Document QJNdp3xg4xMMGVBnOw7rd0ZQ6

Pogaon, Peloubet & Co. Certified Public Accountants 1SR000915 INDEX gage 1 2 3 4 4 4 5- 7 7 7-9 10 - 41 42 - 43 Scope of the report Financial condition of the company Company operations Income or loss from sundry investments Investments in vholly cvned subsidiaries Other Investments Statement of funds received and disbursed Distribution of Balance Sheet aid Income Aocount to departments Scope of audit Financial statements and explanatory schedules (see alphabetical index) Alphabetical Index < 4W* ` * ioMSV . .UOu(T PoasoN, Pe l o u s e t & Co. CERTIFIED PUBLIC ACCOUNTANTS xumi Cor,r t3. w AO EN* PASO 'CBION PC*Cv . >09KN. jw. YOB,2S e*OAO' .V, Nt. A. y. j COPY Xo the Board of Birectors, International Smelting and Refining Company, 25 Broadway, New York 4, New York. Dear Sirs: We have made a general audit of the books a ad accounts of INTERNATIONAL SMELTING AND REFINING COMPANY for the 3 ear ended Deeember 31, 1944, and present the various statements listed on tl e opposite page. The acoounts of New Jersey Storage and Wan house Company and Raritan Terminal and Transportation Company, vfcolly < wned subsidiaries, which are not operating, have not been consolidated with tl oee of International Smelting and Refining Company In this report. International Smelting and Refining Company is a 100-J owned conaolidated subsidiary of Anaconda Copper Mining Compa: y. This report, while oomplete and inclusive for International Smelting an< Refining Company, i9 principally a supplementary amplification of the rape rt on audit of Anaoonda Copper Mining Company and subsidiary companies. It 1 bows the portion of the consolidated acoounts of Anaconda Copper Mining Compi ny relating to International Smelting and Refining Company on the same h sis and under the same olasslfications aa shown in the consolidated report, but in somewhat greater detail. In the consolidated acoounts of Anaconda Co per Mining Company and subsidiary companies the investment of International Smelting and Refining Company in shares of National Tunnel fc Mines Company (aoquired in exchange fee shares of Utah-Delaware Mining Company) has been reduced by $136,307.60 to reflect losses of Utah-Delaware Mining Coojany du isg the period of its inclusion in auoh consolidated accounts. This redue ion has also been given effect to is this report as shows on pages 12 and 1 2 PTHa UCIAL Summarized, the changes In financial condition]during the year were as follows: At December >1, Piled assets, less reserves mi applicable thereto i 1*,797.9*9.75 Deferred charges 1,90*,915.06 Current and other assets - net, except notes payable to iv 31, 1*.' 87*.19 2,27* 1,520.85 Decrease* or Increase in Investment 737,075.56* 369,607.79 Company 6.531,752.67 6,7l|>.903.70 185.151.03 Reserves for workmen's compenaction Insurance 23,234,615.48 23,05|i,298,7* 182,316.7** 58,5*4.09 5 3,376.6* 6.167.45* Equity of Anaconda Copper Mining Company t 23,176,071.39 22,99j),922.10 176,1*9.29* The equity of Anaconda Copper Mining Company Jit December 31, 19** Is represented by: Capital stock notes Surplus As above $ 12,2*2,500.00 10,540,000.00 217.422.10 * 22,999,922.10 and represents Investaent In the following net assets:} Principal ameltlng, refining and manufacturing plants (details page 3) I 15,9P2,783.64 Securities of and advances to other companies, etc. (details pages * and 40) Lcfe?, 138,46 As above 1 22,999,922.10 The decrease In equity' during the year 19*4 lis the result of the net loss for the year Advances to international Building Association vrittei off t 94,300.61 110,8*8.68 Investment In International Building Association vrltfen off 1.000.00 206,1*9.29 Less overaccrual of federal Income tax for the year 30,000.00 Decrease, as above * 176,1*9.29 Changes in current position were as follovmt December 31, 1943 December 31, 1 19*4 Current assets 10,219,504.30 8J29I,256.17 Current liabilities 3.976.112.00 11892.795.76 Increase or decrease* 1,928,~2*8.13* 2.083.316.2** - $ 6,243,392.306|398,460.41155,068.11 Current ratio 2.6 to 1 4.4 to 1 OPERATIONS 3 Operations of International Smelting and Refi|ning Company for the past three years compare as follows: Year 1942 Gross sales and earnings $ 20,341,958.0? Net profit on plant operations^ Income (loss*) from sundry investments 1,042,376.8? 1^2,598.21 Yea: 19U3 22,04* ,552.29 76^ 377.88 Year 1944 21,918,993.90 412,217.10 67 745.27* 110.605.27* 1,234,975.04 interest paid to Anaconda uopper Mining Company on debentures and notes 596,875.00 Provision for Federal Income taxes - estimated 180,700.00 Provision far contingencies 696 632.65 596 875.00 30 000.00 207 642.94 301.611.87 395,912.44 --- . 777,575.00 924 517.94 395.912.44 Net Income (Loss*) $ 457,400.04 227 885.29* 94,300.61* Gross profit on operations of the various plai ts and departments of the company and income from sundry investments for the pest three years togsther vith the respective Investment therein at December ?1, 1944 see shovn in the following summary: Net Profit (Loss*) on Plant Operations Year 1942 Year 1947 Year 1944 Investment at December 31, 1944 Tooele plant 4 28,320.46 394,775.34* Copper Canyon lease Miami plant Lead refinery Zinc oxide 121.098.88" 133,925.85 36,773.18* 32,969.95 department White lead 150,804.77* 90,618.19* department 19, xrtJBr* 16,823.44* Raritan refinery 1,203,389.23 1,216,453.14 Raritan electro- sheet department 15,600.35* 34,409.58* Not allocated (da- tails page 41) 88.075.77* Grose profit on plant operations - as above $ 1,042,376.83 764,377.88 344, O8.98* 4,552,484.04 147, 72.64 36, 23.72 1.257.380.07 1,594,017.85 754,932.17 1, 90.97* 570,632.78 21, 01.99* 595,416.05 729,! 23.18 6,706,081.71 21>! 45.80* 287,775.99 11hi 54.70* - -34.5,931,01* 412, <17.10 15,972,783.64 , Details of the above figures for 1944 are abovz on the Balance Sheet and income Account by departments on pages 13 and 14 re spbetlvely. In/v* (loss*) fr<a sundry Investments Year 1942 Mountain City Copper Company, dividends v 219,440.10 National Tunnel and Mines Company, interest 20,633.21 talker Mining Company, interest 12,379.24 Other investments and advances not lose* (details page 40) 60.054.44* Income (loss*) from In vestments - per pace 3 v 192,596.21 Year 1943 -- Ye IT 1944 Investment at December 31, 1944 996,967.93 44,365.37 -- J, 751.09 2,729,366.32 200,142.21 112,110,60* 15 .356,36* 3,100.622.00 67,745.22* 1H ,605.27* 7,027,136.46 Dividends of *146,293.40, received during the 3 ear from Mountain City Copper Company were credited to investment in that compai y. Details of the above figures are shown on the qalanoe Sheet and Income Account by departments on pages 13 and 14 respectively. INTSSCNTS IN '."riOllY OWNED SUBSIDIARIES The net investment of International Smelting aifa Refining Company in its wholly owned subsidiaries amounted to 117,103,47 at I ioember 31, 1944. Net income of these companies for the year 1944 was 11,627.74 During 1944 International Building Association was liquidated with a loss if >84,562.06 which included interest of 13,309.51 accrued on advances by International Smelting and Refining Company. Details page 16. INVEST! UNTS PI OTHER COMPANIES Investments, including noneurrent advances, in lubsidiarles not wholly owned and in other companies amounted to 15,220,95 63 at December 31, 1944 compared with 15,407,125.36 at Deoenber 31, 1943, as shown by the following table: Subsidiaries not wholly owned: Mountain City Copper Company National Tunnel & Mines Company - see below `.valker Mining Company Other subsidiaries Decern er 31, i 43 * 1.143 261,33 2,797 394.69 200 000.00 769 558.78 December 31, 1944 996,987.93 200,142.21 797.553.01 Other oompanles: National Tunnel k Mines Company - see below Park Utah Consolidated Nines Company Prince