Document K67djnQkyxQnNG9155GLomggw

N10128 INT53MATICN'Al SKIRTING AND HEFIMKG COMPAtfY h ip :r : :r? a u d it YEAR ZND2Z DECEMBER 31, 19^5 Pogson* Peloubet & Co. Certified Public Accountants PNYC00000907 INDEX Page 1 1 3 4 5 6 8 8 GENERAL COMMENTS Scope of the report Financial condition-of the . company Settlement of indebtedness to Anaconda Copper Mining Company Company operations Investments and income therefrom Statement of funds received and disbursed Distribution of E&lacsj^SMftt juni income^Account to department Scope of audit FINANCIAL STATEMENTS 0 o 0 9 o a Shy ->hts , | 'm' To the Board of Directors, International Smelting and Refining Company, 25 Broadway, Rev York 4, New York Dear Sirs: We have made a general audit of the books and accounts of INTERNATIONAL SMELTIHQ AND REFINING COMPANY for the year ended December 31, 19^5, and present the various statements listed on the opposite page. The accounts of New Jersey Storage and Warehouse Company and Raritan Terminal and Transportation Company, wholly owned subsidiaries, which are not operating, have not been consolidated with those of International Smelting and Refining Company In this report. International Smelting and Refining Company Is a 100# owned consolidated subsidiary of Anaconda Copper Mining Company. mis report, while complete and inclusive for Internatloral Smelting and Refining Company, Is principally a supplementary amplification of the Report on Audit of Anaconda Copper Mining Company and subsidiary companies. It shows the portion of the consolidated accounts of Anaconda Copper Mining Company relating to International Smelting and Refining Company on the eame basis and under the same classifications sa shown In the consolidated report, but In somewhat greater detail. FINANCIAL Summarized, the changes In financial condition during the year vere PNYC00000909 as follows: a December 31> 19*** December 31, 1945 Current assets Deferred charges and other assets Fixed assets $ 8,291,258.17 2,592,964.14 14,06c.874.10 8,577,533-53 259,089.51 8,597,482.39 Total assets 24.945.094.50 17,434.105.43 Current liabilities Reserve for workmen's compensa tion Insurance 1,892,795-76 52,376.64 1,486,789-38 67.698.20 Total liabilities, except for notes payable to Anaconda Copper Mining Company 1,945,172.40 . 1,554,487.58 Equity of Anaconda Copper Min ing Company $ 22,999,922.10 15,879,617.85 Decrease* or Increase In investment 286,277-36 2,333,874.63* 8,453,391.80* 7.510.989.07* 406,006.38* 15,321.56 390.684.82* 7,120,304.25* The equity of Anaconda Copper Mining Company Is represented by: Notes Capital stock Surplus $ 10,500,000.00 - - 10,500,000.00* 12,262,500.00 15,000,000.00 2,737,500.00 ____gJMiz-io ____Z2agiL8S______ aasiSSiZS As above ) t 22,999,922-10 15,879,617.85 7,120,304.25* and represents Investment In the following net assets: Principal smelting, refining and manufacturing plants (details page 4) $ 14,715,403.57 Securities of and advances to other companies, etc. (details page 41) 8.284,518.53 14,741,778.08 1.137.839.77 As above $ 22,999,922.10 15,879,617.85 26,374.51 7.146,678.76* 7,120,304.25* The decrease in equity during the year 1945 is accounted for by the repayment of notes $ 10,500,000.00 of which part was paid by the issue of capital stock of the par value of 2,737,500.00 (the balance being paid by sale of certain assets to Anaconda - see page 3) _________________ Net decrease due to repayment of debt 7,762,500.00 offset by net income of the year $ 505,888.15 and reversal of reserve for Investment In National Tunnel & Mines Company (one of the assets sold to Anaconda) 136,307.60 642,195.75 Net decrease, as above $ 7,120,304.25 The change In current position wae as follows: December 31, 1944 December 31, 1945 assets liabilities $ 8,291,256.17 1,892,795.76 8,577,533.53 1.486.789.38 $ 6,398,460.41 7,090,744.15 Increase or decrease* 286,277.36 406.006. 38- 692,283.74 ratio 4.4 to 1 5.8 to 1 SETTLEMENT OF INDEBTEDNESS TO ANACONDA COPPER MINING COMPANY During the year the oompany settled Its Indebtedness to Anaconda Copper Mining Company,, represented by notes payable of $10,500,000.00, as follows: As of March 27, 1945, International Smelting and Refining Company issued 36,500 shares of Its capital stock to Anaconda Copper Mining Company, thereby com pleting the Issuance of Its total authorized capital stock. The par value of the shares Issued, $2,737,500, was applied to the reduction of certain notes of the company payable to Anaconda Copper Mining Company. As of April 19, 1945, the company paid off the balance of such notes by transferring Its Investment In various mining companies and properties to Anaconda Copper Mining Company. The net effect of these two transactions is shown below: Capital stock of International Smelting and Refining Company Issued to Anaaonda Copper Mining Company - 36,500 shares - par value $75*00 each $ Assets sold to AnwMOda Copper Mining Company: Capital stock of: Copper Canyon Mining Company $ 8,600.00 Mountain City Copper Company 996,987.93 National Tunnel & Mines Company 915,693.92 North Lily Mining Company 66,527.78 Park-Utah Consolidated Mines Company 441,157.50 Prince Consolidated Mining Company 47,132.86 Notes and accrued Interest of: Notes Interest Total National Tunnel & Mines Company $ 1,950,000.00 2,537.67 1,952,537.67 Snyder Mines, Incorporated 141,040.41 5,455.16 146,495.57 Tooele Valley Rail way Company ... 103,136.57 581.39 ___ 103,717.96 $ 2,194,176.98 8,574.22 Leases and Interest on expenditures: Expenditures Interest Total Copper Canyon lease $ 1,280,518.22 Gulld-Adams lease 1,288,852.12 Victoria lease 996,830.49 $ 2,866,200.83 201,211.02 1,481,729.24 82,585.52 1,371,437.64 14,168.90 ___ 310,999-39 297,965-44 2,737,500.00 2,476,099-99 2,202,751-20 3.164,166.27 Indebtedness to Anaconda Copper Mining Company repaid: Principal aseunt Interest Total Note dated June 27,1944 $2,500,000.00 Note dated June 27.1944 8.000.000.00 $10,500,000.00 13,581.73 2,513,581.73 45,157-97 8,045.157-97 58,739.70 Net amount credited to International Smelting and Refining Company 10.558,739.70 21,777-76 fflPERATIQNS 4 Operations of International Smelting and Refining Company for the past three years compare as follows: Year 1943 Year 1944 Year 1945 Gross sales and earnings $ 22,046,552-29 21,918,993-90 19,587,706.70 Net profit on plant operations Income (loss*) from sundry Investments - page 5 Reimbursement of Interest on lease expenditures $ 764,377.88 67,745.23* Interest paid to Anaconda Copper Mining Company on debentures and notes Provision for Federal Income taxes - estimated Provision for contingencies 696,632.65 596,875.00 30,000.00 297,642.94 924,517.94 Net Income (Loss*) $ 227,885-29* 412,217.10 110,605.27* 301,611.83 341,442.49 26,279.28 297,965.44 665.687.21 395,912.44 56,500.69 . 