eight above drill jumbo at heading of 17,000-ft gateway tunnel built near ogden utah for u s bureau of reclamation's weber basin project below erecting cement storage silos for ideal cement company plant in salt lake city by continuous-pour operation using slipforms handled with pneumatic jacks right below an exposed coal seam discovered by utah construction company during its exploratory work on navajo indian reservation in new mexico on which it has an exploration permit tributed as a dividend to its stockholders at the close of the year we continued to hold 123,703 shares which are carried on our books at our cost of 253,029 an average of 2-05 a share based on market value as of october 31 1954 this stock was worth 21,125 a share or 2,613,226 for the shares we continue to hold in spite of the reduc tion in shares during the year our holdings in permanente stock based on market value increased 945,658 during the year but none of this increase is reflected in our income reported for the year 1954 dividends of 109,821 from permanente were included in our income for the year in the remaining affiliated companies we have a total investment of 3,382,751 and our percentage of ownership ranges from 35 of the equity stock upward the major investment in this group is in the three companies concerned with peruvian iron ore and the results achieved on this investment to date are very satisfying of lesser magnitude is the investment in the housing companies for the most part our participation in these companies was an outgrowth of housing construction contracts and the equities that we hold are junior to heavy mortgage indebtedness which makes their true worth difficult to evaluate and highly speculative at the present time the remain ing affiliated companies are largely incorporated joint ventures with other construction companies formed to perform construction con tracts and liquidated if no other work is available a comparison of the underlying book value of these subsidiary and affiliated companies excluding permanente cement stock and after allowances for possible losses indicates a value of approximately 9,500,000 compared to a carrying cost of 4,059,169 on the books of utah construction company none of these stocks are marketable except permanente and therefore it is difficult to appraise whether the indicated underlying book value would be realizable under condi tions of an actual sale financial condition utah construction company is in strong financial condition working capital at the close of the year was 3,304,638 and is considered ample for the company's present needs during the year the company reduced its long term liabilities by 79,632 to 2,849,595 at the close of the year the money borrowed from banks was 2,400,000 of which 300,000 was included in current liabilities and 2,100,000 was carried as a long term liability under its term loan agreement the company is obligated to pay instalments of 300,000 each on june 16 in 1955 and 1956 and the balance of 1,800,000 in 1957 through its banking facilities the company had available during the year a revolving credit of 3,000,000 but subse quently we arranged with the banks to cancel this credit in order to eliminate the expense of standby charges in our opinion the assets of the company are conservatively valued the carrying costs of our investments in other companies is well below their true worth excluding wholly owned subsidiaries our investment in other companies is carried at 3,567,000 and the market value of the permanente cement shares alone is 2,613,226 the value of our other fixed assets are believed to be conservatively stated net worth as of october 31 1954 the net worth of utah construction company was 16,929,608 or the equivalent of 19.29 a share this compares with a net worth at the close of the preceding year of 16,631,593 or 18.95 a share after giving effect to the 5 for 1 stock split approved by the stockholders at the stockholders meeting held january 1954 dividends in 1954 dividends of 0.90 a share in cash and 1/70 of a share of permanente cement company stock were distributed to stockholders this compares with 0.80 a share in cash during 1953 after adjust ment for the stock split personnel allen d christensen was elected as president at the annual stock holders meeting in january 1954 succeeding lester s corey who retired from active management after more than 53 years of faithful service we know that we speak for all the stockholders in expressing our genuine appreciation to mr corey for his excellent work in fur therance of the company's affairs and we are indeed fortunate to have