- - -------------------------------------------------------------------------------
Seligman
Common Stock
Fund, Inc.
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- - -------------------------------------------------------------------------------
A Growth and
Income Fund
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- - -------------------------------------------------------------------------------
65th Annual Report
1994
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[Logo]
SELIGMAN FINANCIAL SERVICES, INC.
an affiliate of
[Logo]
J. & W. SELIGMAN & CO.
INCORPORATED
ESTABLISHED 1864
100 Park Avenue, New York, NY 10017
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 Common Stock Fund, Inc., which contains information about the sales
charges, management fee, and other costs. Please read the prospectus carefully
before investing or sending money.
EQCS2 12/94
<PAGE>
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Seligman Common Stock Fund
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A mutual fund that seeks to produce favorable current income and long-term
growth of both income and capital value without exposing capital to undue risk.
Highlights of 1994
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<TABLE>
<CAPTION>
December 31, 1994 December 31, 1993
--------------------- -----------------------
Class A Class D Class A Class D
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net Assets (in thousands).............................. $510,956 $14,416 $553,222 $5,667
-------- ------- -------- ------
Net Asset Value per Share.............................. $12.12 $12.07 $13.47 $13.46
With December 1994 Gain Distribution
Taken in Shares.................................... 12.85 12.79 -- --
Decrease in Net Asset Value with Gain
Distribution Taken in Shares(1).................... (4.63)% (4.94)% -- --
-- ----- ----- ----- -----
Dividends Paid per Share............................... $0.37 $0.23 $0.38 $0.21
With December 1993 Gain Distribution
Taken in Shares................................... 0.39 0.24 -- --
Distribution of Realized Gain per Share................ 0.72 0.72 0.82 0.82
---- ---- ---- ----
Total Expenses per Dollar of
Average Net Assets................................... $0.0085 $0.0196 $0.0087 $0.0202+
------- ------- ------- -------
</TABLE>
(1) Excluding effect of dividends paid.
+ Annualized.
1
<PAGE>
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To the Shareholders
- - -------------------------------------------------------------------------------
We are pleased to report Seligman Common Stock Fund's long-term investment
results, portfolio holdings, and audited financial statements at December 31,
1994.
For your Fund's Class A shares, net asset value per share was $12.12 at
December 31, compared to $13.14 at September 30, and $13.47 a year ago. For your
Fund's Class D shares, net asset value per share was $12.07 at December 31,
compared to $13.11 at September 30, and $13.46 a year ago. For both Class A and
D shares, the change in the net asset values is partly caused by the deduction
of the $0.72 per share capital gain payment made on December 20 to Shareholders
of record December 13.
On December 20, your Fund paid a fourth quarter dividend to shareholders of
record December 13. Class A shareholders were paid $0.10 per share, bringing the
total dividends for the year to $0.37 per share. Class D shareholders were paid
$0.08 per share, bringing the total dividends for the year to $0.23 per share.
For your Fund's Class A shares, total return was -1.47% for the three
months and -1.89% for the 12 months ended December 31. For your Fund's Class D
shares, total return was -1.79% and -3.24%, respectively, for the same periods.
This compares to the Standard & Poor's 500 Composite Stock Price Index's total
return of -0.02% for the three months and 1.32% for the 12 months ended December
31. (Total return reflects change in net asset value and assumes any
distributions paid within the period are reinvested in additional shares. Class
A returns do not, however, reflect the effect of the maximum initial sales
charge of 4.75%, and Class D returns do not reflect the effect of the 1%
contingent deferred sales load.)
While your Fund's performance was less favorable in 1994, its longer-term
performance remains strong. Please refer to page 3 for a discussion with your
Portfolio Managers about your Fund's performance in 1994, followed by the chart
and table that analyze longer-term performance.
Looking back on 1994, the one generalization that can be made with
confidence is that it was a turbulent and trying year for equity and bond
investors alike. The Federal Reserve Board exhibited an aggressive stance
against inflation, putting through six short-term interest rate increases by the
end of the year. This caused an upheaval in the bond market, with yields
increasing and bond prices spiraling lower--an event in the financial markets
unmatched in magnitude since 1973-74. The equity market remained hostage to the
bond market and demonstrated lackluster performance for the year.
The U.S. economy continued to grow at a mod-est yet controlled pace,
accompanied by corporate news of solid growth and strong earnings. This economic
news, although positive, caused the underlying question to remain: Will the
economy overheat, opening the door to increased inflation? We don't believe so.
We believe an economic slowdown is close at hand. In March of 1995, the
current growth cycle will mark its fourth year. The consumer has both increased
debt as a percentage of income and drawn down savings--suggesting nearer-term
caution after a stronger-than-expected pattern of spending in 1994. We also
believe that inflation will remain under control in light of intense global
competition, low unit labor costs, and an aging population that should favor
saving over spending. Job creation remains robust despite gains in productivity,
and U.S. competitiveness in world markets is likely to be enhanced under
G.A.T.T.--General Agreement on Tariffs and Trade.
For more information about Seligman Common Stock Fund, or your investment
in its shares, please write or call the toll-free telephone numbers listed on
page 19.
By order of the Board of Directors,
/s/ William C. Morris
William C. Morris
Chairman
/s/ Ronald T. Schroeder
Ronald T. Schroeder
President
February 3, 1995
2
<PAGE>
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Annual Performance Overview
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The following are biographies of your Portfolio Managers, a discussion with them
regarding Seligman Common Stock Fund, and a comparison chart of your Fund's
performance against the Standard & Poor's 500 Composite Stock Price Index and
the Lipper Growth & Income Fund Average.
Your Portfolio Managers
[photograph]
Charles C. Smith, Jr. is a Managing Director of J. & W. Seligman & Co.
Incorporated and Portfolio Manager of Seligman Common Stock Fund and Seligman
Income Fund. Mr. Smith joined Seligman in 1985 as Vice President, Investment
Officer. He was promoted to Senior Vice President, Senior Investment Officer in
August 1992, and to Managing Director in January 1994. Stacey G. Navin, Vice
President of J. & W. Seligman & Co. Incorporated, serves as Co-Portfolio Manager
of Seligman Common Stock Fund and Seligman Income Fund. She spent 1994 with
Seligman Henderson Co. in London and will continue to do so in 1995 to
specifically focus on the international investments in the portfolio. Mr. Smith
is supported by a group of investment professionals dedicated to the growth and
income investment discipline, and to the objectives of Seligman Common Stock
Fund.
Iain C. Clark, Chief Investment Officer of Seligman Henderson Co., is
responsible for the investment activities of Seligman Common Stock Fund's
Subadviser, Seligman Henderson Co. Mr. Clark is also head of International
Investments for, and a Director of, Henderson Administration Group plc, an
investment manager in London, England. He has been with Henderson since 1985.
