<PAGE>
- ----------------------------------
BERGSTROM
CAPITAL
CORPORATION
- ----------------------------------
1996 THIRD QUARTER REPORT
Listed: American Stock Exchange (Ticker symbol: BEM)
Transfer Agent, Registrar and Custodian: State Street Bank and Trust Company,
Boston, Massachusetts
Independent Auditors: Deloitte & Touche LLP, Boston, Massachusetts
Legal Counsel: Howard, Rice, Nemerovski, Canady, Falk & Rabkin PC, San
Francisco, California
<PAGE>
BERGSTROM CAPITAL CORPORATION
- -------------------------------------------------------------------------------
NOTICE OF IMPORTANT FEDERAL INCOME TAX INFORMATION
It is the presently declared policy of the Board of Directors, which is
subject to review by the Board of Directors from time to time, that in any
year in which the Company is taxed as a regulated investment company all or a
portion of the net long-term capital gains of the Company for such year may be
retained by the Company, and if such gains are retained taxes thereon would be
paid by the Company and appropriate credit therefore allowed to the
stockholders of the Company, all as provided in Section 852(b)(3)(D) of the
Internal Revenue Code. Stockholders of record on December 31 of such year
would be required to include in their income tax returns their share of the
Company's net long-term capital gains retained and take credit for the tax
paid on their behalf by the Company. Stockholders of record on December 31 of
such year should increase the tax basis of their stock by the excess of their
share of the net long-term capital gains retained over the tax paid on their
behalf. On or about February 1 following the end of such year the Company
would send Form 2439, Notice to Shareholders of Undistributed Capital Gains,
to stockholders of record on December 31 of such year. For the years 1980
through 1984, 1986, 1987, 1989, and 1991 through 1995, the Company retained
all or a portion of the net long-term capital gains realized. For the years
1985, 1988 and 1990 all of the net long-term capital gains realized were
distributed.
Based on the net long-term capital gains realized during the ten months
ending October 31, 1996, and in order to avoid the excise tax provided for in
the Federal Income Tax Reform Act of 1986, the Board of Directors has elected
to distribute a portion of the net long-term capital gains realized during the
year ending December 31, 1996 as a part of the cash dividend and in-kind
distribution paid on September 20, 1996, and to retain the remainder of the
net long-term capital gains realized during the year ending December 31, 1996.
Please refer to the President's Letter in this report regarding the cash
dividend and in-kind distribution paid on September 20, 1996.
A Form 1099 will be mailed by January 31, 1997 to each stockholder of record
on the dividend record date in 1996 setting forth the specific amounts to be
included in that stockholder's 1996 tax return.
<PAGE>
BERGSTROM CAPITAL CORPORATION
- -------------------------------------------------------------------------------
STOCKHOLDER MEETING RESULTS
The Annual Meeting of Stockholders of Bergstrom Capital Corporation (the
"Company") was held on Monday, November 4, 1996 at the Cutter Room, The
Rainier Club, Fourth Avenue and Marion Street, Seattle, Washington. The two
matters voted upon by Stockholders and the resulting votes for each matter are
presented below.
1. The election of two directors to hold office until the Annual Meeting of
Stockholders in 1999 and until their respective successors shall be
elected and shall qualify.
<TABLE>
<CAPTION>
ELECTED DIRECTOR FOR WITHHELD BROKER NON-VOTES*
<S> <C> <C> <C>
William L. McQueen 996,549 9,425 0
Norman R. Neilsen 998,486 7,488 0
</TABLE>
<TABLE>
<CAPTION>
OTHER CONTINUING DIRECTORS PRESENT TERM EXPIRES
<S> <C>
Erik E. Bergstrom 1997
George Cole Scott 1997
Clayton H. Williams 1998
</TABLE>
2. Ratification or rejection of the selection by the Company's Board of
Directors of Deloitte & Touche LLP as the independent auditors of the
Company for the year ending December 31, 1996.
