e of subside depreciation adjustm parent company 195o 1951 1952 1953 1954 1955 1956 1957 1958 195 of bank loans if such procedure then appears to be in the best interests of the company net worth or shareholders equity continued to increase during 1959 and at the year end as shown on the accompanying audited financial statements amounted to 27,876,243 or 15.60 per share this compares with 25,488,725 or 14.32 a share for the preceding year these figures are based upon carrying our investments in sub sidiary and affiliated companies on our statements at actual cost with no adjustment or credit shown for our share of the increase in the respective net worths of these com panies since initial acquisition or investment a valuation of our investments in other companies based on market value in case of lucky me of 4,625 per share and our share of the net worths for other companies would approximate 31,861,000 or 28,324,000 more than 4 is indicated on the accompanying financial statements the tabulation of this figure follows and it is exclusive of any increases in value over cost relating to real estate mineral reserves or other assets owned or controlled in part by the company although such assets are believed to have marketable values substantially in excess of cost 1955 195s lucky me uranium corporation . . . 16,829,000 16,829,000 other mining construc tion and land devel opment companies . 15,032,000 18,973,000 indicated value cost .... . 31,861,000 30,802,000 . 3,537,000 2,902,000 . 28,324,000 27,900,000 employees through its program of employee benefits the company continues to provide protection to employees by means of the group insurance plan and the retirement plan a net charge of 620,000 was made against profits from 1959 operations to fulfill the company's commitment to the employees retirement plan based on profit sharing according to the plan's contribution formula actually a maximum allowable cash disbursement equal to 15 of participating payroll will be paid to the plan for the 1959 fiscal year in the amount of 532,600 during the year 647 permanent employees and their families were covered under the group insurance plan which affords coverage for hospital surgical medical polio and accident benefits the face amount of life insurance in effect under the plan amounted to 5,477,000 on policies ranging from 2,000 to 20,000 653 claims for hospital and medical benefits totaling 49,881 were paid to em ployees and their families the 1959 cost for this coverage was 137,381 or 212.34 for each employee covered also in early 1959 thirteen additional employees were offered the privilege of purchasing shares of the com pany on the installment basis accordingly 6,800 shares were sold to such individuals at a price of 40.00 a share the market price when the sale was consummated other financial comments depreciation and amortization charges against parent company income amounted to 2,008,183 in 1959 and 2,215,355 in 1958 in both years the declining balance method was used which resulted in charges of 348,453 in 1959 and 575,629 in 1958 over amounts that would have been charged on the straight line basis federal income tax returns for the parent and its subsidiaries are filed separately by individual companies rather than on a consolidated basis returns for the parent have been examined through 1956 adequate reserves in the opinion of the management have been established for any additional federal income tax liability which may be ultimately assessed the year ahead in considering the prospects for 1960 there are certain adverse developments that must be weighed earnings from uranium will decline because operations for the full year will be under the contracts with the atomic energy commission that provide for lower prices and lower volume than were in effect for the greater part of the preceding year a second factor is the limited profit potentialities of our existing work backlog in construction thirdly in a period of tight money it may be difficult to duplicate the excellent results achieved in our land development activi ties during 1959 despite these handicaps that must be overcome we anticipate improved earnings from our iron ore and shipping activities if no further work stoppage in the steel industry is experienced on balance we are hopeful that during the year we may continue to report earnings that will approach and perhaps surpass the excel lent results achieved in the year just ended if we are to achieve this objective we must continue to enjoy the same loyal and efficient support of our employees that character ized their performance during the past year and for which we are duly grateful we report with profound regret the death of mr william h harris on november 28 1959 mr harris a business and community leader in utah and a director of our company was an untiring and devoted person who made a substantial contribution to the growth and guid ance of the company through the years sincerely marriner s eccles chairman of the board december 15 1959 allen d christensen president