Economic Factors Affecting Seligman Common Stock Fund
"The rise in short-term interest rates and investors' concerns over an increased
rate of future inflation had a tremendous effect on both the equity and bond
markets in the U.S. Higher U.S. interest rates also negatively affected most
stock markets around the world. However, at the same time, the U.S. Dollar
weakened against many main currencies, particularly in Europe and Japan, thus
mitigating some of the stock markets' falls. Overall, though, these conditions
made 1994 a challenging year for investors."
Your Manager's Investment Strategy
"While many investors focused on issues with attractive short-term momentum,
such as cyclical and technology issues, your Fund continued to maintain a
broadly diversified portfolio of quality companies with strong long-term
prospects for earnings growth. We believe our strategy of holding a well-rounded
list of companies in many industry groups should continue to benefit the
portfolio in the years ahead. In the international portion of the portfolio we
significantly increased the diversification, both by country and by the number
of holdings. In the third quarter, the largest portion of the investments were
in Mexico and Hong Kong. Later in the year, however, the weightings were
significantly reduced and investments were made in Continental Europe and in a
broader range of countries in the Pacific."
(continued)
3
<PAGE>
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Annual Performance Overview (continued)
- - -------------------------------------------------------------------------------
Individual Sector Performance
"While cyclical issues such as chemical and technology companies did
particularly well, the Fund's best performing stocks were the restructuring
companies such as IBM and U.S. Shoe. Conversely, both financial stocks, in
particular bank issues, and convertible securities had a difficult time in 1994
due to their inherent sensitivity to interest rate changes.
"Internationally, there was no particular `sector theme,' as the investments
covered a broad range of issues. The Fund was able to take advantage of a number
of attractively priced new issues such as Tele Danmark, Autoliv, Liberty Life,
and Indosat, all of which present opportunities for strong long-term
investments."
Looking Ahead
"With the prospect of slowing economic growth in 1995, stock selection will
continue to be central to good near-term performance. Within the international
portion of the portfolio, we may increase the Fund's low weighting in Japan as
the economic activity picks up following the Kobe earthquake. Overall, we
believe that economic growth should continue to improve, with inflation rising
only slightly, which should provide a positive backdrop for equity markets
around the world. In 1995, we will continue to focus on identifying companies
with strong long-term earnings and growth potential as a means of achieving good
capital appreciation and dividend growth."
4
<PAGE>
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Ten-Year Performance Comparison Chart and Table December 31, 1994
- - -------------------------------------------------------------------------------
This chart compares a $10,000 hypothetical investment made in Seligman Common
Stock Fund Class A shares, with and without the maximum initial sales charge of
4.75%, for the 10-year period ended December 31, 1994, to a $10,000 hypothetical
investment made in the Standard & Poor's 500 Composite Stock Price Index (S&P
500) and the Lipper Growth & Income Fund Average (Lipper Growth & Income) for
the same period. The performance of Seligman Common Stock Fund Class D shares is
not shown in this chart, but is included in the table below. It is important to
keep in mind that the S&P 500 excludes the effect of any fees or sales charges,
and the Lipper Growth & Income excludes the effects of any sales charges.
[Ten-Year Performance Comparison Chart represented in tabular format below]
Seligman Seligman
Common Common
Stock Stock Lipper
Fund Fund Growth S&P
with without & Income Stock
FYE sales load sales load Index Index
- - ---- ---------- ---------- ---------- ----------
12/31/84 ........ $ 9,522.00 $10,000.00 $10,000.00 $10,000.00
12/31/85 ........ 12,480.00 13,106.00 12,796.30 13,172.68
12/31/86 ........ 15,231.00 15,996.00 14,881.31 15,631.38
12/31/87 ........ 15,263.00 16,029.00 15,214.44 16,452.12
12/31/88 ........ 16,801.00 17,645.00 17,620.05 19,184.55
12/31/89 ........ 21,299.00 22,369.00 21,780.54 25,263.38
12/31/90 ........ 20,471.00 21,499.00 20,823.11 24,479.16
12/31/91 ........ 26,598.00 27,934.00 26,887.67 31,936.92
12/31/92 ........ 29,487.00 30,968.00 29,254.05 34,370.32
12/31/93 ........ 33,867.00 35,568.00 32,623.56 37,834.40
12/31/94 ........ 33,228.00 34,896.00 32,313.84 38,333.98
The table below shows the average annual total returns for the one-year,
five-year, and 10-year periods through December 31, 1994, for the Seligman
Common Stock Fund Class A shares, with and without the maximum initial sales
charge of 4.75%, the S&P 500, and the Lipper Growth & Income. Also included in
the table are the average annual total returns for the one-year and
since-inception periods through December 31, 1994, for the Seligman Common Stock
Fund Class D shares, with and without the effect of the 1% contingent deferred
sales load ("CDSL") imposed on shares redeemed within one year of purchase, the
S&P 500, and the Lipper Growth & Income.
AVERAGE ANNUAL TOTAL RETURNS
One Five Ten
Year Years Years
-------- -------- ---------
Seligman Common Stock Fund
Class A with sales charge (6.54)% 8.24% 12.76%
Class A without sales charge (1.89) 9.30 13.31
S&P 500 1.32 8.70 14.34
Lipper Growth & Income (0.95) 8.21 12.44
Since
One Inception
Year 5/3/93
---- ---------
Seligman Common Stock Fund
Class D with CDSL (4.14)% N/A
Class D without CDSL (3.24) 3.30%
S&P 500 1.32 5.59
Lipper Growth & Income (0.95) 3.99
No adjustment was made to performance for periods prior to January 1, 1993, the
commencement date for the annual Administration, Shareholder Services and
Distribution Plan fee of up to 0.25% of average daily net assets of Class A
shares. THE PERFORMANCE OF CLASS D SHARES WILL BE GREATER THAN OR LESS THAN THE
PERFORMANCE SHOWN FOR CLASS A SHARES, BASED ON THE DIFFERENCES IN SALES CHARGES
AND FEES PAID BY SHAREHOLDERS. Performance data quoted represent changes in
prices and assume that all distributions within the period are invested in
additional shares. The investment return and principal value of an investment
will fluctuate so that shares, if redeemed, may be worth more or less than their
original cost. Past performance is not indicative of future investment results.
