================================================================================
CENTRAL SECURITIES CORPORATION
----------
SEMI-ANNUAL REPORT
JUNE 30, 2000
================================================================================
<PAGE>
CENTRAL SECURITIES CORPORATION
(Organized on October 1, 1929 as an investment company, registered as such with
the Securities and Exchange Commission under the provisions of the Investment
Company Act of 1940.)
TEN YEAR HISTORICAL DATA
<TABLE>
<CAPTION>
Per Share of Common Stock
-------------------------
Distribu-
Convertible Divi- tions(B)
Preference dends(B) from
Total Stock at Net Net from net long-term Net realized Unrealized
net liquidation asset investment investment investment investment appreciation
Year assets preference value income(A) income gains gains (losses) of investments
---- ------ ---------- ----- --------- ------ ----- -------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1989 $129,376,703 $10,034,925 $12.24 $ 38,661,339
1990 111,152,013 10,027,050 10.00 $.17 $.20 $ .50* $(2,643,394) 25,940,819
1991 131,639,511 10,022,100 11.87 .14 .14 .56* 7,321,233 43,465,583
1992 165,599,864 10,019,000 14.33 .12 .20 .66 8,304,369 70,586,429
1993 218,868,360 9,960,900 17.90 .14 .18 1.42 16,407,909 111,304,454
1994 226,639,144 9,687,575 17.60 .23 .22 1.39 16,339,601 109,278,788
1995 292,547,559 9,488,350 21.74 .31 .33 1.60 20,112,563 162,016,798
1996 356,685,785 9,102,050 25.64 .27 .28 1.37 18,154,136 214,721,981
1997 434,423,053 9,040,850 29.97 .24 .34 2.08 30,133,125 273,760,444
1998 476,463,575 8,986,125 31.43 .29 .29 1.65 22,908,091 301,750,135
1999 590,655,679 -- 35.05 .26 .26 2.34 43,205,449 394,282,360
6 mos.
to
June 30,
2000** 671,107,396 -- 39.84 .18 .06 .44 49,004,346 431,361,596
</TABLE>
----------
A - Excluding gains or losses realized on sale of investments and the
dividend requirement on the Convertible Preference Stock, which was
redeemed on August 1, 1999.
B - Computed on the basis of the Corporation's status as a "regulated
investment company" for Federal income tax purposes.
* Includes a non-taxable return of capital of $.47 in 1990 and $.11 in 1991.
** Unaudited.
The Common Stock is listed on the American Stock Exchange. On June 30,
2000, the market quotations were as follows:
Common Stock................................. 35 3/4 high, 35 5/16 low and
35 1/2 last sale
[ 2 ]
<PAGE>
To the Stockholders of
CENTRAL SECURITIES CORPORATION:
Financial statements for the six months ended June 30, 2000 reviewed by
our independent accountants and other pertinent information are submitted
herewith.
Comparative market values of net assets are as follows:
<TABLE>
<CAPTION>
June 30,
2000 December 31,
(Unaudited) 1999
----------- ----
<S> <C> <C>
Net assets ....................................................... $671,107,396 $590,655,679
Net assets per share of Common Stock ............................. 39.84 35.05
Shares of Common Stock outstanding ........................... 16,844,197 16,850,745
Comparative operating results are as follows:
Six months ended June 30,
-------------------------
2000 1999
(Unaudited) (Unaudited)
----------- -----------
Net investment income ............................................ $ 2,997,695 $ 2,655,468
Per share of Common Stock .................................... .18* .14*
Net realized gain on sale of investments ......................... 49,004,346 13,267,720
Increase in net unrealized appreciation of investments ........... 37,079,236 40,475,558
Increase in net assets resulting from operations ................. 89,081,277 56,398,746
</TABLE>
----------
* Per-share data are based on the average number of Common shares outstanding
during the six-month period and in 1999 are after recognition of the dividend
requirement on the Convertible Preference Stock.
A dividend of $.50 per share was paid on June 23, 2000 to holders of
Common Stock. Stockholders will be sent a notice concerning the taxability of
all 2000 distributions in January 2001.
During the first six months of 2000 the Corporation repurchased 6,548
shares of its Common Stock at an average price per share of $31.68. These shares
were purchased on the American Stock Exchange and in a private transaction with
a stockholder. The Corporation may from time to time purchase Common Stock in
such amounts and at such prices as the Board of Directors may deem advisable in
the best interests of stockholders.
Stockholders' inquiries are welcome.
