Document VGE6zmxgEZJBeokexb3VxOgKo

Q ft* <3 o A* W iJ >* 03 z H t-J <j <3 P-. ''S O O I H-t cj H <1 jz: m *&&**'* N13830 0000-NLX-000018239 To the Stockholders of National Lead Company: The following is a Consolidated Balance Sheet of National Lead Company as of June 30, 1940 and a Statement of Consolidated Income and Surplus for the first six months of 1940. The consolidation includes only domestic subsidiaries in which National Lead Company owns all of the outstanding capital stock. Dividends received from domestic corporations not wholly owned, as well as interest on bonds and miscellaneous items not directly connected with current operations, are jprfod*** in the item of "Other Income." During the period dividends amounting to $192,518.10, were received from foreign However, in view of the European situation, instead of including this amount in "Other Income" as has been done heretofore, it was decided to set this amount aside and add it to our existing reserve for foreign investments. 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. __ ^ ._ . ,, H. T. Wa e s h o w , Vice President and Comptroller. ASSETS Current Assets: Cash ............................ ............................... ..................................... ...................................................... $ 9,857,651.82 U. S. Government Securities (Market Value $1,214,441.29)............ .......... . 14-69,928.90 Other Marketable Securities, Domestic (Market Value $ 720,362.50)........ $ 516,928.53 Other Marketable Securities; Foreign (Market Value $1,407,929.78)........ 1,403322.86 1,920,161.89 Accounts and Notes Receivable................................................................................ $10,843,940.40 Lfrgg Bad Debt Reserve..................................... ................................................. 819,640.49 9,^4^99.91 Notes Receivable from Employees................................................................................................. .. ?&??' *Inventories (at Normal Prices, Excess at Cost or Market)......................................................... 20,646,669.26 Total Current Assets..................................................................................................................................... $ 43,349,835.11 Investments and Advances: AfBKnffrfl Companies (at book value in no case exceeding cost) Domestic ........................ ................................................. ................................ $ 5,972,748.04 Foreign ....................................................................................................... 5,516,551.95 $11,4884199.99 National Lead Company Capital Stock (29,883 shares Preferred A; 25,815 shams Preferred B; 3,210 shares Common) [Market Value $8,437,620.00).......................... 6,950,229.77 Miscellaneous Investments (not listed on any exchange) Domestic ........ .......... ......................................................................... S 35oj288S3 Foreign ....................................................................................................... 77,840.00 486,128.88 Total Investments and Advances............................................................................................................. 18,874,658.09 Fixed Assets: Plant Properties and Equipment--Gross Property....................................................................... $78,274,941.23 Less: Depreciation and Depletion Reserve...................................................................................... 81,947,339.58 46,827,601.65 Patents and Licenses............................................................................................................................................................ Deferred Charges ...................................................................................................................................................... 729,807.61 491,70625 $109,773,608.61 t. Current Liabilities: LIABILITIES Accounts Payable, audited but not due....................................... Tax Reserve ..................................................................................... Dividend Payable August 1, 1940 on Class B Preferred Stock. Total Current Liabilities............................................ Reserves: Fire Insurance Reserve........................ Employers Liability Reserve.............. Pension Reserve.................................... Reserve for Contingencies.................. Foreign Exchange and Miscellaneous 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 .......................... $ 8,776,935.05 .......................... 2,296,782.81 .......................... 116,193.00 ...................................................... $ 6,189,910.86 .......................... .......................... .......................................... .......................... $ 4,797,284.02 426,664.80 , ,2,803,909.55 1 000 000.00 166,542.67 9,194,400.54 Authorized Issued $ 25,000,000.00 $24,367,600.00 25.000.000.00 10,827,700.00 50.000.000.00 30,983,100.00 $100,000,000.00 $65,678,400.00 .......................... 28,590,178.01 .......................... 120,719.20 94,389,297.21 $109,773,608.61 DETAILS OF PLANT INVESTMENT Gross Property............................................................................................................... Less Depreciation and Depletion Reserves................................................................ Net Property .......................................................................................... June 30,1940 Dec. 31,1939 $78,274,941.23 $77,867,229.55 31,947,339.58 31,313,825.75 $46,327,601.65 $46,553,403.80 Increase or Decrease $407,711.68 683,518.88 $825,802J5 The present normal stocks of the Company are as follows: Lead ............................................................................................... Tin ....................................................................................................................................... Antimony .............................................................................................................................. Stocks in excess of normals are valued at cost or market, whichever is lower. 49,687% short tonsvaluedat $0.03perpound 1,124% short tonsvalued at .21 per pound 269 short tons valued at .06 per pound Contingent Liabilities: Guarantee Norwegian Bank Loan--1,600,000 Kroner Guarantee Swedish Bank Loan-- 100,000 Kroner Guarantee French Bank Loan--1,600,000 Francs Guarantee Belgian Bank Loan--1,000,000 Francs Guarantee Holland Bank Loan-- 60,000 Guilders (Value of N. Kroner 4/10/40 22.71*)' (Value of S. Kroner 6/29/40 28.90*) (Value of F. Franc 6/16/40 2.18*) (Value of B. Franc 6/ 9/40 8.813*) (Value of Guilder 5/ 9/40 63.08*) 0000-NLI-000018240 CONSOLIDATED EARNINGS STATEMENT euueo .................................................................................................... ............................ Cost of Goods Sold, Taxes, Depredation and Other Expenses... Net Operating Profit;...................... ............ .............. Other Income .............. ........................................................ Total Net Income............................................................ Six Months Ended June 30th- 1940 1939 .................... $41,455,769.36 .......... . 88,498,544.04 $35,916,258.97 33,101,411.27 .................... $ 2,957,225.32 '$ 2,814,847.70 ................................................ 162,585.17 2034-09.20 ............. $ 3419,810.49 $ 3,017,956.90 Dividends on Preferred Stock Outstanding: Class A .................................................. .................. . Class B .............................................................................. Amount Earned on Common Stock............ .......................... . $748375.50 232,886.00 980,661.50 .................... $ 2,139,148.99 $748,275.50 232,386.00 980,661.50 $ 2,087,295.40 Amount Earned per share of Common Stock Outstanding ......................... $.691 $.658 ANALYSIS OF CONSOLIDATED SURPLUS Earned Surplus--At beginning of year. Add: Net Income for Srx Months.......... Deduct: Dividends Paid During Period- Preferred Stock Outstanding: Class A .............................................. Class B .............................................. Common Stock Outstanding................ Total Dividends Paid........ Earned Surplus--June 30th.................... Capital Surplus--June 30th.................... Total Surplus--June 30th. 1940 $27,224,804.02 3,119310.49 $30,344,614.51 $748376.50 232,386.00 $ 980,661.50 .................. 773,775.00 .................. $ 1,754,436.50 .................... $28,590,178.01 ...................... 120,719.20 .................... $28,710,897.21 1939 $26,113,839.82 3,017,956.90 $29,131,796.72 $748375.50 232,386.00 $ 980,661.50 773,775.00 $ 1,754,436.50 $27,377,36032 120,719.20 $27,498,079.42 I aSSwsE mseaaa 0000-NLI-000018241