----

----

|   | x | QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) of THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|---|-----------------------------------------------------------------------------------------|

|   |  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|--------|------------------------------------------------------------------------------------------|

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

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

----

----

----

CA

| The following documents are filed as part of this report:                                  |                                                                                                                                              |
|--------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                       |                                                                                                                                              |   |
| Part I - Financial Information                                                             | 3                                                                                                                                                 |
|                                                                                       |                                                                                                                                              |   |
| Item I   Condensed Financial Statements:                                    |                                                                                                                                              |
|                                                                                       |                                                                                                                                              |   |
|                                                                                       | Consolidated Balance Sheets - April 30, 2010 and October 31, 2009                                                                                 | 4 |
|                                                                                       |                                                                                                                                              |   |
|                                                                                       | Consolidated Statements of Operations and Comprehensive Income (Loss) for the Six Month Periods ended April 30, 2010 and 2009                     | 6 |
|                                                                                       |                                                                                                                                              |   |
|                                                                                       | Consolidated Statements of Changes in Stockholders’ Equity for the One Year and Six Month Periods ended October 31, 2009 and April 30, 2010 | 10 |
|                                                                                       |                                                                                                                                              |   |
|                                                                                       | Consolidated Statements of Cash Flows for the Six Month Periods ended April 30, 2010 and 2009                                                     | 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                                                                                                                                     | 39 |
|                                                                                       |                                                                                                                                              |   |
| Item III   Quantitative and Qualitative Disclosures About Market Risk       | 39                                                                                                                                                |
|                                                                                       |                                                                                                                                              |   |
| Item IV    Controls and Procedures                                     | 40                                                                                                                                                |
|                                                                                       |                                                                                                                                              |   |
| Part II    Other Information                                           | 41                                                                                                                                                |
|                                                                                       |                                                                                                                                              |   |
|                                                                                       | Items 1 through 6                                                                                                                                 | 42 |
|                                                                                       |                                                                                                                                              |   |
|                                                                                       | Signatures and Certifications                                                                                                                     | 43 |

----

Index

PA

FI

----

Index

C

|                                                                                                                                                 |   | APR. 30,    |      |   | OCT. 31,    |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|-----------|--------|-------------|--------|
|                                                                                                                                                 |   | 2010        |      |   | 2009        |   |
|                                                                                                                                                 |   | (UNAUDITED) |      |   | (UNAUDITED) |   |
| ASSETS:                                                                                                                                              |   |        |      |   |        |   |
|                                                                                                                                                 |   |        |      |   |        |   |
| CURRENT ASSETS:                                                                                                                                      |   |        |      |   |        |   |
|                                                                                                                                                 |   |        |      |   |        |   |
| CASH AND CASH EQUIVALENTS                                                                                                                            |   | $           | 118,331   |   |        | $      | 154,624 |   |
|                                                                                                                                                 |   |        |      |   |        |   |   |   |
| NOTES AND ACCOUNTS RECEIVABLE, NET OF AN ALLOWANCE FOR DOUBTFUL ACCOUNTS OF $ZERO AT BOTH APRIL 30, 2010 AND OCTOBER 31, 2009,                       |   |        | 258,919   |   |        |   | 72,702 |   |
|                                                                                                                                                 |   |        |      |   |        |   |   |   |
| ART INVENTORY, NET OF A VALUATION ALLOWANCE OF $396,522 AT BOTH APRIL 30, 2010 AND OCTOBER 31, 2009                                                  |   |        | 100,000   |   |        |   | 100,000 |   |
|                                                                                                                                                 |   |        |      |   |        |   |   |   |
| STOCKYARDS INVENTORY                                                                                                                                 |   |        | 22,428    |   |        |   | 16,586 |   |
|                                                                                                                                                 |   |        |      |   |        |   |   |   |
| PREPAID EXPENSES                                                                                                                                     |   |        | 41,501    |   |        |   | 16,965 |   |
|                                                                                                                                                 |   |        |      |   |        |   |   |   |
| TOTAL CURRENT ASSETS                                                                                                                                 |   |        | 541,179   |   |        |   | 360,877 |   |
|                                                                                                                                                 |   |        |      |   |        |   |   |   |
|                                                                                                                                                 |   |        |      |   |        |   |   |   |
| NON-CURRENT ASSETS:                                                                                                                                  |   |        |      |   |        |   |   |   |
|                                                                                                                                                 |   |        |      |   |        |   |   |   |
| PROPERTY ON OPERATING LEASES, NET OF ACCUMULATED DEPRECIATION OF $461,299 AND $455,749 AT APRIL 30, 2010 AND OCTOBER 31, 2009, RESPECTIVELY          |   |        | 1,402,507 |   |        |   | 1,073,607 |   |
|                                                                                                                                                 |   |        |      |   |        |   |   |   |
|                                                                                                                                                 |   |        |      |   |        |   |   |   |
| PROPERTY USED IN STOCKYARD OPERATIONS, NET OF ACCUMULATED DEPRECIATION OF $185,122 AND $178,386 AT APRIL 30, 2010 AND OCTOBER 31, 2009, RESPECTIVELY |   |        | 981,587   |   |        |   | 988,322 |   |
|                                                                                                                                                 |   |        |      |   |        |   |   |   |
|                                                                                                                                                 |   |        |      |   |        |   |   |   |
| OTHER ASSETS:                                                                                                                                        |   |        |      |   |        |   |   |   |
|                                                                                                                                                 |   |        |      |   |        |   |   |   |
| PROPERTY HELD FOR DEVELOPMENT OR RESALE                                                                                                              |   |        | 272,525   |   |        |   | 272,525 |   |
| RESTRICTED CASH – LETTER OF CREDIT                                                                                                             |   |        | 140,000   |   |        |   | 130,000 |   |
| RESTRICTED CASH - TRANSIT INSURANCE                                                                                                                  |   |        | 50,240    |   |        |   | 30,690 |   |
| DEPOSITS AND OTHER ASSETS                                                                                                                            |   |        | 0         |   |        |   | 0 |   |
|                                                                                                                                                 |   |        |      |   |        |   |   |   |
|                                                                                                                                                 |   |        | 462,765   |   |        |   | 433,215 |   |
|                                                                                                                                                 |   |        |      |   |        |   |   |   |
|                                                                                                                                                 |   | $           | 3,388,038 |   |        | $      | 2,856,021 |   |

