Document 6bn2Mm6m0NGb6bXgeDnMqVZQR

Saint Joseph Lead Company Annual Report --1922 America's Corporate Foundation; 1922; ProQuest Historical Annual Reports Pg. 1 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. PRESIDENT'S ANNUAL REPORT TO THE STOCKHOLDERS OF THE Si . Joseph Lead Company FISCAL YEAR ENDING DECEMBER 31, 1922 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Presidents Annual Report to the Stockholders OF THE ST. JOSEPH LEAD COMPANY FISCAL YEAR ENDING DECEMBER 31, 1922 In the year 1922 dividends to the amount of $1,936,715.25 in cash have been paid to stockholders and to minority stockholders in subsidiary companies $70,491. There was an earned surplus of $3,994,325.09 after all charges for deprecia tion, depletion and reserve for Federal Taxes resulting from the operation for the fiscal year. Your mines produced 2,437,459 tons of ore. Your mills produced 146,431 tons of concentrates. Your smelter produced 105,028 tons of pig lead. The sales of pig lead for the year amounted to 121,655 tons. (This does not include sales of lead purchased from the Bunker Hill & Sullivan Mining & Concentrating Company.) ' FINANCIAL During the year your company invested reserve funds in Liberty Bonds, certificates of indebtedness and other short time securities. Its holdings of such securities on December 31, 1922, weie as follows: $1,800,000 Third U. S. Liberty Loan 500,000 Fifth U. S. Victory Loan 4%*/o 1,575,000 U. S. Treasury Certificates 500,000 State of Missouri Bonds 500.000 Municipal Bonds 50,000 New York Central Bonds 200.000 Bank Acceptances $5,125,000 3 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Federal Income and Excess Profits Taxes amounting to $542,785.49 were paid in 1922 on account of adjustments for years 1916 to 1920 inclusive. Final audit and approval by the Bureau of Internal Revenue of this payment has not yet been received. BUNKER HILL CONTRACT In June last your company contracted to purchase a part of the pig lead output of the Bunker Hill Smelter. The Bunker Hill Brand being suitable for various purposes for which St. Joe lead is not desirable, your company can now more efficiently meet the requirements of its customers. BALANCE SHEETS In addition to the " Consolidated General Balance Sheet, St. Joseph Lead Company and Subsidiary Companies," this year's report contains the balance sheet of the St. Joseph Lead Company, in which the stocks of the subsidiary companies owned by the parent company are carried as investments, as they appear on the books of the St. Joseph Lead Company, instead of the assets and liabilities being merged as they are in the consolidated balance sheet. While the consolidated balance sheet is a truer picture of the property as a whole, the parent company's balance sheet may be of some interest. PROSPECTING AND EXPLORATION From time to time your President has called attention to the fact that part of your company's cash receipts represent sale of capital assets (the ore reserves of the company). This fact has been taken into account on the company's books and a reserve established which has been added to year by year ratably with the ore mined. This reserve, if your company is to live beyond the exhaustion of its present holdings, must be invested in new mining property. With this thought in mind your Trustees authorized the formation of an Explora tion Department, which has devoted itself fo the search for new mining property outside the county where your company's main properties are located. During the past two years an extensive drilling campaign has been carried on by this department in the Tri-State district with most promising results. , 4 . Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. In the vicinity of its own mines your company has continued to option and acquire additional reserves. The drilling on its own properties in the past several years has continued to indicate a longer life than originally estimated. This longer life is, however, partly due to improvements in mining and metal lurgical methods that make available lower grade ore than could have been handled profitably ten years ago. `J> GENERAL The company's business for the year 1922 justified the hopeful prediction in your President's last report. The sales of pig lead were nearly double those made in 1921, all the current production being sold in addition to the stocks accumulated in the previous year. The prices realized were substantially higher than in 1921. Wages were raised in June and again in November. Stockholders should realize that profits are based on sales and not on pro duction; therefore, a part of the 1922 profits were made on metal produced in the year 1921. i , Clinton H. Crane, President. 5 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.  ST. JOSE! AND SUBSIDll CONSOLIDATED GENERAL BAlJ Capital Assets : Ore reserves and mineral rights Less reserve for depiction........ . ASSETS .............. $22,060,696.29 .............. 9,600,117.35 $12,460,578.94 Buildings and equipment at mines and smelter. $ 8,119,938 86 Less reserve for depreciation.............. .............. 1,397,390 71 6,722,548.15 Real estate................................................ ............................................ Farm lands, buildings, and equipment.............. $ 565,476.74 Less reserve for depreciation............................ 23,661.60 95,749.78 541,815.14 Railroad property and equipment.................. .. $ 4,211,647.98 Less reserve for depreciation.......................... 