Document Ra15X4KpdBOOjk1x3ZOayzYvz

] 4 *s 1 3 l i 0000-NLI-000018210 NATIONAL LEAD COMPANY 15 EXCHANGE PLACE, JERSEY CITY, N. J. Report to be Presented to the Stockholders at their Forty-seventh Annual Meeting, April 20, 1939, for the Fiscal Year Ended December 31, 1938 To the Stockholders of National Lead Company: The following is a Consolidated Balance Sheet and Earnings Statement of National Lead Company and all of its domestic subsidiary companies in which it owns all of the capital stock, for the twelve months ended December 31, 1938. The dividends received from foreign corporations owned in part or in whole, domestic corporations not wholly owned, interest on bonds and miscellaneous items not directly connected with current operations, are included in the item "Other Income". Dividends on National Lead Company Preferred and Common Stocks owned by the Company itself are not included in this statement, either as disbursements or as income. Current Assets: ASSETS Cash ................................................................................................................................... U. S. Government Securities (Market Value $1,243,241.74)........... Other Marketable Securities, Domestic (Market Value $ 952,732.50).......... Other Marketable Securities, Foreign (Market Value $1,879,820.69)........... Accounts and Notes Receivable................................................................................... Less Bad Debt Reserve.............................................................................................. Notes Receivable from employees............................................................................... `Inventories (at Normal Prices, Excess at cost or market)............................... Total Current Assets................................................................................. Investments: Securities of Affiliated Companies (at book value in no case exceeding cost): Domestic ....................................................................................................................... Foreign ......................................................................................................................... National Lead Company Capital Stock (29,883 shares Preferred A; 25,815 shares Preferred B; 3,210 shares Common). (Market Value $8,663,431.50) Miscellaneous Investments (not listed on any exchange): Domestic ...................................................................................................................... Foreign ........................................................................................................................ Total Investments ..................................................................................... Fixed Assets: Plant Properties and Equipment--Gross Property................................................ Less: Depreciation and Depletion Reserve............................................................ Deferred Charges .............................................................................................................. ....................... $ 5,636,787.62 ..................................................... 1,170,446.19 $ 608,012.68 1,536,353.08 2,144,365.76 $7,215,114.87 737,830,20 6,477,284.67 ..................................................... 184,052.58 ..................................................... 20,421,395.01 $36,034,331.83 $5,524,719.42 8,667,239.42 $14,191,958.84 ....................... 6,950,229.77 $ 362,265.33 127,713.55 489,978.88 21,632,167.49 $76,677,585.59 29,818,432.89 46,859,152.70 326,247.66 $104,851,899.68 LIABILITIES ' Current Liabilities: Accounts Payable, audited but not due................................................................... T&x Reserve .................................................. Dividend Payable February 1, 1939 on Class B Preferred Stock..................... Total Current Liabilities....................................................................... Reserves: Fire Insurance Reserve.............................................................................................. Employers Liability Reserve...................................................................................... Pension Reserve ........................................................................................................... Foreign Exchange and Miscellaneous..................................................................... $2,629,502.45 2,135,534.60 116,193.00 ....................... $4,881,230.05 $4,797,284.02 426,664.30 2,667,219.62 166,542.67 8,057,710.61 Capital Stock and Surplus: Capital Stock: Preferred Class A--Par Value $100 Preferred Class B--Par Value $100 Common--Par Value $10................... Earned Surplus .................................................. Capital Surplus .................................................. Total Capital Stock and Surplus Authorized Issued $ 25,000,000.00 $24,367,600.00 25.000.000.00 10,327,700.00 50.000.000.00 30,983,100.00 $100,000,000.00 $65,678,400.00 ........................... $26,113,839.82 ........................... 