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<PAGE> PAGE 8
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<PAGE> PAGE 9
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<PAGE> PAGE 12
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<PAGE> PAGE 14
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<PAGE> PAGE 15
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<PAGE> PAGE 16
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<PAGE> PAGE 17
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<PAGE> PAGE 18
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<PAGE> PAGE 19
069 000200 N
070 A010200 Y
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<PAGE> PAGE 20
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<PAGE> PAGE 21
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008 A000301 FRANKLIN ADVISERS, INC.
008 B000301 A
008 C000301 801-26292
008 D010301 SAN MATEO
008 D020301 CA
008 D030301 94404
008 D040301 1585
015 A000301 THE BANK OF NEW YORK
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015 C010302 BUENOS AIRES
015 D010302 ARGENTINA
015 E040302 X
015 A000303 NATIONAL AUSTRALIA BANK
015 B000303 S
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015 D010303 AUSTRALIA
015 E040303 X
015 A000304 BANK AUSTRIA AG
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015 D010304 AUSTRIA
015 E040304 X
015 A000305 BANQUE BRUXELLES LAMBERT
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015 E040305 X
015 A000306 ROYAL BANK OF CANADA
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015 A000307 STANDARD CHARTERED BANK (SHANGHAI)
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<PAGE> PAGE 22
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015 A000308 STANDARD CHARTERED BANK (SHENZHEN)
015 B000308 S
015 C010308 SHENZHEN
015 D010308 CHINA
015 E040308 X
015 A000309 DEN DANSKE BANK
015 B000309 S
015 C010309 COPENHAGEN
015 D010309 DENMARK
015 E040309 X
015 A000310 FIRST CHICAGO
015 B000310 S
015 C010310 LONDON
015 D010310 UNITED KINGDOM
015 E040310 X
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<PAGE> PAGE 23
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<PAGE> PAGE 24
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<PAGE> PAGE 25
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<PAGE> PAGE 26
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<PAGE> PAGE 27
070 H010300 Y
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<PAGE> PAGE 28
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008 A000401 FRANKLIN ADVISERS, INC.
008 B000401 A
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<PAGE> PAGE 29
008 D040401 1585
015 A000401 THE BANK OF NEW YORK
015 B000401 C
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015 E040403 X
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015 A000409 DEN DANSKE BANK
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<PAGE> PAGE 30
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<PAGE> PAGE 31
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<PAGE> PAGE 32
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<PAGE> PAGE 33
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<PAGE> PAGE 34
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<PAGE> PAGE 35
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<PAGE> PAGE 37
015 A000501 THE BANK OF NEW YORK
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<PAGE> PAGE 38
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<PAGE> PAGE 39
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SIGNATURE KIMBERLEY MONASTERIO
TITLE ASSISTANT TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FRANKLIN
CUSTODIAN FUNDS SEPTEMBER 30, 1998 ANNUAL REPORT AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 011
