- --------------------------------------------------------------------------------
MID-YEAR REPORT
================================================================================
SELIGMAN
COMMON
STOCK
FUND, INC.
================================================================================
June 30, 1995
[JWS Logo]
- --------------------------------------------------------------------------------
A Growth and Income Fund
Established in 1930
<PAGE>
================================================================================
TO THE SHAREHOLDERS
- --------------------------------------------------------------------------------
Seligman Common Stock Fund completed the first six months of 1995 with the net
asset value of Class A shares at $13.93 per share on June 30, up from $13.07 on
March 31, and $12.12 on December 31, 1994, and the net asset value of Class D
shares at $13.89 per share, up from $13.02 and $12.07, respectively, for the
same periods. Total returns for the three- and six-month periods were 7.27% and
16.40%, respectively, for Class A shares, and 7.12% and 15.98%, respectively,
for Class D shares, which compares to the 9.55% and 20.21% total returns of the
Standard & Poor's 500 Composite Stock Price Index (S&P500) for the same periods.
Although the S&P 500, which is comprised of stocks of many different companies
from a variety of sectors, performed favorably, it is important to note that
only a few sectors of the market, notably technology and financial, were good
performers, and only a handful of stocks consistently performed better than the
S&P 500 itself. (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.)
On June 21, your Fund paid a $0.09 per share dividend to Class A
shareholders of record June 15, and a $0.057 per share dividend to Class D
shareholders. For both Class A and D shares, net realized gain per share from
investment transactions for the six months totaled $0.74. At June 30, net
unrealized gain per share totaled $3.24. Longer-term performance results appear
on page 2 of this report.
After four years of expansion, the recent stream of economic reports shows
that the long awaited slowdown is under way. The Federal Reserve Board (FRB),
concerned that growth at an accelerated rate would swell inflationary pressures,
increased short-term interest rates seven times, beginning in early 1994.
However, evidence of this current slowdown and moderate inflation led the FRB to
lower rates in early July--the first decrease in three years.
In the financial markets, with signs pointing toward a slowing economy and
prospects favoring declining interest rates, the bond market rallied this past
quarter. Investor demand for equities also continued to be strong, as shown by
the Dow Jones Industrial Average moving to new highs and all broad market equity
indices posting positive returns.
Looking ahead, we believe the economy is likely to regain strength later
this year as consumers respond to lower interest rates, exports are stimulated
by a weaker dollar, and business capital spending remains strong.
Since we last reported, your Fund continued to benefit from the strong
performing sectors, such as financial (Bank of New York), technology
(International Business Machines), and selective consumer issues (PepsiCo).
In the past quarter, your Manager made no particular sector shift, but sold
W. R. Grace and Rohm & Haas. The international portion of your portfolio
experienced good performance in the past quarter, and we remain optimistic about
the prospects for the Fund's overseas investments in the second half of the
year.
Your Manager remains focused on seeking the best opportunities for
long-term growth by investing in companies that have strong earnings potential
in their particular industries.
By order of the Board of Directors,
/s/ William C. Morris
William C. Morris
Chairman
/s/ Ronald T. Schroeder
Ronald T. Schroeder
President
August 4, 1995
1
<PAGE>
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SELIGMAN COMMON STOCK FUND, INC.
- --------------------------------------------------------------------------------
LARGEST PORTFOLIO CHANGES+
During Past Three Months
SHARES
--------------------------
HOLDINGS
ADDITIONS INCREASE 6/30/95
- --------- ----------- ------------
Common Stocks
Bankers Trust............. 100,000 100,000
Bausch & Lomb............. 75,000 150,000
Carolina Power and Light.. 200,000 200,000
Emerson Electric.......... 50,000 50,000
General Public Utilities.. 200,000 200,000
Reader's Digest (Class A). 70,000 70,000
Sherwin-Williams.......... 100,000 100,000
Tenneco................... 100,000 100,000
United Technologies....... 60,000 60,000
Woolworth................. 175,000 175,000
HOLDINGS
REDUCTIONS DECREASE 6/30/95
- ---------- ----------- ------------
Common Stocks
Digital Equipment......... 100,000 --
First Financial Management 75,000 --
Grace (W.R.).............. 75,000 --
Hopewell Holdings......... 5,000,000 --
MBNA...................... 100,000 100,000
NationsBank............... 100,000 --
Pacific Telesis........... 180,000 --
Pennzoil.................. 100,000 --
Rohm & Haas............... 80,000 --
Convertible Preferred Stocks
Beverly Enterprises $2.75. 60,000 --
+ Largest portfolio changes from previous quarter to current quarter are based
on cost of purchases and proceeds from sale of securities.
