----

----

| 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)     |
|                                                            |           |
| (Registrant's telephone number, including area code)            | (631) 234-0140 |
|                                                            |           |
| Securities registered pursuant to Section 12(b) of the Act:None |

| Large accelerated filer o | Accelerated filer o | Non-accelerated filerT |
|------------------------------------------|-------------------------------|-----------------------------|

----

----

----

CANA

| Part I - Financial Information                                                                                                                      | 3      |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                |   |
| Item I. Condensed Financial Statements:                                                                                                             |   |
|                                                                                                                                                |   |
| Consolidated Balance Sheets - April 30, 2011 and October 31, 2010                                                                                   | 4      |
|                                                                                                                                                |   |
| Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three Month Periods ended April 30, 2011 and 2010                     | 6      |
|                                                                                                                                                |   |
| Consolidated Statements of Changes in Stockholders’ Equity for the One Year and Three Month Periods ended October 31, 2010 and April 30, 2011 | 10     |
|                                                                                                                                                |   |
| Consolidated Statements of Cash Flows for the Three Month Periods ended April 30, 2011 and 2010                                                     | 11     |
|                                                                                                                                                |   |
| Notes to Consolidated Financial Statements                                                                                                          | 13     |
|                                                                                                                                                |   |
| Item II. Management’s Discussion and Analysis of Financial Condition                                                                          | 28     |
|                                                                                                                                                |   |
| Liquidity and Capital Resources                                                                                                                     | 37     |
|                                                                                                                                                |   |
| Other Factors                                                                                                                                       | 38     |
|                                                                                                                                                |   |
| Item III. Quantitative and Qualitative Disclosures About Market Risk                                                                                | 39     |
|                                                                                                                                                |   |
| Item IV. Controls and Procedures                                                                                                                    | 39     |
|                                                                                                                                                |   |
| Part II Other Information                                                                                                                           | 40     |
|                                                                                                                                                |   |
| Items 1 through 6                                                                                                                                   | 41     |
|                                                                                                                                                |   |
| Signatures and Certifications                                                                                                                       | 42     |

----

Index

PA

----

Index

 CANAL 

|                                                                                                                                                 |   | APR 30, |      |   | OCT. 31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-----------|--------|---------------|--------|
|                                                                                                                                                 |   | 2011         |      |   | 2010          |   |
|                                                                                                                                                 |   | (UNAUDITED)  |      |   | (UNAUDITED)   |   |
| ASSETS:                                                                                                                                              |   |         |      |   |          |   |
|                                                                                                                                                 |   |         |      |   |          |   |
| CURRENT ASSETS:                                                                                                                                      |   |         |      |   |          |   |
|                                                                                                                                                 |   |         |      |   |          |   |
| CASH AND CASH EQUIVALENTS                                                                                                                            |   | $            | 176,217   |   |          | $      | 510,361 |   |
|                                                                                                                                                 |   |         |      |   |          |   |   |   |
| NOTES AND ACCOUNTS RECEIVABLE, NET OF AN ALLOWANCE FOR DOUBTFUL ACCOUNTS OF $ZERO AT BOTH APRIL 30, 2011 AND OCTOBER 31, 2010,                       |   |         | 121,830   |   |          |   | 138,879 |   |
|                                                                                                                                                 |   |         |      |   |          |   |   |   |
| STOCKYARDS INVENTORY                                                                                                                                 |   |         | 23,139    |   |          |   | 14,608 |   |
|                                                                                                                                                 |   |         |      |   |          |   |   |   |
| PREPAID EXPENSES                                                                                                                                     |   |         | 52,316    |   |          |   | 12,461 |   |
|                                                                                                                                                 |   |         |      |   |          |   |   |   |
| TOTAL CURRENT ASSETS                                                                                                                                 |   |         | 373,502   |   |          |   | 676,309 |   |
|                                                                                                                                                 |   |         |      |   |          |   |   |   |
| NON-CURRENT ASSETS:                                                                                                                                  |   |         |      |   |          |   |   |   |
|                                                                                                                                                 |   |         |      |   |          |   |   |   |
| PROPERTY ON OPERATING LEASES, NET OF ACCUMULATED DEPRECIATION OF $483,499 AND $472,399 AT APRIL 30, 2011 AND OCTOBER 31, 2010, RESPECTIVELY          |   |         | 1,387,807 |   |          |   | 1,391,407 |   |
|                                                                                                                                                 |   |         |      |   |          |   |   |   |
| PROPERTY USED IN STOCKYARD OPERATIONS, NET OF ACCUMULATED DEPRECIATION OF $202,057 AND $191,857 AT APRIL 30, 2011 AND OCTOBER 31, 2010, RESPECTIVELY |   |         | 522,472   |   |          |   | 532,672 |   |
|                                                                                                                                                 |   |         |      |   |          |   |   |   |
| ART INVENTORY, NET OF A VALUATION ALLOWANCE OF $396,522 AT BOTH APRIL 30, 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                                                                                                                  |   |         | 70,652    |   |          |   | 26,000 |   |
| DEPOSITS AND OTHER ASSETS                                                                                                                            |   |         | 0         |   |          |   | 0 |   |
|                                                                                                                                                 |   |         |      |   |          |   |   |   |
|                                                                                                                                                 |   |         | 262,902   |   |          |   | 218,250 |   |
|                                                                                                                                                 |   |         |      |   |          |   |   |   |
|                                                                                                                                                 |   | $            | 2,646,683 |   |          | $      | 2,918,638 |   |

