<PAGE>
GENERAL
AMERICAN
INVESTORS
1995 ANNUAL REPORT
<PAGE>
GENERAL AMERICAN INVESTORS COMPANY, INC.
Established in 1927, the Company is a closed-end investment company listed
on the New York Stock Exchange. Its objective is long-term capital appreciation
through investment in companies with above average growth potential.
FINANCIAL SUMMARY
- - -------------------------------------------------------------------
<TABLE>
<CAPTION>
1995 1994
---- ----
<S> <C> <C>
Net assets-December 31 .................... $ 573,693,425 $ 519,722,159
Net investment income ..................... 1,961,039 1,120,006
Net realized gain ......................... 63,862,317 36,008,556
Net increase (decrease)
In unrealized appreciation ............. 42,984,363 (54,306,884)
Per Common Share-December 31
Net asset value ........................ $ 23.94 $ 22.31
Market price ........................... $ 20.00 $ 19.00
Discount from net asset value ............. -16.50% -14.80%
Common Shares outstanding ................. 23,962,716 23,291,771
Common stockholders of record ............. 6,960 7,528
Market price range* (high-low) ............ $21.88-$18.75 $22.75-$18.75
Market volume-shares ...................... 6,421,800 4,129,300
<FN>
*Unadjusted for dividend payments.
</FN>
</TABLE>
DIVIDEND SUMMARY
- - ----------------------------------------------------------------------------
Distributions Applicable to Income Earned and Gains Realized in 1995
<TABLE>
<CAPTION>
Ordinary Long-Term
Record Date /Payment Date Income Capital Gain Total
- - ------------------------- ------ ------------ -----
<S> <C> <C> <C>
Nov. 13, 1995 / Dec. 21, 1995 .............. $ .12* $ 2.46 $ 2.58
Jan. 22, 1996 /Feb. 12, 1996 ............... .01 .31 .32
------- -------- --------
Total ...................................... $ .13* $ 2.77 $ 2.90
======= ======== ========
<FN>
*Includes short-term capital gain in the amount of $.03 per share.
</FN>
</TABLE>
Distributions Applicable to Income Earned and Gains Realized in 1994
<TABLE>
<CAPTION>
Ordinary Long-Term
Record Date / Payment Date Income Capital Gain Total
- - -------------------------- ------ ------------ -----
<S> <C> <C> <C>
Nov. 14, 1994 / Dec. 22, 1994 ............ $ .06 $ 1.18 $ 1.24
Jan. 23, 1995 / Mar. 13, 1995 ............ -- .41 .41
------- -------- --------
Total .................................... $ .06 $ 1.59 $ 1.65
======= ======== ========
</TABLE>
General American Investors Company, Inc.
450 Lexington Avenue, New York, NY 10017
(212) 916-8400 (800) 436-8401
<PAGE>
1 TO THE STOCKHOLDERS
- - -------------------------------------------------------------------------------
General American Investors
General American Investors had a good year in 1995. Our net asset value rose by
23.1%, on a total return basis, well above the Company's average annual return
for the past 20 years of 16.6%. While our results for the full year trailed the
extraordinary 37.5% gain for the Standard & Poor's 500 Stock Index, relative
performance improved in the second half of the year.
<TABLE>
<CAPTION>
GAM S&P 500
<S> <C> <C>
First Half ............................... 7.9% 20.1%
Second Half .............................. 14.1 14.5
Full Year ................................ 23.1 37.5
</TABLE>
A new management was elected and took office on August 9th. The combination of
carefully controlled costs and significantly higher investment income has
resulted in sharply improved net income. In a continuing effort to maximize
shareholder value, our stock repurchase program was executed aggressively.
During the year, approximately 6% of the Company's common stock was repurchased
at an average discount from net asset value of 16.5%.
As the new year unfolds, the slowing of the economy is likely to continue and
corporate profits, generally, are expected to moderate. Interest rates should
remain at reasonable levels and inflation should continue in check. Our
portfolio should perform well. It is dominated by high quality companies whose
growth is largely independent of broad economic trends, and by financially
oriented businesses that tend to benefit from a favorable interest rate
environment. Our cash cushion of around 13%, while reflecting some current
caution, should allow us to respond rapidly to future opportunities.
We are focused on enhancing the value of the portfolio for the shareholders and
we thank you for your continuing support.
Mr. Harold J. Kingsberg retired as Executive Vice-President on December 31, 1995
and became a financial consultant to the Company on January 1, 1996. In
addition, he will not be standing for reelection as a Director at the annual
meeting on March 13, 1996. Mr. Kingsberg joined the Company in 1963 as a
Vice-President and was elected to the Board in 1980. Mr. William T. Golden, who
became a Director in 1961, and Dr. William O. Baker, who joined the Board in
1983, will also be stepping down as Directors at the time of the annual meeting
in March. Mr. Golden and Dr. Baker have agreed to serve as Directors Emeriti
after that date. We express gratitude and deepest appreciation for the long and
distinguished services each of these gentlemen provided to the Company and we
are pleased that we will continue to have access to their counsel.
As mentioned in the mid-year report, on May 10, 1995, Mr. Arthur G. Altschul
retired as Chairman of the Board and as a Director of the Company. In
recognition of his service of 43 years to the Company, his leadership as a
Chairman during the last 34 years and the high esteem in which he is held, the
Directors named him Chairman Emeritus.
By Order of the Board of Directors, GENERAL AMERICAN INVESTORS COMPANY, INC.
Spencer Davidson
President and Chief Executive Officer
<PAGE>
2 THE COMPANY
- - -------------------------------------------------------------------------------
General American Investors
Corporate Overview
General American Investors, established in 1927, is one of the nation's oldest
closed-end investment companies. It is an independent organization, internally
managed. For regulatory purposes, the Company is classified as a diversified,
closed-end management investment company; it is registered under and subject to
the regulatory provisions of the Investment Company Act of 1940.
In addition, General American Investors is an investment adviser registered
under the Investment Advisers Act of 1940. It provides investment management
services to outside accounts whose objectives are compatible with those of the
Company.
