<PAGE>
GENERAL AMERICAN INVESTORS
COMPANY, INC.
FIRST QUARTER REPORT
MARCH 31, 1996
A Closed-End Investment Company
listed on the New York Stock Exchange
450 LEXINGTON AVENUE
NEW YORK, N.Y. 10017
212-916-8400 1-800-436-8401
<PAGE>
TO THE STOCKHOLDERS
- --------------------------------------------------------------------------------
General American Investors Company had a banner first quarter. The improvement
in relative performance which began in last year's second half has continued.
Superior results were achieved, furthermore, while maintaining prudent levels of
liquidity and pursuing our share repurchase program aggressively.
For the three months ended March 31, 1996, the time-weighted rate of return
(including income but excluding expenses) on the net assets of the Company was
8.6%. By comparison, the rate of return (including income) for the Standard &
Poor's 500 Stock Index was 5.4%. For the twelve months ended March 31, 1996, the
return for the Company was 28.6%; this compares to a return of 32.0% for the S&P
500.
The net assets of the Company as of March 31, 1996, as set forth in the
accompanying financial statements (unaudited), were $597,656,328, equal to
$25.69 per share of Common Stock.
The increase in net assets resulting from operations for the three months was
$45,964,105. Net realized gain on securities sold was $17,060,881 of which
$16,152,791 ($.69 per share) was long-term; the increase in unrealized
appreciation was $27,801,485. Net investment income for the three months was
$1,101,739.
During the three months, 701,987 shares of the Company's Common Stock were
repurchased for $14,352,877 at an average discount from net asset value of
15.6%.
We are pleased to report that, on March 13, 1996, at the Company's Annual
Meeting, the Stockholders (1) elected fourteen directors, including Ms. Victoria
Hamilton, our Executive Vice-President and Chief Operating Officer, as a new
Director, (2) ratified the selection of Ernst & Young LLP as auditors of the
Company for the year 1996 and (3) rejected the shareholder proposal relating to
the conversion of the Company from closed-end status to an open-end mutual fund.
Of the votes cast on the shareholder proposal (61% of the shares outstanding),
81.8% voted against the conversion. We strongly believe that the outcome of this
vote is in the best long-term interests of all of our Stockholders.
As indicated in the 1995 annual report, at the organization meeting of the Board
of Directors immediately following the annual meeting of Stockholders, Mr.
William T. Golden and Dr. William O. Baker were designated Directors Emeriti in
recognition of their extraordinary service to the Company during their tenure on
the Board which amounted to 35 years and 13 years, respectively. We, again,
express gratitude and deepest appreciation for their long and distinguished
service to the Company.
By Order of the Board of Directors,
GENERAL AMERICAN INVESTORS COMPANY, INC.
Spencer Davidson
President and Chief Executive Officer
<PAGE>
2 STATEMENT OF ASSETS AND LIABILITIES March 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
General American Investors
<TABLE>
<CAPTION>
ASSETS
- -------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENTS, AT VALUE ( NOTE 1a )
General portfolio securities (cost $285,547,508) $513,619,580
Corporate discount notes (cost $84,222,911) 84,222,911
------------
597,842,491
CASH, RECEIVABLES AND OTHER ASSETS
Cash ................................................ $ 61,629
Receivable for securities sold ...................... 2,948,472
Dividends, interest and other receivables ........... 3,505,963
Other ............................................... 871,834 7,387,898
----------- -----------
TOTAL ASSETS .......................................... 605,230,389
LIABILITIES
- -------------------------------------------------------------------------------------
Payable for securities purchased ................... 4,090,144
Accrued expenses and other liabilities ............. 3,483,917
------------
TOTAL LIABILITIES ..................................... 7,574,061
------------
NET ASSETS ............................................ $597,656,328
============
NET ASSETS
- -------------------------------------------------------------------------------------
Common Stock, $1 par value (note 2)
Authorized 30,000,000 shares; outstanding
(exclusive of 853,687 shares in
Treasury)23,260,729 shares .................... $ 23,260,729
Paid-in Capital ( note 2 ) ......................... 330,069,881
