Mining Company 21,780.68 Mountain View Mining Company 1,934.20 North Lily-Mining Company Yankee Oonaolidated Mining Company 3,560.26 Sundry indirect subsidiaries _______ 42.31 Per Balanoe Sheet - page 10 $ 2,285,071.43 Deoember 31, 1944 Deorease* or inoreaae 2,018,008.57* 200,142.21 142.21 39,745.40* 27,328.47 5,547.79 1,934.20* 67,728.61 67,728.61 3,560;26*. __________________ !&* 295,199.29 1,989,872.13* NOTE 1. Not a subsidiary at Deoember 31, 1944. 21 OTHER INVESTMENTS Par value of stook. Faoe value of note Shares Amount Market quotations Deoember 31. 1944 Copper Canyon Mining Company stook $ 8,400.00 National Tunnel & Minas Company stock (1) (2) 328,200.00 National Tunnel & Mines Company note (3) Park Utah Consolidate! Mines 1,950,000.00 Company stock 69,800.00 Prince Consolidated Mining Company stook 80,000.00 64 ,000 $ 8 ,600.00 $ 23,,680,.00 328 ,200 779 ,386,32 615,,375,,00 1,950 ,000.00 -- 69 ,800 800 ,000 441 ,157.50 47 ,132.86 174,,500,,00 no,,000,,00 Per Balanoe Sheet Deoemher 31, 1944 - page 10 $ 3,226,276.68 $ 923,555.00 NOTE 1 - Investment in the stook of National Tunnel & Mines Company in this roport, as in the report on Anaoonda Copper Mining Company and consolidated sub sidiaries, has been reduced from the amount shown on the books of International Smelting and Refining Company by $136,307.60, the amount of the deflolt of Utah-Delaware Mining Company on dissolution in 1937. NOTE 2 - Transferred from "Investment in subsidiaries not wholly owned," upon merger of National Tunnel & Mines Company with Utah Metal and Tunnel Company. NOTE 3 - Transferred from "Indebtedness of subsidiaries not wholly owned" upon . merger of National Tunnel & Mines Company with Utah Metal and Tunnel Company. PNYC00000880i T MIHB DEVELOPMENT 22 Balance December 31# 1242 Expenditures year 1944, less Mine proceeds development of ore sales vrltten off Balance December 31, 1944 Copper Canyon lease . details belov $ 1,063,760.88 82,458.62 1,146,219.50 Guild-Adams lease Victoria lease 582,456.72 237,307.93 124,388.78 122,589.95 819,764.65 246,978.73 Glacier Peak project - 9sZa JZ______JSL-fe 0j.mtSL Per Balance Sheet - page 10 $ 1,830,959.71 442,714,12 60,710.95 2,212,962.88 Details of Copper Canyon lease Original development expenditures! Mines, mining claims, etc. Buildings, machinery and equipment Mine development General expense Plant facilities 6,973.29 600,475.63 172,543.74 54,461.79 ,, 3,603.63 Less - royalty received . miscellaneous Income received during development 2,317.13 26.49 838,058.08 2.343.62 Total original development expenditures Inventory of ore on hand at December 31, 1944 835,714.46 45,100.85 Operating loss (exclusive of reimbursement of development expenditures, per contract - .see note): Year 1942 Year 1943 158,986.75 19,263.66 Year 1944 -ttiig-ia As above 265.404.19 1,146,219.50 HOTE - Reimbursement of original development expenditures, per contract, at |1.25 per ton produced would Increase operating losses shown above, as follows: Year 1942 Year 1943 Year 1944 90,844.90 tons 104,252.00 tons 80.117.49 tons * 113,556.13 130,315.00 100,146.86 275,214.39 tons I 344,017.99 tY coooooaei PREPAID ECEENSSS 23 Prepaid insurance Prepaid taxes Sundry Per Balance Sheet - page 10 December 31, 3SL $ 70,042.57 Deoember 31, 1944 55,476.25 7.50 133.32 1,475.50 Deorease lnorease* 15,166.32 7.50 1,292.26* $ 70,333.39 56,951.83 13,881.56 PNYCQ0000882 PSTORRSD STPBT333 34 Tooele plant: Deoember 31. 