Document y1dvMBxYj69xqkxoMjxdRwOV

Saint Joseph Lead Company Annual Report -- 1923 America's Corporate Foundation; 1923; ProQuest Historical Annual Reports Pg- 1 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. PRESIDENT'S ANNUAL REPORT TO THF. STOCKHOLDERS OF THF. St. Joseph Lead Company FISCAL YEAR ENDING DECEMBER 3 1, 192 3 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. PRESIDENT'S ANNUAL REPORT TO THE STOCKHOLDERS OK THIC ST. JOSEPH LEAD COMPANY FISCAL YEAR ENDING DECEMBER 31, 1923 In the year 1923 dividends to the amount of $3,,098,752.50 in cash have been paid to stockholders and to minority stockholders in subsidiary companies $164,316. The earnings for the year, after deducting all charges for depreciation, deple tion and reserve for Federal Taxes, resulting from the operation for the fiscal year, were $4,379,854.07. Your mines produced 2,778,347 tons of ore. Your mills produced 154,283 tons of concentrates. The smelter production was 95,511 tons of pig lead. The sales of pig lead for the year amounted to 95,964 tons. (This does not include sales of lead purchased from the Bunker Hill & Sullivan Mining and Concentrating Company.) FINANCIAL As a result of the purchase of the Federal Lead Company properties and of $574,000. bonds of the Mississippi River & Bonne Terre Railway, your company's holdings of Liberty bonds, certificates of indebtedness and other short term securities were reduced. Its holdings of such securities on December 31, 1923, !; " . were as follows: $400,000 U. S. Treasury Certificates due September 15, 1924 500.000 U. S. Treasury Certificates 4Li% due March 15, 1925 300.000 State of Missouri Bonds 5% due March 1, 1928-1936 200.000 State of Missouri Bonds 4yj<y/o due December 1, 1925 3 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Federal Income Taxes, amounting to $341,984.98, were paid in 1923. Final audit and approval by the Bureau of Internal Revenue on account of the year 1917 and subsequent years, has not yet been received. BALANCE SHEETS This year's balance sheets reflect the purchase of the Federal Lead Company properties. PURCHASE OF THE PROPERTY OF THE FEDERAL LEAD COMPANY Your company, on October 23, 1923, purchased all mines, ore reserves, sur face lands and mining plant owned in Southeast Missouri by the Federal Lead Company, a subsidiary of the American Smelting & Refining Company. These mines are adjacent to the mines owned by your company and at many points underground connections have already been made. The purchase of this property is in direct line with the company's policy as stated in the President's last annual report. This purchase, besides increasing the immediate output, will make avail able much ore which could not have been profitably mined by either company, thus tending not only to increase the life of your company hut of the whole district. The purchase was financed by the payment of $4,688,510.80 in cash and $5,000,000 in notes of $1,000,000 each due in one, two, three, .four and five years with interest at the rate of six per cent, per annum for the property and plant and of $419,79S.73 for the inventory, including fuel and carbons for diamond drilling. KANSAS EXPLORATIONS, Inc. The extensive drilling campaign in the Tri-State District mentioned in your President's last report was continued with most satisfactory results, In order to handle more efficiently this branch of your company's business, a subsidiary cor poration was formed, known as Kansas Explorations, Inc., with a capital stock Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. of $1,000,000. The balance sheet of Kansas Explorations, Inc., is published herewith, although it is included in the consolidated balance sheet of the St. Joseph Lead Company and subsidiary companies and will be so included hereafter. The money owed by the Kansas Explorations, Inc., is owed to the St. Joseph Lead Company. The first mill was completed and the first ore milled on December 28, 1923. GENERAL The company's business for the year 1923 continued to be good. ! t ', Clinton H. Crane, President. i 5 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. AND SUBSIDL CONSOLIDATED BAUM ASSETS Capital Assets : Ore Reserves and Mineral Rights............... Less Reserve for Depletion.................... $29,665,192.64 11,137,441.06 $18,527,751.58 Buildings and Equipment at Mines and Smelter ............................................................ $12,353,297.54 Less Reserve for Depreciation........................... 1,800,771.53 ' 10,552,526.01 Real Estate......................................................................................... Farm Lands, Buildings and Equipment.......... $ 561,477.96 Less Reserve for Depreciation....,.............. . 