Investment Policy
The Primary objective of the Company is long-term capital appreciation. Lesser
emphasis is placed on current income. In seeking to achieve its primary
objective, the Company invests principally in common stocks believed by its
management to have better than average growth potential. Normally, a
substantially fully-invested position in equities is maintained.
The Company's investment approach focuses on the selection of individual stocks,
each of which is expected to meet a clearly defined portfolio objective using a
three-year time horizon. A continuous investment research program, with the
stress on fundamental security analysis, is carried on by the officers and staff
of the Company under the oversight of the Board of Directors. A listing of the
directors with their principal affiliations, which cover a broad range of
experience in business and financial affairs, is on page 16 of this report.
Portfolio Manager
Mr. Spencer Davidson has been responsible for the management of General
American's portfolio since he was elected President and Chief Executive Officer
of the Company in August 1995. Mr. Davidson, who joined the Company in 1994 as
senior investment counselor, has spent his entire business career on Wall Street
since first joining an investment and banking firm in 1966.
"GAM" Common Stock
As a closed-end investment company, General American Investors is not engaged in
a continuous offering of its shares. The common stock is listed on The New York
Stock Exchange (symbol, GAM) and can be bought or sold with commissions
determined in the same manner as all listed stocks. Net asset value is computed
daily (on an unaudited basis) and is furnished upon request. The figure for net
asset value per share, together with the market price and the percentage
discount or premium from net asset value as of the close of each week, is
published in The New York Times, The Wall Street Journal and Barron's.
The ratio of market price to net asset value has shown considerable variation
over a period of time. While shares of GAM frequently sell at a discount from
their underlying net asset value, they, periodically, and as recently as early
1993, have sold at a premium over net asset value. During 1995, the stock sold
at discounts from net asset value which ranged from 10.2% (April 20) to 18.4%
(October 12). At December 31, the price of the stock was at a discount of 16.5%
as compared with a discount of 14.8% a year earlier.
<PAGE>
3 THE COMPANY
- - -------------------------------------------------------------------------------
General American Investors
[CAPTION]
"The Company's investment objective is long-term capital appreciation.
Fundamental security analysis is used to select individual stocks considered to
have above average growth potential using a three-year time horizon."
Dividend Policy
The Company's dividend policy is to distribute to stockholders before year-end
substantially all ordinary income estimated for the full year and capital gains
realized during the ten-month period ending October 31 of that year. If any
additional capital gains are realized during the last two months of the year, a
"spill-over" distribution of these amounts will be paid early in the following
year. Dividends from income have been paid continuously on the common stock
since 1939 and capital gain dividends in varying amounts have been paid for each
of the years 1943-1995 (except for the year 1974). (A table listing dividends
paid during the 20-year period 1976 -1995 is shown at the bottom of page 6.) To
the extent that full shares can be issued, dividends are paid in additional
shares of common stock unless the stockholder specifically requests payments in
cash. Spill-over dividends of nominal amounts are paid in cash only.
Investment Advisory Services
In addition to managing General American Investors' own portfolio, the Company
is engaged in managing, on a discretionary basis, investment accounts for three
advisory clients. In general, the clients are educational institutions for whom
a portion of the endowment funds is managed. As of December 31, 1995, the
aggregate value of the advisory accounts under management was approximately $48
million.
<PAGE>
4 INVESTMENT RESULTS
- - -------------------------------------------------------------------------------
General American Investors
[CAPTION]
"Total return on $10,000 investment 20 years ended December 31, 1995"
The investment return for a stockholder of General American Investors (GAM) over
the 20 years ended December 31, 1995 is shown in the table below and in the
accompanying chart. The return on GAM's total net assets in comparison to the
change in the Standard & Poor's 500 Stock Index (S&P 500) is also displayed.
Each illustration assumes an investment of $10,000 at the beginning of 1976.
The Stockholder Return is the actual return a shareholder of GAM would have
achieved assuming reinvestment of all optional dividends at the actual
reinvestment price and reinvestment of all cash dividends at the average (mean
between high and low) market price on the ex-dividend date.
The GAM Total Net Assets Return is the time-weighted total rate of return on the
Company's total net assets assuming monthly compounding of total net assets,
including dividend and interest income but excluding advisory fee income and
operating expenses, and after adjustments for cash flows such as GAM dividends
and purchases of GAM shares.
The S&P 500 Return is the time-weighted total rate of return on this
widely-recognized, unmanaged index which is a measure of general stock market
performance, including dividend income.
The results illustrated are a record of past performance and may not be
indicative of future results.
<TABLE>
<CAPTION>
GENERAL AMERICAN INVESTORS
------------------------------------------------------
STOCKHOLDER RETURN TOTAL NET ASSETS RETURN STANDARD & POOR'S 500 RETURN
------------------ ----------------------- ----------------------------
CUMULATIVE ANNUAL RETURN CUMULATIVE ANNUAL RETURN CUMULATIVE ANNUAL RETURN
INVESTMENT INVESTMENT INVESTMENT
<S> <C> <C> <C> <C> <C> <C>
1976 $ 13,652 36.52% $ 12,294 22.94% $ 12,394 23.94%
1977 14,291 4.68 12,696 3.27 11,505 (7.17)
1978 15,126 5.84 15,224 19.91 12,262 6.58
1979 24,868 64.41 21,744 42.83 14,543 18.60
1980 42,759 71.95 31,553 45.11 19,262 32.45
1981 48,414 13.22 32,578 3.25 18,305 (4.97)
1982 57,752 19.29 38,345 17.70 22,250 21.55
1983 67,174 16.31 47,248 23.22 27,267 22.55
1984 62,361 (7.16) 43,624 (7.67) 28,980 6.28
1985 77,833 24.81 59,264 35.85 38,186 31.77
1986 86,529 11.17 65,564 10.63 45,323 18.69
1987 72,586 (16.11) 66,114 0.84 47,698 5.24
1988 88,018 21.26 76,501 15.71 55,583 16.53
1989 130,792 48.60 104,630 36.77 73,158 31.62
1990 136,020 4.00 111,484 6.55 70,898 (3.09)
1991 251,640 85.00 180,470 61.88 92,451 30.40
1992 288,827 14.78 189,565 5.04 99,468 7.59
1993 242,859 (15.92) 187,215 (1.24) 109,534 10.12
1994 223,758 (7.86) 182,890 (2.31) 110,925 1.27
1995 271,246 21.22 225,119 23.09 152,522 37.50
</TABLE>
<PAGE>
5 INVESTMENT RESULTS
- - -------------------------------------------------------------------------------
General American Investors
[Line graph with heading "20-YEAR INVESTMENT RESULTS ASSUMING AN INITIAL
INVESTMENT OF $10,000" at top left hand side. The vertical axis is to the right
side of the page and is labeled "CUMULATIVE VALUE OF INVESTMENT." The axis range
is from $0 to $350,000 in $25,000 increments. The horizontal axis, on the bottom
of the page, consists of the years 1976 through 1995 in one year increments.
