----

----

| 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) |

----

----

----

INDEX

| Part I -  |   | Financial Information                                                                                                                                 | 3      |
|-----------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|      |   |                                                                                                                                                  |   |
| Item I.   |   | Condensed Financial Statements:                                                                                                                       |   |
|      |   |                                                                                                                                                  |   |
|      |   | Consolidated Balance Sheets - January 31, 2010 and October 31, 2009                                                                                   | 4      |
|      |   |                                                                                                                                                  |   |
|      |   | Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three Month Periods ended January 31, 2010 and 2009                     | 6      |
|      |   |                                                                                                                                                  |   |
|      |   | Consolidated Statements of Changes in Stockholders’ Equity for the One Year and Three Month Periods ended October 31, 2009 and January 31, 2010 | 8      |
|      |   |                                                                                                                                                  |   |
|      |   | Consolidated Statements of Cash Flows for the Three Month Periods ended January 31, 2010 and 2009                                                     | 9      |
|      |   |                                                                                                                                                  |   |
|      |   | Notes to Consolidated Financial Statements                                                                                                            | 11     |
|      |   |                                                                                                                                                  |   |
| 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 .                                                                                          | 36     |
|      |   |                                                                                                                                                  |   |
| Item IV.  |   | Controls and Procedures                                                                                                                               | 36     |
|      |   |                                                                                                                                                  |   |
| Part II   |   | Other Information                                                                                                                                     | 37     |
|      |   |                                                                                                                                                  |   |
|      |   | Items 1 through 6                                                                                                                                     | 38     |
|      |   |                                                                                                                                                  |   |
|      |   | Signatures and Certifications                                                                                                                         | 39     |

----

Index

PART 

FINAN

----

Index

CAN

|                                                                                                                                                   |   | JAN. 31,    |      |   | OCT. 31,    |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|-----------|--------|-------------|--------|
|                                                                                                                                                   |   | 2010        |      |   | 2009        |   |
|                                                                                                                                                   |   | (UNAUDITED) |      |   | (UNAUDITED) |   |
| ASSETS:                                                                                                                                                |   |        |      |   |        |   |
|                                                                                                                                                   |   |        |      |   |        |   |
| CURRENT ASSETS:                                                                                                                                        |   |        |      |   |        |   |
|                                                                                                                                                   |   |        |      |   |        |   |
| CASH AND CASH EQUIVALENTS                                                                                                                              |   | $           | 105,132   |   |        | $      | 154,624 |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
| NOTES AND ACCOUNTS RECEIVABLE, NET OF AN ALLOWANCE FOR DOUBTFUL ACCOUNTS OF $ZERO AT BOTH JANUARY 31, 2010 AND OCTOBER 31, 2009,                       |   |        | 232,634   |   |        |   | 72,702 |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
| ART INVENTORY, NET OF A VALUATION ALLOWANCE OF $396,522 AT BOTH JANUARY 31, 2010 AND OCTOBER 31, 2009                                                  |   |        | 100,000   |   |        |   | 100,000 |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
| STOCKYARDS INVENTORY                                                                                                                                   |   |        | 2,850     |   |        |   | 16,586 |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
| PREPAID EXPENSES                                                                                                                                       |   |        | 32,624    |   |        |   | 16,965 |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
| TOTAL CURRENT ASSETS                                                                                                                                   |   |        | 473,240   |   |        |   | 360,877 |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
| NON-CURRENT ASSETS:                                                                                                                                    |   |        |      |   |        |   |   |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
| PROPERTY ON OPERATING LEASES, NET OF ACCUMULATED DEPRECIATION OF $453,899 AND $455,749 AT JANUARY 31, 2010 AND OCTOBER 31, 2009, RESPECTIVELY          |   |        | 1,068,057 |   |        |   | 1,073,607 |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
| PROPERTY USED IN STOCKYARD OPERATIONS, NET OF ACCUMULATED DEPRECIATION OF $181,754 AND $178,386 AT JANUARY 31, 2010 AND OCTOBER 31, 2009, RESPECTIVELY |   |        | 984,954   |   |        |   | 988,322 |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
| OTHER ASSETS:                                                                                                                                          |   |        |      |   |        |   |   |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
| PROPERTY HELD FOR DEVELOPMENT OR RESALE                                                                                                                |   |        | 272,525   |   |        |   | 272,525 |   |
| RESTRICTED CASH – LETTER OF CREDIT                                                                                                               |   |        | 130,000   |   |        |   | 130,000 |   |
| RESTRICTED CASH - TRANSIT INSURANCE                                                                                                                    |   |        | 40,910    |   |        |   | 30,690 |   |
| DEPOSITS AND OTHER ASSETS                                                                                                                              |   |        | 0         |   |        |   | 0 |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
|                                                                                                                                                   |   |        | 443,435   |   |        |   | 433,215 |   |
|                                                                                                                                                   |   |        |      |   |        |   |   |   |
|                                                                                                                                                   |   | $           | 2,969,686 |   |        | $      | 2,856,021 |   |