<NAME> FRANKLIN GROWTH SERIES - CLASS I
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 570,528,823
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<RECEIVABLES> 606,188,992
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
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<PAYABLE-FOR-SECURITIES> 23,770,646
<SENIOR-LONG-TERM-DEBT> 0
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<TOTAL-LIABILITIES> 40,431,309
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,110,613,227
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<SHARES-COMMON-PRIOR> 52,996,093
<ACCUMULATED-NII-CURRENT> 23,371,146
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,302,133
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 730,937,007
<NET-ASSETS> 1,867,223,513
<DIVIDEND-INCOME> 14,181,283
<INTEREST-INCOME> 33,365,990
<OTHER-INCOME> 0
<EXPENSES-NET> (16,903,624)
<NET-INVESTMENT-INCOME> 30,643,649
<REALIZED-GAINS-CURRENT> 2,337,429
<APPREC-INCREASE-CURRENT> 98,696,494
<NET-CHANGE-FROM-OPS> 131,677,572
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (25,162,491)
<DISTRIBUTIONS-OF-GAINS> (12,689,864)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 16,876,245
<NUMBER-OF-SHARES-REDEEMED> (13,907,716)
<SHARES-REINVESTED> 1,274,095
<NET-CHANGE-IN-ASSETS> 288,622,001
<ACCUMULATED-NII-PRIOR> 19,890,444
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<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (8,291,109)
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<GROSS-EXPENSE> (16,903,624)
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<PER-SHARE-NAV-BEGIN> 27.090
<PER-SHARE-NII> .490
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<PER-SHARE-DIVIDEND> (.470)
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FRANKLIN
CUSTODIAN FUNDS SEPTEMBER 30, 1998 ANNUAL REPORT AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 012
<NAME> FRANKLIN GROWTH SERIES - CLASS II
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 570,528,823
<INVESTMENTS-AT-VALUE> 1,301,465,830
<RECEIVABLES> 606,188,992
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,907,654,822
<PAYABLE-FOR-SECURITIES> 23,770,646
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 16,660,663
<TOTAL-LIABILITIES> 40,431,309
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,110,613,227
<SHARES-COMMON-STOCK> 6,744,216
<SHARES-COMMON-PRIOR> 4,391,009
<ACCUMULATED-NII-CURRENT> 23,371,146
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,302,133
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 730,937,007
<NET-ASSETS> 1,867,223,513
<DIVIDEND-INCOME> 14,181,283
<INTEREST-INCOME> 33,365,990
<OTHER-INCOME> 0
<EXPENSES-NET> (16,903,624)
<NET-INVESTMENT-INCOME> 30,643,649
<REALIZED-GAINS-CURRENT> 2,337,429
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<NET-CHANGE-FROM-OPS> 131,677,572
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,440,530)
<DISTRIBUTIONS-OF-GAINS> (1,116,441)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,446,754
<NUMBER-OF-SHARES-REDEEMED> (1,181,670)
<SHARES-REINVESTED> 88,123
<NET-CHANGE-IN-ASSETS> 288,622,001
<ACCUMULATED-NII-PRIOR> 19,890,444
<ACCUMULATED-GAINS-PRIOR> 14,022,601
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (8,291,109)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (16,903,624)
<AVERAGE-NET-ASSETS> 1,784,983,548
<PER-SHARE-NAV-BEGIN> 26.700
<PER-SHARE-NII> .290
<PER-SHARE-GAIN-APPREC> 1.660
<PER-SHARE-DIVIDEND> (.300)
<PER-SHARE-DISTRIBUTIONS> (.240)
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FRANKLIN
CUSTODIAN FUNDS SEPTEMBER 30, 1998 ANNUAL REPORT AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 013
<NAME> FRANKLIN GROWTH SERIES - ADVISOR CLASS