Within the graph are three lines. The first line represents GAM Stockholder
Return. The second line represents GAM Total Net Assets, and the third line
represents the S&P 500 Stock Index. The data points for the lines are derived
from the columns labeled "Cumulative Investment" from the table on the preceding
page. Also, embedded in upper left portion of the graph is a table which appears
as follows:]
<TABLE>
<CAPTION>
COMPARATIVE ANNUALIZED INVESTMENT RESULTS
- - --------------------------------------------------------------------------------------
YEARS ENDED STOCKHOLDER GAM TOTAL S&P 500
DECEMBER 31, 1995 RETURN NET ASSETS STOCK INDEX
- - ----------------- ------ ---------- -----------
<S> <C> <C> <C>
1 year ..................... 21.2% 23.1% 37.5%
5 years .................... 14.8 15.1 16.6
10 years .................... 13.3 14.3 14.9
15 years .................... 13.1 14.0 14.8
20 years .................... 17.9 16.6 14.6
</TABLE>
<PAGE>
6 MAJOR STOCK CHANGES*: THREE MONTHS ENDED DECEMBER 31, 1995 (UNAUDITED)
- - -------------------------------------------------------------------------------
General American Investors
<TABLE>
<CAPTION>
INCREASES SHARES DECEMBER 31, 1995
- - --------------------------------------------------------------------------------------------------------
NEW POSITIONS
<S> <C> <C>
Chrysler Corporation 40,000 40,000
Life Re Corporation 310,500 310,500
Prudential Reinsurance Holdings, Inc. 125,500 125,500
U.S. Bancorp 367,500 # 367,500
Western Waste Industries 75,000 75,000
ADDITIONS
AAPC Ltd. 2,625,000 8,345,000
BioChem Pharma Inc. 30,000 186,000
Caremark International Inc. 24,000 300,000
Ford Motor Company 93,000 360,000 +
Huntingdon International Holdings PLC-ADR 19,000 669,500
Sensormatic Electronics Corporation 89,500 665,000
USA Waste Services, Inc. 25,000 692,000
DECREASES
- - --------------------------------------------------------------------------------------------------------
ELIMINATIONS
Bed Bath & Beyond Inc. 176,500 --
Carnival Corp. Class A 109,500 --
Luxottica Group S.p.A.-ADR 86,000 --
Nine West Group Inc. 30,500 --
Philips-Van Huesen Corporation 132,000 --
Unocal Corporation 376,500 --
Value Health, Inc. 70,500 --
West One Bancorp 250,000 # --
REDUCTIONS
Alpha-Beta Technology, Inc. 80,000 212,000
Ann Taylor Stores Corporation 155,500 75,000
Avid Technology, Inc. 50,000 86,500
Biogen, Inc. 50,000 36,000
Brinker International Inc. 61,000 496,500
Buffets, Inc. 30,000 1,344,000
The Walt Disney Company 30,500 70,500
PepsiCo, Inc. 38,500 203,000
Perrigo Company 16,500 218,500
Stewart Enterprises, Inc. Class A 30,000 104,500
United Healthcare Corporation 73,000 324,500
U.S. Healthcare, Inc. 28,500 438,000
Werner Enterprises, Inc. 113,500 221,000
Wolters Kluwer NV-ADR 64,000 65,000
<FN>
* Excludes transactions in Stocks - Miscellaneous - Other.
+ Includes shares purchased in prior period and previously carried under
Stocks - Miscellaneous - Other.
# 367,500 shares of U.S. Bancorp were received in exchange for 250,000 shares of
West One Bancorp in conjunction with a merger.
</FN>
</TABLE>
[CAPTION]
"The following table shows aggregate dividends paid per share on the Company's
Common Stock for each year during the 20-year period 1976-1995. Amounts shown
include payments made after year-end attributable to income and gain in each
respective year."
DIVIDENDS PER COMMON SHARE (1976-1995)
- - -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DIVIDEND FROM
LONG-TERM
YEAR INCOME # CAPITAL GAINS
- - ---- ------- -------------
<S> <C> <C>
1976 $.24 $.98
1977 .22 .70
1978 .28 .94
1979 .38 1.74
1980 .50 2.99
1981 .63 3.63
1982 .36 1.15
1983 .67 2.38
1984 .28 1.35
1985 .47 1.07
1986 .36 2.15
1987 .35 1.54
1988 .29 1.69
1989 .23 1.56
1990 .21 1.65
1991 .09 3.07
1992 .03 2.93
1993 .06 2.34
1994 .06 1.59
1995 .13 2.77
<FN>
#Includes short-term capital gains per share which amounted to $.04 in 1980,
$.08 in 1981, $.28 in 1983, $.12 in 1985, $.02 in 1989 and $.03 in 1995.
</FN>
</TABLE>
<PAGE>
7 TEN LARGEST INVESTMENT HOLDINGS
- - -------------------------------------------------------------------------------
General American Investors
[CAPTION]
"The statement of investments as of December 31, 1995, shown on pages 8 and 9
includes 61 stock issues. Listed here are the ten largest stock holdings on
that date."
<TABLE>
<CAPTION>
% TOTAL
SHARES VALUE NET ASSETS
<S> <C> <C> <C>
THE HOME DEPOT, INC. 765,500 $ 36,552,625 6.4%
The leading company in home retailing, Home Depot's innovative merchandising,
strong balance sheet and excellent management has enabled the Company to gain
share in a fragmented industry.