MAJOR PORTFOLIO HOLDINGS
at June 30, 1995
SECURITY VALUE
- -------- ------------
General Electric......................... $11,275,000
International Business Machines.......... 9,600,000
Royal Dutch Petroleum.................... 9,140,625
American International Group............. 8,550,000
Bank of New York......................... 8,075,000
Citicorp $5.375.......................... 7,968,750
Coca-Cola................................ 7,968,750
Philip Morris............................ 7,437,500
Colgate-Palmolive........................ 7,312,500
May Department Stores.................... 7,284,375
- --------------------------------------------------------------------------------
LONG-TERM INVESTMENT RESULTS
AVERAGE ANNUAL TOTAL RETURNS
June 30, 1995
Class A*
ONE FIVE TEN
YEAR YEARS YEARS
---- ------ ------
With Sales Charge 13.49% 10.46% 12.81%
Without Sales Charge 19.20 11.53 13.35
Class D**
SINCE
ONE INCEPTION
YEAR 5/3/93
----- ---------
With CDSL 17.02% n/a
Without CDSL 18.02 9.82%
* The maximum initial sales charge for Class A shares is 4.75%. No adjustment
was made to performance for periods prior to the commencement date, January
1, 1993, for the continuing Administration, Shareholder Services and
Distribution Plan fee of up to 0.25% on an annual basis of average daily net
assets of Class A shares.
** The returns for the one-year period for Class D shares are shown with and
without the effect of the 1% contingent deferred sales load ("CDSL") imposed
on certain shares redeemed within one year of purchase.
- --------------------------------------------------------------------------------
These rates of return reflect changes in price and assume that all distributions
within the period are reinvested in additional shares. The rates of return will
vary and the principal value of an investment will fluctuate. Shares, if
redeemed, may be worth more or less than their original cost. Past performance
is not indicative of future investment results.
- --------------------------------------------------------------------------------
2
<PAGE>
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PORTFOLIO OF INVESTMENTS June 30, 1995
- --------------------------------------------------------------------------------
SHARES VALUE
------ -----
COMMON STOCKS 86.3%
ADVERTISING 1.0%
Omnicom Group................ 100,000 $ 6,062,500
------------
AEROSPACE/DEFENSE 1.6%
General Motors (Class H)..... 125,000 4,937,500
United Technologies.......... 60,000 4,687,500
------------
9,625,000
------------
APPAREL AND TEXTILES 1.2%
Liz Claiborne................ 150,000 3,187,500
Unifi........................ 175,000 4,210,938
------------
7,398,438
------------
AUTOMOTIVE AND RELATED 1.5%
Autoliv (ADRs)*+............. 40,000 2,142,500
Echlin....................... 150,000 5,212,500
Volkswagen................... 5,900 1,700,651
------------
9,055,651
------------
CHEMICALS 3.8%
Air Products and Chemicals... 100,000 5,575,000
Bayer AG..................... 7,600 1,889,418
Crompton & Knowles........... 200,000 2,825,000
Dow Chemical................. 100,000 7,187,500
European Vinyls*............. 45,300 2,112,420
Lubrizol..................... 100,000 3,537,500
------------
23,126,838
------------
COMPUTERS AND BUSINESS SERVICES 1.6%
International Business
Machines.................. 100,000 9,600,000
------------
CONSTRUCTION 0.6%
Sherwin-Williams............. 100,000 3,562,500
------------
CONSUMER GOODS AND SERVICES 8.9%
Allied Domecq................ 230,000 2,004,207
B.A.T. Industries............ 200,000 1,533,909
Christian Dior-ABSA.......... 10,000 881,916
Coca-Cola.................... 125,000 7,968,750
Colgate-Palmolive............ 100,000 7,312,500
Eastman Kodak................ 100,000 6,062,500
Gillette..................... 100,000 4,462,500
International Flavors
& Fragrances.............. 100,000 4,975,000
PepsiCo...................... 150,000 6,843,750
Procter & Gamble............. 100,000 7,187,500
Rubbermaid................... 185,000 5,133,750
------------
54,366,282
------------
DRUGS AND HEALTH CARE 5.9%
Abbott Laboratories.......... 150,000 $ 6,075,000