----

Index

|                                                                                                                                                                                                                                                       |   | JAN. 31, 2010 |        |   | OCT.31, 2009 |     |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------|--------|--------------|----------|
|                                                                                                                                                                                                                                                       |   | (UNAUDITED)   |        |   | (UNAUDITED)  |     |
|                                                                                                                                                                                                                                                       |   |          |        |   |         |     |
| LIABILITIES & STOCKHOLDERS' EQUITY:                                                                                                                                                                                                                    |   |          |        |   |         |     |
|                                                                                                                                                                                                                                                       |   |          |        |   |         |     |
| CURRENT LIABILITIES:                                                                                                                                                                                                                                       |   |          |        |   |         |     |
| ACCOUNTS PAYABLE AND ACCRUED EXPENSES                                                                                                                                                                                                                      |   | $             | 274,491     |   |         | $        | 194,394 |   |
| SALARIES AND INTEREST PAYABLE - OFFICERS                                                                                                                                                                                                                   |   |          | 110,720     |   |         |     | 0 |   |
| ACCRUED PROFESSIONAL FEES                                                                                                                                                                                                                                  |   |          | 28,394      |   |         |     | 84,570 |   |
| PREFERRED STOCK DIVIDEND PAYABLE                                                                                                                                                                                                                           |   |          | 175,735     |   |         |     | 157,735 |   |
| INCOME TAXES PAYABLE                                                                                                                                                                                                                                       |   |          | 10,000      |   |         |     | 10,000 |   |
| TOTAL CURRENT LIABILITIES                                                                                                                                                                                                                                  |   |          | 599,340     |   |         |     | 446,699 |   |
|                                                                                                                                                                                                                                                       |   |          |        |   |         |     |   |   |
|                                                                                                                                                                                                                                                       |   |          |        |   |         |     |   |   |
| NON-CURRENT LIABILITIES:                                                                                                                                                                                                                                   |   |          |        |   |         |     |   |   |
| LONG-TERM PENSION LIABILITY                                                                                                                                                                                                                                |   |          | 796,672     |   |         |     | 796,672 |   |
| REAL ESTATE TAXES PAYABLE                                                                                                                                                                                                                                  |   |          | 169,011     |   |         |     | 141,725 |   |
| TOTAL NON-CURRENT LIABILITIES                                                                                                                                                                                                                              |   |          | 965,683     |   |         |     | 938,397 |   |
|                                                                                                                                                                                                                                                       |   |          |        |   |         |     |   |   |
|                                                                                                                                                                                                                                                       |   |          |        |   |         |     |   |   |
| LONG-TERM DEBT, RELATED PARTY                                                                                                                                                                                                                              |   |          | 992,000     |   |         |     | 992,000 |   |
|                                                                                                                                                                                                                                                       |   |          |        |   |         |     |   |   |
| 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, 2010 AND OCTOBER 31, 2009, RESPECTIVELY AND AGGREGATE LIQUIDATION PREFERENCE OF $10 PER SHARE FOR $ 91,026,550 AT JANUARY 31, 2010 AND OCTOBER 31, 2009, RESPECTIVELY |   |          | 91,027      |   |         |     | 91,027 |   |
|                                                                                                                                                                                                                                                       |   |          |        |   |         |     |   |   |
| COMMON STOCK, $0.01 PAR VALUE:                                                                                                                                                                                                                             |   |          |        |   |         |     |   |   |
| 10,000,000 SHARES AUTHORIZED; 5,313,794SHARES ISSUED AND 4,326,929 SHARES OUT-STANDING AT JANUARY 31, 2010 AND OCTOBER 31, 2009, RESPECTIVELY                                                                                                              |   |          | 53,138      |   |         |     | 53,138 |   |
|                                                                                                                                                                                                                                                       |   |          |        |   |         |     |   |   |
| ADDITIONAL PAID-IN CAPITAL                                                                                                                                                                                                                                 |   |          | 28,322,341  |   |         |     | 28,322,341 |   |
|                                                                                                                                                                                                                                                       |   |          |        |   |         |     |   |   |
| ACCUMULATED DEFICIT                                                                                                                                                                                                                                        |   |          | (15,161,313 | )      |         |     | (15,068,051 | ) |
|                                                                                                                                                                                                                                                       |   |          |        |   |         |     |   |   |
| 986,865 SHARES OF COMMON STOCK HELD IN TREASURY, AT COST                                                                                                                                                                                                   |   |          | (11,003,545 | )      |         |     | (11,003,545 | ) |
|                                                                                                                                                                                                                                                       |   |          |        |   |         |     |   |   |
| COMPREHENSIVE INCOME:                                                                                                                                                                                                                                      |   |          |        |   |         |     |   |   |
| PENSION VALUATION RESERVE                                                                                                                                                                                                                                  |   |          | (1,888,985  | )      |         |     | (1,915,985 | ) |
|                                                                                                                                                                                                                                                       |   |          | 412,663     |   |         | 478,925_ |   |
|                                                                                                                                                                                                                                                       |   |          |        |   |         |     |   |   |
|                                                                                                                                                                                                                                                       |   | $             | 2,969,686   |   |         | $        | 2,856,021 |   |