- - --------------------------------------------------------------------------------------- ------------ ------------ ----
AB ASTRA 646,000 25,758,375 4.5
A prescription drug company headquartered in Sweden, Astra is exhibiting strong
earnings growth driven by its antiulcer drug Prilosec, and both product
line and geographic expansion of its direct sales effort.
- - --------------------------------------------------------------------------------------- ------------ ------------ ----
PFIZER INC. 392,000 24,696,000 4.3
One of the fastest growing drug companies, driven by a strong base of new
products, with many more promising agents on the horizon. Among its well
known products are "Zoloft" antidepressant, "Zithromax" antibiotic, "Norvasc"
and "Procardia XL" cardiovascular drugs and "Diflucan" anti-fungal infection
drug.
- - --------------------------------------------------------------------------------------- ------------ ------------ ----
UNITED HEALTHCARE CORPORATION 324,500 21,214,188 3.7
The largest and one of the most highly regarded for-profit managed care
companies, UNH owns and manages health maintenance organizations and provides
specialty managed care services to individuals through employers, employee
groups, insurers and HMO operators on a national basis.
- - --------------------------------------------------------------------------------------- ------------ ------------ ----
U.S. HEALTHCARE, INC. 438,000 20,367,000 3.5
The largest for-profit managed care company in the Northeast, USHC has major
positions in Pennsylvania, New Jersey and New York and has recently entered
most other markets from New Hampshire to Georgia.
- - --------------------------------------------------------------------------------------- ------------ ------------ ----
BUFFETS, INC. 1,344,000 18,480,000 3.2
The largest chain of buffet style restaurants in the U.S., Buffets provides
substantial variety and quantity of prepared foods for lunch and dinner at
prices only slightly above fast food.
- - --------------------------------------------------------------------------------------- ------------ ------------ ----
WAL-MART STORES, INC. 825,000 18,356,250 3.2
A policy of serving the mass market with everyday low prices, supported by the
lowest cost structure has made Wal-Mart the nation's largest retailer with
ongoing growth opportunities in the U.S. and abroad.
- - --------------------------------------------------------------------------------------- ------------ ------------ ----
AMERICAN INTERNATIONAL GROUP, INC. 195,500 18,083,750 3.1
A leading global insurance organization, AIG's member companies write property,
casualty, marine, life and financial services insurance in approximately 130
countries and jurisdictions, and are engaged in a range of financial services
businesses including airline leasing, commodity trading and swap activity.
Returns are high and growing at an above-average rate. Costs are low and the
balance sheet is AAA rated.
- - --------------------------------------------------------------------------------------- ------------ ------------ ----
REUTERS HOLDINGS PLC-ADR 289,000 15,931,125 2.8
A leading worldwide provider of news, financial information and transaction
products, Reuters enters markets which utilize its information gathering,
processing and distribution capabilities.
- - --------------------------------------------------------------------------------------- ------------ ------------ ----
MEDTRONIC, INC. 273,000 15,253,875 2.7
The biggest, strongest medical device company in the world, Medtronic's growth
has accelerated due to its strengthening presence in defibrillators, substantial
position in pacemakers, neurological devices, angioplasty and drug pumps. Its
technical prowess and marketing are major competitive advantages.
- - --------------------------------------------------------------------------------------- ------------ ------------ ----
$214,693,188 37.4%
============ =====
</TABLE>
<PAGE>
8 STATEMENT OF INVESTMENTS: DECEMBER 31, 1995
- - -------------------------------------------------------------------------------
General American Investors
<TABLE>
<CAPTION>
STOCKS SHARES OR VALUE
ISSUER PRINCIPAL AMOUNT (NOTE 1a)
<S> <C> <C>
COMPUTER SOFTWARE AND SYSTEMS (1.5%)
Avid Technology, Inc.+ ............................. 86,500 $ 1,643,500
Cisco Systems, Inc.+ ............................... 91,500 6,828,188
----------
(COST $5,092,078) .......... -- 8,471,688
----------
CONSUMER PRODUCTS AND SERVICES (14.0%)
AAPC Ltd. ......................................... 8,345,000 4,539,680
Brinker International Inc.+ ....................... 496,500 7,509,563
Buffets, Inc.+ .................................... 1,344,000 18,480,000
The Cheesecake Factory Incorporated+ .............. 168,000 3,612,000
Chrysler Corporation .............................. 40,000 2,205,000
The Walt Disney Company ........................... 70,500 4,150,688
Ethan Allen Interiors, Inc.+ ...................... 268,500 5,470,687
Ford Motor Company ................................ 360,000 10,395,000
Hormel Foods Corporation .......................... 255,000 6,279,375
PepsiCo, Inc. ..................................... 203,000 11,342,625
Perrigo Company+ .................................. 218,500 2,594,687
Stewart Enterprises, Inc. Class A ................. 104,500 3,866,500
----------
(COST $64,758,545) ........ -- 80,445,805
----------
DATA INFORMATION AND SERVICES (2.8%)
Reuters Holdings PLC-ADR .......................... 289,000 15,931,125
----------
(COST $2,577,709)
ELECTRONICS (2.0%)
Sensormatic Electronics Corporation ............... 665,000 11,554,375
----------
(COST $14,397,392)
ENVIRONMENT CONTROL
(INCLUDING SERVICES) (2.6%)
USA Waste Services, Inc.+ ......................... 692,000 13,061,500
Western Waste Industries+ ......................... 75,000 2,053,125
----------
(COST $16,895,619) ........ -- 15,114,625
----------
FINANCE AND INSURANCE (19.8%)
Alexander Haagen Properties, Inc. .................. 143,000 1,751,750
American International Group, Inc. ................. 195,500 18,083,750
Banco Popular Espanol, S.A ......................... 16,000 2,952,000
Crestar Financial Corp. ............................ 156,000 9,223,500
First Empire State Corporation ..................... 56,500 12,317,000
General Re Corporation ............................. 84,500 13,097,500
