Document ykoYX7X5RK53VNNe2LmQJRk0r

Saint Joseph Lead Company Annual Report -- 1931 America's Corporate Foundation; 1931; ProQuest Historical Annual Reports pg. 3 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY Incorporated March 25, 1864, under the Laws of the State of New York Daniel K. Catlin, Si Louis, Missouri Charles M. Chapin, New York Hendon Chubb, of Chubb & Son, Irwin H. Cornell, Vice President Firmin V. Desloge, St. Louis, Missouri BOARD OF TRUSTEES Clinton H. Crane President . Andrew Fletcher, Vice President and Treasurer James H. Grover, Pres., St Louis Union Trust Co. Fred W. Shibley, Vice Pres., Bankers Trust Co. Hon. E. C. Smith, St Albans, Vermont M. F. Watts, of Watts & Gentry, St. Louis EXECUTIVE OFFICERS Clinton H. Crane Irwin H. Cornell, Vice Pres., and Sales Manager President Andrew Fletcher, Vice Pres,, and Treasurer C. Merrill Chapin, Jr. Vice President H. B. McGown, Secretary Robert Bennett, Assistant Secretary George I. Brigden, Assistant Secretary STOCK TRANSFER OFFICE 250 Park Avenue, New York REGISTRAR City Bank Farmers Trust Company, New York BOND INTEREST and PRINCIPAL Payable at Messrs. J. P. Morgan & Company, New York Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY 250 Park Avenue, New York City PRESIDENTS ANNUAL REPORT TO STOCKHOLDERS To the Stockholders the St. Joseph Lead Company: : The following report covers the operations of your Company for the fiscal year ended December 31, 1931. Dividends In the year 1931 cash dividends to the amount of $2,438,07975 have been paid to the stockholders of the St Joseph Lead Company as compared with $5,851,386.00 in 1930, and to minority stockholders in subsidiary companies $14,61875 as compared with $128,865.00 in 1930. Comparative Price, Production, Sales and Earnings The effect of the low metal prices and sales is reflected in the following comparative yearly figures: Year 1928 1929 1930 1931 Price f.o.b. St. Louis Lead cents per lb. Zinc cents per lb. 6.133 ; 6*027 6.646 6.512 5.456 4.556 4.007 3.640 Production Tons of ore mined Tons of lead concentrates Tons of lead content 100% basis Tons of zinc concentrates _ Tons of zinc content 100% basis 4,833,194 204,181 148,568 45,928 27,361 5,750,412 245,958 178,181 60,475 35,115 5,999,813 243,614 177,935 86,795 50,064 4,465,794 196,481 141,999 63,348 37,056 Pig Lead Sales, Including Lead Content in Concentrates Sold St. Joe production Purchased lead sold 136,640 52,342 Total 188,982 160,490 61,399 221,889 137,502 82,221 219,723 105,262 69,085 174,347 Consolidated Earnings Profit from operations Deduct interest and expense on funded debt Gross Income Deduct provision for Depreciation Federal Income taxes Total Net Income before Depletion $7,772,749.45 $11,883,617.03 $5,809,486.42 $1,974,48573 352,265.72 $7,772,749.45 $11,883,617.03 $5,809,486.42 $1,622,220.01 1,050,348.88 455,623.88 1,268,935.08 1,319,064.38 1,149,702.39 883,938.98 390,314.61 $1,505,97276 $ 2,152,874.06 $1,709,378.99 $1,149,702.39 $6,266,776,69 $ 9,730,742.97 $4,100,107.43 $ 472,517.62 During the year 1931 the amount charged against current earnings for the depletion of the ore reserves totaled $1,886,589.04 in comparison with $2,566,469.67 in 1930, $2,264,740.04 in 1929 and $1,775,803.27 in 1928. This depletion provision is based on production, whereas the earnings are based on sales. The production for 1931 was approximately 23% greater than sales, and the 1931 sales were about 23% less than in 1930. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Financial Condition As approved by the Stockholders at the last Annual Meeting held on April 9, 1931, $9,752,300 par value of Ten-Year Convertible 5Yz% Gold Debenture Bonds were offered at $97.50 plus $0.15 accrued interest per $100 bond to Stockholders of record at the close of business April 20, 1931, in the proportion of $100 principal amount of bonds for each twenty shares of stock then owned. An agreement was also entered into with Messrs. J. P. Morgan & Company to underwrite the entire issue. From the proceeds the short term bank loans were paid off. The Company's funds have been kept in a liquid condition. The Government and short term municipal securities owned as of the close of the year totaled $2,026,000.00 of which $1,960,000.00 mature during 1932. The following table gives the amount and due date of each issue: Security City of Yonkers, N. Y., $%% Tax Ant. Notes Federal Intermediate Credit Bank 3% Notes City of Rochester, N. Y.,, 1.68% Notes Federal Intermediate Credit Bank 3.70% Notes U. S. Treasury 3Vz % Certificates U.S. Treasury 1 % % Notes New York City 4*4% Bonds, Series S.R.6-V. Dominion of Canada 4% 2 yr. Treas. Notes New York City 5%% Corporate Stock New York City 4*4% Bonds State of New York 4%% Bonds State of New York 4% Bonds U. S. 4th Liberty Loan 4*4% Bonds 1 Due Date January 22, 1932 February 15, 1932 March 7, 1932 March 15, 1932 March 15, 1932 September 15, 1932 November 15, 1932 December 1, 1932 December 15, 1932 May 1, 1936 April 1, 1937 April 15, 1952 October 15, 1933-38 Total Par Value $ 100,000. 500,000. 100,000. 500,000. 10,000. 500,000. 50,000. 100,000. 100,000. 25,000. 15,000. 16,000. 10,000. $2,026,000. The Company's investment in the stocks of other Mining Companies, has been written down to the December 31, 1931, closing market bid prices. A settlement has been effected with the Internal Revenue Department, and all taxes plus interest due through and inclusive of the year 1931 have been paid. A decision as to the Company's 1929 claim for refund has not been received. The $766,821.10 in the Reserve for Cohtingehcies is therefore available for unforseen contin gencies, as it is now believed that no part of it will be required for the payment of prior year Federal taxes. Southeast Missouri By reason of the increasing stocks of lead, both in the United States and the World markets, your Company continued to operate its mines in Southeast Missouri on a 75% time schedule until October 1, 1931, when a 60% time basis was necessitated. The method of operating each Division three weeks out of every five weeks was adopted in order to give employment to the greatest possible number of men. On March 30, 1931, all wages and salaries were reduced by 20%. Josephtown, Pennsylvania The Acid Plant, which was placed in initial production during December, 1930, has continued to operate satis factorily during the entire year. Approximately 10,400 tons of 100% sulphuric acid was produced of which 9,191 tons were sold. This production may be considered as approximately 30% of the plant's capacity. The Zinc Smelter was placed in initial production in January. HSt, Joe'' Zinc Oxide has been well received by the leading United States rubber producers, and prospects for increased sales in the tire, as well as the paint industry, are well assured. The operation has proved the soundness of the original designs, the original estimated furnace capacities and costs are being equalled, and there are good prospects of even further betterment in the costs and in the quality of the oxides now being produced. St. Lawrence Division, New York : ; At the Balraat property the new No, 2 Shaft has been completed and the underground development has shown satisfactory results. V The recent development work on the 1700' Level of the Edwards Mine has been most encouraging, and the additional tonnage will insure an increased life for this property. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Atlanta, Idaho . In November, 1917, a development option was taken on the Boise-Rochester Mine area which is located in the Middle Boise Mining District, about one and a half miles south of the Town of Atlanta, Elmore County, Idaho, where gold deposits were discovered and exploited in the early 1860's. Although the development work justified the taking title to the optioned property, additional work on adjoining areas proved unproductive, and it was decided not to place the mine in production. Due to the increase in the value of gold properties during the last two years, and the improvement in the art of gold flotation, an effort was made to dispose of the Atlanta property. However, as it was impossible to secure a satisfactory offer, and in order to at least partly liquidate the Company's investment, it was decided to ship to this mine certain of the surplus equipment from the Hughesville, Kansas and Southeast Missouri Divisions. A 200-ton flotation mill has been constructed, and the mine will be initially operated in the early months' of 1932. Block P Mine, Hughesville, Montana All operations were stopped in September, 1930, and on May 1,1931, the development work was also discontinued; the property was then placed on a watchman basis. Although the development work proved up a satisfactory amount of ore, this mine cannot be placed in production until there is a decided improvement in the combined market values of lead, zinc and silver. Kansas Explorations, Tri-State District All operations were stopped on May 1, 1931, and the five mines are now on a watchman basis. Mine La Motte, Missouri This property was also closed down in March, 1931, and placed on a watchman basis. Aguilar Mine, Province o Jujuy, Argentina Due to the general depressed condition in the world metal markets, it was decided to postpone the placing of this property in production. The development work has been actively continued, and with satisfactory results. Number of Stockholders During the last ten years the number of the Company's stockholders has more than doubled: Year 1921 1922 1923 1924 1925 Number 2,258 2,351 2,402 2,335 2,629 Year 1926 1927 1928 1929 1930 Number 3,239 3,684 4,183 4,025 4,493 December 21, 1931, 5,063 stockholders The 5,063 in 1931 is divided into 1,784 stockholders owning less than 20 shares, 1,349 owning between 20 and 99 shares, 831 holders of between 100 and 199, and 1,099 owners of 200 or more shares each. Dividend Notice In accordance with notice already mailed to stockholders, the Board of Trustees at a meeting held on December 21, 1931, decided that in view of the 1931 earnings, the depressed condition prevailing in the mining industry, the difficulty of prognosticating future earnings, and with the realization that the dividend rate could be readily increased upon any improvement in general business, that it was advisable to follow a conservative course. The dividend, payable on March 21, 1932, was accordingly reduced to fifteen cents per share. Notice as to Voting Rights for Annual Meeting The Board of Trustees has fixed the 10th day of March, 1932, as the day as of which stockholders entitled to notice of and to vote at the Annual Meeting shall be determined, and for the purpose of that Meeting, all persons who are holders of voting stock at the close of business on March 10, 1932, and no others shall be entitled to vote at such Meeting. Proxies for the Annual Meeting, which will be held on April 14,1932, at the Principal Office, 250 Park Avenue, New York City, at eleven o'clock in the forenoon, will be mailed in due course, February 16, 1932. New York. CLINTON H. CRANE, President Reproduced with permission of the copyright owner; Further reproduction prohibited without permission. ST* JOSEPH LEAD COMPANY and SUBSIDIARIES CONSOLIDATED BALANCE SHEET December 31, 1931 ASSETS CAPITAL ASSETS: - . Ore Reserves and mineral rights (including $1,239,512.99 revaluation appreciation) Less--Reserve for depletion ,' Land, buildings, plant and equipment Less--Reserve for depreciation Railway construction--cost being refunded TOTAL CAPITAL ASSETS INVESTMENTS AND ADVANCES: Aguilar Corporation <89% controlled) Mine La Motte Corporation (50% owned) Stocks