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.
EQCS3B 6/96
- --------------------------------------------------------------------------------
MID-YEAR REPORT
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SELIGMAN
COMMON STOCK
FUND, INC.
- --------------------------------------------------------------------------------
JUNE 30, 1996
[LOGO]
- --------------------------------------------------------------------------------
A GROWTH AND INCOME FUND
ESTABLISHED IN 1930
<PAGE>
================================================================================
TO THE SHAREHOLDERS
- --------------------------------------------------------------------------------
Seligman Common Stock Fund modestly lagged the Standard & Poor's 500
Composite Stock Price Index (S&P 500) for the three months ended June 30, 1996.
In mid-July, the Fund, along with most equity investors, was affected by the
fluctuations in the equity markets and gave back some of its second quarter
gains.
In the first half of 1996, the Federal Reserve Board's continuing efforts to
achieve a "soft landing" -- a healthy moderation of economic growth that does
not slip into recession -- appeared to have come to fruition. Economic data for
the second quarter of 1996 indicated continued growth in output, employment, and
incomes. More than half the early corporate earnings reports reflected the
positive effects of the strong economy, and earnings estimates rose to higher
levels. Inflation remained low and, more important, commodity price indices
declined from their recent eight-year highs, which suggested that future
inflationary pressures were in check. Overall, the economy seemed quite healthy
at the end of the second quarter.
While fundamentals remained strong, a mid-July sell-off in the equity markets
was triggered by disappointing earnings reports from several important
technology and health care companies. This led to an overall negative assessment
that other corporate profits would fall short of expectations and economic
growth would slow, causing future earnings disappointments. A broad decline in
equity prices ensued, which was aggravated by uncertainty over the future
direction of interest rates. This culminated on July 15, when the price of five
out of six companies on the New York Stock Exchange declined.
Although the speed of such an event can unnerve even the most seasoned
investor, it is the very nature of equity markets to fluctuate over short
periods of time. Periodic corrections in stock market prices are an integral
part of US financial history -- the last significant correction in the S&P 500
was triggered by the start of the Gulf War in 1990. While viewpoints differ over
the likely direction of financial markets and the economy over the next year, we
believe that the longer-term outlook for the US economy and the equity markets
remains sound.
We therefore must reiterate the importance of long-term investing. Since the
ups and downs of the market are unavoidable, it benefits you, our Shareholders,
to adopt a long-term investment plan whenever possible. Time is a powerful
investment tool that succeeds where market timing often fails. If you invest
over the long term, short-term market swings, while uncomfortable, have less of
an impact on your overall financial goals. As investors, you have already taken
steps to reduce your overall risk by purchasing shares of a mutual fund, which
provides portfolio diversification by investing in numerous issues and
industries.
With the help of your investment advisor, you can formulate a long-term
investment strategy that further reduces your risk, increases your
diversification, and allows you to benefit from the advantages of mutual fund
investments.
For specific performance information and a discussion with your Portfolio
Manager about the second quarter of 1996, please refer to page 2.
By order of the Board of Directors,
/S/ William C. Morris
- -------------------------
William C. Morris
Chairman
/s/ Brian T. Zino
-------------------
Brian T. Zino
President
July 31, 1996
1
<PAGE>
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INTERVIEW WITH YOUR PORTFOLIO MANAGER
- --------------------------------------------------------------------------------
CHARLES C. SMITH, JR.
HOW DID SELIGMAN COMMON STOCK FUND PERFORM IN THE PAST THREE MONTHS?
Seligman Common Stock Fund modestly lagged the Standard & Poor's 500 Composite
Stock Price Index (S&P 500) in the second quarter. However, we continued to
maintain a very attractive yield that is significantly above the average yield
of the GROWTH AND INCOME FUNDS universe as measured by Lipper Analytical
Services, a prominent mutual fund ranking service.
WHAT ECONOMIC FACTORS INFLUENCED THE FUND IN THE PAST THREE MONTHS?
In the second quarter, the rise in long-term interest rates negatively affected
the interest rate-sensitive issues in the portfolio. In the equity markets, the
economy's continued strength led to a general improvement in corporate profits
which in turn increased the value of most of the Fund's holdings.
WHAT MARKET TRENDS AFFECTED THE FUND IN THE QUARTER?
In general, there were two identifiable trends in the equity markets. First, the
economy's changing strength created an irregular market as participants moved
among investment categories and asset classes, trying to anticipate the Federal
Reserve Board's next move. Second, investor preference for small-capitalized
issues (which generally don't distribute dividends), in lieu of
larger-capitalized issues (which generally do), became more pronounced.
Therefore, the NASDAQ Composite Index, which is composed mostly of small
companies, led the market indices, and the S&P 500, which contains a mixture of
capitalization sizes, outperformed the blue chips of the Dow Jones Industrial
Average (DJIA). Seligman Common Stock Fund, which is invested in larger
companies, outpaced the DJIA but fell behind the S&P 500.
The international portion of the portfolio also weakened the Fund's quarterly
return. International holdings increase diversification, provide strong
alternatives to weak US industries, and reduce risk. However, in the second
quarter, international equity markets lagged the US markets.
WHAT INDUSTRIES, SPECIFICALLY, PERFORMED WELL WITHIN THE PORTFOLIO?