----

Index

| LIABILITIES & STOCKHOLDERS' EQUITY:                                                                                                                                                                                                                                                  |   | APR. 31, 2010 |        |   | OCT.31, 2009 |     |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------|--------|--------------|----------|
|                                                                                                                                                                                                                                                                                     |   | (UNAUDITED)   |        |   | (UNAUDITED)  |     |
| CURRENT LIABILITIES:                                                                                                                                                                                                                                                                     |   |          |        |   |         |     |
| ACCOUNTS PAYABLE AND ACCRUED EXPENSES                                                                                                                                                                                                                                                    |   | $             | 341,201     |   |         | $        | 194,394 |   |
| SALARIES AND INTEREST PAYABLE - OFFICERS                                                                                                                                                                                                                                                 |   |          | 223,700     |   |         |     | 0 |   |
| ACCRUED PROFESSIONAL FEES                                                                                                                                                                                                                                                                |   |          | 19,558      |   |         |     | 84,570 |   |
| PREFERRED STOCK DIVIDEND PAYABLE                                                                                                                                                                                                                                                         |   |          | 193,735     |   |         |     | 157,735 |   |
| INCOME TAXES PAYABLE                                                                                                                                                                                                                                                                     |   |          | 10,000      |   |         |     | 10,000 |   |
| TOTAL CURRENT LIABILITIES                                                                                                                                                                                                                                                                |   |          | 788,194     |   |         |     | 446,699 |   |
|                                                                                                                                                                                                                                                                                     |   |          |        |   |         |     |   |   |
|                                                                                                                                                                                                                                                                                     |   |          |        |   |         |     |   |   |
| NON-CURRENT LIABILITIES:                                                                                                                                                                                                                                                                 |   |          |        |   |         |     |   |   |
| LONG-TERM PENSION LIABILITY                                                                                                                                                                                                                                                              |   |          | 796,672     |   |         |     | 796,672 |   |
| REAL ESTATE TAXES PAYABLE                                                                                                                                                                                                                                                                |   |          | 98,420      |   |         |     | 141,725 |   |
| TOTAL NON-CURRENT LIABILITIES                                                                                                                                                                                                                                                            |   |          | 895,092     |   |         |     | 938,397 |   |
|                                                                                                                                                                                                                                                                                     |   |          |        |   |         |     |   |   |
|                                                                                                                                                                                                                                                                                     |   |          |        |   |         |     |   |   |
| LONG-TERM DEBT, RELATED PARTY                                                                                                                                                                                                                                                            |   |          | 1,332,000   |   |         |     | 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 APRIL 30, 2010 AND OCTOBER 31, 2009, RESPECTIVELY AND AGGREGATE LIQUIDATION PREFERENCE OF $10 PER SHARE FOR $ 91,026,550 AT APRIL 30, 2010 AND OCTOBER 31, 2009, 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, 2010 AND OCTOBER 31, 2009, RESPECTIVELY                                                                                                             |   |          | 53,138      |   |         |     | 53,138 |   |
|                                                                                                                                                                                                                                                                                     |   |          |        |   |         |     |   |   |
| ADDITIONAL PAID-IN CAPITAL                                                                                                                                                                                                                                                               |   |          | 28,322,341  |   |         |     | 28,322,341 |   |
|                                                                                                                                                                                                                                                                                     |   |          |        |   |         |     |   |   |
| ACCUMULATED DEFICIT                                                                                                                                                                                                                                                                      |   |          | (15,228,224 | )      |         |     | (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                                                                                                                                                                                                                                                                |   |          | (1,861,985  | )      |         |     | (1,915,985 | ) |
|                                                                                                                                                                                                                                                                                     |   |          | 372,752     |   |         | 478,925_ |   |
|                                                                                                                                                                                                                                                                                     |   |          |        |   |         |     |   |   |
|                                                                                                                                                                                                                                                                                     |   | $             | 3,388,038   |   |         | $        | 2,856,021 |   |

