<PAGE> PAGE 1
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000 C000000 0000019614
000 D000000 N
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000 F000000 Y
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000 J000000 A
001 A000000 THE ALLIANCE FUND, INC.
001 B000000 811-00204
001 C000000 2013194000
002 A000000 500 PLAZA DRIVE
002 B000000 SECAUCUS
002 C000000 NJ
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003 000000 N
004 000000 N
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008 A000001 ALLIANCE CAPITAL MANAGEMENT L.P.
008 B000001 A
008 C000001 801-32361
008 D010001 NEW YORK
008 D020001 NY
008 D030001 10105
011 A000001 ALLIANCE FUND DISTRIBUTORS, INC.
011 B000001 8-30851
011 C010001 NEW YORK
011 C020001 NY
011 C030001 10105
012 A000001 ALLIANCE FUND SERVICES, INC.
012 B000001 84-0001187
012 C010001 SECAUCUS
012 C020001 NJ
012 C030001 07096
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013 B010001 NEW YORK
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<PAGE> PAGE 2
013 B030001 10036
013 B040001 2798
014 A000001 DONALDSON LUFKIN & JENRETTE SECURITIES CORP.
014 B000001 8-00017574
015 A000001 STATE STREET BANK AND TRUST CO.
015 B000001 C
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015 C030001 02110
015 E010001 X
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019 B000000 51
019 C000000 ALLIANCECA
020 A000001 SALOMON SMITH BARNEY, INC.
020 B000001 13-1912900
020 C000001 642
020 A000002 MORGAN STANLEY & CO., INC.
020 B000002 13-2655998
020 C000002 311
020 A000003 GOLDMAN, SACHS & CO.
020 B000003 13-5108880
020 C000003 286
020 A000004 MORGAN (J.P.) SECURITIES, INC.
020 B000004 13-3224016
020 C000004 234
020 A000005 MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.
020 B000005 13-5674085
020 C000005 233
020 A000006 BT ALEX BROWN, INC.
020 B000006 52-1319768
020 C000006 229
020 A000007 CS FIRST BOSTON CORP.
020 B000007 13-5659485
020 C000007 225
020 A000008 LEHMAN BROTHERS, INC.
020 B000008 13-2518466
020 C000008 219
020 A000009 C.J. LAWRENCE
020 C000009 219
020 A000010 NATIONSBANC MONTGOMERY
020 C000010 184
021 000000 3941
022 A000001 PRUDENTIAL SECURITIES INC.
022 B000001 22-2347336
022 C000001 1804325
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022 B000002 13-5674085
022 C000002 88518
022 D000002 57990
<PAGE> PAGE 3
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022 B000003 13-5108880
022 C000003 49064
022 D000003 71997
022 A000004 MORGAN STANLEY & CO,.
022 B000004 13-2655998
022 C000004 49255
022 D000004 36215
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022 B000005 13-2518466
022 C000005 23500
022 D000005 56792
022 A000006 C.J. LAWRENCE
022 C000006 32366
022 D000006 38846
022 A000007 STATE STREET BANK & TRUST CO.
022 B000007 04-1867445
022 C000007 53860
022 D000007 0
022 A000008 ABN AMRO SECURITIES, INC.
022 B000008 13-3227945
022 C000008 24810
022 D000008 28431
022 A000009 FORD MOTOR CREDIT CORP.
022 C000009 51332
022 D000009 0
022 A000010 SALOMON SMITH BARNEY, INC.
022 B000010 13-1912900
022 C000010 22050
022 D000010 28496
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<PAGE> PAGE 4
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 9
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SIGNATURE JOSEPH REZABEK
TITLE ASST. VICE PRESIDENT
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000019614
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<SERIES>
<NUMBER> 001
<NAME> THE ALLIANCE FUND, INC.
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<FISCAL-YEAR-END> NOV-30-1998
<PERIOD-START> DEC-01-1997
<PERIOD-END> NOV-30-1998
<INVESTMENTS-AT-COST> 1,011,779,984
<INVESTMENTS-AT-VALUE> 1,063,154,652
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<TOTAL-LIABILITIES> 29,074,308
<SENIOR-EQUITY> 1,808,379
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<SHARES-COMMON-STOCK> 159,591,089
<SHARES-COMMON-PRIOR> 138,170,619
<ACCUMULATED-NII-CURRENT> 0
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<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 51,374,717
<NET-ASSETS> 1,071,173,733
<DIVIDEND-INCOME> 7,830,475
<INTEREST-INCOME> 433,100
<OTHER-INCOME> 0
<EXPENSES-NET> (13,609,503)
<NET-INVESTMENT-INCOME> (5,345,928)
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<APPREC-INCREASE-CURRENT> (180,389,548)
<NET-CHANGE-FROM-OPS> (102,100,457)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (297,697,708)
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<NUMBER-OF-SHARES-SOLD> 19,300,560
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<SHARES-REINVESTED> 36,393,823
<NET-CHANGE-IN-ASSETS> (229,868,269)
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<OVERDISTRIB-NII-PRIOR> 0
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</TABLE>
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<PERIOD-END> NOV-30-1998
<INVESTMENTS-AT-COST> 1,011,779,984
<INVESTMENTS-AT-VALUE> 1,063,154,652
<RECEIVABLES> 37,089,601
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<NET-CHANGE-IN-ASSETS> (229,868,269)
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<PER-SHARE-NII> (0.07)
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<PER-SHARE-NAV-END> 5.51
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</TABLE>
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<INVESTMENTS-AT-COST> 1,011,779,984
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<CIK> 0000019614
<NAME> THE ALLIANCE FUND, INC.
