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Saint Joe Annual Report -- 1968 America's Corporate Foundation; 196B; ProQuest Historical Annual Reports Pg- 0J Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY St, Joe's recent annual reports have detailed particular facets of Com pany operations of prime interest to our shareholders, in addition to high lighting overall activities and progress associated with the calendar year under review.' These presentations have focused on St. Joe's continuous' expansion over its 105 year history, its management and employees, and its increasing number of products and their widening end use applications. The 1968 St. Joe report, in addition to reviewing a record earnings year, focuses on some of the capital expansion and improvement projects, recently completed or in progress, which will have increasing impact on our operational efficiency, profitability, produci growth and corporate ad vancement. CONTENTS Letter to Shareholders .......................................................... ................... 3 Review of Operations ................................................................. .............. 6 Balance Sheet..................... ................................. .... -- ... 22 Statement of Income and Retained Earnings 24 Product Statistics..........................................................V...... -- .. 20 & 27 Ten Year Reviews ................... ..".... ................. 28 &30 Corporate Data ............... ................................................................ .... 32 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission HIGHLIGHTS 1968 1967 Sales of metals, etc. $150,811,758 $129,036,565 Federal and state income taxes $ 12,448,865 $ 5,812,848 Net Income $ 24,973,475 $ 21,403,886 Dividends: Cash Stock {2 for 1 split effected in the form of a stock dividend) $ 12,308,873 100% $ 12,568,349 Shares of capital stock outstanding December 31 8,533,800 8,971,276 Net earnings per average share $2.89 $2.38 Dividends per share $1,425 $1.40 Ratio of current assets to current liabilities ...... 3.63 to 1 4.87 to 1 Number of employees (U.S.) 4,032 3,959 Number of shareholders ............ 20,472 18,585 Shareholders' equity (book value) $135,667,395 $132,779,986 Shareholders' equity per share All share and per share data adjusted for two-for-one stock split, $15,90 $14,80 2 " ' '.... ' ' ' ' i Reproduced with permission of the copyright.owner. Further reproduction prohibited without permission TO THE SHAREHOLDERS: drop to 12V2 cents in July. There was a turn-around in demand for both metals in the second half, and the price of lead increased to 13 cents per pound in Octo ber. The price of zinc held steady at 13V2 cents throughout the year. In January, 1969, prices of both metals were increased with zinc advancing from 13V2 cents to 14 cents per pound, and lead, in two steps, from 13 cents to 14 cents per pound, the level pre vailing at the start of 1968. Lead imports, which were at a record level during the first quarter of 1968, eased later in the year, and prices for both lead and zinc were firm in overseas markets at the year-end. The anticipated impact of new lead production coming from the new mines and smelters in Missouri was not apparent during 1968, although St. Joe's own lead smelting production ad vanced substantially. The strong demand for iron ore pellets in the first half of the year, resulting partly from inventory build Francis Cameron Chairman Lawrason Riggs III President ups in anticipation of a steel strike which did not mate rialize, fell off sharply in the second half. Consequently, For St. Joe, the year 1968 was a highly successful earnings from this source were lower than had been one. Earnings of $24,973,475 were up 16.7%, and forecast. earnings per average share outstanding increased During 1968: from $2.38 in 1967 to $2.89 in 1968. Zinc sales in St. Joe added to lead and zinc ore reserves in creased by 17.1% and lead sales by 25.5%. Sales of Southeast Missouri and New York State. zinc oxide also increased by 18.5%. Shaft sinking and construction continued at the In 1968 the Company's unconsolidated subsidiaries Balmat Mine in Upstate New York. Plans were com operating overseas earned the local currency equiva pleted for a 4,300 ton-per-day capacity mill to be con lent of $2,072,500 (based on December 31,1968 ex structed at the site of the new shaft, and the mill is change values) more than they paid to St. Joe as expected to come on stream in 1971, utilizing ore from dividends. Addition of the Company's approximate the mineralized area discovered in 1966 as well as 100% equity in these unremitted earnings on a pre from zinc ore reserves in the older mine areas now in distribution tax basis would increase the Company's production. 1968 earnings per average share outstanding to Construction commenced in July at the Herculan $3.08. The corresponding figure for 1967 was $2.49. eum Smelter on a new 300 ton-per-day sulfuric acid The above figures represent new highs for St, Joe plant which is scheduled to come into operation in in both production and earnings, and were achieved mid-1969. because our mines and plants, with the exception of The Company announced plans for the sinking of a Meramec, operated continuously during the year, and mine shaft in Missouri's New Lead Belt area, which because the 1967 start-up problems at the Hercu will make available production from higher grade ore laneum Smelter were largely overcome. reserves to offset declining production from the older, Demand for lead and zinc in the first half of the year lower grade mines. New shaft facilities completed at was fair, but there were indications, in early 1968, that the Indian Creek property in Missouri became opera supplies of both metals might exceed demand as the year progressed. Had it not been for the carry-over effect from lost production resulting from certain in tive during the last quarter of the year. The new iron oxide facility, Installed by Meramec Mining Company to produce high quality iron oxide for dustry work stoppages, St. Joe's sales might well have specialized non-steel uses, came into production dur been adversely affected. As it was, the lead price de ing the latter part of the year, and small tonnages clined from 14 cents to 13 cents in May with a further were shipped to users for testing on a commercial Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. basis. This tonnage is expected to increase as a result of laboratory and marketing efforts now being con ducted and from assessments being made by some of the