----

Index

|                                                                                                                                                                                                                                                   |   | JAN 31, 2011 |        |   | OCT.31, 2010 |     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|-------------|--------|-------------------|----------|
|                                                                                                                                                                                                                                                   |   | (UNAUDITED)            |        |   | (UNAUDITED)       |     |
|                                                                                                                                                                                                                                                   |   |                   |        |   |              |     |
| LIABILITIES & STOCKHOLDERS' EQUITY:                                                                                                                                                                                                                |   |                   |        |   |              |     |
|                                                                                                                                                                                                                                                   |   |                   |        |   |              |     |
| CURRENT LIABILITIES:                                                                                                                                                                                                                                   |   |                   |        |   |              |     |
| ACCOUNTS PAYABLE AND ACCRUED EXPENSES                                                                                                                                                                                                                  |   | $                      | 130,408     |   |              | $        | 267,827 |   |
| ACCRUED PROFESSIONAL FEES                                                                                                                                                                                                                              |   |                   | 41,984      |   |              |     | 55,000 |   |
| INCOME TAXES PAYABLE                                                                                                                                                                                                                                   |   |                   | 10,000      |   |              |     | 10,000 |   |
| TOTAL CURRENT LIABILITIES                                                                                                                                                                                                                              |   |                   | 182,392     |   |              |     | 332,827 |   |
|                                                                                                                                                                                                                                                   |   |                   |        |   |              |     |   |   |
| NON-CURRENT LIABILITIES:                                                                                                                                                                                                                               |   |                   |        |   |              |     |   |   |
| LONG-TERM PENSION LIABILITY                                                                                                                                                                                                                            |   |                   | 723,206     |   |              |     | 869,676 |   |
| PREFERRED STOCK DIVIDEND PAYABLE                                                                                                                                                                                                                       |   |                   | 205,550     |   |              |     | 169,550 |   |
| SALARIES AND INTEREST PAYABLE – OFFICERS                                                                                                                                                                                                         |   |                   | 229,350     |   |              |     | 175,000 |   |
| REAL ESTATE TAXES PAYABLE                                                                                                                                                                                                                              |   |                   | 45,432      |   |              |     | 44,543 |   |
| OTHER NON-CURRENT LIABILITIES                                                                                                                                                                                                                          |   |                   | 70,652      |   |              |     | 26,000 |   |
| TOTAL NON-CURRENT LIABILITIES                                                                                                                                                                                                                          |   |                   | 1,274,190   |   |              |     | 1,284,769 |   |
|                                                                                                                                                                                                                                                   |   |                   |        |   |              |     |   |   |
| 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 APRIL 30, 2011 AND OCTOBER 31, 2010, RESPECTIVELY AND AGGREGATE LIQUIDATION PREFERENCE OF $10 PER SHARE FOR $ 91,026,550 AT APRIL 30, 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 APRIL 30, 2011 AND OCTOBER 31, 2010, RESPECTIVELY                                                                                                          |   |                   | 53,138      |   |              |     | 53,138 |   |
|                                                                                                                                                                                                                                                   |   |                   |        |   |              |     |   |   |
| ADDITIONAL PAID-IN CAPITAL                                                                                                                                                                                                                             |   |                   | 28,322,341  |   |              |     | 28,322,341 |   |
|                                                                                                                                                                                                                                                   |   |                   |        |   |              |     |   |   |
| ACCUMULATED DEFICIT                                                                                                                                                                                                                                    |   |                   | (15,279,487 | )      |              |     | (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                                                                                                                                                                                                                              |   |                   | (1,840,373  | )      |              |     | (1,894,373 | ) |
|                                                                                                                                                                                                                                                   |   |                   | 343,101     |   |              | 454,042_ |   |
|                                                                                                                                                                                                                                                   |   |                   |        |   |              |     |   |   |
|                                                                                                                                                                                                                                                   |   | $                      | 2,646,683   |   |              | $        | 2,918,638 |   |

