Document 7RJzKb0B7JkkbMyyxVgdJVJng

oo CO 0> To the Stockholders of National Lead Company: The following is a Consolidated Balance Sheet of National Lead Company as of June 30, 1938 and a Statement of Consolidated Income and Surplus for the first six months of 1938. The consolidation includes only domestic subsidiaries in which National Lead Company owns all of the outstanding capital stock. For eign corporations owned partly or wholly and domestic corporations not fully owned are included in the item of "Investments." Dividends received from such companies, as well as interest on bonds and miscellaneous toms not directly connected with current operations, are included in the item of "Other Income." Dividends on National Lead Company Preferred and Common Stocks owned by the Company itself are not included in this statement, either as disbursements or as income. H. T. Wa r s h o w , Vice President and Comptroller. Current Assets: ASSETS Cash .............................................................................................................................................. U. S. Government Securities (Market Value $1,225,31220)................. Other Marketable Securities, Domestic (Market Value $ 863,19528)................. Other Marketable Securities, Foreign (Market Value $1,799,931.64)................. $ 608,012.68 1,536.353.08 $ 4,166,744.95 1,14728829 2,144265.76 Accounts and Notes Receivable............................................................................................ Less Bad Debt Reserve....................................................................................................... Notes Receivable from Employees...................................................................................... Inventories* ................... ............................................................................................................ Total Current Assets........................................................................................... Investments: Securities of Affiliated Companies (at bode value in no case exceeding cost) Domestic ................................................................................................................. Foreign ................................................................................................................................... National head Company Capital Stock (29,883 shares Preferred A; 25,815 shares Preferred B; 3,210 shares Common) (Market Value $8^12,14125)... MlsegUanprais Investments (not listed on any exchange)........................................... Domestic ............................................................................................................................... Foreign ................................................................................................................................... Total Investments .................................................................. -......................... Fixed Assets: Plant Properties and Equipment---Gross Property........................................................ Less: Depreciation and Depletion Reserve........................................................................ $826220021 729,839.02 $ 5206,918.09 9.063.186.01 $ 362,60523 127.713.55 723226U9 219,725.99 20288249.12 $14270,104.10 6,950229.77 49021828 $76,15829126 28,98825926 Deferred Charges ....................................................................................................................... $ 35,59923520 21210,652.75 47,169,43220 38223529 $104.962255.64 LIABILITIES Current Liabilities: Accounts Payable, audited but not due............................................................. Tax Reserve ............................................................................................................ Dividend Payable August 1, 1938 on Class B Preferred Stock................ Total Current liabilities............................................................... .. Reserves: Fire Insurance Reserve........................... Employers Liability Reserve.................. Pension Reserve..................................... . Foreign Exchange and Miscellaneous, $ 2,90927021 1,933,400.95 116,193.00 $ 4,958,96426 $4297284.02 426,66420 3,423,680.46 166.542.67 8214,171.45 Capital Stock and Surplus: Capital Stodc: Authorized Preferred Class A--Par Value $100............................................. $ 25,000,000.00 Preferred Class B--Par Value $100............................................. 25,000,000.00 Common --Par Value $ 10................................................ 50,000,000.00 $100,000,000.00 Earned Surplus.................................................. Capital Surplus.................................................. Total Capital Stodc and Surplus Issued $24267,600.00 10227200.00 30.983.100.00 $65,678,400.00 $25290,001X73 12021920 91.189.119.93 $104.962255.64 DETAILS OF PLANT INVESTMENT June 30,1938 Dec. 31,1937 Gross Property ............................................................................................................................. $76,158291.86 $74,063,169.69 $ hess Depredation and Depletion Reserve.................................................. 28,988,85926 2821224220 Increase 2,095,122.17 776,616.76 Net Property........................................................................................................ $47,169,432.50 $45,850,927.09 $ 1218.505,41 * Sec Page 4. 0000-NLI-000018208 STATEMENT OF CONSOLIDATED INCOME AND SURPLUS Income Account ' Six Months Ended Jane 30th 1938 - 1937 ten rxi 7M Cost of Goods Sold, Taxes, Depredation and Other Expenses................................... 29.075,794.96 47,103388.42 Net Operating Profit.............................................................................................. .. $ 1,466,757.67 Other Income 338,107.10 Total Net Income............. ....................................................................................................... 1,804,864.77 Dividends on Preferred Stock Outstanding:--Class A...............................$74827530 Class B....:........... 232386.00 980,661.50 Amount Earned on Common Stock................... ............................................... .. 82420327 $748275.50 232386.00 $3,625,173.16 1.567,09326 $ 5,192266.42 980.661.50 $ 4211,604.92 Amount Earned per Share of Commoa Stock Outstanding........................................... $ 266 $ 1361 . . Surplus Account Earned Surplus--At beginning of year......................... ,......................../........................... Add: Net Income for six months...................................................................................... ... Surras Adjustment**..................................................................................................... - 1938 $25,220,172.46 1,804,86477 119.400.00 1937 $23,84$094A3 5,192266.42 $27,144,43723 Deduct Dividends: Preferred Stock Outstanding--Class A....................... $748,275.50 Class B..................... .. 232.386.00 980,66130 Common Stock Outstanding....................... .................................. 773,775.00 Total Dividends Paid............................................................................ $ 1754,436150 Earned Surplus at June 30th................. ................................................................................... $25,390,00073 Capital Surplus at June 30th..................................................................................................... 120,71920 Total Consolidated Surplus at Jane 30th.......................................................................... $25,510719.93 $748275.50 232386.00 $29,034,360,45 980,661.50 773,775.00 $ 1,754,43630 $27279,923.95 120,71920 $27,400343.15 On December 23rd, 1937. Patino Uines ft Enterprises, Coos.. Inc., paid a dividend of $2.00 per sbsre on its common stack of winch $238,800.00 was received hr Nations! Lead Company. We were advised by P. M. ft E. C. Zn&, that one-half of this dividend, equivalent to $119,400.00, was to be considered as a return of capital--the other half as income for the year. It was treated in this way on the books of National Lead Company. In 1938, the Company was advised fay P. M. ft E. C. Ine* that the total dividend should he included u income. Since tills is 1937 income, the adjustment is made directly to Surplus. ... The present normal stocks of the Company are as follows: Lead...................... .....................49,587# short tons valued at $0.03 per pound. Tin ............ ............................ . 1,124# short tone rained at .21 per pound. Antimony ............ ................. 259 short tons valued at .05 per pound. Stocks in excess of normals are valued at cost or market, whichever is lower. 0000-NU-00001S209