The strength of the consumer sector in the past quarter improved Seligman Common
Stock Fund's performance, as both consumer staples and certain consumer
cyclicals did well. The consumer staples area, with its stable earnings and
dividend history, offered refuge to those market participants who were concerned
that the economy would weaken in the second half of the year. Therefore,
personal care stocks such as Gillette and Colgate-Palmolive had a very strong
second quarter, as did food and beverage retailers including Campbell Soup,
Coca-Cola, and PepsiCo.
Other market participants embraced the influence of economic growth, and
chose to take advantage of the improved performance of certain consumer
cyclicals. In this category, previously depressed discount retailers such as
Wal-Mart and Woolworth had a particularly strong quarter. Woolworth's
performance can also be attributed to its new management's restructuring
efforts, which have started to reward shareholders. Finally, energy and health
care rounded out the stronger performers in the portfolio.
2
<PAGE>
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WHAT INDUSTRIES PERFORMED POORLY WITHIN THE PORTFOLIO?
Financial issues, which are interest rate-sensitive, had a weak quarter.
Strategically, we shifted our financial holdings to more broadly diversified
stocks, such as Mellon Bank and Bank of New York. These companies' businesses
are not primarily dependent on lending, and therefore should buffer the
portfolio from further interest rate erosion. Otherwise, the portfolio's
holdings should benefit from any future decrease in interest rates.
WHAT IS YOUR OUTLOOK FOR THE FUND?
Investor uncertainty will most likely endure, as the Fed may be reluctant to
intervene during an election year. Over the next year, Seligman Common Stock
Fund is positioned to capitalize on interest rate reductions which may occur if
the economy slows. The portfolio continues to have long-term investment
strength, as common stocks have historically outperformed fixed-income
securities. Additionally, a combination of increased public awareness of the
potential long-term returns associated with stocks, and the baby-boomers' need
to save for retirement, should continue to fuel the equity markets. Our strategy
will continue to focus on individual stock selection, seeking companies in all
industry groups with solid fundamentals, attractive valuations, and good
long-term earnings growth. If anything, the sell-offs in the equity markets at
the end of the second quarter and the beginning of the third quarter could mark
the start of a flight to quality which would benefit Seligman Common Stock Fund.
3
<PAGE>
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SELIGMAN COMMON STOCK FUND, INC.
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INVESTMENT RESULTS
TOTAL RETURNS*
FOR PERIODS ENDED JUNE 30, 1996
<TABLE>
<CAPTION>
AVERAGE ANNUAL
-------------------------------------------------------
CLASS B CLASS D
SINCE SINCE
INCEPTION THREE SIX ONE FIVE 10 INCEPTION
4/22/96 MONTHS MONTHS YEAR YEARS YEARS 5/3/93
--------- ------ ------ ---- ----- ----- ---------
CLASS A
<S> <C> <C> <C> <C> <C> <C> <C>
With Sales Charge n/a (1.37)% 3.62% 14.15% 13.59% 10.92% n/a
Without Sales Charge n/a 3.55 8.79 19.81 14.70 11.46 n/a
CLASS B
With 5% CDSL (1.74)% n/a n/a n/a n/a n/a n/a
Without CDSL 3.26 n/a n/a n/a n/a n/a n/a
CLASS D
With 1% CDSL n/a 2.27 7.35 17.81 n/a n/a n/a
Without CDSL n/a 3.27 8.35 18.81 n/a n/a 12.58%
S&P 500** 2.97++ 4.49 10.10 26.00 15.73 13.79 17.32+
</TABLE>
NET ASSET VALUE PER SHARE
<TABLE>
<CAPTION>
JUNE 30, 1996 MARCH 31, 1996 DECEMBER 31, 1995
------------- -------------- -----------------
<S> <C> <C> <C>
CLASS A $14.97 $14.83 $14.19
CLASS B 14.93 14.80+++ n/a
CLASS D 14.93 14.80 14.16
</TABLE>
DIVIDENDS AND CAPITAL GAIN INFORMATION
FOR THE SIX MONTHS ENDED JUNE 30, 1996
<TABLE>
<CAPTION>
CAPITAL GAIN
--------------------------------
DIVIDENDS PAID CAPITAL GAINS PAID REALIZED UNREALIZED0
---------------- ---------------------- ---------- ---------------
<S> <C> <C> <C> <C>
CLASS A $0.170 $0.292 $0.629 $4.142
CLASS B 0.058*** 0.292 0.629 4.142
CLASS D 0.115 0.292 0.629 4.142
</TABLE>
* Return figures reflect any change in price per share and assume the
reinvestment of dividends and capital gain distributions. Return figures for
Class A shares are calculated without and with the effect of the initial
4.75% maximum sales charge. Class A share returns reflect the effect of the
0.25% Administration, Shareholder Services and Distribution Plan after
January 1, 1993, only. Returns for Class B shares are calculated without and
with the effect of the maximum 5% contingent deferred sales load ("CDSL"),
charged only on certain redemptions made within one year of the date of
purchase, declining to 1% in the sixth year and 0% thereafter. Returns for
Class D shares are calculated without and with the effect of the 1% CDSL,
charged only on redemptions made within one year of the date of purchase.
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.
** The S&P 500 is an unmanaged index that assumes reinvestment of estimated
dividends, and does not reflect fees and expenses. Investors may not invest
directly in an index.
*** For the period April 22, 1996, to June 30, 1996.
+ From April 30, 1993.
++ From April 30, 1996.
+++ As of April 22, 1996.
0 Represents the per share amount of net unrealized appreciation of
portfolio securities as of June 30, 1996.
4
<PAGE>
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SELIGMAN COMMON STOCK FUND, INC.