Oonsolidated Mining Company Copper Canyon Mining Company 4.910 235.00 1.994.663,15 441 157.50 47 132.86 e iOO.OO 2.729,366.32 441,157.5C 47,132.85 8.600.00 As above 496 390.36 3.226.276.68 1 5,407 L25.36 5,220,959.83 By reason of the merger of National Tunnel & Min s Company with Utah V.etal and Tunnel Company, the stock interest of Anacoaia C>pper Mining Company end subsidiaries was less than 50jS at Deoamber 31, 1944. Market values of the above securities based on mirket quotations of securities which are quoted on various stock exchanges amo .nted to 14,412,319.70 SR000920 5 at December 31, 1944 compared vlth $3,601,294.3 at Dec imber 31, 1943 (details on pages 20 and 21). i The company's share of the combined net Incom of subsidiaries not wholly ovned amounted to $83,551.64 for the year 1944, ompared with a loss of $21?,431.80 for the year 1943. Dividends received rom Mountain City Copper Company amounting to $146,293.40 were credited ti investment In that company. There Is Included in the Income Accounts of th years 1943 and 1944 the following Income and expense relating to the above ; nvestments; Year 194; Year 1944 Interest on advances Dividends Less reserved for advances He* income from investments $ 48,239. <1 52,739.40 6,960.00 :________ 51,982.06* $ 48,239.5 L 6,737.34 STATEMENT OF FUNDS RECEIVED AND DISBURSED Funds vere made available to the company during the ye 1r as follows: Operating profit before deducting non-cash Items and Interest paid on debentures and notes payable to Anaconda Copper Mining Company (details below) ' $ 1,085, ?26.77 Decrease In inventories (details page 6) 1,370, 582.65 United States Treasury tax notes disposed of 230, >00.00 Decrease in accounts receivable (details page 6) 151. 150.00 Dividends received credited to investment in Mountain City Copper Company 146, 93.40 Cash received from dissolution of Interna tional Building Association 20, 04.14 Fixed assets disposed of 62.14 3.C25.319.10 Funds vere disbursed as follows: Decrease in indebtedness to Anaconda Sales Company Increase in deferred Items (details page 6) Interest paid on debentures and notes payable Fixed assets purchased (details page 7) Decrease in current liabilities other than indebtedness to Anaconda Sales Company 1,941, 436, 395, 245, IILl 93.58 86.19 12.44 05.43 22.66 3.131.12C.30 Resulting in a decrease In cash of $ 105,501.2: Operating profit before deducting non-cash items and interest paid on debentures I and notes payable to Anaconda Copper Mining Company Net loss* per income account - page 11 Add back charges to Income not requlrin Depreciation (details page 17) Glacier Peak option written off Advances to subsidiary companies written off (details page 6) Loss on dismantlement or sale of fixed assets (details page 39) Sundry Add back interest paid on debentures and notes payable to Anaconda Copper Mining Company As above 654,4 13.42 60,7 L0.95 51,9 12.06 15,4 .1.13 1.4 >7.38 784,0 4.94 ..?95sg 2.44 94,30' 1.179.?:- 1,085, " r idvaacea to subsidiary companies written off Comet Coalition Mines Company Yankee Consolidated Mining Company Mountain View Mining Company Total advances written off - per page 5 $ ^5,9^9.88 4,085.48 1,946,70 $ 51,982.06 Decrease in Inventories Metals and manufactured products - finished . Supplies (details p&gf 25} - in process Net decrease per page 5 $ 869,792.02 421,890.27 78.700.36 $ 1,370,382.65 Decrease in accounts receivable Current: Accounts .receivable - trade Accounts vith subsidiaries not vtaolly owned, principally Mountain City Copper Company Accounts with affiliates Decrease in current receivables Not current: Net increase in advances to subsidiaries not vholly owned; principally North Lily Mining Company $ Net increase in advances to sundry companies and individuals (details page 31): Advances made $ 338,005.76 Less payments received 315,441,19 $ 212,309.08 19.065.38 -____ 2x339-25 233,713.71 M18.50 Accounts written off or reserved for 22,562.57 891.84 g ,670.73 Decrease in advances to Tooele Valley Hallway Company Decrease In installment land sales contracts 17,809.85 2,215.67 10 ,789.23 24,025.52 Net increase in receivables - not current 81,763.71 Net decrease, per page 5 t 151,950.00 Increase in deferred items - net Mine development: <3ui.ld Adams lease operations Victoria lease operations Copper Canyon operations Olaeier Peak project operations Total increase (details page 22) Less decrease in other deferred items Net increase, per page 5 4 237,307.93 122,589.95 82,458.62 _____ JiLi? 442,714.12 6,227.93 ) 436,486.19 000/s l Expenditures for fixed aas'eta Mines end mining claims and lands t Guild Adams lease Salt Lake City office, principally development of Untie Dlatrlot Total (details page 15) Buildings and machinery (details page 16) Total expenditures, per page 5 7 * 96,616.56 72.764.23 169,580.89 76.024.54 t 245,405.43 DISTRIBUTION OF BALANCE SHEET AND INCOME ACCOUNT TO DEPJ RTMENTS The detail schedules vhlch support the Balance Sheet and Income Account by departments (pages 13 and 14 respectively) ai > presented in ten divisions, the Sight principal operating departments: a ninth division, 1. Tooele plant, 2. Copper Canyon lease, 2. Miami plant, 4. Lead refinery, 5. Zlno oxide department, 6. White lead department, 7* Raritan refinery, 8. Raritan eleotro-sheet de >.artaeot, together vith 9. Investments and advances vhlch Includes the nativities of the company other than .he principal smelting, refining and smnufacturing operations, and a tenth dlvls on. 10. Items sot allocated to di partments* In making this rearrangement, the accounts of ' be company as shown on its various ledgers have been redistributed and allocate: to the departments to vhloh they apply, exoept for a fev items for vhlch there La no exact basis for allocation and vhloh are shown separately in the last ditLsion mentioned above. Details of accounts vhloh appear in the ninth and tenth divisions are shovn on pages 40 and 41 respectively. Lend at Bast Chicago, and land, buildings and akohinery, and reserve for depredation at Perth Amboy have been allocated among the various depart* oents on a basis believed to be approximately correct. s c o p e or a u d it V# have made a general audit of the books and cords of Iat*n4tienal Editing and Refining Company and its subsidiary eorporat ons for the calendar year ended December 31, 1944. in connection vith our aud t ve examined or tested the accounting records of the company and its subs: diaries and other sup porting evidence and made a general revlev of the aoeount] Qg thods, including the sj*tom o{ check and control and of the operating and Income accounts for th* year, but ve did not make a detailed audit of t is transactions except in case of Miami plant, vhich Is not examined by the 'cmpany's ovn internal auditors. In the case of all other oompanlee and deper slants ve satisfied our. selves that International Smelting end Refining Compan; and all subsidiary companies vere included in the scope of the vork of th internal auditors of the company. Ve examined Into the sufficiency of the lnte nal audit and examined the reports of the Internal auditors* Investments, securities, cash, notes receive>le and payable, deben tures capital stock have been verified by inspect! m, certificate or correspondence and found in order. Accounts receivable, vhere these are of mate*ial amount, vere tested by selecting certain accounts for confirmation by dire :t cofuntcation vith the debtors or, vhere possible, by direct comparison >1th the books and records of the debtors. The company's internal auditors hav< also verified the accounts receivable of certain departments by dlreot doasunieetion vith the debtors and, vhile such confirmation by internal audiljters cannot be substituted for