----

Index

A

|                                    |   | 2010        |      |   | 2009        |      |
|-----------------------------------------|--------|-------------|-----------|--------|-------------|-----------|
|                                    |   | (UNAUDITED) |      |   | (UNAUDITED) |      |
| REAL ESTATE OPERATIONS:                 |   |        |      |   |        |      |
|                                    |   |        |      |   |        |      |
| REAL ESTATE REVENUES:                   |   |        |      |   |        |      |
| SALE OF REAL ESTATE                     |   |        | 0         |   |        |      | 262,720 |   |
| OUTSIDE REAL ESTATE RENT                |   |        | 139,814   |   |        |      | 193,044 |   |
| EXCHANGE BUILDING RENTAL INCOME         |   |        | 7,279     |   |        | 15,387    |   |
|                                    |   |        | 147,093   |   |        | 471,151   |   |
|                                    |   |        |      |   |        |      |   |   |
| REAL ESTATE EXPENSES:                   |   |        |      |   |        |      |   |   |
| COST OF REAL ESTATE SOLD                |   |        | 0         |   |        |      | 69,069 |   |
| LABOR, OPERATING AND MAINTENANCE        |   |        | 13,578    |   |        |      | 29,630 |   |
| DEPRECIATION AND AMORTIZATION           |   |        | 11,100    |   |        |      | 11,100 |   |
| TAXES OTHER THAN INCOME TAXES           |   |        | 11,000    |   |        |      | 12,300 |   |
| GENERAL AND ADMINISTRATIVE              |   |        | 9,616     |   |        | 19,800    |   |
|                                    |   |        | 45,294    |   |        | 141,899   |   |
|                                    |   |        |      |   |        |      |   |   |
| INCOME FROM REAL ESTATE OPERATIONS      |   |        | 101,799   |   |        | 329,252   |   |
|                                    |   |        |      |   |        |      |   |   |
|                                    |   |        |      |   |        |      |   |   |
| STOCKYARD OPERATIONS:                   |   |        |      |   |        |      |   |   |
|                                    |   |        |      |   |        |      |   |   |
| STOCKYARD REVENUES:                     |   |        |      |   |        |      |   |   |
| YARD HANDLING AND AUCTION               |   | $           | 1,076,161 |   |        | $         | 1,479,436 |   |
| FEED AND BEDDING INCOME                 |   |        | 58,019    |   |        |      | 115,691 |   |
| RENTAL & OTHER INCOME               |   |        | 180,341   |   |        | 89,675    |   |
|                                    |   |        | 1,314,521 |   |        | 1,684,802 |   |
|                                    |   |        |      |   |        |      |   |   |
| STOCKYARD EXPENSES:                     |   |        |      |   |        |      |   |   |
| LABOR AND RELATED COSTS                 |   |        | 464,207   |   |        |      | 679,897 |   |
| OTHER OPERATING AND MAINTENANCE         |   |        | 274,881   |   |        |      | 405,622 |   |
| FEED AND BEDDING EXPENSE                |   |        | 50,299    |   |        |      | 92,148 |   |
| DEPRECIATION AND AMORTIZATION           |   |        | 6,735     |   |        |      | 9,909 |   |
| TAXES OTHER THAN INCOME TAXES           |   |        | 80,386    |   |        |      | 90,021 |   |
| GENERAL AND ADMINISTRATIVE              |   |        | 189,482   |   |        |      | 223,412 |   |
|                                    |   |        | 1,065,990 |   |        |      | 1,501,009 |   |
|                                    |   |        |      |   |        |      |   |   |
| INCOME (LOSS) FROM STOCKYARD OPERATIONS |   |        | 248,531   |   |        | 183,793   |   |
|                                    |   |        |      |   |        |      |   |   |
|                                    |   |        |      |   |        |      |   |   |
| GENERAL AND ADMINISTRATIVE EXPENSE      |   |        | (419,854  | )      |        |      | (449,428 | ) |
|                                    |   |        |      |   |        |      |   |   |
|                                    |   |        |      |   |        |      |   |   |
| (LOSS) INCOME FROM OPERATIONS           |   |        | (69,524   | )      |        | 63,617    |   |

----

Index

|                                                 |   | 2010        |      |   | 2009        |    |
|------------------------------------------------------|--------|-------------|-----------|--------|-------------|---------|
|                                                 |   | (UNAUDITED) |      |   | (UNAUDITED) |    |
|                                                 |   |        |      |   |        |    |
| OTHER (EXPENSE) INCOME:                              |   |        |      |   |        |    |
| INTEREST & OTHER INCOME                          |   |        | 230       |   |        |    | 7,779 |   |
| INTEREST EXPENSE                                     |   |        | (54,879   | )      |        |    | (63,100 | ) |
| ART SALES AND OPERATIONS                             |   |        | 0         |   |        |    | (2,400 | ) |
|                                                 |   |        |      |   |        |    |   |   |
|                                                 |   |        | (54,649   | )      |        |    | (57,721 | ) |
|                                                 |   |        |      |   |        |    |   |   |
|                                                 |   |        |      |   |        |    |   |   |
| (LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES      |   |        | (124,173  | )      |        |    | 5,896 |   |
| PROVISION FOR INCOME TAXES                           |   |        | 0         |   |        | 0_      |   |
|                                                 |   |        |      |   |        |    |   |   |
| NET (LOSS) INCOME                                    |   |        | (124,173  | )      |        |    | 5,896 |   |
|                                                 |   |        |      |   |        |    |   |   |
|                                                 |   |        |      |   |        |    |   |   |
| OTHER COMPREHENSIVE (LOSS) INCOME:                   |   |        |      |   |        |    |   |   |
|                                                 |   |        |      |   |        |    |   |   |
| MINIMUM PENSION LIABILITY ADJUSTMENT                 |   |        | 54,000    |   |        | 60,000_ |   |
|                                                 |   |        |      |   |        |    |   |   |
|                                                 |   |        |      |   |        |    |   |   |
| COMPREHENSIVE (LOSS) INCOME                          |   | $           | (70,173   | )      |        | $       | 65,896 |   |
|                                                 |   |        |      |   |        |    |   |   |
|                                                 |   |        |      |   |        |    |   |   |
| (LOSS) EARNINGS PER COMMON SHARE:                    |   |        |      |   |        |    |   |   |
|                                                 |   |        |      |   |        |    |   |   |
| NET (LOSS) INCOME                                    |   | $           | (124,173  | )      |        | $       | 5,896 |   |
|                                                 |   |        |      |   |        |    |   |   |
| LESS PREFERRED STOCK DIVIDEND                        |   |        | (36,000   | )      |        |    | (36,000 | ) |
|                                                 |   |        |      |   |        |    |   |   |
| (LOSS) INCOME AVAILABLE TO COMMON STKDERS            |   | $           | (160,173  | )      |        | $       | (30,104 | ) |
|                                                 |   |        |      |   |        |    |   |   |
|                                                 |   |        |      |   |        |    |   |   |
| NET (LOSS) INCOME PER COMMON SHARE BASIC AND DILUTED |   | $           | (0.04     | )      |        | $       | (0.01 | ) |
|                                                 |   |        |      |   |        |    |   |   |
|                                                 |   |        |      |   |        |    |   |   |
| AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED       |   |        | 4,326,929 |   |        |    | 4,326,929 |   |