- --------------------------------------------------------------------------------
LARGEST PORTFOLIO CHANGES
DURING PAST THREE MONTHS
SHARES
--------------------
HOLDINGS
ADDITIONS INCREASE 6/30/96
- --------- -------- --------
Common Stocks
Baxter International.......... 80,000 80,000
CINergy....................... 300,000 300,000
Edison International.......... 200,000 400,000
Entergy....................... 150,000 150,000
First Brands.................. 200,000 200,000
Fleet Financial Group......... 150,000 150,000
McDonald's.................... 80,000 80,000
Mellon Bank................... 70,000 70,000
Sysco......................... 100,000 100,000
CONVERTIBLE PREFERRED STOCKS
Kmart Financing 7 3/4%........ 60,000 60,000
HOLDINGS
REDUCTIONS DECREASE 6/30/96
- ---------- -------- --------
Bausch & Lomb................. 100,000 --
Central & South West.......... 200,000 --
CoreStates Financial.......... 150,000 --
Crompton & Knowles............ 200,000 --
Dillard Department Stores..... 100,000 --
Kmart......................... 300,000 --
Morgan (J.P.)................. 90,000 --
Nordstrom..................... 75,000 --
Schweitzer-Mauduit International 105,000 140,000
Southern Company.............. 150,000 --
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 JUNE 30, 1996
SECURITY VALUE
- -------- ----------
General Electric........................ $12,975,000
Royal Dutch Petroleum................... 9,993,750
American International Group............ 9,862,500
CINergy................................. 9,600,000
Schering-Plough......................... 9,412,500
Omnicom Group........................... 9,300,000
Procter & Gamble........................ 9,062,500
PepsiCo................................. 8,843,750
Colgate-Palmolive....................... 8,475,000
Sara Lee................................ 8,093,750
<PAGE>
GROWTH OF AN ASSUMED $10,000 INVESTMENT IN CLASS A
JUNE 30, 1986, TO JUNE 30, 1996
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED REPORT]
1986 9,527 (Initial Net Asset Value)
1986 8,726
1986 9,270
1987 10,998
1987 11,154
1987 11,603
1987 9,290
1988 9,757
1988 10,265
1988 10,163
1988 10,226
1989 10,816
1989 11,444
1989 12,568
1989 12,964
1990 12,838
1990 13,639
1990 11,260
1990 12,460
1991 14,505
1991 14,209
1991 15,306
1991 16,189
1992 16,460
1992 16,578
1992 17,024
1992 17,948
1993 18,819
1993 19,271
1993 19,756
1993 20,614
1994 19,646
1994 19,750
1994 20,526
1994 20,224
1995 21,945
1995 23,541
1995 25,029
1995 25,921
1996 27,236
1996 28,203 (Total Value at June 30, 1996
The performance of Class B and Class D shares will be greater or less than the
performance shown for Class A shares, based on the differences in sales charges
and fees paid by shareholders and the length of the holding period.
PORTFOLIO COMPOSITION
At June 30, 1996
[THE FOLLOWING TABLE REPRESENTS A PIE CHART IN THE PRINTED REPORT]
Common Stocks .......................... 88.2%
Convertible Bonds ...................... 6.7%
Convertible Preferred Stocks ........... 2.6%
Short-term Holdings .................... 2.5%
5
<PAGE>
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PORTFOLIO OF INVESTMENTS
- --------------------------------------------------------------------------------
SHARES VALUE
------ -----
COMMON STOCKS 86.9%
ADVERTISING 1.3%
Omnicom Group ............... 200,000 $ 9,300,000
------------
AEROSPACE/DEFENSE 2.1%
General Dynamics............. 50,000 3,100,000
General Motors (Class H)..... 75,000 4,509,375
United Technologies.......... 60,000 6,900,000
------------
14,509,375
------------
APPAREL AND TEXTILES 1.4%
Liz Claiborne................ 150,000 5,193,750
Unifi........................ 175,000 4,921,875
------------
10,115,625
------------
AUTOMOTIVE AND
RELATED 1.9%
Autoliv (ADRs)*+............. 40,000 1,200,000
Echlin....................... 200,000 7,575,000
Genuine Parts................ 100,000 4,575,000
------------
13,350,000
------------
CHEMICALS 2.2%
Bayer........................ 76,000 2,670,210
Dow Chemical................. 100,000 7,600,000
European Vinyls.............. 45,300 1,404,774
Olin......................... 40,000 3,570,000
------------
15,244,984
------------
CONSTRUCTION 0.7%
Sherwin-Williams............. 100,000 4,650,000
------------
CONSUMER GOODS AND
SERVICES 9.2%
Adidas....................... 13,646 1,134,816
Allied Domecq................ 230,000 1,612,940
Christian Dior-ABSA.......... 10,000 1,300,050
Coca-Cola.................... 150,000 7,331,250
Colgate-Palmolive............ 100,000 8,475,000
Eastman Kodak................ 100,000 7,775,000
First Brands................. 200,000 5,400,000
Gillette..................... 50,000 3,118,750
International Flavors &
Fragrances ................ 100,000 4,762,500
PepsiCo...................... 250,000 8,843,750
Procter & Gamble............. 100,000 9,062,500
Rubbermaid................... 185,000 5,041,250
------------
63,857,806
------------
DRUGS AND
HEALTH CARE 4.7%
Abbott Laboratories.......... 75,000 3,262,500
American Home Products....... 60,000 3,607,500
Bard (C.R.).................. 150,000 5,100,000
Baxter International......... 80,000 3,780,000
Bristol-Myers Squibb......... 40,000 3,600,000
Mallinckrodt Group........... 100,000 3,887,500
Schering-Plough.............. 150,000 9,412,500
------------
32,650,000
------------
ELECTRIC AND
GAS UTILITIES 6.1%
Carolina Power and Light..... 200,000 7,600,000