----

Index

CAN

|                                    |   | 2011        |      |   | 2010        |   |
|-----------------------------------------|--------|-------------|-----------|--------|-------------|--------|
|                                    |   | (UNAUDITED) |      |   | (UNAUDITED) |   |
| REAL ESTATE OPERATIONS:                 |   |        |      |   |        |   |
|                                    |   |        |      |   |        |   |
| REAL ESTATE REVENUES:                   |   |        |      |   |        |   |
| SALE OF REAL ESTATE                     |   |        | 0         |   |        |   | 0 |   |
| OUTSIDE REAL ESTATE RENT                |   |        | 136,488   |   |        |   | 139,814 |   |
| EXCHANGE BUILDING RENTAL INCOME         |   |        | 0         |   |        |   | 7,279 |   |
|                                    |   |        | 136,488   |   |        |   | 147,093 |   |
|                                    |   |        |      |   |        |   |   |   |
| REAL ESTATE EXPENSES:                   |   |        |      |   |        |   |   |   |
| COST OF REAL ESTATE SOLD                |   |        | 0         |   |        |   | 0 |   |
| LABOR, OPERATING AND MAINTENANCE        |   |        | 4,534     |   |        |   | 13,578 |   |
| DEPRECIATION AND AMORTIZATION           |   |        | 11,100    |   |        |   | 11,100 |   |
| TAXES OTHER THAN INCOME TAXES           |   |        | 7,500     |   |        |   | 11,000 |   |
| GENERAL AND ADMINISTRATIVE              |   |        | 5,100     |   |        |   | 9,616 |   |
|                                    |   |        | 28,234    |   |        |   | 45,294 |   |
|                                    |   |        |      |   |        |   |   |   |
| INCOME FROM REAL ESTATE OPERATIONS      |   |        | 108,254   |   |        |   | 101,799 |   |
|                                    |   |        |      |   |        |   |   |   |
| STOCKYARD OPERATIONS:                   |   |        |      |   |        |   |   |   |
|                                    |   |        |      |   |        |   |   |   |
| STOCKYARD REVENUES:                     |   |        |      |   |        |   |   |   |
| YARD HANDLING AND AUCTION               |   | $           | 1,039,421 |   |        | $      | 1,076,161 |   |
| FEED AND BEDDING INCOME                 |   |        | 67,063    |   |        |   | 58,019 |   |
| RENTAL & OTHER INCOME               |   |        | 65,158    |   |        |   | 180,341 |   |
|                                    |   |        | 1,171,642 |   |        |   | 1,314,521 |   |
|                                    |   |        |      |   |        |   |   |   |
| STOCKYARD EXPENSES:                     |   |        |      |   |        |   |   |   |
| LABOR AND RELATED COSTS                 |   |        | 411,153   |   |        |   | 464,207 |   |
| OTHER OPERATING AND MAINTENANCE         |   |        | 239,682   |   |        |   | 274,881 |   |
| FEED AND BEDDING EXPENSE                |   |        | 50,114    |   |        |   | 50,299 |   |
| DEPRECIATION AND AMORTIZATION           |   |        | 10,200    |   |        |   | 6,735 |   |
| TAXES OTHER THAN INCOME TAXES           |   |        | 40,396    |   |        |   | 80,386 |   |
| GENERAL AND ADMINISTRATIVE              |   |        | 201,184   |   |        |   | 189,482 |   |
|                                    |   |        | 952,729   |   |        |   | 1,065,990 |   |
|                                    |   |        |      |   |        |   |   |   |
| INCOME (LOSS) FROM STOCKYARD OPERATIONS |   |        | 218,913   |   |        |   | 248,531 |   |
|                                    |   |        |      |   |        |   |   |   |
| GENERAL AND ADMINISTRATIVE EXPENSE      |   |        | (414,027  | )      |        |   | (419,854 | ) |
|                                    |   |        |      |   |        |   |   |   |
| (LOSS) INCOME FROM OPERATIONS           |   |        | (86,860   | )      |        |   | (69,524 | ) |

----

Index

|                                                 |   | 2011        |      |   | 2010        |   |
|------------------------------------------------------|--------|-------------|-----------|--------|-------------|--------|
|                                                 |   | (UNAUDITED) |      |   | (UNAUDITED) |   |
|                                                 |   |        |      |   |        |   |
| OTHER (EXPENSE) INCOME:                              |   |        |      |   |        |   |
| INTEREST & OTHER INCOME                          |   |        | 269       |   |        |   | 230 |   |
| INTEREST EXPENSE                                     |   |        | (42,350   | )      |        |   | (54,879 | ) |
| ART SALES AND OPERATIONS                             |   |        | 0         |   |        | 0      |   |
|                                                 |   |        |      |   |        |   |   |   |
|                                                 |   |        | (42,081   | )      |        |   | (54,649 | ) |
|                                                 |   |        |      |   |        |   |   |   |
| (LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES      |   |        | (128,941  | )      |        |   | (124,173 | ) |
| PROVISION FOR INCOME TAXES                           |   |        | 0         |   |        | 0      |   |
|                                                 |   |        |      |   |        |   |   |   |
| NET (LOSS) INCOME                                    |   |        | (128,941  | )      |        |   | (124,173 | ) |
|                                                 |   |        |      |   |        |   |   |   |
| OTHER COMPREHENSIVE (LOSS) INCOME:                   |   |        |      |   |        |   |   |   |
|                                                 |   |        |      |   |        |   |   |   |
| MINIMUM PENSION LIABILITY ADJUSTMENT                 |   |        | 54,000    |   |        | 54,000 |   |
|                                                 |   |        |      |   |        |   |   |   |
| COMPREHENSIVE (LOSS) INCOME                          |   | $           | (74,941   | )      |        | $      | (70,173 | ) |
|                                                 |   |        |      |   |        |   |   |   |
| (LOSS) EARNINGS PER COMMON SHARE:                    |   |        |      |   |        |   |   |   |
|                                                 |   |        |      |   |        |   |   |   |
| NET (LOSS) INCOME                                    |   | $           | (128,941  | )      |        | $      | (124,173 | ) |
|                                                 |   |        |      |   |        |   |   |   |
| LESS PREFERRED STOCK DIVIDEND                        |   |        | (36,000   | )      |        |   | (36,000 | ) |
|                                                 |   |        |      |   |        |   |   |   |
| (LOSS) INCOME AVAILABLE TO COMMON STKDERS            |   | $           | (164,941  | )      |        | $      | (160,173 | ) |
|                                                 |   |        |      |   |        |   |   |   |
| NET (LOSS) INCOME PER COMMON SHARE BASIC AND DILUTED |   | $           | (0.04     | )      |        | $      | (0.04 | ) |
|                                                 |   |        |      |   |        |   |   |   |
| AVERAGE SHARES OUTSTANDING – BASIC AND DILUTED |   |        | 4,326,929 |   |        |   | 4,326,929 |   |

