SUPPLEMENT DATED
JANUARY 1, 1997
TO THE STATEMENT OF ADDITIONAL INFORMATION
FRANKLIN CUSTODIAN FUNDS, INC.
GROWTH SERIES, UTILITIES SERIES, DYNATECH SERIES,
INCOME SERIES, U.S. GOVERNMENT SECURITIES SERIES
DATED FEBRUARY 1, 1996
(AS PREVIOUSLY SUPPLEMENTED SEPTEMBER 16, 1996)
I. As of January 1, 1997, the Fund offers a third class of shares designated
"Advisor Class." DynaTech Series does not offer Advisor Class. This SAI
describes the Class I and Class II shares of the Fund.
All Fund shares outstanding before the offering of Advisor Class shares will
retain their previous rights and privileges.
Class I, Class II and Advisor Class shares differ as to sales charges, expenses
and services. Different fees and expenses will affect performance. Advisor Class
shares are described in a separate prospectus and SAI relating only to that
class. For more information concerning Advisor Class shares, contact your
investment representative or Distributors.
II. The discussion under "How Do I Buy and Sell Shares? - Letter of Intent" is
amended to remove the reference to Class II shares.
III. The discussion under "The Fund's Underwriter - Distribution Plans" is
amended by replacing the first paragraph with the following text:
Each Fund has adopted a distribution plan or "Rule 12b-1 plan" pursuant to Rule
12b-1 under the 1940 Act, with respect to its Class I and Class II shares (the
"Class I Plan(s)" and Class II Plan(s)," respectively, or "Plans(s)").