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN BROKER NON-VOTES*
<S> <C> <C> <C>
995,589 3,911 6,474 0
</TABLE>
* Broker non-votes are proxies received by the Company from brokers or
nominees when the broker or nominee neither has received instructions from
the beneficial owner or other persons entitled to vote nor has discretionary
power to vote on a particular matter.
<PAGE>
BERGSTROM CAPITAL CORPORATION
- -------------------------------------------------------------------------------
505 Madison Street, Suite 220
Seattle, Washington 98104
November 4, 1996
Dear Fellow Stockholders:
During the first nine months of 1996 the Company's net assets decreased from
$149,357,224 to $148,791,085 which is a decrease of $566,139. This decrease in
net assets is after payment by the Company of $7,819,420 in dividends ($6.9125
per share on September 20, 1996). This decrease is also after the repurchase
of stock during the first nine months of 1996 for $5,427,060. The increase in
net assets, before deducting the payment of dividends and the repurchase of
stock, was $12,680,341 which was composed of net investment income of
$508,679, realized gain from the sale of investments of $15,178,659, and a
decrease in unrealized appreciation of $3,006,997.
The per share net asset value (based on the number of shares outstanding at
the end of each period) increased from $128.35 on December 31, 1995 to $133.15
on September 30, 1996. After adjustment for the dividends, the per share net
asset value increased 9.1%. The Company's performance for the first nine
months of 1996 was affected by the lower rate of increase in the value of the
Company's investment in the securities of Amgen, Inc. Excluding the value of
the Company's investment in the securities of Amgen, Inc., the per share net
asset value increased 9.4% during the first nine months of 1996. During the
same period the Dow Jones Industrial Average, adjusted for dividends,
increased 16.9% and the Standard & Poor's 500 Stock Average, adjusted for
dividends, increased 13.5%. The per share net asset value on Friday, November
1, 1996 was $133.88.
The value of the Company's investment in securities of Amgen, Inc. has
increased since the date of acquisition relative to the Company's other
assets, causing the Amgen, Inc. securities to
account for 21.0% of the Company's total assets on September 30, 1996. The
investment of a substantial percentage of the Company's assets in the
securities of a single issuer or industry exposes the Company to a greater
risk of loss resulting from unfavorable price movements or market conditions
relating to such issuer or industry. To help reduce this risk, the Company has
been selling shares of Amgen, Inc. since the third quarter of 1992. On
September 30, 1992 the Company owned 1,240,000 shares of Amgen, Inc. (as
adjusted for the 2 for 1 stock split on August 16, 1995). On September 30,
1996 the Company owned 500,000 shares of Amgen, Inc. This is a reduction of
59.7% since September 30, 1992.
On January 24, 1994 the Company's Board of Directors authorized the Company
to purchase, on the American Stock Exchange, up to 62,500 shares of its
capital stock at market prices not in excess of the then current net asset
value per share. During the first nine months of 1996 the Company purchased
the remaining 13,700 shares of its capital stock under this authorization.
On February 26, 1996 the Company's Board of Directors authorized the Company
to purchase, on the American Stock Exchange, up to 50,000 shares of its
capital stock at market prices not in excess of the then current net asset
value per share. During the first nine months of 1996 the Company purchased
32,500 shares of its capital stock under this authorization. As of September
30, 1996 the Company had 17,500 shares remaining under this authorization.
During the first nine months of 1996 the Company had total interest and
dividend income of $1,367,804 as compared to $1,745,619 for the
<PAGE>
BERGSTROM CAPITAL CORPORATION
- -------------------------------------------------------------------------------
same period in 1995 for a decrease of $377,815. During the first nine months
of 1996 operating expenses were $859,125 which is a $9,775 increase from
$849,350 for the first nine months of 1995. The resulting net investment
income of $508,679 for the first nine months of 1996 is a decrease from
$896,269 for the first nine months of 1995. This resulted in a decrease to
$.44 per share versus $.74 per share.
During the third quarter the following changes were made in the Company's
portfolio of common stocks.