major consuming manufacturers. ' * The mine and mill expansion program of Aguilar, in Argentina, which will increase capacity by about 75%, was substantially completed. * The open pit mine at Santander, in Peru, was phased out and mining switched to the underground operation which has been under development the past two years. All ore now comes from these new facil ities. Although tonnage milled will be somewhat lower,, the higher grade of the underground ore will permit maintenance of approximately the same level of zinc and lead concentrate production. ; New product development continued to receive at tention during the year, and although no decision was reached with regard to the establishment of commer cial production of wollastonite or of bentonite prod ucts, progress was made with the development of special lead alloys. Products using these new alloys have been made available for commercial scale tests by equipment manufacturers. The pace of the Company's exploration for new orebodies has also continued to increase, as has the activity in connection with development of new areas of interest for St. Joe. At its November meeting, the Board of Trustees au thorized an increase of five cents per share In the quarterly dividend rate, bringing payments for the year to $1.425 per share (adjusted for the two-for-one stock split). At this same meeting, the Board also au thorized a two-for-one stock split to be distributed in the form of a 100% stock dividend to shareholders of record at the close of business on November 29,1968. Several changes in the Company's financial groups were made early in 1968 following the death of James G. Colvin, Vice President and Treasurer, whose many contributions to St. Joe extended over a period of 39 years. D. Broward Craig, Vice President and Sec retary, was appointed Chief Financial Officer and Edward P. Merrell, formerly Assistant Treasurer, was elected Treasurer. At the same time, the responsibili ties of William L. Murphy, Jr., Comptroller and Assist- St, Joe's 1968 Board of Trustees prior to its November 19th meeting at which the dividend increase and two-for-one stock split were authorized. During 1968, the Board or Its Executive Committee met 15 times to act on this and other corporate matters. Trustees, from left to right, are: Guido F. Verbeck, Jr., Plato Malozemoff, Lawrason Riggs III, David R. Calhoun, Andrew Fletcher; center group Robert H. Ramsey, Warren E, Fon?i, Ell Whitney Debevolse, Joseph Pursglove, Jr.; tar right: Bernard F. Desloge, J. Wosley Me Afee, Wing L, Lew and Francis Cameron. Reproduced with permission of the copyright owner. Further reprodiiction prohibited without permission. ant Secretary, were expanded, and Frank J. Reidy, Assistant Comptroller, was assigned responsibility for introduction of the new management information systern, designed to improve our financial and operational accounting methods. On February 20, 1968, James L. Broadhead was elected Assistant Secretary. In September, Robert H. Crossley, Manager--Oxide Sales, died after a short illness. Mr. Crossley had been associated with St. Joe for twenty years and was responsible for much of the C.ompany's subcess with zinc oxides. Herbert J. Due, formerly Assistant Sales Manager, was appointed Manager--Oxide Sales in November. At the meeting of the Board of Trustees held January 21,1969, John R. Englehorn, Vice President--Marketing and Development, was elected a Trustee of the Company to succeed Robert H. Ramsey, who resigned as a Trustee and Executive Vice President for personal reasons. Mr. Ramsey, during his years with St. Joe, made significant contributions to the success of the Company in both North and South America. During 1968, St. Joe mining and smelting operations continued to improve in efficiency and in maintaining the high quality of products as detailed in our Review of Operations. All employees contributed to the results achieved, and their support and loyalty, as well as that of the shareholders, have been most gratitying to management, The year 1969 has started auspiciously with continuing strong demand for our principal products, lead and zinc, reflected in unusually low inventories of both materials in the hands of producers and consumers, Prices for metals are firm, and the prospects are favorable for another successful year in 1969. , It is our belief that the activities pictured in this report will further increase St. Joe's efficiency and capacity in the coming years, As announced in our February 25, 1969 letter to shareholders, the managements of St, Joseph Lead Company and The Hanna Mining Company have enteredintoa preliminary merger agreement, which will be subject to the authorization and approval of the boards and shareholders of the two companies. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. REVIEW OF OPERATIONS ZINC MINING The new project at the Balmat-Edwards Division in New York State progressed satisfactorily during 1968. The mine shaft reached a depth of 2,400 feet at year-end and work on sur face facilities proceeded as planned. The shaft is scheduled to bottom at 3,200 feet by the end of 1969. Current plans for surface facilities include offices for the Division's staff, now housed in one of the original buildings constructed in 1929. Thn new 4,300 tonper-day capacity mill will replace the existing 2,200 ton-per-day plant which cannot be further economically expanded to accommo date additional tonnages which will come from the new orebody. During 1968, the Division produced 124,473 tons of zinc concen trate. This, plus 21,666 tons from the Missouri mines, accounted for 46% of the concentrates used by our Zinc Smelting Division. When operating at capacity, the new facilities will raise this to 70%, sub stantially increasing the profitability of our zinc business. LEAD MINING The Southeast Missouri Mining and Milling Divi sion's production confiriued to rise during 1968 and lead concen trate output of the mills totalled 259,536 tons, up from 220,074 tons in 1967. Mill recoveries of lead and zinc continued to be excellent at the new Fletcher mill and a copper circuit was added permitting 6 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. BALMAT Carefully laid and efficiently executed plans associated with construction of the new mine shaft and surface facilities at New York's Balmat-Edwards Division keep the zinc project on schedule. The shaft jumbo, be low, used in the shaft sinking operation, will ultimately be drilling to 3,200 feet, although the orebody will be mined on several levels closer to the surface. The mineralized areas of this new orebody, elusive and irregular, demand a high degree of engineering competence to insure maximum profitability. Reproduced with permission of the copyright owner. ' Further reproduction prohibited without permission. 