103,296.37 395,912-44 94,300.61* 169,799.06 505,888.15 Net profit on operations of the various plants and departments of the company and income from sundry Investments for the past three years together vith the respective investment therein at December 31, 19^5 are shown in the following summary: Net Profit (Loss*) on plant operations Year 19^3 Year 1944 Year 19^5 Tooele plant $ 394,775-34* Miami plant 133,925-85 Lead refinery 32,969-95 Zinc oxide department 90,618.19* White lead department 16,823.58* Raritan refinery 1,216,453.14 Raritan electro-sheet department 34,409.58* Not allocated (details page 42) 3g.344.37* 344,208.98* 147,172.64 36,223.72 1,890-97* 21,701.99* 729,523.18 21,545-80* 111,354.70* 439,979.09* 11,911.49 40,358.34 73,431.83 19,265-33' 831,663.17 15.457.07' 141,420.85 Investment at December 31, 12i5 4,319,552.69 1,213,288.11 741.319.56 864,975-51 445,099.24 6,394,539.75 286,056.6c 476.944.56 Net profit on plant operations - as above $ 764,377-88 412,217.10 341,442.49 14,741,778.08 * Details of the above figures for 1945 are shown on the Balance 3heet and Income Account by departments on pages 14 and 15 respectively. Income (Loss*) from sundry Investments Investment at December 31, Year 19*3 Year 1944 Year 1945 1946 National Tunnel A Mines Company, interest $ 44,365-37 40,751-09 14,558.22 -- Walker Mining Company, loss on note - - - 44,273-75* -- Other Investments advances (details page 41) 112,110.60* 159.356.36* 55.994.81 1.137.839-77 Income (Loss*) from Invest ments - per page 4 $ 67,745-23* 110,605-27* 26,279-28 1,137,839-77 Details of the above figures for 1945 .ere ehovn on the Balance Sheet and Income Account by departments on pages 14 and 15 respectively. INVESTMENTS IN WHOLLY OWNED SUBSIDIARIES The net Investment of International Smelting and Refining .Company In Its wholly ovned subsidiaries (New Jersey Storage and Warehouse Company and Raritan Terminal and Transportation Company) amounted to $16,952.31 at December 31, 1945- Net Income of these companies for the year 1945 was $595-88. Details page 29- INVESTMENTS IN OTHER COMPANIES Investments, Including noncurrent advances. In subsidiaries not wholly owned and in other companies amounted to $664,889-01 at December 31, 1945 soopared with $5,220,959-83 at December 31, 1944, as shown by the follow ing table: December 31, December 31, 1944 1945 Investment (including noncurrent advances) In companies sold to Anaconda Copper Mining Company April 19, 1945: Copper Canyon Mining Company Mountain City Copper Company National Tunnel A Mines Company North Lily Mining Company Park-Dtah Consolidated Mines Company Prince Consolidated Mining Company Investment In companies retained by International Smelting and Refining Company: Comet Coalition Mines Company Eureka Bullion Mining Company Mountain View Mining Company Victor Consolidated Mining Company Yankee Consolidated Mining Company $ 8,600.00 996,987.93 2,729,386.32 134.256.39 441,157.50 47,132.86 4,357,521.00 340,891.71 68,806.23 18,306.52 20,040.20 663.296.62 -- . 340,891.71 216,821.01 68,806.23 18,306.52 20,063-54 664.889.01 Indebtedness of walker Mining Company, leas ressrvt 200.142.21 As above $ 5,220,959-83 664,889-01 There Is Included In the Income Accounts of the years 1944 and 1945 the following Income and expense relating to the above investments: Income - Interest on advances - dividends fear 1944 $ 52,739.40 6,980.00 Year 1945 16,670.57 Expense reserved for advances loss on settlement of note of Walker Mining Company Net Income or Loss* from investments 59,719.40 51,982.06 51,982;o 6 $ 7,737.34 16,670.57 2,317.63 44,273.75 46,591.38 29,920.81' Based upon quotations of the Salt Lake Stock Exchange, the capital ! stock of companies retained by International Smelting and Refining Company had a market value of $487,089.18 at December 31. 1945, compared with $334,896.70 for the same companies at December 31. 1944 (details page 31). The company's share of the combined net Income of such companies (all being subsidiaries not wholly owned) amounted to $586.75 for the year 1945, whereas its equity in their combined net lose for the year 1944 amounted to $668.77. STATEMENT OF FUNDS RECEIVED ADD DISBURSED Funds were made available to the company during the year as follows: Operating profit before deducting non-cash Items and excluding net interest received from Anaconda Copper Mining Company (details page 7) Fixed assets disposed of Decrease in accounts receivable (excluding account with Anaconda Sales Company shown separately below) (details page 7) Increase in liabilities (excluding acoount with Anaconda Sales Company shown separately below) Net proceeds from sale of securities to Anaconda Copper Mining Company, April 19. 1945 (details page 3) $ 901,396.96 5,787.89 355,591.46 236,129.84 21,777.76 Funds were disbursed as follows: 1,520,683.91 Change in account with Anaconda 3ales Company: Balance December 31. 1944 - payable Balance December 31, 1945 - receivable Increase in inventories (details page 7) Increase in deferred items, principally Tintic District development Fixed assets purchased Additional cost in 1945 to date of sale of assets sold to Anaconda Copper Mining Company, principally expenditures on Copper Canyon, Guild-Adams and Victoria leases $ 606,785.55 384,990.57 991,776.12 65,440.81 110,971.44 44,197.13 168,601.37 1,380,986.87 Resulting in an Increase in cash (exclusive of that of leases) of $ 139,697.04 PNrC00000914 Operating profit before deducting neo-cash Items and Interest Net Income, per Income Account - page It Add back charges to Income not requiring cash: Accounts vrltten off or reserved for: Walker Mining Company Other Depreciation Less sundry Items Interest received from Anaconda Copper Mining Company on lease expenditures: Applicable to 1945 (January 1 to April 19) Applicable to prior years Less Interest paid on notes payable to Anaconda Copper Mining Company Per page 6 r $ 505,888.15 t 44,273.75 -Ju2?ls2L 47,602.12 638,712^85 1,733,-33 636,973.56 1,142,861.71 18,500.15 msA&tZZ 297,965.44 56,500,69 241,464.75 $ 901,396.96 Decrease In aeoountg receivable Current: Decrease In accounts receivable - trade Decrease in accounts with affiliates, principally Anaconda Copper Mining Company $ Less Increase in accounts vlth subsidiaries not wholly owned - Victor Consolidated Mining Company Decrease In current receivables Noncurrent: Net decrease in advances to subsidiaries not wholly owned, principally Walker Mining Company $ 151,604.19 Net decrease in advances to sundry mining companies (details page 25): Payments received $ 384,415.26 Less advances made 347.582.34 36,832.92 Decrease in installment house and land sales contracts 7,245.38 Less Increase in accounts with affiliates, principally North Lily Mining Company 195,682.49 11.675.08 Net decrease in receivables - not current Net decrease in accounts receivable, per page 6 $ 157,481.43 171,771.55 187.50 171,584.05 184,007.41 355,591.46 Increase in inventories Increase in finished metals and manufactured products (details page 20) $ 479,983.31 Less decrease in metals and manufactured products in process 339,800.44 Net increese in metals and manufactured products Deduct decrease in supplies Net Increase, per page 6 140,182.87 74.742.06 $ 