CENTRAL SECURITIES CORPORATION
WILMOT H. KIDD, President
375 Park Avenue
New York, NY 10152
August 2, 2000
[ 3 ]
<PAGE>
PRINCIPAL PORTFOLIO CHANGES*
April 1 to June 30, 2000
(Unaudited)
(Common Stock unless specified otherwise)
<TABLE>
<CAPTION>
Number of Shares
-----------------------------------------
Held
June 30,
Purchased Sold 2000
--------- ---- ----
<S> <C> <C> <C>
Analog Devices, Inc. ............................... 120,000 810,000
Flextronics, Inc. .................................. 756,700(a) 6,700 750,000
Intel Corporation .................................. 45,000 655,000
Internet SportStations, Inc. ....................... 100,000 --
MGI Pharma, Inc. ................................... 10,000 70,000
Meritor Automotive, Inc. ........................... 670,000 670,000
Nextel Communications, Inc. Class A ................ 140,000(b) 280,000
Novell, Inc. ....................................... 100,000 --
ProBusiness Services, Inc. ......................... 45,000 120,000
The Progressive Corporation ........................ 20,000 20,000
SunGard Data Systems Inc. .......................... 50,000 300,000
Unisys Corporation ................................. 100,000 1,000,000
UNUMProvident Corporation .......................... 39,400 290,600
</TABLE>
----------
* Excludes stocks listed under "Miscellaneous -- Other investments" in the
Statement of Investments.
(a) Received in exchange for 470,000 shares of Common Stock of The DII Group
Incorporated.
(b) Stock split.
[ 4 ]
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Investments:
General portfolio securities at market value
(cost $177,151,976) (Note 1) ............................. $568,068,504
Securities of affiliated companies (cost $3,462,486)
(Notes 1, 5 and 6) ....................................... 43,929,421
Short-term investments (cost $59,744,269) .................. 59,722,403 $671,720,328
------------
Cash, receivables and other assets:
Cash ....................................................... 25,441
Dividends receivable ....................................... 121,575
Interest receivable ........................................ 92,031
Prepaid expenses ........................................... 95,425
Office equipment net ....................................... 13,278 347,750
------------ ------------
Total Assets 672,068,078
LIABILITIES:
Payable for securities purchased ............................... 746,675
Accrued expenses and reserves .................................. 214,007
------------
Total Liabilities ...................................... 960,682
------------
NET ASSETS ......................................................... $671,107,396
============
NET ASSETS are represented by:
Common Stock at par value, $1.00 per share, authorized
30,000,000 shares; issued 17,060,093 (Note 2) ................ $17,060,093
Surplus:
Paid-in .................................................... $177,226,185
Undistributed net gain on sales of investments ............. 48,977,758
Undistributed net investment income ........................ 2,137,782 228,341,725
------------
Net unrealized appreciation of investments ..................... 431,361,596
Treasury stock, at cost (215,896 shares of Common Stock)
(Note 2) ..................................................... (5,656,018)
------------
NET ASSETS ......................................................... $671,107,396
============
NET ASSET VALUE PER COMMON SHARE ................................... $39.84
======
</TABLE>
See accompanying notes to financial statements
and independent accountants' review report.
[ 5 ]
<PAGE>
STATEMENT OF OPERATIONS
For the six months ended June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME
Income:
Dividends .................................................. $ 2,154,935
Interest ................................................... 1,653,613
Miscellaneous income ....................................... 1,157 $ 3,809,705
-----------
Expenses:
Investment research ........................................ 166,300
Administration and operations .............................. 198,108
Employees' retirement plans ................................ 7,510
Custodian fees ............................................. 16,023
Franchise and miscellaneous taxes .......................... 71,238
Transfer agent and registrar fees and expenses ............. 19,069
Rent and utilities ......................................... 80,389
Listing, software and sundry fees .......................... 47,605
Legal, auditing and tax fees ............................... 34,257
Stationery, supplies, printing and postage ................. 29,045
Travel and telephone ....................................... 18,011
Directors' fees ............................................ 41,500
Insurance .................................................. 48,962
Publications and miscellaneous ............................. 33,993 812,010
----------- -----------
Net investment income .......................................... 2,997,695
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS
Net realized gain from security transactions ................... 49,004,346
Net increase in unrealized appreciation of investments ......... 37,079,236
-----------
Net gain on investments .................................... 86,083,582
-----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS ................................................... $89,081,277
===========
</TABLE>
See accompanying notes to financial statements
and independent accountants' review report.
