Document QJ72wR83wznpznynn3j8BZd87

Saint Joseph Lead Company Annual Report -- 1918 America's Corporate Foundation; 1918; ProQuest Historical Annual Reports Pg- 1 PRESIDENT'S ANNUAL REPORT TO THE STOCKHOLDERS OF THE St. Joseph Lead Company FISCAL YEAR ENDING DECEMBER 31, 1918 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, 1918 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, 1918 In the year 1918 dividends to the amount of $2,818,992. have been paid to shareholders. Your smelter produced for the year 79.620 tons of pig lead. Your mills produced 133.099 tons of lead concentrates, 125.320 tons of which were shipped to your smelter and 7,779 tons sold to other smelters. Your mines produced 2,299.490 tons of ore. FINANCIAL During' the year your company purchased and now holds in its treasury or in the sinking fund $25,000. additional bonds of the Mississippi River & Ilonne Terre Railway. In order to pay taxes in June it sold $1,250,000. par value U. S. Government Liberty 3j/>s. It purchased $200,000. of the Third Liberty Loan and $503,500. of the Fourth Liberty I*oan and in addition $179,300. of the Third and $184,700. of the Fourth for the account of its employees, the employees being allowed to pa\ for these bonds on a weekly installment plan with the privilege of selling them back to the company at par. Employees have sold back to the company $142,200. par value of these bonds. AMORTIZATION In my annual report for the fiscal year ending December 31, 1916, I described the plan adopted by your Trustees for setting up a reserve to amortize the Com pany's ore reserves. This plan recognized the fact that the value of the ore fluctuated with the market price of lead. It resulted, owing to the high prices which prevailed during the war period, in setting aside from earnings an amount considerably greater than was allowed by Treasury Department rulings. It has seemed wise to the Trustees to revise the Company's plan to agree with the plan put in force by the Treasury Department in allowing depletion as a deduction front income in assessing income and excess profits taxes, and to revise the Com- 3 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. pany's books in accordance with this change of plan. Stockholders will notice in the balance sheet, that this has resulted in decreasing the reserve for amortizag tion and correspondingly increasing the Company's surplus. SUBSCRIPTIONS Your Company subscribed $25,000 in May, 1918, to the American Red Cross and $60,000 in November, 1918, to the United War Work Campaign. CURTAILMENT OF PRODUCTION With the signing of the armistice in November and the subsequent cancella tion of Government munition contracts, the purchase of nearly 25,000 tons of lead per month which had been going into direct or indirect Government war uses, was discontinued in the month of December. So that from the position of being entirely unable to meet the demand, the lead industry faced the prospect of a serious over-supply. No one expected that the full 25,000 tons a month could quickly be diverted to peace uses, this amount representing more than half the normal production. Most of the companies saw the necessity of at once curtailing output but none of them desired to make the curtailment sufficiently drastic to throw out of employment large numbers of their employees at the beginning of the winter. The companies in St. Francois County, Missouri, where your mines are situated, in early December, went to a five-day week, but as lead continued to pile up, a still further cut in production was made. The company is now operating at about 60% of normal. Lead on February 10, 1919, was selling at $4.65 per 100 lbs. East St. Louis as compared to $7.75 in November, 1918: TAXES Federal Income and Excess Profit Taxes amounting to $2,597,001.46 were paid in June, 1918, on account of 1917 income. Your company is reserving $2,000,000 of its 1918 earnings for the payment of 1918 Federal Income and Excess Profit Taxes. Clinton H. Crane, President. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. BALANCE SHEET 6 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPi AND SUBSIDIAB CONSOLIDATED GENERAL BALANCE SHEET Capital Assets: ASSETS Ore Reserves and Mineral Rights.......................................... 816,437,902.80 Less Reserve for Depletion : Amountof Reserve at December 31,1917 8,540,635.97 Less Correction in Accordance with Treasury Decision, No. 2446.............. 85,072,899.10 Remainder ............... $3,467,736 87 Add Depletion for Year 1918............... 1,297,90930 4,765,646.17 811,672,256.63 Buildings and Equipment at Mines....................................... $7,375,978.66 Less Reserve for Depreciation............................................... 