Document Lz718vRD3pZky49y1pr4R9Vw

N10105 Pooo' Pclouoet a Co. cop D To the 3oard of Directors, International Smelting and Refining Company, 25 Broadway, New York Dear Jirs: We have made a general audit of the books and accounts of INTERNATIONAL SMELTING AND REFINING COMPANY for the year ended December 31st 1940, and present herewith a Comparative Balance Sheet, Comparative Income Acoount and Surplus Acoount, followed by various supporting schedules. INVESTMENT IN AND OPERATIONS OF SUBSIDIARIES The aoaounts of wholly owned subsidiaries have not been consolidated with those of International Smelting and Refining Company in this report. Three of the subsidiaries, New Jersey Storage and Warehouse Company, Raritan Copper Works, and Raritan Terminal and Transportation Company, are not operating, and the operations of the fourth subsidiary, International Building Association, are not an integral part of the operations of the parent company. The investment, including net advances, of International Smelting and Refining Company in its wholly owned subsidiaries amounted to $143,436.81 at December 31st 1940 and oombined net loss of such companies amounted to $2,906.78 for the year 1940 (details page 19). Investment, including noncurrent advances, in subsidiaries not wholly owned by the company amounted at December 31st 1940 to 53,978,239.91, a net decrease of $88,505.03 from. December 31st 1939. This decrease resulted from writing off investment in and advances to Felleyrs Mining and Milling Company amounting to $379,745.54 offset by net advances during 1940, principally to Walter Mining Company, amounting to $291,240.51. The equity of the company in the combined net income of these subsidiaries amounted to $436,494.29 for the year 1940 (details page 17). A dividend of $365,733.50 was received from Mountain City Copper Company. PNrcOOooo'6S2 /MRfCTMO-_CAPITAli Changes in current position wore as follows; December 31st 1939 December 31st 1940 Current assets Current liabilities t 11,929,242.74 1.442.019.08 $ 10,487,823.68 11,045,932.63 1.450.808.91 -9,595,123.72 3 Increase or decrease* 883,310.11* 8.789.83 892,099.94* Ratio 8.3 to 1 7.6 to 1 In the foregoing comparison, advances by affilietes evidenced by notes, ^5 000,OCO payable to Anaconda Sales Company and $2,250,0C0 payable to Anaconda Copper Mining Company at December 3lst 1939, and $4,750,000 payable to Anaconda Copper Mining Company at December 31st 1940, ere not considered current liabilities. DISTBIBTOION OF BALANCS 3HSET AND INCOME ACCOUNT TO DSPARTMSWT3 . The detail sohedules which support the Balance Sheet and Income Account are presented in eleven division^ the nine principal operating departments; 1. Tooele plant, 2. i:iaml plant, 3. Ophir Hill plant, 4. Lead refinery, 5. Zinc oxide department, 6. White lead department, 7. Raritan refinery, 6. Raritan secondary metals department, 9. Raritan electro-sheet department, and a tenth division, 10. Investments and advances, which Includes the activities of the company other than the principal smelting, refining and manufacturing operations, and an eleventh division, 11. Items not allocated to departments. In making this rearrangement, the acoounts of the company as shown on its various ledgers have been redistributed and allocated to the departments to which they apply, exoept for e few Items for whioh there is no exact basis for allocation and which are shown separately in the last division mentioned aboTe, Ostails of aocounta which appear in this division are shown on page 38. Land at Bast Chicago, and land, buildings and machinery, and reserve for depreciation at Perth Amboy have been allooated among the various depart ments on a basis believed to be approximately correct. $ PNYC00000653 rvmo .-acr^ -^D ^iwrssd funds received rind, disbursed v:ere as follows: 4 Funds made available: Operating profit, before deducting non-cash * items end interest paid on aabentures and notes payable to affiliates (details below) f 3,319,907.39 Decrease in inventories (details below) 561,261,32 Increase ln current liabilities (principally taxes) 115,450.36 Decrease la deferred charges 5.607.29 4,002,426.36 Funds disbursed: Decrease in notes payable to affiliates Interest paid on debentures and notes payable to affiliates Increase in amount receivable from Anaconda Sales Company Fixed assets purchased (details below) Increase in accounts receivable Net increase in investments in and advances to subsidiaries and sundry companies (details below) 2,500,CCC.CO 653,616.07 356,709.94 257,243.28 216.640.17 160.793.18 4.174.009.64 Decrease in cash 5 171,583.20 Operating profit, before deducting non-cash items and interest paid on debentures and notes payable to affiliates Profit, ter Income Aocount - page 10 Add: Depreciation - on deliveries $ - automotive equipment written off Loss on disposal or dismantlement of fixed assets, principally Rico and A'xron plants Royalties received from sales of ore mined by North Lily Mining Company from properties ot International Smelting and Refining Cory?any Investment in and advances to Pelleyre Mining and Milling Company written off Sundry mining claims and options written off - Ophir Hill and Tooele Interest paid on debentures and notes payable to affiliates, shown separately above As above $ 1,104,639.02 793,324.88 1,715.45 211,679.99 126,328.05 379,745.54 38,856.39 658.618.07 2,215 .-268.37 * 3,319,907.39 Decrease (increase*) ln Inventories Petals and manufactured products - finished {details below) | 1,243,166.46 - In process (increase) 606,549.67* Supplies (increase) 75.355.47* As above 561,261.32 Of the above deoroase in finished metals, a decrease of $Ml20396 in oopper at Tooele and Miami plants la offset by an increase Pnyco000654 in material in process at those smelters amounting to 51,034,008.74. 5 and manufactured products - finished Decrease or Increase* Copper (details below) Zinc (details below) lead (details below) Silver (details below) void Miscellaneous metals Zinc oxide 7/hit: isad ilectro-sheet co;"er fabricating cost prepaid billet cost Freight or. consigned stocks 13,065,002 lb. 5,826,829 lb. 4,620,443* lb. 19,254.97* 02. 