American Home Products....... 50,000 3,868,750
Bard (C.R.).................. 150,000 4,500,000
Bausch & Lomb................ 150,000 6,225,000
Bristol-Myers Squibb......... 75,000 5,109,375
Mallinckrodt Group........... 100,000 3,550,000
Schering-Plough.............. 150,000 6,618,750
------------
35,946,875
------------
ELECTRIC AND GAS UTILITIES 6.2%
British Gas (ADRs)........... 30,000 1,361,250
Carolina Power and Light..... 200,000 6,050,000
Emerson Electric............. 50,000 3,575,000
Empresa Nacional de
Electricidad (ADRs)....... 50,000 2,462,500
General Public Utilities..... 200,000 5,950,000
Hong Kong Electric........... 1,800,000 6,118,097
Huaneng Power
International (ADRs)*...... 60,000 1,102,500
PacifiCorp................... 250,000 4,687,500
Unicom....................... 100,000 2,662,500
Williams Cos................. 100,000 3,487,500
------------
37,456,847
------------
ELECTRONICS 1.1%
Motorola..................... 100,000 6,712,500
------------
ENERGY 7.4%
Anadarko Petroleum........... 82,000 3,536,250
Atlantic Richfield........... 50,000 5,487,500
Enron........................ 200,000 7,025,000
Mobil........................ 75,000 7,200,000
Panhandle Eastern............ 200,000 4,875,000
Royal Dutch Petroleum........ 75,000 9,140,625
Schlumberger................. 100,000 6,212,500
Total SA (Class B)........... 25,000 1,507,019
------------
44,983,894
------------
FINANCE AND INSURANCE 12.9%
Aetna Life & Casualty........ 75,000 4,715,625
Ahmanson (H.F.).............. 200,000 4,400,000
American International Group. 75,000 8,550,000
Banco Santander (ADSs)....... 50,000 1,975,998
Bank of New York............. 200,000 8,075,000
Bankers Trust................ 100,000 6,193,750
Chubb........................ 75,000 6,009,375
Federal National Mortgage
Association................ 70,000 6,606,250
General Re................... 50,000 6,693,750
Great Western Financial...... 150,000 3,093,750
Household International...... 75,000 3,703,125
3
<PAGE>
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PORTFOLIO OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
SHARES VALUE
------ -----
FINANCE AND INSURANCE (continued)
Internationale Nederlanden
Bank 38,950 2,155,923
KeyCorp...................... 125,000 3,921,875
MBNA......................... 100,000 3,375,000
Morgan (J. P.)............... 90,000 6,311,250
National Australia Bank (ADRs) 50,000 2,000,000
Societe Generale............. 8,800 1,030,058
------------
78,810,729
------------
FOOD 4.7%
Campbell Soup................ 100,000 4,900,000
ConAgra...................... 150,000 5,231,250
CPC International............ 100,000 6,175,000
General Mills................ 100,000 5,137,500
Sara Lee..................... 250,000 7,125,000
------------
28,568,750
------------
INDUSTRIAL EQUIPMENT 2.7%
BTR.......................... 320,000 1,630,217
General Electric............. 200,000 11,275,000
Mannesmann................... 4,000 1,222,423
Pacific Dunlop............... 1,100,000 2,312,900
------------
16,440,540
------------
OFFICE EQUIPMENT 0.9%
Pitney Bowes................. 150,000 5,756,250
------------
PAPER AND PACKAGING 2.0%
Bowater...................... 100,000 4,487,500
Kimberly-Clark............... 100,000 5,987,500
Pechiney International....... 24,000 606,936
Stora Kopparbergs (Class B).. 80,000 1,084,033
------------
12,165,969
------------
PRINTING AND PUBLISHING 2.8%
Donnelley (R.R.)............. 100,000 3,600,000
Knight-Ridder Newspapers..... 100,000 5,687,500
Reader's Digest (Class A).... 70,000 3,088,750
Reed Elsevier................ 130,000 1,536,524
Tribune...................... 50,000 3,068,750
------------
16,981,524
------------
RESTAURANT 0.6%
Wendy's International........ 200,000 3,575,000
RETAIL TRADE 7.0%
American Stores.............. 200,000 5,625,000
Dillard Department Stores.... 100,000 2,937,500
Kmart........................ 300,000 4,387,500
Limited...................... 150,000 3,300,000
May Department Stores........ 175,000 7,284,375
Nordstrom.................... 125,000 5,164,063
Sears, Roebuck............... 100,000 5,987,500
Wal-Mart..................... 200,000 5,350,000