<SERIES>
<NUMBER> 004
<NAME> THE ALLIANCE FUND, INC.
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1998
<PERIOD-START> DEC-01-1997
<PERIOD-END> NOV-30-1998
<INVESTMENTS-AT-COST> 1,011,779,984
<INVESTMENTS-AT-VALUE> 1,063,154,652
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<SENIOR-EQUITY> 1,808,379
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<SHARES-COMMON-STOCK> 1,890,240
<SHARES-COMMON-PRIOR> 1,181,832
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<OTHER-INCOME> 0
<EXPENSES-NET> (13,609,503)
<NET-INVESTMENT-INCOME> (5,345,928)
<REALIZED-GAINS-CURRENT> 83,635,019
<APPREC-INCREASE-CURRENT> (180,389,548)
<NET-CHANGE-FROM-OPS> (102,100,457)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (2,587,444)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,262,591
<NUMBER-OF-SHARES-REDEEMED> (948,689)
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<ACCUMULATED-NII-PRIOR> 0
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<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 13,610,000
<AVERAGE-NET-ASSETS> 13,878,962
<PER-SHARE-NAV-BEGIN> 8.69
<PER-SHARE-NII> (0.01)
<PER-SHARE-GAIN-APPREC> (0.53)
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<RETURNS-OF-CAPITAL> 0
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</TABLE>
[DESCRIPTION]Report of 10f-3 Transactions
Securities Purchased in Underwritings Involving
Transactions with Donaldson, Lufkin, & Jenrette Securities Corporation
Subject to Rule 10f-3 Under the Investment Company Act of 1940
THE ALLIANCE FUND
<TABLE>
10f-3 TRANSACTIONS FOR THE PERIOD SEPTEMBER 31, 1998 THROUGH NOVEMBER 30, 1998
<CAPTION>
Total % of
Shares Shares Offering Shares
Date Shares % of FundPrice perPurchased bOffered Purchased Held
Security PurchasedPurchasedAssets Share Fund Group (000) By Group Purchased From 11/30/98
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Boston Properties Inc 01/26/98 250,800 0.00% $35.13 848,700 20,000,0004.24% Goldman Sachs & Co 0
Life Re Corp 03/31/98 174,600 0.00% $66.00 174,600 3,300,000 5.29% Goldman Sachs & Co 0
Earthshell Corp 03/23/98 100,000 0.00% $21.00 100,000 13,200,0000.76% Smith Barney Inc 0
Zions Bancorp 06/04/98 100,000 0.00% $49.13 221,600 2,400,000 9.23% Goldman Sachs & Co 0
Aurora Foods Inc 06/25/98 50,000 0.00% $21.00 50,000 14,500,0000.34% Goldman Sachs & Co 0
Fox Entertainment Group 11/10/98 70,700 0.00% $22.50 306,300 124,800,000.25% Goldman Sachs & Co 70,700
</TABLE>
* Unless otherwise indicated, the securities were part of an issue registered
under the Securities Act of 1933 and offered to the public.
**Indicates the puchase of an Eligible Rule 144A Security.
1) Purchases by all Alliance Funds, including the Fund, may not exceed: (a) if
purchased in an offering other than an Eligible Rule 144A Offering, 25% of the
principal amount of the offering of such class; or (b) if purchased in an
Eligible Rule 144A Offering, 25% of the total of (i) the principal amount
of the offering of such class sold by underwriters or members of the
selling syndicate to qualified institutional buyers, plus (ii) the principal
amount of the offering of such class in any concurrent public offering.
Report of Independent Accountants
To the Shareholders and Board of Directors of
The Alliance Fund, Inc.
In planning and performing our audit of the financial statements of The
Alliance Fund, Inc. (the "Fund") for the year ended November 30, 1998, we
considered its internal control, including control activities for
safeguarding securities, in order to determine our auditing procedures
for the purpose of expressing our opinion on the financial statements and
to comply with the requirements of Form N-SAR, not to provide assurance
on internal control.
The management of the Fund is responsible for establishing and
maintaining internal control. In fulfilling this responsibility,
estimates and judgments by management are required to assess the expected
benefits and related costs of controls. Generally, controls that are
relevant to an audit pertain to the entity's objective of preparing
financial statements for external purposes that are fairly presented in
conformity with generally accepted accounting principles. Those controls
include the safeguarding of assets against unauthorized acquisition, use
or disposition.
Because of inherent limitations in internal control, error or fraud may
occur and not be detected. Also, projection of any evaluation of
internal control to future periods is subject to the risk that it may
become inadequate because of changes in conditions or that the
effectiveness of the design and operation may deteriorate.
Our consideration of internal control would not necessarily disclose all
matters in internal control that might be material weaknesses under
standards established by the American Institute of Certified Public
Accountants. A material weakness is a condition in which the design or
operation of one or more of the internal control components does not
reduce to a relatively low level the risk that misstatements caused by
error or fraud in amounts that would be material in relation to the
financial statements being audited may occur and not be detected within a
timely period by employees in the normal course of performing their
assigned functions. However, we noted no matters involving internal
control and its operation, including controls for safeguarding
securities, that we consider to be material weaknesses as defined above
as of November 30, 1998.
This report is intended solely for the information and use of management,
the Board of Directors of the Fund, and the Securities and Exchange
Commission.
PricewaterhouseCoopers LLP New York, NY 10036 January 8, 1999
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