Dec 1st

Preferred 2% Stock, $50 par (230,000 shares authorized, 87,000 shares issued)	$4,350,000
Paid-In Capital in Excess of ParPreferred Stock	522,000
Common Stock, $30 par (1,000,000 shares authorized, 397,000 shares issued)	11,910,000
Paid-In Capital in Excess of ParCommon Stock	1,191,000
Retained Earnings	155,490,000

At the annual stockholders meeting on March 31, the board of directors presented a plan for modernizing and expanding plant operations at a cost of approximately $11,000,000. The plan provided (a) that a building, valued at $3,314,000, and the land on which it is located, valued at $902,000, be acquired in accordance with preliminary negotiations by the issuance of 124,000 shares of common stock valued at $34 per share, (b) that 40,700 shares of the unissued preferred stock be issued through an underwriter, and (c) that the corporation borrow $3,850,000. The plan was approved by the stockholders and accomplished by the following transactions:

May	11	Issued 124,000 shares of common stock in exchange for land and a building, according to the plan.
	20	Issued 40,700 shares of preferred stock, receiving $53 per share in cash.
	31	Borrowed $3,850,000 from Laurel National, giving a 4% mortgage note.