Document dY7nwN0jzDVYvwdBg4qde2xK0

Saint Joseph Lead Company Annual Report --1928 America's Corporate Foundation; 1928; ProQuest Historical Annual Reports pg. OJ 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. 1926 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. BOARD OF TRUSTEES Da xi ix K. Catux, St L,ouis, Missouri Charles M. Chapin, New York Hhndox Chubb, of Chubb & Son, New York. Irwin H. Cornell, Vice-President. Clinton H. Crank, President. Firmin V. Desloge, Vice-President of Desloge Consolidated Lead Company, St-Louis, Missouri. Andrew Fletcher, New York. James H. Grover, Vice-President of St. Louis Union Trust Company, St. Louis, Missouri. Fred W. Shirley, Vice-President of Bankers Trust Company, New York. Hon. E. C. Smith, St. Albans, Vermont. M. F. Watts, of Watts & Gentry, St. Louis, Missouri. 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, 1928 In the year 1928 cash dividends to the amount of $5,851,335.00 have been paid to stockholders, and to minority stockholders in subsidiary companies, $76,253.00. The earnings for the year, after deducting all charges for depreciation, depletion and reserve for Federal Taxes, resulting from the operation for the fiscal year were $4,490,973.42. Your mines and mills in St. Francois County, Missouri, produced 4,382,183 tons of ore, 202,801 tons of lead concentrates and 6,584 tons of zinc concentrates. The lead content of the lead concentrates produced was 147,591 tons. There was produced by Kansas Explorations, Inc., a subsidiary of this com pany, from its properties in the Tri-State District in Southwest Missouri, Kansas and Oklahoma, 422,210 tons of ore, 947 tons of lead concentrates and 17,119 tons of zinc concentrates. Your Edwards Mine produced 22,054 tons of zinc concentrates. The smelter production available for sale from the company's own ores was 137,152 tons. The sales of pig lead for the year, including lead purchased from the Bunker Hill & Sullivan Mining & Concentrating Company, amounted to 187,022 tons. .. Federal Income Taxes amounting to $810,837.77 were paid in 1928, of which $215,068.39 applies on years prior to 1927. The final payments on account of back taxes for the years 1917, 1918, 1919, and 1920, have not yet been made, but it is hoped that these back taxes will be assessed and paid during 1929. 3 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Your mine at Hughesville, Montana, referred to in my last report, was equipped with a mill and started operations in November, concentrates being shipped--the lead to East Helena, and the zinc to Great Falls. It should produce about 9,000 tons of lead concentrates and about 6,000 tons of zinc concentrates annually. The Mine La Motte property in Madison County, Missouri, was acquired jointly by the National Lead Company and the St. Joseph Lead Company, and a new company called Mine La Motte Corporation was formed to operate the property. A mill has just been completed and concentrates will be shipped--half to the National Lead Company at Collinsville, and half to the St. Joseph Lead Company smelter at Herculaneum. The probable production from this property should be about 20,000 tons of lead concentrates annually. Your Exploration Department was singularly successful the past year in finding promising ore-bodies which should develop into mines. Negotiations for the sale to the Missouri Pacific Railway of the Mississippi River & Bonne Terre Railway owned by your company, and of the Missouri- Illinois Railroad Company owned by your company and by three other interests, were completed in the latter part of the year. This sale if approved of by the Interstate Commerce Commission will relieve your company of its railroad business. It would be accompanied by the sale to the Union Electric Light & Power Com pany of your company's power plant in St. Francois County and would provide for your company buying its power from the Union Electric Light & Power Company. These transactions, if completed, will not increase your company's income, but will transfer fixed assets into cash, which should be available for investment in other mining properties. The average price received for the company's product at East St. Louis for the year 1928 was 6.133 cents per pound of lead, as compared with 6.548 cents per pound for the year 1927. CLINTON H. CRANE, President. 4 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. BALANCE SHEETS s Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. I ST. JOSEPH' AND SUBSIDIARY C 0$ CONSOLIDATED BALANCE S ASSETS Capital Assets: Ore reserves and mincial rights, including appreciation arising from revaluation........................................................ $33,525,610.34 Less--Reserve for depletion................................................... 23,327,099.35 $10,198,510.99 Buildings, plant and equipment....................................................... $17,692,828.10 Less--Reserve for depreciation.......................... .................. 5,892,891.55 11,799,936.55 Railroad property and equipment................................................. $ 3,743,905.38 Less--Reserve for depreciation............................................. 726,291.32 3,017,614.06 Exploration expenditures on properties held under option,. 