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
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<INVESTMENTS-AT-VALUE> 1,301,465,830
<RECEIVABLES> 606,188,992
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,907,654,822
<PAYABLE-FOR-SECURITIES> 23,770,646
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 16,660,663
<TOTAL-LIABILITIES> 40,431,309
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,110,613,227
<SHARES-COMMON-STOCK> 1,462,610
<SHARES-COMMON-PRIOR> 951,931
<ACCUMULATED-NII-CURRENT> 23,371,146
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,302,133
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 730,937,007
<NET-ASSETS> 1,867,223,513
<DIVIDEND-INCOME> 14,181,283
<INTEREST-INCOME> 33,365,990
<OTHER-INCOME> 0
<EXPENSES-NET> (16,903,624)
<NET-INVESTMENT-INCOME> 30,643,649
<REALIZED-GAINS-CURRENT> 2,337,429
<APPREC-INCREASE-CURRENT> 98,696,494
<NET-CHANGE-FROM-OPS> 131,677,572
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (559,926)
<DISTRIBUTIONS-OF-GAINS> (251,592)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 742,913
<NUMBER-OF-SHARES-REDEEMED> (261,759)
<SHARES-REINVESTED> 29,525
<NET-CHANGE-IN-ASSETS> 288,622,001
<ACCUMULATED-NII-PRIOR> 19,890,444
<ACCUMULATED-GAINS-PRIOR> 14,022,601
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (8,291,109)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (16,903,624)
<AVERAGE-NET-ASSETS> 1,784,983,548
<PER-SHARE-NAV-BEGIN> 27.130
<PER-SHARE-NII> .570
<PER-SHARE-GAIN-APPREC> 1.690
<PER-SHARE-DIVIDEND> (.520)
<PER-SHARE-DISTRIBUTIONS> (.240)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 28.630
<EXPENSE-RATIO> .650
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN CUSTODIAN FUNDS, INC. SEPTEMBER 30, 1998 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 021
<NAME> FRANKLIN DYNATECH SERIES - CLASS I
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 35,857,627
<INVESTMENTS-AT-VALUE> 122,755,546
<RECEIVABLES> 106,614,682
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 229,370,228
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,147,407
<TOTAL-LIABILITIES> 1,147,407
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 139,570,696
<SHARES-COMMON-STOCK> 12,102,717
<SHARES-COMMON-PRIOR> 10,177,494
<ACCUMULATED-NII-CURRENT> 2,410,194
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (655,988)
<ACCUM-APPREC-OR-DEPREC> 86,897,919
<NET-ASSETS> 228,222,821
<DIVIDEND-INCOME> 416,554
<INTEREST-INCOME> 4,922,360
<OTHER-INCOME> 0
<EXPENSES-NET> (2,172,910)
<NET-INVESTMENT-INCOME> 3,166,004
<REALIZED-GAINS-CURRENT> 2,646,405
<APPREC-INCREASE-CURRENT> 55,304
<NET-CHANGE-FROM-OPS> 5,867,713
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,752,624)
<DISTRIBUTIONS-OF-GAINS> (9,999,974)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 6,750,544
<NUMBER-OF-SHARES-REDEEMED> (5,425,966)
<SHARES-REINVESTED> 600,645
<NET-CHANGE-IN-ASSETS> 36,735,476
<ACCUMULATED-NII-PRIOR> 1,031,642
<ACCUMULATED-GAINS-PRIOR> 6,947,409
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (1,166,790)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (2,172,910)
<AVERAGE-NET-ASSETS> 207,387,886
<PER-SHARE-NAV-BEGIN> 18.480
<PER-SHARE-NII> .270
<PER-SHARE-GAIN-APPREC> .230
<PER-SHARE-DIVIDEND> (.170)
<PER-SHARE-DISTRIBUTIONS> (.970)
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 17.840
<EXPENSE-RATIO> 1.020
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN CUSTODIAN FUNDS, INC. SEPTEMBER 30, 1998 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 022
<NAME> FRANKLIN DYNATECH SERIES - CLASS II
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 35,857,627
<INVESTMENTS-AT-VALUE> 122,755,546
<RECEIVABLES> 106,614,682
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 229,370,228
