<PAGE>
SELIGMAN ADVISORS, INC.
an affiliate of
[LOGO]
J. & W. SELIGMAN & CO.
INCORPORATED
ESTABLISHED 1864
This report is intended only for the information of shareholders or those who
have received the offering prospectus covering shares of Capital Stock of
Seligman Cash Management Fund, Inc., which contains information about the sales
charges, management fee, and other costs. Please read the prospectus carefully
before investing or sending money.
TXCM2 12/98
SELIGMAN
---------------
CASH MANAGEMENT
FUND, INC.
Annual Report
December 31, 1998
------
A Money Market Mutual Fund
Seeking to Preserve Capital
and to Maximize Liquidity
and Current Income
<PAGE>
To the Shareholders
During 1998, Seligman Cash Management Fund continued to invest in high-quality
money market instruments to preserve its shareholders' capital while providing
income and maximizing liquidity. A discussion with your Portfolio Manager
appears on page 2.
The past year was one of continued growth for the US economy, with real domestic
growth of 3.9%, marking the eighth year of economic expansion. Throughout the
year, unemployment was down and consumer spending up, all in a low-inflation
environment.
However, financial uncertainty throughout the world placed a drag on US economic
growth. In response, the Federal Reserve Board cut the federal-funds rate three
times. These actions confirmed the Fed's resolve to protect the US economy from
the global financial crisis and markets responded favorably throughout November
and December.
As investors everywhere became increasingly concerned about a global financial
meltdown, money poured into the world's highest credit quality securities -- US
Treasury bonds. This "flight to quality" helped to push US Treasury yields to
30-year lows. At the same time, the federal budget surplus caused a decrease in
the overall supply of bonds, as the government needed less paper to finance
spending. The yield on the benchmark three-month US Treasury bill fell from
5.34% at the beginning of 1998 to 4.46% on December 31, 1998.
Seligman continues to work to ensure that all of its operations are prepared for
the challenges posed by the Year 2000 (Y2K) computer problem. We are confident
that there will be no disruption in the investment and shareholder services
provided by your Fund as a result of Y2K. In addition, your portfolio management
team considers the potential ramifications of Y2K when making decisions on which
securities should be held by the Fund.
Thank you for your continued support of Seligman Cash Management Fund in 1998.
We look forward to serving your investment needs in 1999. The Fund's portfolio
of investments and financial statements follow this letter.
By order of the Board of Directors,
/s/ William C. Morris
William C. Morris
Chairman
/s/ Brian T. Zino
Brian T. Zino
President
January 29, 1999
1
<PAGE>
Interview With Your Portfolio Manager, Gary S. Zeltzer
Q. How did economic and market factors influence Seligman Cash Management
Fund's results in 1998?
A. The US economic expansion has continued for eight consecutive years, and
while the pace of growth has been slowing, the economy remains strong.
Throughout the year, unemployment was down and consumer spending was up,
all in a low-inflation environment.
Global events affected the US economy and markets as the year progressed.
The Asian economic crisis that began in a few countries in late 1997 spread
throughout the world's emerging markets. The Russian government defaulted on
its debt and devalued its currency. Fear then spread to Latin America, where
Brazil struggled in vain to protect its currency, the real. In the midst of
the turmoil, a single US hedge fund, with a number of bad currency
investments, almost caused a global financial meltdown.
Global financial uncertainty led to concerns that the pace of US economic
growth would slow. With inflation remaining benign, the Federal Reserve
Board lowered the federal-funds rate three times, reducing this key rate
from 5.50% to 4.75%. The Fed's unexpected action in October underscored
the potential threat to the US economy of the overseas financial problems.
While this action has been positive for
stock and bond markets in the US, it has had a negative impact on Seligman
Cash Management Fund's yield. US Treasury bills were trading at a 4.46%
yield on December 31, 1998. The 30-day effective yield for Seligman Cash
Management Fund's Class A shares was 3.79% on December 31, 1998 -- down
significantly from the Fund's 4.76% yield on June 30, 1998.