a similar procedure by the company's independent i udltors, it has been given full consideration in determining the nature am extent of our verifi- cation of accounts receivable. Trade and iastallsen accounts receivable - and advances to sundry mining companies vere examined in detail and those considered bad or doubtful have been written off or h^vve been provided for in reserve. Certificates of responsible officials have ieen received certifying to the correctness of quantities, descriptions and ov isrehlp of inventories and ve have made tests of the clerical accuracy of th> inventories. In accordance vith vhat is nov generally ag *eed to be accepted auditing procedure, our audit Included physical teoti cf inventories. In ventories at all plants are not tested nor is a ecmplste count made of inventories at any one plant. Inventories are not <11 tested at the close of the oalendar year and the physical tests are in n< vay intended ae a 1 substitute for th# taking of physical lavsntorles by company employees. The [ purpose is to establish the existence of a proper system for taking end \ recording physical Inventories and to satisfy ourselve that the systems are 0?eratlng effectively and as planned. In the course f this vork, a very substantial part {measured in money value) of the phys eal inventories is actually inspected by us. While this inspection is a t our primary evidence of the existence and value of the inventories vhlch ou t lie in the records of the company, it is of great value as a confirmation of the company's records and representations. Of stocks of metals end product) held for the company or Its subsidiaries by others or held by the company f< r the accounts of others a substantial part has been verified by direct eommunlcatlon. It la the general practice of the oompany'e internal auditors to oaks physical tests from time to time of inventories of supplies and, vhil these tests cannot take the place of similar tests by independent auditors , they are given full consideration in determining the nature and extent of the tests made by us. Fixed assets, including investments, are earrLed at cash cost or, in the case of properties acquired for securities of th - company, at the original par value of such securities. The values of ixed assets are shovn on this basis and do not indicate current values, vhich oould be established only by current appraisals. All other assets are oarr: ed at cash cost, We received during the year the usual courtes; from the officers and staff throughout the company. Respectfully submittei , Rev York, June 18, 1945 Certified Public iccountants r recopdlnS physical inventories and to satisfy ourselves tha1 the systems are operftting effectively and as planned. In the course of th s vork, a very 9 substantial part (measured In money value) of the physical nventcries is actually Inspected by us. While this Inspection is not ou: primary evidence of the existence and value of the inventories vhlch must 11 In the records of ths company, It Is of great value as a confirmation of t e company's records and represntationa. Of stocks of metals and products hel for the company or Its subsidiaries by others or held by the company for th accounts of others a substantial part has been verified by direct comunlcatlo i It is the general practice of the company's Internal auditors to make physical tests from time to time of inventories of supplies and, vhlle the i e teats cannot take the place of similar tests by independent auditors, th> y are given full consideration in determining the nature and extent of he tests made by us. Fixed assets. Including investments, are carried it cash cost or, In the case of properties acquired for securities of the oo spany, at the original par value of euch securities. The values of flxe1 assets are shovn on this basis and do not Indicate ourrent values, vhlch cotLd be established only by current appraisals. All other assets are oerrled it cash cost, We received during the year the usual courtesy fttom the officers and staff throughout the company. Respectfully submitted. jfee }A u* ).73 1.39 >.3 1.0* .a: >.3* 1.0< }.0( '.01 U2 < ountants . Rev York, June 18, 19*5 .T i.fi; 5! i.2: ..8: INTERNATIONAL atgr.^p^ gj DECEMBER [ t qi Page FIXED ASSETS: ASSETS 15 Mines and mining claims, water rights and lands fct* metal producing and manufacturing plants 16 Buildings and machinery at mines, reduction works refineries and manufacturing plants 17 Leas reserve for depreciation Patents Investments: 18 Securities of subsidiaries - wholly owned 2119 Other investments - not wholly owned Indebtedness of subsidiaries - not current: 20 Wholly owned Hot wholly owned Decent* $ 27,198,9*3.1 19,280.760.; FUNDS PROVIDED BY GOVERNMENT AGENCY - expended or o j hand DEFERRED CHAHOES: 22 Mine development 23 Prepaid expenses 24 Deferred expenses CORRECT AND OTHER ASSETS: Current assets: 13 Supplies on hand 13 Metals end manufactured products * in process 25 - finished Accounts and notes receivable-: 26 Trade, less reserve 27 Affiliates 26 Subsidiaries - not wholly owned - current United States Government securities 29 Cash Other assets: 30 Installment land sales and other accounts receivable, less reserve 31 Advances to sundry mining companies, including Advances on ores, less reserve Advances to Tooele Valley Railway Company 1,850,959*' 70,833.: 3.11Q.< 1,194,903.: 2,564,898.? 4,001,518.c 1,504,196.6 26,596.; 49,3U.5 250,000.C 628.049,' 8,288.( 182,197-1 ....97I,6I5,*: LIABILITIES 32 CAPITAL STOCK - issued and outstanding - 163,50 *1 ires of the par value of $75*00 each ADVANCES BY GOVERNMBf? AflEHCY 33 RESERVE POR WORKMEN'S CCMFEMSATIOn INSURANCE CURRENT LIABILITIES: 3* Accounts and wages payable 35 Accrued taxes 27 Indebtedness - to affiliates H - to subsidiaries * wholly earned 28 not wholly ovne< 36 DEBHTTURE3 ARD ROTES PAYABLE TO ANACONDA COPPER MlfUfO COMPANY 12 SURPLUS 1,277,113. 42,059. 2,589,406. 20*468. 47.063. ATIORAL 3K2LTIWQ AMD REFIFTBG COWPtw? COMPARATIVE RALAWfTB <gnffl>T DECEMBER 31. 19*5 AND 1944 Deceaber 31. 10*3 4 1,268,615.68 * 27,198,9*3.*3 1_9_, 280.760.go 7,918,183.23 1.00 1*2,000.00 2,625,163.58 *96,890.36 162,024.48 2.285.071.4s 14,797,9*9.75 300,000.00 1,830,959.71 70,833.39 --------- 3.119.96 1,904,913.06 Deeaaber 31, ^044 4 27,2*2,920.04 19.894.595.62 * 1,450,568.94 7,3*8,324.42 1.00 *1,000.00 1,699,483.86 3,226,276.68 295.199.20 14,060,874.19 2,212,962.88 56,951.83 4.606.14 2,274,520.85 )eepeaaa Qr * 181,973.26* * *3,976.61* . '13.835.42* 569,858.81 132,003.17* 13,881.56 _ 1,486.18* 1,000.00 925,679.72 2,729,386.32* 162,026.48 1.989.872.13 737,075-56 300,000.00 369,607.79* 1,194,903.38 2,564,898.98 4,001,518.04 1,504,196.83 26,596.3* *9,341.36 250,000.00 628.049.37 10,219,504.30 8,288.00 182,197.02 -------97.875.35 ___ gS8.360.37 * 27,510,727.48 1,116,203.02 2,143,008.71 3,108,310.60 1,3*6,952.60 24,257.09 30,275.98 ___ 522.2*8,17 21,502.97 8,291,256.17 31fl.443.20 $ 24,9*5,094.50 ^8,700.36 * >1,890.27 8)3,207.44 57,244.23 2,339.25 .9,065.38 2 iO,000.00 _1 >5.801.20 1,928,248.13 3,214.97* 4,677.80* 7.809.85 30,062.92* 4 2,565,632.98 4 12,262,500.00 300,000.00 58,5*4.09 * 1,277,113.77 *2,059.6* 2,589,*06.55 20,468.22 - 47.063.aa 3,976,112.00 10,500,000.00 --*l?,,57it?9 27,510,727.48 12,262,500.00 52,376.6* 4 1,260,014.3; * 2.53*.9< 610,738.91 23.896.52 1,8*,T95.76 10,509,000.00 ------237.422.10 $ 2*,9*5,09*.5 300,000.00 6,167.45 * *,59*.` 1, 97 5,667.* >,*26.2 * 1.363.( 2,083,316.24 , ilL.i*9g? 4 2,565,632.98 IHTERHATIORAL SHBLTIHQ AND REFIWINQ COMPAHY COMPARATIVE IHCOHE ACCOUHT YEARS HIDES DECEMBER 3 1 . 1903 AND JSR00092? co INTERNATIONAL SMELTING AND REFINING COM! Off STOPLT73 ACCOUNT YEAR ENDED DECEMBER 31. 