[ 6 ]
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended June 30, 2000
and the year ended December 31, 1999
<TABLE>
<CAPTION>
Six months
ended
June 30,
2000
(Unaudited) 1999
----------- ----
<S> <C> <C>
FROM OPERATIONS:
Net investment income ........................................... $ 2,997,695 $ 4,517,918
Net realized gain on investments ................................ 49,004,346 43,205,449
Net increase in unrealized appreciation of investments ...... 37,079,236 92,532,225
------------ ------------
Increase in net assets resulting from operations ............ 89,081,277 140,255,592
------------ ------------
DIVIDENDS TO STOCKHOLDERS FROM:
Net investment income:
Preference Stock ............................................ -- (538,855)
Common Stock ................................................ (966,934) (3,982,045)
Net realized gain from investment transactions .................. (7,455,165) (37,367,455)
------------ ------------
Decrease in net assets from distributions ................... (8,422,099) (41,888,355)
------------ ------------
FROM CAPITAL SHARE TRANSACTIONS: (Note 2)
Distribution to stockholders reinvested in Common Stock ......... -- 20,643,984
Cost of shares of Common Stock repurchased ...................... (207,461) (4,683,567)
Conversion:
Preference Stock prior to redemption ........................ -- (8,867,550)
Into Common Stock ........................................... -- 8,867,550
Other capital transactions ...................................... -- (135,550)
------------ ------------
Increase (decrease) in net assets from capital
share transactions ........................................ (207,461) 15,824,867
------------ ------------
Total increase in net assets ............................. 80,451,717 114,192,104
NET ASSETS:
Beginning of period .............................................. 590,655,679 476,463,575
------------ ------------
End of period (including undistributed net investment income
of $2,137,782 and $107,021, respectively) ...................... $671,107,396 $590,655,679
============ ============
</TABLE>
See accompanying notes to financial statements
and independent accountants' review report.
[ 7 ]
<PAGE>
STATEMENT OF INVESTMENTS
June 30, 2000
(Unaudited)
PORTFOLIO SECURITIES 91.2%
STOCKS (COMMON UNLESS SPECIFIED OTHERWISE)
<TABLE>
<CAPTION>
Prin. Amt. Market
or Shares Value
--------- -----
<C> <S> <C>
Banking and Finance 11.9%
600,000 The Bank of New York Company, Inc. ........... $ 27,900,000
600,000 Capital One Financial Corporation ............ 26,775,000
300,000 First Union Corporation ...................... 7,500,000
430,000 Household International, Inc. ................ 17,871,875
------------
80,046,875
------------
Business Services 1.7%
200,000 Gartner Group, Inc. Class A(a) ............... 2,400,000
200,000 MSC Industrial Direct Company Class A(a) ..... 4,187,500
120,000 ProBusiness Services, Inc.(a) ................ 3,187,500
170,000 UniFirst Corporation ......................... 1,338,750
------------
11,113,750
------------
Chemicals 2.9%
1,000,000 Hanna (M. A.) Company ........................ 9,000,000
300,000 Rohm and Haas Company ........................ 10,350,000
------------
19,350,000
------------
Computer Software & Services 14.4%
975,000 American Management Systems, Inc.(a) ......... 32,007,422
200,000 Cabletron Systems, Inc.(a) ................... 5,100,000
680,000 Convergys Corporation(a) ..................... 35,275,000
395,000 Peerless Systems Corporation(a) .............. 765,313
300,000 SunGard Data Systems Inc.(a) ................. 9,300,000
1,000,000 Unisys Corporation(a) ........................ 14,562,500
------------
97,010,235
------------
Data Processing 1.5%
555,000 The Reynolds and Reynolds Company Class A .... 10,128,750
------------
Electronics 32.0%
810,000 Analog Devices, Inc.(a) ...................... 61,560,000
450,000 Arrow Electronics, Inc.(a) ................... 13,950,000
750,000 Flextronics International Ltd.(a) ............ 51,515,625
655,000 Intel Corporation ............................ 87,565,313
------------
214,590,938
------------
</TABLE>
[ 8 ]
<PAGE>
<TABLE>
<CAPTION>
Prin. Amt. Market
or Shares Value
--------- -----
<C> <S> <C>
Energy 3.6%
100,000 Conoco Inc. Class A .......................... $ 2,200,000
70,000 Kerr-McGee Corporation ....................... 4,125,625
300,000 Murphy Oil Corporation ....................... 17,831,250
-----------
24,156,875
-----------
Engineering and Construction 0.8%
700,000 Morrison Knudsen Corporation(a) .............. 5,075,000
-----------
Health Care 2.3%
250,000 Impath, Inc.(a) .............................. 13,562,500
70,000 MGI Pharma, Inc.(a) .......................... 2,013,594
-----------
15,576,094
-----------
Household Products 1.3%
470,000 Church & Dwight Co., Inc. .................... 8,460,000
-----------
Industrial Equipment 0.3%
200,000 JLG Industries, Inc. ......................... 2,375,000
-----------
Insurance 7.7%
240,000 Mutual Risk Management Ltd ................... 4,155,000
70,000 The Plymouth Rock Company, Inc.