282,182.05 Real Estate................................................................................ Farm Lands, Buildings, and Equipment............................. 81,060,207.58 Less Reserve for Depreciation.............................................. 67,440.21 Railroad Property and Equipment...................................... $4,205,094.06 Less Reserve for Depreciation............................................... 286,148.40 7.093,796,6i 51,939.08 992.767 37 3,918,945.66 Total Capital Assets............................. S23.729.705.35 Sinking Fund Cash and Accrued Interest............... 7,636.06 Current Assets : Cash........................................................................................... United States Government Certificates of Indebtedness__ United States Government Liberty Loan Bonds................ Accounts and Notes Receivable............................................ Lead on Hand and in Process............................................... Materials and Supplies............................................................. Store Accounts (Net).............................................................. $1,333,257 -74 1,000,000.00 2,241,850.25 918,083.20 481,945.75 1,651,038.31 26,620 74 Deferred Debit Items : By-Product (Matte)................................................................. Real Estate Sold on Long Term Contracts......................... Advances to Bonne Terre Hospital Association................. Insurance Premiums, Unexpired Portion............................. Miscellaneous Items in Suspense........................................... $*93652.09 152,201 .41 54,000.00 17,56567 127,991 71 7,652,795.99 645,410.88 = I ' Total....................................................................................................832,035.548.28 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ,EAD COMPANY OMPANIES DECEMBER 31, 1918 Capital Stock : LIABILITIES St. Joseph Lead Company : Authorized--2,000,000 shares of Si0.00 each, of which there have been issued 1.4.64,798 shares................ $14,647,980.00 Less Held in Treasury, 55,332 shares............ 553.32 00 $14,094,660.00 Subsidiary Companies, Minority Stock Held by Public......................... 2,090.00 Funded Debt: Mississippi River & Bonne Terre Railway First Mortgage 5% Bonds, Due 1931........................................................ Less Bonds in Sinking Fund and in Treasury........ $2,500,000.00 694,000 00 Current Liabilities: Accounts and Wages Payable................................................. Traffic and Car Service Balances........ Accrued Taxes.......................................................................... Accrued Interest.................... $511,945.10 63,461.34 166,743.22 29,562.50 Deferred Credit Items 1,806,000.00 771,712.16 5.5IO-73 Reserves : For Profit on Lease Agreements............................................ For Premiums on Bonds to be Purchased for Sinking Fund. For Contingencies...................................................................... For Federal Taxes.................................................................... $68,209.82 5,888.82 22,937.69 2.000,000.00 Profit and Loss Surplus : Balance March 1, 1913............................................................ Less Distributions therefrom............... $3,925,000.00 3,523,665.00 2,097,036.33 Remainder Undistributed Profits Accumulated March 1, 1913. to De cember 31, 1917................................................................. Adjustment of Reserve for Depletion as of December 31, 1917, in Accordance with Treasury Decision No. 2446................ S5.072.899.10 Less Federal Taxes for the Year 1917, etc . 2,487,883.75 Income for Year Ended December 31, 1918, after Providing for Depreciation of Plant and Equipment........................... $5,121,164.39 Less Provision for: Depletion, etc................ $1,297,980.68 Federal Taxes, Year J918......................... 2,000,000.00 3,297.980 6S $401,335.00 1,268,009.00 2.585.'S-35 1,823,183 71 Total...........................................................$15,676,208.06 Less Dividends Paid in 1918................................................... 2,819,004.00 Remainder, $12,857,204.06 13,258,539.06 Total..................................................................................................... $32,035,548.28 CERTIFICATE OF AUDIT We have audited the books and accounts of the St. Joseph Lead Company and its subsidiary com panies for the year ended December 31, igi8, and We Hereby Certify that, in our opinion, the above Consolidated General Balance Sheet correctly sets forth the financial position of the Companies at the date shown. New York, February 10, 1919. HASKINS & SELLS. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.