5
<PAGE>
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Seligman Common Stock Fund
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Diversification of Assets December 31, 1994
<TABLE>
<CAPTION>
Percent Percent of
of Net Net Assets
Issues Cost Value Assets Dec. 31, 1993
----- ------------ ------------ ------- -------------
<S> <C> <C> <C> <C> <C>
Net Cash and Short-Term Holdings ........... 2 $ 11,221,586 $ 11,221,586 2.1 3.6
--- ------------ ------------ ----- -----
Convertible Bonds .......................... 19 42,291,745 42,725,008 8.1 9.5
--- ------------ ------------ ----- -----
Convertible Preferred Stocks ............... 9 25,469,423 26,611,250 5.1 6.9
--- ------------ ------------ ----- -----
Common Stocks:
Advertising................................. 1 4,272,125 5,175,000 1.0 0.8
Apparel and Textiles........................ 1 5,512,557 5,087,500 1.0 0.6
Automotive and Related...................... 2 5,555,325 6,620,938 1.3 0.7
Chemicals................................... 8 25,775,495 35,031,394 6.7 3.2
Computers and Business Services............. 3 10,465,981 16,837,500 3.2 2.0
Construction................................ -- -- -- -- 0.2
Consumer Goods and Services................. 11 31,291,088 49,280,009 9.4 11.6
Drugs and Health Care....................... 4 13,657,694 17,771,875 3.4 3.8
Electric and Gas Utilities.................. 4 12,884,265 12,348,626 2.4 4.6
Electronics................................. 1 1,459,838 5,787,500 1.1 2.8
Energy...................................... 8 28,714,602 39,153,064 7.5 8.9
Finance and Insurance....................... 16 56,339,755 71,622,873 13.6 10.0
Food........................................ 5 22,900,144 26,437,500 5.0 --
Household Furnishing........................ -- -- -- -- 0.9
Industrial Equipment........................ 3 9,516,645 14,593,923 2.8 1.9
Machinery................................... 1 2,605,175 4,550,000 0.8 0.7
Office Equipment............................ 1 3,099,900 4,762,500 0.9 1.3
Paper and Packaging......................... 5 15,416,739 15,819,505 3.0 0.8
Printing and Publishing..................... 2 6,766,097 6,928,893 1.3 1.1
Restaurant.................................. 1 2,935,000 2,875,000 0.5 --
Retail Trade................................ 8 29,533,775 29,449,375 5.6 4.6
Telecommunications.......................... 9 15,857,345 20,490,440 3.9 5.2
Telephone Utilities......................... -- -- -- -- 1.8
Tobacco..................................... 2 13,092,279 11,300,000 2.2 2.0
Transportation.............................. 4 11,070,859 13,716,638 2.6 2.5
Miscellaneous/Diversified................... 8 22,633,473 29,174,320 5.5 8.0
--- ------------ ------------ ----- -----
108 351,356,156 444,814,373 84.7 80.0
--- ------------ ------------ ----- -----
Net Assets ................................. 138 $430,338,910 $525,372,217 100.0 100.0
=== ============ ============ ===== =====
</TABLE>
6
<PAGE>
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LARGEST PORTFOLIO CHANGES*
During Past Three Months
Principal Amount
or Shares
------------------------
Holdings
Additions Increase 12/31/94
- - --------- -------- ----------
Common Stocks
American Home Products........ 50,000shs. 50,000shs.
Bristol-Myers Squibb.......... 75,000 75,000
Crompton & Knowles............ 200,000 200,000
Digital Equipment............. 100,000 100,000
Grace (W.R.).................. 75,000 150,000
Kimberly-Clark................ 75,000 75,000
Mallinckrodt Group............ 100,000 100,000
Mercantile Stores............. 75,000 75,000
Morgan (J.P.)................. 50,000 50,000
Wendy's International......... 200,000 200,000
Holdings
Reductions Decrease 12/31/94
- - ----------- -------- ----------
Common Stocks
Alco Standard................. 60,000shs. --
General Motors................ 75,000 --
Ogden......................... 150,000 --
Snap-On Tools................. 100,000 --
Sonat......................... 100,000 --
Teva Pharmaceutical (ADRs).... 125,000 --
TJX Companies................. 150,000 --
Unocal........................ 200,000 --
Convertible Bonds
Hechinger 5 1/2%,
4/1/2012 ................... $3,000,000 --
Oryx Energy 7 1/2%,
5/15/2014 .................. 3,000,000 --
* Largest portfolio changes from previous quarter to current quarter are based
on cost of purchases and proceeds from sales of securities.
MAJOR PORTFOLIO HOLDINGS
at December 31, 1994
Security Value
- - -------- ----------
General Electric........................ $10,200,000
Dow Chemical............................ 10,087,500
American International Group............ 9,800,000
Royal Dutch Petroleum................... 9,675,000
General Re.............................. 9,281,250
Chubb................................... 7,737,500
Coca-Cola............................... 7,725,000
ALLTEL.................................. 7,531,250
International Business Machines......... 7,350,000
Roadway Services........................ 7,078,125
FEDERAL TAX INFORMATION FOR 1994 DIVIDENDS AND GAIN DISTRIBUTION FOR TAXABLE
ACCOUNTS
A year-end statement of account showing activity for 1994 has been mailed to
each shareholder. Under "Tax Information for Calendar Year" it shows the
proceeds of any redemptions paid to the shareholder during the year and reported
to the Internal Revenue Service as required by federal regulations (Form
1099-B). In addition, a separate Form 1099-DIV showing the amounts of dividends
and the distribution from gain on investments paid during the year has been
mailed to each shareholder. For federal tax information regarding your 1994
dividend and capital gain distributions, please refer to the "Important Tax
Information" notice that accompanied your Form 1099-DIV.
7
<PAGE>
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Portfolio of Investments December 31, 1994
- - -------------------------------------------------------------------------------
Shares Value
------ -----
Common Stocks--84.7%
Advertising--1.0%
Omnicom Group
Worldwide advertising
agencies .............. 100,000 $ 5,175,000
------------
Apparel and Textiles--1.0%
Unifi
Textile processor .......... 200,000 5,087,500
------------
Automotive and Related--1.3%
Autoliv (ADRs)++***
Swedish supplier of safety
restraint systems........... 55,000 2,120,938
Echlin
Manufacturer of break-
replacement parts........... 150,000 4,500,000
------------
6,620,938
------------
Chemicals--6.7%
Air Products and Chemicals
Industrial gases and
chemicals ................... 100,000 4,462,500
Bayer AG
Producer of specialty
chemicals, pharmaceuticals,
and plastics ................ 7,600 1,761,394
Crompton & Knowles
Specialty chemicals and
industrial machinery........ 200,000 3,300,000
Dow Chemical
Diversified chemicals ...... 150,000 10,087,500
Engelhard
Specialty chemicals and
metals ..................... 75,000 1,668,750
Grace (W.R.)