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,147,407
<TOTAL-LIABILITIES> 1,147,407
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 139,570,696
<SHARES-COMMON-STOCK> 705,122
<SHARES-COMMON-PRIOR> 184,978
<ACCUMULATED-NII-CURRENT> 2,410,194
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (655,988)
<ACCUM-APPREC-OR-DEPREC> 86,897,919
<NET-ASSETS> 228,222,821
<DIVIDEND-INCOME> 416,554
<INTEREST-INCOME> 4,922,360
<OTHER-INCOME> 0
<EXPENSES-NET> (2,172,910)
<NET-INVESTMENT-INCOME> 3,166,004
<REALIZED-GAINS-CURRENT> 2,646,405
<APPREC-INCREASE-CURRENT> 55,304
<NET-CHANGE-FROM-OPS> 5,867,713
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (30,919)
<DISTRIBUTIONS-OF-GAINS> (253,737)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 664,798
<NUMBER-OF-SHARES-REDEEMED> (161,064)
<SHARES-REINVESTED> 16,410
<NET-CHANGE-IN-ASSETS> 36,735,476
<ACCUMULATED-NII-PRIOR> 1,031,642
<ACCUMULATED-GAINS-PRIOR> 6,947,409
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (1,166,790)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (2,172,910)
<AVERAGE-NET-ASSETS> 207,387,886
<PER-SHARE-NAV-BEGIN> 18.300
<PER-SHARE-NII> .150
<PER-SHARE-GAIN-APPREC> .170
<PER-SHARE-DIVIDEND> (.120)
<PER-SHARE-DISTRIBUTIONS> (.970)
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 17.530
<EXPENSE-RATIO> 1.790
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN CUSTODIAN FUNDS, INC. SEPTEMBER 30, 1998 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 031
<NAME> FRANKLIN UTILITIES SERIES - CLASS I
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 1,556,873,187
<INVESTMENTS-AT-VALUE> 2,014,717,244
<RECEIVABLES> 99,110,344
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,113,827,588
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 5,002,581
<TOTAL-LIABILITIES> 5,002,581
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,579,787,586
<SHARES-COMMON-STOCK> 180,802,369
<SHARES-COMMON-PRIOR> 194,534,988
<ACCUMULATED-NII-CURRENT> 7,661,465
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 63,531,899
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 457,844,057
<NET-ASSETS> 2,108,825,007
<DIVIDEND-INCOME> 90,436,284
<INTEREST-INCOME> 23,211,736
<OTHER-INCOME> 0
<EXPENSES-NET> (15,937,970)
<NET-INVESTMENT-INCOME> 97,710,050
<REALIZED-GAINS-CURRENT> 64,441,884
<APPREC-INCREASE-CURRENT> 243,719,485
<NET-CHANGE-FROM-OPS> 405,871,419
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (97,138,958)
<DISTRIBUTIONS-OF-GAINS> (49,822,909)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 20,202,105
<NUMBER-OF-SHARES-REDEEMED> (44,515,255)
<SHARES-REINVESTED> 10,580,531
<NET-CHANGE-IN-ASSETS> 124,926,346
<ACCUMULATED-NII-PRIOR> 8,991,193
<ACCUMULATED-GAINS-PRIOR> 49,733,605
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (9,617,382)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (15,937,970)
<AVERAGE-NET-ASSETS> 2,069,251,916
<PER-SHARE-NAV-BEGIN> 10.040
<PER-SHARE-NII> .520
<PER-SHARE-GAIN-APPREC> 1.580
<PER-SHARE-DIVIDEND> (.520)
<PER-SHARE-DISTRIBUTIONS> (.260)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.360
<EXPENSE-RATIO> .760
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN CUSTODIAN FUNDS, INC. SEPTEMBER 30, 1998 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 032
<NAME> FRANKLIN UTILITIES SERIES - CLASS II
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 1,556,873,187
<INVESTMENTS-AT-VALUE> 2,014,717,244
<RECEIVABLES> 99,110,344
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,113,827,588
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 5,002,581
<TOTAL-LIABILITIES> 5,002,581
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,579,787,586
<SHARES-COMMON-STOCK> 3,580,865
<SHARES-COMMON-PRIOR> 2,185,554