Undistributed realized gain on securities sold ..... 16,912,568
Distributions in excess of net income .............. (658,922)
Unrealized appreciation on investments (including
aggregate gross unrealized appreciation of
$238,155,010) ................................... 228,072,072
------------
TOTAL NET ASSETS ...................................... $597,656,328
============
NET ASSET VALUE PER SHARE ............................. $ 25.69
============
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months
Ended Year Ended
March 31, 1996 December 31,
OPERATIONS (Unaudited) 1995
- --------------------------------------------------------------------------------
<S> <C> <C>
Net investment income ..................... $ 1,101,739 $ 1,961,039
Net realized gain on sales of securities .. 17,060,881 63,862,317
Net increase in unrealized appreciation ... 27,801,485 42,984,363
------------- -------------
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ................. 45,964,105 108,807,719
------------- -------------
DISTRIBUTIONS TO STOCKHOLDERS
- --------------------------------------------------------------------------------
From net income, including
short-term capital gain ................. (197,936) (2,633,530)
From long-term capital gain ............... (7,450,389) (65,253,760)
In excess of net income ................... -- (180,371)
------------- -------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS .... (7,648,325) (68,067,661)
------------- -------------
CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------
Value of Common Shares issued in payment
of dividends (note 2) ................... -- 41,998,878
Cost of Common Shares purchased (note 2) .. (14,352,877) (28,767,670)
------------- -------------
INCREASE (DECREASE) IN NET ASSETS -
CAPITAL TRANSACTIONS ...................... (14,352,877) 13,231,208
------------- -------------
NET INCREASE IN NET ASSETS ................... 23,962,903 53,971,266
NET ASSETS
- --------------------------------------------------------------------------------
BEGINNING OF PERIOD .......................... 573,693,425 519,722,159
------------- -------------
END OF PERIOD (including distributions in
excess of net income of $658,922 and
$1,562,725, respectively) ................. $ 597,656,328 $ 573,693,425
============= =============
<FN>
( see notes to financial statements )
</FN>
</TABLE>
<PAGE>
3 STATEMENT OF OPERATIONS Three Months Ended March 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
General American Investors
<TABLE>
<CAPTION>
INCOME
- --------------------------------------------------------------------------------
<S> <C> <C>
Dividends (net of foreign withholding taxes
of $35,444) ................................. $ 1,438,782
Interest ...................................... 1,092,876
Investment advisory fees (note 1d) ............ 87,491 $2,619,149
-----------
EXPENSES
- --------------------------------------------------------------------------------
Investment research ........................... 614,093
Administration and operations ................. 469,364
Office space and general ...................... 179,198
Directors' fees and expenses .................. 68,478
Transfer agent, custodian and registrar
fees and expenses ........................... 76,800
Auditing and legal fees ....................... 56,410
Stockholders' meeting and reports ............. 25,367
Miscellaneous taxes (note 1c) ................. 27,700 1,517,410
--------- ---------
NET INVESTMENT INCOME ............................ 1,101,739
REALIZED GAIN AND CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS (NOTES 1e AND 4)
- -----------------------------------------------------------------------------------
Net realized gain on sales of securities
(long-term, except for $908,090) ............. 17,060,881
Net increase in unrealized appreciation ........ 27,801,485
------------
NET GAIN ON INVESTMENTS ......................... 44,862,366
------------
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ..................... $45,964,105
============
</TABLE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The following table shows per share operating performance data, total investment
return, ratios and supplemental data for the three months ended March 31, 1996
and the year ended December 31, 1995. This information has been derived from
information contained in the financial statements and market price data for the
Company's shares.