65,440.81 PNYC00000915 g'SDERAL INCOME TAX -t v s 8 Net income or loss of International Smelting and Refining Company has teen included in the consolidated income and excess profits tax.returns filed by Anaconda Copper Mining Company since 1941. That part of the total 1945 taxes to be apportioned to International Smelting and Refining Company was not known in tine to te Included In the accounts for 1945 and therefore the estimated 1945 tax accrued ir. this report is necessarily tentative, although an estimated tax saving due to use of the consolidated basis was taken into account. a n c -r t id a t ic :: z t s iz r g ~-:c y p l a n t f a c il it ie s expenditures by International Smelting and Refining Company for emergency plant facilities, amounting .to 3513,261.89, have been fully amortized for Feder al Income tax punposes, as permitted under the Presidential Proclamation of September 29, 1945 in accordance with the provisions of the Internal Revenue Code. The statements In this report, however, are not on the tax basis, but Include amortization of these facilities at the rate of 20 per cent, for the year 1945 (as in prior years) and the Federal income tax deduction in the 1945 Income Account has been computed on this basis. The remaining balance at December 31, 1945 of facilities unamortized, amounting to 592,706.71, will be written off in the company's corporate ac counts in subsequent years. This unanortized balance is, however, offset by credits to be received from Anaconda Copper Mining Company, representing the company's share of a reduction in consolidated 1945 Federal income tax and refunds for prior years arising from the additional amortization allowable for tax purposes. Pending settlement of refund claims and determination of the amount of the 1945 consolidated tax, it is not possible to determine the portion thereof to be allocated to International Smelting and Refining Company. DISTRIBUTION'OF BALAHCZ SHEET AND INCOME ACCOUNT TO DEPARTMENTS The Balance Sheet and Income Account by departments (pages 14 and 15 re spectively) and their supporting schedules are presented in nine divisions, as follows; 1. Tooele plant 2, Miami plant 3; Lead refinery (including Bismuth refinery and Mixed Metals department) 4. Zinc oxide department 5. White lead department 6. Raritan refinery 7. Raritan electro-sheet department 8. Investments and advances 9. Not allocated 9 I The first seven divisions above, comprising the principal operating departments I 0f the company, include smelting, refining and manufacturing operations. The I eighth division takes in other activities, chiefly of a financial nature, and the ninth is composed of a few items for which there is no exact basis for allo cation to the other divisions listed. Details of accounts which appear in the last two divisions are giver, on pages 41 and 42 respectively. In making this arrangement, the accounts of the company as shown on its various ledgers have been redistributed and allocated to the appropriate division above. Land at last Chicago and land, buildings and equipment at Perth Amboy have been allocated among the various departments on a basis believed to be approximately correct. SCO?; 05 AUDIT 'Ve have made a general audit of the books and records of International Smelting and Refining Company and Its subsidiary corporations for the calendar year ended December 31, 1945. In connection with our audit v/e examined or tested the accounting records of the company and its subsidiaries and other supporting evidence and made a general review of their accounting methods, in cluding the system of internal check and control, and of the operating and income accounts for the year, but w? did not make a detailed audit of the transactions. | V/e examined into the sufficiency of the internal audit and examined i the reports of the internal auditors. Investments, securities, cash, notes receivable and capital stock have been verified by inspection, certificate or correspondence and found in order. Trade and Installment accounts receivable and advances to sundry min ing companies were examined in detail and those considered bad or doubtful have been written off or provided for in reserve. Accounts receivable of material amount were tested by selecting certain accounts for confirmation by direct communication with the debtors or, where possible, by direct comparison with the books and records of the debtor. This work has been carried out in conjunction with the company's internal audit staff. I Certificates of responsible officials have been received certifying to the correctness of quantities, descriptions and ownership of inventories and. we have made tests of the clerical accuracy of the inventories. Our audit Included physical tests of inventories. Inventories at all plants are not tested nor is a complete count made of inventories at any one plant. Inventories are not all tested at the close of the calendar year and the PNYC00000917 r physical tests are la no way intended as a xo substitute for the taking of physical Inventories by company employees. The purpose is to establish the existence of a proper system for talcing and recording physical inventories and to satisfy ourselves that the system is operating effectively and as planned. In the course of this work, a very substantial part (measured in money value) of the physical inventories is actually inspected by us. v.'hile this inspection is not our primary evidence of the existence and value of the inventories which must lie in the records of the company, it is of great value as a confirmation of the company's records and representations. Of stocks of metals and manufactured products held for the company by others or held by the caapany for the account of others a substantial part has been verified by direct comnunicatlon or, where possible, by direct comparison with the books and records of such other companies. It is the general practice of the company's internal auditors to make physical tests from time to time of inventories of supplies and, while these tests cannot take the place of similar tests by independent auditors, they are given full consideration in determining the nature and. extent of the tests made by us. Fixed assets, including investments, are carried at cash cost or, in the case of properties acquired for securities of the company, at the original par value of such securities. The values of fixed assets are shown on this basis and do not indicate current values, which could be established only by current appraisals. All other assets are carried at cash cost except patents, which have been written down to the nominal value of one dollar. We received during the year the usual courtesy from the officers and staff throughout the company. New York, November 19, 1946 INTERNATIONAL 3MBT COMPARATI DBOKHBER Page ASSETS CURRENT ASSETS: 16 Cash Accounts and notes receivable: 17 Trade, less reserve 18 Affiliates - current 19 Subsidiaries not whollyowned -current 20 Metals and manufactured