----

Index

|                                    |   | 2010        |     |   | 2009        |    |
|-----------------------------------------|--------|-------------|----------|--------|-------------|---------|
|                                    |   | (UNAUDITED) |     |   | (UNAUDITED) |    |
| REAL ESTATE OPERATIONS:                 |   |        |     |   |        |    |
|                                    |   |        |     |   |        |    |
| REAL ESTATE REVENUES:                   |   |        |     |   |        |    |
| SALE OF REAL ESTATE                     |   |        | 0        |   |        |    | 262,720 |   |
| OUTSIDE REAL ESTATE RENT                |   |        | 67,270   |   |        |    | 97,045 |   |
| EXCHANGE BUILDING RENTAL INCOME         |   |        | 3,593    |   |        | 7,674   |   |
|                                    |   |        | 70,863   |   |        | 367,439 |   |
|                                    |   |        |     |   |        |    |   |   |
| REAL ESTATE EXPENSES:                   |   |        |     |   |        |    |   |   |
| COST OF REAL ESTATE SOLD                |   |        | 0        |   |        |    | 69,069 |   |
| LABOR, OPERATING AND MAINTENANCE        |   |        | 7,122    |   |        |    | 14,464 |   |
| DEPRECIATION AND AMORTIZATION           |   |        | 5,550    |   |        |    | 5,550 |   |
| TAXES OTHER THAN INCOME TAXES           |   |        | 5,550    |   |        |    | 6,150 |   |
| GENERAL AND ADMINISTRATIVE              |   |        | 4,816    |   |        | 9,900   |   |
|                                    |   |        | 23,038   |   |        | 105,133 |   |
|                                    |   |        |     |   |        |    |   |   |
| INCOME FROM REAL ESTATE OPERATIONS      |   |        | 47,825   |   |        | 262,306 |   |
|                                    |   |        |     |   |        |    |   |   |
|                                    |   |        |     |   |        |    |   |   |
| STOCKYARD OPERATIONS:                   |   |        |     |   |        |    |   |   |
|                                    |   |        |     |   |        |    |   |   |
| STOCKYARD REVENUES:                     |   |        |     |   |        |    |   |   |
| YARD HANDLING AND AUCTION               |   | $           | 581,738  |   |        | $       | 763,564 |   |
| FEED AND BEDDING INCOME                 |   |        | 30,319   |   |        |    | 57,657 |   |
| RENTAL & OTHER INCOME               |   |        | 44,083   |   |        | 49,066  |   |
|                                    |   |        | 656,140  |   |        | 870,287 |   |
|                                    |   |        |     |   |        |    |   |   |
| STOCKYARD EXPENSES:                     |   |        |     |   |        |    |   |   |
| LABOR AND RELATED COSTS                 |   |        | 199,464  |   |        |    | 329,891 |   |
| OTHER OPERATING AND MAINTENANCE         |   |        | 134,824  |   |        |    | 221,753 |   |
| FEED AND BEDDING EXPENSE                |   |        | 25,450   |   |        |    | 49,271 |   |
| DEPRECIATION AND AMORTIZATION           |   |        | 3,367    |   |        |    | 4,955 |   |
| TAXES OTHER THAN INCOME TAXES           |   |        | 40,432   |   |        |    | 45,858 |   |
| GENERAL AND ADMINISTRATIVE              |   |        | 111,486  |   |        | 123,249 |   |
|                                    |   |        | 515,023  |   |        | 774,977 |   |
|                                    |   |        |     |   |        |    |   |   |
| INCOME (LOSS) FROM STOCKYARD OPERATIONS |   |        | 141,117  |   |        | 93,310  |   |
|                                    |   |        |     |   |        |    |   |   |
|                                    |   |        |     |   |        |    |   |   |
| GENERAL AND ADMINISTRATIVE EXPENSE      |   |        | (207,908 | )      |        |    | (224,745 | ) |
|                                    |   |        |     |   |        |    |   |   |
|                                    |   |        |     |   |        |    |   |   |
| (LOSS) INCOME FROM OPERATIONS           |   |        | (18,966  | )      |        | 132,871 |   |

