Document KJmoq1dz1bzEZ3yE6Ndm6gjDN

Saint Joseph Lead Company Annual Report -- 1925 America's Corporate Foundation; 1925; ProQuest Historical Annual Reports Pg- 1 . Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. PRESIDENT'S ANNUAL REPORT TO THE STOCKHOLDERS OF THE St. Joseph Lead Company FISCAL YEAR ENDING DECEMBER 31, 1923 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. PRESIDENT'S ANNUAL REPORT TO THE STOCKHOLDERS OF THFC ST. JOSEPH LEAD COMPANY FISCAL YEAR ENDING DECEMBER 31, 1925 In the year 1925 dividends to the amount of $5,745,098.00 in cash and a 25% stock dividend of 391,096-5/20 shares have been paid to stockholders, and to minority stockholders in subsidiary companies $164,213.00. The earnings for the year, after deducting all charges for depreciation, deple tion and reserve for Federal Taxes, resulting from the operation for the fiscal year were-$9,573,146.32. Your mines and mills in St. Francois County produced 4,628,746 tons of ore and 247,106 tons of concentrates. There was produced by Kansas Explorations, Inc., a subsidiary of this com pany, from its properties in the Tri-State District in Southwest Missouri, Kansas and Oklahoma, 264,702 tons of ore; 1898 tons of lead concentrates and 15,855 tons of zinc concentrates. The smelter production was 154,627 tons of pig lead. The sales of pig lead for the year amounted to 154,654 tons. (This does not include sales of lead purchased from the Bunker TIill & Sullivan Mining and Concentrating Company.) FINANCIAL In December the Mississippi River & Bonne Terre Railway, one of your sub sidiary companies, disposed of all of the stock of the St. Francois County Railroad Company at a net loss of $266,951.60. This little interurban electric road, connecting the towns of Flat River and Farmington, has been unable for some time past to earn its operating expenses. Your company in April last paid off the fifth serial note which was incurred in the purchase of the mines of the Federal Lead Company, It likewise retired the 3 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. $748,000 par value of bonds due on account of the Mississippi River & Bonne Terre Railway mortgage. So, that at the present time, your company has no funded debt of any kind and owes no money other than current liabilities as set forth in the balance sheet. c Your company's holdings of Liberty Bonds, certificates of indebtedness and other short time securities on December 31, 1925, were as follows: .V ' $ 5,000 City of Indianapolis 5*4%...................... due Jan.1, 1926 250.000 Washington Water Power Co. 4f4%................ " Feb. 2, 1926 150.000 Federal Intermediate Credit Bank 4j4%............ " Mch. 14, 1926 210.000 Federal Intermediate Credit Bank 414%............ " Mch. 15, 1926 250.000 Federal Intermediate Credit Bank 4j^%............ " May 15, 1926 1,000,000 New York City 4%. .................................... " Mch.19, 1926 250.000 New York City 4%................ ............. , ............." Mch. 22, 1926 500.000 Camden County, N. J. 4f4%.......................... .. . " Apr. 15, 1926 500,000 Dominion of Canada 4%...................................... " Sept. 1, 1926 1,000,000 U. S. Treasury Certificates 414%........................." L300,000 U. S. Treasury Certificates 424%........................." 500.000 U. S. Treasury Certificates 4f4%..................... " 300.000 State of Missouri 5%......................................" 1,025,000 Third U. S. Liberty Loan 4RJ%,,. -......................" Sept. Mch. Dec. Mch. Sept. 15, 1926 15, 1927 15, 1927 1, 1928-36 15, 1928 Federal Income Taxes, amounting to $990,115.50 were paid in 1925. Final audit and approval by the Bureau of Internal Revenue on account of the year 1917 and subsequent years, has not yet been received. GENERAL ' The year 1925 has been a record year in the history of the company. The largest production, the largest sales coincident with the highest price ever received for its product, have resulted in a record of earnings. Stockholders will be unwise to regard a year like 1925 as anything but excep tional. The market price of lead has been out of line with other basic com modities and history teaches us that such conditions cure themselves and a wise man does not count on their continuance.1 Clinton H. Crane, ' President. 4 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. BALANCE SHEETS 5 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH AND SUBSID]i CONSOLIDATED BALAJK II Capital, Assets : ASSETS Ore reserves and mineral rights, including appreciation arising from revaluation........................................................... $30,370,196.93 Less--Reserve for depletion..................................................... 16,107,250.50 $14,262,946.43 Buildings, plant and equipment....................................................... $14,791,958.91 Less-- Reserve for depreciation.,.......................................... 