SHARES PURCHASED OR ACQUIRED
- ------------------------------------------------
<TABLE>
<C> <S>
9,000 Cisco Systems, Inc. (1)
9,000 Coca Cola Enterprises, Inc.
9,100 Computer Associates International, Inc.
7,500 E*Trade Group, Inc.
3,000 Ericsson L M Tel Co ADR
15,000 Flightsafety International, Inc.
4,720 Fresenius Medical Care AG ADR (2)
4,500 Fresenius Medical Care AG Class D
Preferred (2)
1,300 Gargoyles, Inc.
11,000 General Electric Co.
1,000 Guidant Corp.
14,000 Hewlett Packard Co. (3)
1,000 Medaphis Corp.
18,000 Melville Corp.
23,000 MCI Communications Corp.
31,000 MFS Communications, Inc.
5,000 Newbridge Networks Corp.
2,000 News Corp. LTD ADR New
7,000 Nine West Group, Inc.
6,000 Pacificare Health Systems, Inc. Class B
4,000 Pfizer, Inc.
25,000 Republic Industries, Inc.
5,000 Snap-On, Inc. (4)
17,000 Southwest Airlines Co.
1,100 Vivra Incorporated
1,000 Warner Lambert Co.
</TABLE>
SHARES SOLD, EXCHANGED, OR DISTRIBUTED
- ------------------------------------------------
<TABLE>
<C> <S>
226,240 The Adams Express Company (5)
65,000 Amgen, Inc.
10,000 Avon Products, Inc.
60,000 Block (H&R), Inc.
13,300 Danka Business Systems PLC Sponsored ADR
12,000 Digital Equipment Corp.
7,500 E*Trade Group, Inc.
11,900 Eskimo Pie Corporation
67,000 Fritz Companies, Inc.
6,000 Frontier Corp.
1,300 Gargoyles, Inc.
8,500 Grace (W. R.) & Co.
4,000 Grainger (W. W.), Inc.
3,700 Kimberly Clark Corp.
42,000 Loral Space & Communications LTD
8,000 Merck & Co., Inc.
12,000 Nordstrom, Inc.
9,000 Stratacom, Inc. (1)
25,000 Republic Industries, Inc.
17,000 Vodafone Group PLC Sponsored ADR
7,500 Xerox Corp.
</TABLE>
- -------
(1) 9,000 shares of Cisco Systems, Inc. were received in exchange for 9,000
shares of Stratacom, Inc. as a result of a merger.
(2) Received under a reorganization agreement between Grace (W.R.) & Company
and Fresenius AG. Cost basis in the amounts of $103,797 and $961 were
transferred from Grace (W.R.) & Company to Fresenius Medical Care AG and
Fresenius Medical Care AG Class D Preferred, respectively.
(3) Received as a two for one stock split.
(4) Received as a three for two stock split.
(5) Distributed as an in-kind dividend.
On September 20, 1996, the Company paid a cash dividend of $3.00 per share,
together with an in-kind distribution of one share of common stock of The
Adams Express Company ("ADX") for every five shares of the Company's capital
stock, to stockholders of record on August 22, 1996.
No fractional shares were distributed. Fractional shares were sold in the
open market on behalf of stockholders, and the cash received was distributed
in lieu of fractional shares.
<PAGE>
BERGSTROM CAPITAL CORPORATION
- -------------------------------------------------------------------------------
For federal income tax purposes, a stockholder realized income in the amount
of the cash dividend, plus the fair market value on September 20, 1996 of the
ADX stock distributed to the stockholder, including the fractional shares
allocated to the stockholder. The stockholder's basis in the ADX stock
distributed, including the fractional shares allocated, was the fair market
value on September 20, 1996. For federal income tax purposes, the fair market
value of the ADX stock was the mean between the highest and lowest selling
prices of ADX stock on September 20, 1996, which was $19.5625 per share.
