March 15, 1996





                  ANNUAL REPORT TO STOCKHOLDERS

     We are pleased to report Monarch's 1995 consolidated net income totaled
$7,673,450 which represents a 92% increase over 1994.  This increase in net
income can be attributed to an 11% increase in net sales combined with
reductions in per unit cost of cement sales.  The Company completed a $4.5
million capital improvement program at its Humboldt cement plant in 1995. 
These improvements allowed the company to increase cement production at a
reduced cost per ton produced and eliminated the need to purchase clinker and
cement from other market areas to meet the demand for our products.  The
benefits from the increased production capabilities will continue to enhance
performance at all levels of production through operating efficiencies.  

     Demand for cement and ready-mixed concrete in the Company's market area
continues to follow favorable economic indicators.  Public construction
continues to dominate demand as the country strives to rebuild its
infrastructure.  Construction in the private sector, which reacted unfavorably
to higher interest rates in 1995, appears to be in a state of recovery with
the downward trend in interest rates.

     We wish to acknowledge our Heavenly Father for the blessings bestowed on
us.  We credit our success to our employees whose efforts allowed us to
complete major improvements to our production process with minimal
interruption and who continue to expend the additional effort necessary to
operate at full capacity over extended periods of time.  We express our
appreciation to our customers for their loyalty and continued patronage.  We
also wish to thank you, our stockholders, for your continued support and
invite you to attend your corporation's annual meeting to be held at 2:00 p.m.
on April 10, 1996, in the corporate office, Humboldt, Kansas.

                       Respectfully yours,



 /s/  Walter H. Wulf                                      /s/ Jack R. Callahan

   Walter H. Wulf                                           Jack R. Callahan
Chairman of the Board                                           President




<PAGE>
<TABLE>
                 THE MONARCH CEMENT COMPANY AND SUBSIDIARIES

                           SELECTED FINANCIAL DATA

                 FOR THE FIVE YEARS ENDED DECEMBER 31, 1995
             (Dollar amounts in thousands except per share data)

<CAPTION>
                                 1995      1994      1993      1992      1991 
<S>                            <C>       <C>       <C>       <C>       <C> 
Net sales . . . . . . . . . .  $81,667   $73,646   $66,118   $58,281   $50,246
Net income before 
  cumulative effect of 
  accounting changes. . . . .  $ 7,673   $ 3,998   $ 4,992   $ 3,200   $ 1,508
Net income per share before 
  cumulative effect of
  accounting changes. . . . .    $1.81      $.94     $1.18      $.74      $.35
Net income (loss) . . . . . .  $ 7,673   $ 3,998   $   (88)  $ 3,200   $ 1,508
Net income (loss) per share .    $1.81      $.94     $(.02)     $.74      $.35
Total assets. . . . . . . . .  $59,783   $52,522   $49,863   $42,993   $41,797
Long-term obligations . . . .  $   -     $   -     $   -     $   -     $   -
Cash dividends declared
  per share . . . . . . . . .     $.46      $.44      $.40      $.40      $.40
Stockholders' investment
  per share . . . . . . . . .    $9.68     $8.11     $7.68     $8.05     $7.60

</TABLE>


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

Liquidity

     At December 31, 1995, current assets of The Monarch Cement Company and
Subsidiaries (the Company) exceeded current liabilities by $25,094,222
resulting in a current ratio of 4.78 to 1.  The Company's cash needs in 1995
were satisfied by cash generated from operations and internal funds.  The
amount of cash and short term investments increased during 1995.  The Company
does not currently have an established line of credit with a bank; however,
the Company believes its capital resources are adequate to meet its current
capital expenditure requirements and liquidity needs.

Capital Resources

     During 1995, the Company invested $5,863,148 in property, plant and
equipment.  These capital expenditures included completion of the
modifications to the two preheater kilns and the installation of the vibrating
grizzly, installation of a concrete laboratory and purchase of an x-ray
analyzer, loader, ready-mix trucks, rebar bending and shearing machine and
bulk tanker trailers.

     The Company regularly has capital expenditures of $2,000,000 to
$2,500,000 per year in keeping its equipment and facilities in good operating
condition.  It is expected that the Company's capital expenditures will exceed
$2,500,000 during 1996 as the Company continues to upgrade equipment to meet
the increased demand for its products.  It is anticipated that the funds for
these projects will be provided from internal sources.  


Results of Operations

     1995 Compared to 1994.  The Company experienced a substantial increase in
gross profit from operations during 1995 as compared to 1994.  This
improvement was primarily due to changes within the cement segment of the
operation.  There were insignificant changes in the ready-mixed concrete and
sundry building materials segment of the operation during 1995 as compared to
1994.  

     While sales volume and sales prices of cement increased moderately during
1995, cost of cement sales did not increase proportionately.  By the beginning
of the third quarter of 1995, the modifications to the Company's two preheater
kilns and the installation of the vibrating grizzly were substantially
complete.  These improvements increased the plant's production capacity and
allowed the Company to substantially reduce the amount of cement and clinker
purchased from other market areas during 1995 as compared to 1994.  During
1994, the purchase of cement and clinker at prices above the Company's normal
production costs increased per unit cost of sales. By increasing production
and reducing purchases, the Company reduced its per unit cost of sales during
1995 as compared to 1994.

     The Company's gross profit margin during 1995 was 24%, as compared to 18%
in 1994.  The improved gross profit margin is attributable to operating
efficiencies achieved through higher sales volumes, reduction of costs
associated with producing versus purchasing cement and clinker, the $860,000
write-off of abandoned spare parts inventory in Des Moines in 1994 and a
moderate increase in the price of cement. 

     1994 Compared to 1993.  The Company experienced moderate increases in
sales volumes and sales prices during 1994 as compared to 1993.  Although
demand for cement and ready-mixed concrete was strong throughout 1994, the
Company was unable to substantially increase sales volumes due to production
capacity limitations.  During 1994, the Company began modifying its production
equipment to increase cement production capabilities.  In the meantime, the
Company purchased clinker and cement from other market areas in order to meet
its customers' demands for cement and ready-mixed concrete.  

     During 1994, the Company ceased all production activities at its
Des Moines, Iowa cement plant.  Since 1986, clinker produced in Humboldt,
Kansas had been transferred to this plant for grinding into finished cement. 
The Company is currently transferring finished cement produced in Humboldt,
Kansas to this plant for distribution to the Company's Iowa customers.  Due to
the abandonment of these production facilities during 1994, the Company wrote-
off $860,000 of spare parts inventory related to obsolete equipment at this
facility.   This write-off, along with the additional costs associated with
maintaining an adequate supply of product for our customers, were the main
causes of the Company's increase in cost of sales as a percentage of sales in
1994.  

