================================================================================
Seligman
Common Stock
Fund, Inc.
- --------------------------------------------------------------------------------
A Growth and
Income Fund
- --------------------------------------------------------------------------------
261st Quarterly Report
March 31, 1995
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[LOGO OMITTED]
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To the Shareholders
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Seligman Common Stock Fund ended the first quarter of 1995 on March 31 with the
net asset value of Class A shares at $13.07 per share, up from $12.12 on
December 31, 1994, and Class D shares at $13.02 per share, up from $12.07. Total
returns for the three months were 8.51% for Class A shares and 8.27% for Class D
shares, which compare to the 9.74% total return of the Standard & Poor's 500
Composite Stock Price Index. (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 March 24, your Fund paid an $0.08 per share dividend to Class A
shareholders of record March 16, and a $0.047 per share dividend to Class D
shareholders. For both Class A and D shares, net realized gain per share from
investment transactions for the first quarter totaled $0.43. At March 31, net
unrealized gain per share totaled $2.70. Long-term performance results appear on
page 5 of this report.
After seven short-term interest rate increases by the Federal Reserve Board
in 1994, the economy began to show signs of slowing in the first quarter of
1995. For instance, sales of previously owned homes fell to their lowest level
in two years, reflecting the delayed impact of higher interest rates on the
housing market. Retail sales were also sluggish, as consumers have backed off in
the past several months. Nevertheless, consumer confidence still remains
relatively high.
Investors, encouraged by signs of slower economic growth and by hopes of a
less stringent monetary policy, boosted financial markets in the first quarter.
The bond market bounced back from the lows experienced in late 1994, and the
stock market reached new highs, notwithstanding several negative factors
including Mexico's currency crisis, the collapse of Barings (the U.K.'s oldest
and one of its most prestigious banks), and the continual weakening of the U.S.
dollar. However, by quarter end, the plunging dollar had caused both bonds and
stocks to lose some ground.
We are optimistic that the economy will continue to expand at a moderate
pace in 1995, with inflation remaining in check. This, combined with the gradual
strengthening of the economies of U.S. trading partners, is expected to provide
a good foundation for a positive investment environment.
In your Fund, the prospect of fewer interest rate increases had a positive
impact on the portfolio's performance. Paced by the rally in the bond market
this past quarter, your Fund's financial investments performed particularly
well, followed by a strong showing from defensive sectors such as health care,
various consumer staples, and energy. The best performing issues in your
portfolio continue to be from a diversified list of stocks, such as W.R. Grace
and Corning.
In addition, your Manager focused on buying selected issues where prices
were depressed but earnings are expected to improve in 1996, such as retailers
and natural gas-related issues. Looking forward, stock selection will continue
to drive performance and benefit your Fund.
By order of the Board of Directors,
/s/ William C. Morris
William C. Morris
Chairman
/s/ Ronald T. Schroeder
Ronald T. Schroeder
President
April 28, 1995
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<TABLE>
Important Telephone Numbers
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<S> <C> <C> <C> <C> <C>
(800) 221-2450 Shareholder Services (800) 445-1777 Retirement Plan (800) 622-4597 24-Hour Automated
Services Telephone Access Service
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1
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Portfolio of Investments (unaudited) March 31, 1995
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Shares Value
------ -----
Common Stocks--86.1%
Advertising--1.0%
Omnicom Group .............................. 100,000 $ 5,475,000
------------
Aerospace/Defense--0.5%
General Motors (Class H) ................... 75,000 3,093,750
------------
Apparel and Textiles--1.3%
Liz Claiborne .............................. 150,000 2,662,500
Unifi ...................................... 175,000 4,714,063
------------
7,376,563
------------
Automotive and Related--1.4%
Autoliv (ADRs)++0 .......................... 52,500 1,991,719
Echlin ..................................... 150,000 5,775,000
------------
7,766,719
------------
Chemicals--5.9%
Air Products and Chemicals ................. 100,000 5,212,500
Bayer AG ................................... 7,600 1,869,666
Crompton & Knowles ......................... 200,000 3,350,000
Dow Chemical ............................... 125,000 9,125,000
European Vinyls0 ........................... 41,210 1,717,306
Grace (W.R.) ............................... 75,000 3,993,750
Lubrizol ................................... 100,000 3,525,000
Rohm & Haas ................................ 80,000 4,720,000
------------
33,513,222
------------
Computers and Business Services--3.0%
Digital Equipment0 ......................... 100,000 3,787,500
First Financial Management ................. 75,000 5,418,750
International Business Machines ............ 100,000 8,187,500
------------
17,393,750
------------
Consumer Goods and Services--9.0%
Allied Domecq .............................. 230,000 1,972,271
B.A.T Industries ........................... 200,000 1,423,238
Christian Dior ABSA ........................ 10,000 922,294