Golden West Financial Corporation .................. 168,500 9,309,625
JDN Realty Corporation ............................. 118,500 2,651,437
Life Re Corporation ................................ 310,500 7,762,500
Prudential Reinsurance Holdings, Inc. .............. 125,500 2,933,562
TIG Holdings, Inc. ................................. 237,500 6,768,750
Transatlantic Holdings, Inc. ....................... 156,500 11,483,188
U.S. Bancorp ....................................... 367,500 12,357,188
Walden Residential Properties ...................... 126,500 2,640,687
-----------
(COST $58,446,577) ......... -- 113,332,437
-----------
HEALTH CARE (24.4%)
PHARMACEUTICALS (11.7%)
AB Astra Class A .................................. 319,500 12,780,000
AB Astra Class B .................................. 326,500 12,978,375
Alpha-Beta Technology, Inc.+ ...................... 212,000 2,623,500
BioChem Pharma Inc.+ .............................. 186,000 7,463,250
Biogen, Inc.+ ..................................... 36,000 2,214,000
Pfizer Inc. ....................................... 392,000 24,696,000
Vertex Pharmaceuticals Incorporated+ .............. 158,500 4,200,250
----------
(COST $27,867,414) ........ -- 66,955,375
----------
</TABLE>
<PAGE>
9 STATEMENT OF INVESTMENTS: DECEMBER 31, 1995
- - --------------------------------------------------------------------------------
General American Investors
<TABLE>
STOCKS SHARES OR VALUE
ISSUER PRINCIPAL AMOUNT (NOTE 1a)
<S> <C> <C>
HEALTH CARE (CONT'D)
MEDICAL INSTRUMENTS AND DEVICES
(2.7%)
Medtronic, Inc. .................................. 273,000 $15,253,875
-----------
(COST $4,403,477) ........ --
HEALTH CARE SERVICES (10.0%)
Applied Bioscience International Inc.+ ........... 1,036,000 6,993,000
Caremark International Inc. ...................... 300,000 5,437,500
Huntingdon International Holdings PLC-ADR+ ....... 669,500 3,682,250
United Healthcare Corporation .................... 324,500 21,214,188
U.S. Healthcare, Inc. ............................ 438,000 20,367,000
-----------
(COST $46,581,320) ........ -- 57,693,938
-----------
(COST $78,852,211) ........ -- 139,903,188
-----------
MISCELLANEOUS (3.4%)
Manpower Inc. .................................... 186,000 5,231,250
Other ............................................ -- 14,352,305
----------
(COST $18,036,659) ....... -- 19,583,555
----------
OIL & NATURAL GAS (INCLUDING SERVICES) (2.3%)
Texaco Inc. ...................................... 169,500 13,305,750
----------
(COST $11,403,753) ...... --
PUBLISHING AND BROADCASTING (2.8%)
Comcast UK Cable Partners Limited Class A + ...... 250,000 3,125,000
International CableTel Incorporated + ............ 172,000 4,214,000
TeleWest Communications PLC-ADR + ................ 110,000 2,653,750
Wolters Kluwer NV-ADR ............................ 65,000 6,158,750
----------
(COST $13,630,927) ....... -- 16,151,500
----------
RETAIL TRADE (9.7%)
Ann Taylor Stores Corporation + .................. 75,000 778,125
The Home Depot, Inc. ............................. 765,500 36,552,625
Wal-Mart Stores, Inc. ............................ 825,000 18,356,250
----------
(COST $5,332,208) ........ -- 55,687,000
----------
SPECIAL HOLDINGS #+ (note 8) (0.9%)
Microbiological Associates, Inc. Preferred Series D 456,829 456,829
Microbiological Associates, Inc. Preferred Series E 384,242 384,242
Sequoia Capital IV ................................ ++ 244,000
SUGEN, Inc. ....................................... 28,888 300,796
Tempest Reinsurance Company Limited ............... 15,000 1,500,000
Warburg, Pincus Capital Partners, L.P. ............ ++ 1,698,438
Welsh, Carson, Anderson & Stowe III ............... ++ 317,700
---------
(COST $5,751,599) ......... -- 4,902,005*
---------
TRANSPORTATION (0.8%)
Werner Enterprises, Inc. ......................... 221,000 4,475,250
---------
(COST $3,412,439) ........ --
TOTAL STOCKS (87.0%) (COST $298,587,716) 498,858,303
------------
SHORT-TERM SECURITIES AND OTHER ASSETS
- - --------------------------------------------------------------------------------
Ford Motor Credit Company notes
due 1/2-1/29/96; 5.65%-5.71% $17,100,000 17,017,611
General Electric Capital Corp. notes
due 1/8-1/22/96; 5.74%-5.79% 14,000,000 13,924,617
General Motors Acceptance Corp. notes
due 1/4-1/25/96; 5.77%-5.80% 26,600,000 26,457,532
Sears Roebuck Acceptance Corp. notes
due 1/11-1/18/96; 5.68%-5.81% 18,900,000 18,800,933
-------------
(COST $76,200,693) 76,200,693
Liabilities in excess of cash, receivables and other assets (1,365,571)
-------------
TOTAL SHORT-TERM SECURITIES AND OTHER ASSETS, NET (13.0%) 74,835,122
-------------
NET ASSETS (COST $373,422,838) $573,693,425
=============
<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>
10 STATEMENT OF ASSETS AND LIABILITIES
- - --------------------------------------------------------------------------------
General American Investors
<TABLE>
<CAPTION>
December 31,
----------------------------
ASSETS 1995 1994
- - -------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENTS, AT VALUE ( NOTE 1a )
General portfolio securities
( cost $298,587,716 and $343,823,577, respectively) $498,858,303 $501,109,801
Corporate discount notes
( cost $76,200,693 and $18,983,181, respectively) . 76,200,693 18,983,181
----------- ------------
575,058,996 520,092,982
INVESTMENT IN CONTROLLED AFFILIATE (NOTE 1b ) ......... (7,834) 101,850
CASH, RECEIVABLES AND OTHER ASSETS
Cash ................................................ 35,168 89,071
Receivable for securities sold ...................... 454,742 357,711
Dividends, interest and other receivables ........... 2,320,625 2,174,139
Other ............................................... 854,276 1,006,977
----------- -----------
TOTAL ASSETS .......................................... 578,715,973 523,822,730
----------- -----------
LIABILITIES
- - -------------------------------------------------------------------------------------
Payable for securities purchased ................... 1,219,247 896,218
Accrued expenses and other liabilities ............. 3,803,301 3,204,353
------------ ------------
TOTAL LIABILITIES ..................................... 5,022,548 4,100,571
------------ ------------
NET ASSETS ............................................ $573,693,425 $519,722,159
============ ============
NET ASSETS
- - --------------------------------------------------------------------------------