----

Index

ANAL

|                                    |   | 2010        |     |   | 2009        |    |
|-----------------------------------------|--------|-------------|----------|--------|-------------|---------|
|                                    |   | (UNAUDITED) |     |   | (UNAUDITED) |    |
| REAL ESTATE OPERATIONS:                 |   |        |     |   |        |    |
|                                    |   |        |     |   |        |    |
| REAL ESTATE REVENUES:                   |   |        |     |   |        |    |
| SALE OF REAL ESTATE                     |   |        | 0        |   |        |    | 0 |   |
| OUTSIDE REAL ESTATE RENT                |   |        | 72,544   |   |        |    | 95,999 |   |
| EXCHANGE BUILDING RENTAL INCOME         |   |        | 3,686    |   |        | 7,713   |   |
|                                    |   |        | 76,230   |   |        | 103,712 |   |
|                                    |   |        |     |   |        |    |   |   |
| REAL ESTATE EXPENSES:                   |   |        |     |   |        |    |   |   |
| COST OF REAL ESTATE SOLD                |   |        | 0        |   |        |    | 0 |   |
| LABOR, OPERATING AND MAINTENANCE        |   |        | 6,456    |   |        |    | 15,166 |   |
| DEPRECIATION AND AMORTIZATION           |   |        | 5,550    |   |        |    | 5,550 |   |
| TAXES OTHER THAN INCOME TAXES           |   |        | 5,450    |   |        |    | 6,150 |   |
| GENERAL AND ADMINISTRATIVE              |   |        | 4,800    |   |        | 9,900   |   |
|                                    |   |        | 22,256   |   |        | 36,766  |   |
|                                    |   |        |     |   |        |    |   |   |
| INCOME FROM REAL ESTATE OPERATIONS      |   |        | 53,974   |   |        | 66,946  |   |
|                                    |   |        |     |   |        |    |   |   |
|                                    |   |        |     |   |        |    |   |   |
| STOCKYARD OPERATIONS:                   |   |        |     |   |        |    |   |   |
|                                    |   |        |     |   |        |    |   |   |
| STOCKYARD REVENUES:                     |   |        |     |   |        |    |   |   |
| YARD HANDLING AND AUCTION               |   | $           | 494,423  |   |        | $       | 715,872 |   |
| FEED AND BEDDING INCOME                 |   |        | 27,700   |   |        |    | 58,034 |   |
| RENTAL & OTHER INCOME               |   |        | 136,258  |   |        | 40,609  |   |
|                                    |   |        | 658,381  |   |        | 814,515 |   |
|                                    |   |        |     |   |        |    |   |   |
| STOCKYARD EXPENSES:                     |   |        |     |   |        |    |   |   |
| LABOR AND RELATED COSTS                 |   |        | 264,743  |   |        |    | 350,006 |   |
| OTHER OPERATING AND MAINTENANCE         |   |        | 140,057  |   |        |    | 183,869 |   |
| FEED AND BEDDING EXPENSE                |   |        | 24,849   |   |        |    | 42,877 |   |
| DEPRECIATION AND AMORTIZATION           |   |        | 3,368    |   |        |    | 4,954 |   |
| TAXES OTHER THAN INCOME TAXES           |   |        | 39,954   |   |        |    | 44,163 |   |
| GENERAL AND ADMINISTRATIVE              |   |        | 77,996   |   |        | 100,163 |   |
|                                    |   |        | 550,967  |   |        | 726,032 |   |
|                                    |   |        |     |   |        |    |   |   |
| INCOME (LOSS) FROM STOCKYARD OPERATIONS |   |        | 107,414  |   |        | 88,483  |   |
|                                    |   |        |     |   |        |    |   |   |
|                                    |   |        |     |   |        |    |   |   |
| GENERAL AND ADMINISTRATIVE EXPENSE      |   |        | (211,946 | )      |        |    | (224,683 | ) |
|                                    |   |        |     |   |        |    |   |   |
|                                    |   |        |     |   |        |    |   |   |
| (LOSS) INCOME FROM OPERATIONS           |   |        | (50,558  | )      |        |    | (69,254 | ) |

