Document GmQoyX4ekG5Dex5a09xkEmgMv

Annual Report NATIONAL LEAD COMPANY for Fiscal Year Ending December 31, 1896 Principal Office: 1 Exchange Place, Jersey City, N. J. Executive Offices: 111 Broadway, New York City 0000-NLI-000017850 NATIONAL l e a d c o mp an y 1 Exchange Place, Jersey City, N. J. Report Presented to the Stockholders at their Fifth Annual Meeting, February 18, 1897, For the Fiscal Year Ending December 31, 1896. To the Stockholders of National Lead Company: The following Balance Sheet shows the condition of the Company on December 31, 1896: ASSETS Plant Investment............................. 33,750,819.12 Less charged Surplus for depredation. ..................... 288* 145. 50 323*462,673*62 Other Investments...................................................... 336,217.89 Stock on hand, manufactured, in process and raw............ *............................... * 4,587,594.23 Treasury Stock-Common................ 94,600.00 -Preferred......................96,000.00 190,600.00 Cash in Banks..................... 503,394.70 Notes Receivable.......................................................... 246,286.73 Aocounta Receivable................................................... 1,465,408.39 Total Assets.................... 30,692,175.55 LIABILITIES Capital Stock-Common......... 15,000,000.00 -Preferred.............. 15,000,000.00 Surplus, Dec. 31, 1896.............. 893,813.53 Less credited Plant for de preciation........................................ 388,145.50 Mortgages.......................................................................... AocountsmPayable.......................................................... Total Liabilities............................................ 30,000,000.00 604,668.03 13,603.35 74,904.28 30,692,175.55 In order that Stockholders may conveniently compare he condition of the Company with that of 1895, the `Olloiting comparative sheet is presented herewith: 0000-NLI-000017851 CV' n h 0 lOrl 01 m 03 4f tO e- to *** O 03 to in 03 rH <rH0 rH 03 CO O rd 'H CD ^ > lf> 00 03 r00i N4* CinD : 00 <a 03 03 03 O O tO 03 tO 00 PJ O C- p- to * tO Is- 4$* O h J to 00 1-4 03 O 03 CD O to CM tT3 CO to CQ 4j* 4 444* *4 Ca CO C- O to CO to tO tO CD 03 O *# tO r}> oa in rd tO 00 -# m c d to o ca to oo co ^ to o m 03 os to to r-4 O 03 0s- 00 co coto oo into to troj>CmO*(CHQCoOccoa oGO-h00 rd to O 03 to r-4 00 co oo <-* to ca ca a * a * * * 9 *H 0) * fSD +* 4* <4 c c H > jQ *-* B BrS O <0 rtJ 0) 43 43 C O ^4 > O m no d 4* C <D E co d cti >> CQ O c c c >1 0) HH O f4 C(fi-P 3 -n C +3 *4 M COO d .3 o d O Hd X43i 4o3 o ro +> o McJOO Oi O 0Q 43 0) a r-1 d 43 o Eh O 4# CO to to 10 d rt CD rd to m 03 ca CO O * 44 <0 o CO Q in to 3 H <*> o oa in co o o ca oa t O 00 CO r? OtOOO O co CO 03 *4 * CO o ^*oa 4# o o <-i ro co o oa m ca o co ca oo # 9 O 03 to to O 03 O CD O4O4tO4 r4l oo <c-Ot cHa Oto o r- lH M 604t3a d 3d3 43 rd bO 3 4-1 0,43 Q AM C O odc3oaO <o 0000-NLI-000017852 S u r p lu s , December 3 1 , 1895................................................................................................$ 7 6 1 *0 9 9 .8 2 Net E a rn in g 3 d u r in g 1896................................................................................................... 1 ,1 7 4 ,9 9 3 .7 0 $1,936,093.52 0 CM in O 10 CO CM CD CD -- t-i to O to CD rl * * ft ft ft ft ft ft ft ' 00 0m O in CD CM r- * to 00 *}* 00 O CM H * 9 * CD 05 OOOO CO OOOO r-l OCOO o CM Cd CM CM 52; OD CD 03 00 M n OOOO CD CD CO CO c CM CM CM CM * *3 0 M CD pH M O v; O 05 CD +> r--i p +* MD05O a & CO H rt H CQ d <% w f-i rH c t J a* CO >-t a> OOOO > u S5 25 S3 55 Vi U Mu 0O P <D T) Vt c JQ ae 0) 0 0 (D p t3 b * O 0. H-l 43 O > id Q a rH 0O O *v a> u 4 t * ft 0 CC 0 rl a , # *Q * u 0 M CD O co m in 10 W H ri rl rl TJ ja 0 -p O to M f-t c 0.0 d d 0 0d aocopo 3 0000-NLI-000017853 The foregoing statement discloses accurately the result of the business of the Company for the year 1896, the fifth in its history. The conditions surrounding commercial interests in that period are familiar to all, and need review only as they may apply to this business. Continually falling prices limited ^ the margin of profit, and although consumption was stiau-* lated, making the tonnage distributed the largest in our history, the net earnings were but 1,174,993.70. While competition has been active, it will be ob served that no demoralization has resulted and that a profit, although small and inadequate to the capital in volved, has followed on the conduct of the business. Our relations to the trade oontinue harmonious. "Plant Investment" account shows for the five years ending with this Report, a net increase of 799,247.88 (for the current year, 137,353.47) representing expen ditures for permanent improvements and for new properties, less amount received for properties sold. Thi3 sum has been paid from undistributed earnings, represented on the Balance Sheet by "Surplus* account, thus largely emJloy-lng It* The policy of modernizing the factories has been continued and its wisdom demonstrated in lower manufacturing costs. The smelting and refining plants of the Company have not been operated during the year. It will be noted that from "Plant Investment" account has been deducted 288,145.50 for depreciation and a like amount charged to "Surplus" account. This is done in pursuance of a conservative policy and in no manner affects the net earnings shown for 1896. Attention is called to the decrease in the item of "Other Investments", many of the assets heretofore in cluded under that head having properly been transferred to "Stock on hand". Shareholders will note the 3tock on hand is less this year than last, partly attributable to the values at which inventories have been taken, all being the lowest ever recorded. Working capital is ample for present needs and has been less actively employed only beoaoae our large stocks Oat less money. The accounts payable are less and as ^ual represent current matters awaiting audit before -4 - 0000-NLI-000017854 payment. The mortgage indebtedness remains at $13,600.35. Mr. John H. McKelvy, for many years an active man ufacturer, and since the organization of this Company a useful member of the Board of Directors and Manager of its interests at Pittsburgh, died on April 13, 1896, generally lamented in the community where his life has been spent, and mourned by hi^ business associates. In conclusion it may be said that there has been no occasion to depart from the established policy of the Company as respects the conservation, protection and ex tension of its trade and the distribution of profits earned. Both classes of the stock are largely held by those to shorn originally issued, and all holders have an undivided interest in its prosperity. We feel reasonably confident in our b -lief that the bottom was touched in 1896, and in predicting that the year on which we have entered will be fairly prosperous for the Company. Respectfully, L. A. Cole, President. -5- 0000-NLI-000017855