The purpose of this study was to test some of the controversial issues raised by researchers studying the performances of children of middle class and low socioeconomic status (SES). In addition to studying the effects of SES and levels of intelligence on rote learning and more complex reasoning processes, the effects on reading achievement of different combinations of learning skills and environmental factors were examined. The subjects were 35 children in each of the three groups low, middle, and high SES, chosen at random from grade 1 classes in three school areas. All of the children were approximately six years in age. In a pre-grade 1 battery of psychological tests, the children had been examined for ratings in the Sprigle School Readiness Screening Test and the Stanford-Binet Test. Raven's Progressive Matrices and a word recognition list were presented when the children had been in Grade 1 for four months. To investigate more specifically the effects of intelligence and SES, four criterion groups of twelve children were selected and a 2 x 2 factorial analysis of variance was applied to the test results of the 48 children. Results indicated that rote skills and more complex reasoning processes do not seem to be differentially distributed among SES classes. It is held, however, that SES undoubtedly is a highly significant factor where scholastic achievement is concerned. (RJ)