     Inflation.  Inflation directly affects the Company's operating costs. 
The manufacture of cement requires the use of a significant amount of energy. 
The price of energy, as well as the prices of the specialized replacement
parts and equipment the Company must continually purchase, tend to increase
directly with the rate of inflation causing manufacturing costs to increase. 
These inflationary increases can be partially offset by increased production. 
The manufacture of cement requires a significant investment in property, plant
and equipment and a trained work force to operate and maintain this equipment. 
These costs do not materially vary with the level of production.  As a result,
by operating at or near capacity, regardless of demand, companies can reduce
per unit production costs.  The continual need to control production costs
encourages overproduction during periods of reduced demand.  

     Accounting Changes.  Effective January 1, 1993, the Company implemented
the provisions of Financial Accounting Standard (FAS) No. 109, "Accounting for
Income Taxes".  FAS 109 utilizes the liability method whereby deferred taxes
are determined based on the estimated future tax effects of differences
between the financial statement and tax bases of assets and liabilities given
the provisions of the enacted tax laws.  The Company reported the entire
catch-up effect during 1993 resulting in a $400,000 increase in net income
during 1993.

     The Company adopted Financial Accounting Standard (FAS) No. 106,
"Employer's Accounting for Postretirement Benefits other than Pensions" as of
January 1, 1993.  This new standard requires that the expected cost of these
postretirement benefits be charged to expense during the years the employees
render service.  The Company reported the entire transition obligation as of
January 1, 1993 of $9,130,000, net of deferred income tax benefit of
$3,650,000, as a $5,480,000 decrease in net income during 1993.

     Effective January 1, 1994, the Company adopted Financial Accounting
Standard (FAS) No. 115, "Accounting for Certain Investments in Debt and Equity
Securities".  The Company's short term investments consist of investments in
corporate commercial paper with maturities of six months or less and have been
classified as held-to-maturity.  The amortized cost, which approximates market
value, is reflected in the balance sheet.  Other assets includes equity
securities which have been classified as available-for-sale.  Realized gains
are computed using the specific identification method.  The equity investment
results for the years ended December 31, 1995 and 1994 are as follows:

<TABLE>
<CAPTION>
                                                  1995         1994    
          <S>                                  <C>          <C>
          Fair value of investments            $2,680,200   $2,358,400 
          Cost of investments                   1,651,200    2,171,600 
            Fair value in excess of cost       $1,029,000   $  186,800 
          Unrealized gain recorded in equity   $  619,000   $  111,800 
          Deferred income taxes                   410,000       75,000 
                                               $1,029,000   $  186,800 

          Proceeds from sale of securities     $  721,428   $  240,823 
          Realized gains                       $  110,089   $   41,341

</TABLE>

                         DESCRIPTION OF THE BUSINESS

     The Monarch Cement Company (Monarch) was organized as a corporation under
the laws of the State of Kansas in 1913 and has been principally engaged,
throughout its history, in the manufacture and sale of portland cement.

     The manufacture of portland cement by Monarch involves the quarrying of
clay and limestone and the crushing, drying and blending of these raw
materials into the proper chemical ratio.  The raw materials are then heated
in kilns to 2800o Fahrenheit at which time chemical reactions occur forming a
new compound called clinker.  After the addition of a small amount of gypsum,
the clinker is ground into a very fine powder which is known as portland
cement.  The term "portland cement" is not a brand name but is a term that
distinguishes cement manufactured by this chemical process from natural
cement, which is no longer widely used.  Portland cement is the basic material
used in the production of ready-mixed concrete which is used in highway,
bridge and building construction where strength and durability are primary
requirements.

     The Company is also in the ready-mixed concrete, concrete products and
sundry building materials business.  Ready-mixed concrete is manufactured by
combining aggregates with portland cement, water and chemical admixtures in
batch plants.  It is then loaded into mixer trucks and mixed in transit to the
construction site where it is placed by the contractor.

     The following table sets forth for the last three fiscal years the dollar
amount of sales to unaffiliated customers, intersegment sales, operating
profit and identifiable assets contributed by Industry Segment A (cement
manufacturing) and Industry Segment B (ready-mixed concrete and sundry
building materials):

<TABLE>
<CAPTION>
                                          1995       1994       1993  
                                                 (In Thousands)
     <S>                                 <C>        <C>        <C>  
     Sales to Unaffiliated Customers-             
        Industry:  Segment A             $33,081    $27,334    $24,004
                   Segment B              48,586     46,312     42,114

     Intersegment Sales-
        Industry:  Segment A              10,038      8,920      8,177
                   Segment B                 231        267        196

     Operating Profit-
        Industry:  Segment A               9,870      3,339      5,060
                   Segment B               2,422      2,612      1,479       

     Identifiable Assets-
        Industry:  Segment A              27,373     23,451     21,135
                   Segment B              14,196     13,589     13,072

<FN>
     All of the Company's operations and sales are in one geographic area.
</TABLE>


                              LINES OF BUSINESS

     The Company is engaged in the manufacture and sale of the principal types
of portland cement and ready-mixed concrete and sundry building materials. 
The portland cement products are sold under the "MONARCH" brand name.

     The marketing area for Monarch's products, which is limited by the
relatively high cost of transporting cement, consists primarily of the State
of Kansas, the State of Iowa, southeast Nebraska, western Missouri, northwest
Arkansas and northern Oklahoma.  Included within this area are the
metropolitan markets of Des Moines, Iowa; Kansas City, Missouri; Springfield,
Missouri; Wichita, Kansas; Omaha, Nebraska; Lincoln, Nebraska and Tulsa,
Oklahoma.  Sales are made primarily to contractors, ready-mixed concrete
plants, concrete products plants, building materials dealers and governmental
agencies.  Companies controlled by Monarch sell ready-mixed concrete, concrete
products and sundry building materials in metropolitan areas within Monarch's
primary market.  Monarch cement is delivered either in bulk or in paper bags. 
The cement is distributed both by truck and rail, either common or private
carrier. 

