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<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 5,976,205
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 981,527,132
<SHARES-COMMON-STOCK> 78,355,226
<SHARES-COMMON-PRIOR> 67,589,394
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 136,872,494
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (86,235,570)
<NET-ASSETS> (145,944,620)
<DIVIDEND-INCOME> 9,857,636
<INTEREST-INCOME> 5,397,823
<OTHER-INCOME> 0
<EXPENSES-NET> 20,201,512
<NET-INVESTMENT-INCOME> (4,946,053)
<REALIZED-GAINS-CURRENT> 150,641,304
<APPREC-INCREASE-CURRENT> (392,297,749)
<NET-CHANGE-FROM-OPS> (246,602,498)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (128,615,860)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 864,798,421
<NUMBER-OF-SHARES-REDEEMED> (813,331,700)
<SHARES-REINVESTED> 124,093,166
<NET-CHANGE-IN-ASSETS> (199,658,471)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 119,793,103
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 9,138,728
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 20,201,512
<AVERAGE-NET-ASSETS> 678,462,000
<PER-SHARE-NAV-BEGIN> 17.64
<PER-SHARE-NII> (0.12)
<PER-SHARE-GAIN-APPREC> (3.04)
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (1.85)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 12.63
<EXPENSE-RATIO> 1.92
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000318531
<NAME> PRUDENTIAL SMALL COMPANIES FUND, INC.
<SERIES>
<NUMBER> 004
<NAME> SMALL COMPANIES FUND (CLASS Z)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 1,118,203,304
<INVESTMENTS-AT-VALUE> 1,031,967,734
<RECEIVABLES> 8,272,821
<ASSETS-OTHER> 23,826
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 2,124,120
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 5,976,205
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 981,527,132
<SHARES-COMMON-STOCK> 78,355,226
<SHARES-COMMON-PRIOR> 67,589,394
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 136,872,494
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (86,235,570)
<NET-ASSETS> (145,944,620)
<DIVIDEND-INCOME> 9,857,636
<INTEREST-INCOME> 5,397,823
<OTHER-INCOME> 0
<EXPENSES-NET> 20,201,512
<NET-INVESTMENT-INCOME> (4,946,053)
<REALIZED-GAINS-CURRENT> 150,641,304
<APPREC-INCREASE-CURRENT> (392,297,749)
<NET-CHANGE-FROM-OPS> (246,602,498)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (128,615,860)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 864,798,421
<NUMBER-OF-SHARES-REDEEMED> (813,331,700)
<SHARES-REINVESTED> 124,093,166
<NET-CHANGE-IN-ASSETS> (199,658,471)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 119,793,103
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 9,138,728
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 20,201,512
<AVERAGE-NET-ASSETS> 154,623,000
<PER-SHARE-NAV-BEGIN> 19.04
<PER-SHARE-NII> 0.04
<PER-SHARE-GAIN-APPREC> (3.31)
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (1.85)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 13.92
<EXPENSE-RATIO> 0.92
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000318531
<NAME> PRUDENTIAL SMALL COMPANIES FUND, INC.
<SERIES>
<NUMBER> 003
<NAME> SMALL COMPANIES FUND (CLASS C)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 1,118,203,304
<INVESTMENTS-AT-VALUE> 1,031,967,734
<RECEIVABLES> 8,272,821
<ASSETS-OTHER> 23,826
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 0
<PAYABLE-FOR-SECURITIES> 2,124,120
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 5,976,205
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 981,527,132
<SHARES-COMMON-STOCK> 78,355,226
<SHARES-COMMON-PRIOR> 67,589,394
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 136,872,494
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (86,235,570)
<NET-ASSETS> (145,944,620)
<DIVIDEND-INCOME> 9,857,636
<INTEREST-INCOME> 5,397,823
<OTHER-INCOME> 0
<EXPENSES-NET> 20,201,512
<NET-INVESTMENT-INCOME> (4,946,053)
<REALIZED-GAINS-CURRENT> 150,641,304
<APPREC-INCREASE-CURRENT> (392,297,749)
<NET-CHANGE-FROM-OPS> (246,602,498)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (128,615,860)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 864,798,421
<NUMBER-OF-SHARES-REDEEMED> (813,331,700)
<SHARES-REINVESTED> 124,093,166
<NET-CHANGE-IN-ASSETS> (199,658,471)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 119,793,103
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 9,138,728
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 20,201,512
<AVERAGE-NET-ASSETS> 29,259,000
<PER-SHARE-NAV-BEGIN> 17.64
<PER-SHARE-NII> (0.12)
<PER-SHARE-GAIN-APPREC> (3.04)
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (1.85)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 12.63
<EXPENSE-RATIO> 1.92
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
For the year ended (a) September 30, 1998
File number (c) 811-3084
SUB-ITEM 77J
Restatement of Capital Share Account
The Fund accounts and reports for distributions to
shareholders in accordance with the
American Institute of Certified Public Accountants' Statement of
Position 93-2: Determination,
Disclosure, and Financial Statement Presentation of Income,
Capital Gain, and Return Capital
Distributions by Investment Companies. The effect of applying
this statement was to increase
undistributed net investment income and decrease accumulated net
realized gain on investments
by $4,946,053 for net operating losses during the fiscal year
ended September 30, 1998. Net
investment income, net realized gains and net assets were not
affected by this change.
To the Shareholders and Board of Directors of
Prudential Small Company Value Fund, Inc.
(2)
Report of Independent Accountants
To the Shareholders and Board of Directors of
Prudential Small Company Value Fund, Inc.
In planning and performing our audit of the financial
statements of Prudential Small Company Value Fund, Inc. (the
"Fund") for the year ended September 30, 1998, we considered
its internal control, including controls 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, errors
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
September 30, 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
November 20, 1998