Woolworth.................... 175,000 2,646,875
------------
42,682,813
------------
STEEL 0.1%
Pohang Iron & Steel (ADRs)... 30,000 885,000
------------
TECHNOLOGY 0.4%
Cray Research................ 100,000 2,437,500
------------
TELECOMMUNICATIONS 2.8%
Alcatel Alsthom.............. 17,000 1,532,948
ALLTEL....................... 250,000 6,343,750
American Telephone
& Telegraph............... 100,000 5,312,500
Indosat (ADSs)............... 13,100 501,075
Tele Danmark (ADSs).......... 70,000 1,960,000
Telecom Italia............... 585,000 1,238,360
------------
16,888,633
------------
TELEPHONE UTILITIES 1.0%
NYNEX........................ 150,000 6,037,500
------------
TOBACCO 2.2%
Philip Morris................ 100,000 7,437,500
UST Inc...................... 200,000 5,950,000
------------
13,387,500
------------
TRANSPORTATION 2.0%
British Airways (ADRs)....... 35,000 2,283,750
Conrail...................... 50,000 2,781,250
Jurong Shipyard.............. 150,000 1,073,729
Roadway Services ............ 125,000 5,875,000
------------
12,013,729
------------
MISCELLANEOUS/DIVERSIFIED 3.4%
Corning (Delaware)........... 200,000 6,550,000
Dover........................ 50,000 3,637,500
Minnesota Mining
& Manufacturing........... 100,000 5,725,000
Tenneco...................... 100,000 4,600,000
------------
20,512,500
------------
TOTAL COMMON STOCKS
(Cost $393,711,314) ..... 525,041,262
------------
4
<PAGE>
================================================================================
June 30, 1995
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------ -----
CONVERTIBLE BONDS 6.8%
BIOTECHNOLOGY 0.3%
Genzyme 6 3/4%, 10/1/2001+ ..$ 2,000,000 $ 1,997,500
INSURANCE 0.7%
AXA 6%, 1/1/2001 ............ 4,497,500## 1,083,987
Horace Mann 4%, 12/1/1999 ... 2,000,000 1,985,000
Liberty Life International
6 1/2%, 9/30/2004 ......... 1,000,000 1,191,875
------------
4,260,862
------------
LEISURE AND RELATED 0.3%
Bell Sports 4 1/4%,
11/15/2000 ................ 2,500,000 1,868,750
------------
RETAIL TRADE 0.7%
Big B 6 1/2%, 3/15/2003 ..... 2,000,000 2,390,000
Price 6 3/4%, 3/1/2001 ...... 2,000,000 1,990,000
------------
4,380,000
------------
TECHNOLOGY 2.3%
Bay Networks 5 1/4%,
5/15/2003+ ................ 6,000,000 5,707,500
Conner Peripherals
6 1/2%, 3/1/2002 ......... 2,000,000 1,687,500
Data General 7 3/4%, 6/1/2001 3,000,000 2,700,000
EMC 4 1/4%, 1/1/2001 ........ 3,000,000 4,050,000
------------
14,145,000
------------
TRANSPORTATION 0.3%
Nippon Yusen
2%, 9/29/2000 .............140,000,000** 1,704,032
------------
MISCELLANEOUS/DIVERSIFIED 2.2%
Land and General Berhad
4 1/2%, 7/26/2004 ......... 1,000,000 1,350,000
MascoTech 4 1/2%,
12/15/2003 ............... 3,000,000 2,186,250
Thermo Electron 5%,
4/15/2001+ ............... 3,000,000 4,065,000
TNT Pacific Finance 9%,
7/27/1998 ................ 5,000,000++ 3,391,921
TriMas 5%, 8/1/2003 ......... 2,000,000 2,060,000
------------
13,053,171
------------
TOTAL CONVERTIBLE BONDS
(Cost $37,741,745) ....... 41,409,315
------------
SHARES VALUE
------ -----
CONVERTIBLE PREFERRED STOCKS 4.5%
BANKING AND FINANCE 1.3%
Citicorp $5.375+ ............ 50,000 $ 7,968,750
------------
INSURANCE 0.8%
Alexander & Alexander
(Series A) $3.625+ ........ 100,000 5,025,000
------------
TECHNOLOGY 0.7%
Unisys $3.75................. 100,000 4,300,000
------------
TELECOMMUNICATIONS 0.7%
Mobile Telecommunications
Technology $2.25+ ........ 75,000 2,803,125
Nacional Financiera 11 1/4% . 40,000 1,245,000
------------
4,048,125
------------
TRANSPORTATION 1.0%
GATX $3.875 ................. 70,000 3,920,000
Sea Containers $4.00 ........ 50,000 2,275,000
------------
6,195,000
------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $21,116,286) ........ 27,536,875
------------
SHORT-TERM HOLDINGS 1.2%
(Cost $7,100,000) ................ 7,100,000
------------
TOTAL INVESTMENTS 98.8%
(Cost $459,669,345) .............. 601,087,452
OTHER ASSETS LESS
LIABILITIES 1.2% .............. 7,566,509
------------
NET ASSETS 100.0% ................ $608,653,961
============
- -------
* Non-income producing security.