Manufacturer and retailer of
specialty chemicals and
medical products............ 150,000 5,793,750
Lubrizol
Chemicals; agriculture research
and design.................. 100,000 3,387,500
Rohm & Haas
Manufacturer of specialty
chemicals and plastics ..... 80,000 4,570,000
------------
35,031,394
------------
Computers and Business Services--3.2%
Digital Equipment***
Manufacturer of data processing
equipment................... 100,000 3,325,000
First Financial Management
Financial data processing
service .................... 100,000 6,162,500
International Business Machines
Computers, office
equipment .................. 100,000 7,350,000
------------
16,837,500
------------
Consumer Goods and Services--9.4%
Allied Domecq
International food, drink,
and hospitality group..... 230,000 1,943,730
Christian Dior ABSA
Holding company for
LVMH Moet Hennessy........ 10,000 783,212
Christian Dior (Warrants)***
Holding company for
LVMH Moet Hennessy........ 10,000 84,317
Coca-Cola
Soft drinks; consumer
products ................... 150,000 7,725,000
Colgate-Palmolive
Household and personal care
products ................... 100,000 6,337,500
Eastman Kodak
Film, chemicals, and health
care products................ 100,000 4,775,000
Gillette
Personal care products ..... 50,000 3,737,500
International Flavors & Fragrances
Developer and manufacturer of
flavor and fragrance products 150,000 6,937,500
PepsiCo
Soft drinks, consumer
products ................... 150,000 5,437,500
Procter & Gamble
Household and personal care
products ................... 100,000 6,200,000
Rubbermaid
Manufacturer of plastic and
rubber household products .. 185,000 5,318,750
------------
49,280,009
------------
Drugs and Health Care--3.4%
Abbott Laboratories
Diversified health care
products.................... 150,000 4,893,750
Bristol-Myers Squibb
Health and personal care
products .................. 75,000 4,340,625
Mallinckrodt Group
Health care products and
specialty chemicals ........ 100,000 2,987,500
Schering-Plough
Pharmaceuticals, health and
personal care products...... 75,000 5,550,000
------------
17,771,875
------------
Electric and Gas Utilities--2.4%
Empresa Nacional de
Electricidad (ADRs)
Spanish electric utility ... 50,000 2,012,500
Hong Kong Electric
Regional natural gas producer
and distributor............. 1,800,000 4,919,876
Huaneng Power (ADRs)***
Flagship power company
of China ................... 60,000 885,000
PacifiCorp
Electric service ........... 250,000 4,531,250
------------
12,348,626
------------
8
<PAGE>
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Portfolio of Investments (continued) December 31, 1994
- - -------------------------------------------------------------------------------
Shares Value
------ -----
Electronics--1.1%
Motorola
Semiconductors and
communications equipment ... 100,000 $ 5,787,500
------------
Energy--7.5%
Atlantic Richfield
Integrated oil enterprise .. 50,000 5,087,500
Enron
Pipeline exploration and
production ................. 200,000 6,100,000
Mobil
International oil
enterprise ................. 75,000 6,318,750
Pennzoil
Oil company ................ 100,000 4,412,500
Royal Dutch Petroleum
International oil
enterprise ................. 90,000 9,675,000
Schlumberger
Worldwide energy services .. 100,000 5,037,500
Total SA (Class B)
International oil
enterprise ................. 25,000 1,453,064
YPF Sociedad Anonima (ADRs)
Argentinean oil and gas
company..................... 50,000 1,068,750
------------
39,153,064
------------
Finance and Insurance--13.6%
Aetna Life & Casualty
Multi-line insurance
business ................... 75,000 3,534,375
Ahmanson (H.F.)
Owner of the largest savings
institution in the U.S...... 200,000 3,225,000
American International Group
International insurance holding
company..................... 100,000 9,800,000
Banco de Santander (ADSs)
Retail banking, financial, and
financial investment
services ................... 50,000 1,915,185
Bank of New York
Commercial bank ............ 200,000 5,800,000
Chubb
Property and casualty
insurer. ................... 100,000 7,737,500
General Re
Reinsurance company ........ 75,000 9,281,250
Great Western Financial
Savings and loan in California
and Florida................. 150,000 2,400,000
Internationale Nederlanden Bank
Dutch finance company....... 43,050 2,035,813
KeyCorp
Commercial banking.......... 125,000 3,125,000
MBNA
Issuer of bank credit
cards ...................... 300,000 7,012,500
Morgan (J.P.)
Commercial and wholesale
banking, based in New York.. 50,000 2,800,000
National Australia Bank (ADRs)
Commercial banking ......... 50,000 2,025,000
NationsBank
Regional bank holding
company in the Southeast
U.S. ....................... 100,000 4,512,500
PNC Bank
Commercial bank, primarily in
Pennsylvania and the
Mid-Atlantic region......... 150,000 3,168,750
Student Loan Marketing
Association
Student loan financing
program .................... 100,000 3,250,000
------------
71,622,873
------------
Food--5.0%
Campbell Soup
Canned soup and other food
products.................... 100,000 4,412,500
ConAgra
Prepared foods and agricultural
products.................... 150,000 4,687,500
CPC International
International food
processor .................. 100,000 5,325,000
General Mills
Consumer foods and
restaurants................. 100,000 5,700,000
Sara Lee
Processed foods; consumer
products.................... 250,000 6,312,500
------------
26,437,500
------------
Industrial Equipment--2.7%
BTR
Global company that
manufactures a broad range
of industrial goods ........ 320,000 1,469,848
General Electric
Electrical equipment ....... 200,000 10,200,000
Pacific Dunlop
Diversified manufacturing
company .................... 1,100,000 2,924,075
------------
14,593,923
------------
Machinery--0.8%
Parker-Hannifin
Fluid power systems and
components ................. 100,000 4,550,000
------------
Office Equipment--0.9%
Pitney Bowes
Postage meters, office
equipment .................. 150,000 4,762,500
------------
Paper and Packaging--3.0%
Consolidated Papers
Enamel printing paper ...... 50,000 2,250,000
Federal Paper Board
Boxboards and folding
cartons .................... 150,000 4,350,000
9
<PAGE>
- - -------------------------------------------------------------------------------
Portfolio of Investments (continued) December 31, 1994
- - -------------------------------------------------------------------------------
Shares Value
------ -----
Paper and Packaging (continued)
Kimberly-Clark
Consumer paper producer;
newsprint................... 75,000 $ 3,787,500
Pechiney International
Producer of packaging and
turbine blades for jet
engines .................... 24,000 719,505
Union Camp
Paper, packaging, and chemical
distributor ................ 100,000 4,712,500
------------
15,819,505
------------
Printing and Publishing--1.3%
Elsevier
Global printer and publisher
of professional trade journals
and magazines............... 180,000 1,878,893
Knight-Ridder Newspapers
Newspapers, business
information services ....... 100,000 5,050,000
------------
6,928,893
------------
Restaurant--0.5%
Wendy's International
Fast food restaurant ....... 200,000 2,875,000
------------
Retail Trade--5.6%
Dairy Farm
Diversified retail chain in
Hong Kong .................. 2,000,000 2,140,000
K Mart
Discount department stores . 300,000 3,900,000
Limited
Women's apparel stores ..... 150,000 2,718,750
Mercantile Stores
Department stores .......... 75,000 2,962,500
Nordstrom
Department stores .......... 125,000 5,265,625
Penney (J.C.)