<ACCUMULATED-NII-CURRENT> 7,661,465
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 63,531,899
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 457,844,057
<NET-ASSETS> 2,108,825,007
<DIVIDEND-INCOME> 90,436,284
<INTEREST-INCOME> 23,211,736
<OTHER-INCOME> 0
<EXPENSES-NET> (15,937,970)
<NET-INVESTMENT-INCOME> 97,710,050
<REALIZED-GAINS-CURRENT> 64,441,884
<APPREC-INCREASE-CURRENT> 243,719,485
<NET-CHANGE-FROM-OPS> 405,871,419
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,326,251)
<DISTRIBUTIONS-OF-GAINS> (578,595)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,055,247
<NUMBER-OF-SHARES-REDEEMED> (799,899)
<SHARES-REINVESTED> 139,963
<NET-CHANGE-IN-ASSETS> 124,926,346
<ACCUMULATED-NII-PRIOR> 8,991,193
<ACCUMULATED-GAINS-PRIOR> 49,733,605
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (9,617,382)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (15,937,970)
<AVERAGE-NET-ASSETS> 2,069,251,916
<PER-SHARE-NAV-BEGIN> 10.020
<PER-SHARE-NII> .460
<PER-SHARE-GAIN-APPREC> 1.600
<PER-SHARE-DIVIDEND> (.470)
<PER-SHARE-DISTRIBUTIONS> (.260)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.350
<EXPENSE-RATIO> 1.280
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN CUSTODIAN FUNDS, INC. SEPTEMBER 30, 1998 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 033
<NAME> FRANKLIN UTILITIES SERIES - ADVISOR CLASS
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 1,556,873,187
<INVESTMENTS-AT-VALUE> 2,014,717,244
<RECEIVABLES> 99,110,344
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,113,827,588
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 5,002,581
<TOTAL-LIABILITIES> 5,002,581
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,579,787,586
<SHARES-COMMON-STOCK> 1,198,416
<SHARES-COMMON-PRIOR> 868,767
<ACCUMULATED-NII-CURRENT> 7,661,465
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 63,531,899
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 457,844,057
<NET-ASSETS> 2,108,825,007
<DIVIDEND-INCOME> 90,436,284
<INTEREST-INCOME> 23,211,736
<OTHER-INCOME> 0
<EXPENSES-NET> (15,937,970)
<NET-INVESTMENT-INCOME> 97,710,050
<REALIZED-GAINS-CURRENT> 64,441,884
<APPREC-INCREASE-CURRENT> 243,719,485
<NET-CHANGE-FROM-OPS> 405,871,419
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (572,152)
<DISTRIBUTIONS-OF-GAINS> (244,503)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,530,293
<NUMBER-OF-SHARES-REDEEMED> (1,262,420)
<SHARES-REINVESTED> 61,776
<NET-CHANGE-IN-ASSETS> 124,926,346
<ACCUMULATED-NII-PRIOR> 8,991,193
<ACCUMULATED-GAINS-PRIOR> 49,733,605
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (9,617,382)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (15,937,970)
<AVERAGE-NET-ASSETS> 2,069,251,916
<PER-SHARE-NAV-BEGIN> 10.040
<PER-SHARE-NII> .580
<PER-SHARE-GAIN-APPREC> 1.570
<PER-SHARE-DIVIDEND> (.540)
<PER-SHARE-DISTRIBUTIONS> (.260)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.390
<EXPENSE-RATIO> .630
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN CUSTODIAN FUNDS, INC. SEPTEMBER 30, 1998 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 041
<NAME> FRANKLIN INCOME SERIES - CLASS I
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 8,001,825,936
<INVESTMENTS-AT-VALUE> 8,264,577,888
<RECEIVABLES> 523,111,803
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 8,787,689,691
<PAYABLE-FOR-SECURITIES> 21,012,651
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 25,209,394
<TOTAL-LIABILITIES> 46,222,045
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 8,391,490,646
<SHARES-COMMON-STOCK> 3,296,719,226
<SHARES-COMMON-PRIOR> 3,106,620,788
<ACCUMULATED-NII-CURRENT> 42,789,225
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 44,327,902
