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                                                                      EXHIBIT 12


                            SUMMIT SECURITIES, INC.
               COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                         AND PREFERRED STOCK DIVIDENDS

  The ratio of adjusted earnings to fixed charges and preferred stock
dividends was computed using the following tabulations to compute adjusted
earnings and the defined fixed charges and preferred stock dividends.

<TABLE>
<CAPTION>
 
 
                                                   Year Ended September 30
                               ------------------------------------------------------------- 
                                                   (Dollars in Thousands)
                                   1998        1997         1996        1995         1994
                               -----------  -----------  ----------  ----------   ----------  
<S>                            <C>          <C>          <C>          <C>          <C>
 
Income (loss) before
 extraordinary item             $2,524,027   $1,851,240  $1,244,522  $  587,559   $  264,879   
Add:                                                                                           
 Interest                        4,778,443    4,325,528   3,741,095   3,251,334    2,527,945   
 Taxes (benefit) on income         544,034      126,905     237,951     239,707      140,407   
                               -----------  -----------  ----------  ----------   ----------    
Adjusted earnings               $7,846,504   $6,303,673  $5,223,568  $4,078,600   $2,933,231   
                               ===========  ===========  ==========  ==========   ==========   
Preferred stock dividend                                                                       
 requirements                   $  498,533   $  446,560  $  333,606  $  309,061   $    2,930
Ratio factor of income after                                                                   
 provision for income taxes                                                                    
 to income before provision                                                                    
 for income taxes                       82%          94%         84%         71%          65%
Preferred stock dividend                                                                       
 factor on pretax basis            605,971      477,196     397,387     435,297        4,508         
Fixed charges                                                                                  
 Interest                        4,778,443    4,325,528   3,741,095   3,251,334    2,527,945   
                               -----------   ----------  ----------  ----------   ----------    

Fixed charges and
 preferred stock
 dividends                      $5,384,414   $4,802,724  $4,138,482  $3,686,631   $2,532,453 
                               ===========  ===========  ==========  ==========   ==========
Ratio of adjusted earnings
 to fixed charges and
 preferred stock dividends            1.46         1.31        1.26        1.11         1.16
                               ===========  ===========  ==========  ==========   ==========
 
</TABLE>