19** 12 Balance December 31, 19*3 Overeccrual of Federal Income tax for the year 19*3 Investment In International Building Association written )ff Advances to International Building Association written off Net loss* of the year 19** " page 11 Per Balance Sheet, December 31, 19** " page 10 $ *13,571.39 30,000.00 1,000.00* 110,8*8.68* 9*,300.61* $ 237,*22.10 Investment in National Tunnel and Mines Company in this report, as In the report on Anaconda Copper Mining Company and eon afclldated subsidiaries, has been reduced from the amount shown on the books of 1sternatlonal Smelting and Refining Company by $136,307.60, the amount of the ( sflcit of Dtah-Delaware Mining Company on dissolution in 1937. ISR000930 BALANCE SHEET - 5BCPS2B 3] A3 SET3 FIXED ASSETS: Mines end mi>Hng oleine, water rights end lends Buildings and nachlnet-7 Reserve for depreciation* patents Investments: Securities of subsidiaries: Wholly owed Not wholly owned Other Investments Indebtedness of subsidiaries . not wholly owned - not current DEFERRED CHARGES: Mine development prepaid expenses Deferred expenses CURRENT ASSETS: Supplies on hand Metals and manufactured products: In process Finished Accounts and notes receivable: Trade, less reserve Affiliates Subsidiaries - not wholly owned - current Cash OTHER ASSETS: Installment, house and land sales and other accounts receivable Advances to sundry mining companies, including advances on ores, less reserve Advances to Tooele Valley Railway Company Total page 10 Eliminations* T' ; 1."50,588.9" 27,242,920.0" 19.89".595.62* 1.00 "1,000.00 1,699,"83.86 3,226,276.68 295.199.29 >6i 7.8T 6,iv9* 2,212,962.88 56,951.83 ",6o6.l" 22 4 1,116,203.02 2,143,008.71 3,108,310.60 1,346,952.60 24,257.09 30.2T5.9& 522.248.17 2.*93.35* 722.16* 395 1,335 90 a 19 198 21,502.97 216,874.82 fto.ofis.so 161, * 24,9*5,094.50 3,215.51* 4,916, LlABTr. TTTisn RESERVE for workmen's compensation insurance % CURRENT LIABILITIES: accounts and wages payable Accrued taxes indebtedness - to affiliates - to subsidiaries - wholly owned - not wholly owned 52,376.6* 1,260,014.35 2.534.90* 610,738.97 23,896.5? 680.81 2.493.35* 722.16* 1.94S.172.40 NET INTOTMSNT 2,999,922.10 -- 27, 311, 36". *.662, CAPITAL STOCK SURPLUS NOTES PAYABLE TO ANACONDA COPPER JOKING COMPANY As above $ 2,262,500.00 237."22.10 2."99/922.10 0,500,000.00 * 2,999/922.10 SHEET DECEMBER 31. 194* . ST PEPARTMSKT3 Petal 1b of ' otal Eliminations* Tooele Plant Copper Canyon lease 368.919.89 7,843,086.*2 6.494.343.11* 5 1 i 8,600.00 ) 1 1,146,219.50 5 22,914.21 5,247.66 4,597.62 595.589.74 1 1,335,807.54 3 943.918.54 D ? 2.493.35* 8 722.16* 7 90.359.61 4,507.86 19,358.42 198,814.51 67,108.43 13,336.70 1,214.99 Miami plant Lead reflrerv Zir c oxide dei artaent White lead Raritan reflneir 56,419.72 103,550.21 103,550.21* 130,665.27 1,171,386.25 845,532.40* 1.00 ?; ,073-16 63! .140.45 *9 ,578.80* 13,243.90 796,350.58 607,665.52* 409.751. 13,143,560. 8,239,264. 1,616.27 102,877.77 609.684.78 114,746.86* 987,859.63 15,076.61 2,330.20 6.32 106,395-46 137,011.50 220,184.76 13,529.28 10,159.11 6,741.68 31 004.16 4S 955.91 254 123.33 51 071.99 25 000.00 25,450.23 277,271.59 90,812.46 133-64 22,l80. 345,108. 14,548. 1,515,728. 88,53511,949. 11,65981,816. 21,502.97 161,828.91 44,850.53 10,195.38 3,215.51* 4.916.843-33 1,286,577.81 1,668,983.30 952.880.4j 576 790.20 595,596.88 7,405,576. 27,341.95 5 0* 7 2,493.35* 3 1 722.16* 3.215.51* 3U,634.63 23,464.48 1,037.42 680.81 564.359.29 *,552.484.04 20,616.32 7,859*26 722.16 _29.197.74 1,257,380.07 60,204.12 14,107.85 653.48 74,965.45 1,594,017.85 6,445.87 185,257-41 5.973-20 271.78 979.33 178.09 180.83 12.428. 663.540. .21,458. 2,066. 197.948.26 754,932.17 6 157.42 570,532.78 IBO.83 595,416.05 699.494. 6,706,081.7 0 Raritan electro-a&ec Investments and advances - details page HQ I tens not allocated to departments - details page 41 4,349.45 393,328.28 113,661.29* 445,166.30 152.516.96 **? jl. 004.16 25,450.23 277,271.59 90,812.46 133.64 22,180.33 345,108.?? 14,548.98 1,515.726.85 88.535.45 11,949.83 U, 659.72 81,816.60 41,000.00 1,699.^83.86 3.217.676.66 295.199.29 1,066,745.38 2,663.16 11,630.39 42,668.46 11,447.48 4,145.38 189,438.40 595,596.88 7,405,576.38 295,8*6.83 80.065.50 7,059,776.45 189,438.40 180.83 12,428.66 663.540.19 21,458.83 2,066.99 8,070.84 180.83 595,416.05 699.494.67 6,706,081.71 8.070.84 287,775.99 6,996.47 1,744.99 23,896.53 32,637.99 7,027,138.46 2,494.37 77,143.51* 609,024.56 521x215.42 345,937.02* CC|g ACCOOMT - YEAR BfDB) OB Total - Page 11 Inter- department elimination Tot ele nlant Miami riant. Tolls eopper tine lead silver gold miscellaneous metals zinc oxide vhlte lead electro-sheet copper residue, ores, etc. payment on production excess of quota $ 2,165,479.65 41,143.80 2,669,881.91 2,904,034.33 2,337,815.40 327,254.73 1,403,960.89 1,106,178.23 39,993.17 1,833,643.21 279.126.81 6.810.481.77 53,972.88* 647,516.63* 797.16* 225.48* 853.85* 1,' 44,223.99 2/ 93,851.59 79,724.31 < 38,975.92 49,242.74 33,861.63* 1,7 52,275.18 2.SOS.656.07* 2 79,126.81 33,202.72 583,508.02 215.591.06 135,466.61 2.673.618.4? Sales and tolls 21.918.99-3.00 3.230.885 .70* 0 2 30.623.26 5.607.984.11 Cost of sales Interdepartaaent 21,029,222.0ft 9, < T5,91ft.73 1,754,430.59 3.259,883.70* 7?1.250.23 1.708,108.88 21.029.222.04 3.239.883.70* 9 6 37.16ft.96 5.462.539.47 (Income or loss*) Provision for depreciation end loss (or gain#) on dis posal or dismantlement of fixed assets 689,771.86 66$^85ft.55_ 1)6,541.70* 145,444.64 2 14.572.00 Income or loss* from operations 215^)17.31_ I il.lift.69* 145.444.64 Other income: Dividends and Interest received - net Miscellaneous income 72,475.94 g,2l8.58 6,506.81 198.90 1.728.00 81.69ft.52 6j3P5.,7l 1,728.00 (Income or loss*) 301,611.83 3 4,208.98* 147,172.64 Interest on debentures and notes payable to Anaconda Copper Mining Company 395,912.44 1 1 Met income or loss* 9ft,300.61* 3' 4,208.98* 147,172.64 srcrun mtrafflffi 31. 1944 - BY d e pa r t me n t s IflSl 3.08 1.06 S.6l Details of tota1 Lead refinery Zinc oxide department Uhlte lead department 523,5*6.95 566,339.10 390,271.*8 13,698.84 95,116.68 1,40*,186.37 131,530.82 1,107,032.08 Raritan refinery 137,7*7.64 Raritan Investments Items not elec ro- and allocated she<t advances - department department page 40 page 41 3*2,529.86 873,101.39 278,809.15 39,99: .17 3.*2 437.047.30 4.11 1.930.953.67 1.630.833.87 0-52 1,768,224.14 1,598,753.54 8. Bo 91.512.87_______ 12.648.64 9.47 . 1.859.737.01 1,611.402.18 4.64 71,216.66 19,431.69 _5.449.269.*0 1.107.032.08 7.081.457.44 39.99' 17 457,507.70 6,027,213.62 58,88? 69 176,184.33 112,104.7' 634.867.99_________ 1.495.09________ _ 1.092.375.69 6.028.708.71^ 58,888 69 176.184.33 112-104.7' 14,656.39 1,052,748.73 18,895.52* 176,184.33* 112,104.7 *JL 34.992.94 36.225.72 -g.1,322.66,, 1.890.97* 36.358.38---- 329.957.30 21.7ftl.99f:. 