+ Rule 144A security.
** Principal amount reported in Japanese yen.
++ Principal amount reported in Australian dollars.
## Principal amount reported in French francs.
See notes to financial statements.
5
<PAGE>
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STATEMENT OF ASSETS AND LIABILITIES June 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASSETS:
<S> <C> <C>
Investments, at value:
Common stocks and convertible securities (cost $452,569,345)............. $593,987,452
Short-term holdings (cost $7,100,000).................................... 7,100,000 $ 601,087,452
------------
Cash....................................................................... 7,702,439
Receivable for dividends and interest...................................... 2,780,722
Receivable for securities sold............................................. 2,203,802
Receivable for Capital Stock sold.......................................... 1,267,435
Investment in, and expenses prepaid to, shareholder service agent.......... 181,184
Other...................................................................... 86,816
-------------
Total Assets .............................................................. 615,309,850
-------------
LIABILITIES:
Payable for securities purchased........................................... 5,262,394
Payable for Capital Stock repurchased...................................... 579,064
Accrued expenses, taxes, and other......................................... 814,431
-------------
Total Liabilities ......................................................... 6,655,889
-------------
Net Assets ............................................................... $ 608,653,961
=============
COMPOSITION OF NET ASSETS:
Capital Stock, at par ($0.50 par value; 60,000,000 shares authorized; 43,692,646
shares outstanding):
Class A.................................................................. $ 20,871,205
Class D.................................................................. 975,118
Additional paid-in capital................................................. 412,352,815
Undistributed net investment income........................................ 897,316
Undistributed net realized gain............................................ 32,150,257
Net unrealized appreciation of investments................................. 139,356,874
Net unrealized appreciation on translation of assets and liabilities
denominated in foreign currencies ...................................... 2,050,376
-------------
Net Assets ................................................................ $ 608,653,961
=============
NET ASSET VALUE PER SHARE:
Class A ($581,566,014 / 41,742,410 shares) ................................ $13.93
======
Class D ($27,087,947 / 1,950,236 shares) .................................. $13.89
======
</TABLE>
- ----------
See notes to financial statements.
6
<PAGE>
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STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C> <C>
Dividends (net of foreign taxes withheld of $93,371)....................... $ 8,747,194
Interest................................................................... 1,348,304
------------
Total investment income.................................................... $ 10,095,498
EXPENSES:
Management fee............................................................. 1,368,809
Distribution and service fees.............................................. 693,171
Shareholder account services............................................... 428,284
Shareholder reports and communications..................................... 53,879
Registration............................................................... 50,195
Auditing and legal fees.................................................... 41,577
Directors' fees and expenses............................................... 23,317
Miscellaneous.............................................................. 31,501
------------
Total expenses............................................................. 2,690,733
------------
Net investment income .................................................... 7,404,765
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain on investments........................................... 32,051,577
Net realized gain from foreign currency transactions....................... 121,235
Net change in unrealized appreciation of investments....................... 45,016,466
Net change in unrealized appreciation on translation of assets
and liabilities denominated in foreign currencies....................... 1,361,283
------------
Net gain on investments and foreign currency transactions ................. 78,550,561
------------
Increase in net assets from operations .................................... $85,955,326
============
</TABLE>
- ----------
See notes to financial statements.
