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SIGNATURE LEWIS E. DAIDONE
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information
extracted from The Salomon Brothers Capital Fund Inc
form N-SAR for the period ended December 31, 1998
and is qualified in its entirety by reference to
such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 01
<NAME> Salomon Brothers Capital Fund Inc Class A
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 186,922,361
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<NET-ASSETS> 11,424,639
<DIVIDEND-INCOME> 98,895
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<NET-INVESTMENT-INCOME> 59,181
<REALIZED-GAINS-CURRENT> 698,801
<APPREC-INCREASE-CURRENT> 426,291
<NET-CHANGE-FROM-OPS> 1,184,273
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 82,363
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information
extracted from The Salomon Brothers Capital Fund Inc
form N-SAR for the period ended December 31, 1998
and is qualified in its entirety by reference to
such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 02
<NAME> Salomon Brothers Capital Fund Inc Class B
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 186,922,361
<INVESTMENTS-AT-VALUE> 232,648,594
<RECEIVABLES> 8,308,435
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<SHARES-COMMON-STOCK> 985,167
<SHARES-COMMON-PRIOR> 181,818
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<OVERDISTRIBUTION-NII> 0
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information
extracted from The Salomon Brothers Capital Fund Inc
form N-SAR for the period ended December 31, 1998
and is qualified in its entirety by reference to
such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 03
<NAME> Salomon Brothers Capital Fund Inc Class 2
<S> <C>
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information
extracted from The Salomon Brothers Capital Fund Inc
form N-SAR for the period ended December 31, 1998
and is qualified in its entirety by reference to
such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 04
<NAME> Salomon Brothers Capital Fund Inc Class O
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<ACCUMULATED-GAINS-PRIOR> 8,054,582
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,802,144
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,426,121
<AVERAGE-NET-ASSETS> 186,988,967
<PER-SHARE-NAV-BEGIN> 21.23
<PER-SHARE-NII> 0.21
<PER-SHARE-GAIN-APPREC> 4.62
<PER-SHARE-DIVIDEND> (0.24)
<PER-SHARE-DISTRIBUTIONS> (2.83)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 22.99
<EXPENSE-RATIO> 1.08
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
Report of Independent Accountants
To the Shareholders and Board of Directors of
Salomon Brothers Capital Fund Inc
In planning and performing our audit of the financial statements of Salomon
Brothers Capital Fund Inc (the "Fund") for the year ended December 31, 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 judgements 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
December 31, 1998.
This report is intended solely for the information and use of management and the
Board of Directors of the Fund and the Securities and Exchange Commission.
PricewaterhouseCoopers LLP
New York, New York 10036
February 24, 1999
10f-3 REPORT
SALOMON BROTHERS CAPITAL FUND
October 1, 1998 through December 31, 1998
<TABLE>
<S> <C> <C> <C> <C> <C>
Trade Purchase % of
Issuer Date Selling Dealer Amount Price Issue(1)
Conoco 10/21/98 Morgan Stanley Dean Witter $23,133,400 $23.00 0.53A
MONY Group 11/10/98 Goldman Sachs $1,175,000 $23.50 0.44 B
the globe.com 11/12/98 Bear Stearns $9,000 $ 9.00 0.03C
E-tek Dynamics 12/1/98 Goldman Sachs $60,000 $12.00 0.10D
Ticketmaster 12/2/98 Montgomery $70,000 $14.00 0.07E
Online-CitySearch
</TABLE>
(1) Represents purchases by all affiliated funds; may
not exceed 25% of the offering.
A - Includes purchases of $21,238,200 by other affiliated mutual funds.
B - Includes purchases of $249,100 by other affiliated mutual funds. C
- Includes purchases of $1,800 by other affiliated mutual funds. D -
Includes purchases of $30,000 by other affiliated mutual funds. E -
Includes purchases of $35,000 by other affiliated mutual funds.
<PAGE>
SALOMON BROTHERS CAPITAL FUND
PURCHASE PURSUANT TO
RULE 10f-3 OF ICA
NAME OF STOCK: OM Group, Inc.
DATE OF PURCHASE: June 30, 1998
NUMBER OF SHARES PURCHASED: 9,100
AGGREGATE PURCHASE PRICE: $375,375
PRICE PER SHARE: $41.25
UNDERWRITING SPREAD: $2.00
% GROSS UNDERWRITING SPREAD: 4.85%
SHARES OFFERED: 1,750,000
TOTAL OFFERING: $72,187,500
25% OF OFFERING: $18,046,875
BROKER: Donaldson,
Lufkin & Jenrette
Note: A total of 59,800 shares was purchased by funds in the Salomon Brothers
complex for an aggregate
purchase price of $2,466,750.
The above purchase was made in accordance with the procedures adopted by the
Board of Directors pursuant to Rule 10(f)3 of the Investment Company Act of
1940, as amended.
<PAGE>
SALOMON BROTHERS CAPITAL FUND
PURCHASE PURSUANT TO
RULE 10f-3 OF ICA
NAME OF STOCK: EQUANT
DATE OF PURCHASE: July 20, 1998
NUMBER OF SHARES PURCHASED: 5,400
AGGREGATE PURCHASE PRICE: $145,800
PRICE PER SHARE: $27
UNDERWRITING SPREAD: $1.4175
% GROSS UNDERWRITING SPREAD: 5.25%
SHARES OFFERED: 26,129,118
TOTAL OFFERING: $705,486,186
25% OF OFFERING: $176,371,547
BROKER: Morgan Stanley
Dean Witter
Note: A total of 8,000 shares was purchased by funds in the Salomon Brothers
complex for an aggregate purchase price of $216,000.
The above purchase was made in accordance with the procedures adopted by the
Board of Directors pursuant to Rule 10(f)3 of the Investment Company Act of
1940, as amended.