Edison International......... 400,000 7,050,000
Empresa Nacional de Electricidad
(ADRs).................... 50,000 3,131,250
Entergy...................... 150,000 4,256,250
FPL Group.................... 160,000 7,360,000
Hong Kong Electric........... 1,800,000 5,487,876
VEBA......................... 45,000 2,388,544
Williams Cos................. 100,000 4,950,000
------------
42,223,920
------------
ELECTRONICS 0.9%
Motorola..................... 100,000 6,287,500
------------
ENERGY 9.1%
Anadarko Petroleum........... 100,000 5,800,000
Atlantic Richfield........... 50,000 5,925,000
CINergy...................... 300,000 9,600,000
Enron........................ 150,000 6,131,250
Mobil........................ 50,000 5,606,250
PanEnergy.................... 200,000 6,575,000
Royal Dutch Petroleum........ 65,000 9,993,750
Schlumberger................. 75,000 6,318,750
Texaco....................... 70,000 5,871,250
Total S.A. (Class B)......... 15,000 1,111,251
------------
62,932,501
------------
ENVIRONMENTAL
SERVICES 0.4%
Browning-Ferris Industries... 100,000 2,900,000
------------
FINANCE AND
INSURANCE 12.4%
Ahmanson (H.F.).............. 150,000 4,050,000
American International Group. 100,000 9,862,500
Aon.......................... 100,000 5,075,000
AXA.......................... 20,051 1,095,604
Banco de Santander (ADSs).... 50,000 2,330,203
Bank of New York............. 150,000 7,687,500
Bankers Trust................ 100,000 7,387,500
Citicorp..................... 50,000 4,131,250
Federal National Mortgage
Association............... 200,000 6,700,000
Fleet Financial Group ....... 150,000 6,525,000
- -------------
See footnotes on page 9.
6
<PAGE>
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June 30, 1996
- --------------------------------------------------------------------------------
SHARES VALUE
------ -----
FINANCE AND INSURANCE (continued)
General Re................... 50,000 $ 7,612,500
Great Western Financial...... 150,000 3,581,250
Grupo Financiero Banamex
Accival (Class B)......... 551,000 1,147,765
Household International...... 50,000 3,800,000
HSBC Holdings................ 50,000 755,746
ING Groep.................... 99,112 2,951,730
Irish Life................... 250,000 989,081
Mellon Bank.................. 70,000 3,990,000
National Australia Bank (ADRs) 50,000 2,318,750
St. Paul Companies........... 60,000 3,210,000
Societe Generale............. 9,328 1,024,448
------------
86,225,827
------------
FOOD 5.6%
Campbell Soup................ 100,000 7,050,000
ConAgra...................... 150,000 6,806,250
CPC International............ 100,000 7,200,000
General Mills................ 100,000 5,450,000
Sara Lee..................... 250,000 8,093,750
Sysco........................ 100,000 3,425,000
Tesco........................ 184,600 842,036
------------
38,867,036
------------
INDUSTRIAL EQUIPMENT 4.0%
AMP.......................... 50,000 2,006,250
BTR.......................... 320,000 1,258,577
Cooper Industries............ 75,000 3,112,500
Emerson Electric............. 50,000 4,518,750
General Electric............. 150,000 12,975,000
Mannesmann................... 4,000 1,375,193
Pacific Dunlop............... 1,100,000 2,476,059
------------
27,722,329
------------
LEISURE AND
ENTERTAINMENT 0.2%
Mandarin Oriental............ 300,000 420,000
Television Broadcast......... 300,000 1,125,867
------------
1,545,867
------------
METALS AND MINING 0.4%
Reynolds Metals.............. 50,000 2,606,250
------------
OFFICE EQUIPMENT 1.0%
Pitney Bowes................. 150,000 7,162,500
------------
PAPER AND
PACKAGING 1.6%
International Paper.......... 175,000 6,453,125
Kimberly-Clark............... 50,000 3,862,500
Stora Kopparbergs (Class B).. 80,000 1,054,392
------------
11,370,017
------------
PRINTING AND
PUBLISHING 3.0%
Donnelley (R.R.)............. 100,000 3,487,500
Elsevier..................... 130,000 1,970,043
Knight-Ridder Newspapers..... 100,000 7,250,000
Reader's Digest (Class A).... 100,000 4,250,000
Tribune...................... 50,000 3,631,250
------------
20,588,793
------------
RESTAURANTS 0.9%
McDonald's................... 80,000 3,740,000
Wendy's International........ 120,000 2,235,000
------------
5,975,000
------------
RETAIL TRADE 3.6%
American Stores.............. 171,000 7,053,750
May Department Stores........ 100,000 4,375,000
Sears, Roebuck............... 100,000 4,862,500
Wal-Mart..................... 200,000 5,075,000
Woolworth.................... 175,000 3,937,500
------------
25,303,750
------------
STEEL 0.6%
Nucor........................ 60,000 3,037,500
Pohang Iron & Steel (ADRs)... 40,000 975,000
------------
4,012,500
------------
TECHNOLOGY 0.1%
Olivetti..................... 1,700,000 916,158
------------
TELECOMMUNICATIONS 2.0%
Alcatel Alsthom.............. 17,000 1,481,086
American Telephone & Telegraph 75,000 4,650,000
Frontier..................... 150,000 4,593,750
Indosat (ADRs)............... 13,100 438,850
Tele Danmark (ADSs).......... 70,000 1,776,250
Telecom Italia-Di Risp....... 585,000 796,743
------------
13,736,679
------------
TELEPHONE UTILITIES 3.6%
ALLTEL....................... 250,000 7,687,500
NYNEX........................ 150,000 7,125,000
SBC Communications........... 75,000 3,693,750
U.S. West.................... 200,000 6,375,000
------------
24,881,250
------------
- -------------
See footnotes on page 9.