The Company currently estimates that the sources of the cash dividend and
in-kind distribution will be $.61 per share from net investment income for the
year ending December 31, 1996, and $6.30 per share from net long-term capital
gains realized during the year ending December 31, 1996. The Company does not
intend to pay further dividends in 1996. No predictions can be made as to the
amounts of dividends in future years since the amount of dividends paid is
necessarily dependent on the Company's future net investment income and other
factors. Please refer to the Notice of Important Federal Income Tax
Information in this report regarding the Board of Directors election to retain
a portion of the net long-term capital gains realized during the year ending
December 31, 1996.
The Company does not have a dividend reinvestment program. The Company has
considered this over the years and has determined that the cost of such a
program would not be commensurate with the benefit. The Company's policy of
retaining all or a portion of the net long-term capital gains in certain years
accomplishes some of the same goals as would a dividend reinvestment program.
The Company's shares of capital stock are traded on the American Stock
Exchange and are identified by the stock ticker symbol BEM. The net asset
value per share as of Friday's close of business is published each Saturday in
Barrons, each Sunday in the New York Times, and each Monday in the Wall Street
Journal and certain other publications under "Closed-End Funds."
Your Company welcomes questions or comments from stockholders. If you wish
to communicate with the Company's transfer agent, State Street Bank and Trust
Company, the address is P.O. Box 8200, Boston, Massachusetts 02266-8200 and
the telephone number is 1-800-426-5523.
Yours very truly,
/s/ William L. McQueen
William L. McQueen
President
<PAGE>
BERGSTROM CAPITAL CORPORATION
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1996 (Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at value (see accompanying schedule):
Short-term investments (cost $8,355,000) $ 8,355,000
Common stocks (cost $69,149,553) 141,404,343
------------
TOTAL INVESTMENTS (COST $77,504,553) 149,759,343
Cash 5,644
Receivable for securities sold 142,432
Interest and dividends receivable 125,376
Other assets 10,509
------------
TOTAL ASSETS 150,043,304
------------
LIABILITIES:
Advisory fee payable 61,042
Payable for securities purchased 1,158,688
Other accrued expenses 32,489
------------
TOTAL LIABILITIES 1,252,219
------------
NET ASSETS applicable to 1,117,500 outstanding shares of capi-
tal stock equivalent to $133.15 per share on September 30,
1996 $148,791,085
============
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS (Unaudited)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30
1996 1995
<S> <C> <C>
OPERATIONS:
Net investment income $ 508,679 $ 896,269
Realized gain on investments 15,178,659 8,816,594
Increase (decrease) in unrealized appreciation (3,006,997) 26,326,578
------------ ------------
Net increase in net assets resulting from opera-
tions 12,680,341 36,039,441
DIVIDENDS TO STOCKHOLDERS ($6.9125 PER SHARE) (7,819,420)
COST OF SHARES OF BERGSTROM CAPITAL CORPORATION
STOCK PURCHASED (46,200 SHARES--1996; 27,900
SHARES--1995) (5,427,060) (2,840,910)
------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS (566,139) 33,198,531
NET ASSETS, BEGINNING OF PERIOD 149,357,224 114,680,269
------------ ------------
NET ASSETS, END OF PERIOD $148,791,085 $147,878,800
============ ============
</TABLE>
See also Notes to Financial Statements in the Company's 1996 Semi-Annual Report
to Stockholders.
<PAGE>
BERGSTROM CAPITAL CORPORATION
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 (Unaudited)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest $ 329,313
Dividends 1,038,491
-----------
TOTAL INCOME 1,367,804
-----------
EXPENSES:
Advisory fees 659,723
Legal fees 35,118
Auditing fees 41,200
Stockholders' meeting and reports 9,371
Transfer agent fees and expenses 28,114
Custodian fees 18,595
Directors' fees and expenses 38,407
Fee for shares listed on American Stock Exchange 5,250
State and other taxes 10,515
Other 12,832
-----------
TOTAL EXPENSES 859,125
-----------
NET INVESTMENT INCOME ($.44 PER SHARE) 508,679
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Realized gain on investments (excluding short-term
investments):
Proceeds from sales $47,022,094
Cost of securities sold 31,843,435
-----------
Realized gain on investments 15,178,659
Unrealized appreciation of investments:
Beginning of period 75,261,787
End of period 72,254,790
-----------
Decrease in unrealized appreciation (3,006,997)
-----------
NET GAIN ON INVESTMENTS ($10.63 PER SHARE) 12,171,662
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERA-
TIONS $12,680,341
===========
</TABLE>
See also Notes to Financial Statements in the Company's 1996 Semi-Annual Report
to Stockholders.