Department stores .......... 100,000 4,462,500
U.S. Shoe
Diversified specialty
retailer ................... 200,000 3,750,000
Wal-Mart
Discount retail chain ...... 200,000 4,250,000
------------
29,449,375
------------
Telecommunications--3.9%
Alcatel Alsthom
Communication systems;
energy; transportation ..... 17,000 1,452,501
ALLTEL
Telecommunications/data
processing services ........ 250,000 7,531,250
American Telephone & Telegraph
International and domestic
telecommunications
services ................... 100,000 5,025,000
Cable and Wireless (ADSs)
International
telecommunications
services ................... 80,000 1,400,000
Indosat (ADSs)***
International telecommunications
to the Indonesian market.... 13,100 468,325
Tele Danmark (ADSs)
Domestic international
phone service .............. 70,000 1,785,000
Telecom Italia
Telecommunications services
in Italy ................... 585,000 1,167,114
Telefonica de Espana (ADSs)
Telecommunications services
in Spain ................... 30,000 1,046,250
Telefonos de Mexico, S.A. (ADRs)
Telephone services in
Mexico ..................... 15,000 615,000
------------
20,490,440
------------
Tobacco--2.2%
Philip Morris
Tobacco, food, and beverage
manufacturer ............... 100,000 5,750,000
UST Inc.
Tobacco and beverages ...... 200,000 5,550,000
------------
11,300,000
------------
Transportation--2.6%
British Airways (ADRs)
International airline ...... 35,000 1,951,250
Conrail
Major freight railroad
services ................... 70,000 3,535,000
Jurong Shipyard
Leading ship repair company
in Singapore................ 150,000 1,152,263
Roadway Services
Motor carrier .............. 125,000 7,078,125
------------
13,716,638
------------
Miscellaneous/Diversified--5.6%
American Home Products
Pharmaceuticals, food,
housewares.................. 50,000 3,137,500
Corning
Specialty glass products ... 200,000 5,975,000
Dover
Elevators; petroleum equipment;
industrial products ........ 50,000 2,581,250
European Vinyls***
Market leader in the PVC
industry.................... 32,300 1,432,451
Hopewell Holdings
Regional construction
company .................... 5,000,000 4,135,436
Hutchison Whampoa (ADRs)
One of Hong Kong's largest and
most diversified
conglomerates .............. 200,000 4,045,460
Minnesota Mining &
Manufacturing
Consumer and industrial goods
and services ............... 100,000 5,337,500
Semi-Tech (Global)
Diversified manufacturer
of consumer products ....... 1,500,000 2,529,723
------------
29,174,320
------------
Total Common Stocks
(Cost $351,356,156) ....... 444,814,373
------------
10
<PAGE>
- - -------------------------------------------------------------------------------
Portfolio of Investments (continued) December 31, 1994
- - -------------------------------------------------------------------------------
Principal
Amount
or Shares Value
--------- -----
Convertible Bonds--8.1%
Biotechnology--0.3%
Genzyme 6 3/4%, 10/1/2001++.... $2,000,000 $ 1,697,500
------------
Insurance--0.7%
AXA 6%, 1/1/2001 ............. 4,497,500** 988,068
Horace Mann 4%, 12/1/1999 .... 2,000,000 1,830,000
Liberty Life International
6 1/2%, 9/30/2004 ........... 1,000,000 1,027,500
------------
3,845,568
------------
Leisure and Related--0.3%
Bell Sports 4 1/4%, 11/15/2000. 2,500,000 1,609,375
------------
Retail Trade--0.8%
Big B 6 1/2%, 3/15/2003 ....... 2,000,000 2,340,000
Price 6 3/4%, 3/1/2001 ........ 2,000,000 1,800,000
------------
4,140,000
------------
Technology--2.7%
Bay Networks
5 1/4%, 5/15/2003++ ......... 6,000,000 4,545,000
Conner Peripherals
6 1/2%, 3/1/2002 ............ 2,000,000 1,397,500
Data General 7 3/4%, 6/1/2001 . 3,000,000 2,610,000
EMC 4 1/4%, 1/1/2001 .......... 3,000,000 3,633,750
Seagate Technology
6 3/4%, 5/1/2012 ............ 2,500,000 2,065,625
------------
14,251,875
------------
Telecommunications--0.7%
Century Telephone
6%, 2/1/2007++.............. 3,000,000 3,547,500
------------
Transportation--0.3%
Nippon Yusen 2%, 9/29/2000.... 14,000,000* 1,758,971
------------
Miscellaneous/Diversified--2.3%
Land & General Berhad
4 1/2%, 7/26/2004............ 1,000,000 1,142,500
MascoTech 4 1/2%, 12/15/2003... 3,000,000 2,017,500
Thermo Electron
5%, 4/15/2001++............. 3,000,000 3,183,750
TNT Finance 9%, 7/27/1998 .... 5,000,000+ 3,550,469
TriMas 5%, 8/1/2003........... 2,000,000 1,980,000
------------
11,874,219
------------
Total Convertible Bonds
(Cost $42,291,745) ........ 42,725,008
------------
Convertible Preferred Stocks--5.1%
Banking and Finance--1.1%
Citicorp $5.375++ ............ 50,000shs. 5,731,250
----------
Basic Minerals--0.5%
Freeport-McMoRan $4.375++ .... 55,000 2,626,250
------------
Drugs and Health Care--0.7%
Beverly Enterprises $2.75 .... 60,000 3,540,000
------------
Insurance--0.8%
Alexander & Alexander
(Series A) $3.625++ ........ 100,000 4,000,000
------------
Technology--0.4%
Unisys $3.75 ................. 70,000 2,222,500
------------
Telecommunications--0.7%
Mobile Telecommunications
Technology $2.25++.......... 75,000 2,100,000
Nacional Financiera 11 1/4% ... 40,000 1,660,000
------------
3,760,000
------------
Transportation--0.9%
GATX $3.875 .................. 50,000 2,700,000
Sea Containers $4.00 ......... 50,000 2,031,250
------------
4,731,250
------------
Total Convertible Preferred Stocks
(Cost $25,469,423) ........ 26,611,250
------------
Short-Term Holdings--1.6%
(Cost $8,510,000) ......... 8,510,000
------------
Total Investments--99.5%
(Cost $427,627,324) 522,660,631
Other Assets Less
Liabilities--0.5% 2,711,586
------------
Net Assets--100.0% $525,372,217
============
- - ---------------------
++ Rule 144A security.