532,856 78 3,678,791.20 $23,499,483.21 Investment--Missouri--Illinois Railroad Company............................................ 362,172.99 Sinking Fund and Reserve Fund Assets--Cash and Accrued Interest........ 23,944.01 Current Assets: Cash ............................................................................... ........................ $ 1,078,032.83 Cash in transit............................................................................... .. 179,946.00 Marketable securities (par value, $5,125,000.00; market value, $5,148,016.38)......................................... .. ...................... 5,162,770.40 Accounts and notes receivable.......... .................... ...................... 1,664,364.31 Lead on hand and in process........ ................. ............................ 390,867,59 Materials and supplies...........................l-------- ............................ 1,448,616.03 Store accounts (net).............................................. ........................... 45,036 87 9,969,634.03 Deferred Deiut Items : ' By-product (matte)........................................................... ............... Real estate sold on long term contracts....................................... Advances to Bonne Terre Hospital Association....................... Insurance premiums--Unexpircd portion................................... Taxes paid in advance...................................................................... Mine La Mottc prospecting............................ .................. Mine shovel development.................................. .................. Miscellaneous ....................................................... ................... $ 89,616.72 54,566.54 54,000.00 41,876.46 13,382.60 33,088.18 21,011.59 21,475.47 329,017.56 CERTIFICATE OF AUDIT We Imve audited the books and accounts of the St. Joseph Lend Company and its subsidiary companies for the year ended December 31, 1022, and We hereby certify that, In our opinion, tbe above consolidated general balance sheet correctly seta forth the financial condition of the companies at that date. HASKINS & SELLS. New York, February 20, 1923. Total .................................:.a........ ......................................................... $34,184,251.80 6 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. \D COMPANY mpanies ET, DECEMBER 31, 1922 Capital Stock: LIABILITIES St. Joseph Lead Company: Authorized--2000,000 shares of $10 00 each, of which there have been issued 1,605,744.6 shares.......... ........ $16,057,446.00 Less held in treasury, 56,332'shards,....:........................ 563,320.00 $15,494,126.00 Subsidiary companies, minority stock held by public........................................... Funded Debt : Mississippi River & Bonne Terre Railway first mortgage, 5% bonds, due 1931............................................... ..................... $ 2,500,000.00 Less: Held in sinking fund.......................... ... $ 612,000.00 Held in treasury.,.,.................................. 528,000.00 1,140,000.00 236,150.00 1,360,000.00 Current Liabilities: Accounts and wages payable....................... ................................... $ 1,047,744.90 Traffic and carservice balances................................................ 74,254.05 Dividend declared December 11, 1922, payable March 20, 1923 .............................................................................................. 774,687.50 Accrued taxes............................................................................................. 53,605.90 Accrued interest................................................................................. 31,32813 1,981,620 48 Deferred Credit Items................................................................... ...................................... Reserves .* Profit on lease agreements..................................... ..................... Premium on bonds to be purchased for sinking fund.......... Contingencies (includes provision for Federal taxes).......... $ 23,223.19 23,726.32 1,305,244.41 129,562.78 1,352,193.92 Surplus: Balance, March 1, 1913..................................................................... $ 3,925,000.00 Less amortization distributions therefrom............................... 3,523,665.00 Remainder ................................. $ 401,335.00 Undistributed profits and increase due to revaluation of properties, March 1, 1913, to December 31, 1921............ .. 12,016,832.28 Balance, January 1, 1922..................................... ............................. $12,418,167.28 Net income for the year ended December 31, 1922, after providing for depreciation of plant and equipment............ ........................... $ 5,972,333.33 . Less: .... Provision for depletion of ore reserves and mineral rights ............ ................. Provision for Federal taxes (company's estimate)........ Miscellaneous charges.......... $ 1,378,394.49 500,000.00 99,613.75 1,978,008.24 . Profit & loss surplus for the year ended December 31, 1922. 3,994,325.09 Total ............................................................................. $16,412,492.37 Less: Dividends declared and paid in 1922............. $ 2,007,206.25 Dividend declared December 11, 1922, pay able March 20, 1923.................... .. 