----

Index

|                                                 |   | 2010        |      |   | 2009        |   |
|------------------------------------------------------|--------|-------------|-----------|--------|-------------|--------|
|                                                 |   | (UNAUDITED) |      |   | (UNAUDITED) |   |
|                                                 |   |        |      |   |        |   |
| OTHER (EXPENSE) INCOME:                              |   |        |      |   |        |   |
| INTEREST & OTHER INCOME                          |   |        | 126       |   |        |   | 177 |   |
| INTEREST EXPENSE                                     |   |        | (24,830   | )      |        |   | (31,550 | ) |
| ART SALES AND OPERATIONS                             |   |        | 0         |   |        |   | (1,200 | ) |
|                                                 |   |        |      |   |        |   |   |   |
|                                                 |   |        | (24,704   | )      |        |   | (32,573 | ) |
|                                                 |   |        |      |   |        |   |   |   |
|                                                 |   |        |      |   |        |   |   |   |
| (LOSS) INCOME BEFORE PROVISION FOR                   |   |        |      |   |        |   |   |   |
| INCOME TAXES                                         |   |        | (75,262   | )      |        |   | (101,827 | ) |
| PROVISION FOR INCOME TAXES                           |   |        | 0         |   |        | 0      |   |
|                                                 |   |        |      |   |        |   |   |   |
| NET (LOSS) INCOME                                    |   |        | (75,262   | )      |        |   | (101,827 | ) |
|                                                 |   |        |      |   |        |   |   |   |
|                                                 |   |        |      |   |        |   |   |   |
| OTHER COMPREHENSIVE (LOSS) INCOME:                   |   |        |      |   |        |   |   |   |
|                                                 |   |        |      |   |        |   |   |   |
| MINIMUM PENSION LIABILITY ADJUSTMENT                 |   |        | 27,000    |   |        | 30,000 |   |
|                                                 |   |        |      |   |        |   |   |   |
|                                                 |   |        |      |   |        |   |   |   |
| COMPREHENSIVE (LOSS) INCOME                          |   | $           | (48,262   | )      |        | $      | (71,827 | ) |
|                                                 |   |        |      |   |        |   |   |   |
|                                                 |   |        |      |   |        |   |   |   |
| (LOSS) EARNINGS PER COMMON SHARE:                    |   |        |      |   |        |   |   |   |
|                                                 |   |        |      |   |        |   |   |   |
| NET (LOSS) INCOME                                    |   | $           | (75,262   | )      |        | $      | (101,827 | ) |
|                                                 |   |        |      |   |        |   |   |   |
| LESS PREFERRED STOCK DIVIDEND                        |   |        | (18,000   | )      |        |   | (18,000 | ) |
|                                                 |   |        |      |   |        |   |   |   |
| (LOSS) INCOME AVAILABLE TO COMMON STKDERS            |   | $           | (93,262   | )      |        | $      | (119,827 | ) |
|                                                 |   |        |      |   |        |   |   |   |
|                                                 |   |        |      |   |        |   |   |   |
| NET (LOSS) INCOME PER COMMON SHARE BASIC AND DILUTED |   | $           | (0.02     | )      |        | $      | (0.03 | ) |
|                                                 |   |        |      |   |        |   |   |   |
|                                                 |   |        |      |   |        |   |   |   |
| AVERAGE SHARES OUTSTANDING – BASIC AND DILUTED |   |        | 4,326,929 |   |        |   | 4,326,929 |   |