     The following table sets forth for the last three fiscal years of the
Company the percentage of total sales contributed (1) by the manufacture and
sale of portland cement and (2) by the sale of ready-mixed concrete and sundry
building materials:

<TABLE>
<CAPTION>
                                               Total    Sales       
                                                December 31,        
                                         1995       1994       1993 
     <S>                                <C>        <C>        <C>
     Portland Cement . . . . . . . . .   40.5%      37.1%      36.3%
     Ready-Mixed Concrete and
       sundry building materials . . .   59.5%      62.9%      63.7% 
                                        100.0%     100.0%     100.0%

</TABLE>


<TABLE>
                           DIRECTORS AND OFFICERS

<CAPTION>
                          Present position
        Name                with Company             Principal occupation     
<S>                     <C>                      <C>
Walter H. Wulf          Chairman of the Board    Position with Company
                        and Director

Jack R. Callahan        President                Position with Company
                        and Director

Walter H. Wulf, Jr.     Vice Chairman of         Position with Company
                        the Board, Executive
                        Vice President and
                        Director

Robert M. Kissick       Vice President           President, Hydraulic Power
                        and Director             Systems, Inc. (manufacturer
                                                 of construction equipment)

Karl Callaway           Secretary                Retired Farmer
                        and Director

Byron K. Radcliff       Treasurer                Manager, Radcliff Ranch
                        and Director

Ronald E. Callaway      Director                 Transport truck driver,
                                                 Agricultural Carriers, Inc.

Donald L. Deffner       Director                 Professor of Theology,
                                                 Concordia Seminary

Richard N. Nixon        Director                 Shareholder in law firm of
                                                 Stinson, Mag & Fizzell, P.C.,
                                                 Kansas City, Missouri

Byron J. Radcliff       Director                 Rancher

Michael R. Wachter      Director                 Civil Engineer and Project
                                                 Manager, Concrete Technology
                                                 Corp. (a precast/prestressed
                                                 concrete producer)

Lyndell G. Mosley       Assistant Secretary-     Position with Company
                        Treasurer
</TABLE>

                         STOCK MARKET AND DIVIDEND DATA

     On March 1, 1996, Monarch's stock was held by approximately 700 record
holders.  Monarch is the transfer agent for Monarch's stock which is traded on
the over-the-counter market.  Over-the-counter market quotations reflect
interdealer prices, without retail mark-up, mark-down or commission and may
not necessarily represent actual transactions.  Following is a schedule of the
range of high and low bid quotations of Monarch's stock as reported by B.C.
Christopher, a Division of Fahnestock & Co. Inc., and dividends declared for
each quarter of its two latest fiscal years:
<TABLE>
<CAPTION>
               Quarter     Stock Bid Quotation     Dividends
               Ending         Low      High        Declared 
               <S>           <C>       <C>            <C>
               3-31-94        7.50      9.87           -
               6-30-94       10.00     12.00          .11
               9-30-94        9.25     15.00          .11
              12-31-94       10.00     15.00          .22*
               3-31-95       10.00     14.25           -
               6-30-95       12.87     14.25          .11
               9-30-95       12.75     14.25          .11
              12-31-95       11.50     13.75          .24*

<FN>
*Reflects declaration of two $.11 and two $.12 dividends payable in the first
quarter of 1995 and 1996, respectively. 

</TABLE>

                      SECURITIES AND EXCHANGE FORM 10-K

     Section 13 of the Securities and Exchange Act of 1934 requires the
Company to file an Annual Report on Form 10-K with the Securities and Exchange
Commission, presenting financial information concerning the operation of the
business for its latest fiscal years in greater detail than contained herein.


     A COPY OF FORM 10-K WILL BE MAILED TO ANY STOCKHOLDER UPON RECEIPT OF
WRITTEN REQUEST ADDRESSED TO LYNDELL G. MOSLEY, ASSISTANT SECRETARY-TREASURER,
THE MONARCH CEMENT COMPANY, P.O. BOX 1000, HUMBOLDT, KANSAS 66748-1000.






<PAGE>
                           ARTHUR ANDERSEN LLP

                REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS



To the Board of Directors and Stockholders of
The Monarch Cement Company

We have audited the accompanying consolidated balance sheets of The Monarch
Cement Company (a Kansas corporation) and Subsidiaries as of December 31, 1995
and 1994, and the related consolidated statements of income, stockholders'
investment and cash flows for each of the three years in the period ended
December 31, 1995.  These financial statements are the responsibility of the
Company's management.  Our responsibility is to express an opinion on these
financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards.  Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement.  An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.  An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation.  We believe that our audits provide a reasonable basis
for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of The Monarch Cement Company
and Subsidiaries as of December 31, 1995 and 1994, and the results of their
operations and their cash flows for each of the three years in the period
ended December 31, 1995, in conformity with generally accepted accounting
principles.

As explained in Note 1 to the financial statements, effective January 1, 1994,
the Company changed its method of accounting for certain investments in debt
and equity securities.


