<PAGE>
GENERAL
AMERICAN
INVESTORS
1996 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>
1996 1995
---- ----
<S> <C> <C>
Net assets-December 31 .................... $ 597,596,693 $ 573,693,425
Net investment income ..................... 5,189,266 1,961,039
Net realized gain ......................... 61,830,203 63,862,317
Net increase in unrealized appreciation ... 26,713,604 42,984,363
Per Common Share-December 31
Net asset value ........................ $ 25.24 $ 23.94
Market price ........................... $ 21.00 $ 20.00
Discount from net asset value ............. -16.8% -16.5%
Common Shares outstanding - Dec. 31........ 23,678,690 23,962,716
Common stockholders of record - Dec. 31 ... 6,500 6,960
Market price range* (high-low) ............ $23.63-$19.50 $21.88-$18.75
Market volume-shares ...................... 6,051,500 6,421,800
<FN>
*Unadjusted for dividend payments.
</FN>
</TABLE>
DIVIDEND SUMMARY
- ----------------------------------------------------------------------------
Distributions Applicable to Income Earned and Gains Realized in 1996
<TABLE>
<CAPTION>
Ordinary Long-Term
Record Date /Payment Date Income Capital Gain Total
- ------------------------- ------ ------------ -----
<S> <C> <C> <C>
Nov. 15, 1996 / Dec. 26, 1996 .............. $ .19 $ 2.27 $ 2.46
Jan. 27, 1996 /Mar. 12, 1997 ............... .06* .44 .50
------- -------- --------
Total ...................................... $ .25* $ 2.71 $ 2.96
======= ======== ========
<FN>
*Includes short-term capital gain in the amount of $.05 per share.
</FN>
</TABLE>
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>
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 another favorable year in 1996. Our net asset
value rose by 18.7%, on a total return basis. The Standard & Poor's 500 Stock
Index, meanwhile, gained 22.9% spurred by extraordinary fourth quarter
performance. For the past twenty years, General American's net asset value has
compounded at the rate of 16.6% per year in comparison to the average gain of
14.6% for the S&P 500 Stock Index during that period.
Net income has continued to grow reflecting increased dividend and interest
income together with contained costs that are moderate relative to assets under
management. As part of an ongoing program to maximize shareholder value, over 8%
of the Company's shares were repurchased at an average discount to net asset
value of 15.7%.
The sanguine investment climate that characterized the past few years is showing
signs of strain. Interest rates appear to have stabilized and could increase due
to heightened inflation expectations. Energy prices have risen markedly and wage
pressures are growing in response to relatively low levels of unemployment and
an economy operating near full capacity. As a result, operating margins and
corporate profits generally are unlikely to post the dramatic gains of the
recent past. Our portfolio is well positioned for this environment. It is
dominated by companies that should continue to grow at above average rates and
is anchored by sufficient cash to respond to market opportunities should they
arise.
Malcolm B. Smith, who has spent his entire business career at General American,
will retire as Vice-Chairman of the Board and as a Director of the Company at
the time of the Annual Meeting on March 12, 1997. Mr. Smith joined the Company
in 1948, was first elected an officer in 1956, was named a Director in 1960 and
served as President of the Company from 1961 to 1989 when he became
Vice-Chairman. He has agreed to continue to serve as a Senior Consultant after
his retirement. We express gratitude and deepest appreciation for the
distinguished leadership and dedicated service Mr. Smith has provided to the
Company during the last 49 years and are pleased that we will continue to have
access to his counsel.
By Order of the Board of Directors,
GENERAL AMERICAN INVESTORS COMPANY, INC.
Spencer Davidson
President and Chief Executive Officer
Lawrence B. Buttenwieser
Chairman
Malcolm B. Smith
Vice-Chairman
<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. 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 1996, the stock sold
at discounts from net asset value which ranged from 13.0% (November 12) to 18.5%
(December 6). At December 31, the price of the stock was at a discount of 16.8%
as compared with a discount of 16.5% 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 1943-1996 (except for the year 1974). (A table listing dividends
paid during the 20-year period 1977 -1996 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 two
advisory clients. These clients are educational institutions for whom a portion
of their endowment funds is managed. As of December 31, 1996, the aggregate
value of the advisory accounts under management was approximately $31 million.