<TABLE>
<CAPTION>
Three Months
Ended Year Ended
March 31, 1996 December 31,
(Unaudited) 1995
-------- --------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ............ $ 23.94 $ 22.31
-------- --------
Net investment income ....................... .05 .08
Net gain (loss) on securities -
realized and unrealized .................. 2.02 4.54
-------- --------
Total from investment operations ................ 2.07 4.62
-------- --------
Less distributions
Dividends from investment income ............ (.01) (.11)*
Distributions from capital gains ............ (.31) (2.87)
In excess of net income ..................... -- (.01)
-------- --------
Total distributions ............................. (.32) (2.99)
-------- --------
Net asset value, end of period .................. $ 25.69 $ 23.94
======== ========
Per Share market value, end of period ........... $ 21.625 $ 20.00
======== ========
TOTAL INVESTMENT RETURN - Stockholder
Return, based on market price per share ..... 9.89%** 21.22%
RATIOS AND SUPPLEMENTAL DATA
Total net assets, end of period (000's omitted) . $597,656 $573,693
Ratio of expenses to average net assets ***...... 0.26%** 1.25%
Ratio of net income to average net assets ....... 0.19%** 0.36%
Portfolio turnover rate ......................... 12.51%** 29.14%
Average commission rate paid .................... $ .0500
Shares outstanding, end of period (000's omitted) 23,261 23,963
<FN>
* Includes short-term capital gain in the amount of $.03 per share.
** Not annualized.
*** The ratio of expenses, exclusive of expenses attributable to the
advisory accounts which are managed directly by the Company, to
average net assets was 0.25% for the three months ended March 31, 1996
and 1.12% for 1995.
(see notes to financial statements)
</FN>
</TABLE>
<PAGE>
4 STATEMENT OF INVESTMENTS March 31, 1996 (Unaudited)
- -------------------------------------------------------------------------------
General American Investors
<TABLE>
<CAPTION>
STOCKS SHARES OR VALUE
ISSUER PRINCIPAL AMOUNT (NOTE 1a)
<S> <C> <C>
COMMUNICATIONS AND INFORMATION SERVICES (5.6%)
Comcast UK Cable Partners Limited Class A + ...... 250,000 $ 3,156,250
International CableTel Incorporated + ............ 172,000 5,181,500
Reuters Holdings Plc-ADR ......................... 229,000 14,913,625
TeleWest Communications Plc-ADR + ................ 110,000 2,365,000
Vodafone Group Plc-ADR ........................... 43,500 1,631,250
Wolters Kluwer NV-ADR ............................ 55,000 6,056,875
----------
(COST $16,415,725) ....... -- 33,304,500
----------
COMPUTER SOFTWARE AND SYSTEMS (2.5%)
Avid Technology, Inc.+ ............................. 298,000 6,258,000
Cisco Systems, Inc.+ ............................... 183,000 8,486,625
----------
(COST $7,563,131) .......... -- 14,744,625
----------
CONSUMER PRODUCTS AND SERVICES (12.9%)
AAPC Ltd. ......................................... 8,345,000 4,823,410
Brinker International Inc.+ ....................... 236,500 3,961,375
Buffets, Inc.+ .................................... 1,444,000 20,577,000
The Cheesecake Factory Incorporated+ .............. 194,000 5,238,000
Chrysler Corporation .............................. 120,000 7,470,000
The Walt Disney Company ........................... 65,500 4,183,813
Ford Motor Company ................................ 400,000 13,750,000
Hormel Foods Corporation .......................... 255,000 6,693,750
PepsiCo, Inc. ..................................... 168,000 10,626,000
----------
(COST $59,750,301) ........ -- 77,323,348
----------
ELECTRONICS (1.8%)
Sensormatic Electronics Corporation ............... 523,000 10,590,750
----------
(COST $7,904,934)
ENVIRONMENTAL CONTROL
(INCLUDING SERVICES) (3.0%)
USA Waste Services, Inc.+ ......................... 505,500 12,890,250
Western Waste Industries+ ......................... 129,000 4,918,125
----------
(COST $11,236,633) ........ -- 17,808,375
----------
FINANCE AND INSURANCE (17.7%)
Alexander Haagen Properties, Inc. .................. 143,000 1,644,500
American International Group, Inc. ................. 130,500 12,218,063