----

Index

|                                                 |   | 2010        |      |   | 2009        |    |
|------------------------------------------------------|--------|-------------|-----------|--------|-------------|---------|
|                                                 |   | (UNAUDITED) |      |   | (UNAUDITED) |    |
|                                                 |   |        |      |   |        |    |
| OTHER (EXPENSE) INCOME:                              |   |        |      |   |        |    |
| INTEREST & OTHER INCOME                          |   |        | 104       |   |        |    | 7,602 |   |
| INTEREST EXPENSE                                     |   |        | (30,049   | )      |        |    | (31,550 | ) |
| ART SALES AND OPERATIONS                             |   |        | 0         |   |        |    | (1,200 | ) |
|                                                 |   |        |      |   |        |    |   |   |
|                                                 |   |        | (29,945   | )      |        |    | (25,148 | ) |
|                                                 |   |        |      |   |        |    |   |   |
|                                                 |   |        |      |   |        |    |   |   |
| (LOSS) INCOME BEFORE PROVISION FOR                   |   |        |      |   |        |    |   |   |
| INCOME TAXES                                         |   |        | (48,911   | )      |        |    | 107,723 |   |
| PROVISION FOR INCOME TAXES                           |   |        | 0         |   |        | 0       |   |
|                                                 |   |        |      |   |        |    |   |   |
| NET (LOSS) INCOME                                    |   |        | (48,911   | )      |        |    | 107,723 |   |
|                                                 |   |        |      |   |        |    |   |   |
|                                                 |   |        |      |   |        |    |   |   |
| OTHER COMPREHENSIVE (LOSS) INCOME:                   |   |        |      |   |        |    |   |   |
|                                                 |   |        |      |   |        |    |   |   |
| MINIMUM PENSION LIABILITY ADJUSTMENT                 |   |        | 27,000    |   |        | 30,000  |   |
|                                                 |   |        |      |   |        |    |   |   |
|                                                 |   |        |      |   |        |    |   |   |
| COMPREHENSIVE (LOSS) INCOME                          |   | $           | (21,911   | )      |        | $       | 137,723 |   |
|                                                 |   |        |      |   |        |    |   |   |
|                                                 |   |        |      |   |        |    |   |   |
| (LOSS) EARNINGS PER COMMON SHARE:                    |   |        |      |   |        |    |   |   |
|                                                 |   |        |      |   |        |    |   |   |
| NET (LOSS) INCOME                                    |   | $           | (48,911   | )      |        | $       | 107,723 |   |
|                                                 |   |        |      |   |        |    |   |   |
| LESS PREFERRED STOCK DIVIDEND                        |   |        | (18,000   | )      |        |    | (18,000 | ) |
|                                                 |   |        |      |   |        |    |   |   |
| (LOSS) INCOME AVAILABLE TO COMMON STKDERS            |   | $           | (66,911   | )      |        | $89,723 |   |
|                                                 |   |        |      |   |        |    |   |   |
|                                                 |   |        |      |   |        |    |   |   |
| 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

CA

|                      |   | 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, APRIL 30, 2010   |   |           | 5,313,794 |   |            | $      | 53,138 |   |   |   | 9,102,655 |   |   | $ | 91,027 |   |

|                      |   | ADDITIONALPAID-INCAPITAL |       |   | ACCUMULATEDDEFICIT |   |        | COMPREHENSIVLOSS |   |   | TREASURYSTOCK,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          |   |               |   | (124,173    | )                |   |   | 0                     |   |   |   | 0 |   |
| PREFERRED STOCK DIVIDEND  |   |                     | 0          |   |               |   | (36,000     | )                |   |   | 0                     |   |   |   | 0 |   |
| MINIMUM PEN. LIAB. ADJ.   |   |                     | 0          |   |               |   | 0           |             |   |   | 54,000                |   |   |   | 0 |   |
| BALANCE, APRIL 30, 2010   |   | $                        | 28,322,341 |   |               | $      | (15,228,224 | )                |   | $      | (1,861,985            | )      |   | $ | (11,003,545 | ) |