774,687.50 2,781,893.75 13,630,59862 Total ........................................................................................................ $34,184,251.80 7 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEH GENERAL BALANCE SM Capitai. Assets : ASSETS Ore reserves and mineral rights...................... $10,183,987.88 Less reserve for depletion................................... 5,010,483.94 $ 5,173,503.94 Buildings and equipment at mines and smelter. $ 5,459,331.86 Less reserve for depreciation, .......... ............. 898,148.85 .77777777777777Real estate .......... .................................. 4,561,183.01 55,734.28 $ 9,790,421.23 Securities Owned : Affiliated companies................ ........................................................ $ 8,460,063 57 Other.......................................... ..I......................................... 239,969 24 8,700,03281 Sinking Fund and Reserve Fund Assets--Cash and Accrued Interest........ 23,944 01 Current Assets: Cash ....................................................................................................... $ 715,219.27 Cash in transit............................ *................................................... Marketable securities (par value $2,275,000-00; market value $2,279,423.88)................ Accounts and notes receivable...................... Due from affiliated companies......................................................... Lead on hand and in process...................... ................................. Material and supplies....................................................................... 179,946.00 2,298,275.84 1,549,169.87 19,001.73 300,819.60 884,715.11 5,947,147.42 Deterred Debit Items : By-product (matte).............................. .. Real estate sold on long term contracts........ -- Advances to Bonne Terre Hospital Association Insurance premiums--Uncxpired portion.......... Taxes paid in advance........... ............................. Mine La Motte prospecting.________ _ Mine shovel development .................................... Miscellaneous................................ ........................ . . $ 89,61672 53,332.57 36,000.00 24,219.65 10,163.02 33,088.18 21,011.59 16,852.40 284,284.13 CERTIFICATE OF AUDIT We have audited the books and accounts of the St Joseph Lead Company for the year ended December 31, 1922, ana We hereby certify that, in our opinion, the above general bal ance sheet correctly sets forth the financial condition of the company at that date. HASKINS & SELLS. New York, February 20, 1923. Total......................................................................................................... $24,745,829.60 8 , fj * ! 1 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. IAD COMPANY fc EMBER b , ' 31, 192 2 Capital Stock : LIABILITIES Authorized--2,000,000 shares of $10.00 each, of which there have been issued 1,605,744.6 shares..................................... $16,057,446.00 Less held in treasury, 56,332 shares........ .................................... 563,320.00 $15,494,126.00 Notes Payable: Mississippi River & Bonne Terre Railway................................. $ 2,500,000.00 Less bonds of Mississippi River & Bonne Terre Railway: Held in sinking fund., *, $ 612,000.00 Held in treasury./................ /................. 528,000.00 1,140,000 00 1,360,000.00 Current Liabilities *. Accounts and wages payable........................................................... $ Due to Bunker Hill & Sullivan Mining & Concentrating Company for lead purchased................................................. Dividend declared December 11, 1922, payable March 20, 1923 .............................................................................................. Taxes accrued.................... Interest accrued....................................... Due to affiliated companies.................. 393,165.00 526,242.33 774,687.50 50,323.90 31,328.13 75,693.47 1,853,440.33 Reserves : Profit on lease agreements............................................................ $ 23,223.19 Premium on bonds to be purchased for sinking fund............ 23,726.32 Contingencies (includes provision for Federal taxes).......... 875,661.71 922,611.22 Surplus: ' Profit & loss surplus, January 1, 1922........... Amortization distributions received................ $ 5,197,471.80 2,853,045.00 Total ............................ ............. .. Less amortization distributions paid........ .. $ 8,050,516.80 3,523,665.00 Net surplus, January 1, 1922........ ................................................. $ 4,526,851.80 Net income for the year ended ended De cember `31, 1922, after providing for depreciation of plant and equipment.... $ 4,237,411.43 Add miscellaneous profit & loss credits...... 40,837.33 Deduct: Total ................................................. Provision for depletion of ore reserves and mineral rights .................................... $ 746,306.30 Provision for Federal taxes. 200,000.00 Miscellaneous charges,........ 31,739.46 $ 4,278,248.76 978,045.76 3,300,203.00 Total ............................................................................. $ 7,827,05480 Less: ^ Dividends declared and paid in 1922.......... $ 1,936,715.25 Dividend declared December 11, 1922, pay able March 20, 1923 ....................................... 774,687.50 2,711,402.75 5,115,652.05 Total ....,................... ......................................................................... $24,745,829.60 9 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.