1943 Deoember 31 ioaa Slag tattling Sundry deferred expenses, principally employees' expense aooounta lead refinery: $ 3,053.97 | 4,597.82 65,99 3,119,94 - - 4,597.82 Deferred expenses in oonneotion with depredation in inventory Per Balance Sheet - page 10 4 3,119.96 8.32 4 4,606.14 MffEAIB A. AMOUNT Copper Zinc Lead Silver Gold Miscellaneous metals Manufactured products: Zinc oxide White lead Electro-sheet copper Prepaid billet cost Prepaid freight Less reserves for freight, refining, etc. Per Balance Sheet - page 10 Total December 31, 19*3 Decrease Total or December 31, increase* 12** T' E i 1,850,821.01 118,083.01 5*1,2*2.69 711,1*5.01 665,51*.82 119,516.78 307,891.55 28,168.05 131,708.27 36,769.72 12,1*0.69 82,868.46 1.5*2,929.46 89,914.96 *09,534.42 674,375.29 653,374.13 36,648.32 280 383 280 106 2 170,509.79 300,222.88 18,805.19 91,0*0.02 9.308.80 8,5*0.35 *8,862.40 6,974.80 *7,533.39 246.32* 161,969.4* 251,360.48 11,830.39 *3,506.63 9,555.12 *,596,210.00 711,211.36 3.884,998.64 1,05* 59*.691.96 181,996.08 776.688.04 no ' *,001,518.04 893,207.44 3,108,310.60 9*3 Decrease in depreciation in cluded in above inven tories - details page 17 Per page 6 23.415.42 * 869,792.02 POUNDS Copper Zinc Lead CENTS PER POUND Copper Zinc Lead 20,059,219 1,503,200 11,249,3*0 2,758,420 3*3,172 2,257,557 17,300,799 1,160,028 8,991.783 2.1 8,! 9.227 7.855 4.811 8.918 7.751 4.555 SILVER - total for all departments - not covered.by.affidavits - produced prior tc - covered by affidavits As above GOLD - total for all departments - as above K3YAL8 tXD MAW3FACT0KBD PRODUCTS - irrHTrmgp - 31, Tooele plant Kim plant (credit*) Details of total at December ^l. iq4 Lead reflnerr Zinc KMfce oxide lead department department Raritan reflnerr Raritan electro-sheet department 39.46 14.96 54.42 C5.29 74.13 38.32 59.44 50.48 50.39 36.63 55.12 280,961.39 383,430.77 280,907.12 106,844.79 2,428.42 28,983.38 18,236.57 47,542.03 7,508.73 210,122.05 2,553.98 98.64 1,054,572.49 94,761.98 220,184.76 38,04 ___ UO.653.95 209.508.84 10.60 943,918.54 114,746.86* 220,184.76 89,914.96 18,594.92 161,969.44 251,360.48 2.238.93 . 7.316.19 254,123.33 277,271.59 254,123.33 277,271.59 1,232,984.69 165,109.55 498,987.31 31,665.92 43,506.63 1,972,254.10 456.525.25 1,515,728.85 11,830.39 11,830.39 11,830.39 3,799 3,028 1,783 2,846,000 8,582,373 287,837 118,377 . 1,160,028 291,033 14,166,962 3.918 751 555 9.872 4.468 10.070 6.343 7.751 6.389 8.703 iced prior to August 15, 19*2 Quag#a 1,797,413.4*- . 70.q>.92 1,867,494.36 frige 3*.75 4 71.0538 36.1112# Amount m above * 624,601.16 49,774.13 % 674,375.29 ' 19,0*9.096 4 34.3536 % 653,374.13 PHYC00000685 ,wr ACCOOHTS ASP NOTES RBCZTVABLS - 1 For tolls and for matala and mantn* factored products: Total December 31, 12*3 Total Deoember 31, 1944 Tooele plant Coppe Canyo leas Inspiration Consolidated Copper Company International Minerals and Metals Company Metals Reserve Company Miami Copper Company Sundry customers For premiums on production lx excess of quota - Metals Reserve Company Sundry debtors * 143,476.00* 199,857.59 * 37,950.01 __ 228,290.76 40,996.10 628,197.90 570,038.73 254.217.02 412.695.01 10.717.60 1,292,131,69 1,223,587.43 10,717.80 181,763.81 75.300.36 49,552.42 36,901.12 12,651 119.645.62 42.740.69 685 Less reserve for doubtful notes and aeoounts 1,549,195.88 1,392,785.47 90,359.61 13,336 44.999.03 45.832.87 Per Balance Sheet - page 10 *1,504,196.83 *1,346,952.60 * 90,359.61 13,336. 