<PAGE>
4 INVESTMENT RESULTS
- -------------------------------------------------------------------------------
General American Investors
[CAPTION]
"Total return on $10,000 investment 20 years ended December 31, 1996"
The investment return for a stockholder of General American Investors (GAM) over
the 20 years ended December 31, 1996 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 1977.
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>
1977 $ 10,468 4.68% $ 10,327 3.27% $ 9,283 (7.17)%
1978 11,078 5.84 12,383 19.91 9,894 6.58
1979 18,216 64.41 17,687 42.83 11,734 18.60
1980 31,321 71.95 25,665 45.11 15,542 32.45
1981 35,463 13.22 26,499 3.25 14,769 (4.97)
1982 42,304 19.29 31,190 17.70 17,952 21.55
1983 49,205 16.31 38,432 23.22 22,000 22.55
1984 45,680 (7.16) 35,484 (7.67) 23,382 6.28
1985 57,013 24.81 48,205 35.85 30,810 31.77
1986 63,383 11.17 53,330 10.63 36,569 18.69
1987 53,169 (16.11) 53,778 0.84 38,485 5.24
1988 64,474 21.26 62,226 15.71 44,847 16.53
1989 95,806 48.60 85,107 36.77 59,027 31.62
1990 99,635 4.00 90,681 6.55 57,203 (3.09)
1991 184,328 85.00 146,795 61.88 74,593 30.40
1992 211,567 14.78 154,193 5.04 80,255 7.59
1993 177,895 (15.92) 152,281 (1.24) 88,376 10.12
1994 163,903 (7.86) 148,764 (2.31) 89,499 1.27
1995 198,689 21.22 183,113 23.09 123,061 37.50
1996 237,391 19.48 217,374 18.71 151,254 22.91
</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 $250,000 in $25,000 increments. The horizontal axis, on the bottom
of the page, consists of the years 1977 through 1996 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, 1996 RETURN NET ASSETS STOCK INDEX
- ----------------- ------ ---------- -----------
<S> <C> <C> <C>
1 year ..................... 19.5% 18.7% 22.9%
5 years .................... 5.2 8.2 15.2
10 years .................... 14.1 15.1 15.3
15 years .................... 13.5 15.1 16.8
20 years .................... 17.2 16.6 14.6
</TABLE>
<PAGE>
6 MAJOR STOCK CHANGES*: THREE MONTHS ENDED DECEMBER 31, 1996 (UNAUDITED)
- -------------------------------------------------------------------------------
General American Investors
<TABLE>
<CAPTION>
SHARES HELD
INCREASES SHARES DECEMBER 31, 1996
- --------------------------------------------------------------------------------------------------------
NEW POSITIONS
<S> <C> <C>
R.P. Scherer Corporation 133,100 207,000(a)
ADDITIONS
Cox Communications, Inc. Class A 150,000 350,000
DSC Communications Corporation 237,500 425,000
General Re Corporation 267 100,000(b)
Physician Reliance Network, Inc. 200,000 500,000
Texaco Inc. 40,500 130,000
DECREASES
- --------------------------------------------------------------------------------------------------------
ELIMINATIONS
Aetna, Inc. 6.25% Class C Voting Preferred Stock 26,065 --
Hormel Foods Corporation 205,000 --
National Re Corporation 112,000(b) --
Pharmaceutical Product Development, Inc. 276,500 --
Vodafone Group Plc-ADR 43,500 --
REDUCTIONS
AAPC Ltd. 536,415 8,172,000(c)
Aetna, Inc. 10,000 100,000
Alexander Haagen Properties, Inc. 36,000 107,000
Alpha-Beta Technology, Inc. 12,500 279,500
American International Group, Inc. 15,500 115,000
Avid Technology, Inc. 30,000 228,000
BioChem Pharma Inc. 50,000 136,000
Broderbund Software, Inc. 34,500 175,500
Comcast UK Cable Partners Limited Class A 20,000 581,500
Ford Motor Company 10,000 400,000
Hewlett-Packard Company 20,000 180,000
The Home Depot, Inc. 10,000 755,500
Life Re Corporation 20,500 290,000
Medtronic, Inc. 15,000 228,000
USA Waste Services, Inc. 75,000 594,000
U.S. Bancorp 25,000 252,500
United Healthcare Corporation 105,000 100,000
<FN>
* Excludes transactions in Stocks - Miscellaneous - Other.