1,206.829 oz. 1,,464 ,099..02 2?9j,857..31 230.,656,,95* 9,,422..99 59,,966..63 70,,285..23 7 ,821..92 379..45* 15 ,659..99 37 ,697.,06* 'C.,401 58 Reserves for freight and refining 1,, C33 .,731,,21 402 ,030 80 Decrease shown by Comparative Balance Jheet - page 9 Increase in depreciation included in inventories (details below) :.s above 1 ,235 , 95C..41 7 ,216,.05 1;,243,,166,.46 Increase in depreciation Included in inventories Pounds Depreciation applicable to unsold 1940 production of Tooele lead 5,722,949 Depreciation applicable to 1939 in ventory sold in 1940 - zlno oxide 180,069 - white lead 51,133 oer lb. .131 i .095 .215 Caspar Tooele plant: Deliveries from December 31st 1933 inventory Deliveries from 1939 accumulations Miami plant: Deliveries from December 31st 1938 inventory Deliveries from 1939 accumulations $ 3,641,213 1.456.504 5,099,717 9.872 12.615 10.658 J 1,600,604 1.398.188 2,998,792 10.070 11.194 10.594 Amount 7,497.06 171.07 109.94 281.01 7,216.05 359,465.90 104.048.62 543,514.52 161,174.75 156.514.69 317,689.44 Raritan refinery - deliveries from December 31st 1938 inventory Raritan secondary metals department: Deliveries from 1939 accumulations Lees accumulations in 1940 409,485 8.296 11,989,505 7.432.497 4,557,008 12.061 11.801 12.485 33,971.00 1,446,001.18 877.077.12 568,924.06 Net decrease, as above -. 13,065,003 ) 1,464,099.02 O.Urarl.3 from Oocomber 3l3t 1939 inventory - zinc oxide department 5,826,829 4.603 J 279,857.31 PNYC00000655 PNYC00000656 scope. OF AUDIT 7 -ie have made 2 general cudit of the books and records of International irneltios 'and defining Company and its subsidiary corporations for the calendar year ended December 31st 1940. In connection with our audit we examined or tested the accounting records of the company and its subsidiaries and other supporting evidence -nd made a general review of the accounting methods includ ing the system of internal check ^nd control and of the operating and income accounts for the yeer but we did not make a detailed audit of the transactions except in the esse of t-'iami plant, which is not examined by the company's own internal auditors. In the case of all other companies and departments v;e satisfied our selves that International omelting and defining Company and all subsidiary com panies were included in the scope of the work of the internal auditors of the company. , -Je examined into the sufficiency of the internal audit and examined the reports of the internal auditors. Investments, securities, cash, notes receivable and payable, debentures and capital stock have been verified by inspection, certificete or correspondence and found in order. .iccounts receivable were examined in detail and those considered bad or doubtful have been v/ritten off or have been provided for in reserve. Accounts receivable, -where these era of material amount were tested by selecting certain accounts for confirmation by direct communication with the debtors or, wr.ere possible, by direct comparison with the books and records of the debtors. The company'9 internal auditors have also verified the accounts receivable of certain, departments by direct communication with the debtors and, while such confirmation by internal auditors cennot be substituted for a similar procedure by the com pany's independent auditors, it has been given full consideration in determining the nature and extent of our verification of accounts receivable. Certificates of responsible officials have been received certifying to the correctness of quantities, descriptions 2nd ownership of inventories and we have made tests of the clerical accuracy of the inventories. In accordance v:lth whet is now generally agreed to be accepted audit ing procedure, our audit included physical tests of inventories. Inventories pNYC00000657 t 11 'laD^3 21>e no^ ^3S^cd nor Is a complete count rap.de of Inventories at any one p,ian,,v. inventories --re r.ot tested *t the close of the calendar year *nd the phvs^cal :aStS Jre in r` v:ay -ntecded -s a substitute for the taking of physical ;ovehtories by c::r.pany employees. The purpose is to establish the existence of a ?rc?or system for taking and recording physical inventories and to satisfy' ourselves eh^t the systems are operating effectively and as planned. In the course of this work, a very substantial part (pleasured in money value) of the physical inventories is actually inspected by us, .utie this inspection is not our ori-T.nry evidence of the existence 2nd value of the Invcr.ttri.oo f.ich must ao-.;, as in the pest, lie in the records of the company, it is of great value as o. confirmation of the company's records and representations, .Stocks of metals and products held for the company or its subsidiaries by others or held by the company for the account of others have been verified by direct communica tion. It is the general practice of the company's internal auditors to make physical tests from, tine to tine of inventories of supplies ^nd, hhile these tests cannot take the place of similer teats by independent auditors, they are given full consideration in determining the nature and extent of the tests made by us. The accounts are presented in the sane form and on the same basis as those of Anaconda Copper Wining Company, of which International Smelting and defining Company is a wholly owned subsidiary. INTERNaTIOKaL SMUTI;.