<PAGE>
BERGSTROM CAPITAL CORPORATION
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
September 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT COST VALUE
<C> <S> <C> <C>
SHORT-TERM INVESTMENTS (5.6%):
$8,355,000 State Street Bank and Trust Company,
4.875% Euro-Dollar Deposit due 10/01/96 $ 8,355,000 $ 8,355,000
---------- ----------- ------------
$8,355,000 TOTAL -- SHORT-TERM INVESTMENTS 8,355,000 8,355,000
========== ----------- ------------
COMMON STOCKS (94.4%):
ADVERTISING (0.9%):
27,500 Interpublic Group Of Companies, Inc. 851,484 1,299,375
----------- ------------
AEROSPACE AND DEFENSE (0.5%):
20,000 Sundstrand Corp. 505,395 780,000
----------- ------------
BANKS (2.8%):
4,000 Citicorp 325,388 362,500
23,000 Comerica, Inc. 744,004 1,184,500
30,000 Morgan (J.P.) & Co., Inc. 2,024,651 2,666,250
----------- ------------
3,094,043 4,213,250
----------- ------------
BEVERAGES (3.6%):
9,000 Coca Cola Enterprises, Inc. 326,523 407,250
80,000 Coca-Cola Co. 107,495 4,070,000
30,000 Pepsico, Inc. 807,640 847,500
----------- ------------
1,241,658 5,324,750
----------- ------------
BIOTECHNOLOGY (21.1%):
500,000 Amgen, Inc. (B) 2,612,249 31,562,500
----------- ------------
BUSINESS SERVICES (6.9%):
185,000 ADT Limited (B) 1,809,792 3,538,125
3,700 Danka Business Systems PLC Sponsored ADR 94,350 147,075
15,000 Flightsafety International, Inc. 664,154 669,375
135,000 Huntingdon International Holdings plc
ADR 741,765 995,625
131,322 Manpower, Inc. 2,250,241 4,366,457
25,500 Olsten Corp. 521,215 634,313
----------- ------------
6,081,517 10,350,970
----------- ------------
CHEMICALS (0.9%):
4,500 Grace (W.R.) & Co. 215,703 234,000
19,000 Hercules, Inc. 1,167,705 1,040,250
----------- ------------
1,383,408 1,274,250
----------- ------------
</TABLE>
<PAGE>
BERGSTROM CAPITAL CORPORATION
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT
COMMON STOCKS-CONTINUED COST VALUE
<C> <S> <C> <C>
COMMUNICATION SYSTEMS (2.9%):
10,000 Frontier Corp. $ 294,296 $ 266,250
38,000 MCI Communications Corp. 930,584 973,750
31,000 MFS Communications, Inc. 1,207,292 1,352,375
35,000 SBC Communications, Inc. 320,874 1,684,375
------------ ------------
2,753,046 4,276,750
------------ ------------
COMPUTERS AND INFORMATION (1.9%):
28,000 Hewlett Packard Co. 1,074,189 1,365,000
12,000 International Business Machines 1,087,868 1,494,000
------------ ------------
2,162,057 2,859,000
------------ ------------
COSMETICS/PERSONAL CARE (0.5%):
14,000 Avon Products, Inc. 418,369 694,750
------------ ------------
DIVERSIFIED TECHNOLOGY (0.7%):
23,000 Nokia Corp. Sponsored ADR 858,979 1,017,750
------------ ------------
DRUGS AND HEALTH SUPPLIES (7.3%):
13,100 Allergan, Inc. 420,402 499,438
30,000 Boston Scientific Corp. (B) 818,778 1,725,000
7,000 Forest Labs, Inc. 293,323 252,875
4,720 Fresenius Medical Care AG ADR 103,797 109,311
Fresenius Medical Care AG Class D
4,500 Preferred 961 450
20,001 Guidant Corp. 495,444 1,105,055
20,000 Johnson & Johnson 898,474 1,025,000