8 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. FLETCHER The rotary percussion jumbo performs one of the first func tions in Missouri's underground lead mining operations, drilling at many times the speed possible with earlier generations of equipment. St. Joe's mines and mining methods have changed markedly over the years in response to improved tech nology and advances in our knowledge of sub-surface rock characteristics. recovery of this by-product material as well. Copper produced by the Division totalled 18,849 tons of concentrate in 1968. Hoisting from the new 1,180-foot Goose Creek shaft commenced prior to year-end and the ore was trucked to the nearby Indian Creek mill for processing. The ore which this new shaft will make available will add substantially to the life of the Indian Creek operation. Division personnel continued their search for new and improved methods applicable to mining operations and in 1968 initiated use of a modified "down-the-hole-drill" developed by Howard V. Sears, Southeast Missouri's General Prospecting Superintendent. This de vice, which combines two operations formerly performed separately (casing placement and drilling), has substantially reduced the cost of underground core samples and has- radically increased the speed with which these operations can be completed. Underground improvements have been equally impressive. Tons of ore mined per - division - employee doubled in the last ten years. Tons of lead produced per-division-employee more than tripled over the same period, due to higher grade of ore mined as well as to operating efficiencies introduced. The mobile, large-capacity underground equipment, modified by the Division to give maximum performance at the Fletcher mine, permits production? rates almost six times the maximum level at tained with 1958's equipment and methods. Production at the Viburnum and Federal operations continued to be satisfactory and while improvements are more readily introduced in the newest mines and mills, ail facilities performed exceptionally well in 1968. 9 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Shaft sinking at Brushy Creek, ten miles north of Southeast Mis souri's Fletcher mine, is expected to commence in the fall of 1969 after site preparations have been completed. ZINC SMELTING The Zinc Smelting Division at Monaca, Penn sylvania, increased metal production to 206,213 tons from the 188,470 tons produced in 1967. Zinc oxide production advanced by 14.2%. In response to the successful introduction of its photo-conductive grade zinc oxide, the plant's capacity for production of French process oxide--produced from zinc metal--was increased. The change will increase the Division's ability to deliver tailor-made oxides to fit specific customer requirements. Another accomplishment of the Zinc Smelting Division's 1968 program was a further improvement of its customer service capa bilities along with production and product improvements, Research activities and laboratory facilities have been expanded and increas ingly geared to provide customer advice as well as to maintain high quality production standards. The technical group now utilizes a new pilot galvanizing facility to investigate hot-dip galvanizing _ problems and applications. Technical service activities have also been stepped up and provide any customer with direct assistance from St.Joe's metallurgical testing facilities and personnel.Tocom plete the "package" relationship, the Division maintains a secon dary and scrap materials service which permits the customer to receive assistance relating to these items. , LEAD SMELTING After experiencing start-up and operating diffi culties in 1967 in connection with its new and expanded facilities, 10 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Southeast Missouri Division people engineered many of the automated control features of the Fletcher mill and completed most of the computer pro gramming of the on-stream X-Ray Analyzer during 1968. This device controls and adjusts reagents used in the milling process by the rapid assay of the mill heads, tails and concentrate every 7% minutes. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 11 ZINC CASTING The automated casting and stacking equipment designed by Zinc Smelting Division engi neers, insures a smooth flow of zinc from its molten form to the shipping unit loads. The equipment's capabilities are now being tied to computerized inventory and order records, further improving the speed and reliability of shipments moving out of the plant. the Herculaneum, Missouri Smelter produced a record 170,799 tons of refined lead and lead alloys in 1968. The increased produc tion reflected improvements in all departments. Modification and improvement of equipment was completed and extensive personnel training was conducted to take advantage of the new plant's larger tonnage capacity. The sulfuric acid plant, scheduled for completion this spring, will utilize the waste gas from the new up-draft sintering, a process which desulfurizes lead concentrates for further treatment in the blast furnaces. Barge loading facilities on the Mississippi River will be constructed adjacent to the plant to permit barge transport of the acid along with rail and truck shipment. Sale of the acid pro duced will add to the profit margin of the Herculaneum plant. Early in 1969, the Smelter completed installation of a straight line casting machine, of greater efficiency than the wheel casting de vices presently in use. Purchases of United States Government stockpile lead, on which no profit can be realized, were negligible during 1968. INTERNATIONAL OPERATIONS AND EXPLORATION Compania Minera Aguilar, S. A., in Argentina's Jujuy Province,mined and milled approximately the same tonnage as in 1967 despite inter ruptions for installation of new equipment and additions to the mill. Mill production--51,069 tons of zinc concentrate and 31,139 tons of lead concentrate in 1968-was sold in the Argentine market to meet increasing needs of Argentine industry. The expansion involved the addition of secondary crushers, new ball mills and enlarged flotation equipment in the mill. Electrification T : 7 ' ' _ i ` l-' j ; 13 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. HERCULANEUM Herculaneum Smelter's railroad car dumper, a part of the recent expansion program, typifies the plant's use of large-scale material handling equipment. Concentrates from St. Joe mines and other raw materials are unloaded in a fraction of the time formerly required. 