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 262,859,873
<NET-ASSETS> 8,741,467,646
<DIVIDEND-INCOME> 194,904,119
<INTEREST-INCOME> 474,569,797
<OTHER-INCOME> 0
<EXPENSES-NET> (68,195,833)
<NET-INVESTMENT-INCOME> 601,278,083
<REALIZED-GAINS-CURRENT> 61,914,434
<APPREC-INCREASE-CURRENT> (499,281,870)
<NET-CHANGE-FROM-OPS> 163,910,647
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (580,116,095)
<DISTRIBUTIONS-OF-GAINS> (87,786,345)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 713,543,431
<NUMBER-OF-SHARES-REDEEMED> (688,362,366)
<SHARES-REINVESTED> 164,917,373
<NET-CHANGE-IN-ASSETS> 294,048,409
<ACCUMULATED-NII-PRIOR> 69,436,365
<ACCUMULATED-GAINS-PRIOR> 92,009,348
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (40,167,205)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (68,195,833)
<AVERAGE-NET-ASSETS> 8,868,367,612
<PER-SHARE-NAV-BEGIN> 2.490
<PER-SHARE-NII> .170
<PER-SHARE-GAIN-APPREC> (.110)
<PER-SHARE-DIVIDEND> (.180)
<PER-SHARE-DISTRIBUTIONS> (.030)
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 2.340
<EXPENSE-RATIO> .720
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN CUSTODIAN FUNDS, INC. SEPTEMBER 30, 1998 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 042
<NAME> FRANKLIN INCOME SERIES - CLASS II
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 8,001,825,936
<INVESTMENTS-AT-VALUE> 8,264,577,888
<RECEIVABLES> 523,111,803
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 8,787,689,691
<PAYABLE-FOR-SECURITIES> 21,012,651
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 25,209,394
<TOTAL-LIABILITIES> 46,222,045
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 8,391,490,646
<SHARES-COMMON-STOCK> 432,798,046
<SHARES-COMMON-PRIOR> 278,951,410
<ACCUMULATED-NII-CURRENT> 42,789,225
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 44,327,902
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 262,859,873
<NET-ASSETS> 8,741,467,646
<DIVIDEND-INCOME> 194,904,119
<INTEREST-INCOME> 474,569,797
<OTHER-INCOME> 0
<EXPENSES-NET> (68,195,833)
<NET-INVESTMENT-INCOME> 601,278,083
<REALIZED-GAINS-CURRENT> 61,914,434
<APPREC-INCREASE-CURRENT> (499,281,870)
<NET-CHANGE-FROM-OPS> 163,910,647
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (59,901,819)
<DISTRIBUTIONS-OF-GAINS> (8,459,296)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 195,225,220
<NUMBER-OF-SHARES-REDEEMED> (59,466,410)
<SHARES-REINVESTED> 18,087,826
<NET-CHANGE-IN-ASSETS> 294,048,409
<ACCUMULATED-NII-PRIOR> 69,436,365
<ACCUMULATED-GAINS-PRIOR> 92,009,348
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (40,167,205)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (68,195,833)
<AVERAGE-NET-ASSETS> 8,868,367,612
<PER-SHARE-NAV-BEGIN> 2.490
<PER-SHARE-NII> .160
<PER-SHARE-GAIN-APPREC> (.110)
<PER-SHARE-DIVIDEND> (.170)
<PER-SHARE-DISTRIBUTIONS> (.030)
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 2.340
<EXPENSE-RATIO> 1.220
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN CUSTODIAN FUNDS, INC. SEPTEMBER 30, 1998 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 043
<NAME> FRANKLIN INCOME SERIES - ADVISOR CLASS
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 8,001,825,936
<INVESTMENTS-AT-VALUE> 8,264,577,888
<RECEIVABLES> 523,111,803
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 8,787,689,691
<PAYABLE-FOR-SECURITIES> 21,012,651
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 25,209,394
<TOTAL-LIABILITIES> 46,222,045
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 8,391,490,646
<SHARES-COMMON-STOCK> 9,354,529
<SHARES-COMMON-PRIOR> 5,366,210
<ACCUMULATED-NII-CURRENT> 42,789,225
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 44,327,902
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 262,859,873