Banco Popular Espanol, S.A. ........................ 16,000 2,764,000
Crestar Financial Corp. ............................ 156,000 8,970,000
First Empire State Corporation ..................... 56,500 13,899,000
General Re Corporation ............................. 84,500 12,315,875
Golden West Financial Corporation .................. 168,500 9,035,812
JDN Realty Corporation ............................. 62,500 1,338,875
Life Re Corporation ................................ 310,500 8,383,500
Prudential Reinsurance Holdings, Inc. .............. 125,500 2,964,937
TIG Holdings, Inc. ................................. 202,500 6,581,250
Transatlantic Holdings, Inc. ....................... 156,500 10,681,125
U.S. Bancorp ....................................... 357,500 12,155,000
Walden Residential Properties ...................... 126,500 2,767,188
-----------
(COST $54,671,349) ......... -- 105,719,125
-----------
HEALTH CARE (23.0%)
PHARMACEUTICALS (11.7%)
AB Astra Class A .................................. 319,500 14,816,813
AB Astra Class B .................................. 326,500 15,019,000
Alpha-Beta Technology, Inc.+ ...................... 292,000 3,650,000
BioChem Pharma Inc.+ .............................. 156,000 6,396,000
Pfizer Inc. ....................................... 372,000 25,017,000
Vertex Pharmaceuticals Incorporated+ .............. 183,500 4,862,750
----------
(COST $26,703,890) ........ -- 69,761,563
----------
MEDICAL INSTRUMENTS AND DEVICES
(2.5%)
Medtronic, Inc. .................................. 253,000 15,085,125
-----------
(COST $4,041,642) ........ --
HEALTH CARE SERVICES (8.8%)
Applied Bioscience International Inc.+ ........... 1,036,000 9,453,500
Caremark International Inc. ...................... 300,000 7,537,500
Huntingdon International Holdings Plc-ADR+ ....... 669,500 4,100,687
United Healthcare Corporation .................... 254,500 15,651,750
U.S. Healthcare, Inc. ............................ 348,000 15,964,500
-----------
(COST $41,032,730) ........ -- 52,707,937
-----------
(COST $71,778,262) ........ -- 137,554,625
-----------
</TABLE>
<PAGE>
5 STATEMENT OF INVESTMENTS March 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
General American Investors
<TABLE>
<CAPTION>
STOCKS (continued) SHARES OR VALUE
ISSUER PRINCIPAL AMOUNT (NOTE 1a)
<S> <C> <C>
MISCELLANEOUS (4.7%)
Manpower Inc. .................................... 176,000 $ 5,456,000
Other ............................................ -- 22,677,725
----------
(COST $24,833,909) ....... -- 28,133,725
----------
OIL & NATURAL GAS (INCLUDING SERVICES) (2.3%)
Repsol, S.A.-ADR ................................. 306,000 11,436,750
Texaco Inc. ...................................... 99,500 8,532,125
----------
(COST $17,420,521) ...... -- 19,968,875
----------
RETAIL TRADE (9.8%)
Giordano Holdings Limited - ADR .................. 304,500 3,151,575
The Home Depot, Inc. ............................. 765,500 36,552,625
Wal-Mart Stores, Inc. ............................ 825,000 18,975,000
----------
(COST $5,533,693) ........ -- 58,679,200
----------
SPECIAL HOLDINGS #+ (note 6) (0.7%)
Microbiological Associates, Inc. Preferred Series D 456,829 456,829
Microbiological Associates, Inc. Preferred Series E 384,242 384,242
Sequoia Capital IV ................................ ++ 349,200
Tempest Reinsurance Company Limited ............... 15,000 1,586,415
Warburg, Pincus Capital Partners, L.P. ............ ++ 1,509,546
Welsh, Carson, Anderson & Stowe III ............... ++ 202,200
---------
(COST $5,026,611) ......... -- 4,488,432*
---------
TRANSPORTATION (0.9%)
Werner Enterprises, Inc. ......................... 221,000 5,304,000
---------
(COST $3,412,439) ........ --
TOTAL STOCKS (85.9%) (COST $285,547,508) ...... 513,619,580
------------
SHORT-TERM SECURITIES AND OTHER ASSETS
- --------------------------------------------------------------------------------
Ford Motor Credit Company notes
due 4/4-4/8/96; 5.21%-5.23% $15,650,000 15,580,074
General Electric Capital Corp. notes
due 4/8-4/29/96; 5.23%-5.39% 19,650,000 19,572,652
General Motors Acceptance Corp. notes
due 4/1-4/18/96; 5.25%-5.39% 22,800,000 22,695,356
