9- the present rate. Our straight contract construction, virtually the sole source of our livelihood for the first 50 years of our corporate existence, made a small contribution to profits in 1959, lost money in the first half of 1960, and may or may not overcome this deficit in the last half of the year. Contract construction has not recorded satisfactory profits for the past several years. Perhaps this is a result of management preoccupation and pursuit in greener fields. Certainly it is in part the result of restricting construction activities from time to time to make funds available for mining and land development activities. In some measure the decline in earnings is in keeping with trends in the industry where even the most efficient companies have been faced with lower margins, lesser rates of return on net worth and have been able to increase or maintain earnings only by doing a greater and greater volume of business. Meanwhile our assets employed in contract construction have been reduced to about $12,000,000, excluding our dredging equipment. Construction earnings cannot be forecast with any great degree of accuracy. Our backlog of uncompleted construction work amounts to approximately $94 million, but its quality is not consistent with its quantity. It does not have an attractive profit potential because it is too highly weighted with cost-plus work and not well balanced with our available equipment, leaving us a burden of idle equipment costs to absorb. We do anticipate receiving additional income in the second half of this year from favorable action on claims for work performed in earlier years and we have made certain organizational changes and economies that should be helpful. However, we need additional attractive domestic heavy construction business before this branch