<NET-ASSETS> 8,741,467,646
<DIVIDEND-INCOME> 194,904,119
<INTEREST-INCOME> 474,569,797
<OTHER-INCOME> 0
<EXPENSES-NET> (68,195,833)
<NET-INVESTMENT-INCOME> 601,278,083
<REALIZED-GAINS-CURRENT> 61,914,434
<APPREC-INCREASE-CURRENT> (499,281,870)
<NET-CHANGE-FROM-OPS> 163,910,647
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,149,906)
<DISTRIBUTIONS-OF-GAINS> (152,675)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,656,243
<NUMBER-OF-SHARES-REDEEMED> (1,156,742)
<SHARES-REINVESTED> 488,818
<NET-CHANGE-IN-ASSETS> 294,048,409
<ACCUMULATED-NII-PRIOR> 69,436,365
<ACCUMULATED-GAINS-PRIOR> 92,009,348
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (40,167,205)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (68,195,833)
<AVERAGE-NET-ASSETS> 8,868,367,612
<PER-SHARE-NAV-BEGIN> 2.480
<PER-SHARE-NII> .170
<PER-SHARE-GAIN-APPREC> (.100)
<PER-SHARE-DIVIDEND> (.180)
<PER-SHARE-DISTRIBUTIONS> (.030)
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 2.340
<EXPENSE-RATIO> .570
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN CUSTODIAN FUNDS, INC. SEPTEMBER 30, 1998 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 051
<NAME> FRANKLIN U.S. GOVERNMENT SECURITIES SERIES - CLASS I
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 9,113,035,812
<INVESTMENTS-AT-VALUE> 9,446,098,355
<RECEIVABLES> 162,550,879
<ASSETS-OTHER> 11,978
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 9,608,661,212
<PAYABLE-FOR-SECURITIES> 218,338,802
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 32,520,217
<TOTAL-LIABILITIES> 250,859,019
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 9,350,962,526
<SHARES-COMMON-STOCK> 1,294,456,415
<SHARES-COMMON-PRIOR> 1,357,281,977
<ACCUMULATED-NII-CURRENT> 10,045,069
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (336,267,945)
<ACCUM-APPREC-OR-DEPREC> 333,062,543
<NET-ASSETS> 9,357,802,193
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 681,838,730
<OTHER-INCOME> 0
<EXPENSES-NET> (61,278,334)
<NET-INVESTMENT-INCOME> 620,560,396
<REALIZED-GAINS-CURRENT> (19,483,269)
<APPREC-INCREASE-CURRENT> 153,127,093
<NET-CHANGE-FROM-OPS> 754,204,220
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (605,836,717)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 166,821,011
<NUMBER-OF-SHARES-REDEEMED> (272,493,464)
<SHARES-REINVESTED> 42,846,891
<NET-CHANGE-IN-ASSETS> (128,236,362)
<ACCUMULATED-NII-PRIOR> 7,036,041
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (391,695,649)
<GROSS-ADVISORY-FEES> (42,190,481)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (61,278,334)
<AVERAGE-NET-ASSETS> 9,312,151,717
<PER-SHARE-NAV-BEGIN> 6.890
<PER-SHARE-NII> .460
<PER-SHARE-GAIN-APPREC> .100
<PER-SHARE-DIVIDEND> (.460)
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 6.990
<EXPENSE-RATIO> .650
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN CUSTODIAN FUNDS, INC. SEPTEMBER 30, 1998 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 052
<NAME> FRANKLIN U.S. GOVERNMENT SECURITIES SERIES - CLASS II
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 9,113,035,812
<INVESTMENTS-AT-VALUE> 9,446,098,355
<RECEIVABLES> 162,550,879
<ASSETS-OTHER> 11,978
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 9,608,661,212
<PAYABLE-FOR-SECURITIES> 218,338,802
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 32,520,217
<TOTAL-LIABILITIES> 250,859,019
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 9,350,962,526
<SHARES-COMMON-STOCK> 38,976,870
<SHARES-COMMON-PRIOR> 17,586,866
<ACCUMULATED-NII-CURRENT> 10,045,069
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (336,267,945)
<ACCUM-APPREC-OR-DEPREC> 333,062,543
<NET-ASSETS> 9,357,802,193
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 681,838,730
<OTHER-INCOME> 0