Sears Roebuck Acceptance Corp. notes
due 4/15-4/29/96; 5.28%-5.37% 26,500,000 26,374,829
-------------
(COST $84,222,911) 84,222,911
Liabilities in excess of cash, receivables and other assets ( 186,163)
-------------
TOTAL SHORT-TERM SECURITIES AND OTHER ASSETS, NET (14.1%) 84,036,748
-------------
NET ASSETS (COST $369,584,256) $597,656,328
=============
<FN>
+Non-income producing security. # Restricted security.
++ A limited partnership interest. * Fair value of each holding in the opinion of the Directors.
(see notes to financial statements)
</FN>
</TABLE>
<PAGE>
6 NOTES TO FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
General American Investors
1. SIGNIFICANT ACCOUNTING POLICIES
General American Investors Company, Inc. (the "Company"), established in 1927,
is registered under the Investment Company Act of 1940 as a closed-end,
diversified management investment company. It is internally managed by its
officers under the direction of the Board of Directors. The Company is also
registered under the Investment Advisers Act of 1940 as an investment adviser.
a. SECURITY VALUATION Securities traded on securities exchanges or on the NASDAQ
National Market System are valued at the last reported sales price on the last
business day of the period. Listed and NASDAQ securities for which no sales are
reported on that day and other securities traded in the over-the-counter market
are valued at the last bid price on the valuation date. Corporate discount notes
are valued at amortized cost, which approximates market value. Special holdings
are valued at fair value in the opinion of the Directors. In determining fair
value, in the case of restricted shares, consideration is given to cost,
operating and other financial data and, where applicable, subsequent private
offerings or market price of the issuer's unrestricted shares (to which a 30
percent discount is applied); for limited partnership interests, fair value is
based upon an evaluation of the partnership's net assets.
b. INVESTMENT IN CONTROLLED AFFILIATE On January 1, 1996, the investment in the
Company's wholly owned subsidiary, General American Advisers, Inc., was
eliminated when its business operations were transferred to the Company. This
transfer was accounted for as a combination of businesses under common control.
c. FEDERAL INCOME TAXES The Company's policy is to fulfill the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all taxable income to its stockholders. Accordingly, no
provision for Federal income taxes is required.
d. INVESTMENT ADVISORY FEES Income from fees (charged, generally, at the annual
rate of 1/2% of assets under management, computed quarterly) is recorded as the
related advisory services are performed by the Company.
e. OTHER As customary in the investment company industry, securities
transactions are recorded as of the trade date. Dividend income and
distributions to stockholders are recorded as of the ex-dividend dates.
2. COMMON STOCK AND DIVIDEND DISTRIBUTIONS
Transactions in Common Stock during 1996 and 1995 were as follows:
<TABLE>
<CAPTION>
SHARES AMOUNT
----------------------- ----------------------------
1996 1995 1996 1995
----------------------- ----------------------------
<S> <C> <C> <C> <C>
Shares issued in payment of dividends ................... -- 2,092,369 -- $ 2,092,369
Increase in paid-in capital ............................. -- 39,906,509
------------ ------------
Total increase .................................... -- 41,998,878
------------ ------------
Shares purchased (at an average discount from net asset
value of 15.6% and 16.5%, respectively) ............... 701,987 1,421,424 ($ 701,987) (1,421,424)
Decrease in paid-in capital ............................. (13,650,890) (27,346,246)
------------ ------------
Total decrease .................................... (14,352,877) (28,767,670)
------------ ------------
Net increase (decrease) ................................. ($14,352,877) $ 13,231,208
============ ============
</TABLE>
The cost of the 853,687 shares of Common Stock held in Treasury at March 31,
1996 amounted to $17,422,737.