----

Index

|                                    |   | 2011        |     |   | 2010        |   |
|-----------------------------------------|--------|-------------|----------|--------|-------------|--------|
|                                    |   | (UNAUDITED) |     |   | (UNAUDITED) |   |
| REAL ESTATE OPERATIONS:                 |   |        |     |   |        |   |
|                                    |   |        |     |   |        |   |
| REAL ESTATE REVENUES:                   |   |        |     |   |        |   |
| SALE OF REAL ESTATE                     |   |        | 0        |   |        |   | 0 |   |
| OUTSIDE REAL ESTATE RENT                |   |        | 66,244   |   |        |   | 67,270 |   |
| EXCHANGE BUILDING RENTAL INCOME         |   |        | 0        |   |        |   | 3,593 |   |
|                                    |   |        | 66,244   |   |        |   | 70,863 |   |
|                                    |   |        |     |   |        |   |   |   |
| REAL ESTATE EXPENSES:                   |   |        |     |   |        |   |   |   |
| COST OF REAL ESTATE SOLD                |   |        | 0        |   |        |   | 0 |   |
| LABOR, OPERATING AND MAINTENANCE        |   |        | 2,204    |   |        |   | 7,122 |   |
| DEPRECIATION AND AMORTIZATION           |   |        | 5,550    |   |        |   | 5,550 |   |
| TAXES OTHER THAN INCOME TAXES           |   |        | 3,750    |   |        |   | 5,550 |   |
| GENERAL AND ADMINISTRATIVE              |   |        | 2,550    |   |        |   | 4,816 |   |
|                                    |   |        | 14,054   |   |        |   | 23,038 |   |
|                                    |   |        |     |   |        |   |   |   |
| INCOME FROM REAL ESTATE OPERATIONS      |   |        | 52,190   |   |        |   | 47,825 |   |
|                                    |   |        |     |   |        |   |   |   |
| STOCKYARD OPERATIONS:                   |   |        |     |   |        |   |   |   |
|                                    |   |        |     |   |        |   |   |   |
| STOCKYARD REVENUES:                     |   |        |     |   |        |   |   |   |
| YARD HANDLING AND AUCTION               |   | $           | 533,348  |   |        | $      | 581,738 |   |
| FEED AND BEDDING INCOME                 |   |        | 27,165   |   |        |   | 30,319 |   |
| RENTAL & OTHER INCOME               |   |        | 32,312   |   |        |   | 44,083 |   |
|                                    |   |        | 592,825  |   |        |   | 656,140 |   |
|                                    |   |        |     |   |        |   |   |   |
| STOCKYARD EXPENSES:                     |   |        |     |   |        |   |   |   |
| LABOR AND RELATED COSTS                 |   |        | 205,508  |   |        |   | 199,464 |   |
| OTHER OPERATING AND MAINTENANCE         |   |        | 132,516  |   |        |   | 134,824 |   |
| FEED AND BEDDING EXPENSE                |   |        | 21,308   |   |        |   | 25,450 |   |
| DEPRECIATION AND AMORTIZATION           |   |        | 5,100    |   |        |   | 3,367 |   |
| TAXES OTHER THAN INCOME TAXES           |   |        | 20,181   |   |        |   | 40,432 |   |
| GENERAL AND ADMINISTRATIVE              |   |        | 97,583   |   |        |   | 111,486 |   |
|                                    |   |        | 482,196  |   |        |   | 515,023 |   |
|                                    |   |        |     |   |        |   |   |   |
| INCOME (LOSS) FROM STOCKYARD OPERATIONS |   |        | 110,629  |   |        |   | 141,117 |   |
|                                    |   |        |     |   |        |   |   |   |
| GENERAL AND ADMINISTRATIVE EXPENSE      |   |        | (208,167 | )      |        |   | (207,908 | ) |
|                                    |   |        |     |   |        |   |   |   |
| (LOSS) INCOME FROM OPERATIONS           |   |        | (45,348  | )      |        |   | (18,966 | ) |

