Noncumulative Preferred Stock:

On January 1, 2001 your company has been authorized to issue 200,000 shares of $25 par common stock and 100,000 shares of $50 par value, %8 noncumulative preferred stock. 160,000 shares of common and 100,00 shares of preferred stock have been issued and are outstanding.

Your company made the following income:

Year Income

2001 0

2002 100,000

2003 350,000

2004 1,300,000

On December 31, 2004 your Board of Directors declared dividends for the preferred stock as of 2001 to 2004 and 40 cents for common stock holders of record on January 10, 2005, to be paid on March 31, 2005