Document dYgxM8R8eyRyo0YK5mGoQZpXe

Saint Joseph Lead Company Annual Report -- 1966 America's Corporate Foundation; 1966; ProQuest Historical Annual Reports Pg- 0 1 Reproduced with permission of the copyright owner. Further, reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY During the past 103 years, St. Joseph Lead Company has grown from a small lead mining operation in Southeast Mis souri into the largest lead miner in the United States. It has also grown into one of the largest domestic producers of zinc. Its operations today range from Upstate New York to southern Argentina, and beyond the lead and zinc pictured on the cover of this Report. It markets such other products and by-products as sulfuric acid, zinc oxide, cadmium, silver, copper concentrates, and agricultural limestone. Through a joint venture with Bethlehem Steel, St. Joe mines iron ore and produces the high-quality iron ore pellets, also shown on the cover, that aid in efficient modern steel making processes. This growth reflects the achievements of skilled and capable people--St. Joe's greatest asset. It is these people, some of whom are pictured in this Report, who provide the important foundation for further expansion and with whom St. Joe confidently looks ahead; Contents Letter to Stockholders . 3 Review of Operations . 7 Balance Sheet .......... 20 Statements of Income and Retained Earnings 22 Ten-year Financial Review . 26 Lead and Zinc Statistics, U.S. and St. Joe .. .. 30 Corporate Data .... 32 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. TO JH'E/STOCKHOLDERS: i St. Joseph Lead Company's 1966 sales advanced to $145,109,767 from $136,156,901 in 1965. Net income, at $22,717,454, was largely unchanged from the prior year while earnings per share rose slightly to $5.05 from $4.98 in 1965, reflecting the Company's purchase during the year of 76,550 of its own shares for internal use. The quarterly dividend was increased from 65 cents to 70 cents a share in December, bringing total 1966 payments to $2.65. 1 The major accomplishment of the year was laying the foundation for substantially expanded output and improved efficiency for the years ahead by completing work on two major capital investment projects in Mis souri. These projects are the new Fletcher lead mine and mill and the expanded Herculaneum lead smelter, both of which came into operation early in 1967; earn ings this year should reflect these additions to produc tive capacity. Expenses capitalized in 1966 amounted to $15,711,952 and are estimated at $11,700,000 for 1967. The 1966 earnings were affected by several factors: by the necessity of making large purchases of lead to meet customer requirements, by the closing of the Her culaneum Smelter for the month of December to com- HIGHLIGHTS OF THE 103rd YEAR 1966 1965 Sales of metals, etc......................... $145,109,767* $136,156,901' Federal and state income taxes........ $ 8,826,341 $ 11,887,303 Net income . ... $ 22,717,454 $ 22,781,108 Dividends paid ..................... $ 12,050,896 $ 10,503,786 Shares of capital stock outstanding .. 4,496,267 4,570,584.5 Per share on capital stock: Net earnings................. .. . . $5.05 $4.98 Dividends ............................... $2.65 $2.30 Ratio of current assets to current liabilities ... .. Number of employees..................... 3.87 to 1 3,986 4.34 to 1 3,820 Number of stockholders . . . . 16,204 11,792 Stockholders' Investment (Book Value): Total ............................. $125,171,922 $117,290,252 Per Share .... . $27.84 $25.66 Sales and cost of sales include purchases of lead and tmc from US Government stockpiles on which by law no profit was earned totalling $20,819,015 in 1966 and $8,657,384 in 1965 Zinc miner Alton D. Gibson, left, drills a 50-foot "longhole round" in the No. 3 mine at Balmat, N.Y. in preparation for blasting. Gib son has been with St. Joe 15 years. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 3 plete work on the expansion project, and by reductions of 1 cent per pound in the price of lead in May and October. However, operations St. Joe has established in South America were unusually strong and dividends from the Company's foreign investments increased. In addition, Meramec Mining Company, St. Joe's joint ven ture for production of premium quality iron ore pellets, increased both production and earnings. The new Fletcher mine and mill, designed to add 60,000 tons of lead equivalent annually to St. Joe's out put, is believed to be among the most efficient in the { world. Its new methods and techniques will substantially increase output per man employed. The expanded and modernized Herculaneum Smelter brings the Company's potential output of finished lead to more than 200,000 tons a year and will increase the efficiency of the smelter operations. In addition, Si. Joe stepped up research and develop ment programs, especially those designed to open new markets for Company products. One of these products brought to market in 1966 was St. Joe's photosensitive zinc oxide, which has found wide acceptance in coating paper for use with office copying machines. St. Joe also increased exploration for new ore bodies, especially in Missouri and South America, and initiated new zinc capital programs, including expansion of the Josephtown Smelter and development of the Balmat ore extension. The reduction in lead prices reflected in St. Joe's 1966 operating results was in response to increased pressure from imports following elimination of import quotas on lead and zinc in late 1965 and the subsequent softening of demand in overseas markets. To insure the maintenance of reasonably competitive conditions in the United States lead and zinc industries, your Manage ment strongly favors legislation, already proposed, that would authorize flexible quotas on the import of lead and zinc during periods of surplus foreign production. Domestic demand for both lead and zinc was un usually strong in 1966 and remained so as the new year began. Zinc prices remained firm in 1966 and the in creased output of zinc at the Josephtown Smelter meant increased zinc sales for the Company. St. Joe's cash reserves, while enabling the Company to avoid curtailment of expansion in tight-money times, also provide an important resource for additional growth. 4; Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. The Company explored several possibilities for such growth in 1966 and will continue its careful search for investment opportunities. A new St. Joe subsidiary, Missouri Clay Products Company, has been established to explore development of bentonite deposits discovered by the Company in Mis souri. Bentonite is an important binding agent in pelletiz ing and is also a carrier agent for pesticides and other products of the petrochemical industry. The planned construction of a sulfuric acid plant at Herculaneum will open further opportunities in the do mestic acid market. The Company announces with regret the death, in 1966, of George I. Brigden, retired Vice President and Treasurer of St. Joe and a member of its Board of Trustees since 1944. His contributions to St. Joe, over a period of 50 years, were most constructive and his counsel will be greatly missed. Mark E. Riley, formerly Assistant Division Manager of Balmat-Edwards, was named Division Manager, suc ceeding Marshall G. Jones, who has retired after many years of valued service. The number of St. Joe shareholders increased during 1966 to 16,204 from 11,792 at the beginning of the year. This demonstration of interest in the Company is gratify ing and your Management greatly appreciates the con tinuing strong support of the Company shareholders. Largely as a result of this shareholder increase, the Company has retained Bankers Trust Company of New York as its Transfer Agent to handle stock transfer op erations previously performed by the Company. The year 1967 finds both ore reserves and financial resources at excellent levels. Operations have been streamlined and further efficiencies are planned. In sum, St Joe is well prepared for the opportunities that are ahead. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 5 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission REVIEW OF OPERATIONS I Research and Development St. Joseph Lead Company increased its direct and indirect investment in this important activity to more than $2.5 million in 1966 and plans further advances this year. This outlay is in addition to the Company's growing investment in exploration for new ore deposits. In the past, St Joe has largely concentrated its research on improv ing mining, milling, and metal-extraction operations. In mid-1965, the Company initiated its first product research program at expanded facili ties at the Josephtown Smelter and laboratories at the Mellon Institute in Pittsburgh. Significant results from these new programs included development and successful marketing of a photosensitive zinc oxide to coat paper used in many office copying machines. The quick success of this prod uct, which is finding an expanding market, helped boost St. Joe's 1966 zinc oxide sales over 15%, well ahead of the industry as a whole. St. Joe research has developed and is currently testing a new zinc oxide for use in exterior paints. This should further increase sales of zinc oxide to the outdoor paint market. Dispersion strengthened lead, an improved form of iead that reduces "creep," adds strength, and modifies other inherent characteristics of lead, is another important development. Since it eliminates the need for alloying agents in the lead used in lead-acid batteries--agents that now mean the batteries must be ventilated and receive regular servicedispersion strengthened lead makes possible the development of lighter, St, Joe research develops new uses for products as well as im proved quality and production methods. Dr. Carleton C. Long, above, is Director of Research at the Josephtown Smelter in Penn sylvania. At left, Richard H Mattern works at a combustion chamber in which zinc vapor is burned to make photosensitive zinc KfoJe, ' ai#: ''.'important new product for St. Joe. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission Reproduced with permission of the copyright owner. Further reproduction prohibited without permission completely ^self-contained, service-free batteries for automobiles and other uses. This new lead metal is currently being produced in pilot plant quantities for evaluation by the battery industry and has additional po tential in industrial and residential construction. Research at Meramec Mining, the iron ore and pelletizing facility St. Joe operates in joint venture with Bethlehem Steel, has developed a new high-quality iron oxide for use in the ceramic-ferrite industry. This industry's products are widely used in fractional horsepower motors, television sets and other appliances. A new processing facility to pro duce this material will start commercial production in the second half of 1967. Additionally, Meramec has been exploring the possibility of altering its concentrating plant and pelletizing furnaces to process the large amount of high-grade hematite ore encountered at Meramec in addition to the magnetite ore that makes up the basic ore body. Experi ments with hematite were conducted during 1966, and plans for the required changes are currently under study. St. Joe's research outlay also includes its contribution to the inter national Lead-Zinc Research Organization, Inc., an industry-wide group. Zinc Mining St. Joe's zinc mining produced 147,860 tons of zinc con centrate in 1966, up from 140,284 tons the prior year. The increase in zinc resulted primarily from a full year's operation of the expanded Edwards zinc mine' completed in mid-1965. Operations throughout the year were on a six-day-week basis. St Joe's zinc-mining operations in Upstate New York are currently being expanded. During 1966 Mark E. Riley, above, was ap pointed Division Manager of Balmat-Edwards, which embraces these activities. Left, Dean F. Carr, 18 years with St. Joe, operates a jackleg drill at Balmat No. 3 mine. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 9 The new shaft at Balmat, begun in 1966, will double the potential output of the Balmat operation. It is scheduled for completion in early 1970, and will both improve efficiency of operation at the existing mine and open for development a new ore body to the northwest that contains large quantities of high grade zinc ore. In the early 1970s, Balmat-Edwards will be able to supply as much as 70% of the zinc concentrates currently used at the Company's Jpsephtown Smelter. St. Joe's U.S. mines now provide about 45% of the Smelter's requirements, so the new mine will increase appreciably the overall profitability of the Company's zinc operations. Zinc Smelting St. Joe's Josephtown Smelter increased its output of zinc equivalent in 1966 to a record 216,910 tons from 202,657 in 1965. Slab zinc production advanced to 193,301 tons from 182,249 tons, and zinc oxide sales rose to $7,903,257 from $6,760,492 in 1965. Industry use of zinc in brass and galvanizing increased. Zinc die castings, rugged and corrosion resistant, form increasingly intricate and precise parts that are used in growing quantities in automobiles, vacuum cleaners, electric typewriters, appliances, and a wide variety of industrial parts. Galvanizing, which provides a zinc skin on steel for many years of maintenance-free protection, has recently been adopted in bridge con struction. The first such bridge in the United States was built last year in Ottawa County, Michigan, and 30 to 40 more are planned over the Technical service is an important St. Joe strength. Here, William Tunney, right, a Manager of Tech nical Services at St. Joe, and Richard E. Jordan, left, Assistant Sales Manager, discuss process improvements at Gregory Galva nizing &^Processing Company's Canton, Ohio, plant. A,steel tower section is just being removed from the zinc galvanizing bath in background. Charles D. Hender son, pictured above, is Division Manager in charge of the Joseph town Smelter. 