722.791.43 2.650,28 21.545 80* 176.184.33* 112.104.7( 8.00 i9L .64 36,223.72 2.64 36,223.72 1,890.97* 21,701.99* .07 6.731.68 J ,731-75 .729,523.18 65,219.06 360.00 750.00 -6-5,515-06 750.00 21,5*5 80* 110,605.27* 111,354.70 395,912.44 1,890.97* 21,701.99* 7*9,5*3.18 21,5*5 30* 110,605.27* 507,267.14' MTNZS AND Ig-VTNG CIAIMB. BTER RIGHTS AJTO LA S Other chahges- Balanoe add - Balance December 31, see notss Deoember 31, 1943 Additions below 1944 Lands for metal producing plants: Tooele plant $ Miami plant Lead refinery Bari tan refinery 353,665.89 56,191.60 130,665.27 409.751.25 950.274.01 353,665.89 56,191,60 130,665.27 409,751,25 950.274.01 lands for manufacturing plants: Zinc oxide department White lead department Bari tan electro-sheet department 22,073.16 13,243.90 4.549.45 22,073,16 13,243.90 4.349.45 Other lands: Tooele Miami 39.666.51 2,654.63 226.12 2.882.75 7.00 6,342.3'(1) 7.00 6.342.3> 39.666.51 9,004.00 228.12 9.232.12 Water rights - Tooele 6.250.0 1(2) 6,250.00 Total lands and water rights 992.623.27 7.00 12.592.3 1.005.422.64 Mines and mining claims: Investments and advances Salt Lake City office Miami Guild-Adams lease 162,095.68 72,757.33 20,058.54 93,638.19 96.616.56 234,853.Cl 20,058.54 190,254.75 Total mines and mining claims 275,792.41 169,373.89 445.166.30 Per Balance Sheet page 10 9 1,268,615.68 169,380.89 12,592.3 1,450,588.94 NOTE 1 - Lands transferred and sold: lands in Tooels, Utah transferred to Internationa Smelting and Refining Company by Internatloxu Building Association 9 6,493.4*' Isas Mis of four lots in Salt lake City acquired f om Diamond Coal and Coke Company in 1943 (see p^ge 38) 151,1: As above 9 6,342,3* 2 - Water rights transferred to International Smelting qnd Refining Company by International Building Association: 122| shares Middle Canyon Irrigation Company stoe! Water rights 9 4.31C.X 1,940. BUI JI?CS AND MACRTNVPV Tooele plant Miami plant Lead refinery Zinc oxide department /Lite lead department Raritan refinery Raritan electro-aheet departsent Investments and advances - Guild-Adams lease Per Balance Sheet - page 10 B lance Deo mber 31, 1945 $ 7,< 55,569.02 3t; 03,550.21 V 53,825.51 i 28,529.17 \ 89,724.32 13,] iO,610.43 S >3,328.20 1 S3.806.49 Construction 17,949.93 17,560.74 9,611.28 6,626.26 3,656.63 20,619.66 3 87,1 >8,943.43 76,024.54 NOTE 1 - Hospital buildlag transferred to International So b ting and Refining Company NOTE 2 - Depreciation of automotive equipment written off. NOTE 3 - Equipment scrapped at Guild Adams lease cdaarged to development. ISR000937 BPIIDIICS AND MA.CTTTrrrPT u b lease Balance December 31, 1943 | 7,655,569.02 3,103,550.21 1,153,825.51 628,529.17 789,724.32 13,140,610.43 393,328.28 133,606.49 Construction 17,949.95 Deduct* sales and dismantlements - details Mae-.89 34,124.01* 17,560.74 9,611.28 6,626.26 3,656.63 20,619.68 148.00* Other 4haages 1 add or aeduct* 3^91.46^(1) 7p6.17*(2) 7pl.21*(3) $ 27,196,943.43 76,024.5* Balance Deoeaber 31. 1944 7,843,086.42 3,103,550.23 1,171,386.23 636,140.45 796,350.58 13,143,560.89 393,328.28 153,516.96 27,242,920.04 d to International Smelting and Refining Company by International Building Association, quipment written off. idaee lease charged, to development. RESERVE FOR : Tooele plant Uiami plant Lead refinery Zinc oxide department White lead department Raritan refinery Raritan electro-sheet department Per Balance Sheet - page IQ Balan ce December 31, 1943 $ 6,296,661.4: 3,103,550.2: 810,539.4* 469.160.1C 580.531.02 7,909,306.9$ 111.011.03 % 19,280,760.20 Details of depreciation on 1944 operations Depreclatlcx applicable to 1944 o Straight-line method Production Cost Tooele plant: Lead plant Sulphide concentrator Oxide concentrator t 617,706.09 Slag plant 512,846.78 . Automotive equip ment 2,681.07 Rate 5* 20*{2) 25^6 Onan titv 42,851,938 pounds 101,275.525 to Lead refinery Furniture and fixtures 19,066.17 556 to 20 i Zinc oxide department 638,140.45 3,3564j6{! ) White lead department: White lead production White lead retreated Raritan refinery Raritan electro-sheet department Per Income Account, year 1944 - page 11 36,955.008 to: 12,604,849 pounds 15.850 pounds 12,620,699 pounds 164,978.650 tOl 176,686 pounds NOTE 1 - Depreciation reserve on hospital building transferred to Int Building Association. 2 - Accrued on monthly balances. 3 - Rate based on remaining life expectancy. o0o: 73 FOR DEPRECIATION ance ber 31, 943 6,661.41 3,550.21 0,539.46 9,160.10 0,531.02 9,306.99 1.011.01 0,760.20 Depreciation on 1944 operations details below 214,874.28 * Other ad&ition to reserve see note below 957.26(1) Deductions* for sales an 1 dismantlemen ts - oae 39 18,149.84* 34,992.94 21,416.70' 27,134.50 329,957.30 2.650.28- 631,028.00 957.26 16,149.84* 1? Balance December 31. 1944 6,494,343.11 3,103,550.21 845,532.40 490,578.60 607,665.52 8,239,264.29 113,661,29 19,894,595.62 o 1944 operations - as above oduotion method tity Rate Amount Depre liation apiil .cable Depreciation to ini entory per Income Decern >er 31, Account 1 >43 - pa*e 11 8 pounds 5.525 tons _.1__3_1r? 22.500? * 56,136.04 22,787.00 30,885.30 104,395.67 14, .91.54 70,327.58 22,787.00 30,885.30 104,395.67 670.27 670.27 .008 tons 89.000? 32,889.96 2,102.98 214,874.28 34v992.94 14. 191.54 229,065.62 34,992.94 21,418.70 21,418.70 :9 pounds iO^ pounds 9 pounds .215? '8.650 tons $ 2.00 16 pounds 1.500? 27,134.50 529/957.30 2.650,28 $ 631,028.00 223.66 23 415.42 36,358.38 329,957.30 2.650.28 654,443.42 red to International awaiting and Refining Company by iiternational 1 16 INVESTMENT IN TOOL!? OWNED SUBSIDIARIES Net loss linoo me*] of the year 1944 - Shares Par value see Note 1 Itvestaent below New Jersey Storage and Warehouse Coapa ay Raritan Terminal and Transportation Company 10 $1,000.00 ) 1,000.00 ) 6,00 400 fro ,000.00 1,633,74* International Building Association (2) 10 1.000.00 1,627.74* __ - 64.562.08 Per Balance Sheet, December 31, 1944 page 10 341,000.00 $62,934.34 Less indebtedness to wholly owned subsidiaries: Nbw Jersey Storage and Warehouse Company Raritan Terninal and Transportation Company 694.93 23,201.60 Per Balance Sheet, December 31, 1944 page lo 23,696.53 Net investment 17,103.47 The above net investment at Deoember 31, 1944 is represented as follows: Assets: lands Railroad construction $ 20,065.35 Less reserve for depre ciation 20 ,065.35 7,691,34 Less liabilities: Taxes accrued Net assets 7,891.34 541.67 7,349.67 Difference, being accumulated operating deficits to December 31, 1944 $ 9,753.80 Net investment - December 31, 1943 Advances to International Building Association written off Assets of International Building Association transferred to International Smelting end Refining company Net increase in indebtedness to Raritan Terminal and Transportation Company and New Jersey Storage and Warehouse Company Investment in International Building Association written oft $163,556.26 $110,648.68 51,175.80 3,428.3: 1,000 ,0C 166,452.79 Net investment - December 31, 1944 - ss above $ 17,103.47 1COrt IN7ESTMENT IN SECURITIES PE SUBSIDIARIES NOT WHOLLY QV/NSD Sharea Par value Mountain City Copper Company 1,462,934 | 73,146.70 9 Walker Minins Company 682 042 862 042, 00 Other unoonsolldeted subsidiaries: Comet Coalition Mines Company 760 246 190 071. 50 Eureka Bullion Mining Company 756 000 37 600. 00 Mountain View Mining Company 728 420 72 ,842. 00 North Lily Mining Company 475 000 47 ,500. 00 Vlotor Consolidated Mining . Company 365 390 182 ,695. 00 Yankee Consolidated Mining Company 501 ,005 50 ,100, 50 Amount Equity in income or loss* Year 1844 996.987.93 t 88,216.96 -- 340 ,891. 71 187 ,923. 49 66 ,606'. 23 66 ,527. 78 18 ,306. 52 20 ,040. 20 583,08* 1,996.57* 46.54* 39.15* 702,495.93 | 85,551.64 Per Balance Sheet, December 31,1944 page 10 * 1,699,483.86 I QDn T INVESTMENT IN AND INDEBTEDNESS 0 ' SUBSIDIARIES NOT WHOLLY OWNED 20 Investment - Indebtedness not ourrant Mountain City Copper Company # YJalker Mining Compeny Comet Coalition Mines Company Eureka Bullion Mining Compeny Mountain View Mining Company North Lily Mining Company Victor Consolidated. Mining Company Yankee Consolidated Mining Company -996,987.93 340,891.71 187,923.49 68,806,23 66,527,78 18,306.52 ao.040.20 200,142.21 27,328.47 67,728.61 Per Balance aeet, December 31, 1944 - page 10 4 1,699,483.86 295,199.29 Total Market quotations December 31, 1944 9 6,987,93 4 2,925,868.00 240,142,21 44,102.10 0,891.71 144,446.74 5,251.96 107,730.00 (6,806.23 18,210.50 4,256.39 228,000.00 :8,306.52 9,134.75 J 0.040.20 11.272.61 1,91 4,683.15 4 3,488,764.70 Indebtedness not current December 31, 1943 National Tunnel 4, Mines Company Cl) | 2,018,008.57 Walker Mining Company 200,000.00 Comet Coalition Mines Compeny 39,745.40 Eureka Bullion Mining Company &i,7eo.