7
<PAGE>
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PORTFOLIO OF INVESTMENTS (continued)
- --------------------------------------------------------------------------------
SHARES OR
PRIN. AMT. VALUE
---------- -----
TOBACCO 2.9%
B.A.T. Industries............ 200,000shs. $ 1,554,603
Philip Morris................ 75,000 7,800,000
Schweitzer-Mauduit International 140,000 3,937,500
UST Inc...................... 200,000 6,850,000
------------
20,142,103
------------
TRANSPORTATION 1.4%
British Airways (ADRs)....... 21,000 1,764,000
Caliber Systems.............. 108,400 3,685,600
Conrail...................... 50,000 3,318,750
Jurong Shipyard.............. 150,000 759,992
------------
9,528,342
------------
MISCELLANEOUS/
DIVERSIFIED 3.6%
Corning (Delaware)........... 200,000 7,675,000
General Signal............... 200,000 7,575,000
Minnesota Mining
& Manufacturing........... 50,000 3,450,000
Tenneco...................... 119,500 6,109,438
------------
24,809,438
------------
TOTAL COMMON STOCKS
(COST $416,590,900) ..... 603,415,550
------------
CONVERTIBLE BONDS 6.7%
AUTOMOTIVE AND
RELATED 0.4%
Exide 2.90%, 12/15/2005+..... $4,500,000 2,503,125
INSURANCE 0.3%
Finance One 2%, 8/31/2001.... 750,000 742,500
Liblife International
6 1/2%, 9/30/2004 ........ 1,000,000 1,377,500
------------
2,120,000
------------
LEISURE AND RELATED 0.3%
Bell Sports 4 1/4%,
11/15/2000 ................ 2,500,000 1,881,250
------------
RETAIL TRADE 1.3%
Big B 6 1/2%, 3/15/2003...... 2,000,000 1,925,000
The Pep Boys
4%, 9/1/2001.............. 5,000,000 5,156,250
Price 6 3/4%, 3/1/2001....... 2,000,000 2,142,500
------------
9,223,750
------------
TECHNOLOGY 1.9%
Bay Networks
5 1/4%, 5/15/2003+........ $3,500,000 3,198,125
Conner Peripherals
6 1/2%, 3/1/2002.......... 2,000,000 2,090,000
Data General
7 3/4%, 6/1/2001.......... 3,000,000 2,940,000
EMC 4 1/4%, 1/1/2001......... 3,000,000 3,232,500
Xilinx 5 1/4%, 11/1/2002+.... 2,000,000 1,830,000
------------
13,290,625
------------
TRANSPORTATION 0.2%
Nippon Yusen
2%, 9/29/2000.............140,000,000** 1,558,039
------------
MISCELLANEOUS/
DIVERSIFIED 2.3%
MascoTech
4 1/2%, 12/15/2003........ $3,000,000 2,385,000
Teco Electric & Machinery
2 3/4%, 4/15/2004......... 1,500,000 1,293,750
Thermo Electron
5%, 4/15/2001+............ 3,000,000 5,771,250
TNT Pacific Finance
9%, 7/27/1998............. 5,000,000++ 3,836,869
TriMas 5%, 8/1/2003.......... $2,000,000 2,285,000
------------
15,571,869
------------
TOTAL CONVERTIBLE BONDS
(COST $41,361,285) ....... 46,148,658
------------
CONVERTIBLE
PREFERRED STOCKS 2.6%
INSURANCE 0.7%
Alexander & Alexander
(Series A) $3.625+........ 100,000 shs. 4,700,000
------------
PAPER 0.2%
International Paper $4.00+... 40,000 1,740,000
------------
RETAIL TRADE 0.5%
Kmart Financing 7 3/4%....... 60,000 3,255,000
------------
TELECOMMUNICATIONS 0.3%
Mobile Telecommunication
Technologies $2.25+....... 75,000 1,865,625
------------
- ------------
See footnotes on page 9.
8
<PAGE>
================================================================================
June 30, 1996
- --------------------------------------------------------------------------------
SHARES VALUE
------ -----
TRANSPORTATION 0.9%
GATX $3.875.................. 70,000 $ 4,077,500
Sea Containers $4.00......... 50,000 2,350,000
------------
6,427,500
------------
TOTAL CONVERTIBLE
PREFERRED STOCKS
(Cost $17,387,452) ....... 17,988,125
------------
SHORT-TERM HOLDINGS 2.4%.....
(Cost $16,900,000) ......... 16,900,000
------------
TOTAL INVESTMENTS 98.6%
(COST $492,239,637) ........ 684,452,333
OTHER ASSETS LESS
LIABILITIES 1.4% ........ 9,875,302
------------
NET ASSETS 100.0% ......... $694,327,635
============
- -------------
* Non-income producing security.