7
<PAGE>
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STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31, 1994
---------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income........................................................ $ 7,404,765 $ 15,851,864
Net realized gain on investments............................................. 32,051,577 30,111,954
Net realized gain (loss) from foreign currency transactions.................. 121,235 (289,137)
Net change in unrealized appreciation of investments......................... 45,016,466 (57,135,423)
Net change in unrealized appreciation on translation of assets and liabilities
denominated in foreign currencies......................................... 1,361,283 689,093
----------- ------------
Increase (decrease) in net assets from operations............................ 85,955,326 (10,771,649)
----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A.................................................................... (7,095,293) (15,015,753)
Class D.................................................................... (174,817) (210,878)
Net realized gain on investments:
Class A.................................................................... -- (29,036,367)
Class D.................................................................... -- (800,763)
----------- ------------
Decrease in net assets from distributions.................................... (7,270,110) (45,063,761)
----------- ------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
------------------------------------
SIX MONTHS ENDED YEAR ENDED
CAPITAL SHARE TRANSACTIONS: JUNE 30, 1995 DECEMBER 31, 1994
----------------- -----------------
<S> <C> <C> <C> <C>
Net proceeds from sale of shares:
Class A................................ 1,387,597 1,534,694 18,419,742 20,075,350
Class D................................ 864,131 727,532 11,371,923 9,554,389
Investment of dividends:
Class A................................ 263,125 571,816 3,520,994 7,311,515
Class D................................ 11,894 15,530 159,917 195,397
Exchanged from associated Funds:
Class A................................ 371,397 626,214 4,844,819 8,186,930
Class D................................ 109,864 84,883 1,455,798 1,096,450
Shares issued in payment of gain distributions:
Class A................................ -- 1,662,319 -- 19,980,400
Class D................................ -- 64,100 -- 768,411
---------- ---------- ------------ ------------
Total.................................... 3,008,008 5,287,088 39,773,193 67,168,842
---------- ---------- ------------ ------------
Cost of shares repurchased:
Class A................................ (1,601,735) (2,685,463) (21,068,994) (35,123,441)
Class D................................ (84,066) (68,351) (1,102,306) (883,908)
Exchanged into associated Funds:
Class A................................ (837,855) (622,475) (11,038,952) (8,190,671)
Class D................................ (145,892) (50,488) (1,966,413) (652,278)
---------- ---------- ------------ ------------
Total.................................... (2,669,548) (3,426,777) (35,176,665) (44,850,298)
---------- ---------- ------------ ------------
Increase in net assets from capital
share transactions ................... 338,460 1,860,311 4,596,528 22,318,544
========== ========== ------------ ------------
Increase (decrease) in net assets............................................ 83,281,744 (33,516,866)
NET ASSETS:
Beginning of period.......................................................... 525,372,217 558,889,083
------------ ------------
End of period (including undistributed net investment income of
$897,316 and $740,106, respectively)...................................... $608,653,961 $525,372,217
============ ============
</TABLE>
- ----------
See notes to financial statements.
8
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. Seligman Common Stock Fund, Inc. (the "Fund") offers two classes of shares.
All shares existing prior to May 3, 1993, were 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 distribution fee of up
to 0.75% and a service fee of up to 0.25% on an annual basis, 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 value of shares of each class. Class-specific expenses,
which include distribution and service fees and any other items that are
specifically attributed to a particular class, are charged directly to such
class.
f. The treatment for financial statement purposes of distributions made during
the period 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
recharacterization 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 six months ended June 30, 1995, amounted to $157,505,284
and $156,104,840, respectively.
At June 30, 1995, 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 translations, amounted to
$149,284,177 and $7,866,070, respectively.
9
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
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 six months ended June 30, 1995, was equivalent to an
annual rate of 0.49% of the average daily net assets of the Fund. 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
concessions of $18,444 from sales of Class A shares, after commissions of
$576,008 paid to dealers.
The Fund has 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 six months ended June 30, 1995, fees incurred aggregated
$594,493, or 0.22% per annum of the average daily net assets of Class A shares.
The Fund has 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 six months ended June 30, 1995,
fees paid amounted to $98,678, 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 six months ended June
30, 1995, such charges amounted to $3,886.
For the six months ended June 30, 1995, Seligman Services, Inc., an
affiliate of the Manager, received commissions of $7,685 from sales of Class A
shares of the Fund. Seligman Services, Inc. also received $1,230 from the
Distributor for the sale of Class D shares of the Fund.
Seligman Data Corp., owned by the Fund and certain associated investment
companies, charged the Fund at cost $428,284 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, Seligman Services, Inc., and/or
Seligman Data Corp.