products, finished and in process 14 Supplies on hand i DEFERRED CHARGES AND OTHER ASSETS: 21 Mine development I 22 Prepaid expenses | 23 Deferred expenses i 24 Installment land sales and advances to sundry mining companies, ' less reserve Advances to Tooele Valley Railway Company 26 27 28 ] 29 30 18 19 FIXED ASSETS: Mines and miningclaims, water rights and lands for metal producing and manufacturing plants Buildings and machinery at mines, reduction works, refineries and manufacturing plants Less reserve for depreciation Patents Investments: Securities of subsidiaries -wholly owned - not wholly owned Other investments Indebtedness not current: Affiliates Subsidiaries not wholly owned Dec $ 1,346,952.60 24,257.09 30^-275.98 27,242,920.04 19.894.SqR.62 ` 41,000.00 1,699,^83.86 3,226,276.68 395,199.29 ' LIABILITIES. CAPITAL STOCK AND SURPLUS CURRENT LIABILITIES: 32 Accounts and wages payable 33 Accrued taxes (debit #) 18 Indebtedness - to affiliates 29 - to subsidiaries - wholly owned 19 - not wholly owned 34 NOTES PAYABLE TO ANACONDA COPPER MINING COMPANY 35 RESERVE FOR WORKMEN'S COMPENSATION INSURANCE 36 CAPITAL STOCK - 200,000 shares authorised of $75 par value each: Issued and outstanding - 163,500 shares - 200,000 shares 13 SURPLUS $; :LTIKQ AHD RgPIHIBG COMPANY 'IVE BAIAHCE SHEET 31 1944 ATO 1945 11 comber 31. 1944 December 31. 1945 Decrease or lncrenap* 522,248.17 1,401,485.67 5,251,319.31 1.116.203.02 2,212,962.88 56,951.83 4,606.14 238,377.79 ____80.065.50 *i 656,584.84 $ 1,173,168.47 423,686.83 --------------187.50 8,291,256.17 1,597,042.80 5,391,502.18 932.403.71 2,592,964.14 213,747.65 33,676.44 9,185.26 2,480.16 $ 134,336.67* 8,577,533.53 173,784.13 399,429.74* 30,088.48 140,182.87* -- 183.799.31 286,277.36* 259,089.51 1,999,215.23 23,275.39 4,579.12* 235,897.63 80.065.50 ?.333.R7U. 6^ 1,450,588.94 7,348,324.42 1.00 5.261.959.83 .14,060.874.19 t 24,945,094.50 1,168,192.37 26,383,901.42 19.739.905.10 6,643,996.32 1.00 41,000.00 635,968.15 79,403.69 _____ 28.920.86 785.292.70 8.597.482.39 $ 17,434,105.43 282,396.57 704,328.10 1,063,515.71 3,226,276.68 79^03.69* $ 7,510,989.07 ,260,014.35 2,534.90# 610,738.97 23,896.53 _6fia. 1,892,795.76 10,500,000.00 52,376.64 12,262,500.00 ------237,422.10 * 24,945,094.50 * 1,3884767.34 57,194.20 l6]780.15 24,047.69 1,486,789.38 67,698.20 15,000,000.00 --8ZSo6i7,85 i 17,434,105.43 128,752.99* 59,729.10* 593,958.82 151.16* - 680.81 406,006.38 10,500,000.00 15,321.56* 2,737,500.00* 642.195.75* i 7,510,989.07 s O' oo oQ Q O az. INT3RKATI0KAL SMSLTINC Aim REFINING COMPANY SURPLUS ACCOUNT YEAH SUED DECB3ZR 51. 1945 13 Balance December 31, 1944: Surplus per books "/rite down of investment in National Tunnel & Mines. Company by amount of deficit of Utah-Delaware Mining Company on dissolution in 1937 Surplus per audit report Reversal of reduction above on account of sale of investment in National Tunnel k Mines Company to Anaconda Copper Mining Company in 1945 Net income of the year 1945 - page 12 per Balance Sheet, December 31, 1945 - page 11 $ 373,729.70 136,30 7,60 237,422.10 136,307.60 505,666.15 $ 879,617.85 i ] ti ! PNYC.00000922 BALANCE SHEET - DECEMBER 31 ASSETS CURRENT ASSETS: Cash Accounts and notes receivable: Trade, less reserve Affiliates - current Subsidiaries not wholly owned - current Metals and manufactured products, finished and in process Supplies on hand Total page 11 Ellmlnatlons* Tooele plant $ 656,584.84 372,182.83 1,173,168.47 423,686.83 161.74* 187-50 218,335-33 24,334.69 187.50 5,391,502.13 932,403.71 2,032,496.58 362,138.85 K 8 677 692 58 DEFERRED CHARGES AND OTHER ASSETS: Mina development Prepaid expenses Deferred expenses Installment land sales and advances to sundry mining companies, less reserve 213,747-65 33,676.44 9,185.26 2,480.16 12,787.89 ' 9,185.26 42,174.38 2 9 FIXED ASSETS: Mines and mining claims, vater rights and lands Buildings and machinery 1,168,192.37 26,383,901.42 Less* reserve for depreciation 19,739,905.10* Patents 1.00 Investments: Securities of subsidiaries - wholly owned 41,000.00 - not wholly owned 635#968.15 Indebtedness not current: Affiliates 79,403.69 Subsidiaries not wholly owned 28,920.86 368,768.83 56 7,137,790.28 3,103 5,979,404.13* 3,103 73-68 LIABILITIES 17,434.105.43 161.74* 4,601,051.97 1,505 CURRENT LIABILITIES: Accounts and wages payable Accrued taxes Indebtedness - to affiliates - to subsidiaries wholly owned 1,388,767.34 57,194.20 16,780.15 24,047.69 161.74* 216,074.93 18,065.34 15,538.82 278 14 RESERVE for workmen's compensation Insurance 67.698.20__________________ 31,820.19 1,554.487.58 161.74* 281.499.28 292 NET INVESTMENT - December 31, 1945 $ 15,879,617-85 - - 4,319,552.69 1,213 CAPITAL STOCK SURPLUS As above $ 15.000,000.00 879.617.85 * 15,879.617.85 NET INVESTMENT - December 31, 19*4 (deficit#) for comparison * 22,999,922.10 4,552,484.04 1,594 in l. 1945 - BY DEPARTMENTS Details of total Miami plant 8,822.41 677,626.15 Lead refinery Zinc oxide White lead department department 3,983.30 25,000.00 79,927*22 41,150.27 47,957.62 Raritan refinery 101,902.36 108,171.83 14,523.31 Raritan electro- sheet department Investments and advances - details page 41 Items not allocated to departments details pae 42 144,693.36 384,990.57 692,258.47 58,711.31 358,554.97 620,811.78 194,305.16 97,816.38 26,926.63 23,604.03 1,485,076.97 363,206.51 7,998.25 2,181.96 9,594.95 1,564.88 17,141.71 213,747.65 49,289.17* 56,419.72 130,665-27 22,073-16 13,243.90 409,751.25 4,349.45 .103,550.21 1,146,545-81 640,977.22 796,350.58 13,165,359-04 393,328.28 .103,550.21* 848,823.14* 507,074.54* 627,859.01* 8,553,576.70* 119,617.32* 1.00 162,920.79 41,000.00 635,968.15 79,330.01 28.920.86 ,505,614.97 970.236.27 869,864.52 447.602.28 7,111,556.28 286,058.66 1.161.887.46 480,394.76 278,035-48 14,291.38 292.326.86 ,213,288.11 214,027.32 6,137.45 43.24 8.708.70 4.889-01 2.503.04 228.916.71 4,889.01 2.503.04 741,319-56 864,975-51 445,099-24 675,611.52 20,267.92 1,359-83 24,047.69 5,018.09 1,567.89* 19.777.26 717,016.53 24.047.69 3,450.20 6,394,539.75 286,058.66 1,137,839-77 476,944.56 ,594,017.85 754,932-17 570,632.78 595,416.05 6,706,081.71 287,775.99 8,284,518.53 345,937.02j! Total PB e. 12 department elimination* Tooele nlsnt Miami plant Sales of copper zinc lead silver gold miscellaneous metals zinc oxide white lead electro-sheet copper residue, ores, etc. Premium payment on production in excess of quota. Tolls $ 1,214,393-*3 237,852.94 2,966,159.57 2,533,173.49 1,812,825.15 236,824.75 1,279,325-76 734,398.29 43,689.07 1,619,330.55 389,386.79 6,320,346.91 205.79* 32,890.72* 547,586.07* , 254.88* 261.52* 656,614.15 2,386,853.59 1,478,159.69 553,659.62 52,336.93 46,454.15* 1,810,413.71 ,,,, 2,358,331.82* 389,386.79 338,474.56 370,896.36 170,093-07 151,861,60 2.553,830,98 Sales and tolls 19,587,706.70 2,985,984.95* 7.665.899.04 3.246.682.01 Coat, of sales (credit*) Interdepartment 18,648,072.26 7,310,673-1-5 2.985,984.95* 601,166.96 1,488,346.69 1,748,094.35 18.648.072.26 2,985,984.95* 7,911,840.11 3,236,441,04 (Income or loss*) Provision for depreciation less net gain on disposal or dismantle ment of fixed assets 939,634.44 588,911.87 245,941.07* 196,225.19 10,240.97 Income or loss* from operations 350,722.57 442,166.26* 10,240.97 Other Income: Reimbursement by Anaconda Copper Mining Company of Interest on lease expenditures Other Interest and dividends receiv ed - net (debit*) Miscellaneous Income 297,965.44 10,405.96 6,593-24 . 