Document O1qK8qvpKVE7eqMp2G4jpY73p

Saint Joseph Lead Company Annual Report -- 1933 America's Corporate Foundation; 1933; ProQuest Historical Annual Reports Pg- 1 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY Incorporated March 25, 2864, under the Laws of the State of New York Daniel K. Catlin, St Louis, Missouri C. Merrill Chapin, Jr., Vice President Hendon Chubb, of Chubb & Son Irwin H, Cornell, Vice President Firmin V. Desloge, St. Louis, Missouri BOARD OF TRUSTEES Clinton H. Crane Chairman Andrew Fletcher, Vice President and Treasurer James H. Grover, Pres., St. Louis Union Trust Co. Fred W. Shibley, Vice Pres., Bankers Trust Co. Hon. E. C. Smith, St. Albans, Vermont M. F. Watts, of Watts & Gentry, St. Louis EXECUTIVE OFFICERS Irwin H. Cornell, Vice Pres., and Sales Manager Andrew Fletcher, Vice Pres., and Treasurer C. Merrill Chapin, Jr., Vice President Clinton H. Crane President , H. B. McGown, Secretary Robert Bennett, Assistant Secretary George I. Brigden, Assistant Secretary STOCK TRANSFER OFFICE 250 Park Avenue, New York REGISTRAR City Bank Fanners Trust Company, New York BOND INTEREST and PRINCIPAL Payable at Messrs. J. P. Morgan & Company, New York Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY 250 Park Avenue, New York City PRESIDENT'S ANNUAL REPORT TO STOCKHOLDERS In order that the Stockholders may have a general picture of the operations of the St. Joseph Lead Company and its Subsidi aries for the fiscal year ended December 31, 1933, the following is submitted: Comparative Annual Figures The effect of the low metal prices and sales is reflected in the following comparative yearly figures: Year Total United States Refined Lead Figures in tons Production, Primary Smelters U. S. Shipments only Stocks at end of year 1928 1929 819,604 817,721 702,721 727,271 !33>618 T- 54,900 1930 688,787 637,384 103,247 1931 478,591 429,949 151,380 1932 342,137 317,261 176,157 1933 374,153 347,156 203,061 Price f.o.b. St. Louis Lead cents per lb. Zinc cents per lb. 6.133 6.027 6.646 6 512 5.456 4.556 4.007 3.640 3.055 2.876 3.652 4.029 Production Tons of ore mined Tons of lead concentrates Tons of lead content 100% basis Tons of zinc concentrates Tons of zinc content 100% basis 4,833,194 204,181 148,568 45,928 27,361 5,750,412 245,958 178,181 60,475 35,115 5,999,813 243,614 177,935 86,795 50,064 4,465,794 196,481 141,999 63,348 37,056 3,233,172 147,242 107,096 34,677 20,020 2,652,944 114,651 84,440 34,741 19,880 Pig Lead Sales, Including Lead Content in Concentrates Sold Tons of St Joe production Tons of Purchased lead sold 136,640 52,342 Total 188,982 160,490 61,399 221,889 137,502 82,221 219,723 105,262 69,085 174,347 81,467 53,473 134,940 72,462 47,988 120,450 Lead Stocks in tons, including 90% of lead content in concentrates 16,271 22,042 51,107 77,134 93,990 99,374 Consolidated Earnings Profit from operations Deduct interest and expense on bonds Gross Income Deduct Provision for Depreciation Federal Income Taxes Total Deductions Net Income before Depletion $7,815,038.98 $11,954,769.82 $5,809,486.42 $1,974,485.73 $ 203,909.10 $1,782,282.02 -- -- -- 352,265.72 491,790.21 465,796.42 $7,815,038.98 $11,954,769.82 $5,809,486.42 $1,622,220.01 *$ 287,881.11 $1,316,485.60 1,050,348.88 1,268,935.08 1,319,064.38 1,149,702.39 1,011,845.62 1,022,922.73 455,623.88 883,938.98 390,314.61 -- ---- $1,505,972,76 $ 2,152,874.06 $1,709,378.99 $1,149,702.39 $1,011,845.62 $1,022,922.73 $6,309,066.22 $ 9,801,895.76 $4,100,107.43 $ 472,517.62 *$1,299,726.73 $ 293,562.87 Provision for Depletion--1933 includes Abandoned Leases, $190,323,42 $1,775,803,27 $ 2,264,740.04 $2,566,469.67 $1,886,589.04 $1,606,310.78 $1,461,310.72 Dividends Paid to Stockholders St. Joseph Lead Company Minority Interests in Subsidiaries * Deficit. $5,851,335.00 $ 5,851,374.75 $5,851,386.00 $2,438,079.75 $ 292,569.75 $ 76,253.00 $ 70,305.00 $ 128,865.00 $ 14,618.75 -- -- -- Financial Condition The financial position of the St. Joseph Lead Company and subsidiary companies is shown by the accompanying Consolidated Balance Sheets as of December 31, 1933 and 1932. The United States Government, State and Municipal securities owned as at the close of the year totaled $3,205,086,24, including Reconstruction Finance Corporation Notes amounting to $89,086.24. AH are short term Government issues, with the exception of $31,000 State of New York Bonds, and $55,000 New York City Notes. The total market value on December 31, 1933 was $3,194,097.49. During the year certain investments in stocks of other mining companies were sold, and the appreciation between the December 31, 1932 market value and cost, together with the increase in the market value of the securities not sold, resulted in an increase in the reserve for contingencies, as in prior years the writing down to market value had been charged against this reserve. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Lead Operations The year 1933 was a very difficult one for the Lead Belt Community of Southeast Missouri by reason of the failure of many of the local banks, and the necessary curtailment of production. The lead inventory has been accumulated due to the Company's policy of maintaining employment at the highest possible level. The 50% time basis was reduced to 25% on April 1, increased to 33r/j% on May 27, to 37% on August 28, and to 50% on October 1, 1933. The 10% wage reduction of April 1, 1932 was restored on July 1, 1933. The 20% salary reduction was rein stated 10% on July 1 and 10% on October 1, 1933. The existing wage rates are 20%, and the salary rates 28% below those of 1930. The cooperation of the Union Electric Light and Power Company has been most helpful in working out a suitable power basis for the curtailed production schedules. The Block "P" Mine in Montana was maintained throughout the year on a watchman basis. Zinc Operations At the Edwards and Balmat Mines the 50% time basis was increased on August 1 to 73%. On June 5 the 5% wage reduction of April 1 was reinstated and on July 1 the 10% salary reduction was also restored. During the year the new and larger No. 2 shaft at Balmat was completed and all ore is now being hoisted at this shaft, resulting in more efficient mining opera tions. Modifications installed in the mill flow sheet have increased recoveries of zinc and pyrite. Stockholders will be pleased to hear that in August the Balmat Mine was awarded First Prize for Metal Mines in the United States in the Safety First Contest carried on under the auspices of the United States Bureau of Mines. The electro-thermic zinc smelter and add plant at Josephtown was also operated on a curtailed basis. On July 30 the l2*/t% wage reduction of April 1, 1933 was reinstated and on August 1, the 12l/t% salary cut was restored. An encouraging increase in sales of St Joe zinc oxide has resulted from development of new grades of this product for the rubber and paint industries. The electric furnaces have proved their eminent suitability for the production of lead free zinc-oxide. The mines and mills of the Kansas Explorations, Inc., were not operated during the year due to the small demand for zinc products. The entire inventory of stored zinc concentrates, amounting to 4,142 tons, was sold. Miscellaneous The increased price for newly mined gold has greatly benefited the Atlanta Mine operations. Although the development work in the lower level has not been encouraging, the life of the property has been extended through the leasing of the adjoining Monarch property. ' Titles to ten additional groups of claims around the Aguilar Mine have been granted by the Argentine governmental authorities. This entire property is being maintained on a watchman basis, pending an improvement in world conditions. There has been a slight decrease in the number of stockholders during the last year, The comparative share holdings are as follows: Year Number 20-less 20-99 100-199 200-over 1933 5,145 1,511 1,684 835 1,115 1932 5,360 1,584 1,796 875 1,105 1931 5,063 1,784 !. 