(a) Includes previously carried under Stocks - Miscellaneous - Other.
(b) 41,733 shares of General Re Corporation were received in exchange for 112,000 shares of
National Re Corporation in conjunction with a merger.
(c) Includes shares received in conjunction with a stock dividend.
</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 1977-1996. Amounts shown
include payments made after year-end attributable to income and gain in each
respective year."
DIVIDENDS PER COMMON SHARE (1977-1996)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DIVIDEND FROM
LONG-TERM
YEAR INCOME # CAPITAL GAINS
- ---- ------- -------------
<S> <C> <C>
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
1996 .25 2.71
<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 and $.05
in 1996.
</FN>
</TABLE>
<PAGE>
7 TEN LARGEST INVESTMENT HOLDINGS
- -------------------------------------------------------------------------------
General American Investors
[CAPTION]
"The statement of investments as of December 31, 1996, shown on pages 8 and 9
includes 59 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. 755,500 $ 37,869,437 6.3%
The leading company in home center 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 626,000 30,563,937 5.1
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. 272,000 22,576,000 3.8
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.
- --------------------------------------------------------------------------------------- ------------ ------------ ----
USA WASTE SERVICES, INC. 594,000 18,933,750 3.2
A rapidly growing integrated, non-hazardous, solid waste management company
serving municipal, industrial and residential customers in 36 states.
- --------------------------------------------------------------------------------------- ------------ ------------ ----
WAL-MART STORES, INC. 825,000 18,768,750 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.
- --------------------------------------------------------------------------------------- ------------ ------------ ----
FIRST EMPIRE STATE CORPORATION 56,500 16,272,000 2.7
A bank holding company with $13 billion in assets headquartered in Buffalo, N.Y.
It has strong, opportunistic management with a high level of ownership
and a history of enhancing shareholder value. High asset quality, excellent
expense control, share repurchases and adroit acquisitions help generate
above-average earnings growth.
- --------------------------------------------------------------------------------------- ------------ ------------ ----
GENERAL RE CORPORATION 100,000 15,775,000 2.6
A leading global reinsurer and financial services company operating in the
United States and 29 countries worldwide with a high quality AAA balance sheet.
Disciplined underwriting which generates high returns, coupled with share
repurchases, produce earnings growth at an above-average rate.
- --------------------------------------------------------------------------------------- ------------ ------------ ----
MEDTRONIC, INC. 228,000 15,504,000 2.6
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.
- --------------------------------------------------------------------------------------- ------------ ------------ ----
CHRYSLER CORPORATION 400,000 13,200,000 2.2
The third largest, but fastest growing domestic automobile manufacturer. It
enjoys a commanding position in the mini-van market segment and light truck
sales dominate its product mix. Finances are sound with a solid balance sheet
featuring ample cash and limited debt.
- --------------------------------------------------------------------------------------- ------------ ------------ ----
BUFFETS, INC. 1,431,500 13,062,438 2.2
The largest chain of buffet style restaurents in the U.S., Buffets provides
substantial variety and quantity of prepared foods for lunch and dinner at
prices only slightly above fast food.