2,088.23 98.94 57.48* 1,728.00 314.964.64 2,187.17 1,670.52 (Income or losa*) 665.687.21 439,979.09* 11,911.49 Interest on notes payable to Anaconda Copper Mining Company Federal Income tax - estimated 56,500.69 103,298.37 159,799-06 Net income or loaa* year ended December 31j 19*5 $ 505,886.15 439,979-09* 11,911.49 Net Income or lots* year ended December 31> 19**1 - for comparison $ 94,300.61* 344,208.98* 147,172.64 ED TKCSmSR 31, 19^5 - BY DEFARTHZHYS ant 6.36 3.07 1.60 Details of total Lead refinery Zinc oxide denartment White lead department 1,126,892.05 580,282.53 103,472.17 8,893-27 7,344.71 270,743-66 1,279,580.64 734,659.81 48,026.28 Raritan refinery . Raritan electro sheet denartmant 187,088.71 304,638.20 1,003,831.76 175,594-55 43,689.07 Investments and advances pafce 41 Items not allocated t< departments, paste 42 t 2.01 6.69 "35 1.04 0.97 429.690.05 2.256,574.78 1,935,221-10 245,253-28 2,180,474.38 76,100.40 0-97 35,742.06 40,358.3* _5,356,683.14 1,598,350-58 -73.4x639-81_ 7,027,836.36 1^507,267.34 343,868.44 1,168.72 389,863-21 5,885,090.09 232.64 1,508,436.06 733,731-65 5,885,322.73 89,914-52 928.16 1,142,513.63 43,689.07 52,984-32 205-79 53,190.11 9,501.04* 16.482.69 73,*31.83 .201-1.93;. 42-____ 314,312-41 . ___ 5,956-03 19.565-33* . 828,201.22 15,457-07* 8,504.36* 133,125-49 8,504.36* 8,504.36 133,125.49 133,125-49' 8,304.36 133,125-49- 7-48* 8.00 52 = 42____ 40.358-34____ 1.49 40,358.34 73,431-83____19,265.33* 73,431-83 19,265-33* 3,661.95 3,661.95 831,863.17 297,965.44 16,670.57 1,104.35 315,740.36 15,457-07* 324,244.72 831,863.17 15,457-07* 324,244.72 8,295-36* 8,295.36* 141,420.85* 56,500.69 103,298.57 159,799-06 301,219.91- 2.64 36,223-72 1,890.97* 21,701-99* 729,523-18 21,545-80* 110,605.27* 507,267.14' Cash in banks: Chase national Bank, New York Continental National Bank and Trust Company of Salt Late City, Utah First National Bonk of Salt Late City, Tooele, Utah 7/alker 3anJc and Trust Company, Salt Lake City, Utah Nevada Bank of Commerce - Battle Mountain Branch, Battle Mountain, Nevada Valxey National Bank, Globe, Arizona First National Bank in Fast Chicago, Indiana First National Bank of Nevada - Yerington Branch, Yerington, Nevada Firestone Park Trust and Savings 3ank, Akron, Ohio First Bank and Trust Company, Perth Amboy, New Jersey Less outstanding drafts on New York office. deposited in banks Petty cash Per Balance Sheet - page 11 December 31, December 31, 1944 1945 $ 192,916.23 123,479.82 90,909.33 80,597.30 725.91 18,042.10 15,682.90 . 4,064.44 25,000.00 7e,044.10 629,462.13 106,468.54 520,993.59 1,254.58 167,798.57 139,311.59 63,033.73 207,682.30 '8,672.41 11,193.19 25,074.25 60.729.46 723,545.55 68.650.74 654,894.81 1,690.03 522,246.17 656,584.64 PNYC00000927 ACCOUNTS AND ROTES RECEIVABLE - TRADE. LESS RE; For tolls and for metals and manufactured products: Total December 31, 124t Total December 31, 1945 American Smelting and Refining Company Inspiration Consolidated Copper Company Irvington Smelting and Refining Works $ 126,454.67 * 414,065.49 52,972.34 26.91 20,904.56 Metal3 Reserve Company 40,996.10 59,213-97 Miami Copper Company Sundry customers 570,038.73 198,460.20 610,485-04 153,222-87 For premiums on production in excess of quota Metals Reserve Company Sundry debtors 1,223,587.43 49,552-42 119,645.62 1,023,253.45 73,007.37 122,900.51 Cess reserve for doubtful notes and accounts 1,392,785.47 45,832.87 1,219,161.33 45,992.86 Toot plar 109,5 109,S 73, C 35.3 218,3 Per Balance. Sb&et - page 11. * 1,346,952-60 * 1,173,168.47 213,3 [VABLE - TRADE. LESS RESERVE 17 Total December 31, 12U1 Tooele plant Details of total at December 51, 1945 Miami plant Lead Refinery Zinc oxide department White lead department Raritan Refinery 126,454.67 52,972.34 20,904.56 59,213-97 610,485-04 153,222.87 1,023,253-45 109,947.90 109,947.90 52,972-34 610,299-91 663,272.25 gg/STg.-S?.. 71,314.21 22,972.93 71,314.21 16,506.77 47.279.77 63,786.54 20,904.56 59,213-97 185.13 11.655.96 91,959-62 73,007.37 73,007.37 122.900.51 .....35,?8o.U 1,219,161.33 218,335-38 45,992-86 14,353-90 677,626.15 56,954-29 79,927.22 71,314.21 30,163.94 63,786.54 15,828-92 16,212.21 108,171.83 1,173,168.47 213,335.38 677,626.15 79,927.22 41,150.27 47,957.62 108,171.83 PN*COOOO ACCOTOTS '.VTTK AFFIXJATES Accounts receivable Accounts payable December 31, 1944 Current: The American Brass Company $ 111.37 Anaconda Copper Mining Company 7,920.10 Anaconda Sales Company Anaconda v/ire and Cable Company 11,174.45 Chile Exoloration Company 50.43 Chile Steamship Company Incor oorated 492.81 Montana Hardware Company Mountain City Copper Comcar,'* {1) Sv/ar.sea Consolidated Mining Company Tooele Valley Hallway Company 4,507.86 December 31, December 31, 1945 1944 S 364,990.57 14,313.52 48.05 606,785.55 24,313.95 20.74 3,953.42 December 31 19'4n 15 43.24 1,198.09 1,352,52 13,586.24 Per Balance Sheet ! page 11 $ 24,257.09 423,666.83 $ 610,738.97 16,78C,15 Noncurrent: North Lily Mining Company (1) Dragon Consolidated Mining Company Empire Mines Company Per Balance Sheet page 11 $ 79,330 . 01 24.34 49.34 $ 79,403,69 JOTE 1 - Accounts receivable from Mountain City Copper Company and North Lily Mining Company at December 31, 1945 are shown above and at December 31, 1944 on page 19 due to the change in status of these companiea from that of subsidiaries not wholly owned to that of affiliates. >N C0 0 0 tf ACCOUNTS WITH SUBSIDIARIES NOT WHOLLY 0'iIMI) 19 Current: Dragon Consolidated Mining Conpany Empire Mines Company Mountain City Copper Conpany (1) Mountain View Mining Company Victor Consolidated Mining Company Ac co tints receivable Accounts payable December 31, December 31, December 31, December 31, 1944 1945 1944 1945 $ 22,50 30,253.46 $ 482.23 187.50 198.58 Per Balance Sheet page 11 $ 30,275 . 98 187.50 $ 680.81 Noncurrent: Eureka Bullion Mining Company $ 27,328.47 North Lily Mining Conpany (1) v/alker Mining Company 67,728.61 200,142.21 Yankee Consolidated Mining Conpany Per Balance Sheet page 11 $ 295,199.29 28 , 897.52 23.34 28,920 .86 NOTE 1 - See note on page 18. PHYC00000931 AMOUNT Finishedr Copper Zinc Lead Silver Oold Miscellaneous metals Manufactured products: Zinc oxide White lead Electro.sheet copper Prepaid billet coat Prepaid freight Less, reserves for freight. refining, etc. Total finished In process Per Balance Sheet - page IX Total - December 31, 19**** for comparison Total December 31, isii Decrease or Increase* Total December 31, 1945 $ 1,5*2.929-46 89,914.96 409,534.1(2 674,375.29 653,374.13 36,648.32 161,969.4(1 251,360.46 11,830.39 43,506.63 9,555-12 3,884,998.64 776,688.04 3,108,310.60 2.143.008.71 t 5,251.319.31 11,622.35* 99,704.31* 64,984.03* 2,993.06 270,505.45 296,461.55* 46,999-40* 80,234.58 3,832-14. 