** Principal amount reported in Japanese yen.
+ Rule 144A security.
++ Principal amount reported in Australian dollars.
See notes to financial statements.
9
<PAGE>
================================================================================
STATEMENT OF ASSETS AND LIABILITIES June 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Investments, at value:
Common stocks and convertible securities (cost $475,339,637)............. $667,552,333
Short-term holdings (cost $16,900,000)................................... 16,900,000 $684,452,333
------------
Cash....................................................................... 1,100,778
Receivable for securities sold............................................. 8,871,648
Receivable for dividends and interest...................................... 2,530,031
Receivable for Capital Stock sold.......................................... 845,493
Investment in, and expenses prepaid to, shareholder service agent.......... 115,806
Other...................................................................... 144,317
------------
Total Assets .............................................................. 698,060,406
------------
LIABILITIES:
Payable for securities purchased........................................... 2,028,000
Payable for Capital Stock repurchased...................................... 567,349
Unrealized depreciation on foreign currency contract....................... 5
Accrued expenses, taxes, and other......................................... 1,137,417
------------
Total Liabilities ......................................................... 3,732,771
------------
Net Assets ............................................................... $694,327,635
============
COMPOSITION OF NET ASSETS:
Capital Stock, at par ($0.50 par value; 500,000,000 shares authorized;
46,403,678 shares outstanding):
Class A.................................................................. $ 21,263,453
Class B.................................................................. 46,232
Class D.................................................................. 1,892,154
Additional paid-in capital................................................. 449,142,738
Undistributed net investment income........................................ 615,663
Undistributed net realized gain............................................ 29,145,913
Net unrealized appreciation of investments................................. 191,690,918
Net unrealized appreciation on translation of assets and liabilities
denominated in foreign currencies ....................................... 530,564
------------
Net Assets ................................................................ $694,327,635
============
NET ASSET VALUE PER SHARE:
CLASS A ($636,448,735 / 42,526,907 SHARES) ................................ $14.97
======
CLASS B ($1,380,486 / 92,464 SHARES) ..................................... $14.93
======
CLASS D ($56,498,414 / 3,784,307 SHARES) .................................. $14.93
======
- ------------
See notes to financial statements.
</TABLE>
10
<PAGE>
================================================================================
STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Dividends.................................................................. $ 9,741,460
Interest................................................................... 2,136,351
Other income............................................................... 28,722
------------
Total investment income (net of foreign taxes withheld of $132,727)........ $11,906,533
EXPENSES:
Management fee............................................................. 2,228,148
Distribution and service fees.............................................. 991,615
Shareholder account services............................................... 538,006
Custody and related services............................................... 119,969
Shareholder reports and communications..................................... 75,983
Registration............................................................... 66,232
Auditing and legal fees.................................................... 42,666
Directors' fees and expenses............................................... 19,004
Shareholders' meeting...................................................... 13,335
Miscellaneous.............................................................. 36,215
------------
Total expenses............................................................. 4,131,173
-----------
NET INVESTMENT INCOME .................................................... 7,775,360
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain on investments........................................... 29,287,734
Net realized loss from foreign currency transactions....................... (92,049)
Net change in unrealized appreciation of investments....................... 21,000,818
Net change in unrealized appreciation on translation of assets
and liabilities denominated in foreign currencies...................... (509,632)
------------
NET GAIN ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS ................. 49,686,871
-----------
INCREASE IN NET ASSETS FROM OPERATIONS .................................... $57,462,231
===========
</TABLE>
- --------------
See notes to financial statements.
11
<PAGE>
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 1996 DECEMBER 31, 1995
------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income........................................................ $ 7,775,360 $ 15,264,706
Net realized gain on investments............................................. 29,287,734 55,017,101
Net realized gain (loss) from foreign currency transactions.................. (92,049) 225,127
Net change in unrealized appreciation of investments......................... 21,000,818 76,349,692
Net change in unrealized appreciation on translation of assets and
liabilities denominated in foreign currencies............................. (509,632) 351,103
------------ ------------
Increase in Net Assets from Operations....................................... 57,462,231 147,207,729
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A.................................................................... (7,288,353) (14,964,866)
Class B.................................................................... (4,869) --
Class D.................................................................... (414,784) (491,306)
Net realized gain on investments:
Class A.................................................................... (12,418,274) (38,904,062)
Class B.................................................................... (24,509) --
Class D.................................................................... (1,070,381) (2,848,693)
------------ ------------
Decrease in Net Assets from Distributions.................................... (21,221,170) (57,208,927)
------------ ------------
</TABLE>
- ------------
12
<PAGE>
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES
---------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
CAPITAL SHARE TRANSACTIONS:* JUNE 30, 1996 DECEMBER 31, 1995 JUNE 30, 1996 DECEMBER 31, 1995
------------- ----------------- ------------ -----------------
<S> <C> <C> <C> <C>
Net proceeds from sale of shares:
Class A................................ 1,379,093 2,595,379 $20,402,364 $ 35,934,717
Class B................................ 89,064 -- 1,340,582 --
Class D................................ 782,958 1,887,144 11,534,385 26,182,816
Investment of dividends:
Class A................................ 261,322 540,438 3,887,154 7,493,573
