[DESCRIPTION]  Selected Consolidated Financial Data

<TABLE>
<CAPTION>


                    SELECTED CONSOLIDATED FINANCIAL DATA

Years ended December 31          2000           1999           1998
                                 _____________  _____________  _____________
<S>                              <C>            <C>            <C>

Total operating revenue        $    741,489.00    615,875.00      590,173.00

Net Earnings                        856,581.00     651,010.00     517,419.00
Net Earnings per common share             1.58           0.92           0.73
Cash dividends per common share           0.88            .63           0.25
Total Assets                   $  8,584,503.00  12,272,117.00  11,583,087.00
</TABLE>
<TABLE>
<CAPTION
Years ended December 31          1997           1996
                                 _____________  _____________
<S>                              <C>            <C>

Total operating revenue        $  1,106,425.00   1,159,008.00

Net Earnings                        777,838.00     790,090.00
Net Earnings per common share             1.80           1.07
Cash dividends per common share           0.75           0.93
Total Assets                   $ 11,005,414.00  11,037,478.00
</TABLE>



<PAGE>
[DESCRIPTION]   Management's Discussion and Analysis

       MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION
                        & RESULTS OF OPERATIONS


    The financial condition of the Company continued very strong during
2000, as it was in 1999 and 1998.  The liquidity of the Company continues
to be high, as is evidenced by a favorable ratio of current assets to
current liabilities, and the fact that a significant portion of the
Company's net worth is represented by liquid assets.  During the first
quarter of 2000, the Company consummated the resolution of litigation and
other disputes with former Director Beekman Winthrop and other
Stockholders as described in prior reports, pursuant to an Agreement of
Settlement and Release executed by all parties, including the Company, on
February 29, 2000.  The terms of the settlement included the purchase by
the Company of all stock of the Company owned by the plaintiffs totaling
97,231 shares, for a purchase of $33.50 per share, or aggregate
consideration of $3,257,238.50 which the Board of Directors of the
Company, after careful consideration, concluded was a fair price under
the circumstances based upon a review of the Company's financial
condition and considering the costs and risks of continued litigation.
The source of funds used were available liquid assets of the Company
previously invested in U. S. Government Agency obligations.  The
liquidity of the Company was somewhat reduced as a result of this
transaction, but overall the Company continues to enjoy very high
liquidity, with current assets greatly exceeding current liabilities and
a significant portion of its net worth being represented by liquid assets.

   Total operating revenue was up approximately 20% in 2000 over 1999,
and was up slightly  in 1999 over 1998. In both cases the increases were
due primarily to substantially increased revenues from oil and gas
royalties. The increases in each current period under comparison were
due to material increases in the price of oil and gas during the current
periods over the prior periods, coupled with increased production.
Revenue from oil and other mineral lease rentals and bonuses was down
materially in 2000 from 1999 because there were fewer new leases made
in the current period with income recognizable in that period.

    Nonoperating income was up significantly in 2000 over 1999 and also
up in 1999 over 1998.  The increases in the current periods under
comparison were due primarily to increased investment income resulting
from increased capital gains realized on sales of equity securities
during the current periods, and somewhat higher rates of return on
temporary fixed income investments during the year 2000, partially offset
by the reduced size of the portfolio of fixed income investments during
the current period, due to the sizeable redemption of treasury stock in
early 2000 described above.  The increase in nonoperating income during
the current periods was also partially offset by decreased gain on
sales of real estate in 2000 from 1999 and in 1999 compared to 1998,
with the decreases in each current period under comparison occurring
because of less excess surface land being sold in the current periods.

    General and administrative expenses were down somewhat in the year
2000 from 1999 but up significantly in 1999 over 1998.  Those expenses
were higher in 1999 than either of the other two years under comparison
because of higher expenses incurred during 1999 due to significant fees
paid to outside service providers, particularly legal fees in connection
with the litigation resulting in the stock redemption described above and
also fees paid to financial advisers and appraisers of the Company's real
estate and mineral assets.  Also, reduced state franchise tax expense in
1998 contributed to a lower amount of such expenses for that year.

    As shown in Note 5 to the accompanying Consolidated Financial
Statements, income taxes were up significantly in 2000 over the years
1999 and 1998, but with that expense item in 1998 exceeding 1999.  The
increase in 2000 over the other two years under comparison was primarily
due to increased earnings before income taxes.

    The accompanying Consolidated Statements of Earnings shows a loss
from operations of discontinued food operations in 1998, and no gain or
loss from that category in 1999 or 2000.  Losses from that source in the
earlier year resulted from the operations of Beekman's Deli Systems,
Limited Liability Company, a limited liability company in which the
Company is a majority member (hereinafter "Beekman's").  Beekman's
operated fast food bagel and delicatessen facilities in four different
locations throughout the country; however, sales and profitability of
this operation were disappointing and all of the operations were
terminated by September 1, 1998 and since then Beekman's has had no
active operations.  As is described in more detail in Note 8 to the
accompanying Consolidated Financial Statements, as a result of the
operations during 1998, losses were incurred in that year, however since
the operations were terminated later in that year, there were no
activities in 1999 or later years, and thus no income or loss during
those later years.  As a result of the disposal of assets in 1998 as
described above, after recognition of the substantial earlier losses
and a write-down of the carrying value of the assets of this venture in
1997 for book purposes, the Company realized a nominal gain on the sale
of assets, and that gain is reflected in the item captioned "Gain on
Disposal of Food Operations" under discontinued operations for 1998.
One reason for the improvement in net earnings in 2000 and 1999 from 1998
is that the Company did not sustain losses from this operation in the
later years.

    There was a net decrease in cash and cash equivalents in 2000 and an
increase in cash and cash equivalents in 1999 and 1998.  The most
significant component of the changes between the years reflects the
difference in cash provided by investment activities, specifically
differences in the amount of proceeds from sale of equity securities and
purchases of equity securities  during each such period, differences in
the amount of proceeds from matured/called investment debt securities
which were reinvested, the purchase of other investments during the
current year, and decreased proceeds from sales of land, somewhat offset
by significantly higher net earnings in the current periods under
comparison and decreased deferred oil lease bonuses in the current
periods.  There was a significant cash expenditure in the first quarter
of 2000 with respect to the treasury stock purchase described above,
offset by proceeds from the sale of investment debt securities.  Cash
used in the payment of dividends was approximately the same in 2000 and
1999, even though there were fewer shares outstanding in 2000 due to the
redemption of treasury stock described above because the per share
dividends paid in 2000 were greater than in 1999 as discussed below.
Dividends paid in 1998 were significantly less than either of the other
two years under comparison because the per share dividends paid during
that year were less.  Additional cash was received by the Company in
2000 as proceeds from the exercise of stock options by a member of the
Board of Directors who received options under the Director Non-qualified
Stock Option Plan approved by the Stockholders in April of 1995.

    Because of the nature of the Company's business, inflation has little
impact on its expenses.  It is not anticipated that changes in the price
of coal will have much impact on the income of the Company because of the
continuing low activity of coal extraction and because the Company's
existing coal leases have fixed prices per ton and are not affected by
market changes.  Substantially increased prices could cause an increase
in the amount of coal mined, however.  As is indicated in the discussion
above concerning revenue from oil and gas royalties, changes in the
price of oil do have an impact on the income of the Company, and at
times it can be dramatic.  The continuing rise in the price of oil in
2000 over 1999, and in 1999 over 1998 contributed to increased revenue
from that source.  Continuing rise in gas prices could contribute to
increased revenue from that source in the future.

    Statement of Financial Accounting Standards ("SFAS") No. 133,
Accounting for Derivative Instruments and Hedging Activities, was issued
by the Financial Accounting Standards Board in June, 1998.  SFAS No. 133
standardizes the accounting for derivative instruments.  Under the
Statement, entities are required to carry all derivative instruments in
the statement of financial condition at fair value.  The Company was
required to adopt SFAS No. 133 as amended by January 1, 2001.  The
adoption of SFAS No. 133 will not have a material impact on the financial
position or results of operations of the Company.

    Concerning quantitative and qualitative disclosures concerning market
risk, the primary market risk exposures of the Company relate to changes
in interest rates, changes in equity security prices, and changes in
certain commodity prices.  The Company's exposure to market risk for
changes in interest rates relates solely to its fixed income investment
portfolio which consists of U. S. Government Agency securities.  All
such securities are held-to-maturity and have original maturities of
less than one year.  The Company does not use derivative financial
instruments to hedge interest rates on its fixed income investment
securities.  The Company's exposure to market risk for changes in equity
security prices relates solely to its marketable equity investment
portfolio which consists primarily of common stocks of domestic,
publicly held enterprises. The Company's exposure to market risk
for changes in commodity prices relates to changes in the prices of
coal, oil and natural gas and the effect thereof on its royalties and
rentals relating to coal deposits and mineral rights as discussed above.
The Company does not use derivative commodity instruments to hedge its
commodity risk exposure.