Q. What was your investment strategy?
A. With the extreme volatility in the stock market, we saw significant swings
in cash flows into and out of the Fund during 1998. This kept us in the
short end of the market. Quality and liquidity are our main focus with
Seligman Cash Management Fund. The Fund is comprised of US Treasury
securities and overnight investments selected from a narrow list of lending
institutions approved by the Fund's Board of Directors.
Q. What is your outlook?
A. Moderate unemployment, ongoing consumer strength, and weak commodity prices
all bode well for the US economy. Although the Fed decided to hold rates
steady at its first meeting in 1999, continued global financial turmoil
could prompt the Fed to take further action. Any interest rate cuts by the
Fed will adversely affect the yield on Seligman Cash Management Fund.
[PHOTO]
Taxable Fixed Income Team: (standing, from left) Deborah Joseph (Administrative
Assistant), Nicholas Walsh, Brian Turner, (seated) Susan Egan, Gary S. Zeltzer
(Portfolio Manager)
A Team Approach
Seligman Cash Management Fund is managed by the Seligman Taxable Fixed Income
Team, headed by Gary S. Zeltzer. Mr. Zeltzer is assisted by seasoned research
professionals who are responsible for identifying quality money market
instruments in order to preserve investors' capital and to maximize liquidity
and current income.
2
<PAGE>
Investment Results
December 31, 1998
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS D
------------ ----------- -----------
<S> <C> <C> <C>
Net Assets......................................... $273,427,211 $24,188,992 $52,242,902
Net Asset Value per Share.......................... $1.00 $1.00 $1.00
Number of Shareholders............................. 10,515 1,391 1,589
Dividends*......................................... $0.045 $0.035 $0.035
Annualized Net Yield per Share*.................... 4.49% 3.50% 3.50%
Annualized Effective Yield per Share With
Dividends Invested Monthly*...................... 4.59% 3.56% 3.56%
<FN>
- -----------------
* For the year ended December 31, 1998.
Investment in the Fund is neither insured nor guaranteed by the US government,
and there is no assurance that the Fund will be able to maintain a stable net
asset value of $1.00 per share.
</FN>
</TABLE>
3
<PAGE>
Portfolio of Investments
December 31, 1998
<TABLE>
<CAPTION>
ANNUALIZED
YIELD ON PRINCIPAL
PURCHASE DATE AMOUNT VALUE
------------- ------------ -------------
<S> <C> <C> <C>
US GOVERNMENT SECURITIES 78.6%
US Treasury Bills, 1/21/1999...................................... 4.63% $75,000,000 $ 74,811,459
US Treasury Bills, 2/11/1999...................................... 4.38 50,000,000 49,755,139
US Treasury Notes:
5%, 2/15/1999.................................................. 4.59 50,000,000 50,020,900
5-1/2%, 2/28/1999 ............................................. 4.41 50,000,000 50,083,295
6-1/4%, 3/31/1999 ............................................. 4.49 50,000,000 50,205,433
------------
TOTAL US GOVERNMENT SECURITIES (Cost $274,876,226) .............. 274,876,226
------------
FIXED TIME DEPOSITS 16.0%
Bank of Nova Scotia, Grand Cayman, 4-3/4%, 1/4/1999 .............. 4.82 10,000,000 10,000,000
Canadian Imperial Bank of Commerce,
Grand Cayman, 4-1/4%, 1/4/1999 ................................ 4.31 5,900,000 5,900,000
Credit Communal de Belgique, Grand Cayman, 4-5/8%, 1/4/1999 ...... 4.69 10,000,000 10,000,000
First National Bank of Chicago, Grand Cayman, 4-7/8%, 1/4/1999.... 4.94 10,000,000 10,000,000
National Westminster Bank, Nassau, 4-1/2%, 1/4/1999............... 4.56 10,000,000 10,000,000
UBS, Grand Cayman, 4%, 1/4/1999 .................................. 4.06 10,000,000 10,000,000
------------
TOTAL FIXED TIME DEPOSITS (Cost $55,900,000) ..................... 55,900,000
------------
REPURCHASE AGREEMENT (Cost $36,000,000) 10.3%
State Street Bank and Trust 4.45%, dated 12/31/1998,
maturing 1/4/1999 collateralized by:
$31,450,000 US Treasury Notes 7-7/8%, 11/15/2004,
with a fair market value of $36,723,006........................ 4.51 36,000,000 36,000,000
------------
TOTAL INVESTMENTS (Cost $366,776,226) 104.9% ..................... 366,776,226
OTHER ASSETS LESS LIABILITIES (4.9)% ............................ (16,917,121)
------------
NET ASSETS 100.0% ............................................... $349,859,105
============
</TABLE>
- ------------------
See notes to financial statements.