^ AJZj an COMPARATIVE saTA^C- PICasSR 31ST 1939 AIC ASSETS yECED ASSETS: 14 Mines and mining claims and lands for metal producing and manufacturing plants 15 Buildings and machinery at reduction works, refineries and manufacturing plants 1$ Less reserve for depreciation Patents Investments: 17 Securities of subsidiaries - not wholly owned 19 - wholly owned 20 Other security investments Indebtedness of subsidiaries - not current: 13 Not wholly owned 19 Wholly owned DEFERRED CHARGES: ci Prepaid expenses 22 Deferred expenses CURRENT AND OTHER ASSETS: Current assets: Supplies on hand Metals and manufactured products - in process 23 - finished Accounts and notes receivable: 24 Trade, less reserve 25 Affiliates 18 Subsidiaries - not wholly owned - current 26 Cash Other assets: 2? Advances to sundry mining companies, including advances on ores, less reserve Advances to Tooele Valley Railway Company Other aocounts receivable LIABILITIES CAPITAL STOCK - issued and outstanding - 163,500 shares of the pur value of $75.00 each RESERVES: For repairs 28 For workmen's compensation insurance CURRENT LIABILITIES: 29 Accounts payable - trade Wages payable 30 Accrued taxes 31 Other accri4 liabilities 25 Indebtedness - to affiliates - to subsidiaries - not Hi oily owed - wholly owned Employees' deposits 32 dsbjhtohzb akd notzs payable to atttliatzs 13 3TOFLCS (doflolt*) December 3lst 26,460,316.73 17,026.396.78 21,409.72 21,390.48 3 827,199.52 1,453,C3<3.?0 7,633,672.48 840,560.22 27,092.04 755,883.06 391,178.72 1 69,734.26 119,911.68 es.sc V2 $1 5,250.91 34.079.24 . 909,816.56 105,897.48 231,440.52 2,103.25 156,673.83 9,949.38 19,388.85 6,749.21 . 15 $ 2' PNYC00000659 rsaKnTioKfti smj.itarc airiwir/G col^aky COMPARATIVE flALAJrCJ SHEET DECa35R 31ST 1939 AND 1940 December 31st 1939 December Diet 1940 Increase or decreases V 1,212,081.73 V 1,102,805.32 * 109,276.41^ 26,460,316.73 17,026,396.78 9,433,619.95 1.00 V 25,$77,619.64 17,361.601.01 V 482,696.89# 8,616,018.83 3o4.904.23 1.00 817,301.12a* 21,489.72 21,390.48 2,809,594.00 43,000.00 1,414,465.48 731,366.74 123,018.46 15,767,947.36 42,880.20 17,978.96 47,243.29 2,765,473.03 43,000.00 1,423,055.48 1,212,750.88 120,151.99 15,283,262.53 35,222.25 3,510.76# 25,852.81 44,120.97# 8,300.00 401,400.14 3.365.47# 484,634.83# 22,342.05 827,199.52 1,453,036.70 7,633,672.48 840,580.22 27,692.04 755,683.06 391,176.72 11,929,242.74 09,734.26 119,911.68 ee.sc 209,734.44 V 27,949,804.74 902,554.99 2,059,586.37 6,397,722.07 1,053,735.19 281,712.04 131,026.53 219,595.44 11,045,932.63 60,293.07 104,900.00 165,193.07 26,559,630.48 75,355.47 606,549.67 1,235,950.41# 213,154.97 254,020.00 624,856*53# 171,583.28# 863,310.11# 29,441.19# 15,011.68# 88.50]/ 44,541.37# $ 1,390,174.26# 12,262,500.00 5,250.91 34,079.24 39,330.15 $ 909.816.58 105,897.48 231,440.52. 2,103,25 156,673.83 9,949.36 19,386.85 6,749.21 1,442,019.08 15,250,000.00 1,044,044.49 27,949,804.74 t 12,262,500.00 __ 35,727.04 35,727.04 t i 5,250.91# 1,647.80 .. 3,603.11# 902,134.22 95,373.37 352,660.97 11,917.40 48,292.31 13,719.82 19,715.18 6,995.64 1,450,806.91 12,750,000.00 60,594.53 V 26,559,630.48 7,662.34# 10,524.11# 121,220*45 9,814*15 108,381*52# 3,770.44 326.33 246*45 8,789.63 2,500,000.00# 1.104.639.02 # 1,390.174.26# ! PNYC000006< j i 5 YEARS ENDED DECEMBER 31ST 1939 AND 1940 S Sales and tolls Coat of sales . Year ended Deoember 31et 1939 $ 23,871,062,38 20.933,708.61 Year ended December 31st 1940 J 27,841,404.22 24,686.201.25 Increase or deoreaae# 3 4,570,341,84 Income from operations before | deducting depreciation 2,337,353.57 2,953,202.97 615,649.40 Other income: Dividend from tiountaln City Copper Company 4 219,440,10 33 Other dividends and interest - net 40,622.93 34 Llaoellaneous income 19.576.87 J 279.639.90 365,733.50 40,705.12 110.856.87 517.295.49 j 146,293.40 82.19 91.280.00 237 .6ffiu59 2,616,993.47 3,470,498.46 853., 504.99 32 Interest on debentures and notes payable to affiliates 750,833.34 Expenses pertaining to non operating units 44,963.86 United States income taxes - estimated 130.000.00 925.797.20 658,618.07 52,513.71 271.477.25 982.609.03 92,215,27^ 7,549.85 141.477.25 56.811.83 1,691,196,27 2,487,889.43 796,693.16 Deduot: 16 Provision for depreoi&tlon 705,453.59 35 Loss on disposal or dis mantlement of fixed assets 89.170.74 798,324.88 205.179.99 92,871.29 116.009.25 794,624.33 1,003,504.87 208.880.54 36 Expenditures on options not exerolsed 794.624.33 379.745.54 1.383.250.41 379.745.54 588.626.08 Net inoome i 696,571,94 > 1,104,639.02 208.067.08 PNYCOOOOC661 JL_ PNYCOO000662 interwattonai. .eafgr.rrwg amp refining company BALANCE SHEET - PTCBffigR 313T 1940 - BY DBPAffTV r3 a and lands on - deduct* iaries: . Tooele plant Ophir Hill Miami clant plant Lead refinery Zinc oxide White leac department departmeni $ 355,398.16 66,666.60 7,101,420.81 3,103,550.21 5,772,495.31* 3,037,202.21* 130,665.27 1,113,670.67 706,352.72* 1.00 60,822.51 676,373.82 428,161,12* 13,243.9C 734,447. 476,994.4S cments idieries - not current: 5,848.91 i products: sizable: Lly owned - current Lng companies, including , less reserve Ley Railway Company 921.49 3,277.70 370,651.79 1,407,404.57 2,524,693.46 87,923.61 89,640.54 100,989.25 55,279.03 188.25 57,104.36 503,976.99 490,483.39 320,547.43 15,917.05 6,325,305.12 1,521,232.07 1,971.55 4,644.70 100,548.95 40,046.92 382,142.12 21,386.71 700.00 36,014.74 108,157.89 280,133.77 213,279.05 23,241.25 275,785.50 76,941.60 12,600.41 25,000.00 1,971.55 1,099,354.03 978,169.57 646,665.32 ITISS ' :ompensation Insurance le ies Hates Ldieries - not wholly owned - wholly owned 4,082.05 333,812.96 40,135.14 16,698.45 13,767.18 13,719.82 6.626.67 428,843.07 22,903.68 12,763.09 14,190.66 2,360.47 13,642.71 49,857.43 368.97 16,372.15 24,334.19 214,060.84 23,455.98 9,545.21 1,181.13 38,782.24 318.11 272,577.35 39,100.35 82.50 82.50 3s excess of liabilities $ 5,896,462.05 1,471,374.64 14,400.60# 826,776.68 939,069.22 646 ,582.82 PNVC000006< 3MPAJTT zpARTioarpa 11 hlte lead epartment Raritan refinery Raritan secondary metals departments 13,243.90 343,390.04 65,861.21 ' 34,447.46 76,994.49* 10,808,991.97 6,040,996.49* 2 ,043,072.59 818,405.11* 23,241.25 75,785.50 76,941.66 10,358.41 308,769.24 15,116.25 961,359.79 229,827.15 33,860.70 41,185.99 2 9,589.80 1,474,018.33 >46,665.32 6,726,836.60 2,779,663.27 Raritan electro-sheet flqrartmant Investments and advances - details Page 37 Items not allocated toi departments - details pace 38 Eliminations* Total pae 9 4,349.45 366,135.60 80,993.56* 61,908.16 29,956.69 1,102,805.32 25,977,619.84 17,361,601.01 1.00 9,105.71 298.597.2Q 2,765,473.03 43,000.00 1,417,216.57 1,212,766.88 120,151.99 1,866,11 