Document DvGE5o8MKog7epY1bV8yGYq1a

Saint Joseph Lead Company Annual Report -- 1927 America's Corporate Foundation; 1927; ProQuest Historical Annual Reports Pg- 1 PRESIDENTS ANNUAL REPORT TO THE STOCKHOLDERS OF THE St Joseph Lead Company FISCAL YEAR ENDING DECEMBER 31, 1927 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. PRESIDENT'S ANNUAL REPORT TO THE STOCKHOLDERS OF THE St. J oseph Lead Company FISCAL YEAR ENDING DECEMBER 31, 1927 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. PRESIDENT'S ANNUAL REPORT TO THE STOCKHOLDERS OF THi: ST. JOSEPH LEAD COMPANY FISCAL YEAR ENDING DECEMBER 31* 1927 In the year 1927 cash dividends to the amount of $5,851,305.00 have been paid to stockholders, and to minority stockholders in subsidiary companies $93,890.00. The earnings for the year, after deducting all charges for depreciation, deple tion and reserve for Federal Taxes, resulting from the operation for the fiscal year were $4,027,124.67. Your mines and mills in St. Francois County, Missouri, produced 4,527,695 tons of ore, 208,381 tons of lead concentrates and 8,390 tons of zinc concentrates. The lead content of the lead concentrates produced was 151,045 tons. There was produced by Kansas Explorations, Inc., a subsidiary of this com pany, from its properties in the Tri-State District in Southwest Missouri, Kansas and Oklahoma, 496,610 tons of ore; 2,522 tons of lead concentrates and 26,492 tons of zinc concentrates. Your Edwards Mine produced 7,705 tons of zinc concentrates. Production of ore was begun at Aline La Afotte in February, 1927, 123,018 tons being shipped to your company's mills in St. Francois County, from which were produced 10,845 tons of lead concentrates. This is in addition to the con- 3 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission centrales produced from your company's own mines in St. Francois County. A mill is now under construction at Mine La Motte. The smelter production available for sale from the company's own ores was 140,875 tons. The sales of pig lead for the year, including lead purchased from the Bunker Hill & Sullivan Mining & Concentrating Company, amounted 4o 193,255 tons. Federal Income Taxes, amounting to $1,327,226.29 were paid in 1927. Final audit by the Bureau of Internal Revenue, on account of the years 1917, 1918, 1919 and 1920, has been received. Reserves already set up will be ample to provide for the additional taxes resulting from this audit. During the year the company has increased its investments in mining property by the acquisition of interests in Montana and has abandoned its active exploration in Bolivia. The lower selling price of lead and a reduced production account for your company's reduced earnings. CLINTON H. CRANE, President. 4 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. BALANCE SHEETS 5 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH AND SUBSIDIjRv CONSOLIDATED BALANCE ASSETS Capital Assets ; Ore reserves and mineral rights, including appreciation arising from revaluation...................... ....................... $32,693,420.63 Less--Reserve for depletion............................................... 21,589,963.36 $11,103,457.27 Buildings, plant and equipment................................................. $16,960,888.23 Less--Reserve for depreciation.......................................... 4,969,504.10 11,991,384.13 I Railroad property and equipment............................................... $ 3,748,544.44 Less--Reserve for depreciation.......................................... 720,959.14 3,027,585.30 $26,122,426.70 Investments: Sundry securities and loans....................................................... $ 1,046,30329 Mine La Motte lease................................. 281,158.89 Current and Working Assets : Inventories at cost: Lead and zinc....................................................................... $ 1,329,600.45 Materials and supplies..................................... 1,977,987.21 1,327,462.18 1 Accounts receivable....................................... .................... .-- Collateral loans................................................ Marketable securities..................................... Cash in banks, on hand and in transit.......................... $ 3,307,587.66 1,481,460.20 1,658,472.38 7,981,847.10 2,742,589.00 17,171,956.34 Deferred Charges : Prepaid insurance, taxes, etc...................................................... 362,643.71 $44,984,488.93 We have examined the books and accounts of the St. Joseph Lead Company and its subsidiary companies for the year ending December 31, 1027, and we certify that the above balance sheet and relative surplus account have been correctly prepared therefrom, and, in our opinion, fairly Bet forth the financial position of the company and the result of operations for the year. 56 Pine Street, New York. March 3, 1928. Price, Waterhouse & Co, Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. I i* LEAD COMPANY COMPANIES SHEET, DECEMBER 31, 1927 LIABILITIES Capital Stock: ; Authorized--2,000,000 shares of $10 each $20,000,000,00 * Issued--1,996,770 shares............................................................... $19,967,700.00 Less--In treasury--46,332 shares........................................ 463,320.00 Scrip outstanding $19,504,380.00 708 50 $19,505,088.50 Minority Interest in Subsidiary Companies: Capital stock, par value............................................................... $ Proportion of surplus applicablethereto,................................... 235,860.00 27,169.30 Purchase Money Obligations, payable in annual amounts to September 30, 1930......................................................................... 263,029.30 522,500,00 Current Liabilities : Accounts payable........................................................................... $ 1,273,297.31 Wages accrued................................................................................. 114,591.97 Provision for 1927 Federal income tax............ ..................... 781,098.84 $ 2,168,988.12 Dividends declared, payablequarterlyin 1928............................. 5,851,314.00 8,020,302.12 Reserve for Contingencies, Etc. : (Including Federal taxes of prior years)................................. Surplus, per statement attached..................................................... 1,S19,579.12 14,853,989,89 $44,984,488.93 7 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY AND SUBSIDIARY COMPANIES SURPLUS ACCOUNT, DECEMBER 31,1927 Surplus at December 31, 1926, including surplus arising from revaluation of ore reserves and mineral rights............................................................................ $16,678,197.22 Profit from operations for the >car ending December 31, 1927, after writing off development and exploration expenses on properties abandoned, but before providing for depreciation, depletion and Federal income tax........ $ 7,324,904.37 Add--Interest, dividends and miscellaneous income... 957,405.56 $ S,282,309.93 Deduct--Provision for: Depreciation ......................................... $ 967,636.34 Depletion ............................................... 2,438,521.67 Federal income tax.............................. 781,098.84 4,187,256.85 $ 4,095,053.08 Deduct--Proportion of profit applicable to minority interests ............................................................................. 67,92841 4,027,124.67 Deduct--Dividends declared, payable quarterly during 1928. $20,705,321.89 5,851,332.00 Surplus at December 31, 1927..................................... $14,853,989.89 Note--The above surplus comprises: ! Surplus as shown by balance sheet of parent company at December 31, 1027 .................................................... ............... ........................ 513,080,430.14 Accumulated surplus of subsidiary companies, including that arising from revaluation of ore reserves and mineral rights, in excess of surplus reflected on books of parent company........................... 1,773,550.75 $14.S53,989.S0 8 Reproduced with permission of the copyright owner: Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY (PARENT COMPANY) INVESTMENTS IN SUBSIDIARY COMPANIES DECEMBER 31, 1927 The Doe Run Lead Companv............... ...................... Kansas Explorations, Inc................................... . .,... Bonne Terre Farming and Cattle Company. ... , . Mississippi River and Bonne Terre Railway........... ... No. of shares outstanding Par value per share Percentage of outstanding sliaies owned 65,749 $100.00 96.43% 8,000 100.00 100.00% 50,000 10.00 99.91% 30,000 10000 99.97% ST. JOSEPH LEAD COMPANY AND SUBSIDIARY COMPANIES STATEMENT OF ESTIMATED AND ACTUAL NET INCOME FOR THE YEAR ENDING DECEMBER 31,1927 Net income, before providing for depreciation, depiction and Estimated Actual Federal income tax......................................... .................. $7,900,000.00 $S,214,381.52 Deduct---Provision for: Depreciation ......................... ......................................... . Depletion ......................................................................... . Federal income tax....................................................... . $ 900,000.00 2,700,000.00 700,000.00 $ 967,636.34 2,438,521.67 781,098.84 $4,300,000.00 $4,187,256.85 Net income for the year ending December 31, 1927... . $3,600,000.00 $4,027,124.67 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. BALANCE SHEET ASSETS Capital Assets ; Ore reserves and mineral rights. .. Less--Reserve for depiction.......... 