120,719.20 91,912,959.02 $104,851,899.68 DETAILS OF PLANT INVESTMENT Gross Property ............................................ Less Depreciation and Depletion Reserve Dec. 31,1938 Dec. 31,1937 $76,677,585.59 $74,063,169.69 29,818,432.89 28,212,242.60 $46,859,152.70 $45,850,927.09 Increase $2,614,415.90 1,606,190.29 $1,008,225.61 * The present Normal Stocks of the Company are as follows; Lead ............................................................................................................ 49,687^4 short tons Tin ...................................................................................................................................................... 1,12454 abort tons Antimony .......................... *...................................................................................................... * 269 short tons Stocks in excess of these normals are valued at cost or market whichever is lower. valuedat $0.03 per pound valuedat .21 per pound valuedat .06 per pound QOOO-NLI-OOOO1 8212 CONSOLIDATED EARNINGS STATEMENT Sales ............................................................................................ Cost of Goods Sold..................................................................... 1938 $65,229,969.84 49,207,295.63 Gross Profit on Sales........................................................... Other Income ........................................................................... $16,022,674.21 1,077,962.50 Total Gross Income.......................................... Administrative, Selling and Other Expenses................... Depreciation and Depletion.................................................... Taxes ........................................................................................ $17,100,636.71 $ 9,174,277.15 1,719,558.83 1,923,660.37 Total Net Income............................................ Dividends on Preferred Stock: Outstanding-- $ 4,283,140.36 Class A.................................................................................. ............. $1,496,551.00 Class B................................................................................. 1,961,323.00 Amount Earned on Common Stock...................................... $ 2,321,817.36 Amount Earned Per Share of Common Stock Outstanding................................... $.750 1937 $91,947,302.89 75,968,165.83 $15,979,137.06 2,240,127.43 $18,219,264.49 $ 9,497,639.12 1,682,818.56 2,151,855.38 $ 4,886,951.43 $1,496,551.00 464,772.00 1,961,323.00 $ 2,925,628.43 $.945 ANALYSIS OF CONSOLIDATED SURPLUS Earned Surplus--at beginning of year........................................................................... Add: Net Income Twelve Months................................................................................... ** Surplus Adjustment ...................................................................................................... 1938 $25,220,172.46 4,283,140.36 119,400.00 $29,622,712.82 Deduct: Dividends Paid During Year-- Preferred Stock Outstanding-- Class A................................................................................................ Class B................................................................................................ $1,496,551.00 464,772.00 1,961,323.00 Common Stock Outstanding......................................................................................... 1,547,550,00 Total Dividends Paid................................................................................. $ 3,508,873.00 Earned Surplus--End of Year......................................................................................... $26,113,839.82 Capital Surplus--End of Year......................................................................................... 120,719.20 Total Surplus ............................................................................................. $26,234,559.02 1937 $23,842,094.03 4,886,951.43 .......................... $28,729,045.46 $1,496,551.00 464,772.00 1,961,323.00 1,547,550.00 $ 3,508,873.00 $25,220,172.46 120,719.20 $25,340,891.66 * Includes provision for t&x on undistributed profits. * On December 23rd, 1937, Patino Mines & Enterprises, Cons., Inc., paid & dividend of $2.00 per share on its common stock, of which $238,800.00 was received by National Lead Company. We were advised by Patino Mines & Enterprises. Cons., Inc., that one-half of this dividend, equivalent to $119,400.00 wag to be considered as a return of capital--the other half as income for the year. It was treated this way on the books of National Lead Company. In 1938 the Company was advised by Patino Mines ft Enterprises, Cons.. Inc., that the total dividend should be included as income. Since this is 1937 income, the adjustment is made directly to Surplus. * N a t io n a l L eiad Co m p a n y P ao CD 23 *c3 c l 3T "0 in m g zM m< 5* sr o * 53 o a X3 o *3 o S2 mz 3| >^ ?o i3sz 53 S- - rt- 2 -3 ** 3 p w o gO m 3a* >3 CD 23 5533- 3-- Om z- (B o 5 o z s ~.c 330 CD OQ P CD 53 S JL S3. 5 ^ *> w tfl 35 o 4 a g*S"3 ?c!r 53 n}, CL o 2 O c* CO 00 2. 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