&e Mountain View Mining Company 1,934.20 North Lily Mining Compeny Yankee Consolidated Mining Company 3,560.26 Sundry indireot subsidiaries 42.31 Per Balanoe Sheet - page 10 4 2,285,071.42 Dee saber 31, L944 20),142.21 t ',328.47 6 ',728.61 29 i,199.29 Decrease* or Inorease 2,018,008,57* 142.21 39,745.40* 5,547,79 1,934.20* 67,728.61 3,560.26* _________ 42,31* 1,989,672.13* NOTE 1. Not e subsidiary at December 31, 1944. ;R f)0 0 9 ^ 21 OTHER INVESTMENTS Par value of stook. Face value of note Shares Amount Market quotations Deoember 31. 1944 Copper Canyon Mining Company stock | 6,400.00 National Tunnel k Mines Company stock (1) (2) 326,200.00 National Tunnel k Mines Company note (3) 1,950,000.00 Perk Utah Consolidated Mines Company stook 69,800.00 Prince Consolidated Mining Company stook 80,000.00 64,000 $ 328,200 69,800 600,000 6,600.00 $ 23,680.00 779,386.32 615,375.00 ,950,000.00 -- 441,157.50 174,500.00 47,132.86 110,000.00 Per Balance Sheet Deoember 31, 1944 - page 10 $ ,226,276.66 9 923,555.00 NOTE 1 - Investment in the stook of National Tunnel k Min s Company in this roport as in the report on Anaoonda Copper Mining Com any and consolidated subsidiaries, has been reduced from the amount sh< w' n on the books of International Smelting and Refining Company by 136,307,60, the amount of the dafloit of Utah-Delaware Mining Company on dissolution in 1937. NOTE 2 - Transferred from "Investment in subsidiaries not wholly owned," upon ' merger of National Tunnel k Mines Company with Utah Metal and Tunnel Company. NOTE 3 - Transferred from "Indebtedness of subsidiaries n< t wholly owned" upon merger of National Tunnel k Mines Company with Utah Metal and Tunnel Company. MINE DEVELOPMENT 22 Balance December 31, 1943 Expenditures year 1944, less Klrte proceeds develc pment of ore vritten sales oflf Balance December 31, 1944 Copper Canyon lease details below $ 1,063,760.88 82,458.62 1,146,219,50 Gulld-Adams lease 582,456.72 237,307.93 819,764.65 Victoria lease 124,388.78 122,589.95 246,978.73 Glacier Peak project 60,353.33 357.62 60,7^.95 Per Balance Sheet - page 10 $ 1,830,959.71 442,714.12 60,7: 0.95 2,212,962.88 Details of Copper Canyon lease Original development expenditures: Mines, mining claims, etc. Buildings, machinery and equipment Mine development General expense Plant facilities Less - royalty received - miscellaneous Income received during development $ 2,3 7.13 '6.49 6,973.29 600,475.63 172,543.74 54,461.79 3.603.63 838,058.08 2.343.62 Total original development expenditures 835,714.46 Inventory of ore on hand at December 31, 1944 45,100.85 Operating loss (exoluslve of reimbursement of development expenditures, per contract - see note): Year 1942 158, sie .75 Year 1943 19. 2}3.66 Year 1944 87. 12 slS As above 265,404.19 1,146,219.50 NOTE - Reimbursement of original development expend!t:ures, per contract, at $1.25 per ton produced vould increase operating losses shown above. as follovs: Year 1942 Year 1943 Year 1944 90,844.90 tons 104,252.00 tons 80.117.49 tons $ 113,556.13 130,315.00 100.146.86 275,214.39 tons $ 344,017.99 PREPAID gZPZNSES --or 23 Prepaid insurance Prepaid taxes Sundry Per Balance Sheet - page 10 Deoeaber 31, 1943 $ 70,642,57 7,50 183,32 Deo< mber 31, i 944 55,476.25 1,475,58 Decrease Increase* 15,166.32 7,50 1,292,28* 70,633,39 36,>31.83 13,881,56 1SR000746 DEFERRED ETTEMSEg Tooele plant: December 31. 19^3 December 31. 1344 Slag hauling Sundry deferred expenses, principally employees' expense accounts Lead refinery: $ 3,053.97 I 4,597.82 15.99 3,119.96 4,597.82 Deferred expenses in connection with depredation in inventory Per Balance Sheet - page 10 $ 3,119.96 Q.32 I 4,606,14 HETAI3 AMOUNT Copper Zinc Lead Silver Gold Miscellaneous metals Manufactured products: Zinc oxide White lead Electro-sheet copper Prepaid billet cost Prepaid freight Less reserves for freight* refining* etc. Per Balance Sheet - page 10 Total December 31 193 Decrease Total or December 31* llcrease* 2*1 1,850,821.01 118.083.01 541,242.69 711.145.01 665,514.82 119.516.78 ,091.55 2l,168.05 1.3 ,708.27 3< ,769.72 12,140.69 85,868.46 ,542,929.46 89,914.96 409,534.42 674,375.29 653,374.13 36,648.32 38 2E 10 170.509.79 300,222.88 18,805.19 91,040.02 ,9.308.80 i 540.35 4f 862.40 < 974,80 533.39 246.32* 161,969.44 251,360.48 11,830.39 43,506.63 9.355.12 4,596,210.00 711,211.36 3,884,998.64 1,05 594.691.96 181 996.08 776.668.04 Hi $ 4,001,518.04 893 207.44 3,108,310.60 94; Decrease in depreciation in cluded in above Inven tories - details page 17 Per page 6 23 415.42 * 869 792.02 POUNDS Copper Zinc Lead CENTS PER POUND Copper Zinc Lead 20,059,219 1,503,200 11,249,-340 2,' 58,420 : 43,172 2,2 57,557 17,300,799 1,160,028 8,991,783 2, 8, 9.227 7.855 4.811 8.9I8 7.751 4.555 SILVER - total for all departments As above not covered by.af: idavlts covered by afflda its produced prior t GOLD - total for all departments - as above MftTATA aWD MAlftJPACTTTRlTD PRODOCTS - FTWTBHRn ? 31, Tooele plant ' Kim plant (credlt*\ Details of total at December . 10 A Lead refinery Zinc White oxide lead department department Raritan refinery 2 Raritan electro-3hee department 29.46 14.96 5*.*2 f5.29 74.13 *8.32 280,961.39 383,430.77 280,907.12 106,844.79 2,428.42 28,983.38 18,236.57 47,542.03 7,508.73 210,122.05 2,553.98 59.** 50.48 30.39 36.63 55.12 98.64 1,054,572.49 94,761.98 220,184.76 38.04 110,653.95 _2Q9*5P8.84 10.60 9*3.918.5* 114,7*6.86* 220,184.76 89,914.96 18,594.92 161,969.44 251,360.48 2,238.93 7,316.19 254,123.33 277,271.59 254,123.33 277,271.59 1,232,984.69 165,109.55 498,987.31 31,665.92 43,506.63 1,972,254.10 456.525.25 1,515,728.85 11,830.39 11,830.39 11,830.39 3,799 3,028 1,783 2,8*6,000 8,582,373 287,837 118,377 ,1 160,028 291.033 14,166,962 3.918 751 555 9.872 *.*68 10.070 6.3*3 7.751 6.389 8.703 iced prior to August- 15, 19*2 Otaacee 1,797,413.4*- --7Q*06o.92_ 1,867,*9*.36 Prloe 3*.75 i 71.0258 36.1112* 19*0*9.096 $ 3*.3536 Ameux ; u sb >ve i 62*,60 . .16 *9.77 M3 % 67*,37 5.29 |6,37M3 ACCCT NTS AND NOTES RSCZTVABT-g - For tolls and for metals a m mano* factored products: Total December 31, 1945 Total De< a mber 31, 1944 Copp Can? lea Inspiration Consolidated Copper Company $ 143,476.00 1 239,857.59 $ International Uinerals and Metals Company 37,950.01 Metals Reserve Company 223,290.76 kO,996.10 Miami Copper Company 628,197.90 5 '0,03a.73 Sundry customers 254.217.02 __ 4 .2.695.01 10.717.SO For premiums on production is ezoess of quota - Metals RaserTe Company Sundry debtors 1,292,131.69 1,2 13,587.43 10,717.80 181,763.81 9,552.42 36,901.12 12,65i 75.500.56 __ L 9.645.62 42,740.69 681 1,549,195.86 l,3l2,785.47 90,353.61 '13,331 less reserve for doubtful notes and aeoaunta 44.999.03 J 5.632.87 Per Balance Sheet - page 10 $1,504,196.83 $1,3' 6,952.60 $90,359.61 13,33< UTS AND NOTES BSCZI7ABLS - TRAPS. LSSS iTETKHTTB Total ember 31, 1944 Tooele slant Copper Canyon lease Details of total at December 31. 