----

Index

|                                                 |   | 2011        |      |   | 2010        |   |
|------------------------------------------------------|--------|-------------|-----------|--------|-------------|--------|
|                                                 |   | (UNAUDITED) |      |   | (UNAUDITED) |   |
|                                                 |   |        |      |   |        |   |
| OTHER (EXPENSE) INCOME:                              |   |        |      |   |        |   |
| INTEREST & OTHER INCOME                          |   |        | 52        |   |        |   | 104 |   |
| INTEREST EXPENSE                                     |   |        | (21,175   | )      |        |   | (30,049 | ) |
| ART SALES AND OPERATIONS                             |   |        | 0         |   |        |   | 0 |   |
|                                                 |   |        |      |   |        |   |   |   |
|                                                 |   |        | (21,123   | )      |        |   | (29,945 | ) |
|                                                 |   |        |      |   |        |   |   |   |
| (LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES      |   |        | (66,471   | )      |        |   | (48,911 | ) |
| PROVISION FOR INCOME TAXES                           |   |        | 0         |   |        |   | 0 |   |
|                                                 |   |        |      |   |        |   |   |   |
| NET (LOSS) INCOME                                    |   |        | (66,471   | )      |        |   | (48,911 | ) |
|                                                 |   |        |      |   |        |   |   |   |
| OTHER COMPREHENSIVE (LOSS) INCOME:                   |   |        |      |   |        |   |   |   |
|                                                 |   |        |      |   |        |   |   |   |
| MINIMUM PENSION LIABILITY ADJUSTMENT                 |   |        | 27,000    |   |        |   | 27,000 |   |
|                                                 |   |        |      |   |        |   |   |   |
| COMPREHENSIVE (LOSS) INCOME                          |   | $           | (39,471   | )      |        | $      | (21,911 | ) |
|                                                 |   |        |      |   |        |   |   |   |
| (LOSS) EARNINGS PER COMMON SHARE:                    |   |        |      |   |        |   |   |   |
|                                                 |   |        |      |   |        |   |   |   |
| NET (LOSS) INCOME                                    |   | $           | (66,471   | )      |        | $      | (48,911 | ) |
|                                                 |   |        |      |   |        |   |   |   |
| LESS PREFERRED STOCK DIVIDEND                        |   |        | (18,000   | )      |        |   | (18,000 | ) |
|                                                 |   |        |      |   |        |   |   |   |
| (LOSS) INCOME AVAILABLE TO COMMON STKDERS            |   | $           | (84,471   | )      |        | $      | (66,911 | ) |
|                                                 |   |        |      |   |        |   |   |   |
| 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, APRIL 30, 2011   |   |           | 5,313,794 |   |            | $      | 53,138 |   |   |   | 9,102,655 |   |   | $ | 91,027 |   |

|                      |   | ADDITIONALPAID-INCAPITAL |       |   | ACCUMULATEDDEFICIT |   |        | COMPREHENSIVELOSS |   |   | 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          |   |               |   | (128,941    | )                 |   |   | 0                     |   |   |   | 0 |   |
| PREFERRED STOCK DIVIDEND  |   |                     | 0          |   |               |   | (36,000     | )                 |   |   | 0                     |   |   |   | 0 |   |
| MINIMUM PEN. LIAB. ADJ.   |   |                     | 0          |   |               |   | 0           |              |   |   | 54,000                |   |   |   | 0 |   |
|                      |   |                     |       |   |               |   |        |              |   |   |                  |   |   |   |   |   |
| BALANCE, APRIL 30, 2011   |   | $                        | 28,322,341 |   |               | $      | (15,279,487 | )                 |   | $      | (1,840,373            | )      |   | $ | (11,003,545 | ) |