14,000 Merck & Co., Inc. 906,038 985,250
6,000 Pacificare Health Systems, Inc. Class B 447,295 519,000
13,000 Pfizer, Inc. 929,116 1,028,625
36,000 Pharmacia & Upjohn, Inc. (B) 1,377,690 1,485,000
31,000 Smithkline Beecham PLC ADR 1,295,975 1,887,125
10,100 Vivra Incorporated 336,525 329,513
------------ ------------
8,323,818 10,951,642
------------ ------------
ELECTRICAL COMPONENTS (1.3%):
11,000 Emerson Electric Co. 307,904 991,375
11,000 General Electric Co. 923,285 1,001,000
69,000 Micro-Metrics, Inc. (A, B, C) 227,700 24,994
------------ ------------
1,458,889 2,017,369
------------ ------------
</TABLE>
<PAGE>
BERGSTROM CAPITAL CORPORATION
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT
COMMON STOCKS-CONTINUED COST VALUE
<C> <S> <C> <C>
ELECTRONICS/NEW TECHNOLOGY (2.2%):
3,500 Cabletron Systems, Inc. (B) $ 266,770 $ 239,312
9,000 Cisco Systems, Inc. 499,208 558,562
19,000 Ericsson L M Tel Co ADR 355,968 482,125
13,000 Intel Corp. 776,776 1,240,687
12,000 Newbridge Networks Corp. 757,310 765,000
----------- ------------
2,656,032 3,285,686
----------- ------------
FINANCIAL SERVICES, DIVERSIFIED (0.6%):
25,000 Federal National Mortgage Association 645,849 871,875
----------- ------------
FOOD/FOOD PROCESSING (0.6%):
9,000 Dreyers Grand Ice Cream, Inc. 281,117 225,562
43,100 Eskimo Pie Corporation 761,131 711,150
----------- ------------
1,042,248 936,712
----------- ------------
HARDWARE AND TOOLS (0.3%):
15,000 Snap-On, Inc. 421,687 481,875
----------- ------------
HEALTH CARE SERVICES (0.1%):
15,000 Medaphis Corp. 635,213 225,000
----------- ------------
HOUSEHOLD PRODUCTS (DURABLE) (0.8%):
41,000 Newell Co. 864,047 1,230,000
----------- ------------
HOUSEHOLD PRODUCTS (NON-DURABLE) (1.6%):
8,000 Kimberly Clark Corp. 491,988 705,000
18,000 Proctor & Gamble Co. 858,330 1,755,000
----------- ------------
1,350,318 2,460,000
----------- ------------
INSURANCE (1.8%):
17,325 American International Group, Inc. 490,860 1,745,494
18,000 PMI Group, Inc. 818,585 956,250
----------- ------------
1,309,445 2,701,744
----------- ------------
LODGING (1.8%):
48,000 Marriott International, Inc. 1,357,311 2,646,000
----------- ------------
MEDIA (1.1%):
15,000 Disney (Walt) Co. 560,460 950,625
30,000 News Corp. LTD ADR New 669,818 626,250
----------- ------------
1,230,278 1,576,875
----------- ------------
</TABLE>
<PAGE>
BERGSTROM CAPITAL CORPORATION
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT
COMMON STOCKS-CONTINUED COST VALUE
<C> <S> <C> <C>
MEDICAL SUPPLIES (3.5%):
12,900 Abbott Laboratories $ 452,270 $ 635,325
100,000 Baxter International, Inc. 952,713 4,675,000
----------- ------------
1,404,983 5,310,325
----------- ------------
OFFICE EQUIPMENT (0.2%):
6,000 Xerox Corp. 207,196 321,750
----------- ------------
PETROLEUM SERVICES (0.7%):
15,000 Baker Hughes, Inc. 486,631 455,625
7,000 Schlumberger, Ltd. 523,562 591,500
----------- ------------
1,010,193 1,047,125
----------- ------------
PHARMACEUTICALS (4.6%):