- --------------------------------------------------------------------------------------- ------------ ------------ ----
$202,525,312 33.9%
============ =====
</TABLE>
<PAGE>
8 STATEMENT OF INVESTMENTS: DECEMBER 31, 1996
- -------------------------------------------------------------------------------
General American Investors
<TABLE>
<CAPTION>
STOCKS SHARES OR VALUE
ISSUER PRINCIPAL AMOUNT (NOTE 1a)
<S> <C> <C>
COMMUNICATIONS AND INFORMATION SERVICES (6.4%)
Comcast UK Cable Partners Limited Class A + ........ 581,500 $ 7,922,938
Cox Communications, Inc. Class A + ................. 350,000 8,093,750
International CableTel Incorporated + .............. 172,000 4,343,000
Reuters Holdings Plc-ADR ........................... 109,000 8,338,500
TeleWest Communications Plc-ADR + .................. 110,000 2,282,500
Wolters Kluwer NV-ADR .............................. 55,000 7,301,250
----------
(COST $23,396,248) ......... 38,281,938
----------
COMPUTER SOFTWARE AND SYSTEMS (6.4%)
Avid Technology, Inc.+ ............................. 228,000 2,365,500
Broderbund Software, Inc.+ ......................... 175,500 5,221,125
Cisco Systems, Inc.+ ............................... 183,000 11,643,375
DSC Communications Corporation + ................... 425,000 7,596,875
Hewlett-Packard Company ............................ 180,000 9,045,000
Pinnacle Systems, Inc.+ ............................ 245,000 2,572,500
----------
(COST $33,758,318) ......... 38,444,375
----------
CONSUMER PRODUCTS AND SERVICES (9.6%)
AAPC Ltd. ......................................... 8,172,000 4,944,060
Buffets, Inc.+ .................................... 1,431,500 13,062,438
The Cheesecake Factory Incorporated+ .............. 194,000 3,516,250
Chrysler Corporation .............................. 400,000 13,200,000
Ford Motor Company ................................ 400,000 12,900,000
PepsiCo, Inc. ..................................... 325,000 9,506,250
----------
(COST $55,191,728) ........ 57,128,998
----------
ELECTRONICS (0.9%)
Sensormatic Electronics Corporation ............... 316,000 5,293,000
----------
(COST $3,971,250)
ENVIRONMENT CONTROL
(INCLUDING SERVICES) (3.2%)
USA Waste Services, Inc.+ ......................... 594,000 18,933,750
----------
(COST $9,259,184)
FINANCE AND INSURANCE (22.7%)
Ace Limited ........................................ 48,500 2,916,062
Alexander Haagen Properties, Inc. .................. 107,000 1,578,250
American International Group, Inc. ................. 115,000 12,448,750
American States Financial Corporation .............. 302,500 8,016,250
Banco Popular Espanol, S.A ......................... 16,000 3,138,000
Crestar Financial Corp. ............................ 156,000 11,602,500
Everest Reinsurance Holdings, Inc. ................. 125,500 3,608,125
First Empire State Corporation ..................... 56,500 16,272,000
First Midwest Bancorp, Inc. ........................ 237,500 7,748,438
General Re Corporation ............................. 100,000 15,775,000
Golden West Financial Corporation .................. 168,500 10,636,562
Life Re Corporation ................................ 290,000 11,201,250
TIG Holdings, Inc. ................................. 202,500 6,859,688
Transatlantic Holdings, Inc. ....................... 156,500 12,598,250
U.S. Bancorp ....................................... 252,500 11,346,845
-----------
(COST $62,160,678) ......... 135,745,970
-----------
HEALTH CARE (21.1%)
PHARMACEUTICALS (13.3%)
AB Astra Class A .................................. 319,500 15,775,312
AB Astra Class B .................................. 306,500 14,788,625
Alpha-Beta Technology, Inc.+ ...................... 279,500 2,952,359
BioChem Pharma Inc.+ .............................. 136,000 6,834,000
Pfizer Inc. ....................................... 272,000 22,576,000
R.P. Scherer Corporation + ........................ 207,000 10,401,750
Vertex Pharmaceuticals Incorporated + ............. 148,500 5,977,125
----------
(COST $31,073,338) ........ 79,305,171
----------
MEDICAL INSTRUMENTS AND DEVICES
(2.6%)
Medtronic, Inc. .................................. 228,000 15,504,000
-----------
(COST $3,589,349)
</TABLE>
<PAGE>
9 STATEMENT OF INVESTMENTS: DECEMBER 31, 1996