----

Index

CANAL

|                      |   | COMMON STOCK             |       |   | PREFERRED STOCK            |   |
|---------------------------|--------|--------------------------|------------|--------|----------------------------|--------|
|                      |   | NUMBEROFSHARES           |       |   | AMOUNT                     |   |   | NUMBEROFSHARES |   |   | AMOUNT |   |
|                      |   |                     |       |   |                       |   |   |   |   |   |   |   |
| BALANCE, OCTOBER 31, 2008 |   |                     | 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, 2009 |   |                     | 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, 2010 |   |                     | 5,313,794  |   |                       | $      | 53,138 |   |   |   | 9,102,655 |   |   | $ | 91,027 |   |
|                      |   |                     |       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
|                      |   |                     |       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
|                      |   | ADDITIONALPAID-INCAPITAL |       |   | TREASURYACCUMULATEDDEFICIT |   |   | COMPREHENSIVLOSS |   |   | STOCK,AT COST |   |
|                      |   |                     |       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE, OCTOBER 31, 2008 |   | $                        | 28,322,341 |   |                       | $      | (15,025,327 | ) |   | $ | (1,706,472 | ) |   | $ | (11,003,545 | ) |
| NET INCOME                |   |                     | 0          |   |                       |   | 30,299 |   |   |   | 0 |   |   |   | 0 |   |
| PREFERRED STOCK DIVIDEND  |   |                     | 0          |   |                       |   | (73,023 | ) |   |   | 0 |   |   |   | 0 |   |
| MINIMUM PEN. LIAB. ADJ.   |   |                     | 0          |   |                       |   | 0 |   |   |   | (209,513 | ) |   |   | 0 |   |
|                      |   |                     |       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE, OCTOBER 31, 2009 |   | $                        | 28,322,341 |   |                       | $      | (15,068,051 | ) |   | $ | (1,915,985 | ) |   | $ | (11,003,545 | ) |
| NET LOSS                  |   |                     | 0          |   |                       |   | (75,262 | ) |   |   | 0 |   |   |   | 0 |   |
| PREFERRED STOCK DIVIDEND  |   |                     | 0          |   |                       |   | (18,000 | ) |   |   | 0 |   |   |   | 0 |   |
| MINIMUM PEN. LIAB. ADJ.   |   |                     | 0          |   |                       |   | 0 |   |   |   | 27,000 |   |   |   | 0 |   |
| BALANCE, JANUARY 31, 2010 |   | $                        | 28,322,341 |   |                       | $      | (15,161,313 | ) |   | $ | (1,888,985 | ) |   | $ | (11,003,545 | ) |

----

Index

CA

|                                                                                      |   | JAN. 2010 |     |   | JAN. 2009 |   |
|-------------------------------------------------------------------------------------------|--------|-----------|----------|--------|-----------|--------|
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                     |   |      |     |   |      |   |
| NET (LOSS) INCOME                                                                         |   | $         | (75,262  | )      |      | $      | (101,827 | ) |
|                                                                                      |   |      |     |   |      |   |   |   |
|                                                                                      |   |      |     |   |      |   |   |   |
| ADJUSTMENTS TO RECONCILE NET LOSS TO NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES: |   |      |     |   |      |   |   |   |
|                                                                                      |   |      |     |   |      |   |   |   |
| DEPRECIATION AND AMORTIZATION                                                             |   |      | 8,918    |   |      |   | 10,504 |   |
|                                                                                      |   |      |     |   |      |   |   |   |
| GAIN ON SALES OF REAL ESTATE                                                              |   |      | 0        |   |      |   | 0 |   |
|                                                                                      |   |      |     |   |      |   |   |   |
| MINIMUM PENSION LIABILITY ADJUSTMENT                                                      |   |      | 27,000   |   |      |   | 30,000 |   |
|                                                                                      |   |      |     |   |      |   |   |   |
| DECREASE (INCREASE) IN ASSETS:                                                            |   |      |     |   |      |   |   |   |
|                                                                                      |   |      |     |   |      |   |   |   |
|                                                                                      |   |      |     |   |      |   |   |   |
| NOTES AND ACCOUNTS RECEIVABLE                                                             |   |      | (159,932 | )      |      |   | (64,883 | ) |
|                                                                                      |   |      |     |   |      |   |   |   |
| STOCKYARDS INVENTORY                                                                      |   |      | 13,736   |   |      |   | 12,507 |   |
|                                                                                      |   |      |     |   |      |   |   |   |
| PREPAID EXPENSES                                                                          |   |      | (15,659  | )      |      |   | (35,480 | ) |
|                                                                                      |   |      |     |   |      |   |   |   |
| RESTRICTED CASH – LETTER OF CREDIT                                                  |   |      | 0        |   |      |   | 0 |   |
|                                                                                      |   |      |     |   |      |   |   |   |
| RESTRICTED CASH – TRANSIT INSURANCE                                                 |   |      | (10,220  | )      |      |   | (13,709 | ) |
|                                                                                      |   |      |     |   |      |   |   |   |
| INCREASE (DECREASE) IN LIABILITIES:                                                       |   |      |     |   |      |   |   |   |
|                                                                                      |   |      |     |   |      |   |   |   |
| ACCOUNTS PAYABLE AND ACCRUED EXPENSES                                                     |   |      | 80,097   |   |      |   | 19,975 |   |
|                                                                                      |   |      |     |   |      |   |   |   |
| PENSION PLAN PAYABLE                                                                      |   |      | 0        |   |      |   | 0 |   |
|                                                                                      |   |      |     |   |      |   |   |   |
| PAYABLE TO EXECUTIVE OFFICERS                                                             |   |      | 110,720  |   |      |   | 128,550 |   |
|                                                                                      |   |      |     |   |      |   |   |   |
| ACCRUED PROFESSIONAL FEES                                                                 |   |      | (56,176  | )      |      |   | (15,741 | ) |
|                                                                                      |   |      |     |   |      |   |   |   |
| REAL ESTATE TAXES PAYABLE                                                                 |   |      | 27,286   |   |      |   | 28,651 |   |
|                                                                                      |   |      |     |   |      |   |   |   |
| TOTAL ADJUSTMENTS                                                                         |   |      | 25,770   |   |      |   | 100,374 |   |
|                                                                                      |   |      |     |   |      |   |   |   |
|                                                                                      |   |      |     |   |      |   |   |   |
| NET CASH (USED IN) PROVIDED BY                                                            |   |      |     |   |      |   |   |   |
| OPERATING ACTIVITIES                                                                      |   |      | (49,492  | )      |      |   | (1,453 | ) |