* Principal amount reported in Japanese yen.
+ Principal amount reported in Australian dollars.
** Principal amount reported in French francs.
*** Non-income producing security.
Descriptions of companies have not been audited by Deloitte & Touche LLP. See
notes to financial statements.
11
<PAGE>
- - -------------------------------------------------------------------------------
Statement of Assets and Liabilities December 31, 1994
- - -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
Assets:
Investments, at value:
Common stocks and convertible securities (cost $419,117,324)............. $514,150,631
Short-term holdings (cost $8,510,000).................................... 8,510,000 $522,660,631
------------
Cash....................................................................... 3,299,004
Receivable for dividends and interest...................................... 2,063,914
Receivable for Capital Stock sold.......................................... 474,818
Investment in, and expenses prepaid to, shareholder service agent.......... 189,907
Other...................................................................... 49,550
------------
Total Assets .............................................................. 528,737,824
------------
Liabilities:
Payable for securities purchased........................................... 2,101,426
Payable for Capital Stock repurchased...................................... 762,721
Accrued expenses, taxes, and other......................................... 501,460
------------
Total Liabilities ......................................................... 3,365,607
------------
Net Assets ................................................................ $525,372,217
============
Composition of Net Assets:
Capital Stock, at par ($0.50 par value; 60,000,000 shares authorized; 43,354,186
shares outstanding):
Class A.................................................................. $ 21,079,941
Class D.................................................................. 597,152
Additional paid-in capital................................................. 407,925,517
Undistributed net investment income........................................ 740,106
Net unrealized appreciation of investments................................. 94,340,408
Net unrealized appreciation on translation of assets and liabilities
denominated in foreign currencies ...................................... 689,093
------------
Net Assets ................................................................ $525,372,217
============
Net Asset Value per share:
Class A ($510,955,702 divided by 42,159,881 shares) ........................... $12.12
======
Class D ($14,416,515 divided by 1,194,305 shares) ............................. $12.07
======
</TABLE>
- - --------------------
See notes to financial statements.
12
<PAGE>
- - -------------------------------------------------------------------------------
Statement of Operations For the Year Ended December 31, 1994
- - -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
Investment income:
Dividends (net of foreign taxes withheld of $247,488)...................... $ 16,942,058
Interest................................................................... 3,649,021
------------
Total investment income.................................................... $ 20,591,079
Expenses:
Management fee............................................................. 2,676,075
Shareholder account services............................................... 838,184
Distribution and service fees.............................................. 805,916
Auditing and legal fees.................................................... 85,913
Shareholder reports and communications..................................... 75,305
Registration............................................................... 70,372
Shareholders' meeting...................................................... 48,806
Directors' fees and expenses............................................... 47,299
Custody and related services............................................... 40,996
Miscellaneous.............................................................. 50,349
------------
Total expenses............................................................. 4,739,215
------------
Net investment income ..................................................... 15,851,864
Net realized and unrealized gain (loss) on investments
and foreign currency transactions:
Net realized gain on investments........................................... 30,111,954
Net realized loss from foreign currency transactions....................... (289,137)
Net change in unrealized appreciation of investments....................... (57,135,423)
Net change in unrealized appreciation on translation of assets
and liabilities denominated in foreign currencies....................... 689,093
------------
Net loss on investments and foreign currency transactions ................. (26,623,513)
------------
Decrease in net assets from operations .................................... $(10,771,649)
============
</TABLE>
- - ---------------------
See notes to financial statements.
13
<PAGE>
- - -------------------------------------------------------------------------------
Statement of Changes in Net Assets
- - -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended December 31
----------------------------------
1994 1993
------------ ------------
<S> <C> <C>
Operations:
Net investment income........................................................ $ 15,851,864 $ 15,366,430
Net realized gain on investments............................................. 30,111,954 32,447,338
Net realized loss from foreign currency transactions......................... (289,137) --
Net change in unrealized appreciation of investments......................... (57,135,423) 26,834,219
Net change in unrealized appreciation on translation of assets and
liabilities denominated in foreign currencies............................. 689,093 --
------------ ------------
Increase (decrease) in net assets from operations............................ (10,771,649) 74,647,987
------------ ------------
Distributions to shareholders:
Net investment income:
Class A.................................................................... (15,015,753) (15,022,183)
Class D.................................................................... (210,878) (41,475)
Net realized gain on investments:
Class A.................................................................... (29,036,367) (32,195,459)
Class D.................................................................... (800,763) (289,062)
------------ -----------
Decrease in net assets from distributions.................................... (45,063,761) (47,548,179)
----------- -----------
Shares
--------------------------------
Year Ended December 31
--------------------------------
Capital share transactions:* 1994 1993
----------- -----------
Net proceeds from sale of shares:
Class A................................ 1,534,694 1,439,431 20,075,350 19,384,423
Class D................................ 727,532 414,343 9,554,389 5,672,851
Investment of dividends:
Class A................................ 571,816 524,004 7,311,515 7,060,169
Class D................................ 15,530 2,931 195,397 39,730
Exchanged from associated Funds:
Class A................................ 626,214 440,511 8,186,930 5,945,981
Class D................................ 84,883 203 1,096,450 2,841
Shares issued in payment of gain distributions:
Class A................................ 1,662,319 1,609,566 19,980,400 21,697,044
Class D................................ 64,100 20,812 768,411 280,544
---------- ---------- ------------ -----------
Total.................................... 5,287,088 4,451,801 67,168,842 60,083,583
---------- ---------- ------------ -----------
Cost of shares repurchased:
Class A................................ (2,685,463) (2,568,340) (35,123,441) (34,490,577)
Class D................................ (68,351) (7,940) (883,908) (111,052)
Exchanged into associated Funds:
Class A................................ (622,475) (552,006) (8,190,671) (7,632,281)
Class D................................ (50,488) (9,250) (652,278) (129,591)
------------ ------------ ------------ -------------
Total.................................... (3,426,777) (3,137,536) (44,850,298) (42,363,501)
------------ ------------ ------------ ------------
Increase in net assets from capital
share transactions ................... 1,860,311 1,314,265 22,318,544 17,720,082
============ ============ ============ ============
Increase (decrease) in net assets............................................ (33,516,866) 44,819,890
Net Assets:
Beginning of year............................................................ 558,889,083 514,069,193
------------ ------------
End of year (including undistributed net investment income of
$740,106 and $129,185, respectively)...................................... $525,372,217 $558,889,083
============ ============
</TABLE>
- - ---------------------
* The Fund began offering Class D shares on May 3, 1993. See notes to financial
statements.