Class A(b)(c) .............................. 40,460,000
20,000 The Progressive Corporation .................. 1,480,000
290,600 UNUMProvident Corporation .................... 5,830,163
-----------
51,925,163
-----------
Manufacturing 3.9%
570,000 Brady Corporation Class A .................... 18,525,000
670,000 Meritor Automotive, Inc. ..................... 7,370,000
-----------
25,895,000
-----------
Paper and Forest Products 0.3%
100,000 Fort James Corporation ....................... 2,312,500
-----------
Telecommunications 6.0%
884,217 Broadwing Inc.(a) ............................ 22,934,377
280,000 Nextel Communications, Inc. Class A(a) ....... 17,132,500
-----------
40,066,877
-----------
Transportation 0.5%
533,757 Transport Corporation of America, Inc.
Class B(a)(b) ........................... 3,469,420
-----------
</TABLE>
[ 9 ]
<PAGE>
<TABLE>
<CAPTION>
Prin. Amt. Market
or Shares Value
--------- -----
<C> <S> <C>
Miscellaneous 0.1%
Grumman Hill Investments, L.P.(a)(c) ............. $ 432,498
5,000 Southeast Publishing Ventures, Inc.
Series A Pfd.(a)(b)(c) .................... 0
Steuart Petroleum Company Warrant to
Purchase Common Stock(a)(c) ............... 0
Other investments ................................ 12,950
------------
445,448
------------
Total Portfolio Securities
(cost $180,614,462) ............... 611,997,925
------------
SHORT-TERM DEBT INVESTMENTS 8.9%
$ 9,928,000 American Express Credit Corp. 6.54%
due 7/26/00 ............................... $ 9,883,738
28,405,000 Ford Motor Credit Corp. 6.37% -- 6.45%
due 7/06/00 -- 7/12/00 .................... 28,363,201
12,029,000 General Motors Acceptance Corp. 6.52%
due 7/19/00 ............................... 11,990,507
9,500,000 U.S. Treasury Note 5.75%
due 10/31/00 .............................. 9,484,957
------------
Total Short-Term Investments
(cost $59,744,269) ................ 59,722,403
------------
Total Investments
(cost $240,358,731) (100.1%) ...... 671,720,328
------------
Liabilities, less cash, receivables
and other assets (0.1%) ........... (612,932)
------------
Net Assets (100%) .................... $671,107,396
============
</TABLE>
----------
(a) Non-dividend paying.
(b) Affiliate as defined in the Investment Company Act of 1940.
(c) Valued at estimated fair value.
See accompanying notes to financial statements
and independent accountants' review report.
[ 10 ]
<PAGE>
NOTES TO FINANCIAL STATEMENTS -- (unaudited)
1. Significant Accounting Policies -- The Corporation is registered under
the Investment Company Act of 1940, as amended, as a non-diversified, closed-end
management investment company. The following is a summary of the significant
accounting policies consistently followed by the Corporation in the preparation
of its financial statements. The policies are in conformity with generally
accepted accounting principles.
Security Valuation -- Securities are valued at the last sale price on June
30, 2000 or, if unavailable, at the closing bid price. Corporate
discount notes are valued at amortized cost, which approximates market
value. Securities for which no ready market exists, including The
Plymouth Rock Company, Inc. Class A Common Stock, are valued at
estimated fair value by the Board of Directors.
Federal Income Taxes -- It is the Corporation's policy to meet the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income to its
stockholders. Therefore, no Federal income taxes have been accrued.
Use of Estimates -- The preparation of the financial statements in
accordance with generally accepted accounting principles requires
management to make estimates and assumptions that affect the amounts
reported. Actual results could differ from those estimates.
Other -- Security transactions are accounted for on the date the
securities are purchased or sold, and cost of securities sold is
determined by specific identification. Dividend income and
distributions to stockholders are recorded on the ex-dividend date.
