Document JY6KpEkE465Nqa7ew3xzJ1pa

Saint Joseph Lead Company Annual Report -- 1935 America's Corporate Foundation; 1935; ProQuest Historical Annual Reports Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY Incorporated March 25, 1864, under the laws of the State of New York BOARD'OF TRUSTEES Clinton H. Crane Chairman K.Daniel Catlin, St. Louis, Missouri V.Firmin Desloge, St. Louis, Missouri C. Merrill Chapin, Jr. Vice-President Andrew Fletcher, Vice-President and Treasurer Hendon Chubb, of Chubb & Son James H. Grover, Pres., St. Louis Union Trust Co Irwin H. Cornell, Vice-President Fred W. Shibley, Vicc-Pres., Bankers Trust Co. M. F. Watts, : of Watts1& Gentry, St. Louis EXECUTIVE OFFICERS H.Clinton Crane, President E. V. Peters, Vice-President H.Irwin Cornell, Vice-Pres., and Sales Manager H. B. McGown, Secretary Andrew Fletcher, Vicc-Pres., and Treasurer J*->C. Merrill Chapin, Vice-President Robert Bennett, Assistant Secretary George 1. Brigden, Assistant Secretary STOCK TRANSFER OFFICE 250 Park Avenue, New York REGISTRAR City Bank Farmers Trust Company, New York Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST, JOSEPH HAD COMPANY 250 Park Avenue, New York City PRESIDENT'S ANNUAL REPORT TO STOCKHOLDERS The Consolidated Balance Sheets as of December 31, 1935 and December 31, 1934 of St. Joseph Lead Company and Subsidiaries and the related Summaries of Consolidated Net Income and Surplus for the years ended on the above dates are submitted herewith as a part of this report. The Consolidated Income of $933,768.45 for the year ended December 31, 1935 before depletion, abandoned leases, obsolescence of the Doe Run Mill and income taxes, shows an increase of $118,820.16 over the previous year. Although slightly higher prices were obtained from the sales of lead and zinc, the resultant profit was largely offset by a decrease in the profit from our Atlanta Gold property. A net profit of $486,199.77 after all deductions is shown for 1935 compared with a net loss of $812,534.33 for the previous year. The large difference between the two periods is primarily due to the change in the method of computing depletion explained in the semi-annual report to stockholders covering the first six months of 1935 and has resulted in a charge against current earnings of $303,009.11 instead of $1,395,041.35 which would have resulted from use of the former basis. No change was made or is contemplated in connection with the depre ciation rates now being used on the Company's books. The Consolidated Earnings for the eight years ended December 31, 1935 are shown below: Consolidated Earnings Year 1935............................. ................... 1934............................. ........... 1933........................... ..................... 1932............................. ..................... I93I.......................... ..................... Income after Interest but Before Other Deductions $2,005,781.59 1,936,908.95 1,316,485.60 *287,881.11 1,622,220.01 --------------- Provision for---------------- Depreciation Income Taxes $1,072,013.14 $ 35,502.59 1,121,960.66 78,862.23 1,022,922.73 1,011,845.62 *.** 1,149,702.39 Net Income before Depletion, Etc. $ 898,265.86 736,086 06 293,562 87 *1,299,726.73 472,517.62 Provision** for Depletion, Etc. $ 412,043-61 1,548,604.47 1,461,310.72 1,606,310.78 1,886,589.04 1930............................. ..................... 1929............................. ..................... 1928............................. ..................... 5,809,486.42 11,954,769.82 7,815,038.98 3,319,064.38 1,268,935.08 1,050,348.88 390,314.61 883,938.98 455,623.88 4,100,107.43 9,801,895.76 6,309,066.22 2,566,469.67 2,264,740.04 1,775,803.27 Loss. 'Includes abandoned leases for the years 1933 to 1935 inclusive and provision for obsolescence of the Doe Run Mill for the year 1935. Quarterly dividend distributions of $0.10 per share aggregating $782,269.30 were made to stockholders during the current year. These dividend distributions wOre paid out of Surplus earnings of the Company, accumu lated after February 28, 1913 and are therefore subject to Federal Income surtax. The following is a record of dividends for the years 1928 to 1935 inclusive: Dividends Paid to Stockholders Year 1935.,,,,... 1934 .............. 1933,............ 1932.............. St. Joseph Lean Company $ ,782 269.30 586,701.30 .............. 292,569.75 Minority Interests in Subsidiaries ........ .............. .............. .............. Year 1931.............. 1930............... 1929 .............. 1928.............. St. Joseph Lead Company $2,438,079.75 5,851,386.00 5,851,374.75 5,851,335.00 Minority Interest in Subsidiaries $ 14,618.75 128,865-00 70,305.00 76,253-00 On December 6, 1935, a further reduction was made in the Company's outstanding indebtedness when the $500,000 one-year ll/%% note dated June 17, 1935 was paid. This note represented one of the bank loans made at the time of refinancing the $8,000,000 St. Joseph Lead Company Ten-Year Convertible 5/^% Debenture Bonds due May 1, 1941, which were called for redemption and payment on June 18, 1935, at 105 and accrued interest. The Company's long-term indebtedness has therefore been reduced from $8,000,000 to $5,500,000 during 1935. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. The Consolidated Balance Sheet of St. Joseph Lead Company and Subsidiaries, as of December 31, 1935, shows a ratio of current assets to current liabilities of 12.16 to 1. At the close of the year the Company owned $528,000 par value of United States Government, State and Municipal securities of which $442,000 were United States Government securities, $31,000 in New York State bonds and $55,000 New York City bonds. The New York State and New York City bonds, together with $12,000 of United States Government securities, are on deposit with the New York and Missouri State Industrial Compensation Commissions. In addition, $10,000 United States Government securities are on deposit with the United States Department of the Interior as security for performance of a mining lease on Indian Land. The stockholders are again reminded that the net value of the Capital Assets set forth on the accompanying Consolidated Balance Sheets are depleted and depreciated figures based on appraised values at March 1, 1913 as to properties owned at that date and on cost as to subsequent additions; and they do not necessarily indicate the present day values or prospective future values of the Company's property, plant and equipment, as such values could be arrived at only by current estimates which would vary from time to time depending on the price of metals, rate of production, cost of labor and other factors. Although the appraised value of the areas owned on March 1,1913 have been entirely written-off the Company's books by depletion deductions, ore is still being mined from these areas at a profit and probably will be for years to come. Of the $4,315,000 appreciation arising from revaluation of ore reserves after March 1,1913 only $384,963-21 of the said book value remained undepleted on December 31,1935. Lead Operations The Company's Southeast Missouri properties were operated throughout the year on a curtailed basis. On June 1, 1935 the schedule of twelve working days in each four week period, which had been in effect since November 1, 1934, was reduced to a ten day basis, and this rate was maintained through the remainder of the year. The Missouri smelter at Herculaneum was operated continuously during the year on a one furnace basis although on October 13, 1935 a six instead of a seven day week was adopted. In spite of the fact that these properties were operated on a curtailed basis, lead stocks increased 5,845 tons during 1935 bringing the total of Missouri lead on hand at December 31, 1935 to 108,829 tons. The Rivermines Mill of the Doe Run Lead Company was temporarily closed down in August 1934. During the year 1935 it was decided that this shut-down should be continued permanently, and all usable equipment is being transferred to the Federal Mill of the St. Joseph Lead Company, as it was found that the Doe Run Lead Company production could be more effectively handled by that unit. A provision for obsolescence of $100,000 a year, beginning with 1935, will be charged against current earnings until the property has been written off. This provision is in addition to the regular provision for depreciation. Arrangements are being made to liquidate the Doe Run Lead Company, a wholly owned subsidiary of St. Joseph Lead Company, during the early part of 1936. During the year ten additional suits were filed against the Company for occupational diseases claimed to have been caused by breathing dust in our Southeast Missouri mines. At the close of 1935,123 suits amount ing to $1,957,500 had been filed and were pending as compared with 113 suits, totaling $1,915,000 on December 31, 1934. No suits had been tried during the current year. The Company denies all liability in connection with these cases, for reasons set forth in the Annual Report for the year 1934. Zinc Operations The Balmat and Edwards properties located in northern New York were operated continuously throughout the year on slightly less than a full time schedule. The Josephtown Zinc Smelter in Pennsylvania continued to treat a substantial portion of the output of the Edwards and Balmat mines to meet the demand for "St. Joe" zinc oxide from the rubber and paint industries. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Miscellaneous Operations The mill on the Company's short lived gold property at Atlanta, Idaho, operated at full time throughout the year on ore from the mine and on old tailings. The Block "P" mine in Montana remained closed throughout the year. The Robinson mine of the Kansas Explorations, Inc., located in the Tri-State District was sold to the American Zinc Lead & Smelting Company on August 12, 1935 and has been placed in production by that company. Although the Kansas Explorations, Inc., did not operate any of its mines during the year, a small income was derived from royalties received from milling the Dardenne tailings pile by sub-lessees. Construction work on the Aguilar Corporation property, located in the Province of Jujuy, Argentina, is completed and the mill was placed in operation on February 5, 1936. Due to improved conditions in the world metal markets it has been decided to increase the capacity of the mill from 200 to 400 tons of ore per day, but milling on the 400 ton basis will not commence until about July 1936. Of the numerous mining properties offered to the Company during 1935 only four were considered worthy of examination and these were turned down after inspection was made. General Under date of May 31, 1935 the New York Stock Exchange certified its approval for listing and registration of the Company's Capital Stock under the Securities Exchange Act of 1934. Registration of our stock was therefore effective as ofJuly 1, 1935 at the termination of temporary registration. There were no general wage or salary increases at any division or in the New York Office during 1935. The Comparative share holdings for December 31 of each, year for the last five years are as follows: Year Number 1935............................................................................... 5,304 1934............................................................................... 5,300 1933 ............................................................................... 5,145 1932............................................................................... 5,360 1931............................................................................. 5,063 19 or Less 1,491 1,549 1,511 1,584 1,784 20-99 1,748 1,712 1,684 1,796 1,349 100-199 911 873 835 875 831 2000ver 1,154 1,166 1,115 1,105 1,099 I New York, February 21, 1936. \ ' Clinton H. Crane, President. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. U. S. REFINED LEAD STOCKS, LEAD AND ZINC PRICES Comparative Annual Statistics Year Tons of U. S. Refined Lead Stocks At End of Year 1935................................... ...................................... 222,306 1934......................................... ...................................... 235,457 1933......................................... ...................................... 203,061 1932......................................... ...................................... 176,157 1931......................................... .................................... 151,653 . 1930................................... ...................................... 103,247 1929......................................... ................................. 54,900 1928......................................... ...................................... 33,618 Average Lead and Zinc Prices in Cents Per Lb. Lead Lead Zinc F.O.B.StXouis F.O.B.St.Louis F.O.B.St.Louis E.&M.J. St. Joe E.& M.J. Average Average Average 3.915 3-878 4.328 3.724 3.700 4.158 3.735 3.652 4.029 3-042 3.055 2,876 4.049 4.007 3 640 5.384 5.456 4 556 6.660 6.646 6.512 6.131 6.133 6.027 ST JOSEPH LEAD COMPANY AND SUBSIDIARIES Production in Tons Year Ore Mined N. Y. and Mo. Lead Pig Lead Concentrates Equivalent Zinc Slab Zinc Concentrates Equivalent 1935............................ ... .................... 1934............................ .......................... 1933............................ .............................. 1932............................ ............................ 1931............................ ............................ 1930........................... .......................... 1929............................ .............................. 1928............................ ............................ 3,382,403 3,269,864 2,652,944 3,233,172 4,465,794 5,999,813 5,750,412 4,833,194 133,044 124,240 114,651 147,242 196,481 243,614 245,958 204,181 92,611 86,060 78,248 99,242 131,586 164,886 165,114 137,673 47,214 46,353 34,741 34,677 63,348 86,795 60,475 45,928 22,857 22,389 16,898 17,017 31,498 42,554 29,848 23,257 Note: In previous years the lead and zinc content of the respective concentrates has been shown, whereas in the above table the estimated recoverable metal is set forth under the headings "Pig Lead Equivalent" and "Slab Zinc Equivalent." Lead Sales and Stocks at End of Year in Tons Year 1934.............................................................................................. 1933....................................................................................... .. 1932................................................................................... .... 1931.................................................................................... . 