14
<PAGE>
- - -------------------------------------------------------------------------------
Notes to Financial Statements
- - -------------------------------------------------------------------------------
1. Effective May 3, 1993, Seligman Common Stock Fund, Inc. (the "Fund") began
offering two classes of shares. All shares existing prior to May 3, 1993, have
been classified as Class A shares. Class A shares are sold with an initial sales
charge of up to 4.75% and a continuing service fee of up to 0.25% on an annual
basis. Class D shares are sold without an initial sales charge but are subject
to a higher distribution fee and a contingent deferred sales load ("CDSL") of 1%
imposed on certain redemptions made within one year of purchase. The two 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 class expenses and has exclusive
voting rights with respect to any matter to which a separate vote of any class
is required. 2. Significant accounting policies followed, all in conformity with
generally accepted accounting principles, are given below: a. Investments in
convertible securities and common stocks are valued at
current market values or, in their absence, at fair value determined in
accordance with procedures approved by the Board of Directors. Securities
traded on national exchanges are valued at last sales prices or, in their
absence and in the case of over-the-counter securities, a mean of bid and
asked prices. Short-term holdings maturing in 60 days or less are valued at
amortized cost.
b. The books and records of the Fund are maintained in U.S. dollars. The
market value of investment securities and other assets and liabilities
denominated in foreign currencies are translated into U.S. dollars at the
closing daily rate of exchange as reported by a pricing service. Purchases
and sales of investment securities, income, and expenses are translated
into U.S. dollars at the rate of exchange prevailing on the respective
dates of such transactions.
The Fund separates that portion of the results of operations resulting from
changes in the foreign exchange rates from the fluctuations arising from
changes in the market prices of securities held in the portfolio.
Similarly, the Fund separates the effect of changes in foreign exchange
rates from the fluctuations arising from changes in the market prices of
portfolio securities sold during the period.
c. There is no provision for federal income or excise 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.
d. Investment transactions are recorded on trade dates. Identified cost of
investments sold is used for both financial statement and federal income
tax purposes. Dividends receivable and payable are recorded on ex-dividend
dates. Interest income is recorded on an accrual basis.
e. All income, expenses (other than class-specific expenses), and realized and
unrealized gains or losses are allocated daily to each class of shares
based upon the relative proportion of the value of shares outstanding of
each class. Class-specific expenses, which include distribution and service
fees and any other items that can be specifically attributed to a
particular class, are charged directly to such class.
f. The treatment for financial statement purposes of distributions made during
the year from net investment income or net realized gain may differ from
their ultimate treatment for federal income tax purposes. These differences
are caused primarily by: differences in the timing of the recognition of
certain components of income, expense, or capital gain and the
recharacter-ization of foreign exchange gains or losses to either ordinary
income or realized capital gain for federal income tax purposes. Where such
differences are permanent in nature, they are reclassified in the
components of net assets based on their ultimate characterization for
federal income tax purposes. Any such reclassification will have no effect
on net assets, results of operations, or net asset value per share of the
Fund.
3. Purchases and sales of portfolio securities, excluding short-term
investments, for the year ended December 31, 1994, amounted to $302,384,215 and
$300,438,815, respectively.
At December 31, 1994, the cost of investments for federal income tax
purposes was substantially the same as the cost for financial reporting
purposes, and the tax basis gross unrealized appreciation and depreciation of
portfolio securities, including the effects of foreign currency transactions,
amounted to $118,416,221 and $23,382,914, respectively.
15
<PAGE>
4. J. & W. Seligman & Co. Incorporated (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 payable
monthly, equal to a per annum percentage of the Fund's daily net assets. The
management fee rate is calculated on a sliding scale of 0.50% to 0.44%, based on
average daily net assets of all the investment companies managed by the Manager.
The management fee for the year ended December 31, 1994, was equivalent to an
annual rate of 0.49% of the average daily net assets of the Fund. Effective June
1, 1994, Seligman Henderson Co. (the "Subadviser"), a 50% owned affiliate of the
Manager, is entitled to a portion of the Manager's fee for acting as subadviser
for certain of the international investments of the Fund.
Seligman Financial Services, Inc. (the "Distributor"), agent for the
distribution of Fund shares and an affiliate of the Manager, received
commissions of $46,173 from sales of Class A shares, after concessions of
$355,656 paid to dealers.
Effective January 1, 1993, the Fund adopted an Administration, Shareholder
Services and Distribution Plan (the "Plan") with respect to Class A shares under
which service organizations can enter into agreements with the Distributor and
receive a continuing fee of up to 0.25% on an annual basis, payable quarterly,
of the average daily net assets of the Class A shares attributable to the
particular service organizations for providing personal services and/or the
maintenance of shareholder accounts. The Distributor charges such fees to the
Fund pursuant to the Plan. For the year ended December 31, 1994, fees incurred
aggregated $703,165, or 0.14% per annum of the average daily net assets of Class
A shares.
Effective May 3, 1993, the Fund adopted a Plan with respect to Class D
shares under which service organizations can enter into agreements with the
Distributor and receive a continuing fee for providing personal services and/or
the maintenance of shareholder accounts of up to 0.25% on an annual basis of the
average daily net assets of the Class D shares for which the organizations are
responsible, and 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. For the year ended December
31, 1994, fees paid amounted to $102,751, or 1% per annum of the average daily
net assets of Class D shares.
The Distributor is entitled to retain any CDSL imposed on certain
redemptions occurring within one year of purchase. For the year ended December
31, 1994, such charges amounted to $3,862.
Seligman Data Corp., owned by the Fund and certain associated investment
companies, charged the Fund at cost $837,197 for shareholder account services.
The Fund's investment in Seligman Data Corp. is recorded at a cost of $22,506.
Certain officers and directors of the Fund are officers or directors of the
Manager, the Subadviser, the Distributor, and/or Seligman Data Corp.
Fees of $28,000 were incurred by the Fund for legal services of Sullivan &
Cromwell, a member of which firm is a director of the Fund.