Common Stock, $1 par value ( notes 2 and 3 )
Authorized 30,000,000 shares; outstanding
23,962,716 (exclusive of 151,700 shares
held in Treasury) and 23,291,771, respectively .. $ 23,962,716 $ 23,291,771
Paid-in Capital ( note 2 ) ......................... 343,720,771 331,160,508
Undistributed realized gain on securities sold (note 2) 7,302,076 9,366,010
Distributions in excess of net income (note 2) ..... (1,562,725) (1,382,354)
Unrealized appreciation on investments (including
aggregate gross unrealized appreciation of
$222,213,880 and $202,592,587, respectively) .... 200,270,587 157,286,224
------------ ------------
TOTAL NET ASSETS ...................................... $573,693,425 $519,722,159
============ ============
NET ASSET VALUE PER SHARE ............................. $ 23.94 $ 22.31
============ ============
<FN>
(see notes to financial statements)
</FN>
</TABLE>
<PAGE>
11 STATEMENT OF OPERATIONS
- - --------------------------------------------------------------------------------
General American Investors
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
INCOME --------------------------
1995 1994
- - --------------------------------------------------------------------------------
<S> <C> <C>
Dividends (net of foreign withholding taxes
of $154,010 and $260,415, respectively) ..... $ 5,321,512 $5,403,836
Interest ...................................... 2,850,323 526,376
Investment advisory fees (note 1d) ............ 716,553 1,403,694
Equity in net income (loss) of
controlled affiliate (note 4) ............... (109,684) 9,008
----------- ----------
TOTAL INCOME ..................................... 8,778,704 7,342,914
----------- ----------
EXPENSES
- - --------------------------------------------------------------------------------
Investment research ........................... 2,684,281 2,413,132
Administration and operations ................. 2,127,073 2,119,721
Office space and general ...................... 824,624 683,477
Directors' fees and expenses .................. 494,724 456,448
Transfer agent, custodian and registrar
fees and expenses ........................... 216,682 244,149
Auditing and legal fees ....................... 199,000 84,900
Stockholders' meeting and reports ............. 162,881 120,881
Miscellaneous taxes (note 1c) ................. 108,400 100,200
--------- ---------
TOTAL EXPENSES ................................... 6,817,665 6,222,908
--------- ---------
NET INVESTMENT INCOME ............................ 1,961,039 1,120,006
--------- ---------
REALIZED GAIN AND CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS (NOTES 1e AND 6)
- - -----------------------------------------------------------------------------------
Net realized gain on sales of securities
(long-term, except for $713,565 in 1995) ..... 63,862,317 36,008,556
Net increase (decrease) in unrealized
appreciation ................................. 42,984,363 (54,306,884)
------------ ------------
NET GAIN (LOSS) ON INVESTMENTS .................. 106,846,680 (18,298,328)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ..................... $108,807,719 ($17,178,322)
============ ============
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-------------------------
OPERATIONS 1995 1994
- - --------------------------------------------------------------------------------
<S> <C> <C>
Net investment income ..................... $ 1,961,039 $ 1,120,006
Net realized gain on sales of securities .. 63,862,317 36,008,556
Net increase (decrease) in unrealized
appreciation ............................ 42,984,363 (54,306,884)
------------- -------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ................. 108,807,719 (17,178,322)
------------- -------------
DISTRIBUTIONS TO STOCKHOLDERS
- - --------------------------------------------------------------------------------
From net income, including
short-term capital gain ................. (2,633,530) (1,120,006)
From long-term capital gain ............... (65,253,760) (33,344,358)
In excess of net income ................... (180,371) (222,721)
------------- -------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS .... (68,067,661) (34,687,085)
------------- -------------
CAPITAL SHARE TRANSACTIONS
- - --------------------------------------------------------------------------------
Value of Common Shares issued in payment
of dividends (note 2) ................... 41,998,878 17,689,510
Cost of Common Shares purchased (note 2) .. (28,767,670) --
------------- -------------
INCREASE IN NET ASSETS - CAPITAL TRANSACTIONS 13,231,208 17,689,510
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS ........ 53,971,266 (34,175,897)
NET ASSETS
- - --------------------------------------------------------------------------------
BEGINNING OF YEAR ............................ 519,722,159 553,898,056
------------- -------------
END OF YEAR (including distributions in
excess of net income of $1,562,725 and
$1,382,354, respectively) ................. $ 573,693,425 $ 519,722,159
============= =============
<FN>
( see notes to financial statements )
</FN>
</TABLE>
<PAGE>
12 NOTES TO FINANCIAL STATEMENTS
- - --------------------------------------------------------------------------------
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 The investment in the Company's wholly
owned subsidiary, General American Advisers, Inc., is accounted for by the
equity method.
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 1995 and 1994 were as follows:
<TABLE>
<CAPTION>
SHARES AMOUNT
------------------------ ------------------------------
1995 1994 1995 1994
------------------------ ------------------------------
<S> <C> <C> <C> <C>
Shares issued in payment of dividends 2,092,369 913,007 $ 2,092,369 $ 913,007
Increase in paid-in capital ......... -- -- 39,906,509 16,776,503
------------ -----------
Total increase ................... -- -- 41,998,878 17,689,510
------------ -----------
Shares purchased (at an average
discount from net asset value of
16.5%)............................ 1,421,424 -- (1,421,424) --
Decrease in paid-in capital ......... (27,346,246) --
------------ -----------
Total decrease ................... (28,767,670) --
------------ -----------
Net increase ........................ $ 13,231,208 $17,689,510
============ ===========
</TABLE>
The cost of the 151,700 shares of Common Stock held in Treasury at December 31,
1995 amounted to $3,069,860.