1TOS AMD NOTES BECEIYASLE - TRACE. T.3S.q BTWgmrg 26 Total enter SI, 1944 Tooele plant Copper Canyon lease Details of total at Deoember 31. 1944 Miami plant lead Zinc oxide Whits lead refinery department dennrtment. Investments Raritan and refinery advances .99,857.59 $ 199,857.59 40,996.10 70,038.73 =12.695.01 10.717.80 23,587.43 10,717.80 565,394.13 214.207.90 979,459.62 40,996.10 81.165.61 106.551.71 4,644.60 51.99 81,165.61 106,561.71 45,692.69 49,552.42 36,901.12 12,651.30 .19.645.62 42.740.69 685.40 8.400.01 13.529.28 42.842.76 11.447.48 .92,785.47 90,359.61 13,336.70 987,859.63 13,529.28 81,165.61 106,551.71 88,535.45 11,447.48 45.832.87 30.093.62 <-6,952.60 |90,359.61 13,336,70 987,859.63 13,529.28 51,071.99 15.739.25 90,812,46 88,535.45 11,447.48 PNYC00000887 ACCOOKTS wrra AFFILIATES - CnHHBHT 7 Aooounts receivable from: Tbs Amerioan Br\fls Company Anaconda Copper Mining Company Anaoonda Wire and. Cable Company Chile Exploration Company Chile Steamship Company Incorporated Tooele Valley Railway Company Deoember 31, Deoember 31, 1943 1944 $ 111.37 10,159.11 36,566.47 11,48.80 39.87 50.49 493.81 88. 9 ____ 4.507.86 Decrease lnorease* 111.37* 10,159.11* 15,137.67 30.83* 493.81* 4.431.57* 6.688.65 6.750.4467. Bl* Net off aooounts payable to: Anaconda Copper Mining Company Anaoonda Wire and Cable Company Tooele Valley Railway Company 86.39 '354.34 354.34* 86.39 86.39 3.493.35 3.407.06* Ter Balance Sheet - page 10 $ 36,596.34 34,357.09 3,339,35 Aooounts payable to: The American Brass Company Anaconda Copper Mining Oompany Anaoonda Sales Company (current account) Anaoonda Wire and Cable Company Chile Steamship Company Incorporated Montana Hardware Company Tooele Valley Railway Company * 631.33 1,390.69 3,548,379.13 159.57 3,798.00 16.334.13 3,339.01 606,785.55 354.34 3,953.43 3,589,493.84 613,333.33 Net off aooounts receivable as above 86.39 3.493.35 Per Balanoe Sheet - page 10 $ 3,589,406,55 610,738.97 631.33 19,051.68 1,941,593.58 354.34* 159.57 1,155.43* 16.334.13 1,976,360.53 3.407.06* 1,978,667.58 PNYC00000888 ACCOUNTS WI1B SUBSIDIARIES HOT WHOLLY 0WN3D - OTTPPTWP Accounts receivable fron: Mountain City Copper Company Sundry indlreot subsidiaries Net off accounts payable to: Mountain City Copper Company Sundry indireot subsidiaries Per Balance Sheet - page 10 December 31, December 31, 1943 1944 Decrease or laoreaae* $ 50,048.83 49.24 50.098.07 30,975.64 22.50 30.998.14 19,073.19 26.74 19.099.93 714.40 42.31 756.71 1 49,341.36 722.16 722.16 30,275,98 7.76* 42.31 34.55 19,065.38 Accounts payable to: Mountain City Copper Company North Lily Mining Company Sundry indirect subsidiaries $ 714.40 46,906.13 200.00 47,820.53 Net off accounts receivable - as above 756.71 Per Balance Sheet - page 10 # 47,063.82 722.16 680.81 1,402.97 722.16 680,81 7.76* 46,906.13 480.81* 46,417.56 34.55 46,383.01 PNVC00000889 29 Cash In banks: Chase National Bank, New York Continental National Bank and Trust Company of Salt Lake City, Utah First National Bank of Salt lake City, Tooele, Utah Walker Bank and Trust Company, Salt Lake City, Utah Nevada Bank of Comaeroe - Battle Uountain Branch, Battle Mountain, Nevada Valley National Bank, Olobe, Arizona First National Bank in Bast Chioago, Indiana First National Bank of Nevada - Yerington Branch, Yerington, Nevada Firestone Park Trust and Savings Bank, Akron, Ohio First Bank and Trust Company, Perth Amboy, New Jersey Less outstanding drafts on New York office. deposited in banks PettJ cash December 31, December 31, 1943 1944 * 268, 068. 