                        /s/ Arthur Andersen LLP


Kansas City, Missouri,
  February 16, 1996
<PAGE>
<TABLE>
                                          THE MONARCH CEMENT COMPANY AND SUBSIDIARIES
                                    CONSOLIDATED BALANCE SHEETS--DECEMBER 31, 1995 AND 1994
<CAPTION>
                             ASSETS                                           LIABILITIES AND STOCKHOLDERS' INVESTMENT
                                           1 9 9 5      1 9 9 4                                              1 9 9 5      1 9 9 4  
<S>                                      <C>          <C>           <S>                                     <C>          <C>
CURRENT ASSETS:                                                     CURRENT LIABILITIES:
  Cash and cash equivalents, at cost                                  Accounts payable                     $ 2,987,692  $ 3,700,499
    which approximates market            $ 5,071,268  $ 3,668,782     Notes payable                             69,846      126,125
  Short term investments, at cost                                     Accrued liabilities-
    which approximates market              7,073,446    5,358,751       Federal and state income taxes       1,015,351      513,780
  Receivables, less allowances of                                       Dividends                            1,015,869      932,644
    $538,000 in 1995 and $429,000 in                                    Compensation                           660,141      637,324
    1994 for doubtful accounts             8,135,769    7,157,102       Miscellaneous taxes                    360,530      313,966
  Inventories, priced at cost which                                     Other                                  528,836      479,499 
    is not in excess of market-                                           Total current liabilities        $ 6,638,265  $ 6,703,837
    Cost determined by last-in,
      first-out method-                                             ACCRUED POSTRETIREMENT BENEFITS          9,714,799    9,602,239
      Finished cement                    $ 2,181,014  $ 1,348,752
      Work in process                        603,886      258,465   ACCRUED PENSION EXPENSE                    452,699      443,658
      Building products                    1,010,644      974,157
    Cost determined by first-in,                                    MINORITY INTEREST IN CONSOLIDATED
      first-out method-                                               SUBSIDIARIES                           1,953,237    1,373,829
      Fuel, gypsum, paper sacks
        and other                          1,616,793    1,382,900   CONTINGENT LIABILITIES
    Cost determined by average method-
      Operating and maintenance supplies   5,465,850    4,900,505   STOCKHOLDERS' INVESTMENT:
          Total inventories              $10,878,187  $ 8,864,779     Capital Stock, par value $2.50
                                                                        per share-Authorized 10,000,000
  Refundable federal and state                                          shares, Issued 2,185,869 shares
    income taxes                             116,971    1,073,858       at December 31, 1995 and 2,156,026 
  Deferred income taxes                      420,000      370,000       shares at December 31, 1994        $ 5,464,672  $ 5,390,065
  Prepaid expenses                            36,846       29,771     Class B Capital Stock, par value
          Total current assets           $31,732,487  $26,523,043       $2.50 per share-Authorized
                                                                        10,000,000 shares, Issued
PROPERTY, PLANT AND EQUIPMENT, at                                       2,053,421 shares at December 31,
  cost, less accumulated depreciation                                   1995 and 2,083,264 shares at 
  and depletion of $68,057,293 in 1995                                  December 31, 1994                    5,133,553    5,208,160
  and $64,459,510 in 1994                 22,517,810   20,988,202     Retained Earnings                     29,806,550   24,081,613
                                                                                                           $40,404,775  $34,679,838
DEFERRED INCOME TAXES                      2,410,000    2,420,000     Plus:  Unrealized holding gain           619,000      111,800
                                                                      Less:  Excess pension liability            -          393,214
OTHER ASSETS                               3,122,478    2,590,742       Total stockholders' investment     $41,023,775  $34,398,424

                                         $59,782,775  $52,521,987                                          $59,782,775  $52,521,987

<FN>
                             The accompanying notes are an integral part of these consolidated balance sheets.
</TABLE>


<PAGE>
<TABLE>
                  THE MONARCH CEMENT COMPANY AND SUBSIDIARIES

                       CONSOLIDATED STATEMENTS OF INCOME

             FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993



<CAPTION>
                                               1 9 9 5      1 9 9 4      1 9 9 3   
<S>                                          <C>          <C>          <C> 
Net Sales                                    $81,666,838  $73,645,650  $66,118,278 

Cost of Sales                                 62,159,712   60,994,434   52,726,913 
         Gross profit from operations        $19,507,126  $12,651,216  $13,391,365 

Selling, General and 
  Administrative Expenses                      7,215,052    6,700,034    6,852,357 
         Income from operations              $12,292,074  $ 5,951,182  $ 6,539,008 

Other Income (Expense):
  Interest income                            $   460,930  $   477,876  $   323,000 
  Other, net                                    (679,554)     (55,675)     544,863 
                                             $  (218,624) $   422,201  $   867,863 
Income before Provision for Income Taxes     $12,073,450  $ 6,373,383  $ 7,406,871 

Provision for Income Taxes                     4,400,000    2,375,000    2,415,000 

Income before Cumulative Effect of
  Accounting Changes (Per share-$1.81
  in 1995, $.94 in 1994 and $1.18 in 1993)   $ 7,673,450  $ 3,998,383  $ 4,991,871 

Cumulative Effect of Changes
  in Accounting for:
  Postretirement benefits other than pension,
    less related income tax benefits of
    $3,650,000 (Per share-$(1.29) in 1993)   $     -      $     -      $(5,480,000)
  Deferred income tax benefit (Per share-
    $.09 in 1993)                                  -            -          400,000
                                             $     -      $     -      $(5,080,000)

Net Income (Loss) (Per share-$1.81 in
  1995, $.94 in 1994 and $(.02) in 1993)     $ 7,673,450  $ 3,998,383  $   (88,129)

<FN>
        The accompanying notes are an integral part of these consolidated statements.

</TABLE>

<PAGE>
<TABLE>
                                                  THE MONARCH CEMENT COMPANY AND SUBSIDIARIES

                                              CONSOLIDATED STATEMENTS OF STOCKHOLDERS' INVESTMENT

                                              FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993


<CAPTION>
                                                                                              Unrealized   Excess  
                                      Capital Stock       Class B Capital Stock   Retained     Holding     Pension    Stockholders'
                                    Shares      Amount     Shares      Amount     Earnings       Gain     Liability    Investment 
<S>                                <C>        <C>         <C>        <C>         <C>          <C>         <C>         <C> 
Balance at January 1, 1993         2,119,645  $5,299,112      -      $    -      $29,031,432  $    -      $(232,587)  $34,097,957
  Net loss                             -           -          -           -          (88,129)      -          -           (88,129)
  Cash dividends ($.40 per share)      -           -          -           -       (1,695,673)      -          -        (1,695,673)
  Excess pension liability             -           -          -           -            -           -        232,587       232,587 

Balance at December 31, 1993       2,119,645  $5,299,112      -      $    -      $27,247,630  $    -      $   -       $32,546,742 
  Net income                           -           -          -           -        3,998,383       -          -         3,998,383 
  Cash dividends ($.44 per share)      -           -          -           -       (1,865,287)      -          -        (1,865,287)
  Stock distribution                   -           -      2,119,645   5,299,113   (5,299,113)      -          -             -      
  Transfer of shares                  36,381      90,953    (36,381)    (90,953)       -           -          -             -      
  Unrealized holding gain              -           -          -           -            -         111,800      -           111,800 
  Excess pension liability             -           -          -           -            -           -       (393,214)     (393,214)

Balance at December 31, 1994       2,156,026  $5,390,065  2,083,264  $5,208,160  $24,081,613  $  111,800  $(393,214)  $34,398,424 

  Net income                           -           -          -           -        7,673,450       -          -         7,673,450 
  Cash dividends ($.46 per share)      -           -          -           -       (1,948,513)      -          -        (1,948,513)
  Transfer of shares                  29,843      74,607    (29,843)    (74,607)       -           -          -             -      
  Unrealized holding gain              -           -          -           -            -         507,200      -           507,200 
  Excess pension liability             -           -          -           -            -           -        393,214       393,214 