28,149.34 6,224.66 70,000.00 5,014.04 104.900.00 5,066,627.47 31,858.01 248,446.30 35,498.93 315,803.24 554.98* 594.96* 2,765,473.03 43,000.00 1,423,065.48 1,212,766.88 120.151.99 17,978.96 47,243,29 902.554.99 2,059,586.37 6,397,722.07 1,053,735.19 201,712.04 131,026.53 219,595.44 60,293.07 104.900.00 26,559,630.48 02.50 4,949.53 283,482.59 19,019.16 31,713.00 323.26 12,640.06 3,883.00 02.50 352,327.60 3,883.00 646,582.32 6,374,509.00 2,775,780.27 11,276.03 11,276.03 1,155.80 19,715.18 3,126.41 265,715.06 21,098.90 594.96* 20,871.06 291,940.37 594.96* 35,727.04 902,134.22 95,373.37 352,660.97 11,917.40 48,292.31 13,719.02 19,715.18 6.995.64 1,486,535.95 287,321.17 5,845,756.41 23,862 .87 - - `25,073,094.53 Capital stock Surplus Debentures and notes payable to affiliates As above $ 12,262,500.00 60.594..53 12,323,094.53 12.750.000.00 $ 25,073,094.53 PNYC00000664 i Sales of cc?per lead silver cold aisccllaneous ., metals zinc oxide -,,hite lead electro-sheet copper ores and concentrates Toll3 Erdepartoent - nvi3ioa for depreciation and loss on r0 disposal or dismantlement of fixed assets IsBQ, or 1033* from operations Tooele nlant 478,411.96 2,849,191.85 3,462,613.00 2,471,854.56 59,e0Q.3O Iflaoi olant 310,125,58 267,776.04 289,009.71 Ophir Ril Plant 1,019,366.78 1.067,005.41 11,408,251.86 986.065.87 1,852,977.20 350,093.7] 350,093.71 9,777,646.13 1.288.611.53 11*056,257.66 1,031,263.97 681.202.28 1,712,466.25 237,933.06 23 7,938.06 341,994.20 140,510.95 112,155.65 151,554.45 ISO ,439.73 65.700.68 74,810.27 63.691.7C 48,403.95 Otter incone Dividends received from Mcuntain City Copper Company Otfier dividends and interest {paidv ) - net Miscellaneous income 240,22* 248..22* 121.20 1.728.00 1,849.20 285.00 285.00 Income or loss* 'Jnitad States income taxes - estimated ixpenaes pertaining to nonoperating units Income or loss* 190,191.53 14.240.88 14,240.88 175,950,65 76,659.47 48,745.95 76,659.47 705.20 705.1C 48,043.75 Interest on debentures and notes payable to affiliates Irpenditure on options not exercised Net income or loss* $ 175,950.65 76,659.47 48,043.75 J 4 PNYCO0000665 IMCOIT ACCOUNT HY DEPART^^r ?le plant t78.4-ll.96 349,191*85 i62,613.00 171,854.56 59,808.30 -.19,366.78 67.005.41 <03,251.36 1'iami Diant 310,125.58 267,776.04 289,009.71 Ophir Hill Plant 986.065.87 1,352,977.20 350,093.71 350,093.71 Leed refinery Zinc oxide department -'hits lead department 236,822.16 904,691.02 270,336.74 3,134.30 442.526.29 1,057,510.51 2,324,606.74 365,057.46 2,689,574.20 967,060.85 967,060.85 Raritan refinery 20,860.50 55,310.63 8,882.16 115,771.95 5.670.366.02 5,871,191.26 Heritan secondary metals department 4,893,501.8; 640,888.6' 5,534,390.5C '77,646.13 33.511.53 66 ,-57,66 1,031,263.97 81.202.20 1,712,466.25 237,938.06 237,938.06 1,577,947.38 78.220.05 1,656,168.03 2,635,876.13 152.05 2,636,028.18 423,963.60 499.919.42 923,883.02 3,807,212.67 Cl,903.94 3,869,116.61 5,222,333.02 135.362.55 5,408,195.5? 41,994.30 140,510.95 112 ,155.65 201,342.48 53,646.02 43,177.63 2,002,074.65 120,194.93 ,51.554.45 90,439.75 65.700.68 74,810.27 63.691.70 48,463.95 49,094.27 152,247.81 124.315.12 70,669.10* 27,986.91 15,190.92 317.102.07 1,684,972.58 63,971.9C 62,223.03 <248.22* 248.22* 90,191.53 121.20 1.728.00 1,849.20 76,659.47 285.00 285.00 48,743.95 152,247.81 14.240.38 14,240.98 75,950.65 76,659.47 705.20 705.20 48,043.75 152,247.81 295.92 295.92 27.46 27.48 107.653.84 107,653.04 70,373.18* 15,218.40 1,792,526.42 1.618.82 1,618.82 71,992.00* 15,218.40 1,792,626.42 62,223.03 62,223.03 5,950.65 76,659.47 48,043.75 152,247.81 71,992.00* 15,218.40 1,792,626.42 62,223.03 PNYC00000666 .. . 20,860.50 55,310.63 6,882.16 115,771.95 Raritan metals 4,893,501.83 Britan -lectro- sheet department 640,888.67 ' 105,969.15 ____________ _ _____ o 5,871,191.26 5,534,390.50 105,869,15 \ 3,807,212.67 5,222,833.02 01.903.94 185.352.55 3 ,8691116.61 5,409,195.57 81,550.00 243.20 81,793.20 3 2,002,074.65 126,194.93 24,075.95 317.102.07 1,684,972.58 63.971.90 62,223.03 13.127.11 10,948.84 OPfie J7 12 Items not allocated to departments - oae 38 Interdepartment eliminations* Total caffe 10 243.20* 499,830.17* 9,553.35* 454.12* 3,210.42* 450,921.46* 1 .831.432.30*. 5,702,656.27 2,586,133.84 4,690,390.69 3,040,083.17 806,915.57 2,324,182.62 963^850.43 105,969.15 1,266,740.79 S.334.531.29 2,795,615.02* 27,941,404.22 9,393.66 9,393.66 9,393.o6* 126.960.26 136,3 5 3.92* 02,576.03 82,576.03 24,368,201.25 2.795.615.02* 2,795,613.02* 24,385,201.25 82,576.03* 2,9:3,10*-.97 82,576.03* l.GC3.5C,.7 1,919,695.10 3 107,653.84 o 107,653.84 2 1,792,626.42 62,223.03 10,946.84 1,792,626.42 62 ,223.03 10,948.84 1,792,626.42 62,223.03 10,946.34 365,733.50 38,816.64 1.190.03 405,740.17 269,386.25 35.948.81 35,948.31 233,437.44 1,692.10 1,692.10 80,683.93* 271,477.25 271,477.25 352,361.18* 379.745.54 379,745.54 658,618.07 658,618.07 146,308.10* 1:,010,979.25* 305,733.50 40,705.12 L1C.856.07 517,295.49 2,466,993.59 271,477.25 5L.513.7l 323,330.96 2,10 , CC*s .63 653,613.07 370.745.54 1,038,363.61 1,104,639.02 i t PNYC00000667 ! PNYC0000066 MIK3S AND KINBlS FLAILS AND LANDS 14 Jaiance December 31st 1939 Additions Other changes (increase or deorease*) Balance Deoember 31st 1940 ixida for metal produc ing and manufac turing plants: Tcosle plant 4 V.iaml plant Lead refinery Zinc oxide department '/hits lead department Raritan refinery Raritan secondary metals department Raritan electro-sheet department Investments and advan' Rico 351,492.95 55.406.60 130,665.27 60,822.51 13,243.90 315,523, 79 67,227.46 4,349,45 2.480.00 87.30 260.CO 27,000.00 3,817.93 (1) 10,000.00 (2) 1,366.25 (3) 1,366.25*(3] 355,398,16 36,666.60 130,665.27 60,822,51 13,243.90 343,890.04 65,861.21 4,349.45 2.480.00 1,002,211.93 27,347.30 13,817,93 1,,043,377.16 Hines and mining claims: Cphlr Hill mines and water rights * 6,000.00 202,269.80 1.600.00 6,000. 00* U) 129.34 (126,328.05*(5i ) { 3,817.93*(1) ) ( 37.15* (3 J J ( 32,856.39*U1 ) 18.458.54 39,369.62 20.058.54 Per Balanoe Sheet page 9 4 1,212,061,73 45,935.18 155,211.59* 1,,102,805.32 NOTE 1 - Transfer to oorrect distribution of additions of the year 1938. 