----

Index

CAN

|                                                                                      |   | APR 2011 |     |   | APR 2010 |   |
|-------------------------------------------------------------------------------------------|--------|---------------|----------|--------|---------------|--------|
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                     |   |          |     |   |          |   |
| NET (LOSS) INCOME                                                                         |   | $             | (128,941 | )      |          | $      | (124,173 | ) |
|                                                                                      |   |          |     |   |          |   |   |   |
| ADJUSTMENTS TO RECONCILE NET LOSS TO NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES: |   |          |     |   |          |   |   |   |
|                                                                                      |   |          |     |   |          |   |   |   |
| DEPRECIATION AND AMORTIZATION                                                             |   |          | 21,300   |   |          |   | 17,835 |   |
|                                                                                      |   |          |     |   |          |   |   |   |
| GAIN ON SALES OF REAL ESTATE                                                              |   |          | 0        |   |          |   | 0 |   |
|                                                                                      |   |          |     |   |          |   |   |   |
| MINIMUM PENSION LIABILITY ADJUSTMENT                                                      |   |          | 54,000   |   |          |   | 54,000 |   |
|                                                                                      |   |          |     |   |          |   |   |   |
| DECREASE (INCREASE) IN ASSETS:                                                            |   |          |     |   |          |   |   |   |
|                                                                                      |   |          |     |   |          |   |   |   |
| NOTES AND ACCOUNTS RECEIVABLE                                                             |   |          | 17,049   |   |          |   | (186,217 | ) |
|                                                                                      |   |          |     |   |          |   |   |   |
| STOCKYARDS INVENTORY                                                                      |   |          | (8,531   | )      |          |   | (5,842 | ) |
|                                                                                      |   |          |     |   |          |   |   |   |
| PREPAID EXPENSES                                                                          |   |          | (39,855  | )      |          |   | (24,536 | ) |
|                                                                                      |   |          |     |   |          |   |   |   |
| RESTRICTED CASH – LETTER OF CREDIT                                                  |   |          | 0        |   |          |   | (10,000 | ) |
|                                                                                      |   |          |     |   |          |   |   |   |
| RESTRICTED CASH – TRANSIT INSURANCE                                                 |   |          | (44,652  | )      |          |   | (19,550 | ) |
|                                                                                      |   |          |     |   |          |   |   |   |
| INCREASE (DECREASE) IN LIABILITIES:                                                       |   |          |     |   |          |   |   |   |
|                                                                                      |   |          |     |   |          |   |   |   |
| ACCOUNTS PAYABLE AND ACCRUED EXPENSES                                                     |   |          | (137,419 | )      |          |   | 146,807 |   |
|                                                                                      |   |          |     |   |          |   |   |   |
| PENSION PLAN PAYABLE                                                                      |   |          | 0        |   |          |   | 0 |   |
|                                                                                      |   |          |     |   |          |   |   |   |
| PAYABLE TO EXECUTIVE OFFICERS                                                             |   |          | 54,350   |   |          |   | 223,700 |   |
|                                                                                      |   |          |     |   |          |   |   |   |
| ACCRUED PROFESSIONAL FEES                                                                 |   |          | (13,016  | )      |          |   | (65,012 | ) |
|                                                                                      |   |          |     |   |          |   |   |   |
| LONG-TERM PENSION LIABILITY                                                               |   |          | (146,470 | )      |          |   | 0 |   |
|                                                                                      |   |          |     |   |          |   |   |   |
| REAL ESTATE TAXES PAYABLE                                                                 |   |          | 889      |   |          |   | (43,305 | ) |
|                                                                                      |   |          |     |   |          |   |   |   |
| OTHER NON-CURRENT LIABILITIES                                                             |   |          | 44,652   |   |          |   | 0 |   |
|                                                                                      |   |          |     |   |          |   |   |   |
| TOTAL ADJUSTMENTS                                                                         |   |          | (197,703 | )      |          |   | 87,880 |   |
|                                                                                      |   |          |     |   |          |   |   |   |
| NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES                                       |   |          | (326,644 | )      |          |   | (36,293 | ) |

----

Index

|                                                   |   | APR 2011 |     |   | APR 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                                   |   |          | (7,500   | )      |          |   | (340,000 | ) |
|                                                   |   |          |     |   |          |   |   |   |
| NET CASH PROVIDED BY INVESTING ACTIVITIES              |   |          | (7,500   | )      |          |   | (340,000 | ) |
|                                                   |   |          |     |   |          |   |   |   |
| CASH FLOWS PROVIDED BY (USED) IN FINANCING ACTIVITIES: |   |          |     |   |          |   |   |   |
|                                                   |   |          |     |   |          |   |   |   |
| PROCEEDS FROM LONG-TERM DEBT OBLIGATION                |   |          | 0        |   |          |   | 340,000 |   |
| REPAYMENT OF LONG-TERM DEBT OBLIGATION                 |   |          | 0        |   |          |   | 0 |   |
|                                                   |   |          |     |   |          |   |   |   |
| NET CASH PROVIDED BY (USED) IN FINANCING ACTIVITIES    |   |          | 0        |   |          |   | 340,000 |   |
|                                                   |   |          |     |   |          |   |   |   |
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS   |   |          | (334,144 | )      |          |   | (36,293 | ) |
|                                                   |   |          |     |   |          |   |   |   |
| CASH AND CASH EQUIVALENTS AT BEGN OF YEAR              |   |          | 510,361  |   |          |   | 154,624 |   |
|                                                   |   |          |     |   |          |   |   |   |
| CASH AND CASH EQUIVALENTS AT END OF YEAR               |   | $             | 176,217  |   |          | $      | 118,331 |   |

|                                                                  |   | APRIL 31, |   |
|-----------------------------------------------------------------------|--------|----------------|--------|
|                                                                  |   | 2011           |   |   | 2010 |   |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:                    |   |           |   |   |   |   |
|                                                                  |   |           |   |   |   |   |
| CASH PAID DURING THE YEAR FOR:                                        |   |           |   |   |   |   |
|                                                                  |   |           |   |   |   |   |
| INTEREST                                                              |   | $              | 43,350 |   |   | $ | 54,879 |   |
| INCOME TAXES                                                          |   | $              | 0      |   |   | $ | 0 |   |
|                                                                  |   |           |   |   |   |   |   |   |
| SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: |   |           |   |   |   |   |   |   |
|                                                                  |   |           |   |   |   |   |   |   |
| PREFERRED STOCK DIVIDENDS                                             |   | $              | 18,000 |   |   | $ | 18,000 |   |