Balance at December 31, 1995       2,185,869  $5,464,672  2,053,421  $5,133,553  $29,806,550  $  619,000  $   -       $41,023,775 

<FN>
                                   The accompanying notes are an integral part of these consolidated statements.
</TABLE>
<PAGE>

<TABLE>
                                    THE MONARCH CEMENT COMPANY AND SUBSIDIARIES
                                       CONSOLIDATED STATEMENTS OF CASH FLOWS
                                FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
<CAPTION>
                                                              1 9 9 5       1 9 9 4       1 9 9 3   
<S>                                                         <C>           <C>           <C>
Operating Activities:
  Net income (loss)                                         $ 7,673,450   $ 3,998,383   $   (88,129)
  Adjustments to reconcile net income (loss) to
    net cash provided by operating activities:
      Cumulative effect of accounting changes                      -             -         5,080,000
      Depreciation and depletion                              4,241,360     3,697,020     3,249,516 
      (Increase) decrease in long-term notes receivable         (42,290)        -             3,557 
      (Gain) loss on disposal of assets                        (247,088)     (260,307)        1,420 
      Gain on sale of other investments                        (110,089)      (41,341)     (458,601)
      Change in current assets and liabilities, net
        of effects from purchase of subsidiaries:
          (Increase) decrease in receivables, net              (978,667)    1,216,541    (2,412,932)
          (Increase) decrease in inventories                 (2,013,408)     (252,878)      474,391 
          (Increase) decrease in refundable federal
            and state income taxes                              956,887    (1,073,858)      243,112 
          (Increase) decrease in deferred income taxes          (50,000)       34,000      (404,000) 
          (Increase) decrease in prepaid expenses                (7,075)        1,144        (1,844)
          Increase (decrease) in accounts payable, 
            notes payable and accrued liabilities              (148,797)      302,309     1,134,960 
      (Increase) decrease in deferred income taxes               10,000       (64,000)       49,000 
      Increase in accrued postretirement expense                112,560       242,239       230,000 
      Increase (decrease) in accrued pension expense            402,255       (13,453)       73,598 
      Minority interest in earnings of subsidiaries             556,153       410,067       135,060 
          Net cash provided by operating activities         $10,355,251   $ 8,195,866   $ 7,309,108 
Investing Activities:
  Acquisition of property, plant and equipment              $(5,863,148)  $(7,047,228)  $(2,754,623)
  Net purchases and sales of subsidiaries stock                 226,573      (739,612)      (50,761)
  Proceeds from disposals of property, plant and equipment      349,703       289,260        39,104 
  Payment for purchases of stock investments, net               (90,947)   (1,547,507)     (379,531)
  Proceeds from disposals of stock investments                  721,428       240,823     1,731,250 
  (Increase) decrease in other assets                          (513,073)      (81,024)       14,706 
  (Increase) decrease in short term investments              (1,714,695)    4,528,008    (3,228,749)
          Net cash used for investing activities            $(6,884,159)  $(4,357,280)  $(4,628,604)
Financing Activities:
  Subsidiaries' dividends paid to minority interest         $   (98,118)  $   (55,180)  $   (47,562)
  Cash dividends                                             (1,865,288)   (1,780,501)   (1,695,673)
  Subsidiaries' purchase of treasury stock, net                (105,200)        -          (313,542)
          Net cash used for financing activities            $(2,068,606)  $(1,835,681)  $(2,056,777)

Net Increase in Cash and Cash Equivalents                   $ 1,402,486   $ 2,002,905   $   623,727 
Cash and Cash Equivalents, beginning of year                  3,668,782     1,665,877     1,042,150 
Cash and Cash Equivalents, end of year                      $ 5,071,268   $ 3,668,782   $ 1,665,877 
<FN>
          The accompanying notes are an integral part of these consolidated statements.
</TABLE>
<PAGE>

                  THE MONARCH CEMENT COMPANY AND SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                       DECEMBER 31, 1995, 1994 AND 1993


(1) SUMMARY OF ACCOUNTING POLICIES:

     (a) Description of Business--The Monarch Cement Company (Monarch) has
been principally engaged, throughout its history, in the manufacture and sale
of portland cement.  Monarch is also in the ready-mixed concrete, concrete
products and sundry building materials business through its subsidiaries. 
Monarch has direct control of certain operating companies which have been
deemed to be subsidiaries within the meaning of the rules and regulations of
the Securities and Exchange Commission.  Accordingly, the financial statements
of such companies have been consolidated with Monarch's financial statements. 
All significant intercompany transactions have been eliminated in
consolidation.  Minority interests in net income have been recorded as
reductions in other income in the accompanying statements of income.  The
minority interests in net income were $556,153, $410,067 and $135,060 during
1995, 1994 and 1993.

     (b) Use of Estimates--The preparation of financial statements in
conformity with generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period.  Actual results could differ from those
estimates.

     (c) Inventories--Inventories of finished cement, work in process and
building products are priced by the last-in, first-out (LIFO) method.  Under
the average cost method of accounting (which approximates current cost), these
inventories would have been $1,396,000, $1,463,000 and $1,246,000 higher than
those reported at December 31, 1995, 1994 and 1993, respectively.  Income of
$6,000, $20,000 and $13,000 was realized from the liquidation of LIFO
inventories in 1995, 1994 and 1993, respectively.  The cost of manufactured
items includes all material, labor, factory overhead and production-related
administrative overhead required in their production.

     Other inventories are purchased from outside suppliers.  Fuel and other
materials are priced by the first-in, first-out (FIFO) method while operating
and maintenance supplies are priced by the average cost method.

     (d) Property, Plant and Equipment--Depreciation of property, plant and
equipment is provided by charges to operations over the estimated useful lives
of the assets using primarily the declining balance method.  Depletion rates
for quarry lands are designed to amortize the cost over the estimated
recoverable reserves.  Expenditures for improvements which significantly
increase the assets' useful lives are capitalized while maintenance and
repairs are charged to expense as incurred.

     (e) Net Income per Capital Share--Net income per share of capital stock
has been calculated based on the weighted average shares outstanding during
each of the three years.  The weighted average number of shares after giving
retroactive effect to a stock distribution of one share of Class B Capital
Stock for each share of Capital Stock outstanding was 4,239,290 in 1995, 1994
and 1993. 