Fees of $14,000 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 cost of such fees and interest is included in directors' fees and
expenses, and the accumulated balance thereof at June 30, 1995, of $153,789 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 six months
ended June 30, 1995, which are included in the corresponding captions of the
Statement of Operations, were as follows:
CLASS A CLASS D
------- -------
Distribution and service fees..... $594,493 $98,678
Shareholder reports and
communications................. 12,159 584
Registration...................... 17,363 7,445
10
<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 amounts.
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
----------------------------------------------------------- -------------------------------
SIX SIX
MONTHS YEAR ENDED DECEMBER 31 MONTHS YEAR 5/3/93*
ENDED ------------------------------------------------ ENDED ENDED TO
6/30/95# 1994# 1993 1992 1991 1990 6/30/95# 12/31/94# 12/31/93
-------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning
of period ...................... $ 12.12 $ 13.47 $ 12.79 $ 12.54 $ 10.60 $ 12.24 $ 12.07 $ 13.46 $ 13.29
Net investment income ............. .17 .38 .39 .39 .40 .38 .12 .22 .18
Net realized and unrealized
investment gain (loss) ......... 1.78 (.64) 1.49 .95 2.72 (.86) 1.77 (.66) 1.02
Net realized and unrealized gain
on foreign currency transactions .03 -- -- -- -- -- .03 -- --
Increase (decrease) from
investment operations .......... 1.98 (.26) 1.88 1.34 3.12 (.48) 1.92 (.44) 1.20
Dividends paid .................... (.17) (.37) (.38) (.39) (.40) (.41) (.10) (.23) (.21)
Distributions from net gain
realized ....................... -- (.72) (.82) (.70) (.78) (.75) -- (.72) (.82)
Net increase (decrease) in net
asset value .................... 1.81 (1.35) .68 .25 1.94 (1.64) 1.82 (1.39) .17
Net asset value, end of period .... $ 13.93 $ 12.12 $ 13.47 $ 12.79 $ 12.54 $ 10.60 $ 13.89 $ 12.07 $ 13.46
TOTAL RETURN BASED
ON NET ASSET VALUE: ............ 16.40% (1.89)% 14.86% 10.86% 29.93% (3.89)% 15.98% (3.24)% 9.09%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average net assets .... .93%+ .85% .87% .75% .72% .66% 1.77%+ 1.96% 2.02%+
Net investment income to
average net assets ............. 2.66%+ 2.93% 2.86% 3.00% 3.24% 3.22% 1.90%+ 1.68% 1.83%+
Portfolio turnover ................ 28.26% 57.17% 54.37% 46.78% 47.60% 45.22% 28.26% 57.17% 54.37%++
Net assets, end of period
(000's omitted) ................ $581,566 $510,956 $553,222 $514,069 $494,858 $422,099 $ 27,088 $ 14,416 $ 5,667
</TABLE>
- ----------
* Commencement of offering of Class D shares.
# Per share amounts for the six months ended June 30, 1995, and 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.
11
<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 June 30,
1995, the related statements of operations for the six months then ended and of
changes in net assets for the six months then ended and for the year ended
December 31, 1994, 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 June
30, 1995 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 June 30, 1995, 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
August 4, 1995
12
<PAGE>
================================================================================
BOARD OF DIRECTORS
- --------------------------------------------------------------------------------
Fred E. Brown
Director and Consultant,
J. & W. Seligman & Co. Incorporated
John R. Galvin 2, 4
Dean, Fletcher School of Law and
Diplomacy at Tufts University
Director, USLIFE Corporation
Alice S. Ilchman 3, 4
President, Sarah Lawrence College
Trustee, Committee for Economic Development
Director, NYNEX
Chairman, The Rockefeller Foundation
Frank A. McPherson 2, 4
Chairman and CEO, Kerr-McGee Corporation
Director, Kimberly-Clark Corporation
Chairman and Director, Baptist Medical Center
John E. Merow
Partner, Sullivan & Cromwell, Law Firm
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
James C. Pitney 3, 4
Partner, Pitney, Hardin, Kipp & Szuch, Law Firm
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
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
Director, Red Man Pipe and Supply Company
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
13
<PAGE>
================================================================================
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
14
<PAGE>
SELIGMAN FINANCIAL SERVICES, INC.
an affiliate of
[JWS 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.
EQCS3b 6/95