1944 Miami plant Lead Zinc oxide White 1 ad refinerv deDartment denartm nt Investments Raritan and refinery advances .99,857.59 $ 199,857.59 40,996.10 70,038,73 -12.695.01 10.717.80 23,587.43 10,717.80 565,394.13 214.207.90 979,459.62 40,996.10 4,644.60 81.165.61 106.55: 51.99 61,165.61 106,55: .71 45,692.69 49,552.42 36,901.12 12,651.30 .19.645.62 42.740.69 685.40 8.400.01 13.529.28 42.642.76 U.447.48 93,785.47 90,359.61 13,336.70 987,059.63 13,529.28 81,165.61 106,551 .71 88,535.45 11,447.48 45.852.87 30.093.62 '-6,952.60 $90,359.61 13,336.70 987,869.63 12,529.28 51,071*99 15.738 t25 90,812 >46 88,535.45 11,447.48 ACCOUNTS WTTH AFFILIATES - CORK NT 27 Deoember 31 Decmber 31, 1943 : 944 Acoounts receivable from: The American Br^sa Company Anaconda Copper Mining Company Anaconda Wire and Cable Company Chile Exploration Company Chile Steamship Company Incorporated Tooele Valley Railway Company $ 26, 566.47 29.87 86.29 111.37 1C 159.11 11 428 80 50.49 492.81 4 .507.86 26 682.63 26 .750.44 Net off accounts payable to: Anaconda Copper Mining Company Anaconda Wire and Cable Company Tooele Valley Railway Company 86.29 2 >239.01 254.34 -,, 86.29 2 493.35 Per Balance Sheet - page 10 $ 26 596.34 24 257.09 Beorease Increase* 111.37* 10 159.11* 15 137.67 20.62* 492.81* 4 421.57* 67.81* 2 239.01* 254.34* 86.29 2 407.06* 2 339.25 Acoounts payable to: The American Brass Company Anaconda Copper Mining Company Anaconda Sales Company (current account) Anaconda Wire and Cable Company Chile Steamship Company Incorporated Montana Hardware Company Tooele Valley Railway Company * 631.33 21 290,69 2 548 379.13 -- 159.57 2 798.00 16 234.12 , 2 239.01 606 785.55 254.34 _ 3 955.42 -- , 539,492,84 ei3 232.32 Net off accounts receivable as above 86,29 493.35 Per Balance Sheet page 10 $ 2,529,406,55 610 738,97 631.33 19 051.68 1,941 593.58 254.34* 159.57 1 155.42* 16 254.12 1,976,260,52 S.407.06* 1,978,667.58 ACCOUNTS WITH SUBSIDIARIES NOT WHOLLY OWNED - CURRENT 28 Accounts receivable from: Mountain City Copper Company Sundry indireot subsidiaries Net off accounts payable to: Mountain City Copper Company Sundrv indirect subsidiaries Per Balance Sheet - page 10 Deoreaae December 31. Dec amber 31, or 1943 .944 increase* % 50,048,83 49.24 50,098,07 30 975.64 22.50 50 998.14 19,073,19 26.74 19.099.93 714.40 42.31 756,71 $ 49,341.36 722.16 -- 722.16 30 275.98 7.76* 42.31 34.55 19,065.36 Accounts payable to; Mountain City Copper Company North Lily Mining Company Sundrv indirect subsidiaries $ 714,40 46,906.13 200,00 47,820.53 Net off accounts receivable - as above 756.71 Per Balance Sheet - page 10 * 47,063.82 722.16 -- 680.81 1 402,97 722.16 680.81 7.75* 46,906.13 480.81* 46,417.56 34.55 46,363.01 3SR000?53 T 29 CASH Cash in banks: Chase National Bank, New York Continental National Bank and Trust Company of Salt Lake City, Utah First National Bank of Salt Lake City, Tooele, Utah Walker Bank and Trust Company, Salt Lake City, Utah Nevada Bank of Commeroe - Battle Mountain Branch, Battle Mountain, Nevada Valley National Bank, Globe, Arizona First National Bank in Bast Chicago, Indiana First National Bank of Nevada - Yerington Branch, Yerington, Nevada Flrestona Park Trust and Savings Bank, Akron, Ohio First Bank and Trust Company, Perth Amboy, New Jersey Less outstanding drafts on New York offioe, deposited in banks Pett? oash Deoemb ir 31, December 31, 12i i IHl 268,0 8.52 214,2 3.24 49,9 7.96 -- ' 6 4.34 11,0: S.54 15,6 5,04 5,5< 0.00 5,Q< 0.00 78. a1 6.35 668,9< 2.01 41.92 2.99 627,0(9,08 H 0.35 192,916,65 123,479.82 90,909.33 60,597.30 725.91 18,042.10 15,662.90 4,064.44 65,000.00 76.044.10 629,462,13 106.468.54 520,993.59 1,254.50 Per Balance Sheet - page 10 $ 628,00.37 522,246.17 ISRO0OV54 1 INSTALMENT LAND SAILS AND OTHER ACCOUNTS RECEIVABLE IZSS RESERVE 30 Transferred Other from changes - Deduct Inter- net payments Balance national addition received Decaaber 31, Building see note 1 year December 31 1943 Association be lew) 1944 1944 Tooele: House sales contracts Installment land sale - Tom Buzziani's contract Cash in closed bank Tooele County State 3ank v -8,268.00 107.33 15,493,99 705.71(1; 2,631.47 13,568.23 353.26 7,934.74 107.33 8,395.33 15,493.99 705.71 3,092 .06 1,502.97 Less reserve for doubtful accounts 107.33 ber balance Sheet - page 10 v 8,288.00 15,493.99 705.71 107.33 - 2,984,73 21,502.97 NOTE [I) Details of other changes: Charges (debits): Taxes Interest Fire insurance Water, sewer and irrigation assesaoents $ 403.59 240.50 136.50 46.11 Deductions (credits): Discounts allowed in full payment of contracts Transferred to sundry debtors (page 26) 57.64 63.35 Net - as above 826.70 120.99 5 705.71 esdooousi S3 | sal hc0) in9-H SmOi 1f*. 9 n n * 2 S 39 i no 9-O4il O CD 4 S&HF* R* ; eeg* *fo *<0 80 2 VQ < efl3 t< ^ao b wooQ--am*Q. a* vi-rt| BeA O#v1J CD O ** OO cOgpoorot i ami oCD n eo r cj O 83 ocy ^9 Hc-. Oi CD * C) S <* eg o * 3a 9Oeg0 9 eg CD 9 *% O9 * CO V) <n ^eg CO 9 Mns^esj ' m ** 4S m i I o11tg15hsj M & .. IIJJ sls0^ clnn 3 oa *5 &a, !n* 4a9C3 0Ue 1u | *P | isunilnl 5-1 CBS * S 8 o 3a S a. 3 t. . aSb3. NOTE 1 - T ra n s fe rre d fro m o is s a lf lc a t io n "Good" t o "Good b u t a lo w ' oi~n.o o o cao- CAPITAL STOCK Issued end outstanding - per Balance Sheet page 10 (details below) 32 Sh ires Amount 16 5 ,500 % 12,262,500.00 Issued by International Snelting Company to Anaoonda Copper Par Date issued Mining Company for; -- value May 27, 1914 Properties of International Saeltiag and Refining Company $ 100.00 Nor. 30, 1915 Cash 100.00 Total stock issued by International Snelting Company 1A0.00 9! 000 $ 9,500,000.00 2! 000 2.500.000.00 12< ,000 # 12,000,000.00 Issued by International Snelting and Refining Company to Anaconda Copper Mining Comoanv for: Deo. 21, 1934 120,000 Shares of International Smelting Company stook Deo. 21, 1934 (Together witk $fl,000,000 principal amount 15-year 6% debentures) Properties of International Lead Refiniig Ccvpany and Raritan Copper Works Oot. 1, 1936 Properties of Anaoonda Lead Products Company Issued and outstanding - as above Unissued 75.00 75.00 75.00 75.00 75.00 120 000 | 9,000,000.00 30 000 2,250,000.00 13 500 1.012.500.00 163 >00 12,262,500.00 36 (00 2.737.500.00 200 , >00 $ 15,000,x:.oo ISR000957 33 RESERVE FOB WOPJaTM?JtS CQttPENBATIOK INSC LANCE Tooele plant Lead refinery Zinc oxide department White lead department Raritan refinery Per Balance Sheet page 10 Balance Additions Deoember 31, details 1943 below I 31,305.05 7,808.90 7,938,07 1,592.26 9,899.81 31,509,27 4,253.15 1,567.92 1,290,91 14,736,63 $ 58,544.09 53,407.88 De uotions - compensation pa d, medical am hospital Balance xpensea, December 31, etc. 1944 472.37 616.18 526.66 702.34 12,257.78 27,341.95 6,445.87 5,979.33 180.83 12,428.66 59 ,575.33 52,376.64 Details of additions year 1944 Tooele plant Lead refinery Zino oxide department White lead department Raritan refinery Total as above t 31,509.27 4,253.15 1,567.92 1,290.91 14,786.63 $ 53,407.68 Ch irged tost 22, >68.80 4, 53.15 1. <67.92 90.91 66.63 43,167.41 Pay roll deductions 9,440.47 9,440.47 1 ACCOUNTS AND WAGES PAYABLE 34 Ore purchases - Tooele plant Reserve for unearned tolls - Raritan refinery Wagea payable - details below Payroll deductions for employees' war bond purchases Employees' deposits - Tooele plant Reserve for repairs - Raritan electro sheet department - details below Sundry eooounts payable Par Balance Sheet - page 10 Details of Wages -payable Tooele plant Copper Canyon lease Miami plant Lead refinery Raritan refinery Investments and advanced As above December 31, 194 9 149,191*70 387,77^.62 105,344*27 25,351.75 12,91*.67 6,587.90 569,93a.86 9 1,277,113.77 December 31, 1944 142,578.31 506,625.34 110,682.86 30,125.99 7,104.43 8,070.64 454,626.58 1,260,014.35 9 22,113.91 6,70^.92 19,343.14 20,909.35 35,87*.76 99CL19 9 105,346k27 24,403.61 12,900.24 17,157.93 17,114.64 37,799.'58 1,506.86 110,682.86 Details of Reserve for repaira - Reriten electro-sheet department Balance Additions - Deductions - Balance December 31, oharged oper- expended for Deoembar 31, 1943 atlng expense. repairs 1944 Reserve for lead anode renewals Reserve for drum surface renewals 9 2,857.32 3,730.58 189.00 2,738.53 [7.24 1,397.33 2,999.08 5,071.76 As above 9 6,567.90 2,927.53 1,444.59 8,070.84 ISR0OO95? -NOTE (1 ) D e b it re p re s e n ts orerpaynent o f 1941 P ederal inoooe ta x . * *> IS >A| S OaJ 4g* es h O < e a <e 0 -P .a Q SU*4VHi gs H HiT n mS I* so l Sa3* * ss p p oc c 0 piKOZO S >-(9 S3 9 99 8 aa oo 8 s' s 88 8o 8 S3g as s a I s s - si si .a 1 3M s s. Is S3 S3 HCSdft2<Oo *5 i I- *1 i DIVIDEND AMD INTEREST RECEIYBD N5T 57 Interest reoeived - net; Year 1943 Year 