----

Index

|                                                   |   | JAN. 2010 |    |   | JAN. 2009 |   |
|--------------------------------------------------------|--------|-----------|---------|--------|-----------|--------|
|                                                   |   |      |    |   |      |   |
| 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) IN CASH AND CASH EQUIVALENTS            |   |      | (49,492 | )      |      |   | (1,453 | ) |
|                                                   |   |      |    |   |      |   |   |   |
| CASH AND CASH EQUIVALENTS AT BEGN OF YEAR              |   |      | 154,624 |   |      |   | 21,115 |   |
|                                                   |   |      |    |   |      |   |   |   |
|                                                   |   |      |    |   |      |   |   |   |
| CASH AND CASH EQUIVALENTS AT END OF YEAR               |   | $         | 105,132 |   |      | $      | 19,662 |   |

|                                                                  |   | JAN. 31, |   |
|-----------------------------------------------------------------------|--------|----------|--------|
|                                                                  |   | 2010     |   |   | 2009 |   |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:                    |   |     |   |   |   |   |
|                                                                  |   |     |   |   |   |   |
| CASH PAID DURING THE YEAR FOR:                                        |   |     |   |   |   |   |
|                                                                  |   |     |   |   |   |   |
| INTEREST                                                              |   | $        | 24,830 |   |   | $ | 31,550 |   |
| 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 |
|----|---------------------------------------------------|

----

Index

----

Index

----

Index

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

----

Index

----

Index

----

Index

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

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

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Index

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

|                             |   | Jan. 31, |   |   | October 31, |   |
|----------------------------------|--------|----------|--------|--------|-------------|--------|
| ($ 000's Omitted)                |   | 2010     |   |   | 2009        |   |
| Variable rate mortgage notes due |   |     |   |   |        |   |
| May 15, 2012 - related party     |   | $        | 992    |   |        | $      | 992 |   |
| Less -- current maturities       |   |     | 0      |   |        |   | 0 |   |
| Long-term debt                   |   | $        | 992    |   |        | $      | 992 |   |

|                       |   |   |   |   |             |   |   |             |   |   |       |   |   |            |   |
|----------------------------|--------|--------|--------|--------|------------------|--------|--------|------------------|--------|--------|------------|--------|--------|-----------------|--------|
|                       |   |   |   |   |             |   |   |             |   |   |       |   |   |            |   |
|                       |   | Total  |   |   | Less Than 1 year |   |   | 1 – 3Years |   |   | 3 - 5Years |   |   | More Than 5Yrs. |   |
|                       |   |   |   |   |             |   |   |             |   |   |       |   |   |            |   |
| Pension Plan Liability (a) |   | $      | 797    |   |             | $      | 58     |             |   | $      | 500        |   |   | $               | 239    |   |   | $ | 0 |   |
| Mortgage Notes Payable (b) |   |   | 992    |   |             |   | 0      |             |   |   | 992        |   |   |            | 0      |   |   |   | 0 |   |
|                       |   | $      | 1,789  |   |             | $      | 58     |             |   | $      | 1,492      |   |   | $               | 239    |   |   | $ | 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. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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 |
|-----|--------------------------------------------|