2. Preference Stock and Common Stock -- The Corporation redeemed its
outstanding Preference Stock on August 1, 1999. Pursuant to its fundamental
policy regarding the issuance of senior securities, the Corporation may issue
senior securities in the future when and if, in the judgment of its directors,
such action is deemed advisable.
The Corporation repurchased 6,548 shares of its Common Stock in the first
six months of 2000 at an average price of $31.68 per share representing an
average discount from net asset value of 18.4%. It may from time to time
purchase Common Stock in such amounts and at such prices as the Board of
Directors may deem advisable in the best interests of the stockholders.
Purchases will only be made at less than net asset value per share, thereby
increasing the net asset value of shares held by the remaining stockholders.
Shares so acquired may be held as treasury stock, available for optional stock
distributions, or may be retired.
3. Investment Transactions -- The aggregate cost of securities purchased
and the aggregate proceeds of securities sold during the six months ended June
30, 2000, excluding short-term investments, were $50,725,390 and $82,175,082,
respectively.
As of June 30, 2000, based on cost for Federal income tax purposes, the
aggregate gross unrealized appreciation and depreciation for all securities were
$452,357,383 and $20,995,787, respectively.
See independent accountants' review report.
[ 11 ]
<PAGE>
NOTES TO FINANCIAL STATEMENTS -- continued (unaudited)
4. Operating Expenses -- The aggregate remuneration paid during the six
months ended June 30, 2000 to officers and directors amounted to $348,300, of
which $40,500 was paid as fees to directors who were not officers. Benefits to
employees are provided through a profit sharing retirement plan. Contributions
to the plan are made at the discretion of the Board of Directors, and each
participant's benefits vest after three years. No contributions were made to the
plan for the six months ended June 30, 2000.
5. Affiliates -- The Plymouth Rock Company, Inc., Southeast Publishing
Ventures, Inc., and Transport Corporation of America, Inc. are affiliates as
defined in the Investment Company Act of 1940. The Corporation received
dividends of $204,400 from affiliates during the six months ended June 30, 2000.
Unrealized appreciation related to affiliates increased by $3,130,818 for the
six months ended June 30, 2000 to $40,466,935.
6. Restricted Securities -- The Corporation from time to time invests in
securities the resale of which is restricted. On June 30, 2000 such investments
had an aggregate value of $41,937,805, which was equal to 6.2% of the
Corporation's net assets. Investments in restricted securities at June 30, 2000,
including acquisition dates and cost, were:
<TABLE>
<CAPTION>
Company Shares Security Date Purchased Cost
------------------------------ ------- ------------------- -------------- ----------
<S> <C> <C> <C> <C>
Broadwing Inc. 40,301 Common Stock 11/24/99 $ 3
Grumman Hill Investments, L.P. Limited Partnership 09/11/85 33,975
Interest
The Plymouth Rock 70,000 Class A Common 12/15/82 1,500,000
Company, Inc. Stock 06/09/84 699,986
Southeast Publishing 5,000 Series A Pfd. 04/05/89 0
Ventures, Inc. Stock
Steuart Petroleum Company Warrant 06/08/93 52,500
</TABLE>
In general, the Corporation does not have the right to demand registration
of the restricted securities. Unrealized appreciation related to restricted
securities increased by $5,728,302 for the six months ended June 30, 2000 to
$39,651,341.
See independent accountants' review report.
[ 12 ]
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Six Mos.