2 - Repossession of property sold In year 1939 - details page 35. 3 - Reallocation of land at Perth Amboy. 4 - Relinquished options, and Ophlr Hill property and options written off. 5 - Royalties reoeived from sales of ore mined by North Lily lining Company from properties of International Smelting and Refining Company. 6 - Transferred to buildings and machinery - Rico. 9 PNYC00000669 9 0 0 0 0 3 a V 2 NJ Tooele plant Miami plant Ophir Hill plant Lead refinery Zlno oxide department White lead department Raritan refinery Raritan secondary metals department Raritan eleotro-sheet department Investments and advanoea - Rloo Per Balanoe Sheet - page 9 BUILDINGS AND MACHINERY 15 Balanoe Deoember 31st i939 t 7,090,157.33 3,096,892,52 170,196.49 1,099,692.24 946,179,44 731,919.26 10,565,699,02 2,251,193,56 269,310,52 219,076,35 $ 26,460,316,73 Construction 11,490,91 6,657.69 2,526.60 12,974.13 14,860,75 3,378.22 159,643.95 5,914.82 217,449,07 Deduct* sales and diamantlents details pass 35 Other ohanggs (inorease or decrease*) Balanoe Deoember 31st 1940 227,43* 7,101,420.81 3,103,550,21 172,727,09* 3,308.29* 00,353,70* 850,00* 43,529.44* -. 4,312.59 (1) 1,113,670,67 4,312.59*(1) 676,373,82 734,447.48 ( 1,715.4S*<2) ; j 10,808,991.97 ( 128,095,89 (3) 2,400.00* 205,720.97*(3) 2,043,072,59 76,825.08 (3) 366,135,60 195,061.63* 27,15 (4) 29,956.69 698,457,66* 1,688.30* 25,977,619,64 N072 X - Transfer between departments. Z - Depreciation of automotive equipment written off. 3 - Reallooation of plant at Perth Amboy. 4 - Transfer from Hines and mining olaims Rico, Tod* P`""t . yjc MU8 department leal department Srltaa refinery Srlten secondary metals department Inventsants end advances - Rico Per Delence Sheet - page 9 Uolancu December Jlst 1939 4- 5,629.319.04 2,965,001.53 96,204.63 560,491.50 584,837.24 450,207.50 5.604,531.43 076,956.15 27,120,26 51.938.54 $ 19,OPS,896.78 Depreciation on 1940 operations details below 159,052.50 72,200.6a 64,120.59 43,763.90 37,381.88 27,439.43 312,629.00 61,^39.50 13,127.11 1C,955.18 805,540.93 Deductions* for seles and dismantlements- pee 35 i I'ansi'er between departments - (Increase or decrease*} 98.74* 15,779.37* 160,405.22* 902.76* 194,058.00* 302.52* 35,548.77* 237.60* 78.373.09* 79,384.75 120,1?2.94* 40,730.19 15,779.37 470,336.70* Balance December 31st 1940 5,772,495.31 3,037,202.21 706,352.72 428,161.12 476,994.49 6,040,996.49 818,405.11 80,993.56 -- 17,361,601.01 u of depreciation on 1940 operations Depreciation on 1940 operations as above_____________ Quantity Rate Amount Toecle plfnt: lead olant lulphi'de concentrator Oxide concentrator bait Lake City furniture and ranch buildings ,997,389 pounds .131^ 104,014 tons 22.500^ V 05,146.58 41,403.15 32,149.30 354.55 159,053.58 'Jlen.1 ->lant: Ccpper plant Anode furnace 65,742.94 6,457.74 72.20C.60 Ophir Hill plant Lead refinery Furniture and fixtures 49,079.634 tons 09.010^ 64,120.59 43,378.20 3,085.70 46,763.90 Depreciation applicable to inventory December olst December 31st 1939 1940 Depreciation applicable to 1940 sales - per Income Account - pare 10 14,593.96 22,091.02 14,593.96 22,091.02 77,649.52 41,403.15 32,149.30 354.55 151,556.52 72,200.30 64,120.59 46,763.90 Zinc oxide department - 2ast Chicago plant 39 ,349,346 pounds .095^ 37,381.89 3,236.06 3,065.79 37,652.95 dhite lead department 12 ,776,4113 pounds .215^ 27,439.43 8,165.20 8,055.26 27,579.3? Saritan refinery less amount applicable to plant used by secondary metals department ond electro-sheet department 350,127.78 37.49e.60 312,629.08 312,329.08 daritan secondary metals department- cathodes 11 006 279 tons Depreciation on refinery plant-as above 4v-?2..225 20,554.13 35.276.37 61,839.50 61,839.50 Raritan electro-sheet department Depreciation on refinery plant - as above 723,919 pounds 1.5^* 10,903.00 2.223.31 13,127.11 13,127.11 c O' W. tuonts and advances - Rico 10,955.18 in. cmr.. in PNYCOOOO' PNYC00000672 INVESTMENT IN SECURITIES OF SUBSIDIARIES NOT WHOLLY OWNED Daawber 31st 1939 and Milling Company - payment on optlo iwujjtloo, yr 19401 Ifletaent In Pelleyre Mining and Milling Company written off per Balance Sheet, Deoember 31st 1940 - page 9 pullB of balanoe at Deoember 31st 1940 Mountain City Copper Company Milker Ulalng Company Other unoonaolidated subsidiaries: Coast Coalition Mines Company Sureka Bullion Mining Company Mountain View Mining Company North Lily Mining Company Park Konold Mines Corporation Park Nelsqn Mining Company Park Premier Mining Company Tlotor Consolidated Mining Company Yankee Consolidated Mining Company Shares 1;462,934 862,042 760,246 756,000 728,420 475,000 755,000 755,000 1,015,000 365,390 501,005 As above Nt Increase In equity - year 1940 fejuity in inoome, as above Leas dividend reoeived from Mountain City Copper Company Net inorease Par value 4 73,116.70 882,042,00 luf-,071.50 37,000,00 72,842.00 47,500.00 377,500.00 377,500,00 253,750.00 182,695,00 50,100.50 Amount t 1,143,281.33 682,049.50 340,891*71 187,923*49 68,806.23 66,527,78 37,644,27 1,00 1.00 18,306.52 20,040.20 740,142.20 t 2,765,473.03 17 Amount i 2,809,594*00 21. OOP.. 00 2,830,594*00 65,120*97 $ 2,765,473*03 Equity in income or loss*, year 1940 $ 548,040.61 146,373.75* .348.06* 36,270.79 ~ __ .95* 1,094.35* j 436,494.29 $ 436,494.29 365,733*50 I 70,760,79 INVESTMENT IN AND INDEBTEDNESS 0? SUBSIDIARIES NOT WHOLLY OWNED Mountain City Copper Company Walker Mining Company Comet Coalition Mines Company Sureka Bullion Mining Company Mountain View Mining Company North Lily Mining Company Park Konold Mines Corporation Park Nelson Mining Company Park Premier Mining Company Victor Consolidated Mining Company Yankee Consolidated Mining Company Sundry lndireot subsidiaries Par Balance Sheet, December 31st 1940 page 9 Indebtedness Not current Current 797,479.10 26,617.67 20,709.51 130,913.43 112,294.47 29,062.90 226,603.23 1,212,766.88 38.10 75.00 131,026.53 Total 130,913.43 797,479.10 26,617.67 20,709.51 112,294.47 29,062.90 226,603.23 30.10 75.00 1,342,793.41 Investment page 1? 