----

Index

C

|                                                                                      |   | APR. 2010 |     |   | APR. 2009 |   |
|-------------------------------------------------------------------------------------------|--------|-----------|----------|--------|-----------|--------|
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                     |   |      |     |   |      |   |
| NET (LOSS) INCOME                                                                         |   | $         | (124,173 | )      |      | $      | 5,896 |   |
|                                                                                      |   |      |     |   |      |   |   |   |
|                                                                                      |   |      |     |   |      |   |   |   |
| ADJUSTMENTS TO RECONCILE NET LOSS TO NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES: |   |      |     |   |      |   |   |   |
|                                                                                      |   |      |     |   |      |   |   |   |
| DEPRECIATION AND AMORTIZATION                                                             |   |      | 17,835   |   |      |   | 21,009 |   |
|                                                                                      |   |      |     |   |      |   |   |   |
| GAIN ON SALES OF REAL ESTATE                                                              |   |      | 0        |   |      |   | (193,651 | ) |
|                                                                                      |   |      |     |   |      |   |   |   |
| MINIMUM PENSION LIABILITY ADJUSTMENT                                                      |   |      | 54,000   |   |      |   | 60,000 |   |
|                                                                                      |   |      |     |   |      |   |   |   |
| DECREASE (INCREASE) IN ASSETS:                                                            |   |      |     |   |      |   |   |   |
|                                                                                      |   |      |     |   |      |   |   |   |
|                                                                                      |   |      |     |   |      |   |   |   |
| NOTES AND ACCOUNTS RECEIVABLE                                                             |   |      | (186,217 | )      |      |   | (94,721 | ) |
|                                                                                      |   |      |     |   |      |   |   |   |
| STOCKYARDS INVENTORY                                                                      |   |      | (5,842   | )      |      |   | 2,239 |   |
|                                                                                      |   |      |     |   |      |   |   |   |
| PREPAID EXPENSES                                                                          |   |      | (24,536  | )      |      |   | (40,058 | ) |
|                                                                                      |   |      |     |   |      |   |   |   |
| RESTRICTED CASH – LETTER OF CREDIT                                                  |   |      | (10,000  | )      |      |   | 0 |   |
|                                                                                      |   |      |     |   |      |   |   |   |
| RESTRICTED CASH – TRANSIT INSURANCE                                                 |   |      | (19,550  | )      |      |   | (39,694 | ) |
|                                                                                      |   |      |     |   |      |   |   |   |
| INCREASE (DECREASE) IN LIABILITIES:                                                       |   |      |     |   |      |   |   |   |
|                                                                                      |   |      |     |   |      |   |   |   |
| ACCOUNTS PAYABLE AND ACCRUED EXPENSES                                                     |   |      | 146,807  |   |      |   | 36,793 |   |
|                                                                                      |   |      |     |   |      |   |   |   |
| PENSION PLAN PAYABLE                                                                      |   |      | 0        |   |      |   | (45,024 | ) |
|                                                                                      |   |      |     |   |      |   |   |   |
| PAYABLE TO EXECUTIVE OFFICERS                                                             |   |      | 223,700  |   |      |   | 206,100 |   |
|                                                                                      |   |      |     |   |      |   |   |   |
| ACCRUED PROFESSIONAL FEES                                                                 |   |      | (65,012  | )      |      |   | (11,874 | ) |
|                                                                                      |   |      |     |   |      |   |   |   |
| REAL ESTATE TAXES PAYABLE                                                                 |   |      | (43,305  | )      |      | 30,633 |   |
|                                                                                      |   |      |     |   |      |   |   |   |
| TOTAL ADJUSTMENTS                                                                         |   |      | 87,880   |   |      |   | (68,248 | ) |
|                                                                                      |   |      |     |   |      |   |   |   |
|                                                                                      |   |      |     |   |      |   |   |   |
| NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES                                       |   |      | (36,293  | )      |      |   | (62,352 | ) |

----

Index

|                                                   |   | APR. 2010 |     |   | APR. 2009 |    |
|--------------------------------------------------------|--------|-----------|----------|--------|-----------|---------|
|                                                   |   |      |     |   |      |    |
| CASH FLOWS FROM INVESTING ACTIVITIES:                  |   |      |     |   |      |    |
|                                                   |   |      |     |   |      |    |
| PROCEEDS FROM SALES OF REAL ESTATE                     |   |      | 0        |   |      |    | 262,720 |   |
| COSTS RELATING TO SALES OF REAL ESTATE                 |   |      | 0        |   |      |    | (29,810 | ) |
| CAPITAL EXPENDITURES                                   |   |      | (340,000 | )      |      | 0       |   |
|                                                   |   |      |     |   |      |    |   |   |
| NET CASH PROVIDED BY INVESTING ACTIVITIES              |   |      | (340,000 | )      |      | 232,910 |   |
|                                                   |   |      |     |   |      |    |   |   |
|                                                   |   |      |     |   |      |    |   |   |
| CASH FLOWS PROVIDED BY (USED) IN FINANCING ACTIVITIES: |   |      |     |   |      |    |   |   |
|                                                   |   |      |     |   |      |    |   |   |
| PROCEEDS FROM LONG-TERM DEBT OBLIGATION                |   |      | 340,000  |   |      |    | 0 |   |
| REPAYMENT OF LONG-TERM DEBT OBLIGATION                 |   |      | 0        |   |      | 0       |   |
|                                                   |   |      |     |   |      |    |   |   |
| NET CASH PROVIDED BY (USED) IN FINANCING ACTIVITIES    |   |      | 340,000  |   |      | 0       |   |
|                                                   |   |      |     |   |      |    |   |   |
|                                                   |   |      |     |   |      |    |   |   |
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS   |   |      | (36,293  | )      |      |    | 170,558 |   |
|                                                   |   |      |     |   |      |    |   |   |
| CASH AND CASH EQUIVALENTS AT BEGN OF YEAR              |   |      | 154,624  |   |      | 21,115  |   |
|                                                   |   |      |     |   |      |    |   |   |
|                                                   |   |      |     |   |      |    |   |   |
| CASH AND CASH EQUIVALENTS AT END OF YEAR               |   | $         | 118,331  |   |      | $       | 191,673 |   |

|                                                                  |   | APR. 30, |   |
|-----------------------------------------------------------------------|--------|----------|--------|
|                                                                  |   | 2010     |   |   | 2009 |   |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:                    |   |     |   |   |   |   |
|                                                                  |   |     |   |   |   |   |
| CASH PAID DURING THE YEAR FOR:                                        |   |     |   |   |   |   |
|                                                                  |   |     |   |   |   |   |
| INTEREST                                                              |   | $        | 54,879 |   |   | $ | 63,100 |   |
| INCOME TAXES                                                          |   | $        | 0      |   |   | $ | 0 |   |
|                                                                  |   |     |   |   |   |   |   |   |
| SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: |   |     |   |   |   |   |   |   |
|                                                                  |   |     |   |   |   |   |   |   |
| PREFERRED STOCK DIVIDENDS                                             |   | $        | 36,000 |   |   | $ | 36,000 |   |

