Document OE5KEqmnex36drk771dVaqRov

Annual Repo NATIONAL LEAD for Fiscal Year E December 31, Principal Office i oo 1 Exchange Place, Jersey City 01 2* Executire Office* i 111 Broadway, New Yo -4 VC VC 00 N 2631 0000-NLI-000017999 2 Annual Report National Lead Company 1 Exchange Place, Jersey City, N. J. Report to be Presented to the Stockholders at their Twenty-Sixth Annual Meeting, April 18, 1918, for the Fiscal Year Ending December 31,1917. To the Stockholders of National Lead Company-- The following Balance Sheet shows the condition of the Com pany on December 31, 1917: , ASSETS Plant Account.........................................................$?6,892,753.74 Less Depreciation and Depletion Reserves 1,663,081.65 $25,229,672.09 Othar Investment*: Stocks and Bonds of Insurance Fund .. Stocks and Bonds of Companies not en tirely owned by National Lead Com pany and Other Investments.............. Stocks and Bonds of Subsidiary Com panies ............................... .................. $1,400,000.00 3,353,555.37 14,000,212.99 18,753,768.36 Current Assets: Inventories ............................................. Cash .......................................................... Customers' Accounts .... $3,804,363.48 Less Bad Debt Reserve .. 76,520.01 $8,222,782.05 942,149.95 3,727,843.47 Advances to Subsidiary Companies.......... 1,096,414.54 Other Notes Receivable .......................... 750,000.00 14,739,190.01 $58,722,630.46 LIABILITIES Capital Stock: Preferred .........................................................$24,367,600.00 Common ........................................................ Insurance Fund .................................................... Metal Reserve...................................................... Plant Reserve......................................................... 20,655,400.00 1,400,000.00) 300,000.00) 2,500,000.00-' Tax Reserve............................................................... 493,240.92 , , jii.- J Accounts Payable: Audited but not due ,___ $571,987.98 Subsidiary Companies ........ 92,837.83 664,825.81 Surplus, December 31, 1917 8,341,563.73 $58,722,630.46 National Lead Co STATEMENT OF NET EARNIN OF SAME Surplus, December 30, 1916....................... Net Earning* for 1917, after deduction for Maintenance, Repairs, etc............. Less Dividends: Dividends on Preferred Stock, 7%..... Dividends on Common Stock, 4%....... Red Cross Extra Dividend on Commo Stock, 1% ............................................... Surplus, December 31, 1917 A comparison with the preceding y Statement: ASSETS Dec. SI. 1817 Plant Investment $25,229,672.09 Other Investments 18,753,768.36 Inventories 8,222,782.05 Cash................. 942,140.95 Customers' Accts 3,727,843.47 Other Notes Re ceivable ....... 750,000.00 Subsidiary Cos.. 1,096,414.54 Dec. 80,19 $23,805,233 17,980.306 7,320,170 1,283,519 3,813,625 125,000 836,044 $58,722,630.46 $55,163,900 LIABILITIES Dec. 81, 1917 Preferred Stock. $24,367,600.00 Common Stock. 20,655,400.00 Insurance Fund 1,400,000.00 Metal Reserve.. 300,000.00 Plant Reserve... 2,500,000.00 Tax Reserve ... 493,240.92 Accounts Payable 571,987.98 Subsidiary Cos.. 92,837.83 Surplus .............. 8,341,563.73 Dec. 30. 191 $24,367,600 20,655,400 1,200,000 300.000 400.000 435,056 1,622,731 6,183,112 $58,722,630.46 $55,163,900 0000-NLI-000018000 4 Annual Report CONSOLIDATED STATEMENT In this Statement the Assets and Liabilities of the Subsidiary Companies in which the National Lead Company owns AI.L of the Capital Stock have been consolidated with the National Lead Company instead of appearing under the heading OTHER IN VESTMENTS. ASSETS Plant Account ......................................................... $43,911,300.22 Less Depreciation and Depletion Reserve 2,353,336.51 $41,557,963.71 Other Investments: Stocks and Bonds of Insurance Fund .. $1,400,000.00 Stocks and Bonds of Companies not en tirely owned by National Lead Com pany and Other Investments ....... 7,102,635.33 8,502,635.33 Currant Assets: Inventories ..................................................... $14,138,222.13 Cash ................................................................... 1,702,083.79 Customers' Accounts .... $12,875,297.30 Less Bad Debt Reserve .. 194,343.89 12,680,953.41 Other Notes Receivable 2,132,000.70 30,653,260.03 Capital Stock LIABILITIES Preferred ......................................................... $24,367,600.00 Common ........................................................... 20,655,400.00 Bonds of Subsidiary Companies....................... 10,051,000.00 Insurance Fund ..................................................... 