1,143,281.33 882,049.50 340,891.71 187,923.49 68,806.23 66,527.70 37,644.27 1.00 1.00 18,306.52 20,040.20 2,765,473.03 Total investment and indebtedness 1,274,194.76 1,679,528.60 367,509.38 208,633.00 68,806.23 66,527.78 149,938.74 29,063.90 226,604.23 10,306.52 20,070.30 75.00 4,109,266.44 ia Market quotations V 4,571,668*75 799,350.56 71,273.06 181,440.00 23,673.65 285,000.00 13,2U.50 15,100.00 30,450.00 12,780.65 8,767.59 4 5,012,724.76 Mountain City Copper Company Walker Mining Company Comet Coalition Mines Company Eureka Bullion Mining Company Park Konold Mines Corporation Park Nelson Mining Company Park Premier Mining Company Paliayre Mining and Milling Company Yankee Consolidated Mining Cciapany Sundry lndireot subsidiaries Total indebtedness December 31at December 31st 1939 1940 # 229,868.86 525,784.20 31,810.81 19,432.37 112,226*16 28,910.70 228,774.79 310,203.91 35.00 195.00 130,913.43 797,479.10 26,617.67 20,709.51 112,294.47 29,062.90 226,603.23 30.10 75.00 Increase or decrease* 98,955.43* 271,694.90 5,201.14* 1,277,14 60.31 152.20 2,171.56* 310,203.91* . *3.10 120 00 # 1,487,249.80 1,343,793.41 143,456.39* i INVESTMENT IN AND INDEBTEDNESS OF WHOLLY OWNED SUBSIDIARIES Shares Par value jittfMtlmnal Building Association 10 4 i,,000.00 nr Jersey Storage and Warehouse Company 10 1,,000.00 Writan Copper Works 10 1, fcritan Terminal end Transportation Company 400 40,,000.00 fir Balanoe Sheet, December 31et 1940 P* oo ooo Investment 1,000,00 1,000.00 1,000.00 40.000.00 43,000.00 Indebtedness not current 120,151.99 120,151.99 Total investment and indebtedness 121,151.99 1,000.00 1,000.00 40.000.00 163,151.99 Uai indebtedness to wholly owned subsidiaries: New Jersey Storage and Warehouse Company Raritan Copper Works Raritan Terminal and Transportation Company Par Balanoe Sheet, Deoember Slat 1940 - page 9 l*t investment The above net investment at Deoember 31st 1940 is represented as follows; Assets: Lands, principally for resale Buildings and railroad oonstruction Less reserve for depreciation Prepaid expenses Installment house and land sales contraots Aooounts receivable Cash 1 31,063.64 21.487f45 Las liabilities: Accounts payable Taxes accrued Interest aoorued . 2,906.66 49.60 1.61 Het assets difference, being accumulated operating deficits to Deoember 31st 1940 3 718*93 1,000.00 17.996.25 40,962.71 9,576.19 60.00 64,696,90 1,136.09 190.18 116,622.87 2.958.07 19.715.16 143,436.81 3 29,772,01 19 Net loss of the vear 1940 $ 2,223.05 6.00 -679.73 t 2,906,78 CTHSR SECURITY INVESTMENTS Balance December 31st 1939 Additions - year 1940 - Copper Canyon Mining Company, 64,000 shares Per Balance Sheet, December 31st 1940 - page 9 20 $ 1,414,465.46 8,600.00 $ 1,423,065.46 Details of balance at December 31st 1940 Zinc oxide department: Delaware Floor Products Company: Common stock Second mortgage bonds National Fireproofing Corporation: Common stock Income debentures Northwestern Terra Cotta Corpora tion stock Viscosity Oil Corporation stock Par value no par $ 2,600.00 no par 200.00 18.75 no par 26 3 7 18.75 .75 2,580.50 2,600.00 65.01 200.00 367.78 35.62 5,848.91 Investments and advances: Condor Gold Mining Company stock Copper Canyon Mining Company National Tunnel and Mines Company stock Park-Utah Consolidated Mines Company stock Prince Consolidated Mining Company stock 4,632.30 6,400 no par 69,000.00 80,000.00 61,764 64,000 328,200 69,800 800,000 4,632.29 8,600.00 915,693.92 441,157.50 47.132.86 1,417.213.57 3 1,423.065.48 Investment in National Tunnel and Mines Company in this report Is at the amount shown on the books of International Smelting and Refining Company which differs from that shown in the report on Anaconda Copper Mining Company and consolidated subsidiaries, in that the investment and Consolidated Surplus have there been reduced by #136,307.60, the amount of the deficit of UtahDelaware Mining Company on dissolution In 1937. i p*rcoo ooo,675 PNr`ooOC6 zz PEFSaaSS EXPENSES Tooele plant; Expenditures on aocount of option to purohaae stock of Copper Canyon Mining Company Prepaid rental Adranoe on purchase contract Prepaid lime sand royalty Sundry deferred expenses Zlno oxide department - club memberships Raritan secondary metals depart ment - blast furnaoe slag treatment expense Per Balance Sheet - page 9 December 31st 1939 1 -2,157.98 1,225.91 249.56 3,632.43 1,000.00 16,758.05 $ 31,390.46 December 31st 1940 Increase decrease* 28,149.34 1,240.00 1,711.60 326.10 31,427.04 700.00 15,118.25 47,243.29 26,149.34 1,240.00 446.38* 1,225.91* 77.54 27,794.61 300.00* 1,641.80* 25,952.61 } PNYC0000Q677 METALS AND MANUFACTURED PRODUCTS - FINISHED 23 amount Copper Zlo* Gold Miscellaneous metals Ma&ufaotured products: Zinc oxide White lead Eleotro-sheet oopper Prepaid billet oost Prepaid freight, etc. Tooele j)lan $ 539,436.00 780,894.35 674,262,87 621,104.32 4,406.86 2,620,104.42 Leas reservea for freight. refining, eto. 95,410.96 Miami plant Lead refinery 444,394.33 50,661.68 52,146.05 321,267.55 76,088,36 10,212.89 572,628.74 382,142.12 82,145.35 71no oxide department 43,646.74 230,326.34 6.160.69 200,133.77 .Yhite lead department Raritan refinery Raritan secondary metals department Raritan electro-sheet department Total 10,607.46 544,059.62 1,350,661.75 144,843,80 259,097.72 3,920.67 1,402,39 1,183.37 379,001.12 253,981,80 11.196.24 63,047.07 275,785.50 1,015,768.88 1,732,248.63 54,409.09 258,230.30 9,105,71 9,105.71 2,878,551. 70 43,846.74 842,163.49 1,193,922.66 968,486.66 387,328,67 230,326.34 253,981.80 9,105.71 63,047,07 17.356.93 6,887,917,77 490,195.70 Per Balanoe Sheet, December 31st 1940 - page 9 $ 2,524,093.46 490,403.39 382,142.12 280,133.77 275,785.50 961,359.79 1,474,018,33 9,105.71 6,397,722.07 POUNDS ' Copper ?lno Lead ` 5,464,220 16,663,376 4,413,210 858,570 906,098 230,597 6,558,072 13,432,497 29,860,007 906,090 17,952,543 9.872 4.631 10.070 5.901 4.817 4.600 - covered by affidavits - not oovered by affidavits . 