of other mining companies (at market bid prices) Sundry securities and loans CURRENT AND WORKING ASSETS: Cash Short term securities ($1,960,000.00 due in 1932) Notes and accounts receivable Materials and supplies (at cost) Inventories of lead, zinc, etc. (at cost--less than market) $42,658,847.34 29,962,124,44 $21,783,676.56 8,043,196.01 $ 1,462,500.00 805,484.63 177,469.00 452,520.98 $ 2,450,603.97 2,026,000.00 1,598,417.15 1,738,681.68 5,092,299.50 $12,696,722.90 13,740,480.55 207,055.00 $26,644,258.45 2,897,974.61 12,906,002.30 DEFERRED CHARGES: Unamortized debt discount and expense Prepaid insurance, taxes, etc. TOTAL $ 295,844.70 131,370.74 427,215,44 $42,875,450.80 LIABILITIES CAPITAL STOCK: Authorized, 2,500,000 shares of $10.00 each Issued 1,996,797 shares Less--In Treasury, 46,332 shares Net Scrip outstanding MINORITY INTEREST IN SUBSIDIARY COMPANIES-- Capital stock and proportion of surplus applicable thereto FUNDED DEBT: St. Joseph Lead Company Ten Year Convertible 5%% Gold Debenture Bonds due May 1, 1941 Less--Bonds in treasury CURRENT LIABILITIES: Accounts payable Accrued wages - Accrued interest on bonds in hands of public Federal income tax Total Dividend of 15c a share declared December 21, 1931, payable March 21, 1932 DEFERRED CREDITS-- Unrealized profit on sale of houses, etc. RESERVE FOR CONTINGENCIES SURPLUS TOTAL $25,000,000.00 $19,967,970.00 463,320.00 $19,504,650.00 438.50 $ 9,752,300.00 1,185,000.00 $ 1,363,567.35 43,530.42 78,714.71 $ 1,485,812.48 292,569.75 $19,505,088.50 103,934.32 8,567,300.00 1,778,382.23 126,367.61 766,821.10 12,027,557.04 $42,875,450.80 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST* JOSEPH LEAD COMPANY and SUBSIDIARIES STATEMENT' OF CONSOLIDATED SURPLUS For the Year Ended December 31* 1931 SURPLUS, DECEMBER 31* 1930 (Including Surplus arising from revaluation of ore reserves and mineral rights* $1,664,248.02) Decrease in minority Interests during 1931 Total $15,192,209.31 119.08 $15,192,328.39 PROFIT FROM OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1931 (Before interest and expense on funded debt, depreciation, and depletion) OTHER INCOME: Profit on sale of purchased metal, etc. Interest net Dividends $ 103,133.06 42,451.89 17,712.50 GROSS INCOME Deduct--Interest and expense on funded debt $1,811,188.28 163.297.45 $1,974,485.73 352,265.72 INCOME BEFORE DEPRECIATION AND DEPLETION Deduct--Provision for Depreciation INCOME BEFORE DEPLETION Deduct--Provision for Depletion NET LOSS Deduct--Proportion of net loss applicable to minority interest $1,622,220.01 1,149,702.39 $ 472,517.62 1,886,589.04 $1,414,071.42 4,718.57 LOSS FOR THE YEAR ENDED DECEMBER 31, 1931 * 1,409,352.85 GROSS SURPLUS Deduct--Dividends (including dividend declared December 21, 1931, payable March 21, 1932) SURPLUS, DECEMBER 31, 1931 (Including surplus arising from revaluation of ore reserves and mineral rights, $1,239,512.99) * Write down of securities amounting to $101,146.67 has been charged against the Reserve for Contingencies. $13,782,975.54 1,755,418.50 $12,027,557.04 CERTIFICATE ST. JOSEPH LEAD COMPANY: ' We have examined your accounts and those of your subsidiary companies for the year ended December 31, 1931. The inventories of lead, zinc, etc. are valued at cost not including depreciation and depletion, which is less than market, and were not verified under audit as to quantities. In our opinion the accompanying Consolidated Balance Sheet and Statement of Consolidated Surplus set forth, respectively, the financial condition of the companies at December 31, 1931, and the results of their operations for the year ended that date. February 16, 1932. New York, HASKINS & SELLS. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY PRESIDENT'S ANNUAL REPORT TO STOCKHOLDERS YEAR 1931 CAMPBELL PRESS, INC. 140 WKST 24TH ST., N. Y. C. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission