----

----

| Delaware                                                       | 51-0102492                              |
|----------------------------------------------------------------|-----------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |

| 4 Morris Street, Port Jefferson Station, NY | 11776      |
|---------------------------------------------|------------|
| (Address of principal executive offices)    | (Zip Code) |

----

----

----

CA

| Part I - Financial Information                                             | 3                                                                                                                                                     |
|----------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                       |                                                                                                                                                  |   |
| Item I. Condensed Financial Statements:                                    |                                                                                                                                                  |
|                                                                       |                                                                                                                                                  |   |
|                                                                       | Consolidated Balance Sheets - January 31, 2011 and October 31, 2010                                                                                   | 4 |
|                                                                       |                                                                                                                                                  |   |
|                                                                       | Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three Month Periods ended January 31, 2011 and 2010                     | 6 |
|                                                                       |                                                                                                                                                  |   |
|                                                                       | Consolidated Statements of Changes in Stockholders’ Equity for the One Year and Three Month Periods ended October 31, 2010 and January 31, 2011 | 8 |
|                                                                       |                                                                                                                                                  |   |
|                                                                       | Consolidated Statements of Cash Flows for the Three Month Periods ended January 31, 2011 and 2010                                                     | 11 |
|                                                                       |                                                                                                                                                  |   |
|                                                                       | Notes to Consolidated Financial Statements                                                                                                            | 13 |
|                                                                       |                                                                                                                                                  |   |
| Item II. Management’s Discussion and Analysis of Financial Condition | 26                                                                                                                                                    |
|                                                                       |                                                                                                                                                  |   |
|                                                                       | Liquidity and Capital Resources                                                                                                                       | 34 |
|                                                                       |                                                                                                                                                  |   |
|                                                                       | Other Factors                                                                                                                                         | 35 |
|                                                                       |                                                                                                                                                  |   |
| Item III. Quantitative and Qualitative Disclosures About Market Risk       | 35                                                                                                                                                    |
|                                                                       |                                                                                                                                                  |   |
| Item IV. Controls and Procedures                                           | 36                                                                                                                                                    |
|                                                                       |                                                                                                                                                  |   |
| Part II Other Information                                                  | 37                                                                                                                                                    |
|                                                                       |                                                                                                                                                  |   |
|                                                                       | Items 1 through 6                                                                                                                                     | 38 |
|                                                                       |                                                                                                                                                  |   |
|                                                                       | Signatures and Certifications                                                                                                                         | 39 |

----

Index

PART 

----

Index

CAN

|                                                                                                                                                   |   | JAN 31,     |      |   | OCT. 31,    |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|-----------|--------|-------------|--------|
|                                                                                                                                                   |   | 2011        |      |   | 2010        |   |
|                                                                                                                                                   |   | (UNAUDITED) |      |   | (UNAUDITED) |   |
| ASSETS:                                                                                                                                                |   |        |      |   |        |   |
|                                                                                                                                                   |   |        |      |   |        |   |
| CURRENT ASSETS:                                                                                                                                        |   |        |      |   |        |   |
|                                                                                                                                                   |   |        |      |   |        |   |
| CASH AND CASH EQUIVALENTS                                                                                                                              |   | $           | 242,287   |   |        | $      | 510,361 |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
| NOTES AND ACCOUNTS RECEIVABLE, NET OF AN ALLOWANCE FOR DOUBTFUL ACCOUNTS OF $ZERO AT BOTH JANUARYY 31, 2011 AND OCTOBER 31, 2010,                      |   |        | 46,158    |   |        |   | 138,879 |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
| STOCKYARDS INVENTORY                                                                                                                                   |   |        | 5,044     |   |        |   | 14,608 |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
| PREPAID EXPENSES                                                                                                                                       |   |        | 29,177    |   |        |   | 12,461 |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
| TOTAL CURRENT ASSETS                                                                                                                                   |   |        | 322,666   |   |        |   | 676,309 |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
| NON-CURRENT ASSETS:                                                                                                                                    |   |        |      |   |        |   |   |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
| PROPERTY ON OPERATING LEASES, NET OF ACCUMULATED DEPRECIATION OF $477,949 AND $472,399 AT JANUARY 31, 2011 AND OCTOBER 31, 2010, RESPECTIVELY          |   |        | 1,385,857 |   |        |   | 1,391,407 |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
| PROPERTY USED IN STOCKYARD OPERATIONS, NET OF ACCUMULATED DEPRECIATION OF $196,957 AND $191,857 AT JANUARY 31, 2011 AND OCTOBER 31, 2010, RESPECTIVELY |   |        | 527,572   |   |        |   | 532,672 |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
| ART INVENTORY, NET OF A VALUATION ALLOWANCE OF $396,522 AT BOTH JANUARY 31, 2011 AND OCTOBER 31, 2010                                                  |   |        | 100,000   |   |        |   | 100,000 |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
| OTHER ASSETS:                                                                                                                                          |   |        |      |   |        |   |   |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
| PROPERTY HELD FOR DEVELOPMENT OR RESALE                                                                                                                |   |        | 52,250    |   |        |   | 52,250 |   |
| RESTRICTED CASH – LETTER OF CREDIT                                                                                                               |   |        | 140,000   |   |        |   | 140,000 |   |
| RESTRICTED CASH - TRANSIT INSURANCE                                                                                                                    |   |        | 44,926    |   |        |   | 26,000 |   |
| DEPOSITS AND OTHER ASSETS                                                                                                                              |   |        | 0         |   |        |   | 0 |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
|                                                                                                                                                   |   |        | 237,176   |   |        |   | 218,250 |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
|                                                                                                                                                   |   | $           | 2,573,271 |   |        | $      | 2,918,638 |   |

----

Index

|                                                                                                                                                                                                                                                                                         |   | JAN 31, 2011 |        |   | OCT.31, 2010 |     |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-------------|--------|--------------|----------|
|                                                                                                                                                                                                                                                                                         |   | (UNAUDITED)  |        |   | (UNAUDITED)  |     |
|                                                                                                                                                                                                                                                                                         |   |         |        |   |         |     |
| LIABILITIES & STOCKHOLDERS' EQUITY:                                                                                                                                                                                                                                                      |   |         |        |   |         |     |
|                                                                                                                                                                                                                                                                                         |   |         |        |   |         |     |
| CURRENT LIABILITIES:                                                                                                                                                                                                                                                                         |   |         |        |   |         |     |
| ACCOUNTS PAYABLE AND ACCRUED EXPENSES                                                                                                                                                                                                                                                        |   | $            | 203,588     |   |         | $        | 293,827 |   |
| SALARIES AND INTEREST PAYABLE - OFFICERS                                                                                                                                                                                                                                                     |   |         | 114,675     |   |         |     | 175,000 |   |
| ACCRUED PROFESSIONAL FEES                                                                                                                                                                                                                                                                    |   |         | 50,998      |   |         |     | 55,000 |   |
| INCOME TAXES PAYABLE                                                                                                                                                                                                                                                                         |   |         | 10,000      |   |         |     | 10,000 |   |
| TOTAL CURRENT LIABILITIES                                                                                                                                                                                                                                                                    |   |         | 379,261     |   |         |     | 533,827 |   |
|                                                                                                                                                                                                                                                                                         |   |         |        |   |         |     |   |   |
| NON-CURRENT LIABILITIES:                                                                                                                                                                                                                                                                     |   |         |        |   |         |     |   |   |
| LONG-TERM PENSION LIABILITY                                                                                                                                                                                                                                                                  |   |         | 723,206     |   |         |     | 869,676 |   |
| PREFERRED STOCK DIVIDEND PAYABLE                                                                                                                                                                                                                                                             |   |         | 187,550     |   |         |     | 169,550 |   |
| REAL ESTATE TAXES PAYABLE                                                                                                                                                                                                                                                                    |   |         | 35,682      |   |         |     | 44,543 |   |
| TOTAL NON-CURRENT LIABILITIES                                                                                                                                                                                                                                                                |   |         | 946,438     |   |         |     | 1,083,769 |   |
|                                                                                                                                                                                                                                                                                         |   |         |        |   |         |     |   |   |
| LONG-TERM DEBT, RELATED PARTY                                                                                                                                                                                                                                                                |   |         | 847,000     |   |         |     | 847,000 |   |
|                                                                                                                                                                                                                                                                                         |   |         |        |   |         |     |   |   |
| COMMITMENTS AND CONTINGENCIES                                                                                                                                                                                                                                                                |   |         |        |   |         |     |   |   |
|                                                                                                                                                                                                                                                                                         |   |         |        |   |         |     |   |   |
| STOCKHOLDERS' EQUITY:                                                                                                                                                                                                                                                                        |   |         |        |   |         |     |   |   |
|                                                                                                                                                                                                                                                                                         |   |         |        |   |         |     |   |   |
| PREFERRED STOCK, $0.01 PAR VALUE: 10,000,000 SHARES AUTHORIZED; 9,102,655 SHARES ISSUED AND OUTSTANDING AT JANUARY 31, 2011 AND OCTOBER 31, 2010, RESPECTIVELY AND AGGREGATE LIQUIDATION PREFERENCE OF $10 PER SHARE FOR $ 91,026,550 AT JANUARY 31, 2011 AND OCTOBER 31, 2010, RESPECTIVELY |   |         | 91,027      |   |         |     | 91,027 |   |
|                                                                                                                                                                                                                                                                                         |   |         |        |   |         |     |   |   |
| COMMON STOCK, $0.01 PAR VALUE: 10,000,000 SHARES AUTHORIZED; 5,313,794 SHARES ISSUED AND 4,326,929 SHARES OUT- STANDING AT JANUARY 31, 2011 AND OCTOBER 31, 2010, RESPECTIVELY                                                                                                               |   |         | 53,138      |   |         |     | 53,138 |   |
|                                                                                                                                                                                                                                                                                         |   |         |        |   |         |     |   |   |
| ADDITIONAL PAID-IN CAPITAL                                                                                                                                                                                                                                                                   |   |         | 28,322,341  |   |         |     | 28,322,341 |   |
|                                                                                                                                                                                                                                                                                         |   |         |        |   |         |     |   |   |
| ACCUMULATED DEFICIT                                                                                                                                                                                                                                                                          |   |         | (15,195,016 | )      |         |     | (15,114,546 | ) |
|                                                                                                                                                                                                                                                                                         |   |         |        |   |         |     |   |   |
| 986,865 SHARES OF COMMON STOCK HELD IN TREASURY, AT COST                                                                                                                                                                                                                                     |   |         | (11,003,545 | )      |         |     | (11,003,545 | ) |
|                                                                                                                                                                                                                                                                                         |   |         |        |   |         |     |   |   |
| COMPREHENSIVE INCOME: PENSION VALUATION RESERVE                                                                                                                                                                                                                                              |   |         | (1,867,373  | )      |         |     | (1,894,373 | ) |
|                                                                                                                                                                                                                                                                                         |   |         | 400,572     |   |         | 454,042_ |   |
|                                                                                                                                                                                                                                                                                         |   |         |        |   |         |     |   |   |
|                                                                                                                                                                                                                                                                                         |   | $            | 2,573,271   |   |         | $        | 2,918,638 |   |

----

Index

C

|                                    |   | 2011        |     |   | 2010        |    |
|-----------------------------------------|--------|-------------|----------|--------|-------------|---------|
|                                    |   | (UNAUDITED) |     |   | (UNAUDITED) |    |
| REAL ESTATE OPERATIONS:                 |   |        |     |   |        |    |
|                                    |   |        |     |   |        |    |
| REAL ESTATE REVENUES:                   |   |        |     |   |        |    |
| SALE OF REAL ESTATE                     |   |        | 0        |   |        |    | 0 |   |
| OUTSIDE REAL ESTATE RENT                |   |        | 70,244   |   |        |    | 72,544 |   |
| EXCHANGE BUILDING RENTAL INCOME         |   |        | 0        |   |        | 3,686   |   |
|                                    |   |        | 70,244   |   |        | 76,230  |   |
|                                    |   |        |     |   |        |    |   |   |
| REAL ESTATE EXPENSES:                   |   |        |     |   |        |    |   |   |
| COST OF REAL ESTATE SOLD                |   |        | 0        |   |        |    | 0 |   |
| LABOR, OPERATING AND MAINTENANCE        |   |        | 2,330    |   |        |    | 6,456 |   |
| DEPRECIATION AND AMORTIZATION           |   |        | 5,550    |   |        |    | 5,550 |   |
| TAXES OTHER THAN INCOME TAXES           |   |        | 3,750    |   |        |    | 5,450 |   |
| GENERAL AND ADMINISTRATIVE              |   |        | 2,550    |   |        | 4,800   |   |
|                                    |   |        | 14,180   |   |        | 22,256  |   |
|                                    |   |        |     |   |        |    |   |   |
| INCOME FROM REAL ESTATE OPERATIONS      |   |        | 56,064   |   |        | 53,974  |   |
|                                    |   |        |     |   |        |    |   |   |
| STOCKYARD OPERATIONS:                   |   |        |     |   |        |    |   |   |
|                                    |   |        |     |   |        |    |   |   |
| STOCKYARD REVENUES:                     |   |        |     |   |        |    |   |   |
| YARD HANDLING AND AUCTION               |   | $           | 506,073  |   |        | $       | 494,423 |   |
| FEED AND BEDDING INCOME                 |   |        | 39,898   |   |        |    | 27,700 |   |
| RENTAL & OTHER INCOME               |   |        | 32,846   |   |        | 136,258 |   |
|                                    |   |        | 578,817  |   |        | 658,381 |   |
|                                    |   |        |     |   |        |    |   |   |
| STOCKYARD EXPENSES:                     |   |        |     |   |        |    |   |   |
| LABOR AND RELATED COSTS                 |   |        | 205,645  |   |        |    | 264,743 |   |
| OTHER OPERATING AND MAINTENANCE         |   |        | 107,166  |   |        |    | 140,057 |   |
| FEED AND BEDDING EXPENSE                |   |        | 28,806   |   |        |    | 24,849 |   |
| DEPRECIATION AND AMORTIZATION           |   |        | 5,100    |   |        |    | 3,368 |   |
| TAXES OTHER THAN INCOME TAXES           |   |        | 20,215   |   |        |    | 39,954 |   |
| GENERAL AND ADMINISTRATIVE              |   |        | 103,601  |   |        | 77,996  |   |
|                                    |   |        | 470,533  |   |        | 550,967 |   |
|                                    |   |        |     |   |        |    |   |   |
| INCOME (LOSS) FROM STOCKYARD OPERATIONS |   |        | 108,284  |   |        | 107,414 |   |
|                                    |   |        |     |   |        |    |   |   |
|                                    |   |        |     |   |        |    |   |   |
| GENERAL AND ADMINISTRATIVE EXPENSE      |   |        | (205,860 | )      |        |    | (211,946 | ) |
|                                    |   |        |     |   |        |    |   |   |
|                                    |   |        |     |   |        |    |   |   |
| (LOSS) INCOME FROM OPERATIONS           |   |        | (41,512  | )      |        |    | (50,558 | ) |

----

Index

|                                                 |   | 2011        |      |   | 2010        |   |
|------------------------------------------------------|--------|-------------|-----------|--------|-------------|--------|
|                                                 |   | (UNAUDITED) |      |   | (UNAUDITED) |   |
|                                                 |   |        |      |   |        |   |
| OTHER (EXPENSE) INCOME:                              |   |        |      |   |        |   |
| INTEREST & OTHER INCOME                          |   |        | 217       |   |        |   | 126 |   |
| INTEREST EXPENSE                                     |   |        | (21,175   | )      |        |   | (24,830 | ) |
| ART SALES AND OPERATIONS                             |   |        | 0         |   |        | 0      |   |
|                                                 |   |        |      |   |        |   |   |   |
|                                                 |   |        | (20,958   | )      |        |   | (24,704 | ) |
|                                                 |   |        |      |   |        |   |   |   |
| (LOSS) INCOME BEFORE PROVISION FOR                   |   |        |      |   |        |   |   |   |
| INCOME TAXES                                         |   |        | (62,470   | )      |        |   | (75,262 | ) |
| PROVISION FOR INCOME TAXES                           |   |        | 0         |   |        | 0      |   |
|                                                 |   |        |      |   |        |   |   |   |
| NET (LOSS) INCOME                                    |   |        | (62,470   | )      |        |   | (75,262 | ) |
|                                                 |   |        |      |   |        |   |   |   |
| OTHER COMPREHENSIVE (LOSS) INCOME:                   |   |        |      |   |        |   |   |   |
|                                                 |   |        |      |   |        |   |   |   |
| MINIMUM PENSION LIABILITY ADJUSTMENT                 |   |        | 27,000    |   |        | 27,000 |   |
|                                                 |   |        |      |   |        |   |   |   |
| COMPREHENSIVE (LOSS) INCOME                          |   | $           | (35,470   | )      |        | $      | (48,262 | ) |
|                                                 |   |        |      |   |        |   |   |   |
| (LOSS) EARNINGS PER COMMON SHARE:                    |   |        |      |   |        |   |   |   |
|                                                 |   |        |      |   |        |   |   |   |
| NET (LOSS) INCOME                                    |   | $           | (62,470   | )      |        | $      | (75,262 | ) |
|                                                 |   |        |      |   |        |   |   |   |
| LESS PREFERRED STOCK DIVIDEND                        |   |        | (18,000   | )      |        |   | (18,000 | ) |
|                                                 |   |        |      |   |        |   |   |   |
| (LOSS) INCOME AVAILABLE TO COMMON STKDERS            |   | $           | (80,470   | )      |        | $      | (93,262 | ) |
|                                                 |   |        |      |   |        |   |   |   |
| NET (LOSS) INCOME PER COMMON SHARE BASIC AND DILUTED |   | $           | (0.02     | )      |        | $      | (0.02 | ) |
|                                                 |   |        |      |   |        |   |   |   |
| AVERAGE SHARES OUTSTANDING – BASIC AND DILUTED |   |        | 4,326,929 |   |        |   | 4,326,929 |   |

----

Index

CAN

|                      |   | COMMON STOCK   |      |   | PREFERRED STOCK |   |
|---------------------------|--------|----------------|-----------|--------|-----------------|--------|
|                      |   | NUMBEROFSHARES |      |   | AMOUNT          |   |   | NUMBEROFSHARES |   |   | AMOUNT |   |
|                      |   |           |      |   |            |   |   |   |   |   |   |   |
| BALANCE, OCTOBER 31, 2009 |   |           | 5,313,794 |   |            | $      | 53,138 |   |   |   | 9,102,655 |   |   | $ | 91,027 |   |
| NET INCOME                |   |           | 0         |   |            |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
| PREFERRED STOCK DIVIDEND  |   |           | 0         |   |            |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
| MINIMUM PEN. LIAB. ADJ.   |   |           | 0         |   |            |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
|                      |   |           |      |   |            |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE, OCTOBER 31, 2010 |   |           | 5,313,794 |   |            | $      | 53,138 |   |   |   | 9,102,655 |   |   | $ | 91,027 |   |
| NET LOSS                  |   |           | 0         |   |            |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
| PREFERRED STOCK DIVIDEND  |   |           | 0         |   |            |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
| MINIMUM PEN. LIAB. ADJ.   |   |           | 0         |   |            |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
|                      |   |           |      |   |            |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE, JANUARY 31, 2011 |   |           | 5,313,794 |   |            | $      | 53,138 |   |   |   | 9,102,655 |   |   | $ | 91,027 |   |

|                      |   | ADDITIONALPAID-INCAPITAL |       |   | ACCUMULATEDDEFICIT |   |        | COMPREHENSIVLOSS |   |   | TREASURYSTOCK,AT COST |   |
|---------------------------|--------|--------------------------|------------|--------|--------------------|--------|-------------|------------------|--------|--------|-----------------------|--------|
|                      |   |                     |       |   |               |   |        |             |   |   |                  |   |
| BALANCE, OCTOBER 31, 2009 |   | $                        | 28,322,341 |   |               | $      | (15,068,051 | )                |   | $      | (1,915,985            | )      |   | $ | (11,003,545 | ) |
| NET INCOME                |   |                     | 0          |   |               |   | 10,505      |             |   |   | 0                     |   |   |   | 0 |   |
| PREFERRED STOCK DIVIDEND  |   |                     | 0          |   |               |   | (57,000     | )                |   |   | 0                     |   |   |   | 0 |   |
| MINIMUM PEN. LIAB. ADJ.   |   |                     | 0          |   |               |   | 0           |             |   |   | 21,612                |   |   |   | 0 |   |
|                      |   |                     |       |   |               |   |        |             |   |   |                  |   |   |   |   |   |
| BALANCE, OCTOBER 31, 2010 |   | $                        | 28,322,341 |   |               | $      | (15,114,546 | )                |   | $      | (1,894,373            | )      |   | $ | (11,003,545 | ) |
| NET LOSS                  |   |                     | 0          |   |               |   | (62,470     | )                |   |   | 0                     |   |   |   | 0 |   |
| PREFERRED STOCK DIVIDEND  |   |                     | 0          |   |               |   | (18,000     | )                |   |   | 0                     |   |   |   | 0 |   |
| MINIMUM PEN. LIAB. ADJ.   |   |                     | 0          |   |               |   | 0           |             |   |   | 27,000                |   |   |   | 0 |   |
| BALANCE, JANUARY 31, 2011 |   | $                        | 28,322,341 |   |               | $      | (15,195,016 | )                |   | $      | (1,867,373            | )      |   | $ | (11,003,545 | ) |

----

Index

CA

|                                                                                      |   | JAN 2011 |     |   | JAN 2010 |   |
|-------------------------------------------------------------------------------------------|--------|----------|----------|--------|----------|--------|
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                     |   |     |     |   |     |   |
| NET (LOSS) INCOME                                                                         |   | $        | (62,470  | )      |     | $      | (75,262 | ) |
|                                                                                      |   |     |     |   |     |   |   |   |
| ADJUSTMENTS TO RECONCILE NET LOSS TO NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES: |   |     |     |   |     |   |   |   |
|                                                                                      |   |     |     |   |     |   |   |   |
| DEPRECIATION AND AMORTIZATION                                                             |   |     | 10,650   |   |     |   | 8,918 |   |
|                                                                                      |   |     |     |   |     |   |   |   |
| GAIN ON SALES OF REAL ESTATE                                                              |   |     | 0        |   |     |   | 0 |   |
|                                                                                      |   |     |     |   |     |   |   |   |
| MINIMUM PENSION LIABILITY ADJUSTMENT                                                      |   |     | 27,000   |   |     |   | 27,000 |   |
|                                                                                      |   |     |     |   |     |   |   |   |
| DECREASE (INCREASE) IN ASSETS:                                                            |   |     |     |   |     |   |   |   |
|                                                                                      |   |     |     |   |     |   |   |   |
| NOTES AND ACCOUNTS RECEIVABLE                                                             |   |     | 92,721   |   |     |   | (159,932 | ) |
|                                                                                      |   |     |     |   |     |   |   |   |
| STOCKYARDS INVENTORY                                                                      |   |     | 9,564    |   |     |   | 13,736 |   |
|                                                                                      |   |     |     |   |     |   |   |   |
| PREPAID EXPENSES                                                                          |   |     | (16,716  | )      |     |   | (15,659 | ) |
|                                                                                      |   |     |     |   |     |   |   |   |
| RESTRICTED CASH – LETTER OF CREDIT                                                  |   |     | 0        |   |     |   | 0 |   |
|                                                                                      |   |     |     |   |     |   |   |   |
| RESTRICTED CASH – TRANSIT INSURANCE                                                 |   |     | (18,926  | )      |     |   | (10,220 | ) |
|                                                                                      |   |     |     |   |     |   |   |   |
| INCREASE (DECREASE) IN LIABILITIES:                                                       |   |     |     |   |     |   |   |   |
|                                                                                      |   |     |     |   |     |   |   |   |
| ACCOUNTS PAYABLE AND ACCRUED EXPENSES                                                     |   |     | (90,239  | )      |     |   | 80,097 |   |
|                                                                                      |   |     |     |   |     |   |   |   |
| PENSION PLAN PAYABLE                                                                      |   |     | 0        |   |     |   | 0 |   |
|                                                                                      |   |     |     |   |     |   |   |   |
| PAYABLE TO EXECUTIVE OFFICERS                                                             |   |     | (60,325  | )      |     |   | 110,720 |   |
|                                                                                      |   |     |     |   |     |   |   |   |
| ACCRUED PROFESSIONAL FEES                                                                 |   |     | (4,002   | )      |     |   | (56,176 | ) |
|                                                                                      |   |     |     |   |     |   |   |   |
| LONG-TERM PENSION LIABILITY                                                               |   |     | (146,470 | )      |     |   | 0 |   |
|                                                                                      |   |     |     |   |     |   |   |   |
| REAL ESTATE TAXES PAYABLE                                                                 |   |     | (8,861   | )      |     | 27,286 |   |
|                                                                                      |   |     |     |   |     |   |   |   |
| TOTAL ADJUSTMENTS                                                                         |   |     | (205,604 | )      |     | 25,770 |   |
|                                                                                      |   |     |     |   |     |   |   |   |
| NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES                                       |   |     | (268,074 | )      |     |   | (49,492 | ) |

----

Index

|                                                   |   | JAN 2011 |     |   | JAN 2010 |   |
|--------------------------------------------------------|--------|----------|----------|--------|----------|--------|
|                                                   |   |     |     |   |     |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                  |   |     |     |   |     |   |
|                                                   |   |     |     |   |     |   |
| PROCEEDS FROM SALES OF REAL ESTATE                     |   |     | 0        |   |     |   | 0 |   |
| COSTS RELATING TO SALES OF REAL ESTATE                 |   |     | 0        |   |     |   | 0 |   |
| CAPITAL EXPENDITURES                                   |   |     | 0        |   |     |   | 0 |   |
|                                                   |   |     |     |   |     |   |   |   |
| NET CASH PROVIDED BY INVESTING ACTIVITIES              |   |     | 0        |   |     |   | 0 |   |
|                                                   |   |     |     |   |     |   |   |   |
| CASH FLOWS PROVIDED BY (USED) IN FINANCING ACTIVITIES: |   |     |     |   |     |   |   |   |
|                                                   |   |     |     |   |     |   |   |   |
| PROCEEDS FROM LONG-TERM DEBT OBLIGATION                |   |     | 0        |   |     |   | 0 |   |
| REPAYMENT OF LONG-TERM DEBT OBLIGATION                 |   |     | 0        |   |     |   | 0 |   |
|                                                   |   |     |     |   |     |   |   |   |
| NET CASH PROVIDED BY (USED) IN FINANCING ACTIVITIES    |   |     | 0        |   |     |   | 0 |   |
|                                                   |   |     |     |   |     |   |   |   |
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS   |   |     | (268,074 | )      |     |   | (49,492 | ) |
|                                                   |   |     |     |   |     |   |   |   |
| CASH AND CASH EQUIVALENTS AT BEGN OF YEAR              |   |     | 510,361  |   |     |   | 154,624 |   |
|                                                   |   |     |     |   |     |   |   |   |
| CASH AND CASH EQUIVALENTS AT END OF YEAR               |   | $        | 242,287  |   |     | $      | 105,132 |   |

|                                                                  |   | JANUARY 31, |   |
|-----------------------------------------------------------------------|--------|-------------|--------|
|                                                                  |   | 2011        |   |   | 2010 |   |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:                    |   |        |   |   |   |   |
|                                                                  |   |        |   |   |   |   |
| CASH PAID DURING THE YEAR FOR:                                        |   |        |   |   |   |   |
|                                                                  |   |        |   |   |   |   |
| INTEREST                                                              |   | $           | 21,175 |   |   | $ | 24,830 |   |
| INCOME TAXES                                                          |   | $           | 0      |   |   | $ | 0 |   |
|                                                                  |   |        |   |   |   |   |   |   |
| SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: |   |        |   |   |   |   |   |   |
|                                                                  |   |        |   |   |   |   |   |   |
| PREFERRED STOCK DIVIDENDS                                             |   | $           | 18,000 |   |   | $ | 18,000 |   |

----

Index

CA

| 1. | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION |
|----|---------------------------------------------------|

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Index

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Index

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Index

| 2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
|----|--------------------------------------------|

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Index

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Index

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Index

| 3. | INTERIM FINANCIAL STATEMENTS |
|----|------------------------------|

| 4. | STOCK OPTION PLAN |
|----|-------------------|

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Index

| 5. | BORROWINGS |
|----|------------|

|                                                          |   | Jan 31, |   |   | October 31, |   |
|---------------------------------------------------------------|--------|---------|--------|--------|-------------|--------|
| ($ 000's Omitted)                                             |   | 2011    |   |   | 2010        |   |
| Variable rate mortgage notes due May 15, 2012 - related party |   | $       | 847    |   |        | $      | 847 |   |
| Less -- current maturities                                    |   |    | 0      |   |        |   | 0 |   |
| Long-term debt                                                |   | $       | 847    |   |        | $      | 847 |   |

|                       |   | Total  |   |   | Less Than1 year |   |   | 1 - 3Years |   |   | 3 - 5Years |   |   | MoreThan5Yrs. |   |
|----------------------------|--------|--------|--------|--------|-----------------|--------|--------|------------|--------|--------|------------|--------|--------|---------------|--------|
|                       |   |   |   |   |            |   |   |       |   |   |       |   |   |          |   |
| Pension Plan Liability (a) |   | $      | 723    |   |            | $      | 26     |       |   | $      | 500        |   |   | $             | 197    |   |   | $ | 0 |   |
| Mortgage Notes Payable (b) |   |   | 847    |   |            |   | 0      |       |   |   | 847        |   |   |          | 0      |   |   |   | 0 |   |
|                       |   | $      | 1,570  |   |            | $      | 26     |       |   | $      | 1,832      |   |   | $             | 197    |   |   | $ | 0 |   |

|   | (a) | See Note 16. |
|--------|-----|--------------|

|   | (b) | The mortgage notes are due May 15, 2012 and are held entirely by the Company’s Chief Executive Officer and members of his family. These notes carry annual interest of 10% and are collateralized by substantially all of Canal’s property, the stock of certain subsidiaries and its art inventories. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Index

| 6. | RESTRICTED CASH |
|----|-----------------|

| 7. | INCOME TAXES |
|----|--------------|

| 8. | IMPAIRMENT LOSS ON LONG-LIVED ASSETS |
|----|--------------------------------------|

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Index

| 9. | ART INVENTORY HELD FOR SALE |
|----|-----------------------------|

| 10. | LEASE COMMITMENTS |
|-----|-------------------|

| 11. | MINIMUM FUTURE RENTALS ON OPERATING LEASES |
|-----|--------------------------------------------|

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Index

| 12. | PROPERTY ON OPERATING LEASES |
|-----|------------------------------|

|                                                |   | Historical Cost |   |   | Current Year(RetirementsAdditions |   |   |   |   |   | Carrying     |   |
|-----------------------------------------------------|--------|-----------------|--------|--------|-----------------------------------|--------|--------|--------|--------|--------|--------------|--------|
|                                                |   |            |   |   | Bldgs. &                      |   |   |   |   |   | Bldgs. & |   |   | Accum. |   |   | Value |   |
| Description (1)                                     |   | Land            |   |   | Imprvmts.                         |   |   | Land   |   |   | Imprvmts.    |   |   | Depr. |   |   | 01/31/11 |   |
| New York office Leasehold assets                    |   | $               | 0      |   |                              | $      | 8      |   |   | $      | 0            |   |   | $ | 0 |   |   | $ | (8 | ) |   | $ | 0 |   |
|                                                |   |            |   |   |                              |   |   |   |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 9 acres of land in Omaha, NE Acquired in 1976       |   |            | 800    |   |                              |   | 21     |   |   |   | 0            |   |   |   | 0 |   |   |   | (18 | ) |   |   | 803 |   |
|                                                |   |            |   |   |                              |   |   |   |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 3 acres of land in S. St. Paul, MN Acquired in 1937 |   |            | 10     |   |                              |   | 485    |   |   |   | 0            |   |   |   | 0 |   |   |   | (452 | ) |   |   | 43 |   |
|                                                |   |            |   |   |                              |   |   |   |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 4 acres of land in Sioux City, IA Acquired in 1937  |   |            | 540    |   |                              |   | 0      |   |   |   | 0            |   |   |   | 0 |   |   |   | 0 |   |   |   | 540 |   |
|                                                |   | $               | 1,350  |   |                              | $      | 514    |   |   | $      | 0            |   |   | $ | 0 |   |   | $ | (478 | ) |   | $ | 1,386 |   |

|                          |   | Jan 30, |   |   | October 31, |   |
|-------------------------------|--------|---------|--------|--------|-------------|--------|
|                          |   | 2011    |   |   | 2010        |   |
| Balance at beginning of year  |   | $       | 1,391  |   |        | $      | 1,074 |   |
| Acquisitions and Improvements |   |    | 0      |   |        |   | 0 |   |
| Cost of property sold         |   |    | 0      |   |        |   | 0 |   |
| Depreciation                  |   |    | (5     | )      |        |   | (23 | ) |
| Reclassifications             |   |    | 0      |   |        |   | 340 |   |
| Balance at end of the period  |   | $       | 1,386  |   |        | $      | 1,391 |   |

|   | (1) | Substantially all of Canal’s real property is pledged as collateral for its debt obligations. |
|--------|-----|-----------------------------------------------------------------------------------------------------|

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Index

| 13. | PROPERTY USED IN STOCKYARD OPERATIONS |
|-----|---------------------------------------|

|                                                |   | Historical Cost |   |   | Current Year(Retirements)Additions |   |   |   |   |   | Carrying     |   |
|-----------------------------------------------------|--------|-----------------|--------|--------|------------------------------------|--------|--------|--------|--------|--------|--------------|--------|
|                                                |   |            |   |   | Bldgs. &                       |   |   |   |   |   | Bldgs. & |   |   | Accum. |   |   | Value |   |
| Description (1)                                     |   | Land            |   |   | Imprvmts.                          |   |   | Land   |   |   | Imprvmts.    |   |   | Depr. |   |   | 01/31/11 |   |
|                                                |   |            |   |   |                               |   |   |   |   |   |         |   |   |   |   |   |   |   |
| 30 acres of land in St. Joseph, MO Acquired in 1942 |   | $               | 400    |   |                               | $      | 325    |   |   | $      | 0            |   |   | $ | 0 |   |   | $ | (197 | ) |   | $ | 528 |   |

|                          |   | Jan 31, |   |   | October 31, |       |
|-------------------------------|--------|---------|--------|--------|-------------|------------|
|                          |   | 2011    |   |   | 2010        |       |
|                          |   |    |   |   |        |       |
| Balance at beginning of year  |   | $       | 533    |   |        | $          | 988 |   |
| Acquisitions and Improvements |   |    | 0      |   |        |       | 60 |   |
| Transfers                     |   |    | 0      |   |        |       | (502 | ) |
| Depreciation                  |   |    | (5     | )      |        |       | (13 | ) |
| Balance at end of the period  |   | $       | 528    |   |        | $ 533 |   |

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Index

| 14. | PROPERTY HELD FOR DEVELOPMENT OR RESALE |
|-----|-----------------------------------------|

|                                               |   | Historical Cost |   |   | Current Year(Retirements)Additions |   |   |   |   |   | Carrying     |   |
|----------------------------------------------------|--------|-----------------|--------|--------|------------------------------------|--------|--------|--------|--------|--------|--------------|--------|
|                                               |   |            |   |   | Bldgs. &                       |   |   |   |   |   | Bldgs. & |   |   | Accum. |   |   | Value |   |
| Description (1)                                    |   | Land            |   |   | Imprvmts.                          |   |   | Land   |   |   | Imprvmts.    |   |   | Depr. |   |   | 01/31/11 |   |
|                                               |   |            |   |   |                               |   |   |   |   |   |         |   |   |   |   |   |   |   |
| 2 acres of land in Sioux City, IA Acquired in 1937 |   |            | 53     |   |                               |   | N/A    |   |   | $      | 0            |   |   |   | N/A |   |   |   | N/A |   |   |   | 53 |   |
|                                               |   | $               | 53     |   |                               |   | N/A    |   |   | $      | 0            |   |   |   | N/A |   |   |   | N/A |   |   | $ | 53 |   |

|                          |   | Jan. 31, |   |   | October 31, |   |
|-------------------------------|--------|----------|--------|--------|-------------|--------|
|                          |   | 2011     |   |   | 2010        |   |
|                          |   |     |   |   |        |   |
| Balance at beginning of year  |   | $        | 53     |   |        | $      | 273 |   |
| Acquisitions and Improvements |   |     | 0      |   |        |   | 0 |   |
| Cost of property sold         |   |     | 0      |   |        |   | 0 |   |
| Reclassification of property  |   |     | 0      |   |        |   | (220 | ) |
| Balance at end of the period  |   | $        | 53     |   |        | $      | 53 |   |

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Index

| 15. | PENSION VALUATION RESERVE |
|-----|---------------------------|

|                               |   | Nine Months Ended |    |
|------------------------------------|--------|-------------------|---------|
|                               |   | 1/31/11           |    |   | 1/31/10 |   |
|                               |   |              |    |   |   |   |
|                               |   |              |    |   |   |   |
| Service cost                       |   |              | 2,000   |   |   |   | 2,000 |   |
| Interest cost                      |   |              | 26,000  |   |   |   | 26,000 |   |
| Expected return on plan assets     |   |              | (28,000 | ) |   |   | (28,000 | ) |
| Amortization of prior service cost |   |              | 0       |   |   |   | 0 |   |
| Recognized net actuarial loss      |   |              | 30,000  |   |   |   | 30,000 |   |
| Net periodic benefit cost          |   |              | 30,000  |   |   |   | 30,000 |   |

| 16. | 401(k) PLAN |
|-----|-------------|

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Index

| 17. | RELATED PARTY TRANSACTIONS |
|-----|----------------------------|

| 18. | LITIGATION |
|-----|------------|

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Index

| ITEM II. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE RESULTS OF OPERATIONS AND FINANCIAL CONDITION FOR THE THREE MONTHS ENDED JANUARY 31, 2011 |
|----------|---------------------------------------------------------------------------------------------------------------------------------------|

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Index

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Index

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Index

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Index

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Index

|                                |   | Three Months EndedJanuary 31, |   |
|-------------------------------------|--------|-------------------------------|--------|
|                                |   | 2011                          |   |   | 2010 |   |
| (In Thousands)                      |   |                          |   |   |   |   |
| Revenues:                           |   |                          |   |   |   |   |
| Real Estate Revenues                |   | $                             | 70     |   |   | $ | 76 |   |
| Stockyard Revenues                  |   |                          | 579    |   |   |   | 659 |   |
| Total Revenues                      |   |                          | 649    |   |   |   | 735 |   |
|                                |   |                          |   |   |   |   |   |   |
| Costs and Expenses:                 |   |                          |   |   |   |   |   |   |
| Real Estate Expenses                |   |                          | 14     |   |   |   | 22 |   |
| Stockyard Expenses                  |   |                          | 470    |   |   |   | 551 |   |
| General and Administrative Expenses |   |                          | 206    |   |   |   | 212 |   |
| Total Costs and Expenses            |   |                          | 690    |   |   |   | 785 |   |
|                                |   |                          |   |   |   |   |   |   |
| (Loss) Income from Operations       |   |                          | (41    | ) |   |   | (50 | ) |
|                                |   |                          |   |   |   |   |   |   |
| Other Income                        |   |                          | 0      |   |   |   | 0 |   |
| Other Expenses                      |   |                          | (21    | ) |   |   | (25 | ) |
| Net (Loss) Income                   |   | $                             | (62    | ) |   | S | (75 | ) |

----

Index

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Index

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Index

iquid

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Index

ther

TE

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Index

| As of      |   | Fixed rate |   |   | Average       |   | Fair   |
|------------|--------|------------|--------|--------|---------------|--------|--------|
| Jan. 31,   |   | ($ US)     |   |   | Interest Rate |   | Value  |
| 2011       |   | $          | 0      |   |          |   | N/A    |   |   |
| 2012       |   |       | 847    |   |          |   | 10     | % |   |
| 2013       |   |       | 0      |   |          |   | N/A    |   |   |
| 2014       |   |       | 0      |   |          |   | N/A    |   |   |
| 2015       |   |       | 0      |   |          |   | N/A    |   |   |
| Thereafter |   |       | 0      |   |          |   | N/A    |   |   |
| Total      |   | $          | 847    |   |          |   |   |   | N/A (A) |

| (A) | Long-term debt related party: it is not practicable to estimate the fair value of the related party debt. |
|-----|-----------------------------------------------------------------------------------------------------------|

ITEM IV. 

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Index

P

----

Index

| Item 1: | Legal Proceedings: |
|---------|--------------------|

| Item 6:  Exhibits and Reports on Form 8-K: | (A) | Not applicable. |
|------------------------------------------------------|-----|-----------------|

|   | (B) | None |
|--------|-----|------|

----

Index

S

|   | CANAL CAPITAL CORPORATION |
|--------|---------------------------|
|   |                      |   |
|   |                      |   |
|   | By:                       | /S/ Michael E. Schultz |
|   |                      | Michael E. Schultz |
|   |                      | President and Chief |
|   |                      | Executive Officer |
|   |                      | (Principal Executive Officer) |

| Signature              |   | Title                          |   | Date           |
|------------------------|--------|--------------------------------|--------|----------------|
|                   |   |                           |   |           |
|                   |   | President and Chief            |   |           |
| /S/ Michael E. Schultz |   | Executive Officer and Director |   |           |
| Michael E. Schultz     |   | (Principal Executive Officer)  |   | March 14, 2011 |
|                   |   |                           |   |           |
|                   |   | Vice President-Finance         |   |           |
|                   |   | Secretary and Treasurer        |   |           |
| /S/ Reginald Schauder  |   | (Principal Financial and       |   |           |
| Reginald Schauder      |   | Accounting Officer)            |   | March 14, 2011 |
|                   |   |                           |   |           |
|                   |   |                           |   |           |
| /S/ Asher B. Edelman   |   | Chairman of the Board          |   |           |
| Asher B. Edelman       |   | and Director                   |   | March 14, 2011 |

----