- --------------------------------------------------------------------------------
General American Investors
<TABLE>
STOCKS SHARES OR VALUE
ISSUER PRINCIPAL AMOUNT (NOTE 1a)
<S> <C> <C>
HEALTH CARE (CONT'D)
HEALTH CARE SERVICES (5.2%)
Aetna, Inc. ...................................... 100,000 $ 8,000,000
Huntingdon International Holdings Plc-ADR + ...... 669,500 4,853,875
MedPartners, Inc. + .............................. 484,000 10,043,000
Physician Reliance Network, Inc. + ............... 500,000 3,875,000
United Healthcare Corporation .................... 100,000 4,500,000
-----------
(COST $31,833,724) ........ 31,271,875
-----------
(COST $66,496,411) ........ 126,081,046
-----------
MISCELLANEOUS (0.3%)
Other ............................................ 1,494,675
----------
(COST $1,227,998)
OIL & NATURAL GAS (INCLUDING SERVICES) (3.5%)
Repsol, S.A.-ADR ................................. 213,000 8,120,625
Texaco Inc. ...................................... 130,000 12,756,250
----------
(COST $17,448,848) ...... 20,876,875
----------
RETAIL TRADE (10.4%)
Giordano Holdings Limited - ADR .................. 304,500 2,600,430
The Home Depot, Inc. ............................. 755,500 37,869,437
Wal-Mart Stores, Inc. ............................ 825,000 18,768,750
Williams-Sonoma, Inc. + .......................... 85,000 3,091,875
----------
(COST $6,652,934) ........ 62,330,492
----------
SPECIAL HOLDINGS #+ (note 7) (0.4%)
Microbiological Associates, Inc. Preferred Series D 456,829 456,829
Microbiological Associates, Inc. Preferred Series E 384,242 384,242
Sequoia Capital IV ................................ ++ 160,400
Warburg, Pincus Capital Partners, L.P. ............ ++ 1,620,210
Welsh, Carson, Anderson & Stowe III ............... ++ 35,700
---------
(COST $3,316,710) ......... 2,657,381*
---------
TRANSPORTATION (1.0%)
Werner Enterprises, Inc. ......................... 331,500 6,008,437
---------
(COST $3,412,439)
TOTAL STOCKS (85.9%) (COST $286,292,746) 513,276,937
------------
SHORT-TERM SECURITIES AND OTHER ASSETS
- --------------------------------------------------------------------------------
Ford Motor Credit Company notes
due 1/6-1/23/97; 5.40% $15,100,000 15,017,620
General Electric Capital Corp. notes
due 1/9-2/3/97; 5.39%-5.50% 23,050,000 22,924,114
General Motors Acceptance Corp. notes
due 1/16-1/30/97; 5.40%-5.53% 20,800,000 20,683,242
Sears Roebuck Acceptance Corp. notes
due 1/2-2/6/97; 5.25%-5.45% 24,700,000 24,560,417
-------------
(COST $83,185,393) 83,185,393
Cash, receivables and other assets, less liabilities 1,134,363
-------------
TOTAL SHORT-TERM SECURITIES AND OTHER ASSETS, NET (14.1%) 84,319,756
-------------
NET ASSETS (COST $370,612,502) $597,596,693
=============
<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 1996 1995
- -------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENTS, AT VALUE ( NOTE 1a )
General portfolio securities
( cost $286,292,746 and $298,587,716, respectively) $513,276,937 $498,858,303
Corporate discount notes
( cost $83,185,393 and $76,200,693, respectively) 83,185,393 76,200,693
----------- ------------
596,462,330 575,058,996
INVESTMENT IN CONTROLLED AFFILIATE (NOTE 1b ) ......... -- (7,834)
CASH, RECEIVABLES AND OTHER ASSETS
Cash ................................................ 54,272 35,168
Receivable for securities sold ...................... 955,793 454,742
Dividends, interest and other receivables ........... 3,880,540 2,320,625
Other ............................................... 902,696 854,276
----------- -----------
TOTAL ASSETS .......................................... 602,255,631 578,715,973
----------- -----------
LIABILITIES
- -------------------------------------------------------------------------------------
Payable for securities purchased ................... 449,166 1,219,247
Accrued expenses and other liabilities ............. 4,209,772 3,803,301
------------ ------------
TOTAL LIABILITIES ..................................... 4,658,938 5,022,548
------------ ------------
NET ASSETS ............................................ $597,596,693 $573,693,425
============ ============
NET ASSETS
- --------------------------------------------------------------------------------