30,184.37 2.256.40 129,765-64* 350,217.67 479,983.31* 339.800.44 140,182.87* 1,554,551.81 189,619-27 474,518.45 671,382.23 382,868.68 333,109-87 208,968.84 171,125.90 7,998.25 13,322.26 7.298.72 4,014,764.28 426.470.37 5.588,293.91 1.803.208.27 5,391,502.18 i 5,251,319.31 POUNDS Finished; Copoer Zinc Lead 17.300,799 1,160,028 8,991,783 95,309* 1,199,005* 1,431,009* 17,396,108 2,359,033 10,422,792 CENTS PER POUND Finished: Copper Zinc Lead 8.918 7-751 4.555 SILVER - total for all departments - not covered by affidavits - covered by affidavits As above GOLD - total for all departments - as above 8.936 8.056 4.553 Ounces 1,797.,557. 6,,325 61,,744 1,865,,628 11,134 30 STORED PRODUCTS, FINISHED AND IH PROCESS 20 ll 'er 31, iS Tooele plant Miami plant Details of total at December 31. 1945 Lead refinery Zlno oxide White lead department department Raritan refinery Raritan electro-sheet department 351.81 519-27 518.45 582.23 368.68 109.87 968.84 L25-90 998.25 522.26 '98.72 764.28 *70.37 '93-91 '08.27 502.18 304,358-90 383,430.77 258,169-00 26,951-60 525-44 973,435.71 86,363.23 887,072.48 1.145.424.10 2,032,496.58 19,049.38 15,424.92 34,474.30 34,474.30 657,784.17 692,258.47 71,851.10 227,390.73 16,179-93 78,539-41 393,961.17 35.406.20 358,554.97 358,554.97 189,619.27 218,867-63 208,968.84 19,236.58 171,125.90 1,250,192.91 166,773.12 324,312.23 35,177.39 3,356.04 3,942.68 13,322.26 620.8n.78- 194,305-16 1,789,777.91 304.700.94 620,811.78 194,305.16 1,485,076.97 620,811.78 194,305.16 1,485,076.97 7,998.25 7.998 25 7,998.25 7,998.25 2,279,726.08 494,937.92 357,196.26 300,079-24 277,271.59 1,530,277-83 11,830.39 '6,108 ,033 ',792 3,083,004 8,582,373 1,539,360 2,359,033 301,059 14,313,104 8.936 8.0J8 4.553 9.872 4.468 icea 7,557.92 5,325.35 1.744.74 5,628.01 Price Amount 34.75 4 624,698.16 44.75 2,830.61 71-0238 43,853-46 35-9369 4 t 671,382.23 4.30 % 34-336 $ 382,868.68 4.668 8.038 6.390 8.735 MUTE DEVELOPMENT 21 Copper Canyon lease Guild-Adams lease Victoria lease Tintic District Per Balence 3heet - page 11 Balance December 31. 1944 $ 1,146.219.50 819,764.65 246,978.73 Additions (see note belov) 213,747.65 Sold to Anaconda Copper Mining Balance Company (see December 31, pafie 3) 1943 1,146,219*50 -- 819,764.65 -- 246,978.73 -- 213,747.65 $ 2,212,962.88 213,747.65 2,212,962.88 213,747.65 NOTE - A.dditlons to Tintic District development are composed of: Balance at December 31, 1944 transferred from "Mines and Mining Claims" - page 26 $ 91,990.76 Expenditures, year 1945 121,756.89 Total - as above $ 213,747.65 p N*C 0 0 0 0 0 9 3 4 PREPAID EXPENSES 22 Prepaid insurance Sundry Ter Balance Sheet - page 11 December 31, isiii $ 55,476.25 1,475.58 December 31, 12it5 32,131.79 1,544.65 Decrease or Increase* 23,344.46 69.07* $ 56,951.83 33,676.44 23,275.39 1 PNYC00000935 DEFERRED EXPENSES 23 Tooele plant: Slag hauling Crushing reverberatory matte Lead refinery Per Balance Sheet - page 11 December 31 1944 December 31, Increase or 1945 decrease* $ 4,597.82 4,597.82 8.32 $ 4,6o6.l4 1,950.92 7,234.34 9,185.26 9,185.26 2,646.90* 4,587.44 8.32* 4,579.12 7 INSTALLMENT LAND SALES AND ADVANCES TO SUNDRY MIKING COMPANIES, LESS RESERVE Installment land sales - details below Advances to sundry mining companies - details page 25 Reserve for doubtful accounts Per Balance Sheet - page 11 December 31, December 31, 1944 12i5 $ 21,502.97 12,153.62 Decrease 9,349.35 266.515.24 288,021.21 40.645.42 $ 238,377.79 39.615.71 51,769.33 4d.289.ir 2,480.16 226,902.53 236,251.88 - 354,25 235,897.63 Installment land sale Tom Buzzlanla contract Installment house and land 3ales Tooele Total Details of installment land sales Balance December 31, 1944 $ 7.934.74 13.56e.23 .. 21^5.02.97 Charges (debIts): Interest Tames 173.09 749.10 293.20___ JM________ 1.,042,.30___ 922.19 293.20 1.215.39 Deductions (credits): Payments received 1,764.94 Transferred to current accounts receivable 1,584.78 Amount written off under modification of Agreement dated May 18, 1945 519-19 Discounts allowed for prepayment of Installments 6,639.23 56,60___ 8,404.17 1,584.78 519.19 56.60 ___ 6^.655 u3. _ 10.564.74 Balance December 31 19^5 $ 4,238.92 7,914.70 12,153.62 K\ O fa S' f4 _ CQ O CM o o K\ i<ii <tii in ft vo < r\ *, 9) <-- >-- 99 H9 o*> *oc> O' VO CM a\ in VO K\ K> vo 6\ 58 S 3m a in 9 H4J H 4-1 fa *0 rs <h co vo JT O CM K> CM O OJ m in co o m un * c m in t>* ^4 m JT m K> . CM . co lO * m H K\ si a a o mao CM CM K1 .-4 00 in co o o io in co 3 mi O CM t- KVsrGo in 58 CM <t o < CM O CD O O j et GO CO o O' HCM m CM CM moot- mm am^sr CsO 5 4T VO ov * CM Ol VO JT m CM ft<i\ lAKVin jCD O <j\0 CM co *4 eoeotr mi mK\cj Tr s m o m mm m co JT m CU CO > 1o-4 rH -U ^ * 9 " SSS* ooo to < /: II a> 9S fa o r! - g- 95? o a a p a H 9 S3 3 oO *f-4lij o f sa3| a5 *a 1 Ko 9aSHo fl o c _ 2o-j > O OXJ *o* u 4 u a C fa 9 fa MfiH fa O.J3 hid juooifeaA s? a s a M S53S 3g*S an, O a*op h-4 ^oo4 ou haoda H / -I si 2*5 '-8 2 S&S &S3 "St ftO 3 0.0 0} oo a, A < 55 SS *4 S 0.0. II O JO W - O * 3 4>- , <o n O' oo o o o u >. z a MIKES AHP MIKING CLAIMS, WATER RIGHTS AKD IANDS 26 Lands for metal producing plants: Tooele plant Miami plant Lead refinery Harltan refinery Lands for manufacturing plants: Zinc oxide department White lead department Raritan electro-sheet department Other lands: Tooele Miami Water rights - Tooele Total lands and vater rights Mines and mining claims: Investments and advances: Salt Lake City office Miami Ouild-Adams lease Total mines and mining claims Per Balance Sheet page 11 Balance December 31, 1244 Deductions - see notes belov Balance December 31, 1202. . 353,665.89 56,191.60 130,665.27 409,751.25 . 950,274.01 353,665.89 56,191.60 130,665.27 409,751-25 950,274.01 22,073.16 13,243.90 4,349.45 39,666.51 9,004.00 228.12 9,232.12. 6.250.00 1,005,422.64 22,073.16 13,243.90 4,349.45 ' 39.666.51 151.06(1) 151.06 8,852.94 228.12 9.081.06 6,250.00 151.06 1,005,271.58 234,853.01 20,058.54 190,254.75 ' 445.166.30 1,450,588.94 91,990.76(2) 190,254,75(3) 142,862.25 20,058.54 282.245.51 162,920,79 282,396.57 1,168,192.37 BOTE 1 - Lot in Tooele City, Utah, sold. BOTH 2 - Transfer of Tintic District develojment expenditures as of December 31, 1944 to Mine Development - page 21. BOTE 3 - Sale of investment in Ouild-Adams lease to Anaconda Copper Mining Company - see page 3. PNYC00000939 IS fl 53 $ *f O N CSI - i % c* t&- m n CNo--s inQno imOnv wm -v*s- l c- m* \o* o so in m <. nO O <7i \D Cft " vo t- r4 no '- 2 & $ CXI t j +a _ * 2 rH O' 3b ^ O 3 *-4 & ! Jint \o no Os CO $ VO 00 m m cv in co VO l-- OS ro Os VO CoO VO CCDO m s in co ^o CmSI **m>tMs s OS PO CO VO no** <n 04 Jf CO smo opx ox r in JT Cl fa* no ^ 3s *a 81 S < *J *ot fl *H 31 I Si M II a | fa U s fa Tol s 5 a I I 3 1 ii s O s 3 i o fa Pi m tc tJ h o g . *J s v fa. 0 1 *> g- a1 s *q ? 