4
<PAGE>
Statement of Assets and Liabilities
December 31, 1998
<TABLE>
<S> <C> <C>
ASSETS:
Investments, at value:
US Government securities (Cost $274,876,226)............... $274,876,226
Fixed time deposits (Cost $55,900,000) .................... 55,900,000
Repurchase agreement (Cost $36,000,000).................... 36,000,000
------------ $366,776,226
Cash................................................................................. 561,540
Receivable for Capital Stock sold ................................................... 15,235,048
Interest receivable ................................................................. 2,688,572
Investment in, and expenses prepaid to, shareholder service agent ................... 67,772
Other ............................................................................... 112,475
------------
Total Assets ........................................................................ 385,441,633
------------
LIABILITIES:
Payable for Capital Stock redeemed .................................................. 35,046,878
Accrued expenses, taxes, and other .................................................. 535,650
------------
Total Liabilities ................................................................... 35,582,528
------------
Net Assets .......................................................................... $349,859,105
============
COMPOSITION OF NET ASSETS:
Capital Stock, at par ($0.01 par value; 1,400,000,000 shares authorized;
349,886,697 shares outstanding):
Class A .......................................................................... $2,734,491
Class B .......................................................................... 241,900
Class D .......................................................................... 522,476
Additional paid-in capital .......................................................... 346,387,730
Accumulated net realized loss ....................................................... (27,492)
------------
NET ASSETS:
Applicable to 273,449,098 Class A shares, 24,190,036 Class B shares, and
52,247,563 Class D shares, equivalent to $1.00 per share ......................... $349,859,105
============
</TABLE>
- ------------------
See notes to financial statements.
5
<PAGE>
Statement of Operations
For the Year Ended December 31, 1998
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest ............................................................................ $16,250,025
EXPENSES:
Management fee ............................................... $1,237,103
Distribution and service fees ................................ 647,692
Shareholder account services ................................. 570,675
Registration ................................................. 202,448
Custody and related services ................................. 96,000
Auditing and legal fees ...................................... 44,428
Shareholder reports and communications ....................... 26,454
Directors' fees and expenses ................................. 9,871
Miscellaneous ................................................ 13,835
-----------
Total Expenses ...................................................................... 2,848,506
-----------
Net Investment Income ............................................................... 13,401,519
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net Realized Loss on Investments .................................................... (22,865)
-----------
Increase in Net Assets from Operations .............................................. $13,378,654
===========
</TABLE>
- ------------------
See notes to financial statements.