1,349 831 1,099 Although the 1933 United States shipments of lead to consumers was greater than in 1932, the increase has been of no practical benefit to the lead miners, as the production of lead from scrap has greatly increased; for example, that from battery plates alone, has increased from about 93,000 tons for 1932 to an estimated amount of 133,000 tons in 1933. The lowest price for lead as well as the lowest mine production was in February. In looking back over the year, it is apparent, that general business was better than in 1932, that a balance between production and consumption in the lead industry has not been obtained, that the amount of lead consumed in the country is very much below normal in all lines, and particularly in the electrical industry, which has almost ceased to buy lead for cable covering, and which in normal times is one of the big uses of lead. It is hoped and expected that business conditions will be better in 1934 than in 1933, and that in cooperation with the National Industrial Recovery Administration, it may be possible for the lead industry to improve its statistical position, as well as its earnings. Notice of Annual Meeting Your attention is called to the accompanying Notice of Annual Meeting, and that the date is March 8, 1934, approximately one month earlier than usual. If you are unable tb be personally present, please sign and promptly return the enclosed postal proxy. CLINTON H. CRANE, New York, February 14, 1934. President. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY AND SUBSIDIARIES Consolidated Balance Sheets, December 31, 1933, and December 31, 1932 _ Capital Assets: Assets Ore reserves and mineral rights-- March 1, 1913, appraised value plus subsequent additions at cost < Less--Reserve for depletion Appreciation arising from revaluation Less--Reserve for depletion Total Ore Reserves and Mineral Rights Shafts and underground equipment (at cost) Less--Reserve for depletion Land, buildings, plant and equipment (at cost) Less--Reserve for depreciation Railway construction--cost being refunded Total Capital Assets Investments and Advances: Aguilar Corporation (at cost--86% controlled December 31, 1933) Mine La Motte Corporation (at cost--50% owned) Stocks of other mining companies (at market) Sundry securities and loans (at cost) Current and Working Assets: Cash on hand and in banks U. S. Gov't, State and Municipal Securities (at market) Notes and accounts receivable ' Notes receivable--employees Materials and supplies (at cost) Inventories of lead, zinc, etc. (at cost, less than market) Cash in Closed Banks Deferred Charges: Unamortized debt discount and expense Prepaid insurance, taxes, etc. Total December 31,1933 December 31,1932 $35,172,369.79 $35,362,63S.15 26,564,005.25 $ 8,608,364.54 25,715,277.46 $ 9,647,360.69 $ 4,315,000.00 3,612,008.52 $ 4,315,000.00 702,991.48 3,366,347.55 948,652.45 $ 9,311,356.02 $10,596,013.14 $ 4,581,269.50 $ 4,566,502.35 3,296,932.87 1,284,336.63 3,120,334.33 1.446,168.02 $20,369,493.65 $20,314,410.75 9,412,003.04 10,957,490.61 8,402.060.72 11,912,350.03 186,745.00 198,775.00 $21,739,928.26 $24,153,306.19 $ 1,515,000.00 805,484.63 147,752.00 432,136.17 $ 1,462,500.00 805,484.63 114,310.88 2,900,372.80 439,068.93 2,821,364.44 $ 1,399,749.25 3,194,097.49 1,107,550.59 13,320.00 1,552,129.39 5,666,363.18 $ 1,760,108.10 1,896,000.00 808,838.32 12,933,209.90 1,566,999.29 5,248,633.21 45,640.72 11,280,578.92 6.153.60 $ 188,861.85 143,949.68 $ 214,658.25 332,811.53 127,154.68 341,812.93 $37,951,963.21 $38,603,216.08 Liabilities Capital Stock: Authorized--2,500,000 shares of $10.00 each Issued--1,996,798 shares Less--In Treasury, 46,332 shares Net Scrip outstanding $25,000,000.00 $25,000,000.00 $19,967,980.00 463,320.00 $19,967,980.00 463,320.00 $19,504,660.00 $19,504,660.00 428.50 $19,505,088.50 428.50 $19,505,088.50 Minority Interest in Subsidiary Companies-- Capital stock and proportion of surplus applicable thereto Bonded Indebtedness: St. Joseph Lead Company Ten Year Convertible 554% Gold Debenture Bonds due May 1, 1941 Less--Bonds in Treasury $ 9,752,300.00 1,752,300.00 85,306.69 $ 9,752,300.00 8,000,000.00 1,752,300.00 91,918.97 8,000,000.00 Current Liabilities: Accounts payable (including accrued taxes) Accrued wages Accrued interest on bonds in hands of public $ 1,039,157.94 43,569.32 73,333.35 $ 829,792.24 40,220.83 1,156,060.61 73,333.33 943,346-40 Deferred Credits*-- Unrealized profit from sale of houses, etc. Reserve for Contingencies Surplus Earned Revaluation of Ore Reserves $ 7,269,407.83 702.991.48 89,686.93 1,143,421.17 $ 8,184,882,43 7.972,399.31 948,652.45 97,150.02 832,177.31 9,133,534.88 Total $37,951,963.21 $38,603,216.08 