Coca-Cola .................................. 125,000 7,062,500
Colgate-Palmolive .......................... 100,000 6,600,000
Eastman Kodak .............................. 100,000 5,312,500
Gillette ................................... 50,000 4,081,250
International Flavors & Fragrances ......... 100,000 5,162,500
PepsiCo .................................... 150,000 5,850,000
Procter & Gamble ........................... 100,000 6,625,000
Rubbermaid ................................. 185,000 6,105,000
------------
51,116,553
------------
Drugs and Health Care--5.2%
Abbott Laboratories ........................ 150,000 5,343,750
American Home Products ..................... 50,000 3,562,500
Bard (C.R.) ................................ 150,000 4,143,750
Bausch & Lomb .............................. 75,000 2,681,250
Bristol-Myers Squibb ....................... 75,000 4,725,000
Mallinckrodt Group ......................... 100,000 3,375,000
Schering-Plough ............................ 75,000 5,578,125
------------
29,409,375
------------
Electric and Gas Utilities--3.2%
British Gas ................................ 30,000 1,395,000
Empresa Nacional de Electricidad (ADRs) .... 50,000 2,100,000
Hong Kong Electric ......................... 1,800,000 5,761,769
Huaneng Power International (ADRs)0 ........ 60,000 952,500
PacifiCorp ................................. 250,000 4,843,750
Williams Cos ............................... 100,000 3,062,500
------------
18,115,519
------------
Electronics--1.0%
Motorola ................................... 100,000 5,462,500
------------
Energy--8.6%
Anadarko Petroleum ......................... 82,000 3,587,500
Atlantic Richfield ......................... 50,000 5,750,000
Enron ...................................... 200,000 6,600,000
Mobil ...................................... 75,000 6,946,875
Panhandle Eastern .......................... 200,000 4,600,000
Pennzoil ................................... 100,000 4,737,500
Royal Dutch Petroleum ...................... 75,000 9,000,000
Schlumberger ............................... 100,000 5,962,500
Total SA (Class B) ......................... 25,000 1,489,715
------------
48,674,090
------------
Finance and Insurance--12.7%
Aetna Life & Casualty ...................... 75,000 4,275,000
Ahmanson (H.F.) ............................ 200,000 3,600,000
American International Group ............... 75,000 7,818,750
Banco de Santander (ADSs) .................. 50,000 1,749,587
Bank of New York ........................... 200,000 6,575,000
Chubb ...................................... 75,000 5,925,000
Federal National Mortgage Association ...... 70,000 5,696,250
General Re ................................. 50,000 6,600,000
Great Western Financial .................... 150,000 2,812,500
Household International .................... 75,000 3,257,813
Internationale Nederlanden Bank ............ 38,000 1,874,141
KeyCorp .................................... 125,000 3,531,250
MBNA ....................................... 200,000 5,800,000
Morgan (J.P.) .............................. 90,000 5,490,000
National Australia Bank (ADRs) ............. 50,000 2,100,000
NationsBank ................................ 100,000 5,075,000
------------
72,180,291
------------
Food--4.9%
Campbell Soup .............................. 100,000 4,837,500
2
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Shares Value
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ConAgra .................................... 150,000 $ 4,968,750
CPC International .......................... 100,000 5,412,500
General Mills .............................. 100,000 5,962,500
Sara Lee ................................... 250,000 6,531,250
------------
27,712,500
------------
Industrial Equipment--2.6%
BTR ........................................ 320,000 1,701,402
General Electric ........................... 200,000 10,825,000
Pacific Dunlop ............................. 1,100,000 2,420,704
------------
14,947,106
------------
Office Equipment--0.9%
Pitney Bowes ............................... 150,000 5,400,000
------------
Paper and Packaging--1.6%
Bowater .................................... 100,000 3,575,000
Kimberly-Clark ............................. 100,000 5,200,000
Pechiney International ..................... 24,000 581,425
------------
9,356,425
------------
Printing and Publishing--2.4%
Donnelley (R.R.) ........................... 100,000 3,437,500
Elsevier ................................... 180,000 1,889,825
Knight-Ridder Newspapers ................... 100,000 5,650,000
Tribune .................................... 50,000 2,762,500
------------
13,739,825
------------
Restaurant--0.6%
Wendy's International ...................... 200,000 3,275,000
------------
Retail Trade--6.6%
American Stores ............................ 200,000 5,125,000
Dillard Department Stores .................. 100,000 2,762,500
Kmart ...................................... 300,000 4,125,000
Limited .................................... 150,000 3,468,750
May Department Stores ...................... 175,000 6,475,000
Nordstrom .................................. 125,000 5,062,500
Sears, Roebuck ............................. 100,000 5,337,500
Wal-Mart ................................... 200,000 5,100,000
------------
37,456,250
------------
Technology--0.3%
Cray Research .............................. 100,000 1,837,500
------------
Telecommunications--4.3%
Alcatel Alsthom ............................ 17,000 1,534,344
ALLTEL ..................................... 250,000 7,187,500
American Telephone & Telegraph ............. 100,000 5,175,000
Indosat (ADSs)0 ............................ 13,100 461,775
Pacific Telesis ............................ 180,000 5,445,000
Tele Danmark (ADSs) ........................ 70,000 1,855,000
Shares or
Prin. Amt.