8.296 10.055 9.636 4.817 4,691 Ounces 1,096,806.01 1,193,877.74 Prloe *vaount as above 71,0238* * 779,050.14 34,75 414,872.52 2,290,763.75 52.1190* 4 1,193,922,66 28,416.265 /34.O0 I 968,480.80 PNYC00000678 Tooele plant ACCOnNTS AND NOTES RECEIVABLE - TRADE. LESS RESERVE Miami Plant Ophlr Hill Lead Zlno oxide Plant refinery department White lead department Raritan refinery Investments and advances Items not allocated to departments 24 Total 23,066.60 297,246.86 62.323.71 62,323.71 320,333.46 28,820.07 213.279.05 213,279.05 116.275.19 116,275.19 175,691,80 20.187.67 224,699.54 25.599.GO 67,923.61 213.97 320,547.43 1.971.55 1,971.55 21.386,71 21,386.71 213,279,05 116,275.19 5.127.61 229,827.15 70,000.00 70,000.00 39,333.51 31.858.01 31,85a.01 51,906.67 297,246.66 175,691.80 443.923.63 968,768.96 31,858.01 70,000.00 54.299.74 1,093,068.70 39,333.51 87,923.61 320,547,43 1,971.55 21,386.71 213,279.05 76,941.68 229,827.15 70,000.00 31,858.01 1,053,735.19 o o i oo o o 4 ACCOUNTS WITH AFFILIATES 25 Accounts receivable from: The American Brass Company Anaconda Sales Coaoany {payable at Dec. 31, 1939) Anaconda Wire and Cable Company Chile Exploration Company ember 3ist 1539 December 3l9t 1940 Increase decrease* i 1,025.39 11,627.7? 15.579.76 23,232 92 2,277.12 248,446.30 16,178.27 15.405.31 282,307.00 1,251.73 248,446.30 4,550.50 174-45* 254,074-08 Net off accounts payable to: The American Brass Company Anaconda Wire end Cable Company 540.98 540.88 532.35 52.61 594.96 532.35 470.27* 54.00 Per Balance Sheet - page 9 27,592.04 281,712.04 254,020.00 Accounts payable to: Anaconda Copper Mining Company The American Braes Company Anaconda Sales Company {receivable at Dec. 31, 1940) Anaconda Wire and Cable Compeny Chile Steamship Company, Incorporated Montana Hardware Company Tooele Talley Railway Company Net off accounts receivable, as above 21,098.90 110,263.64 540.38 10,118.53 4,793.36 10.399.40 157,214.71 540.98 21,098.90 532.35 62.61 7,104.23 9,305.09 11.794.09 48,807.27 532.35 110,283.64* 478.27* 3,014.30* 3,511.73 1.384.69 108,327.44* 594.96 4.08 Per Balance Sheet - page 9 $ 156,373.83 48,292.31 109,381,52* pNYCOCOOOOa ! PN,coo6ei PN*C00Q006 agjSflYE FOR WOKF21EWS COLJENSATT ON INSURANCE. ETC 28 Balance December 31st 1939 Tooele plant $ 4,035.61 Ophir Hill 1,629.68 Lead refinery 13 ,642.23) Zinc oxide department 8,652.43) White lead department 3,956.42) Raritan refinery 2,112.35 Additions details below 31,582.35 1,320.57 3,735.20 17,021.79 | 34,079.24 53,659.91 Deductions - compensation Per Balance paid. Sheet, medical Deoember 31st and hospital 1940 expenses, etc. page 9 31,585.11 589.78 5,652.11 4,082.85 2,360.47 24,334.19 14,185.11 4,949.53 52,012.11 35,727.04 Details of additions - year 1940 Total as abore Tools plant Ophir Hill Lead refinery Raritan refinery t 31,532.35 1,320.57 3,735.20 17,021.79 $ 53,659.91 Charged 23,146.12 1,032.57 3,755.20 17,021.79 44,935.68 Pay roll deductions 8,436.23 288.00 8,724.23 A i pNVC000006e. PNrc0000068 PNYC00000685 Federal old age benefite tax I 3,057.38 Federal and slate unemployment Inauranoe taxes 12,082.70 Federal lnoome taxes Federal oapltal etook taxes Real estate taxes 178.41 Utah mining oooupatlon tax Sundry 579.96 Per Balanoe Sheet, December 31st 1940 - page 9 } 16,696.45 756.19 3,249.99 9,734.48 450.00 14,190.66 10,491.03 3,151.68 13,642.71 9,545.21 31,713.00 1,155.23 1,155.88 Total 12,288.21 i i 40,631.32 256,000.00 10,000.00 21,559.15 3,151.66 1,030.61 265,715,06 352,660.97 PNYC000Q0686 32 DEBENTURES AND NOTES PAYABLE TO A7?ILIATSS 15 year 6% debentures duo 1950, held by Anaconda Copper Min ing Company Balance December 31st 1939 . 8,000,000.00 Payments 1940 details below Per Balance Sheet, December 31st 1940* page 9 i 8,000,000.00 Demand aote, interest at 5%, payable to Anaconda Copper Min ins Company 2,250,000.00 2,250,000.00 Time notes . details of payees and interest rates below 5,000,000.00 2,500,000.00 2,500,000.00 Total 15,250,000.00 2,500,000.00 12,750,000.00 id Balance December 31st 1939 $ 21,096.90 Aocrued 1940, per Income Account - page 10 480.000.00 501,096.90 Paid 1940 480.000.00 Balance December 31st $ 1940 21,096.90 __ 112.500.00 112.500.00 112.500.00 -- Details of time notea Payable to Anaconda Sales Company; Balance December 31st 1939 - Interest at 1-1/2% $ Payment June 15th 1940 Balance June 15th 1940 - interest at 1-3/4% Payment August 31st 1940 Payment September 14th 1940 3,125.00 66.118.0? 69,243.07 69.243.0? -- Payable to Anaconda Copper Mining Company: September 14th 1940 - interest at 1-3/4% Payment October 22nd 1940 $ 3,500,000.00 1.000.000.00 Balance December 31st 1940 - Interest at 1-3/4% $ 2,500*000.00 Details of interest accrued on time notes Payable to Anaoonda Sales Company: December 31st 1939 to June 15th 1940 1-1/2% on $5,000,000 June 15th 1940 to August 31at 1940 1-3/4% on $4,000,000 August 31st 1940 to September 14th 1940 1-3/4% on $3,500,000 24,223.90 656.616.07 662,641.97 661.743.07 21,096.90 p**co, oooo6,8? OTHER DIVIDENDS AMD INTEREST Interest received: Oa advances: To subsidiaries not wholly owned; Comet Coalition Mines Company Eureka Bullion Mining Company Walker Mining Company Tooele Valley Railway Company International Building Association On refund of capital atook tax Miscellaneous - net Dividends received: Park Utah Consolidated Mines Company Miscellaneous Per Income Account, year ended December 31st 1940 page 10 33 f PNYC00000683 j 34 MISCELLANEOUS INCOME Miami plant - rents OpJilr Kill plant - rents Raritan refinery; Record storage rentals Copper storage rentals Discount on prepayment of taxes loading and unloading lighters Investments end advances; Fark-Utah Consolidated Mines Company reimbursement for dividends of prior years not received by the company Less outside property expense, Tooele Per Income Account, year ended December 31st 1940 P" 10 $ 1,350.00 87,532.32 3,003.08 15,763.44 1,200.00 9.97 $ 1,728.00 355.00 107,653.84 . 1.190 ._03 ' I 110,354.97 ! P'lrc0C6e9 s I I I O O' *0 o p N 'fC O O O LOSS ON .DISPOSAL OR DISMANTLEMENT CP FITHm ASSETS 35 Buildings and machinery: Tooele plant Ophir Hill plant Lead refinery ?lno oxide department White lead department Raritan refinery Raritan secondary metals department Investments and advanoes - Rioo Ulnes and mining olalms and lands: Ulaml plant - repossession of pronerty sold In 1030 ' Total Cost of property sold or dismantled - pages 15 and 14 C 27,43 172,727.0> 3,308.20 280,353.78 850,00 43,520.44 2,400.00 105.061.S3 698,457,66 Aooumulatad depreciation - page 16 08.74 160,405.22 902.76 194,050,00 682.52 35,548,77 267,60 78.673.09 470,636.70 10,000,00* 1 688,457,66 470,636*70 Net book value Salvage less dismantling expense (add or deduot*) 128.69 12,321,87 2,405.53 86,295,78 167.48 7,980,67 2,132.40 116.388.54 227,820,96 130,76* 12,750.76* 74.76* 466,30 240,06 3,507,68* 383.46* 16,140,97* L0S8 (profit,/) - per Inoome Account year 1940 Mga IQ 2. 07/ 426,69# 2,330.77 86,762,17 407,54 4,472,99 2,132,40 211,679.99 10,000,00* 3,500,00 217,820.96 12,640,97* 6,500.00# 205,179.99 36 EXPENDITURES CN OPTIONS NOT EXERCISED Investment in and advances to Pelleyre Mining and Milling Company written off Investment Advances - Balance December 31st 1539 Additions 1940 Per Income Account, year 1940 - page 10 * 65,120.97 $ 310,203.91 4.420.66 314.624.57 $ 379,745.54 PNYC00000691 balance sheet items Mines and mining claims and lands ; Buildings and machinery Investments: . Securities of subsidiaries - not wholly owned - wholly owned Other security investments Indebtedness of subsidiaries - not current - not wholly ov< Prepaid expenses - wholly owned Deferred expenses Supplies on hand Accounts receivable - trade Advances to sundry mining companies, including advances on ores, less reserve Advances to Tooele Valley Railway Company Accrued taxes Indebtedness to subsidiaries wholly owned Net investment ,9 INCCUB Accomrp tth Cost of sales I Provision for depreciation and loss on disposal or dismantleme of fixed assets Other income: Dividend received from Mountain City Copper Company Other dividends and Interest Miscellaneous income (expense*) Income or loss* Deduct: Expenses pertaining to nonoperating units Expenditures on options not exercised Net income or loss1 * PNyC00000692 gfTESttaNTS AND AD7AWC7S DETAILS OF BALANCE SHEET AND TWCrftg ACCOUNT IT**** Wholly owned subsidiaries Mountain City Copper Comnanv d lands $ 2s - not wholly owned - wholly* owned 43,000.00 ts ries - not current - not wholly owed wholly owned 120,151.99 1,143,281.33 'Yalker Minins Company Other subsidiaries not wholly owned National Pari Tunnel Consc and Mines l> Company Co 862,049.50 797,479.10 740,142.20 415,287.78 915,693.92 441, :ompanies, including advances on Railway Company 70,000.00 163,151.99 1,143,281.33 1,679,528.60 1,155,429.98 985,693.92 441,: >s wholly owned 19.715.18 19,715.16 $ 143,436.81 1,143,281.33 1,679,528.60 1,155,429.98 905,693.92 441,1 t and loss on disposal or dismantlement >untain City Copper Company "9 St >ense*) noperatlng units ot exercised 4,797,57 4,797.57 4,797.57 365,733.50 365,733.50 365,733.50 4 4,797.57 365,733.50 16,795.49 16,795.49 16,795.49 2,955.37 2,955.37 2,955.37 16,795.49 379.745.54* 379,745.54* 376,790.17* 6,9 1,2C 8,16 0,18 8,18' $ pyc 000 693 Park-tJtah Prince Consolidated Consolidated Mines Minins Company Company Condor Gold Minins Company 441,157.50 47,132.86 4,632.29 35.50 441,157.50 47,168.36 4,632.29 V4l,15?.50 47,160.36 4,632.29 Afterthought Copper Mines Canyon Company operations Tooele Valley Railway Company 8,600.00 20,149.34 4,978.54 4,978.54 36,749.34 104.900.00 104,900.00 4,978.54 36,749.34 104,900.00 Rico Mines department, outside exploration, etc. Tota pag 11 an< 2,480.00 29,956.69 1,866.11 6,224.66 40,527.46 59,428.16 59,428.16 61,90* 29,95* 2,765,473 1,417,216 1,212,766 120,151 1,866 28,149 6,224 70,000. 5,014. 104.900, 5,866,627. 1,155.88 1,155.88 1,155. 19.715. 20,871. 39,371.58 59,428.16 5,345,756.* 6.960.00 1.200.00 3,100.00 8,180.00 . 3,180.00 9,393.66* 126.960.26* 136,353.92* 7,288.21 7,288.21 7,288.21 136,353.92* 35,948.81* 35,948.81* 7,288.21 172,302.73* 9,393. 126.960.2 136,353.9 9.97* 9.97* 3u5,733.5' 38,816.6* i.i90.o: 405,740.1' 9.97* 269,386.2" 35,948.81 379.745.54 415,694.35 9.97* 146 ,308.10' P**C0 ooi 00694 PNYC00000695 INDEX 39 Pago A 25 Accounts with affiliates 24 Accounts receivable - trade, less reserve 29 Accounts payable - trade 31 Accrued liabilities, other 30 Accrued taxes 19 Advances to subsidiaries - not wholly owned 19 - wholly owned 27 Advances to sundry dining companies 25 Affiliates, accounts with 32 Affiliates, debentures and notes payable to B 11 Balance Sheet - by departments 9 - comparative 15 Buildings and machinery C 26 Cash D 32 Debentures and notes payable to affiliates 22 Deferred expenses 16 Depreciation, provision for 16 Depreciation, reserve for S 36 Expenditures on options not exercised 22 Expenses, deferred 21 Expenses, prepaid l 3-6 funds received and disbursed I 12 Income Account - by departments 10 - comparative 18 Investment in and indebtedness of subsidiaries - not wholly owned 19 - wholly owned 25 Indebtedness of affiliates 19 Indebtedness to subsidiaries - wholly owned 33 Interest reoelved and paid 23 Inventories, finished 37 Investments and advances 17 Investment in securities of subsidiaries - not wholly owned 20 Investments, other security 38 Items not allocated to departments L 14 Lands, mines and mining claims and 35 Loss on disposal or dismantlement of fixed assets PNYC00000696 40 Page U 15 Machinery, buildings and 23 Metals and manufactured products - finished 14 Mines and mining olelms and lands 34 Miscellaneous income N 32 Motes payable to affiliates 0 2 Operations by departments - comparative 36 Options not exercised, expenditures on 31 Other accrued liabilities 33 Other dividends and interest 20 Other seourity Investments P ' 36 Felleyre Mining and Milling Company write off - see expenditures on options not exercised 21 Prepaid expenses S 16 Reserve for - depreciation 28 - workmen's compensation insurance 3 18 Securities - of subsidiaries not wholly owned 19 - wholly owned 20 - other 18 Subsidiaries, investment in and advances to - not wholly owned 19 - wholly owned 27 Sundry mining companies, adv&noea to 13 Surplus aooount T 30 Taxes aocrued W 3 Working capital