----

Index

CANA

----

Index

----

Index

----

Index

----

Index

----

Index

----

Index

----

Index

|                                                          |   | Apr 30, |   |   | 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 Than 1 year |   |   | 1 - 3 Years |   |   | 3 - 5 Years |   |   | More Than 5Yrs. |   |
|----------------------------|--------|--------|--------|--------|------------------|--------|--------|-------------|--------|--------|-------------|--------|--------|-----------------|--------|
|                       |   |   |   |   |             |   |   |        |   |   |        |   |   |            |   |
| 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. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

----

Index

|                               |   | Historical CostBldgs. & |   |   | Current Year(RetirementsAdditionsBldgs. & |   |   | Accum. |   |   | CarryingValue |   |
|------------------------------------|--------|-----------------------------|--------|--------|-----------------------------------------------|--------|--------|--------|--------|--------|---------------|--------|
| Description (1)                    |   | Land                        |   |   | Imprvmts.                                     |   |   | Land   |   |   | Imprvmts.     |   |   | Depr. |   |   | 04/30/11 |   |
| New York office Leasehold assets   |   | $                           | 0      |   |                                          | $      | 8      |   |   | $      | 0             |   |   | $ | 0 |   |   | $ | (8 | ) |   | $ | 0 |   |
|                               |   |                        |   |   |                                          |   |   |   |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 9 acres of land in Omaha, NE       |   |                        | 800    |   |                                          |   | 21     |   |   |   | 0             |   |   |   | 8 |   |   |   | (19 | ) |   |   | 810 |   |
| Acquired in 1976                   |   |                        |   |   |                                          |   |   |   |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                        |   |   |                                          |   |   |   |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 3 acres of land in S. St. Paul, MN |   |                        | 10     |   |                                          |   | 485    |   |   |   | 0             |   |   |   | 0 |   |   |   | (457 | ) |   |   | 38 |   |
| Acquired in 1937                   |   |                        |   |   |                                          |   |   |   |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                        |   |   |                                          |   |   |   |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 4 acres of land in Sioux City, IA  |   |                        | 540    |   |                                          |   | 0      |   |   |   | 0             |   |   |   | 0 |   |   |   | 0 |   |   |   | 540 |   |
| Acquired in 1937                   |   |                        |   |   |                                          |   |   |   |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   | $                           | 1,350  |   |                                          | $      | 514    |   |   | $      | 0             |   |   | $ | 8 |   |   | $ | (484 | ) |   | $ | 1,388 |   |

|                          |   | Apr 30, |   |   | October 31, |   |
|-------------------------------|--------|--------------|--------|--------|------------------|--------|
|                          |   | 2011         |   |   | 2010             |   |
| Balance at beginning of year  |   | $            | 1,391  |   |             | $      | 1,074 |   |
| Acquisitions and Improvements |   |         | 8      |   |             |   | 0 |   |
| Cost of property sold         |   |         | 0      |   |             |   | 0 |   |
| Depreciation                  |   |         | (11    | )      |             |   | (23 | ) |
| Reclassifications             |   |         | 0      |   |             |   | 340 |   |
| Balance at end of the period  |   | $            | 1,388  |   |             | $      | 1,391 |   |

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

----

Index

|                               |   | Historical Cost Bldgs. & |   |   | Current Year(Retirements)Additions Bldgs. & |   |   | Accum. |   |   | CarryingValue |   |
|------------------------------------|--------|------------------------------|--------|--------|-------------------------------------------------|--------|--------|--------|--------|--------|---------------|--------|
| Description (1)                    |   | Land                         |   |   | Imprvmts.                                       |   |   | Land   |   |   | Imprvmts.     |   |   | Depr. |   |   | 04/30/11 |   |
|                               |   |                         |   |   |                                            |   |   |   |   |   |          |   |   |   |   |   |   |   |
| 30 acres of land in St. Joseph, MO |   | $                            | 400    |   |                                            | $      | 325    |   |   | $      | 0             |   |   | $ | 0 |   |   | $ | (202 | ) |   | $ | 523 |   |
| Acquired in 1942                   |   |                         |   |   |                                            |   |   |   |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                          |   | Apr 30, |   |   | October 31, |   |
|-------------------------------|--------|--------------|--------|--------|------------------|--------|
|                          |   | 2011         |   |   | 2010             |   |
|                          |   |         |   |   |             |   |
| Balance at beginning of year  |   | $            | 533    |   |             | $      | 988 |   |
| Acquisitions and Improvements |   |         | 0      |   |             |   | 60 |   |
| Transfers                     |   |         | 0      |   |             |   | (502 | ) |
| Depreciation                  |   |         | (10    | )      |             |   | (13 | ) |
| Balance at end of the period  |   | $            | 523    |   |             | $      | 533 |   |