     (f) Investments--Effective January 1, 1994, The Monarch Cement Company
and Subsidiaries (the Company) adopted Financial Accounting Standard (FAS) No.
115, "Accounting for Certain Investments in Debt and Equity Securities".  The
Company's short term investments consist of corporate commercial paper with
maturities of six months or less and have been classified as held-to-maturity. 
The amortized cost, which approximates market value, is reflected in the
balance sheet.  Other assets includes equity securities which have been
classified as available-for-sale.  Realized gains are computed using the
specific identification method.  The equity investment results for the years
ended December 31, 1995 and 1994 are as follows:

<TABLE>
<CAPTION>
                                                  1995         1994    
          <S>                                  <C>          <C>
          Fair value of investments            $2,680,200   $2,358,400 
          Cost of investments                   1,651,200    2,171,600 
            Fair value in excess of cost       $1,029,000   $  186,800 
          Unrealized gain recorded in equity   $  619,000   $  111,800 
          Deferred income taxes                   410,000       75,000 
                                               $1,029,000   $  186,800 

          Proceeds from sale of securities     $  721,428   $  240,823 
          Realized gains                       $  110,089   $   41,341

</TABLE>

     (g) Statements of Cash Flows--The Company considers overnight cash
investments to be cash equivalents.  All other highly liquid short term
investments, generally with an original maturity of six months or less, are
considered short term investments.  Interest and income taxes paid during each
of the three years for the period ended December 31, are as follows:

<TABLE>
<CAPTION>
                                             1995         1994         1993   
               <S>                        <C>          <C>          <C>
               Interest paid              $    4,115   $    2,542   $    2,709
               Income taxes paid          $3,316,543   $4,158,015   $1,886,630
</TABLE>

(2) INCOME TAXES:

     Effective January 1, 1993, the Company implemented the provisions of
Financial Accounting Standard (FAS) No. 109, "Accounting for Income Taxes". 
FAS 109 utilizes the liability method whereby deferred taxes are determined
based on the estimated future tax effects of differences between the financial
statement and tax bases of assets and liabilities given the provisions of the
enacted tax laws.  The Company reported the entire catch-up effect during 1993
resulting in a $400,000 increase in net income during 1993.   

     The provision for federal and state income taxes in the accompanying
consolidated statements of income differs from the amount computed at the
federal statutory income tax rate as follows:

<TABLE>
<CAPTION>
                                              1995        1994        1993    
    <S>                                    <C>         <C>         <C>
    Provision for (benefit from) federal
      taxes at statutory rates-
        Currently payable                  $4,405,000  $2,277,000  $2,860,000 
        Deferred                             (300,000)   (110,000)   (355,000)
    State income taxes, net of federal
      tax benefit                             550,000     230,000     318,000 
    Percentage depletion                     (487,000)   (265,000)   (263,000)
    Utilization of net operating losses         -           -        (140,000)
    Minority interest in consolidated
      income                                  222,000     164,000      54,000 
    Other, net                                 10,000      79,000     (59,000)
                                           $4,400,000  $2,375,000  $2,415,000 
</TABLE>

<TABLE>
     The tax effect of significant temporary differences representing deferred
tax assets and (liabilities) are as follows:

<CAPTION>
                                                1995             1994     
     <S>                                     <C>              <C>
     Current:
       Reserve for bad debts                 $   215,000      $   171,000 
       Vacation                                  205,000          199,000 
         Net current deferred tax assets     $   420,000      $   370,000 

     Noncurrent:
       Depreciation                          $(1,148,000)     $(1,376,000)
       Postretirement benefits                 3,886,000        3,841,000 
       Pension                                    73,000           20,000 
       Unrealized holding gains                 (410,000)         (75,000)
       Other, net                                  9,000           10,000 
         Net long-term deferred tax assets   $ 2,410,000      $ 2,420,000 

</TABLE>

     The Company did not record any valuation allowances against deferred tax
assets at December 31, 1995 or 1994 as it is more likely than not that the
benefits will be realized in future years.  

(3) PROPERTY, PLANT AND EQUIPMENT:

<TABLE>
     Property, plant and equipment at December 31, 1995 and 1994 consisted of:

<CAPTION>
                                     Depreciation
                                     Lives (Years)     1995         1994    
     <S>                                 <C>        <C>          <C>
     Quarry lands                                   $   710,188  $   667,838
     Mill site and buildings             12 - 50     11,282,945   11,172,285
     Machinery and equipment              5 - 25     60,838,275   54,901,479
     Transportation equipment             3 - 12     15,280,248   14,319,374
     Office furniture and fixtures        5 - 20        800,115      763,093
     Office and other buildings          10 - 30      1,632,722    1,497,458
     Construction in process                             30,610    2,126,185
                                                    $90,575,103  $85,447,712
     Less--Accumulated depreciation and depletion    68,057,293   64,459,510
                                                    $22,517,810  $20,988,202
</TABLE>

(4) PENSION PLANS:

     Monarch has defined benefit pension plans covering substantially all
permanent employees.  Plans covering staff (salaried) employees provide
pension benefits that are based on years of service and the employee's last
sixty calendar months of earnings or the highest five consecutive calendar
years of earnings out of the last ten calendar years of service, whichever is
greater.  Plans covering production (hourly) employees provide benefits of
stated amounts for each year of service.  Generally, Monarch's funding policy
is to contribute annually the maximum amount that can be deducted for federal
income tax purposes.  Contributions are intended to provide for benefits
attributed to service to date and for those expected to be earned in the
future.

<TABLE>
     The following tables set forth the plans' funded status and amounts
recognized in the Company's balance sheets at December 31, 1995, 1994 and
1993:

<CAPTION>
                                                         Humboldt    Des Moines 
FOR THE YEAR ENDED DECEMBER 31, 1995:         Staff     Production   Production  
<S>                                       <C>           <C>          <C>
Actuarial present value of benefit
  obligation:
  Vested benefit obligation               $ 10,025,749  $ 6,785,340  $ 2,821,089 
  Nonvested benefit obligation                 137,186      196,304       20,978 
    Accumulated benefit obligation        $ 10,162,935  $ 6,981,644  $ 2,842,067 
Projected benefit obligation              $(10,882,232) $(6,981,644) $(2,842,067)
Plan assets at fair value, primarily
  listed stocks and U.S. government
  obligations                               11,580,708    7,697,191    2,972,667 
    Plan assets in excess of projected     
      benefit obligation                  $    698,476  $   715,547  $   130,600 
Unrecognized net gain from past
  experience different from that assumed
  and effects of changes in assumptions       (999,752)    (819,628)    (368,090)
Prior service cost                               -          396,854        -   
Unrecognized net obligation (asset) at
  December 31, 1995 due to initial 
  application of FAS Statement No. 87           80,625      (22,406)       5,442 
    (Accrued) prepaid pension expense     $   (220,651) $   270,367  $  (232,048)
Net pension cost (income) for 1995
  included the following components:
  Service cost-benefits earned during
    the period                            $    129,060  $    73,788  $    15,613 
  Interest cost on projected benefit
    obligation                                 795,516      517,675      211,160 
  Actual return on plan assets              (2,441,742)  (1,636,137)    (633,241)
  Net amortization and deferral              1,600,739    1,087,222      412,235 
    Net pension expense                   $     83,573  $    42,548  $     5,767 