7o fHa 3HH o fa Pt +> 3 fi H ftco 4hO4 faa4 5" as rI3 eo NOTE 2 - Accrued on m onthly b a la n ce s. INVESTMENT IS SECURITIES OF WHOLLY OVSEP SUBSIDIARIES Shares Par value New Jersey Storage and Warehouse Company Raritan Terminal and Transportation Company 10 400 $ 1,000.00 No par Investment Ret Income (loss*) of the year 1945 (see note below) $ 1,000.00 40,000.00 $ 6.00* 601.66 Per Balance Sheet, December 51, 1945 - page 11 $ 41,000.00 Less Indebtedness to wholly owned subsidiaries: Rev Jersey Storage and Warehouse Company Raritan Terminal and Transportation Company Per Balance Sheet, December 31, 1945 - page 11 $ 668.93 Z2j 2&s2. 24,047-69 N6t investment 16,952-31 The above net Investment at December 31, 1945 Is represented as follows: Assets Lands Railroad construction $ 20,065-35 Less reserve for depre ciation 20,065.35 7,891.34 Less liabilities: Trxes accrued 7,891.34 96.95 Net assets 7x7?4^g Difference, being accumulated operating deficits to December 31, 1945 $ 9,157-92 $ 595-88 Net Investment - December 31, 1944 Net Increase In Indebtedness to Raritan Terminal and Transportation Company and New Jersey Storage and Warehouse Company Net investment - December 31, 1945 - as above $ 17,103.47 151.16 $ 16,952-31 PNYC00000942 INVESTMENT B? SECURITIES 0? SUBSIDIARIES EOT '.'/HOLLY O'.VNED 30 Balance December 31, 1944 $ 1,699,483.86 Deduct ions: Capital stock of companies sold to Anaconda Copper Minins Company (details page 3): Mountain City Copper Company $ 996,987.93 North Lily Mining Company 66,527,78 1,063,315.71 Per Balance Sheet, December 31, 1945 - page 11 $ 635,968,15 Details of balance at December 31. 1945 Shares Par value Investment Equity in income or loss* of the year 1945 Comet Coalition Mines Company 760,246 # 190,071.50 $ 340,891.71 $ Eureka Bullion Mining Company 756,000 37,800.00 187,923.49 Mountain 7iew Mining C ompany 728,420 72,842.00 68,806.23 773.48 7ictor Consolidated Mining Company 365,390 182,695.00 16,306.52 156.61* Yankee Consolidated Mining Company 501,00 5 50,100.50 20,040.20 27.92* As above $ 566.75 $ 635,966.15 ===== p NYC00000943 INVESTMENT IN AND INDEBTEDNESS OF SUBSIDIARIES NOT WHOLLY OWNED 31 Market quotations Investment - Indebtedness Total December 31, f Page 3 not current Csee note 1) 1945 Comet Coalition Mines Company Eureka Bullion Mining Company Mountain View Mining Company Victor Consolidated Mining Company Yankee Consolidated Mining Company $ 340,891.71 187,923.49 68,806.23 18,306.52 20,040.20 28,897.52 23.34 340,891.71 $ 228,073-80 216,821.01 166,320.00 68,806.23 18,306.52 20.063.54 49,168.35 10,961.70 32,56503 Per Balance Sheet, December 31, 1945 - page 11 $ 635,968.15 28,920.86 664,889-01 $ 487,089.18 Indebtedness not current December 31, December 31, Decrease* or 1944 1945 Increase Walker Mining Company North Lily Mining Company (2) $ 200,142.21 67,728.61 200,142.21* 67,728.61* Eureka Bullion Mining Company 27,328.47 28,897.52 1,569-05 Yankee Consolidated Mining Company , ..a?-3.4 23-34 Per Balance Sheet - page 11 $ 295,lS9-29 28,920.86 266,278.43* NOTE 1 - The total Investment of International Smelting and Refining Company In Its subsidiaries not wholly owned Is considered to Include both the cost of the capital stock of these companies and the Indebtedness, If any, which cannot be liquidated from the net current assets of the debtor companies. NOTE 2 - Not a subsidiary after April 19, 1945- North Lily Mining Company's indebtedness to International Smelting and Refining Company amounted to $79,330.01 at December 31, 1945 and Is shown on page 41. PN7C00000944 52 ACCOTOTS ASP WAGES PAYABLE .< Ore purchases - Tooele plant Reserve for unearned tolls - Raritan refinery - Miami plant Wages payable - details belov Payroll deductions for employees' war bond purchases Employees' deposits - Tooele plant Reserve for repairs - Raritan electro sheet department - details belov Sundry accounts payable Per Balance Sheet - page 11 December 31 1244 $ 142,578.31 506,625-34 110,882.86 30,125.99 7,104.43 8,070.84 454,626.58 December 31, 1202. 33,212.10 485,828-71 234,991.00 112,059-72 20,949-74 5,883-63 4,221.13 441,621-31 $ 1,260,014.35 1,388,767.34 Details of Wages payable Tooele plant Copper Canyon lease Miami plant Lead refinery Raritan refinery Investments and advances Victoria lease As above $ 24,403.61 12,900.24 17,157.93 17,114.64 317,,759096-.5868 $ 110,882.86 28,735.63 -- 15,415-93 20,110.57 - -47,797.59 112,059-72 Details of Reserve for repairs - Raritan electro-sheet department Balance December 31, i20 Additions - Deductions - Balance charged oper expended for December 31, ating expense repairs Reserve for lead anode renewals Reserve for drum surface renevals $ 2,999-08 5,071.76 382.20 846.61 1,027.17 4,051-35 2,354.11 1,867.02 As above i 8,070.84 1,228.81 5,078.52 4,221.13 PNYC00000946 D etails of t 3* f BOTES PAYABLE TO ANACONDA COPPER HIKING COMPANY Balance December 31. 1944 $ 10,500.000.00 Retirements (see page 3): Note dated June 27, 1944, due December 31, 1950, with Interest at 2# $ 8,000,000.00 Note dated June 27, 1944, due December 31, 1947, with Interest at 1-3/4J6 2,500.000.00 10,500,000.00 Per Balance Sheet, December 31, 1945 - page 11 % Interest accrued and paid Balance December 31, 1944 Accrued 1945 - per Income Account - page 12 Paid 1945 (see page 3) Balance December 31, 1945 $ 2,239.01 56.500.69 58,739-70 58.739.70 $ PNYC00000947 35 RESERVE FOR WORKMEN'S COM?ENSATIOK IKSUKANCE i Tooele plant Lead refinery Zinc oxide department White lead department Raritan refinery Balance December 31, 1944 $ 27,341.95 6,445.87 5,979-33 180.83 12,428.66 Additions - details belov Deductions compensation paid, medical and hospital expenses, ate. Balance December 31 38,305-24 8,318.57 4,554.01 4,216.96 16,099.26 33,827.00 6,055-74 5,644.33 1,894.75 8,750.66 31,820.19 8,708.70 4,889-01 2,503.04 19,777.26 Per Balance Sheet page 11 1 52,376.64 71,494.04 56,172.48 67,698.20 Details of additions - year 1945 Tooele plant Lead refinery Zinc oxide department Vnlte lead department Raritan refinery Total Total as above $ 38,305-24 8,318.57 4,554.01 4,216-98 16,099-26 71,494.04 Charged cost 30,293-24 8,318.57 4,554.01 4,216.96 16,099-26 63,482.04 Pay roll deductions 8,012.00 8,012.00 PNYC0000094B CAPITAL STOCK 36 Issued and outstanding December 31, 1944 Issued In 1945 Par value per share Shares Amount $ 75-00 163,500 $ 12,262,500-00 75-00 36,500 2,737,500.00 Issued and outstanding, per Balance Sheet, December 31, 1945 - page 11 75-00 200,000 $ 15,000,000.00 Outstanding stock at December 31, 1945 was Issued as follovs: Date issued Issued by International Smelting Company to Anaconda Copper Mining Oomoany for: May 26, 1914 Properties of International Smelting * Refining Company (dissolved 1914) $ 100.00 95,000 $ 9,500,000.00 - Nov. 30, 1915 Cash 100.00 25,000 2,500,000.00 $ 100.00 120,000 $ 12,000,000.00 Dec. 21, 1934 Outstanding after reduction In par value of stock from $100 to $75 and change of corporate name to Inter national Smelting and Refining Company $ 75-00 Issued by International Smelt ing and Refining Company to Anaconda Copper Mining , Company for: Dec. 21, 1934 (Together with $6,000,000 principal amount 15-year 6% debentures) Properties of International Dead Refining Company and Raritan Copper Works 75-00 Oct. 1, 1936 Properties of Anaconda Lead Products Company 75-00 120,000 $ 9,000,000.00 30,000 2,250,000.00 13,500 1,012,500.00 o H 4 < 0 C ON fm On * * a 8 ON lA cr CO HH 8 CJl t-.