March 22, 2005 Ms. Linda Cvrkel Branch Chief Division of Corporation Finance Securities and Exchange Commission Mail Stop 03-05 Washington, D.C. 20549 RE: Patriot Transportation Holding, Inc. Form 10-K for the year ended September 30, 2004 Form 10-Q for the quarter ended December 31, 2004 Commission File #: 000-17554 Dear Ms. Cvrkel: Thank you for your correspondence dated March 18, 2005. We appreciate your assistance with compliance with the applicable disclosure requirements. Our responses to your comments are set forth below and have been keyed to your comments. FORM 10-K FOR THE YEAR ENDED SEPTEMBER 30, 2004 Schedule II. Valuation and Qualifying Accounts - ------------------------------------------------ 1. We note from your response to comment 3 that the reason the accrued balances at the beginning of 2003 and 2004 were significantly less than the expenses in the following years was due to insurance premiums. Based upon your response, it appears that insurance premiums expenses are not being included in your accruals. Please explain why. COMPANY RESPONSE: Insurance premiums are not included in the accrued balances at the beginning of 2003 or 2004. However, insurance premiums are included in the columns "Additions Charged to Costs and Expenses" and "Deductions". The Company's risk insurance policies run from October 1 through September 30. All premiums are paid and expensed within each fiscal year so there is no beginning or ending accrual for insurance premiums. The following schedule should help clarify my response: Balance at Additions Additions Deductions Balance at Beginning Charged to Charged to And End of Year Expenses Other Accts Payments of Year YEAR ENDING 9/30/04: <s> <c> <c> <c> <c> <c> Claims 6,779,345 3,562,400 3,688,088 6,653,657 Premiums 0 4,406,016 4,406,016 0 --------- --------- --------- --------- --------- Accrued Risk Insurance 6,779,345 7,968,416 8,094,104 6,653,657 YEAR ENDED 9/30/2003: Claims 6,326,406 4,151,065 3,698,126 6,779,345 Premiums 0 3,838,509 3,838,509 0 --------- --------- --------- --------- --------- Accrued Risk Insurance 6,326,406 7,989,574 7,536,635 6,779,345 </table> The Company hereby acknowledges that: * the Company is responsible for the adequacy and accuracy of the disclosure in the filings; * staff comments and changes to disclosure in response to staff comments in the filings reviewed by the staff do not foreclose the Commission from taking any action with respect to the filing; and * the Company may not assert staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States. If you have any comments or questions regarding our responses, please contact me at the above-listed address or by telephone at (904) 396-5733 Ext. 3100. Sincerely, /s/ Ray M. Van Landingham Ray M. Van Landingham Vice President and Chief Financial Officer