Class B................................ 284 -- 4,210 --
Class D................................ 25,586 29,748 379,669 415,449
Exchanged from associated Funds:
Class A................................ 2,926,228 2,312,459 43,242,141 33,357,990
Class B................................ 1,916 -- 29,050 --
Class D................................ 271,563 629,898 3,990,440 9,013,077
Shares issued in payment of gain distributions:
Class A................................ 589,904 1,917,613 8,766,522 26,922,726
Class B................................ 1,466 -- 21,733 --
Class D................................ 67,896 192,465 1,006,009 2,696,370
---------- ---------- ------------ ------------
Total.................................... 6,397,280 10,105,144 94,604,259 142,016,718
---------- ---------- ------------ ------------
Cost of shares repurchased:
Class A................................ (2,818,763) (3,546,666) (41,780,114) (49,307,504)
Class B................................ (29) -- (435) --
Class D................................ (210,275) (213,657) (3,114,536) (2,986,437)
Exchanged into associated Funds:
Class A................................ (3,117,418) (2,672,563) (46,119,133) (37,994,566)
Class B................................ (237) -- (3,601) --
Class D................................ (442,746) (430,578) (6,463,766) (6,135,330)
---------- ---------- ------------ ------------
Total.................................... (6,589,468) (6,863,464) (97,481,585) (96,423,837)
---------- ---------- ------------ ------------
Increase (Decrease) in Net Assets from
Capital Share Transactions ........... (192,188) 3,241,680 (2,877,326) 45,592,881
========== ========== ------------ ------------
Increase in Net Assets................................................... 33,363,735 135,591,683
NET ASSETS:
Beginning of period...................................................... 660,963,900 525,372,217
------------ ------------
End of period (including undistributed net investment income of
$615,663 and $537,697, respectively).................................. $694,327,635 $660,963,900
============ ============
</TABLE>
- -----------------
*The Fund began offering Class B shares on April 22, 1996.
See notes to financial statements.
13
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. Seligman Common Stock Fund, Inc. (the "Fund") offers three classes of shares.
All shares existing prior to May 3, 1993, the commencement of Class D shares,
were classified as Class A shares. The Fund began offering Class B shares on
April 22, 1996. 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 B
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"), if applicable, of 5% on
redemptions in the first year after purchase, declining to 1% in the sixth year
and 0% thereafter. Class B shares will automatically convert to Class A shares
on the last day of the month that precedes the eighth anniversary of their date
of purchase. Class D shares are 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 CDSL of 1% imposed on certain redemptions made within one
year of purchase. The three classes of shares represent interests in the same
portfolio of investments, have the same rights and are generally identical in
all respects except that each class bears its separate distribution and certain
other class expenses, and has exclusive voting rights with respect to any matter
to which a separate vote of any class is required.
2. Significant accounting policies followed, all in con-formity 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 US dollars. The market
value of investment securities and other assets and liabilities denominated
in foreign currencies are translated into US 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 US 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. For the six months ended June 30, 1996, distribution and service fees
were the only class-specific expenses.
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
recharacterization of foreign exchange gains or losses to either ordinary
income or realized capital gains 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 US Government
obligations and short-term investments, for the six months ended June 30, 1996,
amounted to $209,617,529 and $218,477,937, respectively.
14
<PAGE>
================================================================================
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
At June 30, 1996, 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
$201,177,053 and $8,964,357, respectively.
4. At June 30, 1996, the Fund owned short-term investments which matured in less
than 7 days.
5. 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 0.65% per annum of the first $1 billion of the Fund's average
daily net assets, 0.60% per annum of the next $1 billion of the Fund's average
daily net assets, and 0.55% per annum of the Fund's average daily net assets in
excess of $2 billion. Prior to January 1, 1996, the management fee rate was
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 reflected in the Statement of Operations represents 0.65% per annum of the
Fund's average daily net assets. 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 $64,423 from sales of Class A shares, after commissions of
$498,386 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, 1996, fees incurred aggregated
$732,805, or 0.23% per annum of the average daily net assets of Class A shares.
The Fund has a Plan with respect to Class B and 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 B and Class D shares for which the organizations are
responsible; and, for Class D shares only, fees for providing other distribution
assistance of up to 0.75% on an annual basis of such average daily net assets.
Such fees are paid monthly by the Fund to the Distributor pursuant to the Plan.
With respect to Class B shares, a distribution fee of up to 0.75% on an
annual basis of average daily net assets is payable monthly by the Fund to the
Distributor; however, the Distributor has sold its rights to substantially all
of this fee to a third party (the "Purchaser"), which provided funding to the
Distributor to enable it to pay commissions to dealers at the time of the sale
of the related Class B shares.
For the six months ended June 30, 1996, fees incurred under the Plan,
equivalent to 1% per annum of the average daily net assets of Class B and Class
D shares, amounted to $1,313 and $257,497, respectively.
The Distributor is entitled to retain any CDSL imposed on certain
redemptions of Class D shares occurring within one year of purchase. For the six
months ended June 30, 1996, such charges amounted to $8,483.
The Distributor has sold its rights to collect any CDSL imposed on
redemptions of Class B shares to the Purchaser. In connection with the sale of
its rights to collect any CDSL and the distribution fees with respect to Class B
shares described above, the Distributor receives payments from the Purchaser
based on the value of Class B shares sold. The aggregate amount of such payments
and the Class B share distribution fees retained by the Distributor for the six
months ended June 30, 1996, amounted to $3,358.
Seligman Services, Inc., an affiliate of the Manager, is eligible to receive
commissions from certain sales of shares of the Fund, as well as distribution
and service fees pursuant to the Plan. For the six months ended June 30, 1996,
15
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
Seligman Services, Inc. received commissions of $12,506 from sales of Fund
shares. Seligman Services, Inc. also received distribution and service fees of
$229,611, pursuant to the Plan.