On January 10, 1996, the Board of Directors declared on the Common Stock
dividends of $7,409,315 from long-term capital gains and $239,010 from net
income. These dividends are payable in cash on February 12, 1996 to stockholders
of record on January 22, 1996.
Dividends in excess of net income for financial statement purposes result
primarily from transactions where tax treatment differs from book treatment.
3. STOCK OPTION PLAN
The Company had a Stock Option and Stock Appreciation Right Plan which expired
as of December 11, 1995. Under the Plan, rights relating to a maximum of 700,000
shares of Common Stock could have been granted to officers and key employees of
the Company. No options were granted under the Plan.
<PAGE>
13 NOTES TO FINANCIAL STATEMENTS
- - --------------------------------------------------------------------------------
General American Investors
4. OPERATIONS OF CONTROLLED AFFILIATE
A summary of the operations of General American Advisers, Inc. for 1995 and 1994
is shown in the following table:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
--------------------------
1995 1994
----------- -----------
<S> <C> <C>
Investment Advisory Fees ........................ $ 1,205,793 $ 1,930,996
----------- -----------
Operating expenses (including compensation of
officers - $536,035 and $936,355, respectively) 1,136,558 1,940,271
Federal, state and local taxes (credit) ......... 178,919 (18,283)
----------- -----------
1,315,477 1,921,988
=========== ===========
Net income (loss) ............................... ($ 109,684) $ 9,008
=========== ===========
</TABLE>
On January 1, 1996, the business operation of General American Advisers, Inc.
were transferred to the Company. This transfer will be accounted for as a
combination of businesses under common control.
5. OFFICERS' COMPENSATION AND RETIREMENT AND THRIFT PLANS
The aggregate compensation paid by the Company during 1995 and 1994 to its
officers amounted to $2,534,928 and $2,298,395, respectively.
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.
6. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (other than short-term securities) during 1995
were $146,456,939 and $255,555,118, respectively. At December 31, 1995, the cost
of investments for Federal income tax purposes was the same as the cost for
financial reporting purposes.
7. GENERAL INFORMATION
Brokerage commissions during 1995 were $609,368, including $124,075 paid to
Goldman, Sachs & Co. During the period January 1 through May 10, 1995, a
director of the Company was a limited partner of The Goldman Sachs Group, L.P.
which is an affiliate of Goldman, Sachs & Co.
8. 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 1,198,310 244,000
SUGEN,Inc. ........................................ 10/29/93 324,990 300,796
Tempest Reinsurance Company Limited ............... 9/15/93 1,500,000 1,500,000
Warburg, Pincus Capital Partners, L.P.* ........... 10/04/83 454,872 1,698,438
Welsh, Carson, Anderson & Stowe III* .............. 3/10/83 462,327 317,700
Other ............................................. 500,300 --
========== ==========
Total ............................................. $5,751,599 $4,902,005
========== ==========
<FN>
* The amounts shown are net of distributions from these limited partnership
interests which, in the aggregate, amounted to $4,402,163, $3,425,979 and
$3,295,783, respectively. The initial investment in each limited partnership was
$2,000,000.
</FN>
</TABLE>
9. 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.
As of December 31, 1995, the remaining minimum rental commitment under the
operating lease is 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 addition to purchases of the Company's Common Stock as set forth in Note 2 on
page 12, 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>
14 QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
- - --------------------------------------------------------------------------------
General American Investors
[CAPTION]
"The following is an unaudited summary of quarterly results of operations in
1995 and 1994 (thousands of dollars except for amounts per Common Share)."
<TABLE>
<CAPTION>
THREE MONTHS ENDED
------------------------------------------------------------------------------------
MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31
------------------ ------------------ ----------------- --------------------
1995 1994 1995 1994 1995 1994 1995 1994
-------- -------- ------- -------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Total income ................................ $ 1,797 $ 1,861 $ 2,120 $ 1,689 $ 2,228 $ 2,052 $ 2,634 $ 1,741
Net investment income ....................... 125 311 586 249 586 495 664 65
Per Common Share ............................ .01 .01 .02 .01 .02 .03 .03 --
Net realized and unrealized
gain (loss) on investments .............. 18,598 (25,334) 18,772 (16,102) 41,135 32,364 28,342 (9,226)
Per Common Share * .......................... .76 (1.13) .83 (.72) 1.87 1.44 1.08 (.53)
<FN>
*Includes net effect of issuance of Common Shares in payment of dividends at the
lower of net asset value or market value and purchase of Common Shares at market
value.
</FN>
</TABLE>
FINANCIAL HIGHLIGHTS
- - --------------------------------------------------------------------------------
[CAPTION]
"The following table shows per share operating performance data, total
investment return, ratios and supplemental data for each year in the five-year
period 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>
1995 1994 1993 1992 1991
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of year ................................. $ 22.31 $ 24.75 $ 28.56 $ 30.60 $ 20.60
--------- --------- --------- --------- ---------
Net investment income ........................................... .08 .05 .03 -- .09
Net gain (loss) on securities realized and unrealized ........... 4.54 (.94) (.80) 1.05 12.05
--------- --------- --------- --------- ---------
Total from investment operation .................................... 4.62 (.89) (.77) 1.05 12.14
--------- --------- --------- --------- ---------
Less Distributions
Dividends from investment income ................................ (.11)* (.05) (.04) (.03) (.10)
Distributions from capital gains ................................ (2.87) (1.49) (2.98) (3.06) (2.04)
In excess of net income ......................................... (.01) (.01) (.02) -- --
--------- --------- --------- --------- ---------
Total distributions ................................................ (2.99) (1.55) (3.04) (3.09) (2.14)
--------- --------- --------- --------- ---------
Net asset value, end of year ....................................... $ 23.94 $ 22.31 $ 24.75 $ 28.56 $ 30.60
========= ========= ========= ========= =========
Per share market value, end of year ................................ $ 20.00 $ 19.00 $ 22.25 $ 30.00 $ 29.00
========= ========= ========= ========= =========
TOTAL INVESTMENT RETURN - Stockholder Return based on
market price per share
21.22% -7.86% -15.92% 14.78% 85.00%
RATIOS AND SUPPLEMENTAL DATA
Total net assets, end of year
(000's omitted) ................................................. $ 573,693 $ 519,722 $ 553,898 $ 586,489 $ 587,213
Ratio of expenses to average net assets ** ......................... 1.25% 1.17% 1.16% 1.16% 1.02%
Ratio of net income to average net assets .......................... 0.36% 0.21% 0.14% 0.00% 0.37%
Portfolio turnover rate ............................................ 29.14% 17.69% 19.50% 14.42% 21.30%
Shares outstanding, end of year
(000's omitted) ................................................. 23,963 23,292 22,379 20,534 19,187
<FN>
* Includes short-term capital gain in the amount of $.03 per share.