6
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
--------------------------------------
1998 1997
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income................................................... $ 13,401,519 $ 10,731,480
Net realized loss on investments ....................................... (22,865) --
--------------- --------------
Increase in Net Assets from Operations ................................. 13,378,654 10,731,480
--------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ................................................................ (11,137,647) (9,504,798)
Class B ................................................................ (649,323) (287,754)
Class D ................................................................ (1,614,549) (938,928)
--------------- --------------
Decrease in Net Assets from Distributions .............................. (13,401,519) (10,731,480)
--------------- --------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares:
Class A ............................................................. 460,655,703 369,012,050
Class B ............................................................. 10,830,398 6,725,313
Class D ............................................................. 32,694,485 26,841,455
Investment of dividends:
Class A ............................................................. 9,076,847 8,286,168
Class B ............................................................. 538,909 234,246
Class D ............................................................. 1,233,133 641,267
Exchanged from associated Funds:
Class A ............................................................. 4,153,086,377 1,337,682,789
Class B ............................................................. 96,955,102 49,941,825
Class D ............................................................. 1,845,865,431 533,443,570
--------------- --------------
Total .................................................................. 6,610,936,385 2,332,808,683
--------------- --------------
Cost of shares redeemed:
Class A ............................................................. (525,764,601) (390,596,218)
Class B ............................................................. (7,423,097) (2,106,850)
Class D ............................................................. (32,427,324) (18,366,686)
--------------- --------------
Exchanged into associated Funds:
Class A ............................................................. (4,030,213,963) (1,326,730,395)
Class B ............................................................. (87,569,652) (46,429,595)
Class D ............................................................. (1,819,227,927) (540,758,955)
--------------- --------------
Total .................................................................. (6,502,626,564) (2,324,988,699)
--------------- --------------
Increase in Net Assets from Capital Share Transactions ................. 108,309,821 7,819,984
--------------- --------------
Increase in Net Assets ................................................. 108,286,956 7,819,984
NET ASSETS:
Beginning of year ...................................................... 241,572,149 233,752,165
--------------- --------------
End of Year ............................................................ $ 349,859,105 $ 241,572,149
--------------- --------------
--------------- --------------
<FN>
- ----------------
See notes to financial statements.
</FN>
</TABLE>
7
<PAGE>
Notes to Financial Statements
1. Multiple Classes of Shares -- Seligman CashManagement Fund, Inc. (the "Fund")
offers three classes of shares: Class A shares, Class B shares, and Class D
shares, each of which may be acquired by investors at net asset value. Class A
shares acquired by an exchange from another Seligman investment company
originally purchased in an amount of $1,000,000 or more without an initial sales
charge are subject to a contingent deferred sales charge ("CDSC") of 1% if
redeemed within 18 months of original purchase. Class B shares are subject to a
distribution fee of 0.75%, a service fee of up to 0.25% on an annual basis, and
a CDSC, if applicable, of 5% on redemptions in the first year of purchase,
declining to 1% in the sixth year and 0% thereafter. Class B shares will auto-
matically convert to Class A shares on the last day of the month that precedes
the eighth anniversary of their date of purchase. Class D shares are subject to
a distribution fee of up to 0.75% and a service fee of up to 0.25% on an annual
basis, and a CDSC, if applicable, of 1% imposed on redemptions made within one
year of purchase. The three classes of shares represent interests in the same
portfolio of investments, have the same rights, and are generally identical in
all respects except that each class bears its separate distribution and certain
other class expenses, and has exclusive voting rights with respect to any matter
on which a separate vote of any class is required.
2. Significant Accounting Policies -- The financial statements have been
prepared in conformity with generally accepted accounting principles which
require management to make certain estimates and assumptions at the date of the
financial statements. The following summarizes the significant accounting
policies of the Fund:
a. Security Valuation -- The Fund uses the amortized cost method for valuing
its short-term securities. Under this method all investments purchased at
a discount or premium are valued by amortizing the difference between the
original purchase price and the maturity value of the issue over the period
to maturity. Investments of certain other funds in the Seligman Group of
Investment Companies purchased to offset the Fund's liability for deferred
directors' fees are valued at current market values.
b. Federal Taxes -- There is no provision for federal income tax. The Fund has
elected to be taxed as a regulated investment company and intends to
distribute substantially all taxable net income and net gain realized.
c. Security Transactions and Related Investment Income -- Investment
transactions are recorded on trade dates. Identified cost of investments
sold is used for both financial statement and federal income tax purposes.
The cost of investments for federal income tax purposes is substantially the
same as the cost for financial reporting purposes. Interest income,
including the amortization of discount or premium, is recorded as earned.
Dividends are declared daily and paid monthly.
d. Repurchase Agreements -- The Fund may enter into repurchase agreements with
commercial banks and with broker/dealers deemed to be creditworthy by J.& W.