299,991.94 Investments ; Investment in and advances to Mine La Motte Corporation (50% owned)............................................................................. $ Sundry securities and loans............................................................. $25,316,053.54 972,791.61 709,958.78 1,682,750.39 CURRENT AND WORKING ASSETS : Inventories at cost: Lead and zinc............................................... .............. ................ $ 1,363,989.23 Materials and supplies............................................................... 2,111,630.27 Accounts receivable............. .............................................................. Marketable securities and call loans............................................. $ 3,475,619.50 1,758,731.61 8,043,374.51 Cash in banks and on hand............................................................. 2,586,393.81 15,864,119.43 0' Deferred Charges: Prepaid insurance, taxes, etc. 252,47422 $43,115,397.58 ! We have examined the books and accounts of the St Joseph Lead Company and its subsidiary companies for the year ending December 31, 1028, and we certify that the above balance sheet and relative surplus account have been correctly prepared therefrom and, in our opinion, fairly set forth the financial position of the company and the result of operations for the year. 56 Pine Street, New York. March G, 1020. Price, Watemiouse & Co. 6 4* 'I j I Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. t LEAD COMPANY . COMPANIES SHfc^r, DECEMBER 31, 1928 LIABILITIES Capital Stock: Authorized--2,000,000 shares of $10 each $20,000,000.00 Issued --1,996,784 shares.............................................................. $19,967,840.00 + Less--In treasury--#,332 shares............................................ 463,320.00 $19,504,520.00 Scrip outstanding 568.50 $19,505,088.50 Minority Inti-rest in Subsidiary Companies : Capital stock, and proportion of surplus applicable thereto Purchase Money Obligations, payable in annual amounts to September 30, 1930............................................................................. .. 228,964.25 368,750.00 Current Liabilities : Accounts payable......................................... Wages accrued..................... ........................ Provision for 192S Federal Income tax $ 1,500,570.61 108,611.69 596,967.63 $ 2,206,149.93 Dividends declared, payable quarterly in 1929........................... 5,851.336.00 8,057,505.93 Reserve for Contingencies, Etc. (Including Federal taxes of prior years).................................. 1,461,502.59 Surplus, per statement attached.......................................................... 13,493,586.31 $43,115,397.5S 7 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY AND SUBSIDIARY COMPANIES SURPLUS ACCOUNT. DECEMBER 31,1928 Surplus at December 31, 1927, including surplus arising from revaluation of ore reserves and mineral rights.................................................................... $14,853,989.89 Profit from operations for the year ending December 31, 1928, after writing off development and exploration expenses on properties abandoned, but before providing for depreciation, depletion and Federal income tax.... $ 7,064,526.33 Add--Interest, dividends and miscellaneous income___ 750,512.65 $ 7,815,038.98 Deduct--Provision for: Depreciation.............. ....................... $ 1,050,348,88 Depletion .............................. 1,775,803.27 Federal income tax................. 455,623.88 3,281,776.03 $ 4,533,262.95 Deduct--Proportion of profit applicable to minority interests.............................. ........... ......... ............... 42,289.53 4,490,973.42 Deduct--Dividends declared, payable quarterly during 1929 ............................................................. ............... $19,344,963,31 5,851,377.00 Surplus at December 31, 1928.................................... $13,493,586.31 Note.--The above surplus comprises: Surplus as shown by balance sheet of parent company at December 31, 1928 .............................................................................................. Accumulated surplus of subsidiary companies, including that arising from revaluation of ore reserves and mineral rights, In excess of surplus reflected on bocks of parent company...................... $12,997,192.09 490,393.62 $13,493,586.31 8 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY (PARENT COMPANY) INVESTMENTS IN SUBSIDIARY COMPANIES DECEMBER 31,1928 The Doe Run Lead Company........................... Kansas Explorations, Inc.................................... Bonne Terre Farming and Cattle Company___ Mississippi River and Bonne Terre Railway... No. of shares outstanding Par value per share Percentage of outstanding shares owned 6,574'ho No par 9643% 8,000 $100.00 100.00% 50,000 1000 99.91% 30,000 100.00 99.97% ST. JOSEPH LEAD COMPANY AND SUBSIDIARY COMPANIES STATEMENT OF ESTIMATED AND ACTUAL NET INCOME FOR THE YEAR ENDING DECEMBER 31,1928 Net income, before providing for depreciation, depletion and Estimated Actual Federal income tax............................................... ................. $7,900,000 00 $7,772,749.45 Deduct--Provision for: Depreciation .................................... ................................. Depletion ........................................................... ............... Federal income tax........................................................... $1,050,000.00 1,890.000 00 460,000.00 $1,050,348 88 1,775,803 27 455,623 88 $3,400,00000 $3,281,776.03 Net income for the year ending December 31, 1928... . $4,500,000 00 $4,490,973.42 9 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH I (PAREN1 ton BALANCE ASSETS Capital Assets: Ore reserves and mineral rights..................................................... $19,739,584.17 Loss--Reserve for depletion..................................................... 