The Fund has a compensation arrangement under which directors who receive
fees may elect to defer receiving such fees. Interest is accrued on the deferred
balances. The annual cost of such fees and interest is included in directors'
fees and expenses, and the accumulated balance thereof at December 31, 1994, of
$145,774 is included in other liabilities. Deferred fees and the related accrued
interest are not deductible for federal income tax purposes until such amounts
are paid. 5. Class-specific expenses charged to Class A and Class D during the
year ended December 31, 1994, which are included in the corresponding captions
of the Statement of Operations, were as follows:
Class A Class D
------- -------
Distribution and service fees.... $703,165 $102,751
Shareholder reports and
communications................ 28,552 1,145
Registration..................... 26,176 24,343
Shareholders' meeting............ 23,039 1,140
16
<PAGE>
- - -------------------------------------------------------------------------------
Financial Highlights
- - -------------------------------------------------------------------------------
The Fund's financial highlights are presented below. The per share operating
performance data is designed to allow investors to trace the operating
performance, on a per share basis, from the Fund's beginning net asset value to
the ending net asset value so that they can understand what effect the
individual items have on their investment, assuming it was held throughout the
period. Generally, the per share amounts are derived by converting the actual
dollar amounts incurred for each item, as disclosed in the financial statements,
to their equivalent per share amount.
The total return based on net asset value measures the Fund's performance
assuming investors purchased Fund shares at net asset value as of the beginning
of the period, reinvested dividends and capital gains paid at net asset value,
and then sold their shares at the net asset value per share on the last day of
the period. The total return computations do not reflect any sales charges
investors may incur in purchasing or selling shares of the Fund. The total
returns for periods of less than one year are not annualized.
<TABLE>
<CAPTION>
Class A Class D
----------------------------------------------- ---------------------
Year Ended December 31 Year 5/3/93*
----------------------------------------------- Ended to
1994** 1993 1992 1991 1990 12/31/94** 12/31/93
------ ---- ---- ---- ---- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning
of period........................... $13.47 $12.79 $12.54 $10.60 $12.24 $13.46 $13.29
------ ------ ------ ------ ------ ------ ------
Net investment income.................. .38 .39 .39 .40 .38 .22 .18
Net realized and unrealized
investment gain (loss).............. (.64) 1.49 .95 2.72 (.86) (.66) 1.02
---- ---- --- ---- ---- ---- ----
Increase (decrease) from
investment operations............... (.26) 1.88 1.34 3.12 (.48) (.44) 1.20
Dividends paid......................... (.37) (.38) (.39) (.40) (.41) (.23) (.21)
Distributions from net gain
realized............................ (.72) (.82) (.70) (.78) (.75) (.72) (.82)
---- ---- ---- ---- ---- ---- ----
Net increase (decrease) in net
asset value......................... (1.35) .68 .25 1.94 (1.64) (1.39) .17
----- --- --- ---- ----- ----- ---
Net asset value, end of period......... $12.12 $13.47 $12.79 $12.54 $10.60 $12.07 $13.46
====== ====== ====== ====== ====== ====== ======
Total return based
on net asset value ................. (1.89)% 14.86% 10.86% 29.93% (3.89)% (3.24)% 9.09%
Ratios/Supplemental Data:
Expenses to average net assets......... .85% .87% .75% .72% .66% 1.96% 2.02%+
Net investment income to
average net assets.................. 2.93% 2.86% 3.00% 3.24% 3.22% 1.68% 1.83%+
Portfolio turnover..................... 57.17% 54.37% 46.78% 47.60% 45.22% 57.17% 54.37%++
Net assets, end of period
(000's omitted)..................... $510,956 $553,222 $514,069 $494,858 $422,099 $14,416 $5,667
</TABLE>
- - -------------------
* Commencement of offering of Class D shares.
** Per share amounts for the year ended December 31, 1994, are calculated based
on average shares outstanding.
+ Annualized.
++ For the year ended December 31, 1993.
See notes to financial statements.
17
<PAGE>
- - -------------------------------------------------------------------------------
Report of Independent Auditors
- - -------------------------------------------------------------------------------
The Board of Directors and Shareholders,
Seligman Common Stock Fund, Inc.:
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Seligman Common Stock Fund, Inc. as of December
31, 1994, 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 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, 1994 by correspondence with the Fund's custodians and brokers;
where replies were not received from brokers, we performed other auditing
procedures. 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 Common
Stock Fund, Inc. as of December 31, 1994, 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.
/s/ DELOITTE & TOUCHE LLP
---------------------
DELOITTE & TOUCHE LLP
New York, New York
February 3, 1995
18
<PAGE>
- - -------------------------------------------------------------------------------
Board of Directors
- - -------------------------------------------------------------------------------
Fred E. Brown
Director and Consultant,
J. & W. Seligman & Co. Incorporated
Alice S. Ilchman 3, 4
President, Sarah Lawrence College
Trustee, Committee for Economic Development
Director, NYNEX
Trustee, The Rockefeller Foundation
John E. Merow
Partner, Sullivan & Cromwell, Attorneys
Betsy S. Michel 2, 4
Director or Trustee,
Various Organizations
William C. Morris 1
Chairman
Chairman of the Board and President,
J. & W. Seligman & Co. Incorporated
Chairman, Carbo Ceramics Inc.
Director, Daniel Industries, Inc.
Director, Kerr-McGee Corporation
Douglas R. Nichols, Jr. 2, 4
Management Consultant
James C. Pitney 3, 4
Partner, Pitney, Hardin, Kipp & Szuch, Attorneys
Director, Public Service Enterprise Group
James Q. Riordan 3, 4
Director, The Brooklyn Union Gas Company
Trustee, Committee for Economic Development
Director, Dow Jones & Co., Inc.
Director, Public Broadcasting Service
Herman J. Schmidt 2, 4
Director, H.J. Heinz Company
Director, HON Industries, Inc.
Director, MAPCO, Inc.
Ronald T. Schroeder 1
President
Managing Director, J. & W. Seligman & Co. Incorporated
Robert L. Shafer 3, 4
Vice President, Pfizer Inc.
Director, USLIFE Corporation
James N. Whitson 2, 4
Executive Vice President and Director,
Sammons Enterprises, Inc.
Director, C-SPAN
Brian T. Zino 1
Managing Director, J. & W. Seligman & Co. Incorporated
- - ----------------------
Member: 1 Executive Committee; 2 Audit Committee; 3 Director Nominating
Committee; 4 Board Operations Committee
- - -------------------------------------------------------------------------------
Executive Officers
William C. Morris
Chairman
Ronald T. Schroeder
President
Charles C. Smith, Jr.
Vice President
Lawrence P. Vogel
Vice President
Thomas G. Rose
Treasurer
Frank J. Nasta
Secretary
- - -------------------------------------------------------------------------------
Manager
J. & W. Seligman & Co. Incorporated
100 Park Avenue
New York, NY 10017
Subadviser
Seligman Henderson Co.
100 Park Avenue
New York, NY 10017
General Counsel
Sullivan & Cromwell
Independent Auditors
Deloitte & Touche LLP
General Distributor
Seligman Financial Services, 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
(800) 622-4597 24-Hour
Automated
Telephone
Access Service
19
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