Common Stock, $1 par value ( note 2 )
Authorized 30,000,000 shares; outstanding
23,678,690 and 23,962,716, respectively
(exclusive of 435,726 and 151,700 shares,
respectively, held in Treasury) ................. $ 23,678,690 $ 23,962,716
Paid-in Capital ( note 2 ) ......................... 336,304,226 343,720,771
Undistributed realized gain on
securities sold (note 2) ........................ 11,408,856 7,302,076
Distributions in excess of net income (note 2) ..... (779,270) (1,562,725)
Unrealized appreciation on investments (including
aggregate gross unrealized appreciation of
$244,113,428 and $222,213,880, respectively) .... 226,984,191 200,270,587
------------ ------------
TOTAL NET ASSETS ...................................... $597,596,693 $573,693,425
============ ============
NET ASSET VALUE PER SHARE ............................. $ 25.24 $ 23.94
============ ============
<FN>
(see notes to financial statements)
</FN>
</TABLE>
<PAGE>
11 STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
General American Investors
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
INCOME --------------------------
1996 1995
- --------------------------------------------------------------------------------
<S> <C> <C>
Dividends (net of foreign withholding taxes
of $177,606 and $154,010, respectively) ..... $ 6,475,767 $5,321,512
Interest ...................................... 4,681,057 2,850,323
Investment advisory fees (note 1d) ............ 222,326 716,553
Equity in net loss of
controlled affiliate (note 3) ............... -- (109,684)
----------- ----------
TOTAL INCOME ..................................... 11,379,150 8,778,704
----------- ----------
EXPENSES
- --------------------------------------------------------------------------------
Investment research ........................... 2,629,180 2,684,281
Administration and operations ................. 1,880,565 2,127,073
Office space and general ...................... 844,543 824,624
Directors' fees and expenses .................. 226,315 494,724
Auditing and legal fees ....................... 194,410 199,000
Transfer agent, custodian and registrar
fees and expenses ........................... 170,605 216,682
Stockholders' meeting and reports ............. 145,466 162,881
Miscellaneous taxes (note 1c) ................. 98,800 108,400
--------- ---------
TOTAL EXPENSES ................................... 6,189,884 6,817,665
--------- ---------
NET INVESTMENT INCOME ............................ 5,189,266 1,961,039
--------- ---------
REALIZED GAIN AND CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS (NOTES 1e AND 5)
- -----------------------------------------------------------------------------------
Net realized gain on sales of securities
(long-term, except for $1,201,678 and
$713,565, respectively) ...................... 61,830,203 63,862,317
Net increase in unrealized appreciation ........ 26,713,604 42,984,363
------------ ------------
NET GAIN ON INVESTMENTS ......................... 88,543,807 106,846,680
------------ ------------
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ..................... $93,733,073 $108,807,719
============ =============
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-------------------------
OPERATIONS 1996 1995
- --------------------------------------------------------------------------------
<S> <C> <C>
Net investment income ..................... $ 5,189,266 $ 1,961,039
Net realized gain on sales of securities .. 61,830,203 63,862,317
Net increase in unrealized appreciation ... 26,713,604 42,984,363
------------- -------------
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ................. 93,733,073 108,807,719
------------- -------------
DISTRIBUTIONS TO STOCKHOLDERS
- --------------------------------------------------------------------------------
From net income, including
short-term capital gain ................. (4,446,885) (2,633,530)
From long-term capital gain ............... (57,682,349) (65,253,760)
In excess of net income ................... -- (180,371)
------------- -------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS .... (62,129,234) (68,067,661)
------------- -------------
CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------
Value of Common Shares issued in payment
of dividends (note 2) ................... 34,645,324 41,998,878
Cost of Common Shares purchased (note 2) .. (42,345,895) (28,767,670)
------------- -------------
INCREASE (DECREASE)IN NET ASSETS -
CAPITAL TRANSACTIONS ...................... (7,700,571) 13,231,208
------------- -------------
NET INCREASE IN NET ASSETS ................... 23,903,268 53,971,266
NET ASSETS
- --------------------------------------------------------------------------------
BEGINNING OF YEAR ............................ 573,693,425 519,722,159
------------- -------------
END OF YEAR (including distributions in
excess of net income of $779,270 and
$1,562,725, respectively) ................. $ 597,596,693 $ 573,693,425
============= =============
<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.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
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.
For 1995, the investment was 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 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 1,684,879 2,092,369 $ 1,684,879 $ 2,092,369
Increase in paid-in capital ......... 32,960,445 39,906,509
------------ -----------
Total increase ................... 34,645,324 41,998,878
------------ -----------
Shares purchased (at an average
discount from net asset value of
15.7% and 16.5%, respectively).... 1,968,905 1,421,424 (1,968,905) (1,421,424)
Decrease in paid-in capital ......... (40,376,990) (27,346,246)
------------ -----------
Total decrease ................... (42,345,895) (28,767,670)
------------ -----------
Net increase (decrease) ............. ($7,700,571) $13,231,208
============ ===========
</TABLE>
The cost of the 435,726 shares of Common Stock held in Treasury at December 31,
1996 amounted to $9,762,412.
On January 15, 1997, the Board of Directors declared on the Common Stock
dividends of $10,394,776 from long-term capital gains and $1,417,469 from net
income and short-term capital gains. These dividends are payable in Common
Stock, or in cash upon request, on March 12, 1997 to stockholders of record on
January 27, 1997.
Dividends in excess of net income for financial statement purposes result
primarily from transactions where tax treatment differs from book treatment.
<PAGE>
13 NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
General American Investors
3. OPERATIONS OF CONTROLLED AFFILIATE
A summary of the operations of General American Advisers, Inc. for 1995 is shown
in the following table:
<TABLE>
<S> <C> <C>
Investment advisory fees ........................ $ 1,205,793
Operating expenses (including compensation of
officers - $536,035) $ 1,136,558
Federal, state and local taxes .................. 178,919 1,315,477
----------- -----------
Net loss ........................................ ($ 109,684)
===========
</TABLE>
4. OFFICERS' COMPENSATION AND RETIREMENT AND THRIFT PLANS
The aggregate compensation paid by the Company during 1996 and 1995 to its
officers amounted to $2,475,288 and $2,534,928, 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.
5. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (other than short-term securities) during 1996
were $168,946,717 and $243,071,890, respectively. At December 31, 1996, the cost
of investments for Federal income tax purposes was the same as the cost for
financial reporting purposes.
6. GENERAL INFORMATION
Brokerage commissions during 1996 were $425,409, including $45,077 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.
7. 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 1,062,101 160,400
Warburg, Pincus Capital Partners, L.P.* ........... 10/04/83 154,872 1,620,210
Welsh, Carson, Anderson & Stowe III* .............. 3/10/83 288,637 35,700
Other ............................................. 500,300 --
---------- ----------
Total ............................................. $3,316,710 $2,657,381
========== ==========
<FN>
* The amounts shown are net of distributions from these limited partnership
interests which, in the aggregate, amounted to $4,630,710, $3,725,979 and
$3,589,917, respectively. The initial investment in each limited partnership was
$2,000,000.