----

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

----

Index

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

|                                                          |   | Apr. 30, |   |   | October 31, |   |
|---------------------------------------------------------------|--------|----------|--------|--------|-------------|--------|
| ($ 000's Omitted)                                             |   | 2010     |   |   | 2009        |   |
| Variable rate mortgage notes due May 15, 2012 - related party |   | $        | 1,332  |   |        | $      | 992 |   |
| Less -- current maturities                                    |   |     | 0      |   |        |   | 0 |   |
| Long-term debt                                                |   | $        | 1,332  |   |        | $      | 992 |   |

|                       |   | Total  |   |   | Less Than1 year |   |   | 1 - 3Years |   |   | 3 - 5Years |   |   | MoreThan5Yrs. |   |
|----------------------------|--------|--------|--------|--------|-----------------|--------|--------|------------|--------|--------|------------|--------|--------|---------------|--------|
|                       |   |   |   |   |            |   |   |       |   |   |       |   |   |          |   |
| Pension Plan Liability (a) |   | $      | 797    |   |            | $      | 58     |       |   | $      | 500        |   |   | $             | 239    |   |   | $ | 0 |   |
| Mortgage Notes Payable (b) |   |   | 1,332  |   |            |   | 0      |       |   |   | 1,332      |   |   |          | 0      |   |   |   | 0 |   |
|                       |   | $      | 2,129  |   |            | $      | 58     |       |   | $      | 1,832      |   |   | $             | 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 |
|----|--------------------------------------|

----

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 |   |   | Current Year(RetirementsAdditions |   |   |   |   |   | Carrying  |   |
|-----------------------------------|--------|-----------------|--------|--------|-----------------------------------|--------|--------|--------|--------|--------|-----------|--------|
|                              |   | Bldgs. &    |   |   | Bldgs. &                      |   |   | Accum. |   |   | Value     |   |
| Description (1)                   |   | Land            |   |   | Imprvmts.                         |   |   | Land   |   |   | Imprvmts. |   |   | Depr. |   |   | 04/30/10 |   |
| New York office                   |   |            |   |   |                              |   |   |   |   |   |      |   |   |   |   |   |   |   |
| Leasehold assets                  |   | $               | 0      |   |                              | $      | 8      |   |   | $      | 0         |   |   | $ | 0 |   |   | $ | (8 | ) |   | $ | 0 |   |
|                              |   |            |   |   |                              |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 9 acres of land                   |   |            |   |   |                              |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| in Omaha, NE                      |   |            | 800    |   |                              |   | 21     |   |   |   | 0         |   |   |   | 0 |   |   |   | (17 | ) |   |   | 804 |   |
| Acquired in 1976                  |   |            |   |   |                              |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                              |   |            |   |   |                              |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 3 acres of land                   |   |            |   |   |                              |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| in S. St. Paul, MN                |   |            | 10     |   |                              |   | 485    |   |   |   | 0         |   |   |   | 0 |   |   |   | (437 | ) |   |   | 58 |   |
| Acquired in 1937                  |   |            |   |   |                              |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                              |   |            |   |   |                              |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 4 acres of land in Sioux City, IA |   |            | 200    |   |                              |   | 0      |   |   |   | 340       |   |   |   | 0 |   |   |   | 0 |   |   |   | 540 |   |
| Acquired in 1937                  |   |            |   |   |                              |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                              |   | $               | 1,010  |   |                              | $      | 514    |   |   | $      | 340       |   |   | $ | 0 |   |   | $ | (462 | ) |   | $ | 1,402 |   |

|                          |   | Apr. 30, |   |   | October 31, |   |
|-------------------------------|--------|----------|--------|--------|-------------|--------|
|                          |   | 2010     |   |   | 2009        |   |
| Balance at beginning of year  |   | $        | 1,074  |   |        | $      | 1,646 |   |
| Acquisitions and Improvements |   |     | 340    |   |        |   | 0 |   |
| Cost of property sold         |   |     | 0      |   |        |   | (550 | ) |
| Depreciation                  |   |     | (12    | )      |        |   | (22 | ) |
| Reclassifications             |   |     | 0      |   |        |   | 0 |   |
| Balance at end of the period  |   | $        | 1,402  |   |        | $      | 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 |   |   | Current Year(Retirements)Additions |   |   |   |   |   | Carrying  |   |
|-----------------------------------------------------|--------|-----------------|--------|--------|------------------------------------|--------|--------|--------|--------|--------|-----------|--------|
|                                                |   | Bldgs. &    |   |   | Bldgs. &                       |   |   | Accum. |   |   | Value     |   |
| Description (1)                                     |   | Land            |   |   | Imprvmts.                          |   |   | Land   |   |   | Imprvmts. |   |   | Depr. |   |   | 04/30/10 |   |
|                                                |   |            |   |   |                               |   |   |   |   |   |      |   |   |   |   |   |   |   |
| 30 acres of land in St. Joseph, MO Acquired in 1942 |   | $               | 902    |   |                               | $      | 265    |   |   | $      | 0         |   |   | $ | 0 |   |   | $ | (185 | ) |   | $ | 982 |   |

|                          |   | Apr. 30, |   |   | October 31, |   |
|-------------------------------|--------|----------|--------|--------|-------------|--------|
|                          |   | 2010     |   |   | 2009        |   |
|                          |   |     |   |   |        |   |
| Balance at beginning of year  |   | $        | 988    |   |        | $      | 1,125 |   |
| Acquisitions and Improvements |   |     | 0      |   |        |   | 0 |   |
| Transfers                     |   |     | 0      |   |        |   | (116 | ) |
| Depreciation                  |   |     | (6     | )      |        |   | (21 | ) |
| Balance at end of the period  |   | $        | 982    |   |        | $988_  |   |