----

Index

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

|                                                |   | Historical Cost Bldgs. & |   |   |      |   |   | Current Year(RetirementsAdditions Bldgs. & Accum |   |   | Carrying Value |   |
|-----------------------------------------------------|--------|------------------------------|--------|--------|-----------|--------|--------|------------------------------------------------------|--------|--------|----------------|--------|
| Description (1)                                     |   | Land                         |   |   | Imprvmts. |   |   | Land                                                 |   |   | Imprvmts.      |   |   | Depr. |   |   | 01/31/10 |   |
| 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 |   |   |   | (17 | ) |   |   | 804 |   |
|                                                |   |                         |   |   |      |   |   |                                                 |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 3 acres of land in S. St. Paul, MN Acquired in 1937 |   |                         | 10     |   |      |   | 485    |                                                 |   |   | 0              |   |   |   | 0 |   |   |   | (431 | ) |   |   | 64 |   |
|                                                |   |                         |   |   |      |   |   |                                                 |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 4 acres of land in Sioux City, IA Acquired in 1937  |   |                         | 200    |   |      |   | 0      |                                                 |   |   | 0              |   |   |   | 0 |   |   |   | 0 |   |   |   | 200 |   |
|                                                |   | $                            | 1,210  |   |      | $      | 514    |                                                 |   | $      | 0              |   |   | $ | 0 |   |   | $ | (456 | ) |   | $ | 1,068 |   |

|                          |   | Jan. 31, |   |   | October 31, |   |
|-------------------------------|--------|----------|--------|--------|-------------|--------|
|                          |   | 2010     |   |   | 2009        |   |
| Balance at beginning of year  |   | $        | 1,074  |   |        | $      | 1,646 |   |
| Acquisitions and Improvements |   |     | 0      |   |        |   | 0 |   |
| Cost of property sold         |   |     | 0      |   |        |   | (550 | ) |
| Depreciation                  |   |     | (16    | )      |        |   | (22 | ) |
| Reclassifications             |   |     | 0      |   |        |   | 0 |   |
| Balance at end of the period  |   | $        | 1,068  |   |        | $      | 1,074 |   |

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

----

Index

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

|                                                |   | Historical Cost Bldgs. & |   |   | Current Year(RetirementsAdditions Bldgs. & Accum |   |   |   |   |   | Carrying Value |   |
|-----------------------------------------------------|--------|------------------------------|--------|--------|------------------------------------------------------|--------|--------|--------|--------|--------|----------------|--------|
| Description (1)                                     |   | Land                         |   |   | Imprvmts.                                            |   |   | Land   |   |   | Imprvmts.      |   |   | Depr. |   |   | 01/31/10 |   |
|                                                |   |                         |   |   |                                                 |   |   |   |   |   |           |   |   |   |   |   |   |   |
|                                                |   |                         |   |   |                                                 |   |   |   |   |   |           |   |   |   |   |   |   |   |
| 30 acres of land in St. Joseph, MO Acquired in 1942 |   | $                            | 902    |   |                                                 | $      | 265    |   |   | $      | 0              |   |   | $ | 0 |   |   | $ | (182 | ) |   | $ | 985 |   |

|                          |   | Jan. 31, |   |   | October 31, |        |
|-------------------------------|--------|----------|--------|--------|-------------|-------------|
|                          |   | 2010     |   |   | 2009        |        |
|                          |   |     |   |   |        |        |
| Balance at beginning of year  |   | $        | 988    |   |        | $           | 1,125 |   |
| Acquisitions and Improvements |   |     | 0      |   |        |        | 0 |   |
| Transfers                     |   |     | 0      |   |        |        | (116 | ) |
| Depreciation                  |   |     | (3     | )      |        |        | (21 | ) |
| Balance at end of the period  |   | $        | 985    |   |        | $ 988_ |   |

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

----

Index

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

|                                                 |   | Historical Cost Bldgs. & |      |   | Current Year(RetirementsAdditions Bldgs. & Accum |   |      |   |   |    | Carrying Value |   |
|------------------------------------------------------|--------|------------------------------|-----------|--------|------------------------------------------------------|--------|-----------|--------|--------|---------|----------------|--------|
| Description (1)                                      |   | Land                         |      |   | Imprvmts.                                            |   |      | Land   |   |    | Imprvmts.      |   |   | Depr. |   |   | 01/31/10 |   |
|                                                 |   |                         |      |   |                                                 |   |      |   |   |    |           |   |   |   |   |   |   |   |
| 35 acres of land in Sioux Falls, SD Acquired in 1937 |   | $                       |  220 |   |                                                 |   |  N/A |   |   | $  |  0        |   |   |   |  N/A |   |   |   |  N/A |   |   | $  | 225 |   |
|                                                 |   |                         |      |   |                                                 |   |      |   |   |    |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2 acres of land in Sioux City, IA Acquired in 1937   |   |                         | 53        |   |                                                 |   | N/A       |   |   | $       | 0              |   |   |   | N/A |   |   |   | N/A |   |   |   | 53 |   |
|                                                 |   |                         |      |   |                                                 |   |      |   |   |    |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                 |   | $                            | 273       |   |                                                 | $      | 0         |   |   | $       | 0              |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 273 |   |