52 19Sa 916 iff* 214, 223. 24 123,,479 .82 49, 977. 98 90, 909 .33 80, 597 .30 644. 34 11, 056. 54 15, 635, 04 725 .91 18, 042 .10 is] 682 .90 5, 500. 00 4, 064 .44 25, 000. 00 25, 000 .00 _za> 876,122--__ 2j 044 ,10 668, 982.,01 629,,462 .13 41. 922, 99 108.J8 |S4 627, 059,,02 520,,993 .59 990. 35 1,,254 .58 Per Balance Sheet - page 10 1 628, 049. 37 522,,248 .17 PNYC00000890 1 INSTALLMENT LAND SALES AND OTHER ACCOUNTS RECEIVABLE IESS RESERVE 30 Transferred Other from changes - Deduct Inter- net payments Balance national addition received Balance December 33, Building (see note 1 year December 31, 1943 Association below) 1944 1944 Tooele: House sales contracts Installment land sale - Tom Buzzianifs contract Cash in closed bank Tooele County State Bank 15,493.99 705.71(1) 2,631.47 13,568.23 6,288,00 353.26 7,934.74 107.33 107.33* 8,39 5.33 15,493.99 705.71 3,092.06 21,502.97 Less reserve for doubtful accounts 107.33 Per Balance Sheet - page 10 8,288.00 15,493.99 705.71 107.33 __ 2,984.73 21,502.97 NOTE (1) Details of other changes: Charges (debits) : Taxes Interest Fire insurance Rater, sewer and irrigation assessments * 403.59 240.50 136.50 46.11 Deductions (credits): Discounts allowed in full payment of contracts Transferred to sundry debtors (page 26) 57.64 63.35 Net - as above 826.70 120.99 3 705.71 PNYCCi0000891 -NOTE 1 Transferred from o X a e o ifio a tlo n "Good* to " oood but eio** CAPITAL STOCK Isauad and outstanding - per Balance Sheet page 10 {details below) 32 Shares Amount 183,500 * 12,282,500.00 Issued by International Smelting Date Issued Company to Anaoonda Copper Minina Conroany for: Par ralue May 27, 1914 Properties of International Smelting and Refining Company $ 100.00 Nov. 30, 1915 Cash 100.00 Total stook issued by International Smelting Company 100.00 95,000 9,500,000.00 25.000 8.500.000.00 120,000 # 18,000,000.00 Issued by International Etaeltlng and Refining Company to Anaoonda Copper Mining Comoany for: Deo. 21, 1934 120,000 shares of International Smelting Company stook Deo. 21, 1934 (Together with $8,000,000 principal amount 1.5-year s debentures) Properties of International Lead Refining Company and Raritan Copper Works Oot. 1, 1936 Properties of Anaoonda Lead Products Company Issued and outstanding - as abore Unissued 75.00 75.00 75.00 75.00 75.00 120,000 1 9,000,000.00 30,000 2,250,000.00 13.500 1.012.500.00 163,500 12,262,500.00 36.600 2.737.500.00 800,000 $ 15,000,000.00 PNYC00000B93 33 RESERVE TOR WORKMEN'S COMPENSATION INSURANCE Tooele plant Lead refinery Zino oxide department White lead department Raritan refinery Per Balanoe Sheet page 10 Balance December 31, 19*3 Additions details below $ 31,305.05 7,308.90 7,938.07 1,592.26 9,899.81 31,509.27 4,253.15 1,567.92 1,290.91 14,786.63 # 58,544.09 53,407.88 Deductions - compensation paid, medical and