3,160,669.05 11,631,289.86 Railroad property and equipment............... ................................. $ 3,753,679,85 Less---Reserve for depreciation............... ............................... 619,206.64 3,134,473.21 Investments : Sundry securities and loans........................... Mine La Motte (prospecting expenses)... $29,028,709.50 $ 733,883.71 231,182.09 965,065.80 CURRENT AND WORKING ASSETS.' Inventories: Read and zinc on hand and in process Materials and supplies............................ $ 932,392.04 1,822,875.46 Notes and accounts receivable............... Marketable securities .............................. Cash in banks, on hand and in transit $ 2,755,267.50 2,527,109.58 7,297,894.07 2,696,663.26 35,276,934.41 Deferred Charges : Prepaid insurance, taxes, etc................. 248,940.43 $45,519,650.14 We have examined the books and accounts of the St. Joseph Lead Company and its subsidiary companies for the year ending December 31, 1925 and we certify that, in our opinion, the above balance sheet at that date fairly sets forth the financial position of the company and that the relative surplus account is correct. 56 Pine Street, New' York, February 15,1926. Price, Waterhouse & Co. 6 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. IEAD COMPANY &PANIES KftEET, DECEMBER 31, 1925 Capital Stock : LIABILITIES Authorized--2,000,(MX) shares of 10 each. Issued--1,996,722 shares of 10 each........................ Less--In treasury--46,332 shares of $10 each. Scrip outstanding...................... ....................... Minority Interest in Subsidiary Companies; Capital stock, par value.................................. Proportion of surplus applicable thereto... Funded Debt............................................................ Current Liabilities : Accounts payable................................................ Wages accrued.............................. ...................... Interest and property taxes accrued............ Provision for 1925 Federal income tax........ Dividends declared, payable quarterly in 1926 Reserve for Contingencies, Etc. : ; ; (Including Federal taxes of prior years).... Surplus, per statement attached........ ................. $20,000,000.00 19,967,220.00 463,320.00 $19,503,900.00 1,188.50 $19,505,088.50 $ 235,950.00 105,815.37 341,765.37 $ 1,983,784.18 127,836.14 54,650.49 1,926,695.97 $ 4,092,966.78 5,851,170.00 9,944,136.78 1,415,917.79 14,312,741.70 $45,519,650.14 1 7 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATED SURPLUS ACCOUNT, DECEMBER 31, 1925 Suri'MJS at December 31, 1924, including surplus arising from revaluation of ore reserves and mineral rights.......... ................................ :........................... $17,543,091.25 l,css--Adjustments of surplus at December 31, 1924: Proportion of surplus applicable to minority interests.. $ Difference between par value of capital stork of St. Francois County Railroad Company and value carried on books of bolding company........................... 123,255.49 124,999.00 248,254.49 Adjusted surplus at December 31, 1924......................................................................... $17,294,836.76 Add--Profit for the year ending December 31, 1925, after providing for depreciation of plant and cf|tiipmcnt.... $14,355,306.79 Less: Provision for depletion of ore reserves and mineral rights............................. $ 2,588,512.90 Loss on sale of St. Francois County Railroad Company ............................... 266,951.60 2,855,464.50 $11,499,842.29 Less--Provision for 1925 Federal income tax.......................... 1,926,695.97 , $ 9,573,146.32 Deduct--Proportion of profit applicable to minority in terests .............................................................................................. 146,772.88 9,426,373.44 Deduct: $26,721,210.20 Dividends paid and accrued-- Cash ......................... ................................................................ $ 8,497,506.00 Stock ....................................................................................... 3,910/962.50 12,408,468.50 Suiu`i,us at December 31, 1925........ .................................................................... $14,312,741.70 Notb : The above surplus comprises: Surplus ns shown by balance sheet of parent company at Decem ber 31, 1925............................................. ...................................................... Accumulated surplus of subsidiary companies, including that aris ing from revaluation of ore reserves and mineral rights, In excess of surplus reflected on books of parent company............ $9,099,435.18 5,213,300.52 $14,312,741.70 8 Reproduced with permission of the copyright owner, Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY (PARENT COMPANY) INVESTMENTS IN SUBSIDIARY COMPANIES DECEMBER 31, 1925 The Doc Run Lead Companv............................................. Kansas Explorations, Inc.....................-- .......................... Bonne Terre Farming and Cattle Companv......... Federal Realty Companv....................................................... Mississippi River and Bonne Terre Railway............... Lead Belt Railway Company............................................... No. of shares outstanding Par value per share Percentage of outstanding shares owned 65,749 $100.00 96.43% 8,000 100.00 100.00% 50,000 500 10.00 100,00 99.89% 100.00% 50,000 70 100.00 100.00 99.97% 100,00% 9 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Capital Assets : Ore reserves and mineral rights Less--Reserve for depletion ASSETS Buildings, plant and equipment.... Less--Reserve for depreciation Investments in and Advances to Subsidiary Companies: Investments ........................................................ Advances ............................................................ Other Investments : Sundry securities and loans.......................... Mine Ea Mottc (Prospecting expenses) Current and Working Assets: Inventories: Lead on hand and in process............. Materials and supplies.......................... Notes and accounts receivable............. Marketable securities .............................. Cash in banks, on hand and in transit Deferred Charges : Prepaid insurance, taxes, etc................. ST. JOSEP T BALANCE SHEE r $16,596,201.52 9,205,783.65 $ 7,390,417.87 $10,759,851.61 2,215,109.04 8,544,742.57 $15,935,160.44 $ 8,227,314.57 1,876,089.63 10,103,404.20 $ 525,024.25 231,182.09 756,206.34 $ 654,366.12 1,487,269.95 $ 2,141,636.07 2,423,505.85 5,314,166.09 1,969,440.15 11,848,748.16 144,388.69 $38,787,907.83 We have examined the books and accounts of the St. Joseph Lead Company for the year ending December 31, 1925, and wc certify that, in our opinion, the atiove balance sheet at that date fairly sets forth the financial position of the company and that the relative surplus account Is correct, 50 Pine Street, New York. February 15,1926. Price, Waterhouse & Co. IO fi Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. D COMPANY NY) MEMBER 31, 1925 Capital Stock: LIABILITIES Authorized--2,000,000 shares of $10 each $20,000,000.00 Issued--1,096,722 shares of $10 each............................................ $19,967,220.00 Lm---In treasure---16,332 shares ot $10 each................... 463,320.00 $19,503,900.00 Scrip outstanding ....................... .................. .................................... 1,1SS.50 $19,505,088.50 Due to Subsidiary Companies...................................................................................... 149,660,47 Current Liabilities: Accounts payable ........................... ...................................................... Wages accrued .................................................................................... Interest and property taxes accrued.............................................. Provision for 1925 Federal income tax........................................ $ 1,802,963.17 69.499.94 52,771.62 1,100,000.00 $ 3,025,234.73 Dividends declared, payable quarterly in 1926......................... 5,851,170,00 S,876.404.73 Reserve for Contingencies, Etc. (Including Federal taxes of prior years)............................................................... 1,157,31S.95 Surplus, per statement attached.......................................................................................... 9,099.435.18 $3S,7S7,907.83 11 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY (PARENT COMPANY) SURPLUS ACCOUNT, DECEMBER 31, 1925 Surplus at December 31, 1924...................................................................................................... $11,013,096,23 Add--Profit for year ending December 31, 1925, including dividends received from subsidiary companies, and after providing for depreciation of plant and equipment____ $13,218,485.83 Less--Provision for depletion of ore reserves and mineral rights .......................................................... ............................................ 1,623,678.38 $11,594,807.45 Less--Provision for 1925 Federal income tax........................... 1,100,000.00 10,494,807.45 Deduct--Dividends paid and accrued: ,$21,507,903.68 Cash .......................................................................................................... $ S,497,506,00 Stock ....................................................................................................... 3,910,962.50 12,408,468.50 Surplus at December 31, 1925................................................................ $ 9,099,435.IS 12 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.