<PAGE>
<CAPTION>
                                                         Humboldt    Des Moines 
FOR THE YEAR ENDED DECEMBER 31, 1994:         Staff     Production   Production  
<S>                                        <C>          <C>          <C>
Actuarial present value of benefit
  obligation:
  Vested benefit obligation                $ 9,052,837  $ 6,596,524  $ 2,641,836 
  Nonvested benefit obligation                 154,323      161,537       33,092 
    Accumulated benefit obligation         $ 9,207,160  $ 6,758,061  $ 2,674,928 
Projected benefit obligation               $(9,808,826) $(6,758,061) $(2,674,928)
Plan assets at fair value, primarily
  listed stocks and U.S. government
  obligations                                9,839,708    6,677,762    2,589,358 
    Plan assets in excess of (less than)      
      projected benefit obligation         $    30,882  $   (80,299) $   (85,570)
Unrecognized net gain from past
  experience different from that assumed
  and effects of changes in assumptions       (262,023)      (5,099)    (147,060)
Prior service cost                               -          425,201        -   
Unrecognized net obligation (asset) at
  December 31, 1994 due to initial
  application of FAS Statement No. 87           94,063      (26,888)       6,349 
Adjustment to recognize minimum
  required liability                             -         (393,214)       -     
    Accrued pension expense                $  (137,078) $   (80,299) $  (226,281)
Net pension cost (income) for 1994
  included the following components:
  Service cost-benefits earned during
    the period                             $   232,875  $    83,708  $    27,995 
  Interest cost on projected benefit
    obligation                                 727,869      505,116      198,101 
  Actual return on plan assets                 229,762      157,599       60,957 
  Net amortization and deferral             (1,151,220)    (776,970)    (309,245)
    Net pension (income) expense           $    39,286  $   (30,547) $   (22,192)

<PAGE>
<CAPTION>
                                                         Humboldt    Des Moines 
FOR THE YEAR ENDED DECEMBER 31, 1993:         Staff     Production   Production  
<S>                                        <C>          <C>          <C>
Actuarial present value of benefit
  obligation:
  Vested benefit obligation                $ 9,130,744  $ 7,134,667  $ 3,041,037 
  Nonvested benefit obligation                 278,826      108,697        5,138 
    Accumulated benefit obligation         $ 9,409,570  $ 7,243,364  $ 3,046,175 
Projected benefit obligation              $(10,332,438) $(7,243,364) $(3,046,175)
Plan assets at fair value, primarily
  listed stocks and U.S. government
  obligations                               10,696,348    7,465,682    2,877,461 
    Plan assets in excess of (less than)      
      projected benefit obligation        $    363,910  $   222,318  $  (168,714)
Unrecognized net gain from past
  experience different from that assumed
  and effects of changes in assumptions       (569,203)    (362,128)     (87,015)
Prior service cost                               -          453,548        -    
Unrecognized net obligation (asset) at
  December 31, 1993 due to initial
  application of FAS Statement No. 87          107,501      (31,370)       7,256 
    (Accrued) prepaid pension expense     $    (97,792) $   282,368  $  (248,473)
Net pension cost (income) for 1993
  included the following components:
  Service cost-benefits earned during
    the period                            $    130,734  $    60,864  $    14,371 
  Interest cost on projected benefit
    obligation                                 741,749      525,339      251,463 
  Actual return on plan assets              (1,621,772)  (1,239,221)    (471,286)
  Net amortization and deferral                789,260      646,479      245,618 
    Net pension (income) expense          $     39,971  $    (6,539) $    40,166 

</TABLE>

     In determining the actuarial present value of the projected benefit
obligation, the assumed discount rate was 7.5%, 8.0% and 7.0% at the end of
1995, 1994 and 1993, respectively.  The assumed rate of increase in future
compensation levels was 4.5% in 1995 and 1993 and 5% in 1994.  The expected
long-term rate of return on assets was 9% for 1995, 1994 and 1993.

(5) CONTINGENT LIABILITIES:

     According to various agreements with certain minority stockholders, 
under specified circumstances, the Company is obligated to acquire such
shares, if requested to do so, at a previously established value ($1,942,533
at December 31, 1995).

(6) STOCK DISTRIBUTION:

     On April 25, 1994, a stock split was effected whereby one share of
Class B Capital Stock was issued for each currently outstanding share of
Capital Stock.  The total par value of the new shares ($5,299,113) was
transferred from retained earnings to the capital stock account.  Class B
Capital Stock has supervoting rights of ten votes per share and restricted
transferability.  Class B Capital Stock is convertible at all times into
Capital Stock, which is freely transferable, on a share-for-share basis. 
Capital Stock has only one vote per share.

(7) SEGMENTS OF BUSINESS:

<TABLE>
<CAPTION>
                                            Ready-Mixed
                                             Concrete  
                                  Cement    and Sundry  Adjustments 
FOR THE YEAR ENDED                 Manu-     Building       and
  DECEMBER 31, 1995:             facturing   Materials  Eliminations  Consolidated
 <S>                            <C>         <C>         <C>           <C>
  Sales to unaffiliated
    customers                   $33,080,508 $48,586,330 $     -       $81,666,838 
  Intersegment sales             10,037,591     231,041  (10,268,632)       -     
    Total net sales             $43,118,099 $48,817,371 $(10,268,632) $81,666,838 
  Income from operations        $ 9,870,468 $ 2,421,606               $12,292,074 
  Other income, net                                                      (218,624)
    Income before income taxes                                        $12,073,450 
  Identifiable assets at
    December 31, 1995           $27,372,332 $14,196,280               $41,568,612 
  Corporate assets                                                     18,214,163 
    Total assets at
      December 31, 1995                                               $59,782,775 