** The ratio of expenses, exclusive of expenses attributable to the advisory
accounts which are managed directly by the Company, to average net assets
was 1.12% for 1995, 0.85% for 1994, 0.78% for 1993, 0.80% for 1992, and
0.75% for 1991.
</FN>
</TABLE>
<PAGE>
15 REPORT OF INDEPENDENT AUDITORS
- - --------------------------------------------------------------------------------
General American Investors
TO THE BOARD OF DIRECTORS AND STOCKHOLDERS OF
GENERAL AMERICAN INVESTORS COMPANY, INC.
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of General American Investors Company, Inc. as of
December 31, 1995, and the related statements of operations and changes in net
assets for each of the two years in the period then ended, and financial
highlights for each of the five years in the period then ended. These financial
statements and financial highlights are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1995, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
General American Investors Company, Inc. at December 31, 1995, the results of
its operations and the changes in its net assets for each of the two years in
the period then ended, and the financial highlights for each of the five years
in the period then ended, in conformity with generally accepted accounting
principles.
Ernst & Young LLP
New York, New York
January 12, 1996
OFFICERS
- - --------------------------------------------------------------------------------
SPENCER DAVIDSON
President and Chief
Executive Vice Officer
VICTORIA HAMILTON
Executive Vice President
and 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 and 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
<PAGE>
16 DIRECTORS
- - --------------------------------------------------------------------------------
General American Investors
LAWRENCE B. BUTTENWIESER, CHAIRMAN
Rosenman & Colin, Partner
Time Warner Inc., Director
MALCOLM B. SMITH, VICE-CHAIRMAN
Cybersmith, Inc., Director
Human Rights Watch, Director
New School for Social Research, Trustee
New York Foundation, Trustee
ARTHUR G. ALTSCHUL, JR.
SUGEN, Inc., Senior Director, Corporate Affairs
Access Radiology, Director
Medicis Pharmaceutical Corporation, Director
WILLIAM O. BAKER
AT&T-Bell Laboratories, Inc., Chairman (Retired)
College of Engineering and Applied Science
of the University of Pennsylvania,
Member, Board of Overseers
Harry Frank Guggenheim Foundation, Trustee
Andrew W. Mellon Foundation, Chairman Emeritus
New Jersey Commission on Science and Technology,
Vice Chairman
Princeton University, Charter Trustee Emeritus
The Rockefeller University, Chairman Emeritus
LEWIS B. CULLMAN
Cullman Ventures, Inc., President
American Chess Foundation, Chairman, Board of Directors
Museum of Modern Art, Vice Chairman, International
Council and Honorary Trustee
The New York Botanical Garden, Member,
Board of Managers
SPENCER DAVIDSON
General American Investors Company, Inc.,
President and Chief Executive Officer
Neurosciences Research Foundation, Trustee
GERALD M. EDELMAN
Neurosciences Institute of the Neurosciences
Research Foundation, Director and President
The Scripps Research Institute,
Chairman, Department of Neurobiology
Becton, Dickinson and Company, Director
ANTHONY M. FRANK
Belvedere Partners, Chairman
Living Centers of America, Director
The Charles Schwab Corporation, Director
Temple-Inland Inc., Director
<PAGE>
WILLIAM T. GOLDEN
American Association for the Advancement
of Science, Treasurer and Director
American Museum of Natural History,
Chairman Emeritus, Board of Trustees
American Philosophical Society, Vice President
Black Rock Forest Consortium, Chairman
Carnegie Institution of Washington,
Secretary and Trustee
Mount Sinai Hospital, Medical Center and
School of Medicine, Vice-Chairman
New York Academy of Sciences, Life Governor
JOHN D. GORDAN,III
Morgan, Lewis & Bockius, Partner
BILL GREEN
ClientSoft, Inc., Director
Energy Answers Corporation, Director
New York City Campaign Finance Board,
Member and Vice Chair
New York City Housing
Development Corporation, Director
Washington Forecast, Inc., Director
HAROLD J. KINGSBERG
Independent Financial Consultant
SIDNEY R. KNAFEL
SRK Management Company, Managing Partner
Cellular Communications, Inc., Director
IGENE Biotechnology, Inc., Director
International CableTel Incorporated, Director
Microbiological Associates, Inc., Chairman
RICHARD R. PIVIROTTO
General Theological Seminary, Trustee
The Gillette Company, Director
Greenwich Hospital Corporation, Trustee
Immunomedics, Inc., Director
New York Life Insurance Company, Director
Princeton University, Charter Trustee Emeritus
Westinghouse Electric Corporation, Director
JOSEPH T. STEWART, JR.
Johnson & Johnson, Executive Consultant
Foundation of the University of Medicine
and Dentistry of New Jersey, Trustee
Liposome Co., Inc., Director
Marine Biological Laboratory, Member, Advisory Council
New School for Social Research, Trustee
<PAGE>
RAYMOND S. TROUBH
Applied Power Inc., Director
Becton, Dickinson and Company, Director
Foundation Health Corporation, Director
Manville Corporation, Director
Olsten Corporation, Director
Time Warner Inc., Director
ARTHUR G. ALTSCHUL, CHAIRMAN EMERITUS