Dividends in excess of net income for financial statement purposes result
primarily from transactions where tax treatment differs from book treatment.
3. OFFICERS' COMPENSATION AND RETIREMENT AND THRIFT PLANS
The aggregate compensation paid by the Company during the three months ended
March 31, 1996 to its officers amounted to $599,814.
The Company has non-contributory retirement plans and a contributory thrift plan
which cover substantially all employees. The costs to the Company and the assets
and liabilities of the plans are not material. Costs of the plans are funded
currently.
4. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (other than short-term securities) during the
three months ended March 31, 1996 were $62,070,674 and $92,171,764,
respectively. At March 31, 1996, the cost of investments for Federal income tax
purposes was the same as the cost for financial reporting purposes.
<PAGE>
7 NOTES TO FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
General American Investors
5. GENERAL INFORMATION
Brokerage commissions during the three months ended March 31, 1996 were
$169,921, including $31,482 paid to Goldman, Sachs & Co. The Chairman Emeritus
of the Company is a limited partner of The Goldman Sachs Group, L.P. which is an
affiliate of Goldman, Sachs & Co.
6. RESTRICTED SECURITIES
<TABLE>
<CAPTION>
DATE VALUE
ACQUIRED COST (NOTE 1a)
-------- ---------- ----------
<S> <C> <C> <C>
Microbiological Associates, Inc. Preferred Series D 12/20/91 $ 861,500 $ 456,829
Microbiological Associates, Inc. Preferred Series E 12/20/91 449,300 384,242
Sequoia Capital IV* ............................... 1/31/84 1,198,310 349,200
Tempest Reinsurance Company Limited ............... 9/15/93 1,500,000 1,586,415
Warburg, Pincus Capital Partners, L.P.* ........... 10/04/83 154,872 1,509,546
Welsh, Carson, Anderson & Stowe III* .............. 3/10/83 362,329 202,200
Other ............................................. 500,300 --
---------- ----------
Total ............................................. $5,026,611 $4,488,432
========== ==========
<FN>
* The amounts shown are net of distributions from these limited partnership
interests which, in the aggregate, amounted to $4,402,163, $3,725,979 and
$3,395,781, respectively. The initial investment in each limited partnership was
$2,000,000.
</FN>
</TABLE>
7. OPERATING LEASE COMMITMENT
In July 1992, the Company entered into an operating lease agreement for new
office space which expires in 2007 and provides for future rental payments in
the aggregate amount of approximately $5.6 million. The lease agreement contains
a clause whereby the Company received twenty months of free rent beginning in
December 1992 and escalation clauses relating to operating costs and real
property taxes.
Minimum rental commitments under the operating lease are approximately $331,000
per annum in 1996 through 1997, $403,000 per annum in 1998 through 2002, and
$504,000 per annum in 2003 through 2007.
In March 1996, the Company entered into a sublease agreement which expires in
2003 and provides for future rental receipts beginning in November 1996. Minimum
rental receipts under the sublease are approximately $28,000 in 1996, $167,000
in 1997, $203,000 per annum in 1998 through 2002 and $64,000 in 2003. The
Company will also receive its proportionate share of operating expenses and real
property taxes under the sublease.