Ended
6/30/00
(Unaudited) 1999 1998 1997 1996 1995
---------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period .. $ 35.05 $ 31.43 $ 29.97 $ 25.64 $ 21.74 $ 17.60
Net investment income ................. .18 .30 .34 .29 .33 .37
Net realized and unrealized gain
on securities ....................... 5.11 5.96 3.11 6.51 5.28 5.76
-------- -------- -------- -------- -------- --------
Total from investment
operations .................... 5.29 6.26 3.45 6.80 5.61 6.13
Less:
Dividends from net investment income*
To Preference Stockholders ........ -- .04 .05 .05 .06 .06
To Common Stockholders ............ .06 .26 .29 .34 .28 .33
Distributions from capital gains*
To Common Stockholders ............ .44 2.34 1.65 2.08 1.37 1.60
-------- -------- -------- -------- -------- --------
Total distributions ............. .50 2.64 1.99 2.47 1.71 1.99
-------- -------- -------- -------- -------- --------
Net asset value, end of period ........ $ 39.84 $ 35.05 $ 31.43 $ 29.97 $ 25.64 $ 21.74
======== ======== ======== ======== ======== ========
Per share market value,
end of period ....................... $ 35.50 $ 27.25 $ 24.38 $ 29.69 $ 24.13 $ 20.88
Total investment return,
market(%) ........................... 31.53+ 22.96 (11.57) 35.60 22.35 45.65
Total investment return, NAV(%) ....... 15.06+ 31.79 13.75 26.08 25.97 34.59
Ratios/Supplemental Data:
Net assets, end of period(000) ........ $671,107 $590,656 $476,464 $434,423 $356,686 $292,548
Ratio of expenses to average net
assets for Common(%) ................ .25++ .45 .51 .54 .57 .64
Ratio of net investment income to
average net assets for
Common(%) ........................... .92++ .89 1.09 .99 1.36 1.75
Portfolio turnover rate(%) ............ 8.41+ 12.06 6.21 10.92 9.89 8.27
</TABLE>
----------
* Computed on the basis of the Corporation's status as a "regulated investment
company" for Federal income tax purposes.
+ Not annualized.
++ Annualized, not necessarily indicative of full year ratio.
See accompanying notes to financial statements
and independent accountants' review report.
[ 13 ]
<PAGE>
--------------------------------------------------------------------------------
INDEPENDENT ACCOUNTANTS' REVIEW REPORT
TO THE BOARD OF DIRECTORS AND STOCKHOLDERS OF
CENTRAL SECURITIES CORPORATION
We have reviewed the accompanying statement of assets and liabilities,
including the statement of investments, of Central Securities Corporation as of
June 30, 2000, and the related statements of operations, changes in net assets
and financial highlights for the six-month period ended June 30, 2000, in
accordance with Statements on Standards for Accounting and Review Services
issued by the American Institute of Certified Public Accountants. All
information included in these financial statements is the representation of the
management of Central Securities Corporation.
A review consists principally of inquiries of Company personnel and
analytical procedures applied to financial data. It is substantially less in
scope than an audit in accordance with generally accepted auditing standards,
the objective of which is the expression of an opinion regarding the financial
statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the accompanying financial statements in order for them to be
in conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the statement of changes in net assets for the year ended December
31, 1999, and financial highlights for each of the five years in the period
ended December 31, 1999, and in our report dated January 25, 2000 we expressed
an unqualified opinion on such statement of changes in net assets and financial
highlights.
KPMG LLP
New York, NY
July 26, 2000
--------------------------------------------------------------------------------
ANNUAL MEETING OF STOCKHOLDERS -- (unaudited)
The annual meeting of stockholders of the Corporation was held on March 8,
2000. At the meeting all of the directors of the Corporation were reelected by
the following vote of the holders of the Common Stock: Donald G. Calder,
15,553,345 shares in favor, 51,125 shares withheld; Jay R. Inglis, 15,544,156
shares in favor, 60,314 shares withheld; Dudley D. Johnson, 15,552,764 shares in
favor, 51,706 shares withheld; Wilmot H. Kidd, 15,552,250 shares in favor,
52,220 shares withheld; and C. Carter Walker, Jr., 15,552,383 shares in favor,
52,087 shares withheld.
In addition, the selection of KPMG LLP as independent auditors of the
Corporation for the year 2000 was ratified by the following vote of the holders
of the Common Stock: 15,523,144 shares in favor, 29,367 shares against, 51,959
shares abstaining.
[ 14 ]
<PAGE>
BOARD OF DIRECTORS
DONALD G. CALDER DUDLEY D. JOHNSON
President President
G. L. Ohrstrom & Co., Inc. Young & Franklin Inc.
New York, NY Liverpool, NY
JAY R. INGLIS WILMOT H. KIDD
Executive Vice President President
Holt Corporation
New York, NY
C. CARTER WALKER, JR.
Washington, CT
OFFICERS
WILMOT H. KIDD, President
CHARLES N. EDGERTON, Vice President and Treasurer
KAREN E. RILEY, Secretary
OFFICE
375 Park Avenue, New York, NY 10152
212-688-3011
www.centralsecurities.com
CUSTODIAN
UMB Bank, N. A.
P.O. Box 419226, Kansas City, MO 64141-6226
TRANSFER AGENT AND REGISTRAR
EquiServe, First Chicago Trust Division
P.O. Box 2500, Jersey City, NJ 07303-2500
INDEPENDENT AUDITORS
KPMG LLP
345 Park Avenue, New York, NY 10154
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