1929......................................... ................................................... Lead Sales i?t. Joe Production 87,077 84,964 72,462 81,467 105,262 137,502 160,490 136,640 Purchased Lead Sold 41,714 39,566 47,988 53,473 69,085 82,221 61,399 52,342 Total Lead Sales 128,791 124,530 120,450 134,940 174,347 219,723 221,889 188,982 *Pi^ Lead Equivalent or Stocks 108,849 103,918 100,453 96,484 78,390 51,536 22,163 16,397 Includes Purchased Lead and estimated recoverable lead in concentrates together with other lead stocks in process of refining at smelters. Reproduced with permission of the copyright owner.- Further reproduction prohibited without permission. ST. JOSEPH LIAO COMPANY AND SUBSIDIARIES Summaries of Consolidated Net Income For the Years Ended December 31, 1935 and 1934 1935 Gross Sales (Including Royalty Earnings--1935, $18,963.79; 1934, $34,757.14)..................................................................................................... $15,286,698.04 Cost of Sales (Exclusive of Depreciation and Depletion).................................... 12,524,602.98 Gross Profit from Operations before Depredation and Depletion................... $ 2,762,095.06 Deduct: Selling, General and Administrative Expenses................................ $ 450,803.05 Capital Stock and Miscellaneous other taxes................................... 30,558.54 481,361.59 Net Profit from Operations before Depreciation and Depletion.......................... $ 2,280,733.47 Other Income: Interest................................................................................................ Dividends...................................................................................... Profit on Sale of Investments, net..................................................... Miscellaneous...................................................................................... $ 41,213.56 5,950.00 1,683.87 674.25 r Gross Income before Depreciation and Depletion................ ........ ...................... Interest and expense on bonds and notes.......................... .................................................. 49,521.68 $ 2,330,255-15 324,473-56 Income before Depreciation, Depletion and Other Deductions,...................... $ 2,005,782.59 Provision for Depreciation.................................................... ............. ...--...................... 1,072,013.14 1934 $14,333,442.42 11,569,011.2? $ 2,764,431.15 $429,293,47 14,361,71 443,655.18 $ 2,320,775.97 $41,671.08 11,125.00 26,418.30 2,715.03 81,929.41 '' $ 2,402,705.38 465,796.43 $ 1,936,908,95 1,121,960.66 Income before Depletion and Other Deductions..................................................... $ Depletion and Other Deductions: Provision for: Depletion.................. Obsolescence of the Doe Run Mill............................................. Federal Income Taxes................................................................. Abandoned leases written-off............................................................. $ 303,009.11 100,000.00 35,502.59 9,034-50 933,768.45 447,546.20 $ 814,948.29 $1,476,607-36 -----78,862.23 71,997.11 1,627,466.70 Net Income for the Year before deducting Minority Interest........................... $ 486,222.25 Deduct--Proportion of Net Income Applicable to Minority Interest......................... 22.48 *$ 812,518.41 15-92 Net Income for the Year.................................................................... $ 486,199.77 Summaries of Consolidated Surplus For the Years Ended December 31, 1935 and 1934 *$ 812,534.33 *Net Loss. 1935 Surplus at Beginning of the Year (Including Revaluation of Ore Reserves--1935,$394,982.57; 1934, $702,991.48)............................. $ 6,506,185.03 Add: Net Profit for the Year.................................................................................................. Credit arising from acquisition of Minority Interest in the Doe Run Lead Company. A.Total............................................................. .......................................... 486,199.77 ------ $ 6,992,384.80 Deductions: Adiuscment of inventories applicable to prior years..................... . Redemption premium including unamormed debt discount and ex pense on St. Joseph Lead Company 5Yz% Bonds called for payment June 18, 1935................................................................ Cash Dividends paid during the year.............................................. ....... ? 551,098.78 782,269.30 1,333,368.08 1934 $ 7,972,399.31 * 812,534-33 32,782.15 $ 7,192,647.13 $ 99,760.80 -----586,701.30 686,462.10 Surplus at End of the Year (Including Revaluation of Ore Reserves--1935, $384,963.21; 1934, $394,982.57)............... ..................... $ 5,659,016.72 $ 6,506,185.03 *Net Loss. Note: The provision for depletion for the year ended December 31,1935, amounting to $303,009.11 is $1,092,032.24 less than would have resulted from computations on the basis used prior to January 1. 1935. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD CO Consolidated Balance Shec ASSETS Capital Assets: Ore reserves and mineral rights: , Appraised value as of March I, 1913...................... ....... . ... Less Reserve for depletion................................. ................ . December 31,1935 $13,500,000.00 13,500,000.00 __ December 31, 1934 $13,500,000.00 13,500,000.00 --p-- Additions subsequent to March 1, 1913 (at cost).............. . Less Reserve for depiction.................................................... $21,428,204.03 $21,561,701.18 14,106,279.21 $ 7,321,924.82 13,971,309.64 $ 7,590,391-54 Appreciation arising from revaluation subsequent to March 1,1913....................................................................... Less Reserve for depletion..................................... ............ $ 4,315,000.00 3,930,036.79 $ 4,315,000.00 384,963.21 3,920,017-43 394,982.57 Total Ore Reserves and Mineral Rights, net................ Shafts and underground equipment (at cost).................................. Less Reserve for depreciation....................................................... $ 4,987,367.22 3,635,766.34 $ 7,706,888.03 1,351,600.88 $ 5,020,171.57 3,621,430.47 $ 7,985,374.11 1,398,741.10 Land, Buildings, Plant and Equipment (at cost)............................ $19,356,694.79 Less Reserve for depreciation....................................................... 10,760,125.56 $19,946,429.18 8,596,569.23 10,273,009.95 9,673,419.23 Railway construction--cost being refunded.................................... 150,410.00 166,835 00 Total Capital Assets, Net.............................................. Investments and Advances: Aguilar Corporation (at cost--86% owned)................. ................ Mine La Mottc Corporation (at cost--50% owned)...................... Kadco Corporation (at cost--50% owned)..................................... Stocks of other mining companies (at lower of cost or market)... Sundry securities and loans (at cost, less reserve $200,000.00, December 31, 1935; at cost December 31,1934)...................... $17,805,468.14 $ 1,890,000.00 818,653.66 100,000.00 294,627.00 226,048.32 3,329,328.98 $ 1,515,000.00 816,653-66 100,000.00 156,352.00 431,777.06 $19,224,369.44 3,019,782.72 Special Deposit: For Bonds called but not presented for payment, including premium and interest (See Contra)........................................................................ ............ .........................-- Current and Working Assets: Cash on hand and in banks........................... ................................ Federal, State, and Municipal Securities, including deposits with Federal and State departments--1935, $108,000; 1934, $96,000 (market quotation value--December 31, 1935, $539,028.53; December 31,1934, $3,361,438.50)................................ . Notes and accounts receivable (Trade).......................................... Notes receivable--employees............................................. . Due from subsidiaries not consolidated.......................................... Other Notes and Accounts Receivable................................ ........... Inventories of lead, zinc, etc, (at cost, less than market).............. Materials and supplies (at cost, less reserve for slow-moving items, $200,000.00)......................................................... $ 1,421,702.12 526,615-99 1,441,786.32 .; < 2,945.51 44,141.00 6,986,366.16 1,426,968.49 15,447.44 $ 1,746,157.83 11,850,525.59 3,361,438.50 984,343.68 235.22 54,869.83 45,728.30 6,376,024.32 1,504,748.79 14,073,546.47 Cash in Closed Banks......................................................................... Deferred Charges: Unamortizcd debt discount and expense.......................................... Prepaid insurance, taxes, etc........................................................... -- $ 172,104.12 Total.................................................................. 32,473.68 $ 163,065-45 172,104.12 179,005.84 $33,205,347.95 41,698.37 342,071.29 $36,701,468.29 t Notes: The net value of the Capital Assets shown in the ahnftlam ments included in the text ofthis report. The Parent Company is contingently liable as guaraac American Subsidiary of Aguilar Corporation, which guaramfloouc at December 31, 1934. I The Missouri occupational disease suits filed against t. Jos the President's Annual Report to Stockholders for the currtwar, reasons set forth in the President's Annual Report to Stocwlder Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. mD SUBSIDIARIES Ftuber 31, 1935, and 1934 Capital Stock: December 31, 1935 ` LIABILITIES Authorized, 2,500,000 shares of $10.00 each ........ ......................... $25,000,000.00 December 31,1934 $25,000,000.00 Issued, December 31, 1935, 1,996,801 shares; December 31, 1934, 1,996,798 shares................................................................. Less in Treasury--41,127 shares............................................... $19,968,010.00 411,270.00 $19,967,980.00 411,270.00 Outstanding, December 31, 1935, 1,955,674 shares; December 31, 1934, 1,955,671 shares............................................................... Scrip outstanding................... . .............................................. .. $19,556,740.00 398.50 $19,557,138.50 $19,556,710.00 428.50 $19,557,138.50 Minority Interest in Subsidiary Company: Capital Stock and Surplus.................................... ............................. ...................... ....... 512.94 490.46 Long Term Indebtedness of St Joseph Lead Company: Ten-Year Convertible 5Jlj% Debenture Bonds maturing May 1, 1941, called June 18, 1935 at 105 (Less Bonds in Treasury $1,752,300.00)..................................................................................... Ten-Year 4% Debenture Notes due June 1, 1945.............................. Five-Year 3% Note Payable--Bank, due June 17,1940..................... -- $ 3,000,000.00 2,500,000.00 5,500,000.00 $ 8,OCX),000.00 ------------ 8,000,000 00 Redemption Account: St. Joseph Lead Company, Ten-Year Convertible 534% Debenture Bonds called June 18,1935, including premium and interest (See Contra)........................................... 15,447.44 Current Liabilities: Accounts Payable (Trade).......................... Wages Payable.............................................. Accrued Interest on Notes and Bonds___ Accrued Taxes (including Income Taxes), $ 828,443.61 60,113.88 12,708.33 73,272.80 974,538.62 $ 795,379.54 60,657 68 73,333.38 466,761.39 1,396,131.99 Deferred Credits: Unrealized profit from sale of houses, etc, Reserves: For Injury Claims and Workmen's Liability Insurance. For Employees' Life Insurance and Retirements........... For Contingencies................................................... ........ 80,968.69 86,764.29 $ 147,945 80 635,898.33 633,880.91 1,417,725.04 $ 118,46942 421,895.59 614,393-31 3,154,758 02 Surplus: Earned.......................................................................................................... .. Revaluation of Ore Reserves.................................................................... $ 5,274,053-51 384,963-21 $ 6,111,202 46 5,659,016.72 394,982.57 6,506,185.03 Total.................................................................. ................. .. .............................. $33,205,347.95 dance Sheets should be considered in the light of the corncertain bank loans of Cia. Minera Aguilar, S. A., the South oounted to $406,200.00 at December 31,1935, and $21,200.00 . Joseph Lead Company and Subsidiaries, as mentioned in ar, arc being defended, and all liability is denied for the alders for the year 1934. $36,701,468.29 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. HASKINS & SELLS CERTIFIED PUBLIC ACCOUNTANTS 22 EAST 40TH STREET NEW YORK ACCOUNTANTS' CERTIFICATE St, Joseph Lead Company; '' We have made an examination of the consolidated balance sheets of St. Joseph Lead Company (incorporated in New York) and its subsidiary companies as of December 31, 1935 and 1934, and of the related summaries of consolidated net income and surplus for the years 1935 and 1934. In connection therewith, we made a review of the accounting methods and examined or tested accounting records of the companies and other supporting evidence in a manner and to the extent which we considered appropriate in view of the system of internal accounting control. All subsidiary companies controlled by your company were examined by us with the exception of the Cia, Minera Aguilar, S. A., the South American subsidiary of Aguilar Corporation, which subsidiary has been audited by Messrs. Price, Waterhouse, Peat & Company to December 31, 1935. Effective January 1, 1935, the tonnage remaining in the various properties was re-estimated by engineers of your company, and depletion for the year, based on the estimated units, was computed on sales instead of on production as theretofore. Physical inventories are taken by employees of the companies at varying dates during the year, and in sub stantiation of inventory quantities as of December 31, 1935 and 1934, we have accepted certificates from officials of the companies. The cost of inventories of lead, zinc, etc,, does not include either depletion or depreciation. In our opinion, subject to the foregoing and to the realizable value of investments and advances, the accom panying consolidated balance sheets and related summaries of consolidated net income and surplus, with the foot notes thereon, fairly present, in accordance with accepted principles of accounting consistently followed by the companies, their financial condition at December 31, 1935 and 1934, and the results of their operations for the years ended those dates. HASKINS & SELLS New York, February 21, 1936. Reproduced with permission of the copyright owner, Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY PRESIDENTS ANNUAL REPORT TO STOCKHOLDERS FOR THE YEAR 1335 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.