<PAGE>
8 MAJOR STOCK CHANGES* Three Months Ended March 31, 1996 (UNAUDITED)
- -------------------------------------------------------------------------------
General American Investors
<TABLE>
<CAPTION>
Shares Held
INCREASES SHARES MARCH 31, 1996
- --------------------------------------------------------------------------------------------------------
NEW POSITIONS
<S> <C> <C>
Giordano Holdings Limited - ADR -- 304,500 +
Repsol, S.A. - ADR 306,000 306,000
Vodafone Group Plc - ADR -- 43,500 +
ADDITIONS
Alpha-Beta Technology, Inc. 80,000 292,000
Avid Technology, Inc. 211,500 298,000
Buffets, Inc. 100,000 1,444,000
The Cheesecake Factory Incorporated 26,000 194,000
Chrysler Corporation 80,000 120,000
Ford Motor Company 40,000 400,000
Vertex Pharmaceuticals Incorporated 25,000 183,500
Western Waste Industries 54,000 129,000
DECREASES
- --------------------------------------------------------------------------------------------------------
ELIMINATIONS
Ann Taylor Stores Corporation 75,000 --
Biogen, Inc. 36,000 --
Ethan Allen Interiors, Inc. 268,500 --
Perrigo Company 218,500 --
Stewart Enterprises, Inc. Class A 104,500 --
SUGEN, Inc. 28,888 --
REDUCTIONS
American International Group, Inc. 65,000 130,500
BioChem Pharma Inc. 30,000 156,000
Brinker International Inc. 260,000 236,500
The Walt Disney Company 5,000 65,500
JDN Realty Corporation 56,000 62,500
Manpower Inc. 10,000 176,000
Medtronic, Inc. 20,000 253,000
PepsiCo, Inc. 35,000 168,000
Pfizer Inc. 20,000 372,000
Reuters Holdings Plc - ADR 60,000 229,000
Sensormatic Electronics Corporation 142,000 523,000
Texaco Inc. 70,000 99,500
TIG Holdings, Inc. 35,000 202,500
United Healthcare Corporation 70,000 254,500
USA Waste Services, Inc. 186,500 505,500
U.S. Bancorp 10,000 357,500
U.S. Healthcare, Inc. 90,000 348,000
Wolters Kluwer NV - ADR 10,000 55,000
<FN>
* Excludes transactions in Stocks - Miscellaneous - Other.
+ Shares purchased in prior period and previously carried under
Stocks - Miscellaneous - Other.
</FN>
</TABLE>
- --------------------------------------------------------------------------------
In addition to purchases of the Company's Common Stock as set forth in Note 2 on
page 6, purchases of Common Stock may be made at such times, at such prices, in
such amounts and in such manner as the Board of Directors may deem advisable.
<PAGE>
DIRECTORS
- --------------------------------------------------------------------------------
Lawrence B. Buttenwieser, Chairman
Malcolm B. Smith, Vice-Chairman
Arthur G. Altschul, Jr.
Lewis B. Cullman
Spencer Davidson
Gerald M. Edelman
Anthony M. Frank
John D. Gordan, III
Bill Green
Victoria Hamilton
Sidney R. Knafel
Richard R. Pivirotto
Joseph T. Stewart, Jr.
Raymond S. Troubh
Arthur G. Altschul, Chairman Emeritus
William O. Baker, Director Emeritus
William T. Golden, Director Emeritus
OFFICERS
- --------------------------------------------------------------------------------
Spencer Davidson, President & Chief Executive Officer
Victoria Hamilton, Executive Vice-President & Chief Operating Officer
S. Lawrence Feit, Senior Vice-President
John J. Smith, Vice-President
Andrew V. Vindigni, Vice-President
Eugene L. DeStaebler, Jr., Vice-President, Administration
Peter P. Donnelly, Vice-President & Trader
Diane G. Radosti, Treasurer
Carole Anne Clementi, Secretary
SERVICE COMPANIES
- --------------------------------------------------------------------------------
COUNSEL
Sullivan & Cromwell
INDEPENDENT AUDITORS
Ernst & Young LLP
CUSTODIAN
Bankers Trust Company
TRANSFER AGENT AND REGISTRAR
Chemical Mellon Shareholder Services, L.L.C.
Overpeck Centre
85 Challenger Road
Ridgefield Park, NJ 07660
1-800-413-5499