Seligman & Co. Incorporated (the "Manager"). Securities received as
collateral subject to repurchase agreements are deposited with the Fund's
custodian and, pursuant to the terms of the repurchase agreements, must
have an aggregate market value greater than or equal to the repurchase price
plus accrued interest at all times. Procedures have been established to
monitor, on a daily basis, the market value of repurchase agreements'
underlying securities to ensure the existence of the proper level of
collateral.
e. Multiple Class Allocations -- All income, expenses (other than
class-specific expenses), and realized and unrealized gains or losses, if
any, are allocated daily to each class of shares based upon the relative
value of shares of each class. Class-specific expenses, which include
distribution and service fees and any other items that are specifically
attributable to a particular class, are
8
<PAGE>
Notes to Financial Statements
charged directly to such class. For the year ended December 31, 1998,
distribution and service fees were the only class-specific expenses.
3. Management Fee, Distribution Services, and Other Transactions -- The Manager
manages the affairs of the Fund and provides the necessary personnel and
facilities. Compensation of all officers of the Fund, all directors of the
Fund who are employees or consultants of the Manager, and all personnel of the
Fund and the Manager is paid by the Manager. The Manager receives a fee,
calculated daily and paid monthly, equal to a per annum percentage of the Fund's
average daily net assets.
The management fee rate is calculated on a sliding scale of 0.45% to 0.375%
based on average daily net assets of all the investment companies managed by the
Manager. The management fee for the year ended December 31, 1998, was equivalent
to an annual rate of 0.40% of the Fund's average daily net assets.
The Fund has an Administration, Shareholder Services and Distribution
Plan (the "Plan") with respect to distribution of its shares. Under the Plan,
with respect to Class A shares, service organizations can enter into agreements
with Seligman Advisors, Inc. (the "Distributor") (formerly Seligman Financial
Services, Inc.) and receive a continuing fee of up to 0.25% on an annual basis
of the average daily net assets of Class A shares, attributable to the
particular service organizations for providing personal services and/or the
maintenance of shareholder accounts. The Distributor, and likewise the Fund, did
not make payments under the Plan with respect to Class A shares during the year
ended December 31, 1998.
Under the Plan, with respect to Class B and Class D shares, service
organizations can enter into agreements with the Distributor and receive a
continuing fee for providing personal services and/or the maintenance of share
holder accounts of up to 0.25% on an annual basis of the average daily net
assets of the Class B and Class D shares for which the organizations are
responsible; and, for Class D shares only, fees for providing other distribution
assistance of up to 0.75% on an annual basis of such average daily net assets.
Such fees are paid monthly by the Fund to the Distributor pursuant to the Plan.
With respect to Class B shares, a distribution fee of 0.75% on an annual
basis of average daily net assets is payable monthly by the Fund to the
Distributor; however, the Distributor has sold its rights to this fee to a third
party (the "Purchaser"), which provides funding to the Distributor to enable it
to pay commissions to dealers at the time of the sale of the related Class B
shares.
For the year ended December 31, 1998, fees incurred under the Plan,
equivalent to 1% per annum of the average daily net assets of Class B and Class
D shares, amounted to $185,783 and $461,909, respectively.
The Distributor is entitled to retain any CDSC imposed on redemptions of
Class D shares occurring within one year of purchase and on certain redemptions
of Class A shares occurring within 18 months of purchase. For the year ended
December 31, 1998, such charges amounted to $193,060.
The Distributor has sold its rights to collect any CDSC imposed on
redemptions of Class B shares to the Purchaser. In connection with the sale of
its rights to collect any CDSC and the distribution fees with respect to Class B
shares described above, the Distributor receives payments from the Purchaser
based on the value of Class B shares sold. The aggregate amount of such payments
retained by the Distributor for the year ended December 31, 1998, amounted to
$15,878.
Seligman Services, Inc., an affiliate of the Manager, is eligible to receive
commissions from certain sales of shares of the Fund, as well as distribution
and service fees pursuant to the Plan. For the year ended December 31, 1998,
Seligman Services, Inc. received commissions of $9,574 from the sale of shares
of the Fund. Seligman
9
<PAGE>
Notes to Financial Statements
Services, Inc. also received distribution and service fees
of $13,257, pursuant to the Plan.
Seligman Data Corp., owned by the Fund and certain associated investment
companies, charged the Fund at cost $536,675 for share holder account services.
The Fund's investment in Seligman Data Corp. is recorded at a cost of $3,719.