32,952.29 140,109.36 528,525.67 Railroad Property and Equipment.................. $ 4,457,672.39 Less Reserve for Depreciation.......................... 622.23S.64 3,835,433,75 $33,584,346.37 Investments : Missouri-Illinois Railroad Company.......................................... Other .................................................................................................... $ 362,536.63 12,000.00 374,536.03 Sinking Fund and Reserve Fund Assets--Cash and Accrued Interest.......... Current Assets: Cash ...................................................................................................... $ 1,304,064.90 Cash in Transit........ ........................................................................ 95,037.15 Marketable Securities (par value, $1,425,000.00; Market Value, $1,441,350.00)................................................................ 1,449,423.19 Accounts and Notes Receivable.................................................... 1,619,769.95 Lead on Hand and In Process. , .................................................. 571,512.79 Materials and Supplies............ .. . ... ........................................... 1,715,849.11 Store Accounts (Net).......................... .. ................................... 46,591.44 16,60S,30 6,802,24S.53 Deterred Dedit Items: By-Product (Matte)...................................... ................................. Real Estate Sold on Long Term Contracts............................. Advances to Bonne Terre Hospital Association..,,.............. Insurance Premiums--Unexpired;^Portion.., ,...................... Taxes Paid in Advance................,................................... ............ Licenses Paid in Advance.......................................... Mine La Motte Prospecting...................................... St. Francois County Prospecting................................................... Miscellaneous .................................................................................... $ 60,600.92 45,491.86 54,000.00 94,375.12 14,647.12 40,000.06 92,223.04 28,599.26 15,770.16 445,707,54 CERTIFICATE OF AUDIT We have audited the books and accounts of the St. Joseph Lead Company and its subsidiary companies for tbc year ended December 31, 1923, and We hkpery certify that, in our opinion, the above consolidated balance sheet correctly sets forth the financial condition of the Com panies at that date. MITCHELL & SIMSON. New York, February 21, 1924. Total ...................................................................................... * From acquiring Capital Stock of Kansas Explorations, Inc., $709,999.00. $41,223,447.37 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. i: ;ad company IMPANIES ' ;ET, DECEMBER 31, 1923 Capitai. Stock; LIABILITIES ' St. Joseph Lead Company: Authorized--2,000,000 shares of $10.00 each, of which there have been issued 1,605,7-14.6 shares.................. I,ess held in Treasury, 56,332 shares.......................... .. $16,057,446.00 563,320.00 $15,494,126.00 Subsidiary Companies--minority stock held by the public.................................* Funded Deut: Mississippi River & Boone Terre Railway First Mortgage, 5% Bonds, due 1931.................................................................. $ 2,500,000.00 Less: ' Held in Sinking Fund.................................. $ 695,000.00 Held in Treasury................ .................. .. 1,035,000.00 1,730,000.00 235,950.00 770,000.00 Punch asp: Money Notes--$1,000,000.00 Pav.mu.p; Ocyoiwr 23, 1924, 1925, 1926, 1927 and 192S....................................................... Current Liabilities : Accounts and Wages Payable......................................................... $ 1,407,689.99 Traffic and Car Service Balances............................................ 50.S99.75 Dividend declared December 17, 1923, parable March 20, _ 1924 .............................................................. '.............................. 774.68S.50 Taxes Accrued ..................................... 50,321.17 Interest Accrued ................................................................................ 83,378.12 5,000,000.00 2.366,977.53 Deeerred Credit Items...................................................................................................................... Rp:sp:uvp:s : Profit on Lease Agreements........................................................ Premium on Bonds to be purchased for Sinking Fund....'. Contingencies (includes provision for Federal Taxes).......... $ 19,674,42 25,055.07 1,642,733.48 121,598.68 1,687,462.97 Surplus: .. Balance, March 1, 1913.................... ................................................ $ 3,925,000.00 Less Amortization Distributions therefrom.............................. 