AMERICAN BUSINESS CORPORATION
           11921 Brinley Avenue - Louisville, KY  40243
         Telephone (502) 244-1964 - Facsimile (502) 244-1327



May 18, 2006
Via Facsimile:  (202) 772-9202


Claire Erlanger, Division of Corporate Finance
US Securities and Exchange Commission
Washington, DC  20549

Re:  Commission File Number 033-16417-LA

Dear Ms. Erlanger:

Enclosed  please find our  response  to your  letter  of April 14, 2006
presented in the same order as your comments:


Form 10-KSB for the year ended December 31, 2004

Financial Statements
Condensed Balance Sheets, page 19
Statements of Operations, page 20


1.   The Company's Form 10-KSB for the  year  ended  December 31, 2005,
which is currently in the process of being finalized by the Company and
its  independent  accountants,  includes  a  restatement  of  the  2004
financial statements and a summary of the restatement and its effect on
2004 and periods prior to 2004 in Note 2 to the financial statements.


Notes to Financial Statements
Note 4 - Discontinued  Operation  and Net  Liabilities of  Discontinued
         Operations, page 24


2.  Enclosed  please  find  an  analysis  of  the  Company's  Estimated
Liability  for  Claims  and  Litigation,  formerly  Net  Liabilities of
Discontinued  Operations (Exhibit A), revised  to more clearly describe
by year, the  nature and amount of all material increases and decreases.




As our 2005 Form 10-KSB is  currently  in the process  of finalization,
the  analysis has  been brought  forward through  December 31, 2005 for
your convenience.

I hope this response completes  your review of our reports for the year
2004.  However, should  you wish any further  discussion  I'll  welcome
your call.

Sincerely,


/s/Anthony R. Russo

Anthony R. Russo
President
























Enclosure
                                   2


EXHIBIT "A"




Balance January 1, 2001 			            13,422,749

Increase in 2001 for additional claims    A                  3,537,755
Decrease in 2001 for claims resolved                                 -
						            ----------
Balance December 31, 2001                                   16,960,504

Increase in 2002 for additional claims                               -
Decrease in 2002 for claims resolved -
         Cash paid on claims              B    (1,734,000)
         Balance of claims forgiven       B   (10,625,000)
                                               ----------
                                                           (12,359,000)
                                                            ----------
Balance December 31, 2002                                    4,601,504

Increase in 2003 for additional claims                               -
Decrease in 2003 for claims resolved -
         Cash paid on claims              C       (10,616)
         Balance of claims forgiven       C      (150,231)
                                               ----------
                                                              (160,847)
                                                            ----------
                                                             4,440,657
Increase in 2004 for additional claims                               -
Decrease in 2004 for claims resolved                                 -
                                                            ----------
                                                             4,440,657
Increase in 2005 for additional claims                               -
Decrease in 2005 for claims resolved -
         Cash paid on claims by Midwest   D      (150,000)
         Balance of claims forgiven       D    (2,702,000)
                                               ----------
                                                            (2,852,000)
                                                            ----------
Balance December 31, 2005                                    1,588,657
                                                            ==========



A     Could not locate supporting detail.

B     Represents  settlements  with  GE Capital  Corporation, Allstates
      World Cargo, First Insurance  Funding Corporation,  and two other
      claiments.

C     Represents settlement of Wells Fargo Bank and other claims.

D     Represents settlement of Wachovia Bank (Southtrust) claim.