Certain officers and directors of the Fund are officers or directors of the
Manager, the Distributor, Seligman Services, Inc., and/or Seligman Data Corp.
The Fund has a compensation arrangement under which directors who receive
fees may elect to defer receiving such fees. Directors may elect to have their
deferred fees accrue interest or earn a return based on the performance of the
Fund or other funds in the Seligman Group of Investment Companies. The cost of
such fees and earnings accrued thereon is included in directors' fees and
expenses, and the accumulated balance thereof at December 31, 1998, of $141,077
is included in other liabilities. Deferred fees and related accrued earnings are
not deductible for federal income tax purposes until such amounts are paid.
4. Loss Carryforward -- At December 31, 1998, the Fund had a net loss
carryforward for federal income tax purposes of $10,413, which is available for
offset against future taxable net gains, expiring in various amounts through
2006.
10
<PAGE>
Financial Highlights
The tables below are intended to help you understand each Class's financial
performance for the past five years or from its inception if less than five
years. Certain information reflects financial results for a single share of a
Class that was held throughout the periods shown. Per share amounts are
calculated using average shares out standing. "Total return" shows the rate that
you would have earned (or lost) on an investment in each Class, assuming you
reinvested all your dividends. Total returns do not reflect any sales charges
and are not annualized for periods of less than one year.
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------
YEAR ENDED DECEMBER 31,
-----------------------------------------------------
1998 1997 1996 1995 1994
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net Asset Value, Beginning of Year........................ $1.000 $1.000 $1.000 $1.000 $1.000
------ ------ ------ ------ ------
Income from Investment Operations:
Net investment income..................................... 0.045 0.047 0.046 0.051 0.034
------ ------ ------ ------ ------
Total from Investment Operations.......................... 0.045 0.047 0.046 0.051 0.034
------ ------ ------ ------ ------
Less Distributions:
Dividends from net investment income...................... (0.045) (0.047) (0.046) (0.051) (0.034)
------ ------ ------ ------ ------
Total Distributions....................................... (0.045) (0.047) (0.046) (0.051) (0.034)
------ ------ ------ ------ ------
Net Asset Value, End of Year.............................. $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ======
TOTAL RETURN: 4.59% 4.80% 4.71% 5.18% 3.46%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000s omitted).................... $273,427 $206,604 $208,950 $177,395 $194,406
Ratio of expenses to average net assets................... 0.71% 0.78% 0.79% 0.86% 0.82%
Ratio of net income to average net assets................. 4.50% 4.70% 4.61% 5.06% 3.41%
<FN>
- ------------------
See footnotes on page 12.
</FN>
</TABLE>
11
<PAGE>
Financial Highlights (continued)
<TABLE>
<CAPTION>
CLASS B CLASS D
------------------------- ------------------------------------------
YEAR ENDED
DECEMBER 31, 4/22/96* YEAR ENDED DECEMBER 31,
--------------- TO ------------------------------------------
1998 1997 12/31/96 1998 1997 1996 1995 1994
------ ------ -------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net Asset Value, Beginning of Period............ $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
------ ------ ------ ------ ------ ------ ------ ------
Income from Investment Operations:
Net investment income........................... 0.035 0.037 0.025 0.035 0.037 0.036 0.040 0.024
------ ------ ------ ------ ------ ------ ------ ------
Total from Investment Operations................ 0.035 0.037 0.025 0.035 0.037 0.036 0.040 0.024
------ ------ ------ ------ ------ ------ ------ ------
Less Distributions:
Dividends from net investment income............ (0.035) (0.037) (0.025) (0.035) (0.037) (0.036) (0.040) (0.024)
------ ------ ------ ------ ------ ------ ------ ------
Total Distributions............................. (0.035) (0.037) (0.025) (0.035) (0.037) (0.036) (0.040) (0.024)
------ ------ ------ ------ ------ ------ ------ ------
Net Asset Value, End of Period.................. $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ====== ====== ====== ======
TOTAL RETURN: 3.56% 3.77% 2.44% 3.56% 3.77% 3.67% 4.08% 2.35%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted)........ $24,189 $10,858 $2,493 $52,243 $24,110 $22,309 $14,554 $3,458
Ratio of expenses to average net assets......... 1.71% 1.78% 1.78%+ 1.71% 1.78% 1.79% 1.90% 1.90%
Ratio of net income to average net assets....... 3.50% 3.70% 3.58%+ 3.50% 3.70% 3.61% 4.02% 2.32%
Without reimbursement of expenses:**
Ratio of expenses to average net assets....... 3.23%
Ratio of net income to average net assets..... 0.99%
<FN>
- ------------------
* Commencement of offering of shares.