FOR THE YEAR ENDED
  DECEMBER 31, 1994:
  Sales to unaffiliated
    customers                   $27,333,613 $46,312,037 $     -       $73,645,650 
  Intersegment sales              8,919,667     267,523  (9,187,190)        -     
    Total net sales             $36,253,280 $46,579,560 $(9,187,190)  $73,645,650 
  Income from operations        $ 3,339,160 $ 2,612,022               $ 5,951,182 
  Other income, net                                                       422,201 
    Income before income taxes                                        $ 6,373,383 
  Identifiable assets at
    December 31, 1994           $23,450,484 $13,589,370               $37,039,854 
  Corporate assets                                                     15,482,133 
    Total assets at
      December 31, 1994                                               $52,521,987 

<PAGE>
<CAPTION>
                                            Ready-Mixed
                                             Concrete  
                                  Cement    and Sundry  Adjustments 
FOR THE YEAR ENDED                 Manu-     Building       and       
  DECEMBER 31, 1993:             facturing   Materials  Eliminations  Consolidated
 <S>                            <C>         <C>         <C>           <C>
  Sales to unaffiliated
    customers                   $24,004,324 $42,113,954 $     -       $66,118,278 
  Intersegment sales              8,177,516     195,744  (8,373,260)        -     
      Total net sales           $32,181,840 $42,309,698 $(8,373,260)  $66,118,278 
  Income from operations        $ 5,059,722 $ 1,479,286               $ 6,539,008 
  Other income, net                                                       867,863 
    Income before income taxes                                        $ 7,406,871 
  Identifiable assets at
    December 31, 1993           $21,134,737 $13,072,749               $34,207,486 
  Corporate assets                                                     15,655,332 
    Total assets at
      December 31, 1993                                               $49,862,818 

</TABLE>

     The Company operates principally in two industries, the manufacture of
portland cement and the sale of ready-mixed concrete and sundry building
materials.  Total sales by industry before adjustments and eliminations
includes both sales to unaffiliated customers, as reported in the Company's
consolidated statements of income and retained earnings, and intersegment
sales which are accounted for by the same method as all other sales.  Sales by
industry are made primarily to ready-mixed concrete plants and contractors,
for use in highways, airports, dams, housing, commercial buildings and other
construction.  Receivables are generally collected within thirty to sixty days
of the sale, but are occasionally delayed until completion of the project. 
The Company's bad debt write-offs are generally less than .5% of net sales. 

     Income from operations is total net sales less operating expenses.  In
computing income from operations, none of the following items have been added
or deducted:  general corporate income and expenses, interest expense and
income taxes.  Also, no amounts have been excluded for corporate
administrative expense because the amounts which cannot be identified by
industry are not significant.  Depreciation for cement manufacturing and
ready-mixed concrete, respectively, were $2,081,196 and $2,149,729 in 1995;
$1,687,532 and $1,999,053 in 1994 and $1,594,093 and $1,644,988 in 1993. 
Capital expenditures for cement manufacturing and ready-mixed concrete,
respectively, including capital assets of businesses acquired were $3,754,435
and $2,108,713 in 1995; $4,152,827 and $2,894,401 in 1994 and $1,083,436 and
$1,671,187 in 1993.  Identifiable assets by industry are those assets that are
used in the Company's operations in each industry. 

     During 1995, 1994 and 1993, there were no sales to any one customer in
excess of 10% of consolidated net sales. 

(8) POSTRETIREMENT BENEFITS:

     Monarch provides certain postretirement health care, accident and life
insurance benefits to all retired employees who, as of their retirement date,
have completed ten or more years of credited service under the pension plans. 
These benefits are self-insured by Monarch and are paid out of Monarch's
general assets. 

     Monarch adopted Financial Accounting Standard (FAS) No. 106, "Employer's
Accounting for Postretirement Benefits other than Pensions" as of January 1,
1993.  This new standard requires that the expected cost of these
postretirement benefits be charged to expense during the years the employees
render service.  Monarch reported the entire transition obligation as of
January 1, 1993 of $9,130,000, net of deferred income tax benefit of
$3,650,000, as a $5,480,000 decrease in net income during 1993.
 
<TABLE>
     The following table sets forth the plans' combined funded status
reconciled with the amount shown in the Company's balance sheets as of
December 31, 1995 and 1994:

<CAPTION>
                                                    1995          1994   
<S>                                             <C>           <C>
Accumulated postretirement benefit obligation:
  Retirees                                      $ 7,825,000   $ 8,374,000 
  Other fully-eligible participants                 561,000       867,000 
  Other active participants                       2,126,000     1,955,000 
    Total benefit obligation                    $10,512,000   $11,196,000 
Unrecognized net loss from differences
  between past experience and that assumed         (797,000)   (1,594,000)
    Accrued postretirement liability            $ 9,715,000   $ 9,602,000 

Net periodic postretirement benefit cost
  included the following components:
  Service cost                                   $  126,000    $   88,000
  Interest cost                                     872,000       845,000
  Unrecognized net loss                              38,000        68,000 
    Net periodic postretirement benefit cost     $1,036,000    $1,001,000 

</TABLE>

     The assumed annual rate of increase in the per capita cost of covered
health care benefits was 8%, 9% and 10% for 1995, 1994 and 1993, respectively. 
This rate is assumed to decrease 1% per year to an ultimate rate of 4%. 
Increasing the assumed health care cost trend rates by one percentage point
each year would increase the accumulated postretirement benefit obligation as
of December 31, 1995 by $1,163,067 and would result in an increase in net
periodic postretirement benefit cost of $103,616.

     A weighted average discount rate of 7.5% and 8% at December 31, 1995 and
1994, respectively, was used to determine the accumulated postretirement
benefit obligation.

(9) NEW PRONOUNCEMENTS:

     The Financial Accounting Standard Board has issued Financial Accounting
Standard No. 121, "Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Assets to be Disposed of", which must be adopted no later than
1996.  This standard provides a framework for evaluating the realizability of
the Company's investments in long-lived assets.  At this time, the Company
does not anticipate adoption of the standard will have a material impact on
its results of operations or financial position.  The Financial Accounting
Standards Board also issued Financial Accounting Standard No. 123, "Accounting
for Stock Based Compensation".  Adoption of this standard is required in 1996. 
The Company has no stock-based compensation plans and as such, will not be
impacted by the standard.