*r iAfo j J f-<"0 04 CemD 3 ir m^fco if rocarl t-vo in <- H hI s* CV w ir co VO rH <nvo tne^ ONH* CM OJ CO* H ON 0*-< 8 SJH cc . o O' OJ st On vo VO 8 IH * 0> in VO (A vo 8 lOOiH CV rH On <\ r- Ost t^C tO OVHCO IT t- H OlJ t>- 04VO H 8 H 0) 6,980.00 e Q w II b &S &.. C5 O tict. 1^3 Obr( S?l I&8. .53 > rt3 S35 S5 bCI Ob 0,1-4 4J 0.H 03t4 oo > CM rH C H> HahCJ> d3 a. BB,caa5? Crj H OH C " ii4lHO<tHiP>Id>l4gWlHcbhHHoo.HeH3tocfo0l.b5Ofot.fhi aoSh|3b a^<p|2j* |52o 235*5"3Is 05 52*g g |5 O O8 mOs ov a imsu is H O has 4>ofl bh* H * S 5? oC_ O a3 H H HX0 c H> 2o U 2 a. D ividends re ce ive d : P ark-O tah C o n s o lid a te d M ines Company * i .#' O to O' oo o ooa >" az v ** * * oO &o CO VO sa CO 00 ON CO ro f- pH o CO <n vo p H f*- CVI p H vo ON O^t _ O CVN Oj T\A lrAoOmNt- VoO c SI-B co If 3 o Hs o Q M i PNTC00000951 GAIN OK DISPOSAL OR DISMANTLEMENT 0? FIXED ASSETS 39 * Coat of buildings and machinery sold or dismantled - page 27 Accumulated depreciation - page 28 Net salvage Income or expense# Gain (loss*) Tooele plant: Obsolete plant and prior years' dismantlements not previously recorded $ 705,262.43 703,262.43 Other dismantlements 15,190.70 11,752-73 7.289-01 3,851.04 718,453.13 715,015-16 7,289.01 3,851.04 Lead refinery 30,786.09 30,786.09 1,665.23# 1,665.23' Zinc oxide department (AJcron plant salvage) 13.05 13-05 Per Income Account, year 1945 - page 12 $ 749,239-22 745,801.25 5,636.83 $ 2,198.86 FEDERAL INCOME TAX Additional assessment on 1939 normal and surtax Estimated current year's tax Per Income Account, year ended December 31, 1945 - page 12 40 $ 25,498.37 77,300.00 $ 103,298.37 ,,nno0953 DETAILS OF m Total pages 14 and 15 Subsidiaries Subsidiaries not wholly wholly owned owned Nc C BALANCE SHEET ITEMS DEFERRED CHARGES: Tlntlc district development FIXED ASSETS: Mines and mining claims, etc. Investments: Securities of subsidiaries: Wholly ovned Not wholly owned Indebtedness not current: Affl Hates Subsidiaries not wholly ovned 213,747.65 162,920.79 41,000.00 41,000.00 635,968.15 635,968.15 79,330.01 23.920.86_____________________28,920-86 1,161,887.46 41,000.00 664,889.01 7S 7S CURRENT LIABILITIES: Indebtedness to subsidiaries wholly owned 24,047.69 24,047-69 NET INVESTMENT 1,137,839-77 16,952-31 664,889 01 7' INCOME ACCOUNT ITEMS Cost of sales (credit*) Income* or loss from operations Other Income: Reimbursement by Anaconda Copper Mining Company of interest on lease expenditures Other Interest received - net Miscellaneous Income Net income (loss*) 8,504.36* 3,504.36* 297,965.44 16,670.57 1.104.35 315,740.36 324,244.72 2,317.63 2.317.63 1,378.88 1,378.88 939.75* DETAILS OF INVESTMENTS AMD ADVANCES ldiarles North Lily wholly . Mining >vned Company Details of total Walker Mining Company National Tunnel and Mines Company Tooele Valley Railway Company Copper Canyon lease GulldAdans leaae Victoria lease Mines depart ment, outside exploration, etc 213,747.65 162,920.79 J.96B.15 1.920.86 t,889.01 79,530.01 79,330.01 376,668.44 1,889.01 79,330.01 376,668.44 \317.63 J.317.63 378.88 L,378.88 938.75* 44,273-75 44,273-75 55,095.74* ' 55,095.74* 14,558.22 201,211.02 82,585-52 14,168.90 733-47 14,558.22 733-47 201,211.02 82,585.52 14,168.90 1,104.35 1,104.35 44,273-75* 14,558.22 733-47 201,211.02 82,585-52 14,168.90 56,200.09 ,lly Mining Company under provisions of Tintlc Bullion Lease agreement. DETAILS OF ITEMS HOT ALLOCATED TO DEPARTMENTS 42 b a l a n c e s h e e t it e ms Assets: Cash - Chase National Bank, New York Accounts receivable - Anaconda Sales Company Reserve for doubtful accounts (credit*) Total assets Liabilities : Accounts payable: Chadbourne, Wallace, Parke and Whiteside Employees' portion of social security taxes on New York employees Taxes accrued: Federal Income tax (net debit*) New York state franchise tax Employer's portion of social security taxes on New York employees Total liabilities $ 5,000.00 18.09 2,177.27* 500.00 --iPJLjg $ 144,693.36 384,990,57 49.289.17* 480,394.76 5.018-09 la5L39* 3.450.20 Excess of assets over liabilities - urge 14 $ 476,944.56 INCOME ACCOUNT ITEMS Cost of sales: Administrative expenses. New York office Capital 3tock tax Employer's portion of social security taxes on New York employees Sundry taxes Other income: Interest (paid) Loss, per pages 4 and 15 Interest on notes payable to AnacoDda Copper Mining Company Federal Income tax - page 40 $ 122,565-41 10,000.00 11.20 548.38 133,125-49 141,420.85 56,500.69 103.298.37 159,799-06 p N YC 00000956 Page ALPHABETICAL INDEX 32 " 17 24 18 19,31 33 31 24 18 Accounts and wages payable Accounts receivable - trade, less reserve . Installment, etc. Accounts with affiliates Accounts with subsidiaries not wholly owned Accrued taxes Advances to subsidiaries not wholly owned Advances to sundry mining companies Affiliates, accounts with 14 3alance Sheet . by departments 11 - comparative 27 Buildings and machinery 36 Capital stock 16 Cash 23 Deferred expenses 28 Depreciation, provision for 28 Depreciation, reserve for 21 Development, mine 39 Disposal or dismantlement of fixed assets, gain on 37 Dividends received 23 Expenses, deferred 22 Expenses, prepaid 40 Federal income tax 39 Fixed assets, net gain on disposal or dismantlement of 6,7 Funds received and disbursed 39 Gain or loss on disposal or dismantlement of fixed assets 15 Income Account - by departments 12 - comparative 18 Indebtedness of affiliates 18 Indebtedness to affiliates 31 Indebtedness of subsidiaries not wholly owned - not current 29 Indebtedness to subsidiaries - wholly owned 19 - not wholly owned 24 Installment land sales, etc. 35 Insurance, reserve for workmen's compensation 37 Interest and dividends received 20 Inventories, finished and In process 31 Investment in and Indebtedness of subsidiaries - not wholly owned 29 - wholly owned 30 Investment in securities of subsidiaries not wholly owned 41 Investments and advances, details of 42 Items not allocated to departments, details of Leads, mines and mining claims, water rights and Loss or gain on disposal or dismantlement of fixed assets 43 Machinery, buildings and Metals and manufactured products Mine development Mines and mining claims, vater rights and lands Miscellaneous Income Notes payable to Anaconda Copper Mining Company Operations by departments - comparative Prepaid expenses Profit on plant operations Profit on sale of land, details of Reserve for - depreciation - workmen1s compensation Insurance Sales and earnings, by departments Securities - of subsidiaries - not wholly owned - wholly owned Subsidiaries not wholly owned, accounts with Subsidiaries, Investment In and Indebtedness of - not wholly owned Subsidiaries, Investment In - wholly owned Surplus account Taxes accrued Water rights Working capital Workmen's compensation Insurance, reserve for