----

Index

|                              |   | Historical Cost Bldgs. & |   |   | Current Year(Retirements)Additions Bldgs. & |   |   | Accum. |   |   | CarryingValue |   |
|-----------------------------------|--------|------------------------------|--------|--------|-------------------------------------------------|--------|--------|--------|--------|--------|---------------|--------|
| Description (1)                   |   | Land                         |   |   | Imprvmts.                                       |   |   | Land   |   |   | Imprvmts.     |   |   | Depr. |   |   | 04/30/11 |   |
|                              |   |                         |   |   |                                            |   |   |   |   |   |          |   |   |   |   |   |   |   |
| 2 acres of land in Sioux City, IA |   |                         | 53     |   |                                            |   | N/A    |   |   | $      | 0             |   |   |   | N/A |   |   |   | N/A |   |   |   | 53 |   |
| Acquired in 1937                  |   |                         |   |   |                                            |   |   |   |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                              |   | $                            | 53     |   |                                            |   | N/A    |   |   | $      | 0             |   |   |   | N/A |   |   |   | N/A |   |   | $ | 53 |   |

|                          |   | Apr 30, |   |   | 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 |   |

----

Index

|                               |   | Six Months Ended |    |
|------------------------------------|--------|----------------------------|---------|
|                               |   | 4/30/11                    |    |   | 4/30/10 |   |
|                               |   |                       |    |   |   |   |
| Service cost                       |   |                       | 4,000   |   |   |   | 4,000 |   |
| Interest cost                      |   |                       | 52,000  |   |   |   | 52,000 |   |
| Expected return on plan assets     |   |                       | (56,000 | ) |   |   | (56,000 | ) |
| Amortization of prior service cost |   |                       | 0       |   |   |   | 0 |   |
| Recognized net actuarial loss      |   |                       | 60,000  |   |   |   | 60,000 |   |
| Net periodic benefit cost          |   |                       | 60,000  |   |   |   | 60,000 |   |

----

Index

----

Index

| ITEM II. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE RESULTS OF OPERATIONS AND FINANCIAL CONDITION FOR THE SIX MONTHS ENDED APRIL 30, 2011 |
|----------|-----------------------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

----

Index

----

Index

----

Index

|                                |   | Six Months Ended April 30, |   |
|-------------------------------------|--------|------------------------------------------------|--------|
|                                |   | 2011                                           |   |   | 2010 |   |
|                                |   | (In Thousands)                            |   |
| Revenues:                           |   |                                           |   |   |   |   |
| Real Estate Revenues                |   | $                                              | 136    |   |   | $ | 147 |   |
| Stockyard Revenues                  |   |                                           | 1,172  |   |   |   | 1,315 |   |
| Total Revenues                      |   |                                           | 1,308  |   |   |   | 1,462 |   |
|                                |   |                                           |   |   |   |   |   |   |
| Costs and Expenses:                 |   |                                           |   |   |   |   |   |   |
| Real Estate Expenses                |   |                                           | 28     |   |   |   | 45 |   |
| Stockyard Expenses                  |   |                                           | 953    |   |   |   | 1,066 |   |
| General and Administrative Expenses |   |                                           | 414    |   |   |   | 420 |   |
| Total Costs and Expenses            |   |                                           | 1,395  |   |   |   | 1,531 |   |
|                                |   |                                           |   |   |   |   |   |   |
| (Loss) Income from Operations       |   |                                           | (87    | ) |   |   | (69 | ) |
|                                |   |                                           |   |   |   |   |   |   |
| Other Income                        |   |                                           | 0      |   |   |   | 0 |   |
| Other Expenses                      |   |                                           | (42    | ) |   |   | (55 | ) |
|                                |   |                                           |   |   |   |   |   |   |
| Net (Loss) Income                   |   | $                                              | (129   | ) |   | S | (124 | ) |

----

Index

----

Index

----

Index

----

Index

Capit

----

Index

Othe

----

Index

| ITEM III. | Quantitative and Qualitative Disclosures About Market Risk |
|-----------|------------------------------------------------------------|

| As of APR 30, |   | Fixed rate ($ US) |   |   | Average Interest Rate |   | Fair 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. | Controls and Procedures |
|----------|-------------------------|

----

Index

PA

----

Index

Item

| Item 6: Exhibits and Reports on Form 8-K:     | (A)    | Not applicable. |
|-------------------------------------------------------------------|-----------------------|-----------------|
|                                                              | (B)                   | None            |

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Index

SIG

|   | 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)       | June 7, 2011 |
|                   |                                          |                   |
|                   | Vice President-Finance                   |                   |
|                   | Secretary and Treasurer             |                   |
| /S/ Reginald Schauder  | (Principal Financial and            |                   |
| Reginald Schauder      | Accounting Officer)                      | June 7, 2011 |
|                   |                                          |                   |
| /S/ Asher B. Edelman   | Chairman of the Board          |                   |
| Asher B. Edelman       | and Director                             | June 7, 2011 |

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