1,400,000.00 Metal Reserve......................................................... 300,000.00 Plant Reserve ...................................................... 2,500,000.00 Tax Reserve ........................................................... 1,698,713.87 Accounts Payable Audited but not due.......... 4,725,720.27 Surplus, December 31, 1917.............................. 15,015,424.93 $80,713,859.07 $80,713,859.07 The first of the foregoing statements follows the form of statement as reported to stockholders since the organization of the Company in 1892. It is and always has been a consolidated statement of the National Lead Company (a New Jersey Corpora tion) and the following subsidiary corporations:--National Lead Company of Massachusetts, John T. Lewis & Bros. Company, National Lead & Oil Company of Pennsylvania and National Lead Company of California. Under the heading "Other Invest ments" has always been reported, at the cost thereof to the National Lead Company, all other investments made by the Com pany, including stocks and bonds in other corporations. Only the dividends actually declared and paid by these last corporations have been reported as a part of the earnings of the National Lead Company. Among the companies, the stock in which has all been National Lead C owned by the National Lead Compan & Relining Company. The mining an National Lead Company and also the sulphate have been carried on by t The recent high price of pig lead h profits and at the same time has che factured lead products. There is n different departments should be kep organizations. Therefore in the latte St. Louis Smelting & Refining Compa erties, excepting the Smelting Works Plant and some minor properties, to t at what was considered their fair va surplus in dividends. It then reduce 000,000 to $500,000 and declared a ca The properties, securities and cash re Company in the transaction are distrib the several appropriate headings. T Smelting & Refining Company forme the National Lead Company at the co now carried at $500,000. The surplu & Refining Company declared in divid 148.35, necessarily appears on the b Company as a part of its earnings i represents the accumulated earnings, n the St. Louis Smelting & Refining Com All of the capital necessary to the acquired from the St. Louis Smelting be necessary to the operation of the s ment of the National Lead Company The increase in the Plant Reserve A reconstruction of the Atlantic Plant a constructed by the John T. Lewis & B The item "Depreciation" appears i time. Previous to 1916 it was the charge new construction and betterm count in lieu of depreciation. In 191 the properties was adopted to conform the United States Government for ta ent provision has been made for the properties owned by the Company. A Bad Debt Reserve is shown in a new account but heretofore has been Accounts, only the remainder being ported, $76,520.01, is the accumulation represents the amount remaining afte all bad debts. 6 Annual Report Consolidated Statement Subsidiary Corporations It has been the policy of the Company to build up all new properties coming into its ownership and incorporate them into the Parent Company by natural growth. To that end the earn ings of all subsidiary corporations have been habitually applied first to new construction and improvement of such subsidiary companies--second to supplying them with sufficient working capital and third to the declaration of dividends which when re ceived were reported as a part of the earnings of the National Lead Company. The second of the foregoing statements is a consolidated statement of the National Lead Company and all its subsidiary companies in which it owns ALL of the capital stock. In making up this consolidated statement the assets of the several subsidiary companies have been determined by valuing the properties of such subsidiaries at the time they were ac quired by the National Lead Company at their book value in all cases where the price paid therefor was more than the book value of such assets. In cases where the price actually paid for properties has been less than the book value thereof, as appear ing upon the books of the companies so acquired, the assets have been depreciated to conform to the price actually paid therefor by the National Lead Company. Under the heading "Other Investments" is included Government and other securities and also stock in the following corporations in which the National Lead Company owns only a part of the outstanding stock, viz-- United States Cartridge Company, Baker Castor Oil Company, River Smelting & Refining Company, Williams Harvey Company, Limited, of England, Williams Harvey Corporation of New York, Cinch Expansion Bolt & Engineering Company. The values placed on such "Other Investments" are the actual cost thereof to the National Lead Company. The increase in surplus as shown in the second statement as compared with the first rep resents the accumulated earnings not declared in dividends since the acquisition of the subsidiary companies in which the National Lead Company owns all of the capital stock. It is believed that in both statements all of the personal prop erty has been inventoried conservatively. In the "Plant Ac count" of both the National Lead Company and its subsidiaries there has never been any separation of "Good Will" and lands, buildings and machinery. At this late date no such division can be made, based on original cost. It is a conservative statement"'1 to say that at the present time the physical value of the assets j owned by the National Lead Company, exclusive of good will and ( intangible assets, exceeds the amount of the capital stock out- j standing, both preferred and common. X National Lead Dividen The dividends on both the pre 1917 were declared and paid out o always been the practice of the Na be continued in the future unless th the contrary. The Company declared an ext denominated Red Cross Extra D advised by its counsel that the cor porate power to make donations to similar funds; that the officers of agents clothed only with such powe of Incorporation gave them, among generous with the stockholders' e sumably reserving that power to t request of the gentlemen promoting dividend of 1% on the common sto holders receiving such dividends w tation upon the officers of the cor themselves performing the moral a this most worthy cause. We hav what extent our stockholders wer directly or indirectly the greater p found its way into the Red Cross F At the February 1918 meeting dividend of i*4% on the common declared, thus placing the common annum basis. It is believed that th tained. As stated in the report of that the Company should keep itse difficulties and losses, if any, at normal conditions after the war ar Trade Con The cost of raw materials con to war conditions. The market p linseed oil treble its normal value. have doubled. The cost of fuel, freights, cartage and everything manufacturing and marketing ou creased. In obedience to natural la fallen off while in other lines, wh indirectly by war conditions and capacity of your Company. 0000-NLI-000018002 8 Annual Report Williams Harvey Company, Limited, of England Williams Harvey Corporation, of New York The tin smelting works being constructed in Brooklyn by the Williams Harvey Corporation are nearing completion. There have been delays due to war conditions but operations are ex pected to begin in July. The National Lead Company and the former owners of the Williams Harvey Company, Limited, of England, have sold one-third of the outstanding capital stock of both the English and American Corporations to Mr. Simon I. Patino, the largest individual tin mine owner in Bolivia. Under the present stock ownership in both companies the miner, smelter and distributor are equally interested in the success of the enterprise. National Lead Company of Argentina During the past year we have organized a South American Company incorporated under the laws of the Republic of Ar gentina. Its name is National Lead Company. Its office and factory are situated at No. 2469 Tres Esquinas Street, Buenos Aires. The high duty imposed on alloys of lead, tin and antimony under the Argentine tariff laws has prevented us from, obtain ing any mixed metal business in that country. This obstacle could only be overcome by manufacturing in Argentina. A local company will also be able to secure and care for all our South American business more efficiently and with greater con venience to customers than is possible when operating from the United States. The new company is manufacturing mixed metals and will draw its supplies of pig tin from the Williams Harvey Company, Limited, Liverpool. This will be a new market for the English Company and the business thus obtained will serve to offset the loss of tonnage it will sustain by reason of the smelting opera tions of the Williams Harvey Corporation in the United States. United States Cartridge Company Inquiries are frequently made regarding the affairs of the United States Cartridge Company. As stated in previous re ports the National Lead Company owns one-half of the out standing capital stock of that Company of the par value of $400,000. That Company has