Document yk9ZMgN7xJ3MbvxpZn3O6KdD2

Q < a* W Bn hJ !x 5*3 jz: ftS h -J < Bn S> fe: O S CJ CO <1 !2i IHft A N13829 To the Stockholders of Motional Lead Company: The following is a Consolidated Balance Sheet of National Lead Company as of June 80, 1941 and a Statement of Consolidated Income and Surplus for the first six months of 1941. The consolidation includes only domestic subsidiaries in which National Lead Company owns all of the outstanding capital stock. Dividends received from foreign corporations owned in part or in whole, domestic corporations not wholly owned, as well as interest on bonds and miscellaneous items not directly connected with current operations, are included in the item of "Other Income. During the period tile company received foreign dividends amounting to $178,176.15. The precedent established last year of setting aside all foreign divi dends as additions to our existing Reserve for Foreign Investments has been followed. In view of the European situation, a further addition to our Reserve for Foreign Investments, amounting to $460,000.00, was set aside to provide against poftpjWA losses. This amount has been credited to the Reserve for Foreign Investments and included in Other Charges in the Consolidated Fftrnmga Statement. Dividends on National Lead Company Preferred and Common Stocks owned by the Company itself are not included in this statement, either as disbursements or as income. ______ _ . _ . Fl e t c h e r W. Ro c k w el l , President. ASSETS Current Assets: Cash ............................................ ...................................................................* U. S. Government Securities (Market Value $ 550,058.30) Other Marketable Securities, Domestic (Market Value $ 764,867.19) Other Marketable Securities, Foreign (Approximate Market Value $1,604,98437) Accounts and Notes Receivable...................................................................... Less Bad Debt Reserve................................................................................ Notes Receivable from Employees................................................................ Inventories (at Normal Prices, Excess at Cost or Market).................... Total Current Assets.................................................................... $ 8,660,963.78 508,677.51 $ 616,928.53 1476,608.65 $14,001,267.05 918,590.80 1,693,537.18 13,082,676.25 803,041.65 21,695,438.19 $ 45,939,834.56 Investments and Advances: Affiliated Companies (at book value in no case exceeding cost): Domestic .................................................................................................................. Foreign .................................................................................................................... $ 6,472,936.43 4,397,442.71 $10,870,379.14 National Lead Company Capital Stock (29,883 shares Preferred A; 25,815 shares Preferred B; 7,638 shares Common) (Market Value $8,960,867.94) 7,027,232.69 Miscellaneous Investments (not listed on any exchange) : Domestic ................................................................................................................. $ Foreign ................................................................................................................... Total Investments and Advances........................................................ 361,247.84 77,840.00 439,087.84 18,386,699.67 Fixed Assets: Plant Properties and Equipment--Gross Property. Less: Depreciation and Depletion Reserves..... $82,698,739.80 83,489,258.80 49,209,481.00 Patents and Licenses Deferred Charges ... 484371.97 680.954.77 $114,651,84 LIABILITIES Current Liabilities: Accounts Payable, audited but not due........................................ Tax Reserve ..................................................................................... Dividend Payable August 1, 1941 on Class B Preferred Stock. Total Current Liabilities............................................. . Reserves: Fire Insurance Reserve................................................................... . Employers Liability Reserve........................................................... Pension Reserve............................................................................... . Reserve for Contingencies................................................................. Foreign Exchange and Miscellaneous........................................... Capital Stock and Surplus: Capital Stock: Preferred Class A--Par Value $100........................................ . Preferred Class B--Par Value $100.......................................... Common --Par Value $ 10......................................... . Earned Surplus .................... ............................................................ Capital Surplus ............................................................................. $ 4,410,485.26 4,884,749.74 116J.93.00 $ 9,411,428.00 $ 4,797384.02 426,664.30 2,806,668.20 1,550,000.00 166342.67 9,247,154.19 Authorized Tflonfu) $ 25,000,000.00 $24,367,600,00 25.000.000.00 10.327.700.00 50.000.000.00 30.983.100.00 $100,000,000.00 $65,678,400.00 80,193,640.58 120,719.20 95,992,759.78 $114,651,341.97 DETAILS OF PLANT INVESTMENT Gross Property ............................................ Less Depreciation and Depletion Reserves Net Property ........................ June 80,1941 Dec. 81,1940 $82,698,739.80 $79,504,810.75 33,489,258.80 32,436,827.15 $49,209,481.00 $47,067,988.60 Increase $3,193,929.05 1,052,431.65 $2,141,497.40 * The present normal stocks of the Company are as follows: Lead ................................................................................................................................... Tin .......................................................................................................................... Antimony............................................................................................................................... Stocks in excess of normals are valued at cost or market, whichever is lower. Contingent Liabilities: Guarantee Norwegian Bank Loan 800,000 Kroner, 48,687%short tons valued at $0.08 1,124%shorttonsvalued at.21 259 short tons valued at .05 perpound parpound perpound 0000-NLI-000018243 CONSOLIDATED EARNINGS STATEMENT -----------Six Months Ended Jui 1941 Sales ................................................................................................................................. $61,690*089.50 Cost of Goods Sold, Taxes (except Federal Income and Excess Profits taxes), Depreciation and Other Expenses........................................................... .............. 55418442.95 $ 6,471446.55 Other Income ................................................................................................................. 371,70747 $ 6442,953.92 Other Charges................................................................................................................. 628.175.15 Provision for Federal Taxes (Not included above): $ 6414,778.77 Normal Income Tax.......................................................................... $24-94,334.11 Excess Profits Tax............................................................................ 731,444.70 2,925,778.81 Total Net Income........ .......................................................................... $ 3488,999.96 $1,007477.27 -------- Dividends on Preferred Stock Outstanding: Class A .............................................................................................. $ 748475.50 Class B .............................................................................................. 232,386.00 $ 748476.50 980,661.50 232,386.00 Amount Earned on Common Stock........ ................................ $ 2,308,338.46 Amount Earned per share of Common Stock Outstanding $.747 30th------------1940 $41,455,769.36 37,491,266.77 $ 3,964,502.59 355,10347 $ 4419,605.86 192,518.10 $ 4,127,087.76 1,00747747 $ 3,119,810.49 980,661.50 $ 2,139,148.99 $.691 ANALYSIS OF CONSOLIDATED SURPLUS Earned Surplus--At beginning of year... Add: Net Income for Six Months.............. 1941 $28457,970.12 3488,999.96 $31,946,970.08 Deduct: Dividends Paid During Period--- Preferred Stock Outstanding: Class A .......................................................................................... $748475.50 Class B .......................................................................................... 232,386.00 $ 980,661.50 Common Stock Outstanding.................... ............................................................... 772,668.00 Total Dividends Paid............................................................................. $ 1,753,329.50 Earned Surplus--June 30th......................................................................................... $30,193,640.58 Capital Surplus--June 30th......................................................................................... 120,71940 Total Surplus--June 30th..................................................................... $30,314,359.78 'Provision for Federal Taxes is o o f best estimate at this time (July 24, 1941) of the expected liability of the Company for Federal Income and Excess PPrro^j`sc TTaxes binder the proposed law for the year 1941. 1940 $27424,804.02 3,119,810.49 $30444,614.51 $748475.50 232486.00 $ 980,661.50 773,775.00 $ 1,754,436.50 $28,590,178.01 120,719.20 $28,710,89741 0000-NLI-000018244