16,000 Bristol-Myers Squibb Co. 430,822 1,542,000
39,000 Lilly Eli & Co. 1,351,106 2,515,500
14,000 Schering-Plough Corp. 487,839 861,000
29,000 Warner Lambert Co. 1,178,477 1,914,000
----------- ------------
3,448,244 6,832,500
----------- ------------
RECREATION - TOYS (0.4%):
17,000 Hasbro, Inc. 615,806 631,125
----------- ------------
RECREATION PRODUCTS (1.0%):
19,000 Eastman Kodak Co. 929,830 1,491,500
----------- ------------
REGULATED INVESTMENT COMPANIES (7.3%):
153,760 The Adams Express Company 2,887,441 3,094,420
Convertible Holdings, Inc. Capital
300,000 Shares 2,793,333 4,050,000
375,000 RCM Growth Equity Fund, Inc. 3,181,957 3,858,750
----------- ------------
8,862,731 11,003,170
----------- ------------
RESTAURANTS (2.7%):
61,000 Host Marriott Corp. 787,250 884,500
68,000 McDonalds Corp. 1,926,679 3,221,500
----------- ------------
2,713,929 4,106,000
----------- ------------
RETAIL TRADE (1.8%):
25,000 Crown Books Corporation (B) 309,500 246,875
22,000 Federated Department Stores, Inc. (B) 590,213 737,000
18,000 Hannaford Bros. Co. 448,648 585,000
18,000 Melville Corp. 795,955 794,250
7,000 Nine West Group, Inc. 324,408 379,750
----------- ------------
2,468,724 2,742,875
----------- ------------
</TABLE>
<PAGE>
BERGSTROM CAPITAL CORPORATION
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT
COMMON STOCKS-CONTINUED COST VALUE
<C> <S> <C> <C>
SOFTWARE AND PROCESSING (9.7%):
13,000 Automatic Data Processing, Inc. $ 285,181 $ 567,125
382,500 Boole & Babbage, Inc. (B) 340,000 9,562,500
9,100 Computer Associates International, Inc. 487,056 543,725
17,000 Electronic Data Systems Corp. 648,108 1,043,375
12,000 Microsoft Corp. (B) 999,600 1,582,500
28,000 Oracle Corporation 993,552 1,191,750
----------- ------------
3,753,497 14,490,975
----------- ------------
<CAPTION>
TRANSPORTATION SERVICES (0.3%):
<C> <S> <C> <C>
17,000 Southwest Airlines Co. 477,080 388,875
----------- ------------
TOTALS -- COMMON STOCKS 69,149,553 141,404,343
----------- ------------
TOTALS -- INVESTMENTS $77,504,553 $149,759,343
=========== ============
</TABLE>
(A) Company "affiliated" with the Corporation as defined in the Investment
Company Act of 1940.
(B) Presently non dividend paying.
(C) Venture security.
See also Notes to Financial Statements in the Company's 1996 Semi-Annual Report
to Stockholders.
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BOARD OF DIRECTORS
ERIK E. BERGSTROM GEORGE COLE SCOTT
Chairman Registered Representative
Anderson & Strudwick Incorporated
President
WILLIAM L. McQUEEN Closed-End Fund Advisors, Inc.
President and Treasurer
NORMAN R. NIELSEN C.H. WILLIAMS
Manager and Senior Member Retired Banker
of Research Staff
SRI International
OFFICERS
WILLIAM L. McQUEEN PAMELA A. FIORINI
President and Treasurer Secretary
ELIZABETH C. HEDLUND
Assistant Secretary
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BERGSTROM CAPITAL CORPORATION
505 Madison Street, Suite 220
Seattle, Washington 98104
(206) 623-7302