10 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. mmeA country this year. An indication of the capability of this corrosion- protective method is St. Joe's own use of galvanized steel in its new Balmat mine shaft. This shaft, which will run to a depth of 3,180 feet, will use 1,075 tons of galvanized steel. The Josephtown Smelter, which operated at capacity throughout the year, increased that capacity in late March with installation of a new furnace able to produce 100 tons of zinc metal per 24-hour period. Zinc oxide production facilities were also increased, and the Company de veloped a new method for shipping zinc oxide in airtight, five-ton- capacity rubber containers, ensuring purity of the product on delivery. A new 250-ton-per-day sulfuric acid unit, to replace one of the original ones, is now under construction. -. ' f St. Joe has invested much time and effort in recent years building up its important customer-service organization, and the Company is proud of the reputation it has earned for helping solve problems and meeting new needs of its customers. During 1966, St. Joe stepped up these activities and effectively participated in a variety of industrial and engi neering seminars. The close relationship between the sales and service staffs has proved to be particularly valuable in broadening zinc product applications. Exploration St. Joe's broad exploration activities have led in recent years to such important discoveries as the "New Lead Belt" in Missouri, where the Company's Viburnum and Fletcher mines are located, and Exploration to open new ore bodies and effectively mine exist ing ones is carried on by St. Joe m the U.S. and South America. Norman H. Donald, Jr., above, is Manager of Explorations for St. Joe. He is pictured near the new Balmat shaft in Upstate New York. At left, a diamond drill helper on the "crow's nest" of a truckmounted exploration drill pulls drill rods prior to changing the diamond bit. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. zinc deposits at Balmat in Upstate New York, where a new shaft is in the process of being sunk. Extensive surveys will be made this year in Peru and Argentina in ad dition to stepped-up exploration near existing St. Joe mining operations in the Umted States. , The extent of St. Joe's exploration operations in 1966 is indicated by the amount of drilling done during the year. Drilling designed to estab lish the proper geographical location for potential mining operations totaled 300,000 feet; underground drilling to determine the specific scope and method of operation accounted for another 100,000 feet. This was done employing new and effective exploration techniques and with extensive use of computers in evaluating exploration data, estimating ore reserves, processing drilling results, and interpreting surveys. Lead Mining Lead concentrate production from Company mines, which in 1966 equaled the 1965 output of about 189,000 tons, is expected to increase substantially with the opening of the Fletcher mine. Copper concentrate output increased to 14,116 tons from 8,684 tons the prior year. The new Fletcher mill includes such innovations as an on-line X-Ray Analyzer, which performs in minutes an analytical operation that pre viously took a day of laboratory work. This and other such new equip ment and methods will enable Fletcher to operate at a high level of efficiency, in terms of output per man. Using rubber-tired machinery in mines increases flexibility and cuts costs. At right, Harold W Landolt, with St. Joe for almost 30 years, operates a "scooptram," introduced in 1966 in Viburnum, Missouri, mine No. 27. Above, Elmer A Jones, Division Manager of Southeast Missouri operations, stands before the head frame of the new Fletcher mine. 14 i i Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ; f' Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. The new shaft at Goose Creek, which was begun in October 1966, provides access to new reserves north of the Indian Creek Mine, ex I tending the productive life of that area. A 42-mile extension of the St. Louis-San Francisco Railway line to Viburnum, which is expected to be completed this year, will eliminate trucking of concentrates. Lead Smelting The Herculaneum Smelter's 1966 pig lead production I was reduced to 90,729 tons from 105,799 tons in 1965 as a result of the major expansion there. As planned, only about one month's production j was lost during the construction period, although pig lead sales by the 1 Company increased from 142,243 tons in 1965 to 175,762 tons in 1966. In anticipation of its expanded 1967 productive capacity, St. Joe pur chased a large proportion of its requirements from the government stockpile to fill customers' orders during 1966. As required by law, no profit was made on the stockpile transactions. The Herculaneum expansion will increase potential pig lead capacity of the smelter to over 200,000 tons a year, enabling St. Joe to increase sales with its own output. The increased efficiency of operation en hances St. Joe's flexibility in responding to changing market conditions. St. Joe's markets for lead are growing. Traditional uses, as in gaso line additives, automobile batteries, glass, paint, and ammunition, con tinue to expand while new uses are being made possible by such devel opments as dispersion strengthened lead. St. Joe's greatly expanded Hercu laneum Smelter in Missouri will increase the Company's lead out put. At right, Subforeman Larry J. Pettus scoops a sample from a 250-ton kettle of molten ioac at the new dressing plant, William Drummonds works a "drossing rake" to assist in the quality con trol operation. John W. Sherman, pictured above, is Division Man ager of Herculaneum. 