----

Index

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

|                                                 |   | Historical CostBldgs. & |   |   | Current Year(Retirements)AdditionsBldgs. & |   |   | Accum. |   |   | CarryingValue |   |
|------------------------------------------------------|--------|-----------------------------|--------|--------|------------------------------------------------|--------|--------|--------|--------|--------|---------------|--------|
| Description (1)                                      |   | Land                        |   |   | Imprvmts.                                      |   |   | Land   |   |   | Imprvmts.     |   |   | Depr. |   |   | 04/30/10 |   |
|                                                 |   |                        |   |   |                                           |   |   |   |   |   |          |   |   |   |   |   |   |   |
|                                                 |   |                        |   |   |                                           |   |   |   |   |   |          |   |   |   |   |   |   |   |
| 35 acres of land in Sioux Falls, SD Acquired in 1937 |   | $                           | 220    |   |                                           |   | N/A    |   |   | $      | 0             |   |   |   | N/A |   |   |   | N/A |   |   | $ | 220 |   |
|                                                 |   |                        |   |   |                                           |   |   |   |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 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 |   |

|                          |   | Apr. 30, |   |   | 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_ |   |

----

Index

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

|                               |   | Nine Months Ended |    |
|------------------------------------|--------|-------------------|---------|
|                               |   | 4/30/10           |    |   | 4/30/09 |   |
|                               |   |              |    |   |   |   |
| 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 |   |

| 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 SIX MONTHS ENDED APRIL 30, 2010 |
|----------|-----------------------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

----

Index

----

Index

----

Index

|                                |   | Six Months Ended April 30, |   |
|-------------------------------------|--------|----------------------------|--------|
|                                |   | 2010                       |   |   | 2009 |   |
|                                |   | (In Thousands)             |   |   |   |   |
| Revenues:                           |   |                       |   |   |   |   |
| Real Estate Revenues                |   | $                          | 147    |   |   | $ | 471 |   |
| Stockyard Revenues                  |   |                       | 1,315  |   |   | 1,685 |   |
| Total Revenues                      |   |                       | 1,462  |   |   | 2,156 |   |
|                                |   |                       |   |   |   |   |   |   |
| Costs and Expenses:                 |   |                       |   |   |   |   |   |   |
| Real Estate Expenses                |   |                       | 45     |   |   |   | 142 |   |
| Stockyard Expenses                  |   |                       | 1,066  |   |   |   | 1,501 |   |
| General and Administrative Expenses |   |                       | 420    |   |   | 449 |   |
| Total Costs and Expenses            |   |                       | 1,531  |   |   | 2,092 |   |
|                                |   |                       |   |   |   |   |   |   |
| (Loss) Income from Operations       |   |                       | (69    | ) |   |   | 64 |   |
|                                |   |                       |   |   |   |   |   |   |
| Other Income                        |   |                       | 0      |   |   |   | 8 |   |
| Other Expenses                      |   |                       | (55    | ) |   |   | (66 | ) |
| Net (Loss) Income                   |   | $                          | (124   | ) |   | S | 6 |   |

----

Index

----

Index

----

Index

----

Index

L

----

Index

----

Index

Ot

I

| As ofApr. 30, |   |   |   | Fixed rate($ US) |    |   | AverageInterest Rate |   |   | FairValue |
|---------------|--------|--------|--------|------------------|---------|--------|----------------------|--------|--------|-----------|
| 2010          |   |   |   |             | $       | 0      |                 |   |   | N/A       |   |   |   |
| 2011          |   |   |   |             |    | 0      |                 |   |   | N/A       |   |   |   |
| 2012          |   |   |   |             |    | 1,332  |                 |   |   | 10        | % |   |   |
| 2013          |   |   |   |             |    | 0      |                 |   |   | N/A       |   |   |   |
| 2014          |   |   |   |             |    | 0      |                 |   |   | N/A       |   |   |   |
| Thereafter    |   |   |   |             |    | 0      |                 |   |   | N/A       |   |   |   |
| Total         |   |   |   |             | $  | 1,332  |                 |   |   |      |   |   | N/A (A) |

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

----

Index

TE

----

Index

PAR

----

Index

I

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

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

----

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 14, 2010 |
|                   |   |                           |   |          |
|                   |   | Vice President-Finance         |   |          |
|                   |   | Secretary and Treasurer        |   |          |
| /S/ Reginald Schauder  |   | (Principal Financial and       |   |          |
| Reginald Schauder      |   | Accounting Officer)            |   | June 14, 2010 |
|                   |   |                           |   |          |
|                   |   |                           |   |          |
| /S/ Asher B. Edelman   |   | Chairman of the Board          |   |          |
| Asher B. Edelman       |   | and Director                   |   | June 14, 2010 |

----