|                          |   | Jan. 31, |   |   | October 31, |   |
|-------------------------------|--------|----------|--------|--------|-------------|--------|
|                          |   | 2010     |   |   | 2009        |   |
|                          |   |     |   |   |        |   |
| Balance at beginning of year  |   | $        | 273$   |   |        |   | 92 |   |
| Acquisitions and Improvements |   |     | 0      |   |        |   | 0 |   |
| Cost of property sold         |   |     | 0      |   |        |   | (39 | ) |
| Reclassification of property  |   |     | 0      |   |        |   | 220 |   |
| Balance at end of the period  |   | $        | 273    |   |        | $      | 273 |   |

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

----

Index

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

|                               |   | Nine Months Ended |    |
|------------------------------------|--------|-------------------|---------|
|                               |   | 1/31/10           |    |   | 1/31/09 |   |
|                               |   |              |    |   |   |   |
|                               |   |              |    |   |   |   |
| 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 |
|-----|-------------|

----

Index

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

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

----

Index

| ITEM II. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE RESULTS OF OPERATIONS AND FINANCIAL CONDITION FOR THE THREEE MONTHS ENDED JANUARY 31, 2010 |
|----------|----------------------------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

----

Index

----

Index

----

Index

|                                |   | Three Months Ended January 31, |   |
|-------------------------------------|--------|--------------------------------|--------|
|                                |   | 2010                           |   |   | 2009 |   |
| (In Thousands)                      |   |                           |   |   |   |   |
| Revenues:                           |   |                           |   |   |   |   |
| Real Estate Revenues                |   | $                              | 76     |   |   | $ | 104 |   |
| Stockyard Revenues                  |   |                           | 659    |   |   |   | 815 |   |
| Total Revenues                      |   |                           | 735    |   |   |   | 919 |   |
|                                |   |                           |   |   |   |   |   |   |
| Costs and Expenses:                 |   |                           |   |   |   |   |   |   |
| Real Estate Expenses                |   |                           | 22     |   |   |   | 37 |   |
| Stockyard Expenses                  |   |                           | 551    |   |   |   | 726 |   |
| General and Administrative Expenses |   |                           | 212    |   |   |   | 225 |   |
| Total Costs and Expenses            |   |                           | 785    |   |   |   | 988 |   |
|                                |   |                           |   |   |   |   |   |   |
| (Loss) Income from Operations       |   |                           | (50    | ) |   |   | (69 | ) |
|                                |   |                           |   |   |   |   |   |   |
| Other Income                        |   |                           | 0      |   |   |   | 0 |   |
| Other Expenses                      |   |                           | (25    | ) |   |   | (33 | ) |
| Net (Loss) Income                   |   | $                              | (75    | ) |   | $ | 102 |   |

----

Index

----

Index

----

Index

Liquidity and Capital Resources

----

Index

t

----

Index

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

| As of      |   |   | Fixed rate |      |   | Average       |   |   | Fair   |
|------------|--------|--------|------------|-----------|--------|---------------|--------|--------|--------|
| Jan. 31,   |   |   | ($ US)     |      |   | Interest Rate |   |   | Value  |
| 2010       |   |   | $          | 0         |   |          |   | N/A    |   |   |   |
| 2011       |   |   |       | 0         |   |          |   | N/A    |   |   |   |
| 2012       |   |   |       | 992       |   |          |   | 10     | %      |   |   |
| 2013       |   |   |       | 0         |   |          |   | N/A    |   |   |   |
| 2014       |   |   |       | 0         |   |          |   | N/A    |   |   |   |
| Thereafter |   |   |       | 0         |   |          |   | N/A    |   |   |   |
| Total      |   |   | $          |  992 |   |          |   |   |   |   | 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

em

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

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

----

Index

IGNATU

|   | 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 9, 2010 |
|                   |   |                           |   |          |
|                   |   | Vice President-Finance         |   |          |
|                   |   | Secretary and Treasurer        |   |          |
| /S/ Reginald Schauder  |   | (Principal Financial and       |   |          |
| Reginald Schauder      |   | Accounting Officer)            |   | March 9, 2010 |
|                   |   |                           |   |          |
|                   |   |                           |   |          |
| /S/ Asher B. Edelman   |   | Chairman of the Board          |   |          |
| Asher B. Edelman       |   | and Director                   |   | March 9, 2010 |

----