declared no dividends and has made no statements other than those required by the Government of the United States and the State of Massachusetts. Its new buildings are on leased ground. Its equipment for making rifle ammunition will probably be of little value after the war. Such profits as it makes will be subject to taxation in an amount that National Lead C cannot now be foretold. It expect proportion to its capital stock and v tion to its volume of business. At capital it has in its business. It is s facture in which it can utilize a por the war, in addition to its manufac may need additional capital for this dividend declared by that Company Charles W. Fe Charles W. Ferguson of Webster ruary 13, 1918, at the age of 69 years the Company and its predecessors fo clerk, later as the Superintendent Southern White Lead Company at S tion of the National Lead Company sistant Manager of the St. Louis Bra facturing operations in that city. In man of the Manufacturing Commi Company with an office in New Y health compelled him to retire from tinued in the employ of the Company death. He survived three Presidents pany, all of whom gave him their co his counsel. The writer acknowledg the education received in factory ope tion derived from Mr. Ferguson's lo Stockholde The Company's records show the December 3, 1917, as compared to the Common Only ........ Preferred Only .... Both (Com. & Pfd.) 1916 i,594 4.632 414 Total ............... 6,640 The number of women owning st Common Only ................... Preferred Only ................. Both (Com. & Pfd.) .... Total ........................... The number of accounts closed a 1917 are as follows: Closed ......................... Opened ......................... 0 0 0 0 -N L I-0 0 0 0 18003 10 Annual Report In view of the disturbed financial conditions and wide fluctua tions in the market value of stocks, the small number of stock holders whose names have been dropped from our books is in terpreted by the management as an expression of confidence and an approval of the conservative policy of the Company. War Service The Company has tendered the services of all its officers, laboratories, plants and experts to the Government. Two assist ant managers, two superintendents, one engineer, and many skilled mechanics are now in the active service of the Government. The National Lead Company has promised them re-employment after the war and by the courtesy of the Equitable Life Assurance Society is carrying at its expense insurance upon their lives equal to one year's salary, not exceeding $5,000, payable in case of death to the dependents named by them. The Company and its subsidiaries have subscribed liberally to the several war bond issues. In the sale of merchandise either to the Government or to its contractors the Company has habitually charged prices lower than those quoted to its largest and most valued private customers and at the risk of great disturbance to its general business has given to the Government and its contractors special service in the matter of deliveries. Conclusion The operative departments have been working under the most trying conditions. Common laborers have been scarce; skilled mechanics, experienced accountants, trusted foremen have left the Company in large numbers, either to enter the Government service or accept positions with others more important than any the Company could give. Increased costs and diminishing sales have tended to discourage the manufacturing, sales and account ing departments of the Company. Delays in transportation have frequently resulted in closing the plants for want of raw material or needed supplies. I cannot too strongly commend the loyalty and resourcefulness of our officers and employees under these trying circumstances. As necessity required they have taken on additional work. Those promoted to fill vacancies have measured up to the standard required. New employees have been quickly educated to the work required of them. On the whole satisfac tory working conditions have been maintained. I take pleasure in calling these facts to the attention of the stockholders and also to express to the officers and employees the appreciation of the management for their loyalty and efficiency. Respectfully submitted, Ed w a r d J. Co r n is h , President. National Lead Co Directors EDWARD F. BEALE, GEORGE O. CARPENTER, FRED M. CARTER, R. R. COLGATE, EDWARD J. CORNISH, GRAFTON D. DORSEY, CHARLES E. FIELD, GEORGE W. FORTMEYER, EDWIN C. GOSHORN, NORRIS B. GREGG, REGINALD P. ROWE, WILLIAM N. TAYLOR, GUSTAVE W. THOMPSON, WALTER TUFTS, JOHN R. WETTSTEIN, E. F. BEALE R. P. ROWE Executive