13,237,651.20 $ 6,501,932.97 m Buildings, plant and equipment....................................................... $13,092,675.38 Less--Reserve for depreciation.............................................. 4,081,276.32 9,011,399,06 Exploration expenditures on pi operties held under option 299,991.94 Investments in and Advances to Subsidiary Companies: Investments ............................................................................ Advances ............................................................................. $15,813,323.97 $ 8,210,957.57 2,589,384.31 10,800,341.88 Other Investments : Investment m and advances to Mine La Motte Corpora tion (50% owned)........................................................................ $ Sundry securities and loans.............................................................. 972,791.61 499,110.42 1,471,902,03 Current and Working Assets : Inventories at cost: Lead and zinc.,............................................................................ $ 1,011,333.84 Materials and supplies.................................................................. 1,813,764.46 Accounts receivable............................. Marketable securities and call loans................... Cash in banks and on hand.......................................................... $ 2,825,098.30 1,660,870,08 6,542,246.61 2,191,737.43 13,219,952.42 Deferred Charges : Prepaid insurance, taxes, etc.......... ........ .............. ................ ............ 156,350.00 $41,461,870.30 We have examined the books and accounts of the St. Joseph Lead Company for the year ending December 31, 192S, and we certify that the above balance sheet and relative surplus account have been correctly prepared therefrom and. in our opinion, fairly set forth the financial position of the company anti the result of operations for the year. 56 Pme Street, New York. March 6, 1920. Price, Waterhouse & Co. 10 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. EAD COMPANY COMPANY) BER 31, 1928 Capital Stock : LIABILITIES Authorized--2,000,000 shares of $10 each $20,000,000.00 Issued-- 1,996,784 shares .................................................... .. - $19,967,840.00 Less--In treasury--46,332 shares............................................. 463,320.00 Scrip outstanding $19,504,520.00 568.50 $19,505,088.50 Purchase Money Obligations, payable in annual amounts to September 30, 1930....................................................................... 368,750.00 Due to Subsidiary Companies............................................................. .... 30,144.03 Current Liabilities : Accounts payable..................... ............................................................... $ 1,363,537.66 Wages accrued............. .................. ........................................................ 68,253.85 Provision for 1928 Federal income lax......................................... 304,120.95 ' ; -------------- --- $ 1,735,912.46 Dividends declared, payable quarterly in 1929........................... 5.S51,356.00 7,587,268.46 Reserve for Contingencies, Etc. (Including Federal taxes of prior years)............... .................... Surplus, per statement attached................... .......................................... 973,426.62 12,997,192 69 $41,461,870.30 i !1 i Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY (PARENT COMPANY) SURPLUS ACCOUNT, DECEMBER 31, 1928 Surplus at December 31, 1927.............................................................................................. $13,080,430.14 Profit from operations for the year ending December 31, 1928 after writing off exploration expenses on proper ties abandoned, but before providing for depreciation, depletion and Federal income tax........................................... $ 4,611,181.77 Add--Interest, dividends and miscellaneous income, including dividends received from subsidiary com panies ............. ................................................. .. 3,036,294.88 $ 7,647,476.65 Deduct--Provision for: Depreciation ......................................... .. Depletion .................................................... Federal income tax.................................. $ 745,988.95 971,30045 162,047.70 1,879,337.10 5,768,139.55 Deduct--Dividends declared, payable quarterly during 1929 ............................................................................ ................ $18,848,569.69 5,851,377.00 Surplus at December 31, 1928........................................... $12,997,192.69 12 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.