18.815,952.25 12,283,139.85 $ 6,532,SI2.-40 Buildings, plant and equipment........................................................ $12,320,276.52 Less--Reserve for depreciation........................................... 3,395,425.59 8,924,S50 93 $15,457,663.33 Investments in and Advances to Subsidiary Companies: Investments ....................................................................................... $ 8,210,944.57 Advances .......................................................................................... 2,601,635.42 10,812,579.99 Other Investments: Sundry securities and loans............ ........................................... $ Mine La Motte lease....................................................................... 804,368.41 281,158.89 1,085,527.30 Current and Working Assets: Inventories at cost: Lead and zinc............................................................................. $ 902,710.89 Materials and supplies.......................... ..... ........................ 1,653,761.67 Accounts receivable.............................. Collateral loans....................................... Marketable securities............................. Cash in banks, on hand and in transit $ 2,556,472.56 1,379,952 02 1,658,472.38 6,451,251.48 2,246,15982 14,292,308.26 Deferred Charges : Prepaid insurance, taxes, etc........................................................ 265,63524 $41,913,714.12 We have examined the books and accounts of the St. Joseph Lead Company for the year ending December 3i, 1927, and we certify that the above balance stmet and relative surplus account have been correctly prepared therefrom, and, in our opinion, fairly set forth the financial position of the company and the result of operations for the year. Price, Waterhouse & Co 5t5 Pine Street, New York, March 3, 1928. 10 i I Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. LEAD COMPANY IlfkANY) DECEMBER 31, 1927 LIABILITIES Capital Stock: Authorized--2,000,000 shares of $10 each............... $20,000,000.00 Issued--1,996,770 shares...................... $19,967,700.00 Less--In treasury--46,332 shares. 463,320.00 Scrip outstanding. $19,504,380.00 708.50 $19,505,088.50 Purchase Money Obligations, payable in annual amounts to September 30, 1930........................................................................ Due to Subsidiary Companies. 522,500.00 130,256 84 Current Liabilities : Accounts payable........................................ , Wages accrued........................................... Provision for 1927 Federal income tax. $ 1,126,024 09 71.204.9S 321,601.68 $ 1,518,830.75 Dividends declared, payable quartetly in 1928........................ 5,851,314.00 7,370,144.75 Reserve eor Contingencies, Etc. : (Including Federal taxes of prior years)................................ Surplus, per statement attached....................................................... 1,305,293.89 13,080,430.14 $41,913,714.12 11 ( Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY (PARENT COMPANY) SURPLUS ACCOUNT, DECEMBER 31, 1927 Surplus at December 31, 1926..,........................................................................................ $13,654,151.52 Profit from operations for the year ending December 31, 1927 after writing off exploration expenses on proper ties abandoned, but before providing for depreciation, depletion and Federal income tax,...................................... $ 3,865,490.23 Add--Interest, dividends and miscellaneous income, including dividends received from subsidiary com panies .................................................................................. 3,783,097.35 $ 7,648,587.58 Deduct--Provision for: Depreciation .......................................... Depiction ................................................ Federal income tax.............................. $ 638,114.24 1,411,261.04 321,601.68 2,370,976.96 5,277,610 62 Deduct--Dividends declared, paj able quarterly during 1928 ............................ .............. ................ ................... $18,931,762.14 5,S51,332.00 Surplus at December 31, 1927...................................... $13,0S0,43G.14 12 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.