Seligman Data Corp., owned by the Fund and certain associated investment
companies, charged the Fund at cost $538,006 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, 1996, of $169,354 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.
6. At June 30, 1996, the Fund had an outstanding foreign currency contract to
buy foreign currency as follows:
<TABLE>
<CAPTION>
FOREIGN IN EXCHANGE SETTLEMENT UNREALIZED
CONTRACT CURRENCY FOR US $ DATE US $ VALUE DEPRECIATION
-------- -------- -------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C>
Purchase:
French Francs................. 21,686 4,213 7/2/96 4,208 $5
</TABLE>
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 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.
Average commission rate paid represents the average commision paid by the
Fund to purchase or sell portfolio securities. It is determined by dividing the
total commission dollars paid by the number of shares purchased and sold during
the period for which commissions were paid. This rate is provided for periods
beginning January 1, 1996.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS D
------------------------------------------------------ -------- ----------------------------------
SIX SIX YEAR ENDED
MONTHS YEAR ENDED DECEMBER 31 4/22/96* MONTHS DECEMBER 31 5/3/93*
ENDED ------------------------------------------- TO ENDED ------------- TO
6/30/96o 1995o 1994o 1993 1992 1991 6/30/96o 6/30/96o 1995o 1994o 12/31/93
-------- ----- ----- ---- ---- ---- -------- -------- ----- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning
of period .............. $14.19 $12.12 $13.47 $12.79 $12.54 $10.60 $14.80 $14.16 $12.07 $13.46 $13.29
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net investment income...... .17 .36 .38 .39 .39 .40 .03 .12 .24 .22 .18
Net realized and unrealized
investment gain (loss) .. 1.08 3.00 (.64) 1.49 .95 2.72 .45 1.07 3.00 (.66) 1.02
Net realized and unrealized
gain (loss) on foreign
currency transactions.... (.01) .01 -- -- -- -- -- (.01) .01 -- --
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Increase (decrease) from
investment operations.... 1.24 3.37 (.26) 1.88 1.34 3.12 .48 1.18 3.25 (.44) 1.20
Dividends paid............. (.17) (.36) (.37) (.38) (.39) (.40) (.06) (.12) (.22) (.23) (.21)
Distributions from net gain
realized ................ (.29) (.94) (.72) (.82) (.70) (.78) (.29) (.29) (.94) (.72) (.82)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net increase (decrease)
in net asset value ..... .78 2.07 (1.35) .68 .25 1.94 .13 .77 2.09 (1.39) .17
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end
of period ............... $14.97 $14.19 $12.12 $13.47 $12.79 $12.54 $14.93 $14.93 $14.16 $12.07 $13.46
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
TOTAL RETURN BASED
ON NET ASSET VALUE: 8.79% 28.17% (1.89)% 14.86% 10.86% 29.93% 3.26% 8.35% 27.17% (3.24)% 9.09%
RATIOS/SUPPLEMENTAL DATA:
Expenses to average
net assets .............. 1.15%+ .93% .85% .87% .75% .72% 2.00%+ 1.92%+ 1.72% 1.96% 2.02%+
Net investment income to
average net assets ...... 2.32%+ 2.56% 2.93% 2.86% 3.00% 3.24% 1.70%+ 1.58%+ 1.80% 1.68% 1.83%+
Portfolio turnover......... 32.27% 46.08% 57.17% 54.37% 46.78% 47.60% 32.27%+++ 32.27% 46.08% 57.17% 54.37%++
Average commission rate
paid .................... $.0574 $.0574+++ $.0574
Net assets, end of
period (000's omitted) ..$636,449 $614,400 $510,956 $553,222 $514,069 $494,858 $1,381 $56,498 $46,564 $14,416 $5,667
</TABLE>
- ---------------
* Commencement of offering of shares.
o Per share amounts for the periods ended June 30, 1996, and for the years
ended December 31, 1995, and 1994, are calculated based on average shares
outstanding.
+ Annualized.
++ For the year ended December 31, 1993.
+++ For the six months ended June 30, 1996.
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 in-vestments, of Seligman Common Stock Fund, Inc. as of June
30, 1996, 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, 1995, and the financial highlights for each of the periods
presented. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of June
30, 1996 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, 1996, 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
July 31, 1996
- --------------------------------------------------------------------------------
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
18
<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
DIRECTOR, Baptist Medical Center
JOHN E. MEROW
PARTNER, Sullivan & Cromwell, Law Firm
DIRECTOR, Commonwealth Aluminum Corporation
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, 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
MANAGING DIRECTOR, J. & W. Seligman & Co. Incorporated
ROBERT L. SHAFER 3, 4
DIRECTOR OR TRUSTEE,
Various Organizations
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
PRESIDENT
MANAGING DIRECTOR, J. & W. Seligman & Co. Incorporated
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Member:
1 Executive Committee
2 Audit Committee
3 Director Nominating Committee
4 Board Operations Committee
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EXECUTIVE OFFICERS
WILLIAM C. MORRIS
CHAIRMAN
BRIAN T. ZINO
PRESIDENT
CHARLES C. SMITH, JR.
VICE PRESIDENT
LAWRENCE P. VOGEL
VICE PRESIDENT
THOMAS G. ROSE
TREASURER
FRANK J. NASTA
SECRETARY
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