    As described in detail to the President's Letter to this report, and
in Note 12 to the accompanying Consolidated Financial Statements, the
Board of Directors in January of 2001 declared a one share for one share
stock dividend which was distributed on February 13, 2001 to
Stockholders of record on January 29, 2001. All per share and share
data in the Consolidated Financial Statements accompanying this report, and
related notes, have been restated to reflect the stock dividend for all
periods presented.  The Company paid cash dividends of $0.50 per share
in 1998 (restated to $0.25 per share after the stock dividend), $1.25
per share in 1999 (restated to $0.625 per share after the stock dividend)
and $1.75 per share for 2000 (restated to $0.875 per share after the
stock dividend).  As stated in the President's Letter to this report,
the Board of Directors of the Company has stated its present intention to
continue paying a regular quarterly dividend of $0.25 per share (after
giving effect to the stock dividend) should the operating results and
financial condition of the Company continue to justify it.

    As contemplated in prior reports, the Company has not experienced any
systems interruptions of its operations or the operations of third
parties with which it does business affecting the Company's operations
from the commencement of year 2000 with respect to the utilization of
existing computer application software programs and operating systems.

    The Company has no specific commitment for material capital
expenditures at the present time.  Management does, however, continue to
actively pursue other business opportunities which may result in a more
productive deployment of its assets and ultimately increase earnings.
During the last year, the Company reviewed three possible business
acquisition opportunities in depth.  One potential acquisition was
declined as not suitable at the present time, and the other two
opportunities continue to be investigated,  but no firm decision on
these acquisitions has been made as yet.  Management also continues to
aggressively pursue development of increased income from its oil and gas
properties and to attempt to lease more of its mineral properties in
order to generate more rental, bonus and royalty income.  Three new oil
and gas leases were entered into in 1998 on the Company's property in
Sebastian County, Arkansas and there is currently gas production under
all three leases.  Two new oil and gas leases were made in 1999, one in
Pittsburg County, Oklahoma and another in Sebastian County, Arkansas.
During the year 2000, three new oil and gas leases were made-one in
San Jacinto County, Texas, one in Sebastian County, Arkansas, and one
in Craig County, Oklahoma.  Small bonuses were received at the time
each lease was entered into.

    This Management's Discussion & Analysis of Financial Condition &
Results of Operations and other sections of this report contain
forward-looking statements that are based on current expectations,
estimates, forecasts and projections about the business segments in
which the Company operates, management's beliefs, and assumptions made
by management.  These and other written or oral statements that
constitute forward-looking statements may be made by or on behalf of the
Company.  These statements are not guarantees of future performance and
involve certain risks, uncertainties, and assumptions that are difficult
to predict.  Therefore, actual outcomes and results may differ materially
from what is expressed or forecast in such forward-looking statements.
The Company does not, by including this statement, assume any obligation
to review or revise any particular forward-looking statement referenced
herein in light of future events.

<PAGE>

[DESCRIPTION]   Market for Registrant's Common Equity


    The range of bid and asked quotations and the dividends paid on
such securities for each quarterly period during the Company's two most
recent years are as follows:

<TABLE>
<CAPTION>
                                               2000
                               Bid              Asked          Dividends
                           Low     High      Low     High      Per Share
                           _____   _____     _____   _____     _________
<S>                        <C>     <C>       <C>     <C>       <C>
1st Quarter              $ 14.50   17.00      .00     .00    $  .00
2nd Quarter                14.50   16.50      .00     .00       .25
3rd Quarter                13.63   15.50      .00     .00       .00
4th Quarter                14.00   16.00      .00     .00       .625

For Year                 $ 13.63   17.00      .00     .00    $  .875
</TABLE>
<TABLE>
<CAPTION>
                                               1999
                               Bid              Asked          Dividends
                           Low     High      Low     High      Per Share
                           _____   _____     _____   _____     _________
<S>                        <C>     <C>       <C>     <C>       <C>
1st Quarter              $ 15.13   15.13      .00     .00    $  .00
2nd Quarter                15.13   15.50      .00     .00       .25
3rd Quarter                15.13   15.75      .00     .00       .00
4th Quarter                14.50   15.25      .00     .00       .375

For Year                 $ 14.50   15.75      .00     .00    $  .625
</TABLE>