1944 On advances: To wholly owned subsidiaries: International Building Association | 3,707.24 To subsidiaries not wholly owned: Comet Coalition Mines Company $ 2,155.62 { 2ureka Bullion Mining Company 1,365.65 Yankee Consolidated Mining Company 152.04 To other companies partly owned: National Tunnel k Mines Company 44,365.37 Prince Consolidated Mining Company 201.23 48.239.91 $ 3,309.51 2,418.67 1,372.35 197.29 48,751.09 -- 52.739.40 On other accounts: Tooele Valley Railway Company Snyder Mines, Inc. Miscellaneous - net 2,705,79 7,841.54 2.143.11 12.690.44 2,190.15 6,214.89 1.041.99 9.447.03 Dividends received: Park TJtah Consolidated Mines Company 64,637.59 65,495.94 6,980.00 Per Income Account - page 11 $ 64,637.59 $ 72,475.94 lgscamytons TNemnt 38 Tooele Blast: Profit os sale of land (details below) aw Miami Plant: Rents $ 1,692* Raritan Refinery: Reoord storage rents $ 1,350.00 Copper storage rents 2,723*93 Discount on prepayment oftaxes 3,715.04 Loading and unloading lighters - net 1,008SS Boring out American Brass Company copper moulds - net 270*89 9,068. Investments and advanoee: Outside property inooae, Tooele net ophlr Hill rents 412.00 10.00 I 398,90 1,728,00 $ 1,350.00 4,594.94 786.74 6,731.68 360.00 360.00 Per Inooae Aooount - page 11 Details of profit on BPla of land Pour lots in Clearaont Subdivision, Salt Lake City: Sales price Cost (see Note 1, page 15) Profit, as above 1SR000943 * r: -m r- 39 NET LOSS ON DISPOSAL OR QTSMANTTJMreiT 0? ; TXXD ASSETS Coat of buildings and machinery sold Accumulated or dismantled depredation - aag.e_.lft ^Paae 17 Deduot salvage leas dla- mantllng emenae Lose issisii Tooele plant I 34,124*01 18,149.84 467,00 15,507,17 Zinc Oxide department (Akron plant salvage} 96.04 96.04* Investments and advances: Guild-Adama lease 148,00 146.00 i 34,272,01 18,149.64 711.04 Ter Income Aocount, year 1944 - page 11 # 15,411.13 ISR00O944 D y^rrw u=ngT ITEMS Total pages 13 and 14 Wholly owned subsidiaries Mounts: a City Coppei Cancan" FIXED ASSETS: Nines end mining claims and lands 445,166.30 Buildings and machinery 153.516.96 Investments: Securities of subsidiaries: Wholly ovned 41,000.00 Rot wholly owned Other Investments 1*699,483.86 3,217,676.68 Indebtedness of subsidiaries not wholly ovned - not current 295,199-29 DEFERRED CHARGES: Nine development Prepaid expenses 1,066,743.33 2,663.16 41,000.00 996,967.9 . CURRENT ASSETS: Supplies on hand Accounts and notes receivable trade, less reserve Cash 42,668.46 11,447.48 4,145.38 OTHER ASSETS: Advances to Tooele Valley Railway Company 80,065.50 7.059.776.45 41.000.00 996.987.93 CORBET LIABILITIES: Accounts and wages payable Accrued taxes Indebtedness to subsidiaries wholly owned 6,996.47 1,744.9923,896.53 23,896.53 3fi.637.99 23.896.53 u v es t j o it * 7*0*7,138.46 17,103.47 996,987.93 Walker Mining Company Other subsidiary not wholly owned 702,495.93 200,142.21 95,057.08 200.142.21 797.553.01 200,142.21 797,553.01 3MB ACCOCTT ITEMS ,,oat of sales Loss from operations Other Income: Dividend and interest net Miscellaneous Income Ret loss (laoome*) * 176,184.33 tT6,l84.33 65,219.06 360.00 3,309.51 -65,579.06 4 110,605.27 3,309.51 . 3,309.51* 51.982.06 51.982.06 3,986.31 3.988.31 47,993.75 Dtuili of total m* liartes fbollf ied Rational Tunnel 4 Mines CenroanT Park-Utah Prince Consolidated Consolidated Victoria Mines Mining' lease CoBoaay Comsanv operations Guild-Adsni lease operation! Toeele Valley Railway Mines department, outside exploration, 190,254/?) 153,516.5 ) >95*93 )57.08 2,729,386.32 Ml,157.50 47,132.86 246,978.73 788.74 6,980.00 18,100.90 8.79 80.94 819,764.6 1,874.4 > 23,847.9 * 4,458.6 4,064.4 254,911.5! 719.64 >53*01. 2,729,386 02 448,137.50 47.132.86 265.958.10 UflT.T&.S1 80.065.50 80.065.50 :2S5:31.19 4,468.74 339*. 2,513.7: . 1,415.1 5.01 2,729,386.32 448,137.50 47,132.86 4,812.58 261,145.52 3.928.8? 1,193,852.9! ' 80,065.50 255,631.19 ,2.06 82.06- 88,31 8^31 93.75 46,751*09 6,980.00 46.751.09 48,751.09* 6.980.00 6,980.00* 124.202.27 124.202.27 2,190.15 360.00 2.190.15 360.00 2,190.15* 123,842.27 PETAII3 OF irais NOT ALLOCATED TO DgPAR'nqmTS 42 BALANCE SHEET TT7M3 Assets: Cash - Chase National Bank, New York $ 13,433,40 Liabilities: Accounts payable: Chadbourne, Wallaoe, Parke and 'Whiteside Sundry (debit*) Taxes acorued: Federal Inoooe tax (debit*) Federal oapltal stook tax New York state franchise tax Employer's portion of soolal security taxes on New York employees Indebtedness to affiliates: Anaoonda Copper Mining Company: Interest acorued, etc. Anaconda Sales Company: Current account Total liabilities * 3,500,001 5.331 79,977,27*1 Z,500,00 300.00 I 3,494.3? 77,143.51* 3,239.01 305.7SS.S6 309.024.53 535.575.42 Exoesa of liabilities over assets page 13 345,937.02 INCOME ACCOUNT IT3M3 Cost of sales: Administrative expenses, New York offioe Capital stock tax Employer's portion of soolal security taxes on New York employees Sundry taxes Other income: Interest received on United States Treasury tax notes (oredit*) Loss, per pages 3 and 14 Interest on debentures and notes payable to Anaconda Copper Mining Company Net loss--page 14 ; 106,991.-13 3,750.00 l,06i;57 - 302.00 112,104.70 750.00* 111,354.70 395.912.44 $ 507.2fl7.14 Paftfl ALPHABETICAL INDEC A 34 " Accounts and wages payable 26 Accounts receivable - trade, less reserve 30 - Installment) etc* 27 Aooounts wltn affiliates 28 Acoounts with subsidiaries not wholly owned 35 Accrued taxes 20 Advanoes to subsidiaries - not wholly owned 18 - wholly owned 31 Advances to sundry mining companies 27 Affiliates, aooounts with B 13 " Balance Sheet - by departments 16 - comparative 16 Buildings and machinery C 32 " Capital Stooh 29 Cash D 36 Debentures and notes payable to Anaconda Copper 24 Deferred expenses Company 17 Depreciation, provision for 17 Depreciation, reserve for 44 Details of - investments and advances 41 - items cot alioosted to departments 22 Development, mine 39 Disposal or dismantlement of fixed assets, net lias on 37 Dividend and interest reoeived 3 24 " 23 Sxpensos, deferred Expenses, prepaid F 3* 5-7 Fixed assets, net loss on disposal or diuantleoi nt of Funds received and disbursed G 3 - Gross profit os plant operations 4B 14 Income Account - by departments 11 - comparative 27 Indebtedness of affiliates 27 Indebtedness to affiliates 21 Indebtedness of subsidiaries not wholly owned - 4ot current le Indebtedness to subsidiaries - wholly owned 28 - not wholly owned 3 Installment land sales and other aooounts receivable 33 Insurance, reserve for workmen's oonpensation 37 Interest and dividend reoeived 25 Inventories, finished Investment In and Indebtedness of subsidiaries - sot wholly owned holly owned 19 Investment in securities of subsidiaries not wt >lly owned 46 Investments and advanoes, details of 21 Investments, other 41 Items not allocated to deportments, details af ISR0007A8 - 'V Pace 15 39 16 25 22 15 38 39 36 3,14 30 21 23 3 38 17 33 14 20 18 8 20 18 12 35 IS 2 33 Lands, mines and mining claims, water rights Loss or gain on disposal or dismantlement of Machinery, buildings and I/etals and manufactured products - finished Mine development Mines and mining claims,water rights and lan Iiscellaneous income Net loss on disposal or dismantlement of fixe Notes payable to Anaoonda Copper Mining Comp Operations by departments - comparative ''ther accounts receivable, installment land s 'ther investments Reserve for - depreciation - workman's compensation insurene Sales and eerninga, by departments Securities - of subsidiaries - not wholly own' - wholly owned Subsidiaries not wholly owned, aooounte with Subsidiaries, investment in end indebtedness o Subsidiaries, investment in - wholly owned Surplus account Water rights Working capital Workmen's compensation insurance, reserve for 43