-----------
Telecom Italia ............................. 585,000 shs. 1,084,474
Telefonica de Espana (ADSs) ................ 30,000 1,106,250
Telefonos de Mexico, S.A. (ADRs) ........... 15,000 427,500
------------
24,276,843
------------
Telephone Utilities--1.0%
NYNEX ...................................... 150,000 5,943,750
------------
Tobacco--2.2%
Philip Morris .............................. 100,000 6,525,000
UST Inc. ................................... 200,000 6,350,000
------------
12,875,000
------------
Transportation--2.2%
British Airways (ADRs) ..................... 35,000 2,222,500
Conrail .................................... 50,000 2,806,250
Jurong Shipyard ............................ 150,000 1,284,501
Roadway Services ........................... 125,000 6,000,000
------------
12,313,251
------------
Miscellaneous/Diversified--3.7%
Corning (Delaware) ......................... 200,000 7,200,000
Dover ...................................... 50,000 3,237,500
Hopewell Holdings .......................... 5,000,000 3,524,314
Minnesota Mining & Manufacturing ........... 100,000 5,812,500
Semi-Tech (Global) ......................... 708,000 1,176,643
------------
20,950,957
------------
Total Common Stocks
(Cost $374,950,521) ..................... 489,661,739
------------
Convertible Bonds--6.7%
Biotechnology--0.3%
Genzyme 63/4%, 10/1/2001++ ................ $ 2,000,000 1,917,500
------------
Insurance--0.7%
AXA 6%, 1/1/2001 ........................... 4,497,500= 1,037,822
Horace Mann 4%, 12/1/1999 .................. 2,000,000 1,865,000
Liberty Life International
61/2%, 9/30/2004 ........................ 1,000,000 1,072,500
------------
3,975,322
------------
Leisure and Related--0.3%
Bell Sports 41/4%, 11/15/2000 .............. 2,500,000 1,818,750
------------
Retail Trade--0.8%
Big B 61/2%, 3/15/2003 ..................... 2,000,000 2,365,000
Price 63/4%, 3/1/2001 ...................... 2,000,000 1,932,500
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4,297,500
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3
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Prin. Amt.