hospital Balanoe expenses, December 31, eta. 19** 35,472.37 5,616.18 3,526.66 2,702.34 12,257.78 27,341.95 6,445.87 5,979.33 180.83 12,428.66 39,575.33 52,376.64 Details of additions - year 1944 Tooele plant Lead refinery Zinc oxide department White lead department Raritan refinery Total as above $ 31,509.27 4,253.15 1,567.92 1,290,91 14,786.63 | 53,407.88 Charged cost 22,066.80 4,253.15 1.567.92 1j 290.91 14,786.63 43,967.41 Pay roll deductions 9,440.47 9,440.47 a c c o u n t s AND WAGES PAYABU. 34 Ore purchases - Tooale plant Reserve for unearned tolls - Raritan refinery Wages payable - details below Payroll deductions for employees' war bond purchases Employees' deposits - Tooele plant Reserve for repairs - Raritan eleotro- sheet department - details below Sundry aooounts payable Per Balanoe Sheet - page 10 Details of Waaes payable Tooele plant Copper Canyon lease Miami plant Lead refinery Raritan refinery Investments and advances Ae above Deoember 31, 1943 # 149,196.70 387,776.62 105,346.27 25,352.75 12,917.67 6,587.90 589,935.86 # 1,277,113.77 December 31, 1944 142,578.31 506,625.34 110,882,86 30,125.99 7,104.43 8,070.84 454,626.58 1,260,014.35 $ 22,113.91 6,706.92 19,346.14 20,909.35 35,277.76 990.19 $ 105,346.27 24,403.61 12,900.24 17,157.93 17,114.64 37,799.58 1,506,86 110,882.86 Details of Reserve for repairs - Raritan aleotro-sheet department Balanoe Additions - Deductions - Balanoe Deoember 31, charged oper- expended for Deoember 31 1943 ating expense . repairs 1944 Reserve for lead anode renewals f 2,857.32 Reserve for drum surface renewals 3,730,58 189.00 2,738.53 47.24 1,397.35 2,999.08 5,071.76 As above $ 6,587.90 2,927.53 1,444.59 8,070.84 PNYC00000895 NOT* (1) - D e b it r * p r M n t* overpayment o f 1 M 1 Federal inoooe 3 I *i 7, 1 O' ao O o o o o > a2. DIVIDEND AMD INTEREST RECEIVED - SET 37 Interest received - net: Year 1943 Year 1944 On advanoes: ' To wholly owned subsidiaries: International Building Association To subsidiaries not wholly * 3,707.24 $ 3,309.51 owned: Comet Coalition Mines Company $ 2,155.62 Eureka Bullion Mining $ 2,418.67 Company Yankee Consolidated Mining 1,365.65 1,372.35 Company To other companies partly 152.04 197.29 owned: National Tunnel * Mines Company Prince Consolidated 44,365.37 48,751.09 Mining Company 201.23 48,239.91 52,739.40 On other aooounts: Tooele Valley Railway Company Snyder Mines, Inc. Miscellaneous - net 2,705.79 7,841.54 -3,1*?.11 12,690.44 2,190.15 8,214.89 JLfltt.Ml 9,447.03 Dividends received: Park Utah Consolidated Mines Company 64,637.59 65,495.94 6,980.00 Per Income Acooumt - page 11 0 64,637.59 5 72,475.94 PNYC0Q000898 tfTHr.gTT^waoTTR TNflfara 38 Tooele Pleat: Profit on sale of land, (details below) 19 A.P.43 -- Year 1944 1 398,90 Miami Plant: Renta $ 1,693.00 1,738.00 Raritan Refinery: Reoord storage rents 0 1,350.00 Copper storage rants 3,723.93 Discount on prepayment of tares 3,715.04 Loading and unloading lighters - net 1,008.85 Boring out Amerioan Brass Company oopper moulds - net 370.89 $ 1,350.00 4,594.94 9,068.71 786.74 , -, - 6.731.68 Investments and advanoes: Outside property income, Tooele net Ophir Hill rents 412.00 1<M?Q 432.00 360,00 -- 360.00 Per Income Account - page 11 11,183.71 * 9,318.58 Details of profit on sale of land Pour lots in Clearmont Subdivision, Salt Lake City: Sales prioe Cost (see Note 1, page 15) Profit, as above I 550,00 151.10 398.90 NST LOSS ON DISPOSAL OH DXSMAKTmogfT Of mm AS3BT3 Cost of buildings and maobinery sold Accumulated or dismantled depreciation r. jage .3,0, - page 17 Deduot salvage lass dis mantling *pense Loss Tooele plant | 34,124.01 18,149.84 487.00 15,307.17 Zino Oxide department {Akron plant salvage) 96.04 98.04* Investments and advanoes: Suild-Adams lease 148.00 148.00 * 34,272,01 18,149.84 711.04 Par Income Aocount, year 1944 - page 11 # 15,411.13 <y lijfASBgijtfa ffKJ IAfiCE SHEET ITEMS Total - pages 13 and 14 Wholly owned subsidiaries Mountain City Copper Company FIXED ASSETS: Ninas and mining claims and lands $ 445.166.30 Buildings and machinery Investments: 153,516.96 Securities of subsidiaries: Wholly aimed 41,000.00 Not vfaolly owned 1,699,483.86 Other investments 3,217,676.68 Indebtedness of subsidiaries not wholly owned - not current 295,199-29 41,000.00 996,987.93 DEFERRED CHARGES: Mine development Prepaid expenses 1,066,743.38 2,663.16 CURRENT ASSETS: Supplies on hand Accounts and notes receivable trade, less reserve Cash 42,668.46 11,447.48 4,145.38 OTHER ASSETS: Advances to Tooele Valley Railway Company 80,065.50 7,059.776.45 41.000.00 996,987.93 CTBBBNT LIABILITIES: Accounts and wages payable Accrued taxes Indebtedness to subsidiaries wholly owned 6,996.47 1,744.99 23.896.53 23,896.53 avBsaaag 3N.637.S9 t 7,oej,138.46 23.896.53 17.103.47 996,987.93 Walker Mining Company 200,142.21 200.142.21 200,142.21 Other subaldiarl not wholl owned 702,495.9; 95,057.01 797,553.01 797,553.01 IMS ACCOUNT ITEMS -oat of sales $ Loss from operations Other lmeeme: Dividend and Interest received net KiscsllaaeoQs Income Net loss (income*) $ 176.18N.33 176,184.33 65,219.06 360.00 65,579.06 110,605,27 3,309.51 3,309.51 3,309.51* 51,982.06 51.982.06 3,988.31 3.988.31 47,993.75 wr iiariea dxjlly led Rational Tunnel & Mines Ccmp&ny Park-Utah Prince Consolidated Consolidated Mines Mining ' Company Company Victoria lease operations Oulld-Adams lease operations Tooele Valley Rallvay Company Mines department outside exploration etc. 190,254.75 153,516.96 254,911.55 >95.93 >57.08 2,729,386.32 441,157.50 47,132.86 6,980.00 246,978.73 788.74 18,100.90 8.79 80.94 819,764.65 1,874.42 23,847.92 4,458.69 4,064.44 719.64 53*01 2,729,386.32 448,137.50 47.132.86 265.958.10 .. PuiIJO?-?u 1^197,781.83 80.065.50 -'8551631.19 4,408.74 339^84- 2.513.73 1,415.15 3.01 2,729,386.32 448,137-50 47,132.86 4,818.58 861,145.52 3,928.88 1,193,852.95 80,065.50 255,631.19 ^2.06 82.00 88.31 8&.31 93.75 48,751.09 48.751.09 48,751.09* 6,980.00 6,980.00 6,980.00* 124,202.27 124.202.27 2,190.15 360.00 2.190.15 360.00 2,190.15* 123,842.27 P N vrnnnnnan? OBTAIia 01' SUMS SOT ALLOCATED TO DHPAHT.mrra BALANCE smw ITEMS Assets: Cash - Chase National Bank, New York Liabilities: Accounts payable: Chadbourne, Wallace, Parke and Whiteside Sundry (debit*) Taxes accrued: Federal income tax (debit*) Federal oapital stook tax New York state franchise tax Employer's portion of sooial security taxes on New York employees Indebtedness to affiliates: Anaoonda Copper Mining Company: Interest adarued, etc. Anaoonda Sales Company: Current aooount Total liabilities $ 3,500.00 5.63* 79,977.87* 2,500.00 300.00 22aZ 2,239.01 606.785.55 3,494,37 77,143.61* 609.024.56 189,498.4C 556.375.42 Excess of liabilities over assets - page 13 I 346,937.02 INCOME ACCOUNT IT31S Cost of sales: Administrative expenses. New York offloe Capital stook tax fiaployer's portion of social security taxes on New York employees Sundry taxes Other Income: Interest reoelved on United States Treasury tax notes (credit*) loss, per pages 3 and 14 Interest on debentures and notes payable to Anaconda Copper Mining Company Net loss--page 14 I 106,991.