14 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. of the mine's main haulage system, a new primary crusher, auto matic dumping station and increased capacity of the aerial tramway completed the chain of expanded production components. The power plant, shops and community facilities are being similarly enlarged. Compania Sulfacid, S. A., an Argentine corporation with its plant near Rosario and 50% owned by Aguilar, proceeded with plans for expansion of its zinc refinery and sulfuric acid plant. A new roaster and an increase in electrolytic tank capacity will eventually double production. Operations of this plant and of Compania Metalurgica Austral's zinc smelter, located at Comodoro Rivadavia, and also partially owned by Aguilar, continued to be satisfactory during 1968. At Compania Minerales Santander, Inc., In Peru, the entire pro duction for the mill is now coming from the new underground mine. The 700-foot shaft and related facilities were completed during the year and 1968 production (most of which came from the open pit) totalled 69,199 tons of zinc concentrate and 8,514 tons of iead con centrate. Although the shift to underground increases mining costs, the operation continues to be economically attractive. / Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. * Exploration activities in both Peru and Argentina continued with accelerated use of the newest geological techniques. In Australia, St, Joseph Phelps Dodge Exploration Pty. Ltd., St, Joe's joint ven ture with Phelps Dodge Corporation, also continued its exploration activities. .: MERAMEC MINING COMPANY Iron ore pellet production of the Pea Ridge Mine decreased in 1968 to 1,674,034 net tons from the 2,017,530 tons produced in 1967. Cutbacks in steel production, re ducing second half demand for pellets and a plant-wide work stop page of 5V2 weeks in the late summer caused the production re ductions. The work stoppage involved disputes over local issues following steel industry agreement on the economic aspects of a new labor contract. Meramec's 1968 contribution to St, Joe earn ings was, therefore, reduced. Manufacturers of ferrites are continuing their programs evaluat ing Meramec's high purity iron oxide, and St. Joe's marketing staff is expanding product introduction into a number of other fields, such as magnetic printing inks and brake linings. It is estimated that 1969 shipments of the oxide will be much greater than in 1968. INTERNATIONAL OPERATIONS Expanded operations and ex ploration highlighted 1968 activi ties in South America. El Aguilar, the Argentine mine of Cia. Miners Aguilar, utilizes the new ore haulage equipment shown at right and the two-mile aerial tramway moves crushed ore from the mine to the mill, 2,000 feet below. Exploration activities, which started In Peru with aerial reconnaissance, frequently re quire ground follow-up by geolo gists working in remote areas, as shown at left. i 18 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ''-.I :.;!i : ii' 1 1 i ? 19 ST. JOE ZINC STATISTICS The basic elements of St, Joe's 1968 zinc production flow are shown below, each symbol representing 10,000 short tons. Column headings describe the major components of each element. This and the related ten year total tonnage statistics indicate the amount of purchased materials which now make up the smelter input. On completion of the new zinc mine and mill facilities, the purchased proportion of the input will be substantially reduced. Total tons of zinc concentrates from St. Joe mines and mills... ,.. plus total tons of purchased zinc bearing materials ... ... produce zinc and zinc oxide; totalled as "slab zinc equiva lent" In this column Additional purchases of slab zinc tonnages... ... are Included in total "slab zinc equivalent" sold. Sulfuric acid Is a major smelter by-product 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 81,292 128,762 111,598 104,080 99,914 117,473 140,284 147,860 147,361 146,139 121,611 166,613 123,882 170,281 153,053 214,772 229,958 250,413 231,283 264,818 128,670 148,788 141,309 153,968 174,089 193,444 202,657 216,910 212,338 233,454 20 44,334 26,730 8,511 4,709 6,726 15,538 21,058 9,874 1,118 2,591 ? 179,478 158,276 162,005 152,258 178,515 211,731 221,329 214,189 208,150 244,883 176,607 186,722 194,327 189,866 211,930 243,920 237,305 252,987 229,678 287,594 Reproduced with permission of the copyright qwher., Further reproduction prohibited without permission. The basic elements of St. Joe's lead metal production chain--from mine to finished metal-- jlow for I le year 1968, each symbol representing 10,000 short tons. Column headings describe the major of each element The related ten year total tonnage statistics shown below indicate the increasing St, Joe n ine production in the expanded smelter output. IP'SCF ***- il-- iWf" -- -MgiSli-Wm. rofil*l 'Opi*o ig&wtqr --t*--- -- Wr --3 jTjjwtgw 1 wwtrvw H5 ss"" ' vwwwwWCww 5W? jrgrMr'Sj; Srwl!W!lr ss-e* ' Jrvww* f , SrwSrS'w swtssrwsr grrtrs . * Wvv5v m tTrZs K*.A w-- j/jt Jy feh ja fi Total tons of lead concentrates from St. Joe mines and mills... ... plus total tons of purchased lead concentrates are .. . . processed at our smelter to produce pig lead and lead alloys Additional purchases . are Included In of finished pig lead total tons of pig tonnages lead sold in the year 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 143,167 147,879 139,817 86,375 113,801 170,704 189,962 189,225 224,233 262,079 8,300 101,478 13,656 . 98,447 4,927 116,148, 4,453 ; 77,156 2,773 81,319 3,528 117,643 4,086 ! 133,601 4,796 ; 118,354 4,489 124,480 3,396 175,717 50,306 33,209 17 10,357 8,724 9,135 69,301 18,996 13,989 164,084 131,852 108,447 112,857 96,692 125,177 142,243 175,762 160,115 210,172 21 of the copyright owner. Further reproduction prohibited without permission. ST, JOSEPH LEAD COMPANY and Consolidated Subsidiaries CONSOLIDATED BALANCE SHEET DECEMBER 31, 1968 AND 1967 ASSETS__________ Current Assets: 1 Cash ................. ........... ................. Marketable securities, at cost (market value, 1968, $24,629,773; 1967, $23,307,172) .. . Trade accounts receivable, less reserve, 1968 and 1967, $68,054 ................... . Other accounts receivable ......................... 1968 1967 $ 2,411,351 $ 3,105,082 25,653,924 23,249,984 16,091,064 1,486,936 16,344,966 1,613,498 Inventories (Note 1): Lead, zinc, etc................................................... .. Materials and supplies ............................... ............ Total Current Assets ....................... ... . 16,217,702 8,663,615 70,524,592 17,288,565 7,631,663 69,233,758 Investments and Advances (at cost or below): Fifty-percent owned companies (Note 2).................. Subsidiaries not consolidated (Note 3).................... Other .................................... ............................. Total Investments and Advances ..... 14,321,574 1,062,072 .......... 49,511 15,433,157 14,489,542 1,299,072 57,786 15,846,400 Property (Note 4): Ore reserves .................................. Land, buildings, plant and equipment...................... Mine development..................... Total............... Accumulated depletion, depreciation, and amortization ................. Property-Net ............................................. 44,573,153 138,527,664 11,995,063 195,095,880 108,955,488 86,140,392 43,334,998 132,168,843 10,236,282 185,740,123 104,940,947 80,799,176 Deferred Charges ....................................................... 3,939,969 4,237,410 Other Assets: Security deposits................................................ Cash and marketable securities--Fire Insurance Fund ............................. Other ................... Total Other Assets............... 3,108,589 399,557 783,674 4,291,820 962,666 419,694 602,382 1,984,742 Total................... ;........ See Notes to Financial Statements. $180,329,930 $172,101,486 22 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission LIABILITIES AND SHAREHOLDERS* EQUITY Current Liabilities: Accounts payable and accrued liabilities.................. Long-term debt due within one year (Note 5) ...... Federal income taxes................................................ Total Current Liabilities..................... 1968 1967 $ 11,573,717 1,000,000 6,832,893 19,406,610 $ 8,696,316 1,000,000 4,531,756 14,228,072 Long-Term Debt (Note 5).................................. ........ 13,666,669 14,666,669 Deferred Federal Income Taxes (Note 4)................... 10,511,317 9,204,604 Reserves for Self Insurance...................................... Shareholders' Equity (Notes 6 and 7); Capital Stock, par value $10 per share: Authorized--10,000,000 shares Shares 1968 1967 Issued................. 9,188,406 4,594,203 In Treasury............... 654,606 108, Outstanding ............. .. 8,533,800 4,485,638 1,077,939 91,884,067 6,546,067 85,338,000 1,222,155 45,942,033 1,085,653 44,856,380 Other Capital--representing principally excess of amount of stock dividends over par value of capital stock....................... ........ ....................... Retained Earnings.................................................... Total Shareholders' Equity..................... 13,084,182 37,245,213 135,667,395 20,675,895 67,247,711 132,779,986 ': ' Total .............. See Notes to Financial Statements, $180,329,930 $172,101,486 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, 1968 AND 1967 Net Sales............ Cost of Sales .,. Other Income: Dividends from unconsolidated subsidiaries Interest ......................................................... Royalty, Meramec Mining Company............ Sundry, net................................................... Total . 1968 $150,811,758 109,386,665 41,425,093 1967 $129,036,565 98,770,092 30,266,473 4,469,713 1,397,397 1,250,000 263,499 48,805,702 4,464,991 1,188,680 1,250,000 768,901 37,939,045 Expenses: . Administration and selling............................. Research and exploration .......................................... Depletion, depreciation and .amortization (Note 4) ., Interest............ .......................................................... Total....................................................... Income Before Income Taxes.................... .............. 3,691,600 982,100 6,029,037 680,625 11,383,362 37,422,340 3,310,558 1,060,336 5,625,792 725,625 10,722,311 27,216,734 STATEMENT OF CONSOLIDATED RETAINED EARNINGS FOR THE YEARS ENDED DECEMBER 31, 1968 AND 1967 Federal and State Income Taxes (Note 9): Current................ Deferred ................ Total __________ ... Net Income for the Year............................................... 11,142,152 1,306,713 12,448,865 4,334,315 1,478,533 5,812,848 $ 24,973,475 $ 21,403,886 Per Share-based upon average shares outstanding during the year (1967 adjusted for two-for-one stock split in 1968) ..................................................... ... $2.89 $2.38 1968 1967 Retained Earnings at Beginning of the Year (Note 4) $ 67,247,711 $ 58,412,174 Net Income for the Year..................................................... 24,973,475 21,403,886 Total. ., .;..............%.............................................. ..........9.2..,2>.2..*.1.,186 79,816,060 Cash Dividends Paid (1968, $1.425 per share; 1967, $1.40 per share-adjusted for two-for-one stock split in 1968)................................... ............... 12,308,873 12,568,349 Transfer to CapitalStock (Note 6)................................... 42,667,100 Total.......................................................... 54,975,973 12,568,349 Retained Earnings at End of the Year.............. See Notes to Financial Statements. $ 37,245,213 $ 67,247,711 24 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 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), determined substantially on the last-in, flrst-out (UFO) method. Materials and supplies are valued at average cost. 2. Filty-Percent Owned Companies Meramec Mining Company (50% owned by Bethlehem Steel Corporation) is a "cost company" whose income and expenses are included in the financial statements of its owners. At December 31, 1968 the Company's investment in Meramec amounted to $14,321,573. The Company's equity in the net assets of Mine La Mode Corporation (50% owned by National Lead Company) at December 31,1968 was $213,476 and its equity in the cor poration's net loss for the year then ended was $25,796 Mine La Motte is an inactive corporation and the Com pany's investment therein is carried at $1 3, Subsidiaries not Consolidated A balance sheet of Companta Minera Aguilar, SA. (99,9% owned) as of December 31, 1968 and a related statement of income lor the year then ended, both in sum mary form and stated in Argentine pesos, follow: BALANCE SHEET Argentine Pesos* Current Assets..................................... 2,740,709,897 Investments........................................... 201,160,072 Capital Assets....................................... 4,168,716,884 Deferred Charges............................ .... 