Document wr2MQmmoE1L7g69XbnyQonro4

Saint Joseph Lead Company Annual Report --1929 America's Corporate Foundation; 1929; ProQuest Historical Annual Reports pg. 0_1 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, 1929 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. BOARD OF TRUSTEES Daniel K. Catlin, St. Louis, Missouri. Charles M. Chapin, New York. Hendon Chubb, of Chubb & Son, New York. Irwin H. Cornell, Vice-President Clinton H. Crane, President. Firmin V. Desloge, St. Louis, Missouri. Andrew Fletcher, Vice-President and Treasurer. 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, 1929 In 1929 cash dividends to the amount of $5,851,374.75 have been paid to stockholders, as compared with $5,851,335.00 in 1928, and to minority stockholders in subsidiary companies $70,305.00 as compared with $76,253.00 in 1928. Consolidated earnings were as follows: 1928 1929 Gross................................................................... $7,772,749.45 $11,883,617.03 Deduct: Depreciation...................................... Depletion............................................ Reserve for Federal Income Taxes. Total ................................ .. $1,050,348.88 1,775,803.27 455,623.88 $3,281,776.03 $ 1,268,935.08 2,264,740.04 883,938.98 $ 4,417,614.10 Net Income........................ $4,490,973.42 $ 7,466,002.93 The earnings of 1929 were larger than for the year 1928. Approximately $790,000 of this increase was due to profit on the sale of securities. Sales of pig lead for the year, including lead purchased, were 221,889 tons as compared with 188,982 tons in 1928. The average price received for the company's product, East St. Rouis basis, was 6.646 cents a pound for lead, as compared with 6.133 cents for the year 1928, and 6.512 cents a pound for zinc, as compared with 6.027 cents for the year 1928. Federal Income Taxes amounting to $459,211.20 were paid in 1929 and $9,449.90 additional Federal Capital Stock Tax for the years 1924 and 1925 was also paid. Final payment on account of back taxes for the years 1917, 1918, 1919 and 1920 has been agreed upon with the Board of Tax Review and will require with interest approximately $115,000.00 additional. The years 1921-1928, inclusive, have not yet been settled and it is anticipated that there will be some " .. ..3 Reproduced with permission of the copyright owner Further reproduction prohibited without permission. additional tax for these years. The company's reserve for contingencies should be ample to cover the probable amount. The sale of your railroad properties and your power plant, referred to in my last report, was consummated in the year 1929, your company receiving for its railroad investment $3,673,940.78 in cash and 4,725 shares of stock of the MissouriIllinois Railroad Company (21% of the outstanding stock of that company) which is under option to the Missouri Pacific Railway for the sum of $321,428.57, The contract to sell your power plant calls for payment of $2,750,000 on March 1, 1930, in addition to the $250,000 already paid. On May 1, 1929, your company purchased the ore reserves, mineral rights and all the physical property of the Desloge Consolidated Lead Company in St. Francois and Washington Counties, Missouri, for the sum of $10,000,000, plus minor adjust ments covering the values of metal in process and inventory supplies on hand. Pay ment was made by the issuance of debenture bonds which were called and paid on December 2, 1929. The ore lands of the Desloge Company were closely associated with your company's older holdings and round out its property in St. Francois and Washington Counties, Missouri, in such a way as to make for more efficient operation. In 1926 your company purchased the Edwards Mine in St. Lawrence County, New York, and as part of the consideration for the purchase price took an option on an undeveloped and unexplored zinc property in the town of Fowler which was known locally as the "Balmat" property. This property your company has proved by diamond drilling, drifting and crosscutting, to be of real merit, and with the acquisition of an adjoining property known locally as the "Dominion" has developed a mine which justified the erection of a mill, the building of a railroad spur four and one-half miles long, and the erection of a townsite with the necessary buildings, water supply, sewage disposal, etc. The initial unit is of 500-ton capacity but will probably be enlarged to 1000'tons if the zinc market warrants. Your company has organized in Buenos Aires, Argentina, an Argentine Corporation--the "Compania Minera Aguilar, S. A."--and transferred to this company all its mining rights and properties in the Aguilar District, Province of Jujuy, Argentina. A Delaware corporation known as the "Aguilar Corporation" has recently been incorporated and to it has been transferred all of the stock of the Argentine Corporation. The Aguilar Corporation will finance in the Argentine the building of a 35-mile railroad from Tres Cruces to Aguilar, the construction of an 800-ton mill, a Diesel power plant, townsite, and will handle all the necessary development to place the property in operation during the early part of 1932. CLINTON H. CRANE, President. 4 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. PRODUCTION Tons of ore mined............................................................ Tons of lead concentrates produced...................... Tons of lead content in concentrates produced............. Tons of zinc concentrates produced.............................. Tons of zinc content in concentrates produced.......... ... 1928 4,883,194 204,181 148,568 45,928 27,361 1929 5,750,412 245,958 178,181 60,475 35,115 5 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. AND SUBSIDllJi d CONSOLIDATED BALANCE i ASSETS Capital Assets : Ore reserves and mineral rights, including appreciation arising from revaluation................................................. $42,888,607.04 Less--Reserve for depletion............................. .. 25,591,839.39 $17,296,767.65 Buildings, plant, and equipment*.. Less--Reserve for depreciation $20,670,704.30 7,045,857.03 13,624,847.27 Exploration expenditures on properties held under optfcm............................. 821,795.90 Total capital assets....................................................................................... $31,743,410.82 Investments : : Sundry securities and loans.............................................................. Stocks of other mining companies**........................................... Investments in and advances to Mine La Motte Corporation (50% owned).............................................. ................................. $ 448,903.56 617,190.70 895,088.40 1,961,182.66 Current and Working Assets : Inventories at cost: Lead and zinc.......................................................................... $ 1,831,777.94 Materials and supplies................................................................ 2,303,281.72 Total inventories.................. Accounts receivable............................... Marketable securities and call loans Cash in banks and on hand............. . $ 4,135,059.66 . 1,751,114.90 . 2,722,40423 . 1,752,035.68 10,360,614.47 Deferred Charges--Prepaid insurance, taxes, etc....................................................... 266,577.50 Total $44,331,785.45 * Leas $250,000.00 received on account for power plant sold subsequently to December 31, 1929. ** At cost or market whichever was lower. 6 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ri LEAD COMPANY if COMPANIES SHEET, DECEMBER 31, 1929 LIABILITIES Capital Stock: Authorized, 2,000,000 shares of $10,00 each Issued, 1,996,792 shares..................................... Less--In treasury, 46,332 shares............ $20,000,000 00 $19,967,920.00 463,320.00 Net ........ ................................................................................. $19,504,600.00 Scrip outstanding. ....................................................................... 488.50 $19,505,088.50 Minority Interest in Subsidiary Companies : Capita] Stock and Proportion of Surplus Applicable Thereto........................... 228,756.32 Current Liabilities : Accounts payable................................................................................. $ 1,585,252.90 Wages accrued................................................... ................................. 62,431.89 Federal income tax, 1929.................................................................. 821,458.72 Total ...................................................................................... $ 2,469,143.51 Dividends declared, payable quarterly during 1930 ................ 5,851,381.50 8,320,525.01 Reserve for Contingencies, Etc. (Including Federal taxes for prior years).,. 1,419,962.17 Surplus 14,857,453.45 Total $44,331,785.45 CERTIFICATE. We have examined the accounts of the St. Joseph Lead Company and its subsidiary companies for the year ended December 31, 1929. The inventories of lead and zinc, and materials and supplies represent balances shown by perpetual inventory records which ere adjusted periodically to agree with physical inventories. The inventory records were examined by us and appear to bo In order, Wk Hereby Certify that in our opinion the above consolidated balance sheet and accompanying consolidated surplus account set forth, respectively, the iinancial condition of the companies at December 31, 1929, and the results of their operations for the year ended that date. New York, March 21,1930. Haskins & Sells, I <' Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST, JOSEPH LEAD COMPANY AND SUBSIDIARY COMPANIES CONSOLIDATED SURPLUS ACCOUNT FOR THE YEAR ENDED DECEMBER 31, 1929 Surplus, December 31, 1928, including surplus arising from revaluation of ore reserves and mineral rights............................................................................................ $13,493,586.31 Profit From Operations for The Year Ended December 31, 1929, after writing off development and exploration ex penses on properties abandoned, but before providing for depreciation, depletion, and Federal income tax........................ $10,237,728,26 Interest, dividends, and miscellaneous income (net).......... .......... 1,717,041.56 Gross Income..................... ........................................................................... $11,954,769.82 Deduct--Provision for: Depreciation ............................................................ Depletion .......................................................... Federal income tax................................................ $ 1,268,935.08 2,264,740.04 883,938.98 4,417,614.10 Net ........................................................ ................................... $ 7,537,155.72 Deduct--Proportion of net income applicable to minority in terests ...................................................................................................... 71,152,79 Net Income for the year...................................................................................................... 7,466,002.93 Deduct: Total ..................................................................................................................... $20,959,589.24 Surplus of Mississippi River And Bonne Terre Railway-- Sold as of January 1, 1929......................................................... $ Less decrease in minority interests in The Doe Run Lead Company .......................................................................................... 250,814,96 79.42 250,735.54 Net ......................................................................................................................... $20,708,853.70 Deduct--Dividends declared, payable quarterly during 1930........................ 5,851,400.25 Surplus, December 31, 1929, including surplus arising from revaluation of ore reserves and mineral rights............................................................................................ $14,857,453.45 8 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY (PARENT COMPANY) INVESTMENTS IN SUBSIDIARY COMPANIES DECEMBER 31,1929 The Doe Run Lead Company........................................ .. Kansas Explorations, Inc................... ... ......................... . Bonne Terre Farming- and Cattle Company ----- - ... No. of shares outstanding Par value per share Percentage of outstanding shares owned 6,574'Hn No par 96.43% 8,000 $100 00 100.00% 50,000 10.00 99,91% ST. JOSEPH LEAD COMPANY AND SUBSIDIARY COMPANIES STATEMENT OF ESTIMATED AND ACTUAL NET INCOME FOR THE YEAR ENDING DECEMBER 31,1929 Net income, before providing for depreciation, depletion and Federal income tax....................................,............................... Estimated $12,100,000.00 Actual $11,883,617.03 Deduct--Provision for: Depreciation .......................................................... .. Depletion ................................................... ............................ Federal income tax. . ......................... ................ Net income for the year ending December 31, 1029. $1,220,000 00 2,160,000.00 920,000.00 $4,300,000.00 $7,800,000 00 $1.268.935.0S 2,264,740.04 883,938.98 $4,417,614.10 $7,466,002.93 9 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST JOSEP BALANCE SHEElfol Capital Assets : Ore reserves and mineral rights Less--Reserve for depletion ASSETS $29,058,807.28 14,615,883.05 $14,442,924.23 Buildings, plant and equipment'*'............................................ $15,939,554.50 Less--Reserve for depreciation...................................................... 5,062,753.34 10,876,831.16 Exploration expenditures on properties held under option............................ 821,795 90 Total capital assets............................................................................................ $26,141,551.29 Investments in and Advances to Suhsimary Companies : Investments ........................................................................... -- ..... Advances (Net) .................................................... ............................. $5,211,758.57 2,440,160.02 7,651,918.59 Other Investments : Sundry securities and loans............................................................. Stocks of other mining companies'*''*'............................................ Investment in and advances to Mine La Motte Corpora tion (50% owned)........ .............................................................. $358,830.89 617,190.70 895,088.40 1,871,109.99 Current and Working Assets : Inventories at cost: Lead and zinc............................................. V................ .. Materials and supplies............... ........... ................................... $1,417,188.19 2,080,372.93 Total inventories................................................................. Accounts receivable ...............................................................-- . Marketable securities and call loans........................... ................ Cash in banks and on hand.............................................................. $3,497,561.12 1,648,343.55 615,484.41 1,484,835.40 7,246,224.48 Deferred Charges--Prepaid insurance, taxes, etc........... .......................................... 173,136 51 Total $43,083,940.86 Less $166,CGG.C7 received on account for power plant sold subsequently to December 31, 1029. At cost or market whichever was lower. 10 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. X Ilead company Hccif^PANY) ,iDECEMBER 31 1929 LIABILITIES Capital Stock : Authorized--2,000,000 shares of $10 each................. $20,000,000.00 Issued, 1,996,792 shares.................... ................................................ $19,967,920.00 Less--In treasury, 46,332 shares.............................................. 463,320,00 Net............................................................................................. $19,504,600.00 Scrip outstanding.............................................................................. 4S8.30 $19,505,088.50 Current Liabilities: Accounts payable........................................................... Wages accrued ....................................................................................... Federal income tax. 1929 .................................................................. $1,518,295.95 47,798.52 478,284.05 Total ............................................................... Dividends declared, payable quarterly during 1930 ............... $2,044,378.52 5,851,381.50 7,895,760.02 Reserve tor Contingencies, Etc. (Including Federal taxes for prior years)... 948,932.76 Surplus ...................................................................... .................................................................. 14,734,159.58 m Total .................................. .................................................................................... $43,083,940.86 CERTIFICATE. We have examined the accounts of the St. Joseph Lead Company for the year ended December 31, 1929. The Inventories of lead and zinc, and materials and supplies represent balances shown by perpetual inventory records which are adjusted periodically to agree with physical inventories. The inventory records were examined by us and appear to be In order. We Hereby Certify that in our opinion the above balance sheet and accompanying surplus account set forth, respectively, the financial condition of the company at December 31, 1929, and the results of Its operations for the year ended that date. New York, March 21, 1930. Haskins & Sells, 11 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY (PARENT COMPANY) SURPLUS ACCOUNT FOR THE YEAR ENDED DECEMBER 31, 1929 Surplus, December 31, 1928................................................................................................... $12,997,192.69 Profit From Operations For The Year Ended December 31, 1929, after writing off exploration expenses on properties abandoned, but before providing for depreciation, depletion, and Federal income tax.................................................................... $ 7,066,934.75 Interest, dividends, and miscellaneous income, including divi dends received from subsidiary companies (Net)................ 3,446,869.57 Gross Income.................................................................................................. $10,513,804.32 Deduct--Provision for: Depreciation ............................................................ $ 1,006,441.02 Depletion ................................................................... Federal income tax.................................................. 1,378,231.85 540,764.31 2,925,437.18 Net Income For The Year....................................... ........................................................... 7,588,367.14 Gross Surplus ................................................................................................... $20,585,559.83 Deduct--Dividends declared, payable quarter!}'- during, 1930 ................................... 5,851,400.25 Surplus, December 31, 1929................................................ ............................................. $14,734,159.58 12 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.