Com EDWARD J. CORNIS 0 0 0 0 -N L I-0 0 0 0 18004 12 Annual Report Executive Officers President EDWARD J. CORNISH Vice-Presidents GEO. O. CARPENTER R. P. ROWE N. B. GREGG Assistant to the President M. D. COLE Secretary CHARLES DAVISON Assistant Secretary STRATFORD A. MILLER Treasurer FREDERICK R. FORTMEYER Assistant Treasurer CHARLES SIMON General Counsel ALEXANDER & GREEN 120 Broadway, New York, N. Y. Registrar of Stocks BANKERS TRUST CO 14 Wall St.. New York, N. Y. Departments Manufacturing Committee C. P. TOLMAN, Chairman L. T. BEALE H. P. CAVARLY EVANS McCARTY G. W. THOMPSON Supervisor of Manufacturing CHARLES W. FERGUSON Sales Committee O. C. HARN, Chairman L. T. BEALE C. C. FOERSTNER O. H. GREENE W. N. TAYLOR Advertising Department O. C. HARN, Manager Metal Committee E. J. CORNISH, Chairman S. A. MILLER, Secretary W. H. BAKER L. T. BEALE W. C. BESCHORMAN A. F. CURTIS G. D. DORSEY C. E. LINDSLEY H. J. McBIRNEY SHELDON THOMPSON C. F. WELLS, Jr. J. R. WETTSTEIN Laboratory G. W. THOMPSON, Chief Chemist A. H. SABIN, Consulting Chemist National Load Co Departments (Co Metal Departm A. B. HALL, Ma Flaxseed Depar CHAS. T. NOLAN, Insurance Depar I. M. STETTENHEIM Traffic Departm W. S. MELLEN, Branches National Load Co ATLANTIC BRANCH, R. F. ROWE, Manager, BUFFALO BRANCH, SHELDON THOMPSON, Manager, CLEVELAND BRANCH, O. 0. FOERSTNER, Manager, CINCINNATI BRANCH, . G. GOSHORN, Manager, F CHICAGO BRANCH, OHAS. E. FIELD, Manager, ST. LOUIS BRANCH, GEO. O. CARPENTER, Manager, JOHN T. LEWIS & BROS. CO., EDWARD F. BEALE, Pree., Lafayette NATIONAL LEAD & OIL CO., OF PEN W. N. TAYLOR, President, Common NATIONAL LEAD CO., OF MASSAC WALTER TUFTS, Treasurer, Board NATIONAL LEAD CO., OF CALIFOR JAB. B. KEISTER, Vice-President, NATIONAL LEAD CO. OF ARGENTI G. D. DORSEY. President, SOO8I00OOTIM-0000 14 Annual Report Local Offices National Load Company DETROIT, MICH., MILWAUKEE, WIS., ST. PAUL, MINN., OMAHA, NEB., KANSAS CITY, MO., LOUISVILLE, KY, NASHVILLE, TENN., NEW ORLEANS, LA., Corner Howard and Tenth Streets 52 Second Street 404 Willius Street 1104 Woodmen Building 1406-1408 West Thirteenth Street Stark Building 303-305 Tenth Avenue, South 513 South Peters Street . John T. Lewis ft Bros. Company BALTIMORE, MD., 1015 East Fayette Street National Lead Com Corporations in Which the Nat Is Interested Through Own Part of the Capita BAKER CASTOR OIL COMPANY, F. O. MARSH, President. Manufacturers of Castor Oil. BASS-HUETER PAINT COMPANY, NORRIS B. GREGG, President. Manufacturers of Mixed Paints, Varnishes an CARTER WHITE LEAD COMPANY, FRED. M. CARTER, President. White Lead Corroders. CINCH EXPANSION BOLT AND ENG GRAFTON D. DORSEY, President. Manufacturers of Expansion Bolts. HEATH & MILLIGAN MANUFACTUR NORRIS B. GREGG, President. Manufacturers of Paints and Colors. MAGNUS COMPANY, INCORPORATE H. H. HEWITT, President. Brass Founders. MATHESON LEAD COMPANY, W. J. MATHESON, President. White Lead Corroders and Manufacturers of RIVER SMELTING AND REFINING C EDWARD J. CORNISH, President. Smelters and Refiners of Zinc. - ST. LOUIS SMELTING AND REFININ J. A. CA8ELTON, 2nd Vice-President an Miners, Smelters and Refiners of Lead. UNITED LEAD COMPANY, J. R. WETT8TEIN, President. Manufacturers at all Products ot Lead, Smelt UNITED STATES CARTRIDGE COMP PAUL BUTLER, Treasurer. Manufacturers of Metallic and Sporting Amm WILLIAMS HARVEY & COMPANY, LI RIOHARD F. PEARCE, Managing Directo Smelters and Refiners of Tin. WILLIAMS HARVEY CORPORATION EDWARD J\ CORNISH, President. Smelters and Refiners of Tin. 0 0 0 0 -N L I-0 0 0 0 18006 16 Annual Report Product* Manufactured by National Lead Company White Lead, Dry White Lead in Oil Red Lead, Dry Red Lead in Oil Painter*' Material* Colors, Dry and in Oil Linseed Oil, American and Calcutta, Raw, Boiled, Refined, Varnishmakers' Babbitt Metals Bearin* Metals Pressure Die Castings Ulco Hard Metal Lead Pipe Block Tin Pipe Tin-lined Lead Pipe Plumbers* Material* Leadamant Pipe Lead Traps and Bends Solder Soldering Flux Linotype Metal Monotype Metal Printer*' Metal* Stereotype Metal Electrotype Metal Bar Solder Wire Solder Cannon' Materials Ribbon Solder Triangular Solder Soldering Flux Red Lead Litharge Orange Mineral Glassmakers' Oxides Colormakcrs' Oxides Lead Oxide* Rubbermakers* Oxides Varnishmakers' Oxides Enamelmakers' Oxides Potters' Oxides Accumulator Oxides Miscellaneous Lead Products Sheet Lead Lead Wool Glaziers' Lead Lead Wire Bar Lead Lead Sash Weights Antimonial LeadProducts Piano Key Leads Cinch Expansion Bolts General Products Brown Sugar of Lead Linseed Oil Cake and Meal White Sugar of Lead Castor Oil ' Plastic Moulding Materials a if