** The Manager, at its discretion, reimbursed certain expenses for Class D shares in 1994.
+ Annualized.
See notes to financial statements.
</FN>
</TABLE>
12
<PAGE>
Report of Independent Auditors
The Board of Directors and Shareholders,
Seligman Cash Management Fund, Inc.:
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Seligman Cash Management Fund, Inc. as of
December 31, 1998, the related statements of operations for the year then ended
and of changes in net assets for each of the years in the two-year period then
ended, and the financial highlights for each of the periods presented. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1998, by correspondence with the Fund's custodian. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Seligman Cash
Management Fund, Inc. as of December 31, 1998, the results of its operations,
the changes in its net assets, and the financial highlights for the respective
stated periods in conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
New York, New York
January 29, 1999
13
<PAGE>
Board of Directors
John R. Galvin 2, 4
Dean, Fletcher School of Law and Diplomacy
at Tufts University
Director, Raytheon Company
Alice S. Ilchman 3, 4
Trustee, Committee for Economic Development
Chairman, The Rockefeller Foundation
Frank A. McPherson 2, 4
Director, Kimberly-Clark Corporation
Director, Baptist Medical Center
John E. Merow 2, 4
Retired Chairman and Senior Partner,
Sullivan & Cromwell, Law Firm
Director, Commonwealth Industries, Inc.
Director, New York Presbyterian Hospital
Betsy S. Michel 2, 4
Trustee, The Geraldine R. Dodge Foundation
Chairman of the Board of Trustees, St. George's School
William C. Morris 1
Chairman
Chairman of the Board,
J. & W. Seligman & Co. Incorporated
Chairman, Carbo Ceramics Inc.
Director, Kerr-McGee Corporation
James C. Pitney 3, 4
Retired Partner, Pitney, Hardin, Kipp & Szuch,
Law Firm
James Q. Riordan 3, 4
Director, KeySpan Energy Corporation
Trustee, Committee for Economic Development
Director, Public Broadcasting Service
Robert L. Shafer 3, 4
Retired Vice President, Pfizer Inc.
James N. Whitson 2, 4
Director and Consultant, Sammons Enterprises, Inc.
Director, C-SPAN
Director, CommScope, Inc.
Brian T. Zino 1
President
President, J. & W. Seligman & Co. Incorporated
Chairman, Seligman Data Corp.
Director, ICI Mutual Insurance Company
Director Emeritus
Fred E. Brown
Director and Consultant,
J. & W. Seligman & Co. Incorporated
- ----------------
Member: 1 Executive Committee
2 Audit Committee
3 Director Nominating Committee
4 Board Operations Committee
14
<PAGE>
EXECUTIVE OFFICERS
William C. Morris
Chairman
Brian T. Zino
President
Lawrence P. Vogel
Vice President
Gary S. Zeltzer
Vice President
Thomas G. Rose
Treasurer
Frank J. Nasta
Secretary
FOR MORE INFORMATION
Manager
J. & W. Seligman & Co.
Incorporated
100 Park Avenue
New York, NY 10017
General Counsel
Sullivan & Cromwell
Independent Auditors
Deloitte & Touche LLP
General Distributor
Seligman Advisors, Inc.
100 Park Avenue
New York, NY 10017
Shareholder Service Agent
Seligman Data Corp.
100 Park Avenue
New York, NY 10017
Important Telephone Numbers
(800) 221-2450 Shareholder
Services
(800) 445-1777 Retirement Plan
Services
(212) 682-7600 Outside the
United States
(800) 622-4597 24-Hour
Automated
Telephone
Access Service
15