Shares Value
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Technology--2.2%
Bay Networks 51/4%, 5/15/2003++ ............ $ 6,000,000 $ 5,070,000
Conner Peripherals 61/2%,
3/1/2002 ................................ 2,000,000 1,542,500
Data General 73/4%, 6/1/2001 ............... 3,000,000 2,490,000
EMC 41/4%, 1/1/2001 ........................ 3,000,000 3,127,500
------------
12,230,000
------------
Transportation--0.3%
Nippon Yusen 2%, 9/29/2000 ................. 140,000,000* 1,649,434
------------
Miscellaneous/Diversified--2.1%
Land & General Berhad
4 1/2%, 7/26/2004 ....................... 1,000,000 1,232,500
MascoTech 41/2%, 12/15/2003 ................ 3,000,000 2,077,500
Thermo Electron 5%, 4/15/2001++ ............ 3,000,000 3,495,000
TNT Finance 9%, 7/27/1998 .................. 5,000,000+ 3,298,200
TriMas 5%, 8/1/2003 ........................ 2,000,000 2,090,000
------------
12,193,200
------------
Total Convertible Bonds
(Cost $37,741,745) ........................................ 38,081,706
------------
Convertible Preferred Stocks--5.3%
Banking and Finance--1.1%
Citicorp $5.375++ .......................... 50,000 shs. 5,887,500
------------
Basic Minerals--0.5%
Freeport-McMoRan $4.375++ .................. 55,000 2,798,125
------------
Drugs and Health Care--0.6%
Beverly Enterprises $2.75 .................. 60,000 3,450,000
------------
Insurance--0.8%
Alexander & Alexander (Series A)
$3.625++ ................................ 100,000 4,525,000
------------
Technology--0.7%
Unisys $3.75 ............................... 100,000 3,887,500
Telecommunications--0.6%
Mobile Telecommunications
Technology $2.25++ ...................... 75,000 2,343,750
Nacional Financiera 111/4% ................. 40,000 1,200,000
------------
3,543,750
------------
Transportation--1.0%
GATX $3.875 ................................ 70,000 3,815,000
Sea Containers $4.00 ....................... 50,000 2,075,000
------------
5,890,000
------------
Total Convertible Preferred Stocks
(Cost $27,546,263) ...................... 29,981,875
------------
Short-Term Holdings--1.1%
(Cost $6,355,000) ....................... 6,355,000
------------
Total Investments--99.2%
(Cost $446,593,529) ..................... 564,080,320
Other Assets
Less Liabilities--0.8% .................. 4,429,127
------------
Net Assets--100.0% ......................... $568,509,447
============
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* Principal amount reported in Japanese yen.
+ Principal amount reported in Australian dollars.
= Principal amount reported in French francs.
0 Non-income producing security.
++ Rule 144A security.
Note: Investments in common stocks and convertible securities are valued at
current market value 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.
4
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Seligman Common Stock Fund
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Long-Term Investment Results
Average Annual Total Returns
March 31, 1995
Class A*
One Five Ten
Year Years Years
----- ------ --------
With Sales Charge 6.37% 10.24% 12.89%
Without Sales Charge 11.70 11.32 13.44
Class D**
Since
One Inception
Year 5/3/93
------ ---------
With CDSL 9.43% n/a
Without CDSL 10.43 7.24%
*The maximum initial sales charge for Class Ashares is 4.75%. 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 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.
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Major Portfolio Holdings
at March 31, 1995
Security Value
- -------- -----------
General Electric ........................... $10,825,000
Dow Chemical ............................... 9,125,000
Royal Dutch Petroleum ...................... 9,000,000
International Business Machines ............ 8,187,500
American International Group ............... 7,818,750
Corning .................................... 7,200,000
ALLTEL ..................................... 7,187,500
Coca-Cola .................................. 7,062,500
Mobil ...................................... 6,946,875
Procter & Gamble ........................... 6,625,000
Largest Portfolio Changes+
During Past Three Months
Shares
---------------------
Holdings
Additions Increase 3/31/95
- --------- -------- ---------
Common Stocks
American Stores ................... 200,000 200,000
Anadarko Petroleum ................ 82,000 82,000
Bard (C.R.) ....................... 150,000 150,000
Donnelley (R.R.) .................. 100,000 100,000
Federal National Mortgage Association 70,000 70,000
May Department Stores ............. 175,000 175,000
NYNEX ............................. 150,000 150,000
Pacific Telesis ................... 180,000 180,000
Panhandle Eastern ................. 200,000 200,000
Sears, Roebuck .................... 100,000 100,000
Holdings
Reductions Decrease 3/31/95
- --------- -------- ---------
Common Stocks
Federal Paper Board ............... 150,000 --
General Re ........................ 25,000 50,000
Grace (W.R.) ...................... 75,000 75,000
Hutchison Whampoa (ADRs) .......... 200,000 --
Mercantile Stores ................. 75,000 --
Parker-Hannifin ................... 100,000 --
PNC Bank .......................... 150,000 --
Student Loan Marketing Association 100,000 --
Union Camp ........................ 100,000 --
U.S. Shoe ......................... 200,000 --
- -----------
+ Largest portfolio changes from previous quarter to current quarter are based
on cost of purchases and proceeds from sales of securities.
5
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SELIGMAN FINANCIAL SERVICES, INC.
an affiliate of
[LOGO OMITTED]
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.
EQCS3a 3/95