12,337,618 Total Assets ................................ 7,122,924,471 Current Liabilities ................................. 805,689,845 Long Term Debt.................................. 708,685,515 Reserves ............................................... 367,732,177 Unearned Interest................................ 7,964,446 Shareholders' Equity.......................... 5,232,852,488 Total Liabilities and Shareholders' Equity................. 7,122,924,471 STATEMENT OF INCOME Argentine Pesos* Gross Profit from Sales..................... 2,867,376,611 Other Income....................................... 410,441,217 Total ............................................. 3,277.817,828 Expenses, Other Taxes, Depreciation, Depletion and other Deductions .. 723,836,537 Argentine income and Emergency Taxes, Net......................................... 504,892,046 Special Appropriation for Replace ment of Capital Assets................... 116,806,400 Total ............................................. 1,347,534,983 Net Income for the Year..................... 1,930,282,845 `The quoted free rate of exchange was approximately 345 pesos to the dollar at December 31,1968 and 1967. 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 depreciation and for special ap propriations out of income for the replacement of capital assets,from those generally accepted in the United States of America. The equity of the Company in the net Income of the Argentine subsidiary exceeded dividends received by 526,867,485 pesos Dividends received are recorded as they are converted into U S. dollars or U.S. dollar bonds of the Argentine government. The Company's investment m Aguilar is included at $1. The net assets of Compania Mmerales Santander, Inc. (wholly owned) and Its liability to the Company on deben tures totaled $5,741,324 (which exceeded the Company's investment by $4,679,253) at December 31, 1968 and its net income for the year then ended was $946,202, which exceeded dividends received by $480,950, 4. Property and Deferred Federal Income Taxes All properties are stated at cost except tor $17,000,000 of mining properties and mineral rights stated at appraised values, for which full allowances for depletion have been provided. Buildings, plants, and equipment (including the Com pany's share of Meramec capital assets) are depreciated on the straight-iine method over their estimated service lives. Mining properties and mineral rights are depleted on the unit-of-production method based on estimated recov erable ore reserves, Deferred Federal income taxes result ing from the use of accelerated depreciation methods for tax purposes aggregate $6,003,457 at December 31,1968. The Company , follows the practice of capitalizing mine develppment expenditures on new ventures for financial accounting purposes, and amortizing such expenditures on the straight-line or umt-of-production basis over the lives of the estimated recoverable ore reserves; for com putation of Federal income taxes such expenditures are charged against income as incurred. Effective January 1, 1968, mine development expenditures are included in property, and related deferred Federal Income taxes, ag gregating $5,179,094 at December 31, 1968, are provided in accordance with Accounting Principles Board Opinion No. 11. Previously, such mine development expenditures had been included in deferred charges net of estimated re lated tax savings: Also, effective January 1,1968, the Com pany provided for deferred Federal income taxes, aggre gating $671,234 at December 31, 1968, on its reserves for seif insurance. The change in accounting, which has been applied retroactively, did not materially affect net income Reproduced with permission of the copyright owner. Further reproduction prohibited without permission ST. JOSEPH LEAD COMPANY and Consolidated Subsidiaries for 1968; the financial statements for 1967 have been re for-one stock split in 1968, are as follows: stated and retained earnings at January 1, 1967 has been decreased by $781,699 to reflect this change. .. 5. Long-Term Debt Long-term debt at December 31, 1968, exclusive of amounts due within one year, comprises 45/2% Notes Payable to Bethlehem Steel Corporation, aggregating Date of Grant January 10,1964 ........... ...... July 8,1965 ................... September 14, 1966 ... .......... No. of Shares 16,890 80,550 152,590 Option Price $17.79 20.62 18.81 $13,666,669 due March 31, 1984. Under its Credit Agree At December 31,1968, there were 400,000 shares avail ment with Bethlehem Steel Corporation the Company has able for future grants. assigned royalties to be received from Meramec Mining 7. Treasury Stock Company, up to $1,000,000 annually, as collateral security In 1968, Other Capital was reduced bv $8,542,928 rep for the Notes. resenting the excess of cost over par value of 255,300 6. Stock Split and Stock Options shares of treasury stock purchased, On November 19,1968, the Board of Trustees declared 8. Retirement and Pension Plans a two-for-one stock split to be effected in the form of a ,; : The Company and its subsidiaries have several pension 100% stock dividend. On January 15, 1969, the Company plans covering substantially all of their employees, includ Issued 4,594,203 shares of Capita! Stock and transferred ing certain employees m foreign countries. The total pen $42,667,100, representing the par value of the shares is sion expense for the year was $1,696,749 The Company's sued (excluding 327,493 shares of Capital Stock added to policy Is to fund pension cost accrued. The plans are non Treasury) from Retained Earnings to Capital Stock The contributory and all past service costs have been funded. financial statements for 1968 give effect to this transaction. At December 31, 1968, deferred past service costs were Under the Company's Stock Option Incentive Plans $1,822,166, which amount Is to be amortized over the adopted m 1958 and 1967, options have been granted to period as allowed by the Internal Revenue Code, The officers and other key employees under 60 years of age to actuariatly computed value of the vested benefits for the purchase shares of the common stock of the Company at plans does not exceed the total of the pension fund. a price not less than the fair market value on the date the 9. Provision (or Federal Income Taxes options are granted. The options are exercisable in equal The provision for Federal Income Taxes is affected by annual instalments and any part of an option not exercised tax benefits (which may fluctuate from year to year) relat at the end of five years from the date of the grant becomes ing principally