3,523,665.00 Remainder ....................................................... $ 401,335.00 Undistributed Profits and Increase due to Revaluation of Properties, March 1, 1913 to December 31, 1922.............. 13,229,263.62 Balance, January 1, 1923................................................................... $13,630,598.62 ^Excess of Par Value over Book Value of Securities of Subsidiary Companies airqmred during the Year.......... 799,949,00 Net Income for the Year ended December 31, 1923, after providing for Depreciation of Plant and Equipment....:.................. $ 6,384,827.41 Add : Amount received from U. S. Government in final settle- merit of claims under Sec tions 204 and 207 of the Transportation Act......... $ 250,539.51 Miscellaneous Credits.......... 18,951.38 269,490.89 Total ................................................ Less: ^ _ Provision for Depletion of Ore Reserves and Mineral Rights .................................. $ 1,537,323.71 Provision for Federal Taxes (Companies' estimates).. 689,470.00 Miscellaneous Charges.......... 47,670.52 $ 6,654,318.30 2,274,464.23 Profit & Loss Surplus for the Year ended December 31, 1923 .............................................................................................. 4,379,854.07 Total .................... ............................ ....................... $18,810,401.69 Less: ., Dividends declared and paid in 1923----- -- $ 2,488,381.00 Dividend declared December 17, 1923, pay able March 20, 1924...................................... 774,688.50 3,263,069.50 15,547,332.19 Total $41,223,447.37 7 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. BALANCE S ASSETS Capital Assets : . Ore Reserves and Mineral Rights................. Less Reserve for Depletion............................. $16.2S0.056.S0 5,906,396.65 $10,373,659.94 Buildings and Equipment at Mines and Smelter ........................................,........... $ 9,265,806.43 Less Reserve for Depreciation....................... 1,177,545.95 8,OSS,260,4S Real Estate ....................................................................................... 59,093.78 $18,521,014.20 Securities Owned: Affiliated Companies ............................................. ........................ Other ................................................................................................... $ 8,731,383.39 252,332,88 Sinking Fund and Reserve Fund Assets--Cash and Accrued Interest......... 8,983,716.27 16,608.30 Current Assets : Cash ............................................................................. ...................... $ Cash in Transit.,........................................................................... Marketable Securities (Par value, $25,000.00; Market 854,167.25 90,683.00 Value $25,000.00) ........................................................... ....... Accounts and Notes Receivable............................................ ... Due from Affiliated Companies................................................. Lead on Hand and in Process.................................................... Materials and Supplies................................................................... '25,006.08 1,534,272.76 861,101.02 455,195.49 1,117,271.58 4,937,697.18 Deterred Debit Items: .' By-product (Matte) ..................................................................... Real Estate Sold on Long Term Contracts........44,576.19 Advances to Bonne Terre Hospital Association,,...'.......... Insurance Premiums--Unexpired Portion................................ Taxes Paid in Advance ................................................................ License IVcs Paid in Advance ........................... ............... .... Mine La Motte Prospecting ........................................................ St. Francois County Prospecting .............................................. Miscellaneous ................................................................................... $ 60,600.92 36,000.00 63,576.50 10,733.52 27,553.57 92,223.04 28,599.26 7,655.13 371.51S.13 CERTIFICATE OF AUDIT TVe bave audited the books and accounts of the Pc, h>. .-ph I i Company tor the year ended December 31, 1023, am! \Vu HenKBY cicktii'Y that, in our opinion, the above balance sheet correct!-1' sets forth the jlnisncui! conilltion of the t that date. MITCHELL ,& SIMSOX. Now York, February 21, 192Y Total. $32,830,554.08 0 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ad company EMBER 31, 1923 LIABILITIES Caditai, Stock : Authorized--2,000,001) >hares of $10.00 each, of which there have been issued 1,605,744.6 shares...................... ............. Less Held in Treasury, 56,352 shares...................................... $16,057,446.00 563,320.00 $15,494,126.00 Notks Payaiu.l: Mississippi River & Bonne Terre Railway.............................. $ 2,500,000,00 Less Bonds of Mississippi River & Bonne Terre Railway; Held in Sinking Fund........ '..A............... $ 695,000,00 Field in Treasury........................................... 1,035,000.00 1,730,000,00 Remainder ................................................................... $ 770,000.00 Purchase Money Notes--$1,000,600.00 Payable October 23, 1924, 1925, 1926, 1927 and 1928............ '........................... 5,000,000,00 5,770,000,00 Curiuont Liaiuutips : Accounts and Wages Payable......................................................... $ Due to Bunker Hill & Sullivan Mining & Concentrating Company for Lead purchased.............................................. Dividend Declared December 17, 1923, payable March 20, 1924 ................................................................'.............................. Due to Affiliated Companies.......................................................... Taxes Accrued................................................................................ Interest Accrued . -- ,.................. .................................................. 845,090.69 317,678.13 774,688.50 6S3.41S.90 50,321.17 SS,S28.12 2,760,025.51 Ri-sruvi-s: Profit on Lease Agreements........................................................... Premium on Bonds to he purchased for Sinking Fund.... Contingencies (includes provision for Federal Taxes).... $ 19,674.42 25,055.07 1,068,158.38 1,112,887.87 Surplus : Profit & Loss Surplus, January 1, 1923.......... $ 5,786,272.05 Amortization Distributions Received.............. 2,853,045.00 Total ......................................... $ S,639,317,05 Less Amortization Distributions Paid............ 3,523,665.00 Net Surplus, January 1, 1923.................................................... Net Income for the Year ended'-December 31, 1923, after providing for Depreciation of Plant and Equipment..................................... $ 6,764,802.52 Add Miscellaneous Profit & Loss Credits.... 8,142.56 $ 5,115,652.05 Total ..........................,......................... $ 6,772,945.08 Di-duct : Provision for Depletion of Ore Reserves and Mineral Rights.;.... $ Provision for Federal Taxes ................................. Miscellaneous Charges ... . 895912.71 1 75,000.00 . 25,416,22 1,096 328.93 5,676,616.15 Total 7777. .......................... $10,792,268.20 LES Dividends Declared and Paid in 1923... $ 2,324,065,00 Dividend Declared December 17, 1923, payable March 20, 1924.................... 774,688.50 3,098,753.50 7,693,514.70 Total $32,830,554.08 9 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. KANSAS EXPLORATIONS, INC* , BALANCE SHEET, DECEMBER 31 1923 ASSETS Capital Assets : Ore Reserves and Mineral Rights............................................ Leases and Development........................................................ Real Estate, Mine Buildings and Machinery, etc..................... $815,000.00 567,223.68 209,062.23 Total Capital Assets............ ...................................................................... $1,591,285.91 Current Assets: Cash .................. ............................................ ............................ Accounts Receivable ................................... ...... ...................... $ 24,700.47 20.00 Total Current Assets....................... ...... ......................................... 24,720.47 Total ......................................................................... ;........................... $1,616,006.38 LIABILITIES Capital Stock: Authorized--10,000 Shares of $100.00 each.................................. $1,000,000.00 Less unissued (2,000 Shares)................................ .......................... 200,000.00 Outstanding (8,000 Shares)................ .................. ................................. $ 800,000.00 Notes Payadle--St Joseph LeadCompany,................................................................ 775,789.33 Current Liabilities : Accounts and Wages Payable.......................................................... $ Due to Affiliated Company: St Joseph Lead Company.,.............. ................................... 24,624,19 '2,828.03 TotalCurrent Liabilities...,..................... Surplus .................................................................................... 27,452.22 12,764.83 Total .................................... $1,616,006.38 CERTIFICATE OF AUDIT. We have audited the books and accounts of Kansas Explorations, Inc., for the period from December 8, 1923 {the date it begain business) to December 31, 1923, und We hereby certify that, in our opinion, the above balance sheet correctly sets forth the financial condition of the Company at that date. New York, February 21, 1924. 'i 10 Mitchell & Simson. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.