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Summaries of Consolidated Income and Surplus For the Years Ended December 31* 1933 and 1932 Profit from Operations: Before interest and expense on Funded Debt, Depreciation and Depletion Other Income: Interest--Net Dividends Miscellaneous Total Other Income Gross Income: Deduct--Interest and Expense on Funded Debt Income Before Depreciation* Depletion and Abandoned Leases Add--Provision for Depredation Income Before Depletion and Abandoned Leases Add---Provision for Depletion Abandoned Leases Total Deductions Net Loss Deduct--Proportion of Net Loss Applicable to Minority Interests Loss for the Period Surplus at Beginning of Period, Including Revaluation of Ore Reserves Surplus at End of Period* Including Revaluation of Ore Reserves December 31,1933 December 31,1932 $ 1,732,207.99 $ 123,479.76 $ 42,273.72 2,500.00 5,300.31 $ 50,074.03 $ 1,782,282.02 465,796.42 $ 1,316,485.60 1,022,922.73 $ 293,562.87 $ 1,270,987.30 190,323.42 $ 1,461,310.72 $ 1,167,747.85 6,612.28 $ 1,161,135.57 9,133,534.88 $ 73,427.26 2,725.00 4,277.08 $ 80,429.34 $ 203,909.10 491,790.21 *$ 287,881.11 1,011,845.62 $ 1,299,726.73 $ 1,606,310.78 $ 1,606,310.78 $ 2,906,037.51 12,015.35 $ 2,894.022,16 12,027,557.04 $ 7,972,399.31 $ 9,133,534.88 Deficit. CERTIFICATE St. Joseph Lead Company! We have made an examination of the consolidated balance sheets of St. Joseph Lead Company and its subsidiary companies as of December 31, 1933 and 1932, and of their summaries of consolidated income and surplus for the years ended on those dates. In connection therewith, we examined or tested accounting records of the companies and other sup porting evidence, and made a general review of the income and operating accounts for the years 1933 and 1932, and verified the cash balances, but, under the terms of our engagement, we did not make a complete verification of the cash transactions for those years. All subsidiary companies controlled by your company were examined by us with the exception of the South American subsidiary of Aguilar Corporation, which South American subsidiary was audited by Messrs. Price, Waterhouse, Faller & Company. The inventories of lead, zinc, etc., are valued at cost, which is less than market, not including depreciation and depletion, and were not verified by us as to quantities. In our opinion, subject to the foregoing, the accompanying consolidated balance sheets and related summaries of con solidated income and surplus fairly present their financial condition at December 31, 1933 and 1932, and the results of their operations for the years ended on those dates, and have been prepared in accordance with consistent application of their system of accounting and with accepted accounting principles. HASKINS & SELLS. New York, February 14, 1934. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. St. Joseph Lead Company 250 PARK AVENUE. NEW YORK NOTICE OF ANNUAL MEETING February 14, 1934. To the Stockholders of the ST. JOSEPH LEAD COMPANY: NOTICE IS HEREBY GIVEN that the Annual Meeting of the Stockholders of St. Joseph Lead Company will be held at the office of the Company, No. 250 Park Avenue, Borough of Manhattan, City of New York, on Thursday, March 8, 1934, at eleven o'clock in the forenoon, for the following purposes : To elect eleven Trustees to serve until the next Annual Meeting. To elect two Inspectors of Election to serve at the next election of Trustees of the Company. To consider and approve the President's Annual Report to Stockholders, and the acts of the Trustees and Officers of the Company as therein described and as reported at said Meeting. To consider and transact such other business as may properly come before said Meeting. For the purpose of this Meeting all persons who were Stockholders of record at the close of business on the 26th day of February, 1934, and no others, shall be entitled to vote at said Meeting. - H. B. McGOWN, Secretary. IMPORTANT If you do not expect to be personally present at the Meeting, please sign the enclosed postal proxy and return it promptly. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY PRESIDENT'S ANNUAL REPORT TO STOCKHOLDERS FOR THE YEAR 1933 I Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.