to statutory depletion and investment and void and available tor future grants. foreign tax credits. During the year 1968, options lor 36,752 shares were 10. Subsequent Event exercised. Other Capital was increased by $951,215 repre Subsequent to December 31, 1968, the managements senting the excess of the aggregate option price over the of St Joseph Lead Company and The Hanna Mining Com par value of the shares issued, pany have entered into a preliminary merger agreement Outstanding options at December 31, 1968, adjusted to subject to the approval of the boards and shareholders of reflect the three-for-two stock split in 1964 and the two-. the two Companies. ACCOUNTANTS' 0PIN,0N HASKINS & SELLS To the Shareholders of St, Joseph Lead Company :; We have examined the consolidated balance sheet of St. Joseph Lead Company and its consolidated subsidiaries as of December 31, 1968 and the related statements of consolidated income and retained earnings for the year then ended, Our examination was made in accordance with generally accepted auditing standards, and accordingly Included such tests of the accounting records and such other auditing procedures as we considered necessary In the circumstances Inouropimon.the accompanying consolidated balance sheet and statements of consolidated income and retained earnings present fairly the financial position of St. Joseph Lead Company and its consolidated subsidiaries at December 31,1968 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 24,1969 HASKINS & SELLS 26 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission TEN YEAR SALES--This chart indicates the dollar contribution to total sales made by St, Joe's various major product groups over a ten year period. "Other" includes silver, cadmium, matte, agricultural limestone, sales involving government stockpile metal, and concentrates of lead, zinc and copper, sold as such. (IN MILLIONS OF DOLLARS) ISO ; >i:''7. '. , '/`"i'.P j !''-i ' . :,!\ 7 V ;'v\' -'V ' V -'* - " * * ** *, . . * .* ^, , -*: :/. V ;. ` :: :.* ' v^T*,. `, rX * * v ' * ' ,* . / . r*tA .''V' * - *. i* .' 7"* '' V- ' '::> : ,xxxv. ; ..A ,.v.Xi:.fXAU*; :- ?: : .' ;*; ' - '*'*' ' J i... +*'> X '' . ; : Jr-'- vV.M ?- V V' .XX .*;; ',']/*.. . - * *V' v ' V ' ."* .** V. :*.'-.f 'A'"vte iSpfliSiA; . .^ ^ ^ ''''' ^ A' ^ '' ' ...................... " .......... .. .................ii/A A*( y ''A*7lr 1959 1961 1962 1963 1964 / ; `;;*XvV,,v''fx^^ * v , r-yH'v"\ ^ ;y:X;V ' ~ . * ','7' v'- v ;v>ir<f.-X^ ' 1m96e5c 1* n9e66e intfj ZINC OXIDE I | IRON ORE PELLETS 833 SULFURIC ACID $1) r^Tl OTHER |<H' 27 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST* JOSEPH LEAD COMPANY and Consolidated Subsidiaries COMPARATIVE FINANCIAL REVIEW 1959-1968 Average MeSal Prices (Cents per pound) . Lead, New York..................... Zinc, St. Louis........................ 1968 1967 13.212 13.500 14.000 13.843 1968 15.100 14.500 Sales ............................................ Cost of Sales....................,... Gross profit Other Income: Dividends................................ Interest and other (net) ....... Royalty-Meramec Mining Company .. Total Expenses: Administration, selling and , research ...................... ........ Strike and shutdown expense .. Mine development and exploration*1* . .............. ,... Depletion, depreciation and amortization .............. Interest................................. U.S, and foreign income taxes , Total $150,811,758 109,386,665 41,425,093 4,469,713 1,660,896 1,250,000 48,805,702 4,332,484 227,722 113,494 6,029,037 680,625 12,448,865 23,832,227 $129,036,565 98,770,092 30,266,473 4,523,185 1,899,387 1,250,000 37,939,045 4,153,225 -- 217,669 5,625,792 725,625 5,812,848 16,535,159 Net Income Before Extraordinary Items Extraordinary Items .................... 24,973,475 21,403,886 -- $145,109,767 112,595,456 32,514,311 5,560,331 2,480,559 1,250,000 41,805,201 3,732,142 -- 686,490 4,517,848 853,906 9,573,341 19,363,727 22,441,474 -- Net Income....................................... $ 24,973,475 $ 21,403,886 $ 22,441,474 (*> Includes mine developmen! 1959-1962. In sub sequent years such expenditures were capi talized and the stated figures represent explora tion charges. Adjusted to reflect the 10% stock dividend paid December 21, 1962, the three-for-two stock split effected September 30, 1964 and the two-for-one split as of November 29, 1968. (3) 1968-1968 stated at aver age shares outstanding during the year; prior years at shares outstand ing at end of the year. Per Share Outstanding(2>.......... Percent Gross Profits from Sales Applicable to: Lead .................... . Zinc .................... .......... ..... Iron .......................................... Total Assets.......... .................. Current Assets........................... Current Liabilities .........,.. Current Ratio (to 1)............ .... Shareholders' Equity: Amount.................................... Per share outstanding at end of year<2> $2.89`3* $2.383> $2.46*' 47 40 48 48 5 12 $180,329,930 70,524,592 19,406,610 3.63 $172,101,486 69,233,758 14,228,072 4.87 36 52 12 $166,766,587 68,814.652 17,768,371 / 3.85 $135,667,395 $15.90 $132,779,986 $14.80 $124,390,204 $13.67 28 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 1965 1964 1963 / , ; . 1962 1961 1960 1959 16.000 14.500 $136,156,901 96,979,226 39,177,675 13.596 13.568 $109,509,039 83,481,096 26,027,943 11.137 11.997 9.631 11.625 10.871 11.542 $ 75,598,525 57,932,666 17,665,859 $ 67,981,883 58,106,248 \ 9,875,635 $ 71,008,301 58,063,668 12,944,633 11.948 12.946 $ 79,970,908 69,062,502 10,908,406 12.211 11.448 $ 86,611,677 72,804,292 13,807,385 1,982,553 2,300,335 1,250,000 44,710,563 4,455,494 1,779,855 1,250,000 33,513,292 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 3,478,610 402,011 4,980,737 1,121,922 12,132,229 22,115,509 22,595,054 14,610 $ 22,609,664 $2.47 3,209,101 300,990 4,602,631 1,378,073 6,223,069 15,713,864 17,799,428 2,332,715 $ 20,132,143 $2.21 2,657,207 1,566,461 290,406 3,897,981 975,111 4,089,719 13,476,885 8,833,466 -- $ 8,833,466 $.97 2,542,330 1,844,107 2,770,751 3,538,848 1,142,997 461,300 12,300,333 2,844,548 1,532,241 2,272,135 2,304,202 3,180,607 1,136,735 1,827,226 10,720,905 6,351,414 -- $ 4,376,789 $ 6,351,414 $.49 $.70 2,322,476 2,880,829 3,766,920 1,172,042 333,898 10,476,165 2,975,658 _ $ 2,975,658 $.33 2,355,219 316,272 1,850,551 3,334,648 1,154,307 1,501,169 10,512,166 6,304,279 $ 6,304,279 $.70 50 41 29 6 26 26 42 43 59 71 94 74 74 58 7 $160,465,864 74,347,349 17,129,015 4.31 $155,502,831 70,071,803 14,222,293 4.91 $124,616,808 45,422,385 11,352,128 3.98 $117,897,308 46,823,524 8,753,333 ' 5.35 ' $120,298,163 54,787,270 11,276,912 4.86 $116,545,876 45,178,167 7,485,650 6.04 $117,549,738 50,098,983 7,456,767 6,72 $116,784,519 $12.78 $104,443,842 $11.45 $ 91,584,022 $10.08 $ 85,427,260 $ 9.53 $ 83,758,992 $ 9.34 $ 80,121,775 $ 8.94 $ 79,832,839 $ 8,91 29 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST|JSiPH!ilIftGOMPANf and Consolidated Subsidiaries WORKING CAPITAL ANALYSIS 1959-1968 1968 1967 1966 Source Net Income................................... Provision for Depreciation, Depletion and Amortization . Long-term Borrowing ............... Sale of Investments........... .. Other, Net..................................... ...... ** Total $ 24,973,475 6,029,037 -- -- -- $ 31,002,512 $ 21,403,886 $ 22,441,474 5,625,792 -- -- --. $ 27,029,678 4,517,848 '- 4,000 1,251,360 $ 28,214,682 Use : ! Dividends Paid: Shares outstanding at end of year* .. Per share* .............................. Amount........ ...................... .... ,,,,,,, Capital Expenditures .1....... ,..... Investments ................................ ........... * Repayment of Debt ..,............... , V . * , , Purchase of Company stock ... * , . , . Other, Net..................................... **.*.. Total Working Capital at End of Year 8,533,800 $1,425 $ 12,308,873 10,303,990 -- 1,000,000 11,095,929 181,424 $ 34,890,216 $ 51,117,982 8,971,276 $1.40 $ 12,568,349 8,316,355 484,871 1,000,000 507,813 192,885 $ 23,070,273 $ 55,005,686 8,992,534 $1,325 $ 12,050,896 15,711,952 217,411 3,550,000 2,856,476 -- $ 34,386,735 $ 51,046,281 * Adjusted to reflect the 10% stock dividend paid December 21, 1962, the three-for-two stock spill0 GENERAL STATISTICS 1959-1968 1968 1967 1966 Number of Shareholders......... .......... United States Employees: Number .............. ............. Salary and wage costs......... ..... . Pension and Retirement Plans: Members ............. .. Contributions........... i............. Pensioners..................................... Pension Payments.................... . . i . Deferred Profit Sharing Plan: Eligible employees ........................ Contributions ........... ...................... . 20,472 4,032 $ 33,983,700 2,796 2,006,421 1,133 $ 781,714 746 $ 754,960 18,585 3,959 $ 32,038,839 2,796 $ 1,967,573 1,097 $ 700,907 758 $ 649,042 16,204 3,986 $ 30,098,896 2,910 $ 1,154,212 1,081 $ 624,676 675 $ 679,585 30 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 1965 1964 1963 1962 1961 I960 1959 $ 22,609,664 4,980,737 -- 5,724,028 603,060 $ 33,917,489 $ 20,132,143 4,602,631 18,000,000 197,213 1,834,237 $ 44,766,224 $ 8,833,466 3,897,981 --' --: 376,409 $ 13,107,856 $ 4,376,789 $ 6,351,414 3,538,848 3,000,000 ~ 1-- $ 10,915,637 3,180,607 -- 8,549,758 160,211 $ 18,241,990 $ 2,975,658 3,766,920 --' -- -- $ 6,742,578 $ 6,304,279 3,334,648 5,000,000 -- 1,468,425 $ 16,107,352 9,141,130 $1.15 $ 10,503,786 10,265,587 607,863 11,171,429 -- $ 32,548,665 $ 57,218,334 9,120,156 $.83 $ 7,588,828 8,314,200 2,376,800 4,707,143 -- $ 22,986,971 $ 55,849,510 9,084,651 $.414 $ 3,763,404 3,186,963 5,866,947 4,290,476 -- $ 17,107,790 $ 34,070,257 8,968,146 $.303 $ 2,717,622 3,750,014 4,634,987 4,290,476 .... 962,705 $ 16,355,804 $ 38,070,191 8,967,163 $.303 $ 2,717,247 2,445,243 3,554,516 3,707,143 _ $ 12,424,149 $ 43,510,358 8,966,833 $.303 $ 2,717,222 5,912,656 1,891,994 850,000 320,405 $ 11,692,277 $ 37,692,517 8,963,533 $.303 $ 2,716,222 9,283,290 620,879 850,000 -- $ 13,470,391 $ 42,642,216 ected September 30,1964 and the two-for-one split as of November 29,1968. i 1965 11,792 3,820 $ 27,900,722 2,911 $ 2,384,779 1,047 $/ 606,84 i 666 $ 636,135 1964 9,107 3,769 $ 24,926,760 2,788 $ 1,314,415 1,023 $ 537,621 669 $ 590,768 1963 1962 1961 8,772 8,986 9,740 3,621 $ 20,813,527 3,774 $ 19,781,411 3,871 $ 22,598,389 2,628 , 2,777 2,789 $ 814,733 $ 939,017 $ 944,152 937 > 920 886 $ 496,194 $ 457,701 $ 434,517 687 683 702 $ 297,113 : V ' --. $ 189,966 1960 10,651 4,171 $ 24,803,687 2,690 $ 1,049,557 819 $ 355,782 698 -- 1959 11,812 4,263 $ 22,670,522 2,622 $ 780,000 822 $ 331,550 682 $ 187,892 31 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 Executive Office: 250 Park Avenue, New Vork, N.Y. 10017 BOARD OF TRUSTEES (Year Elected) EXECUTIVE OFFICERS MANAGER OF EXPLORATIONS David R. Calhoun, Chairman, St. Louis Union Trust Company, St. Louis, Missouri (1957) Francis Cameron*, Chairman oi the Board (1953} Ell Whitney Debevolse*, Partner, Debevotse, Plimpton, Lyons & Gates, New York, N.Y. (1954) Bernard F. Desloge, President, Minerva Oil Company, St. Lou/s, Missouri (1953) John R. Englehomt, Vice President-Marketing & Development (1969) Warren E. Fenzi, Executive Vice President, Phelps Dodge Corporation, New York, N.Y. (1967) Andrew Fletcher, Honorary Chairman and Chairman oi the Finance Committee (1921) Wing L. Lew, Executive Vice President, Cia. Mmera Aguilar, S.A., Argentina (1968) Plato Malozemoff*, President and Chairman, Newmont Mining Corporation, New York, N.Y. (1961) J. Wesley Me Afee, Chairman, Union Electric Company, Si. Louis, Missouri (1954) Joseph Pursglove, Jr,, Consultant, Sewickley, Pa, (1959) Robert H. Ramsey*!, Executive Vice President (1964) , Lawrason Riggs ill*, President (1963) Guido F. Verbeck, Jr,, Senior Vice President, Morgan Guaranty Trust Company oi New York, New York, N.Y. (1961) , `Membor of Executive Committee fRasttmed January 10, 1969 ^Elected January 21,1969 Francis Cameron Chairman Lawrason Riggs Hi . President Robert H. Ramsey! Executive Vice President Malcolm Bonynge Vice President D. Broward Craig Wee President & Secretary tRosIgned January 31, 1969 Norman H. Donald, Jr, John R, Englehorn Vice President Marketing & Development Edward P. Merrell Treasurer William L. Murphy, Jr Comptroller & Assistant Secretary James L. Broadhead Assistant Secretary Frank J. Reidy Assrstant Comptroller UNITED STATES DIVISION MANAGERS Mines ; ,./ ,.; . Lawrence W, Casteel, Southeast Missouri Mark E. Riley, Balmai-Edtiards, New York Smelters John W, Sherman, Herculaneum, Missouri Charles D. Henderson,- Josephtowni Pennsylvania : .^ Cia. Miners Aguilar, S,A., Argentina Cia. Mineralea Santander, Inc., Peru Meramec Mining Company General Counsel Transfer Agent Auditors Registrar Wing L. Lew, .Executive Vico President John E. Loser, Managing Director Clinton L. Miller, Wee President & General Manager Robert G. Peels, Manager Debevotse, Plimpton, Lyons & Gates, 320 Park Avenue, New York, N.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, 111 Wall Street, New York, N,Y. 10015 \ , - ; printed in u.s.a 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.