-13 3,730.00 1,081.57 302.00 112,104.70 750.0011 111,354.70 395,912,44 # 507,267.14 i Page a l p h a b e t ic a l proa 34 Accounts and waga3 payable 26 Accounts reoaivabla - trade, less reserve 30 - Installment, etc. 27 Aooounts with affiliates 28 Aooounts with subsidiaries not wholly owned 35 Accrued taxes 20 Advances to subsidiaries - not wholly owned 18 - wholly owned 31 Advances to sundry mining companies 27 Affiliates, accounts with B 13 Balanoe Sheet - by departments is - comparative 16 Buildings and machinery 32 ~ Capital Stock 29 Cash 36 Debentures and notes payable to Anaconda Copper Mining Company24 Deferred expenses 17 Depreciation, provision for 17 Depreciation, reserve for 44 Details of - investments and advanoes 41 - items cot allocated to departments 22 Development, mine 39 Disposal or dismantlement of fixed assets, net loss on 37 Dividend and interest received 3 24 23 F 3* ~ 5-7 Expenses, deferred Expenses, prepaid Fixed assets, net loss on disposal or dismantlement of Funds reoelved and disbursed 0 3 ~ . Gross profit on plant operations I 14 ~ 11 27 27 29 18 28 3$ 33 37 25 26,28 l4 19 id 21 41 Income Account - by departments - comparative Indebtedness of affiliates Indebtedness to affiliates Indebtedness of subsidiaries not wholly owned - not current Indebtedness to subsidiaries - wholly owned - not wholly owned Installment land sales and other aooounts reoeivable Insuranoe, reserve for workmen's oonpensatlon Interest and dividend reoelved Inventories, finished Investment in end indebtedness of subsidiaries - not wholly owne4 wholly owned Investment in securities of subsidiaries - not wholly owned Investments and advanoes, details of Investments, other Items not ailooated to departments* details sf PNYC00000904 43 Page 15 39 15 25 23 15 38 39 36 i. M S lands, mines and mining olaims, water rights and Loss or gain on disposal or dismantlement of fixed assets Machinery, buildings and Metals and manufactured produots - finished Mine development Mines and mining claims, water rights and lands I'isoellaneous lnoomo Net loss on disposal or dismantlement of fixed assets Notes payable to Anaoonda Copper Mining Company 3,14 30 21 33 3 38 17 33 14 26 18 88 80 18 18 P ~ E ~ S Operations by departments - comparative `>ther accounts reoelvable, installment land sales and 'ther investments Prepaid expenses Profit on plant operations Profit on sale of land, details of Reserve for - depreciation - workmen's compensation insurance Sales and earnings, by departments Securities - of subsidiaries - not wholly owned - wholly owned Subsidiaries not wholly owned, accounts with Subsidiaries, investment in and indebtedness of - not wholly owned Subsidiaries, investment in - wholly owned Surplus account 35 Taxes aoarusd S 15 Water rights 8 Working capital 33 Workmen's compensation insurance, reserve for