<EXPENSES-NET> (61,278,334)
<NET-INVESTMENT-INCOME> 620,560,396
<REALIZED-GAINS-CURRENT> (19,483,269)
<APPREC-INCREASE-CURRENT> 153,127,093
<NET-CHANGE-FROM-OPS> 754,204,220
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (10,286,891)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 28,331,456
<NUMBER-OF-SHARES-REDEEMED> (7,961,919)
<SHARES-REINVESTED> 1,020,467
<NET-CHANGE-IN-ASSETS> (128,236,362)
<ACCUMULATED-NII-PRIOR> 7,036,041
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (391,695,649)
<GROSS-ADVISORY-FEES> (42,190,481)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (61,278,334)
<AVERAGE-NET-ASSETS> 9,312,151,717
<PER-SHARE-NAV-BEGIN> 6.870
<PER-SHARE-NII> .420
<PER-SHARE-GAIN-APPREC> .100
<PER-SHARE-DIVIDEND> (.420)
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 6.970
<EXPENSE-RATIO> 1.210
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN CUSTODIAN FUNDS, INC. SEPTEMBER 30, 1998 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 053
<NAME> FRANKLIN U.S. GOVERNMENT SECURITIES SERIES - ADVISOR CLASS
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 9,113,035,812
<INVESTMENTS-AT-VALUE> 9,446,098,355
<RECEIVABLES> 162,550,879
<ASSETS-OTHER> 11,978
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 9,608,661,212
<PAYABLE-FOR-SECURITIES> 218,338,802
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 32,520,217
<TOTAL-LIABILITIES> 250,859,019
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 9,350,962,526
<SHARES-COMMON-STOCK> 5,187,786
<SHARES-COMMON-PRIOR> 2,097,990
<ACCUMULATED-NII-CURRENT> 10,045,069
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (336,267,945)
<ACCUM-APPREC-OR-DEPREC> 333,062,543
<NET-ASSETS> 9,357,802,193
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 681,838,730
<OTHER-INCOME> 0
<EXPENSES-NET> (61,278,334)
<NET-INVESTMENT-INCOME> 620,560,396
<REALIZED-GAINS-CURRENT> (19,483,269)
<APPREC-INCREASE-CURRENT> 153,127,093
<NET-CHANGE-FROM-OPS> 754,204,220
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,427,760)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 6,196,861
<NUMBER-OF-SHARES-REDEEMED> (3,283,856)
<SHARES-REINVESTED> 176,791
<NET-CHANGE-IN-ASSETS> (128,236,362)
<ACCUMULATED-NII-PRIOR> 7,036,041
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (391,695,649)
<GROSS-ADVISORY-FEES> (42,190,481)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (61,278,334)
<AVERAGE-NET-ASSETS> 9,312,151,717
<PER-SHARE-NAV-BEGIN> 6.900
<PER-SHARE-NII> .470
<PER-SHARE-GAIN-APPREC> .100
<PER-SHARE-DIVIDEND> (.470)
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 7.000
<EXPENSE-RATIO> .560
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees of
Franklin Custodian Funds, Inc.
In planning and performing our audit of the financial
statements of Franklin Custodian Funds, Inc. for the year
ended September 30, 1998, we considered its internal
control, including controls over 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 NSAR, not to provide
assurance on internal control.
The management of Franklin Custodian Funds, Inc. 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, errors
or irregularities may occur and may 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 the internal control would not
necessarily disclose all matters in the 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 any specific internal control
component does not reduce to a relatively low level the risk
that errors or irregularities 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, including controls over 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 Securities and Exchange Commission.
S\PRICEWATERHOUSECOOPERS LLP
PricewaterhouseCoopers LLP
San Francisco, California
October 30, 1998