16 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. KMirarir rh-hirrr,tar f It I' Construction of a new sulfuric acid plant at Herculaneum is planned \ to begin later this year, increasing the Company's caoacity to produce this product. The new plant will have a potential capacity, of approx i- 'i mately 100,000 tons of sulfuric acid annually. \ j1 Foreign Operations St. Joe's primary foreign investments consist of j mining companies and related facilities in Argentina and: Peru. ; The Argentina company, Cia. Minera Aguilar, S.A., increased pro[ duction in 1966 in response to increased lead and zinc demand there. | Aguilar plans a major expansion of its facilities starting later this year j with a potential 70% increase in capacity of mine and mill. Some $4 milI iion will be spent in Argentina on this project, and all the additional lead j* and zinc will be smelted and used in that country. Aguilar has investment in an electrothermic smelter, and an electro| lytic zinc plant and sulfuric acid plant in Argentina. These companies, r Cia. Metalurgica Austral and Cia. Sulfacid, S.A., continue to operate j satisfactorily, and expansion ofSulfacid's operations is being considered. [ Development of an underground mine by St. Joe's Compania Min- erales Santander, Inc., in the Andes Mountains of Peru started in 1966. | Completion of this mine is scheduled for iate 1968; it will replace the [ existing open-pit operation. Production of both lead and zinc at this ! operation increased in 1966, as did Santander's earnings. Continuing exploration activities indicate St Joe's confidence in the future of both countries. South American operations are an important part of St Joe's ac tivities. and exploration to expand those operations continues .Left. Mine Surveyor Neman Cristobal takes a reading at Compania Mmerales Santander.: whicn St Joe established :n Peru Above are Wing L. lew,, top. Managing Director of Cia. Mihera Aguilar in Argentina, and Clinton L Miller. Santander's Vice President and Genera! Manager Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 19 ST, JOSEPH LEAD COMPANY AND CONSOLIDATED SUBSIDIARIES \ ASSETS Current Assets: Cash ................................... Marketable securities (at cost) Accounts receivable--trade .. Other accounts receivable ... Inventories (Note 1): Lead, zinc, etc. ................ Materials and supplies .... Total Current Assets___ 1966 1965 $ 4,366,160 j $ 3,935,327 26,584,285 i 43,211,538 15,201,512 | 12,191,583 1,511,856 i l 1,203,286 13,806,052 j 7,344,787 j 7,440,362 6,365,253 68,814,652 j 74,347,349 Investments and Advances (Note 2) 16,942,835 18,077,125 Property, Plant and Equipment (Note 3)............ Less accumulated depreciation and depletion Property, Plant and Equipment--Net .... 168,175,847 ! 100,224,325 67,951,522 153,916,527 97,041,384 56,875,143 Other Assets: Securities on deposit with Governmental agencies ............................................ Cash and marketable securities-- Fire Insurance Fund (see contra)....... Total Other Assets......................... 963,048 370,544 1,333,592 963,429 360,574 1,324,003 Deferred Charges: Deferred shaft sinking and development expenditures (Note 4)..................... Other deferred charges..................... Total Deferred Charges.............. - To|al,v.............................. 7,802,679 j 1,643,062 6,290,119 1,819,561 9,445,741 8,109,680 $164,488,342 ! $158,733,300 See Notes to Financial Statements. !' .V! |20 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. CONSOLIDATED BALANCE SHEET DECEMBER 31, 1966 AND 1965 ! LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable and accrued liabilities........ Long-term debt due within one year (Note 5)., Federal income taxes ............................... Total Current Liabilities ................. Long-Term Debt (Note 5) ................................. Deferred Federal Income Taxes--related to accelerated amortization and depreciation........ Reserves: Injury claims and workmen's liability insurance Employees life insurance and retirement ,. Fire insurance (see contra)............................. Total Reserves . . ................. Stockholders' Equity (Note 6): Capital stock, par value $10 per share: Authorized--10,000,000 shares Outstanding--1966, 4,496,267 shares; 1965. 4,570,564.5 shares (after deducting shares in treasury. 1966, 97,936.35, 1965, 21,386.35 shares), . Other Capital--representing principally excess of amount of stock dividends over par value of capital stock............... Retained Earnings . . . ... .......... Total Stockholders' Equity . . ... Total ...... .. ................. 1966 ; 1965 $ 11,696,407 i $ 9,333,008 1,000,000 ! 1,425,000 5,071,964 | 6,371,007 17,768,371 ! 17,129,015 15,666,669 ! 19,216,669 4,666,134 . 607,012 237,690 370,544 1,215,246 3,874,050 612,679 250,061 360,574 1,223,314 44,962,670 45,705,645 21,015,379 59,193,873 125,171,922 $164,488,342 23,057,292 48,527,315 117,290,252 $158,733,300 See Notes to Financial Statements. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY AND CONSOLIDATED SUBSIDIARIES STATEMENT OF CONSOLIDATED INCOME FOR THE YEARS ENDED DECEMBER 31, 1966 AND 1965 Net Sales ...................... .................................... Cost of Sales....... .............................................. Other Income: Dividends on: Foreign investments ................................... Domestic investments.................................. Interest......... ................................................ Royalty, Meramec Mining Company............... Sundry--net .................................................... ' Total ".......... .. . ............................. Deduct: Selling, general and administrative expenses.. Research expenses .......................................... Shaft sinking and development expenses (Note 4)........................................................ Other exploration and development expenses Past service annuities...................................... Depreciation ................................................... Depletion ........................................................ Interest on indebtedness ................................ Total Deductions ......................... Income Before Income Taxes and Extraordinary Items ........................................ Federal and State Income Taxes........................ Net Income Before Extraordinary Items............. Extraordinary Items^Net (Less Applicable Tax).............................. Net Income for the Year...................................... Per Share (1966,4,496,267 shares; 1965, 4,570,564.5 shares)................................ 1966 $145,109,767 112,595,456 32,514,311 5,393,778 166,553 1,953,295 1,250,000 527,264 41,805,201 2,954,896 777,246 760,767 487,884 -- 4,010,790 415,917 853,906 10,261,406 31,543,795 8,826,341 22,717,454 -- $ 22,717,454 $5.05 1965 $136,156,901 96,979,226 39,177,675 1,815,760 166,793 1,945,655 1,250,000 354,680 44,710,563 2,629,666 695,363 365,850 229,546 153,581 4,343,765 517,069 1,121,922 10,056,762 34,653,801 11,887,303 22,766,498 14,610 $ 22,781,108 $4.98 STATEMENT OF CONSOLIDATED RETAINED EARNINGS FOR THE YEARS ENDED DECEMBER 31,1966 AND 1965 '.v, Retained Earnings at Beginning of the Year....... Net Income for the Year...................................... Total............................................. Dividends Paid: Cash (1966, $2.65 per share; 1965, $2.30 per share)................................................... Retained Earnings at End of the Year................. ' : .T-.i ' 1966 $ 48,527,315 22,717,454 71,244,769 12,050,896 $ 59,193,873 1965 $ 36,249,993 22,781,108 59,031,101 10,503,786 $ 48,527,315 See Notes to Financial Statements. 22 , : ; . ? : Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY AND CONSOLIDATED SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS 1. Inventories Inventories of lead, zinc, etc. (finished, in process,and concentrates) are valued at cost (not in excess of market), deter mined substantially on the last-in, firstout (LIFO) method. Materials and sup plies are valued at average cost. 2. Investments and Advances The carrying values of investments in the consolidated balance sheet, which are stated at cost, except as noted be low, do not indicate the current value of such investments. The following is a summary of investments and advances: Subsidiaries not Consolidated: Compama Minera Aguilar S.A.-- 99.9% owned, (capital stock 1 nominal value) (note 9)........ $ 1 Compania Minerales Santander, Inc.--wholly owned (capital stock $899,071 and debentures $1,030,536) .... 1,929,607 Fifty-Percent Owned Companies: Meramec Mining Company (capital stock $2,500 and advances, net $14,951,995).. 14,954,495 Mine La Motte Corporation (capital stock nominal value). 1 Other Securities, Loans, etc.: North Africa Investments: Societe des Mines de Zellidja (at less than cost) ..... .1 52,115 Societe Nouveiles des Mines D'Ain-Arko (nominal value).. 1 Sundry securities, loans, etc. ... 6,615 $16,942,835 The net assets of Com pania M inerales Santander, Inc. and its liability to the Company on debentures, totaled $5,529,419 at December 3.1,1966 and its net income for the year then ended was $1,553,268 after provision for interest on indebtedness to the Company, de preciation and depletion of $62,361, $322,523, and $59,084, respectively. De velopment costs for 1966 were $56,820, which were charged against income. During the year 1966, Bethlehem Steel Corporation and the Company each reimbursed Meramec Mining Com pany to the extent of $9,<453,240 for ex penditures made by it. Of this amount, $167,805 was recorded in the Com pany's accounts as additional invest ment in that 50% owned Company, and $9,285,435 as the cost of production. For financial accounting purposes, depreciation is provided in the accounts of the Company on its share of the de preciable property of Meramec Mining Company over twenty years, but for Federal income tax purposes on the declining balance method over ten years. Depreciation was provided in 19 66, in the amounts of $899,113 and $2,133,431, for book and tax purposes, respectively and deferred U.S, income taxes of $592,472, based on current tax rates, applied to the difference in the depreciation amounts, were charged against income. The Company's equity in the net assets of Mine La Motte Cor poration at December 31, 1966, was $252,075 and its equity in the corpora tion's net income for the year then ended, was $12,564. 3. Property, Plant and Equipment All properties are stated at cost ex cept for $17,000,000 of mining proper ties and mineral rights stated at ap praised values, for which full allowances for depletion have been provided. The net amountof property, plant and equip ment as shown in the consolidated bal ance sheet does not indicate the pres ent value of these assets, as such value could be arrived at only by current esti mates which would vary from time to time depending on the price of metals, rate of production, cost of labor, and other factors. 4. Shaft Sinking and Development Expenditures In 1963 the Company adopted the practice of capitalizing for financial ac counting purposes, shaft sinking and development expenditures reduced by amounts equal to the current tax reduc tions. The amounts so capitalized are to be written off over the life of the prop erty or the lives of the related mine equipment. The expenditures for 1966 related to Fletcher, Goose Creek and Balmat Projects. 23 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY AND CONSOLIDATED SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS 5. Long-Term Debt Long-term debt at December 31,1966, exclusive of amounts due within one year, comprises 4%% Notes Payable to Bethlehem Steel Corporation, aggre gating $15,666,669 due March 31, 1984. Under its Credit Agreement with Beth lehem Steel Corporation, the Company has assigned royalties to be received from Meramec Mining Company, up to $1,000,000 annually, as collateral secu rity for the Notes. 6. Stock Option Incentive Plan Under the Stock Option Incentive Plan approved by the stockholders in 1958, 130,000 shares of the Company's un issued stock was reserved for issuance and sale to officers and other key em ployees under 60 years of age, at a price not less than the market price at the time the options are granted. Due to the 10% stock dividend in 1962 and the three-for-two stock split declared in 1964, the total amount of shares so re served was increased to 189,589 after the elimination of 49,403 shares appli cable to options exercised. The options may be exercised in equal annual instalments on the anniver sary date of each grant and any part of an option not exercised at the end of five years from the date of the grant becomes void and available for future grants. During the year 1966, options for 42,200 shares were granted at $37,625 per share, and options for 2,253 shares were exercised. The excess of the ag gregate option price over the par value of 2,253 shares issued upon exercise of options in 1966, which amounted to $49,063, was credited to Other Capital, Outstanding options at December 31, 1966 adjusted to reflect the 10% stock dividend and the three-for-two stock split, both in the number of shares and the option prices, are as follows: Date of Grant Number Option of Shares Price | | | ! i i > ' i , i : ; ; 1 January 10,1964 .... 43,816 July 8, 1965 ........... 32,350 September 14,1966 . . 42,200 118,366 $35.5833 41.25 37.625 , . ; ! At December 31,1966, there remained available for future grants, 5,080 shares. In 1966 Other Capital was reduced by $2,090,976 representing the excess of cost over par value of 76,550 shares of treasury stock acquired for future is suance under the Stock Option incen tive Plan. 7. Retirement and Pension Plans The Company and its consolidated subsidiaries have a Retirement Plan for Salaried Employees and a Pension Plan for Payroll Employees, covered either by a contract with an insurance com pany or by funds deposited with a Trustee. The assets of the Plans are not included in the accompanying consoli dated balance sheet. Both Plans are non-contributory and all past service costs have been funded. At December 31,1966, the deferred past service costs were $1,377,755, which amount is to be amortized over the period as allowed by the Internal Revenue Code. Current service costs of both the Retirement Plan and Pension Plan aggregated $1,095,971 in 1966. * 8. Income Sales and cost of sales for the year ended December 31, 1966, include $20,819,015 for lead and zinc sold from the Government stockpile on which, by law, no profit was realized. 9. Compania Minera Aguilar, S.A. A balance sheet of Compania Minera Aguilar, S.A. as of December 31, 1966, and a related statement of income for the year then ended, both in summary form and stated in Argentine pesos, follow: Argentine Pesos* Current Assets............... Investments (at cost) ... Capital Assets................. Deferred Charges........... 2,256,947,810 201,160,072 610,000,763 16,758,316 Total Assets ........ 3,084,866,961 Current Liabilities........... Reserves ....................... Stockholders' Equity....... Total Liabilities and Stockholders' Equity.. 346,804,224 1,060,588,520 1,677,474,217 3,084,866,961 24 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY AND CONSOLIDATED SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS STATEMENT OF INCOME Argentine Pesos* Gross Profit on Sales . , 1,734,579,630 Other Income................. 230,861,606 Total .................. 1,965,441,236 Expenses, Other Taxes, Depreciation and Depletion and Other Deductions .... Argentine Income and Emergency Taxes, net.... Special Appropriation for Replacement of ; 242,546,799 556,674,953 Capital Assets........... ; 113,779,193 Total ............... 913,000,945 Net Income for the Year ... 1,052,440,291 *The quoted free rate of exchange for a peso was approximately $.0040 at; December 31, 1966. The above financial statements are in conformity with accounting principles generally accepted in Argentina, which differ in respect to the accounting for capital assets and related depletion and deprecation and for special appropria tions out of income for the replacement of capital assets, from that generally ac cepted in the United States of America. The dividend received from the Ar gentine subsidiary in 1966 exceeded the equity of the Company in Compania Minera Aguilar's net income for the year, by 5,484,036 pesos. Dividends re ceived are recorded as they are con verted into U.S. dollars or U.S. dollar bonds of the Argentine government. ACCOUNTANTS' OPINION HASKINS & SELLS CERTIFIED PUBLIC ACCOUNTANTS TWO BROADWAY NEW YORK 10004 To the Stockholders of St. Joseph Lead Company: We have examined the consolidated balance sheet of St. Joseph Lead Company and its consolidated subsidi aries as of December 31,1966 and the related statements of consolidated income and consolidated retained earn ings for the year then ended. Our examination was made in accordance with generally accepted auditing stand ards, and accordingly included such tests of the account ing records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the accompanying consolidated bal ance sheet and statements of consolidated income and retained earnings present fairly the financial position of St. Joseph Lead Company and its consolidated subsidi aries at December 31, 1866 and the results of their operations for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. ;. : ; February 21,1967 HASKINS & SELLS Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 25 ST. JOSEPH LEAD COMPANY AND CONSOLIDATED SUBSIDIARIES COMPARATIVE FINANCIAL REVIEW 1957-1966 'Adjusted to reflect the 10% stock dividend paid De cember 21, 1962, and the three-for-two stock split effected September 30, 1964. Average Metal Prices ; (Cents per pound) Lead, New York ..................__ Zinc, St, Louis........... ..................... Sales................................................. Cost of Sales ................................. Gross profit on sales Other Income: Dividends ....................................... Interest and other (net) ................... Royalty--Meramec Mining Company Total 1966 15.100 14.500 $145,109,767 112,595,456 32,514,311 5,560,331 2,480,559 1,250,000 41,805,201 Deduct: Selling, general administrative, research, etc................................. Strike and shutdown expense ;....... Shaft sinking, development and exploration .................................. Depreciation and depletion .............. Interest on indebtedness................. U.S. and foreign income taxes......... : i" : Total Deductions 3,732,142 -- 1,248,651 4,426,707 853,906 8,826,341 19,087,747 Net Income Before Extraordinary Items Extraordinary Items............................ 22,717,454 - Net income.................................................... $ 22,717,454 Per Share Outstanding At End of Year* ........................... ....... Percent Gross Profits on Sales Applicable to: Lead.............................................................. Zinc ................................................. Iron ................. ...................................... Total Assets .V...........`______________ _ Current Assets .................... .................. Current Liabilities........................................ Current Ratio (to 1) ............................ Stockholders' Equity: Amount ...................................... ................ Per share outstanding at end of year* $5.05 36 52 12 $164,488,342 68,814,652 17,768,371 3.87 $125,171,922 $27.84 1965 16.000 14.500 $136,156,901 96,979,226 39,177,675 1,982,553 2,300,335 1,250,000 44,710,563 3,478,610 --- 595,396 4,860,834 1,121,922 11,887,303 21,944,065 22,766,498 14,610 $ 22,781,108 $4.98 50 43 7 $158,733,300 74,347,349 17,129,015 4.34 $117,290,252 $25.66 1964 13.596 13.568 $109,509,039 83,481,096 26,027,943 4,455,494 1,779,855 1,250,000 33,513,292 3,209,101 -- 718,666 4,551,255 1,378,073 5,744,418 15,601,513 17,911,779 2,332,715 $ 20,244,494 $4.44 41 59 _ $153,707,601 70,071,803 14,222,293 4.93 $104,778,131 $22.98 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 1963 11.137 11.997 $ 75,598,525 57,932,666 17,665,859 1962 9.631 11.625 $ 67,981,883 58,106,248 9,875,635 1961 10.871 11.542 $ 71,008,301 58,063,668 12,944,633 1960 11.948 12.946 $ 79,970,908 69,062,502 10,908,406 1959 12.211 11.448 $ 86,611,677 72,804,292 13,807,385 1958 12.109 10.309 $ 76,075,865 67,370,230 8,705,635 1957 14.658 11.399 $107,473,568 92,042,828 15,430,740 2,613,188 781,304 1,250,000 22,310,351 3,588,027 952,053 729,166 15,144,881 1,634,422 2,493,264 - 17,072,319 1,991,830 551,587 -- 13,451,823 2,276,864 732,196 - 16,816,445 2,762,943 321,775 -- 11,790,353 2,042,879 639,177 - 18,112,796 2,657,207 1,566,461 1,657,847 3,897,981 975,111 1,651,971 12,406,578 9,903,773 -- $ 9,903,773 2,542,330 1,844,107 2,770,751 3,538,848 1,142,997 518,216 12,357,249 2,787,632 1,532,241 $ 4,319,873 2,272,135 -- 2,304,202 3,180,607 1,136,735 1,846,444 10,740,123 6,332,196 -- $ 6,332,196 2,322,476 -- 2,880,829 3,766,920 1,172,042 337,488 10,479,755 2,972,068 -- $ 2,972,068 2,355,219 316,272 1,850,551 3,334,648 1,154,307 1,542,372 10,553,369 6,263,076 -- $ 6,263,076 2,310,268 -- 1,522,462 2,754,733 513,973 702,037 7,803,473 3,986,880 - $ 3,986,880 2,468,540 -- 561,676 2,935,632 118,833 4,001,842 10,086,523 8,026,273 -- $ 8,026,273 $2.18 $.96 $1.41 $.66 $1.40 $.89 $1.79 29 71 $123,611,533 45,422,385 11,352,128 4.00 6 94 $117,897,308 46,823,524 8,753,333 5.35 26 74 $120,298,163 54,787,270 11,276,912 4.86 26 74 $116,545,876 45,178,167 7,485,650 6.04 42 58 $117,549,738 50,098,983 7,456,767 6.72 33 67 $107,679,085 45,791,438 5,786,183 7.91 42 58 $ 94,327,695 42,707,719 9,148,775 4.67 $ 91,795,960 $20.21 $ 84,578,891 $18.86 $ 82,967,539 $18.50 $ 79,349,540 $17.70 $ 79,064,194 $17.64 $ 75,517,340 $16.85 $ 74,246,682 $16.57 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY AND CONSOLIDATED SUBSIDIARIES WORKING CAPITAL ANALYSIS AND GENERAL STATISTICS 1957-1966 WORKING CAPITAL 1966 Source Earnings ............................... Provision for Depreciation and Depletion..................... Long-term Borrowings ........... Sale of Investments ..... -- Other, net .............................. Total $ 22,717,454 4,426,707 -- 4,000 1,066,522 $ 28,214,683 1965 $ 22,781,108 4,860,834 -- 5,724,028 551,519 $ 33,917,489 1964 $ 20,244,494 4,551,255 18,000,000 197,213 1,773,262 $ 44,766,224 Use Dividends Paid: Shares outstanding at end of year... Per share............... ........... Amount .............................. Capital Expenditures ............. Investments............................ Repayment of Debt ............... Purchase of Company stock for stock options................. Other, Net . ......................... \ Total Working Capital at End of Year 4,496,267 $2.65 $ 12,050,896 15,711,952 217,411 3,550,000 2,856,476 -- $ 34,386,735 $ 51,046,282 4,570,565 $2.30 $ 10,503,786 10,265,587 607,863 11,171,429 . - $ 32,548,665 $ 57,218,334 4,560,078 $1.66 $ 7,588,828 8,314,200 2,376,800 4,707,143 $ 22,986,971 $ 55,849,510 GENERAL STATISTICS Number of Stockholders................. United States Employees: Number ....................................... Salary and wage costs................. . . Pension and Retirement Plans: Members...................................... Contributions .............................. . . Pensioners ......... Pension Payments ....................... .. Deferred Profit Sharing Plan: Eligible employees...................... Contributions .............................. .. 16,204 3,986 $ 30,098,896 2,910 $ 1,154,212 1,081 $ 624,676 675 $ 679,585 11,792 3,820 $ 27,900,722 2,911 $ 2,384,779 1,047 $ 606,841 666 $ 636,135 9,107 3,769 $ 24,926,760 2,788 $ 1,314,415 1,023 $ 537,621 669 $ 590,768 28 , ' /. : Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 1963 1962 1961 1960 1959 1958 1957 $ 9,903,773 3,897,981 -- -- -- $ 13,801,754 $ 4,319,873 3,538,848 3,000,000 -- - $ 10,858,721 $ 6,332,136 3,180,607 -- 8,549,758 179,429 $ 18,241,990 $ 2,972,068 3,766,920 -- -- -- $ 6,738,988 $ 6,263,076 3,334,648 5,000,000 _ 1,509,628 $ 16,107,352 $ 3,986,880 2,754,733 15,000,000 -- 1,108,897 $ 22,850,510 $ 8,026,273 2,935,632 8,500,000 -- 399,130 $ 19,861,035 3,028,217 $1.25 $ 3,763,404 3,186,963 5,866,947 4,290,476 2,989,382 $1.00 $ 2,717,622 3,750,014 4,634,987 4,290,476 2,717,322 $1.00 $ 2,717,247 2,445,243 3,554,516 3,707,143 2,717,222 $1.00 $ 2,717,222 5,912,656 1,891,994 850,000 2,716,222 $1.00 $ 2,716,222 9,283,290 620,879 850,000 2,716,222 $1.00 $ 2,716,222 11,830,509 1,857,468 -- 2,716,222 $2.00 $ 5,432,486 15,017,048 4,094,470 -- 693,897 $ 17,801,687 $ 34,070,257 905,790 $ 16,298,889 $ 38,070,190 _ $ 12,424,149 $ 43,510,358 316,815 $ 11,688,687 $ 37,692,517 ,-- $ 13,470,391 $ 42,642,216 -- $ 16,404,199 $ 40,005,255 -- $ 24,544,004 $ 33,558,944 8,772 3,621 $ 20,813,527 2,628 $ 814,733 937 $ 496,194 687 $ 297,113 8,986 3,774 $ 19,781,411 2,777 $ 939,017 920 $ 457,701 683 9,740 3,871 $ 22,598,389 2,789 $ 944,152 886 $ 434,517 702 $ 189,966 10,651 4,171 $ 24,803,687 2,690 $ 1,049,557 819 $ 355,782 698 11,812 4,263 $ 22,670,522 2,622 $ 780,000 822 $ 331,550 682 $ 187,892 13,315 4,581 $ 23,755,404 2,448 $ 826,198 780 $ 303,019 693 14,267 5,076 $ 27,832,266 2,582 $ 800,928 710 $ 276,461 685 $ 240,788 ,, 7 ' Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. UNITED STATES LEAD STATISTICS IN SHORT TONS ' Current Supply: Recoverable U. S. mine production.......................... From U. S. stockpile................................................... From scrap................................................................ Imports of concentrates and bullion (lead content) .. Metal imports (net)........... ....................................... Total Lead Equivalent Available............. 1966 (Estimated) 321,000 75,000 550,000 130,000 278,000 1,354,000 Consumption: Batteries ........... ........................................................ Ethyl gasoline .......................................................... Cables ....................................................................... Construction ............................................................... Pigments............................................................ . Other uses...................:............................................. Total Consumption.................................. Apparent Surplus (Deficit)........................................ 440,000 243,000 63,000 112,000 122,000 320,000 1,300,000 54,000 1965 (Final) 301,000 37,000 543,000 128,000 214,000 1,223,000 429,000 225,000 60,000 116,000 109,000 303,000 1,242,000 (19,000) UNITED STATES ZINC STATISTICS IN SHORT TONS Current Supply: Recoverable U. S. mine production........................... Less--used to make pigments.................................... Recoverable domestic zinc available to metal smelters.................................................................. From U. S. stockpile................................................... From scrap................................................................ Imports of/Gpncentrates (recoverable zinc content) .. Imports of slab zinc................................................... Total Zinc Equivalent Available............... Consumption: Galvanizing...................... ......................................... Zinc-base alloys ......................................................... Brass ... ......... . . . . ............................................ Rolled zinc......... ...................................................... Oxides .................. . . . .............................................. Other .......................... ............................................... Total Consumption.................................. Exports ...................................................................... Total Zinc Metal Consumed and Exported Apparent Surplus (Deficit) ..;.................................. 1966 (Estimated) 605,000 96,000 509,000 95,000 72,000 500,000 285,000 1,461,000 498,000 622,000 185,000 52,000 31,000 29,000 1,417,000 2,000 1,419,000 42,000 1965 (Final) 611,000 99,000 512,000 170,000 84,000 401,000 154,000 1,321,000 - 482,000 638,000 127,000 46,000 26,000 35,000 1,354,000 6,000 1,360,000 (39,000) 30 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY LEAD STATISTICS IN SHORT TONS Year 1957 ........... 1958 ........... 1959 ........... 1960 ........... 1961........... 1962 ........... 1963 ........... 1964 ........... 1965 ........... 1966 ........... Lead Concentrates Produced from Company's Mines 163,079 149,624 143,167 147,879 139,817 86,375 113,801 170,704 189,962 189,225 Net Lead Raw Materials Purchased 46,309 25,102 8,300 13,656 4,927 4,453 2,773 3,528 4,086 4,796 Pig Lead Production 137,940 116,799 101,478 98,447 116,148 77,156 81,319 117,643 133,601 118,354 Pig Lead Purchased 62,392 51,569 50,306 33,209 17 -- 10,357 8,724 9,135 69,201 Pig Lead Sales Including 1957-1960 Sales Under Agency Contracts 183,942 139,131 164,084 131,852 108,447 112,857 96,692 125,177 142,243 175,762 ST. JOSEPH LEAD COMPANY ZINC STATISTICS IN SHORT TONS Year Zinc Concentrates Produced from Company's Mines 1957 ... 1958 ... 1959 . .. 1960 .. . 1961 . .. 1962 . .. 1963 . . . 1964 . .. 1965 ... 1966 ... 123,417 99,523 81,292 128,762 111,598 104,080 99,914 117,473 140,284 147,860 Net Zinc Raw Materials Purchased 129,847 110,182 121,611 166,613 123,882 170,281 153,053 214,772 229,358 150,413 Slab Zinc Equivalent of Smelter Production 151,554 122,774 128,670 148,788 141,209 153,968 174,089 193,444 202,657 216,910 Purchased Zinc 56,613 46,453 44,334 26,730 8,511 4,709 6,726 15,538 21,058 9,874 Slab Zinc Equivalent of Sales 192,112 174,083 179,478 158,276 162,005 152,258 178,515 211,731 221,329 214,189 Sulphuric Acid Sales 204,255 171,938 176,607 186,722 194,327 189,866 211,930 243,920 237,305 252,987 IRON ORE PELLET STATISTICS IN LONG TONS (ST. JOE SHARE) Year 1964 ....... 1965 ....... 1966 ....... 407,814 791,439 869,239 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY BOARD OF TRUSTEES (Year Elected) EXECUTIVE OFFICERS MANAGER OF EXPLORATIONS UNITED STATES DIVISION MANAGERS Cia. Minera Aguilar, S. A., Argentina Cia. Minerales Santander, Inc., Peru Meramec Mining Company General Counsel Transfer Agent Auditors Registrar 32 Incorporated March 25,1864, under the laws of the State of New York Executive Office 250 Park Avenue, New York, N. Y. 10017 Andrew Fletcher*, Chairman (1921) Francis Cameron*, President (1953) Bernard F Desloge, Vice President, Minerva Oil Co., St. Louis, Missouri (1953) Eli Whitney Debevoise*, Debevoise, Plimpton, Lyons & Gates, New York, N. Y. (1954) James W. McAfee,Chairman, Union Electric Company, St. Louis, Missouri (1954) David R. Calhoun, President, St. Louis Union Trust Company (1957) Joseph Pursglove, Jr., Vice President, Consolidation Coal Co., Pittsburgh, Pa. (1959) Plato Malozemoff', President and Chairman, Newmont Mining Corporation (1961) Guido F. Verbeck, Jr., Senior Vice President, Morgan Guaranty Trust Company of New York (1961) Elmer A Jones, Division Manager (1963) Lawrason Riggs III*, Vice President (1963) Robert H Ramsey, Vice President (1964) 'Member of Executive Committee Andrew Fletcher ; Chairman Francis Cameron President ;- Malcolm Bonynge ' Vice President-Sales John R. Englehorn Vice President Robert H. Ramsey Vice President Lawrason Riggs III Vice President James G. Colvin Vice President and Treasurer D. Broward Craig Secretary William L. Murphy, Jr. Comptroller & Assistant Secretary Edward P. Merrel! Assistant Treasurer Frank J. Reidy Assistant Comptroller Norman H. Donald, Jr. Mines Elmer A. Jones, Southeast Missouri Mark E. Riley, Balmat-Edwards, N. Y. Smelters John W. Sherman, Herculaneum, Missouri Charles D. Henderson, Josephtown, Pennsylvania Wing L. Lew, Managing Director Clinton L. Miller, Vice President & General Manager Robert G. Peets, Resident Manager Debevoise, Plimpton, Lyons & Gates 320 Park Avenue, New York, /V. Y. 10022 Bankers Trust Company, 16 Wall Street, New York, N. Y. 10015 Haskins & Sells, Two Broadway, New York, N. Y. 10004 The First National City Bank, 55 Walt Street, New York, N. Y, 10005 Meramec Mining Com pany is St, Joe's joint venture with Bethlehem Steel for production of the iron ore pellets pic tured at right. The Mera mec operation had in creases in both produc tion and earnings in 1966. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 4s3BEEfr ST. JOSEPH LEAD COMPANY * 2S0 PARK AVENUE NEW YORK, N. Y. 10017 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.