</FN>
</TABLE>
8. 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.
Rental expense approximated $426,000 for 1996. Minimum rental commitments under
the operating lease are approximately $331,000 in 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.
- --------------------------------------------------------------------------------
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
1996 and 1995 (thousands of dollars except for amounts per Common Share)."
<TABLE>
<CAPTION>
THREE MONTHS ENDED
------------------------------------------------------------------------------------
MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31
------------------ ------------------ ----------------- --------------------
1996 1995 1996 1995 1996 1995 1996 1995
-------- -------- ------- -------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Total income ................................ $ 2,619 $ 1,797 $ 2,846 $ 2,120 $ 3,307 $ 2,228 $ 2,607 $ 2,634
Net investment income ....................... 1,102 125 1,250 586 1,923 586 914 664
Per Common Share ............................ .05 .01 .05 .02 .09 .02 .03 .03
Net realized and unrealized
gain on investments ..................... 44,862 18,598 14,506 18,772 3,917 41,135 25,259 28,342
Per Common Share * .......................... 2.02 .76 .73 .83 .24 1.87 .87 1.08
<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, 1996. This information has been derived from
information contained in the financial statements and market price data for the
Company's shares."
<TABLE>
1996 1995 1994 1993 1992
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of year ................................. $ 23.94 $ 22.31 $ 24.75 $ 28.56 $ 30.60
--------- --------- --------- --------- ---------
Net investment income ........................................... .22 .08 .05 .03 --
Net gain (loss) on securities - realized and unrealized ......... 3.86 4.54 (.94) (.80) 1.05
--------- --------- --------- --------- ---------
Total from investment operation .................................... 4.08 4.62 (.89) (.77) 1.05
--------- --------- --------- --------- ---------
Less Distributions
Dividends from investment income ................................ (.20) (.11)* (.05) (.04) (.03)
Distributions from capital gains ................................ (2.58) (2.87) (1.49) (2.98) (3.06)
In excess of net income ......................................... -- (.01) (.01) (.02) --
--------- --------- --------- --------- ---------
Total distributions ................................................ (2.78) (2.99) (1.55) (3.04) (3.09)
--------- --------- --------- --------- ---------
Net asset value, end of year ....................................... $ 25.24 $ 23.94 $ 22.31 $ 24.75 $ 28.56
========= ========= ========= ========= =========
Per share market value, end of year ................................ $ 21.00 $ 20.00 $ 19.00 $ 22.25 $ 30.00
========= ========= ========= ========= =========
TOTAL INVESTMENT RETURN - Stockholder Return based on
market price per share
19.48% 21.22% -7.86% -15.92% 14.78%
RATIOS AND SUPPLEMENTAL DATA
Total net assets, end of year
(000's omitted) ................................................. $ 597,597 $ 573,693 $ 519,722 $ 553,898 $ 586,489
Ratio of expenses to average net assets ** ......................... 1.05% 1.25% 1.17% 1.16% 1.16%
Ratio of net investment income to average net assets ............... 0.88% 0.36% 0.21% 0.14% 0.00%
Portfolio turnover rate ............................................ 33.40% 29.14% 17.69% 19.50% 14.42%
Average commission rate paid ....................................... $ .0500
Shares outstanding, end of year
(000's omitted) ................................................. 23,679 23,963 23,292 22,379 20,534
<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 1.01% for 1996, 1.12% for 1995, 0.85% for 1994, 0.78% for 1993, and
0.80% for 1992.
</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, 1996, 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, 1996, 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, 1996, 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 13, 1997
OFFICERS
- --------------------------------------------------------------------------------
SPENCER DAVIDSON
President and Chief
Executive Vice Officer
VICTORIA HAMILTON
Executive Vice-President
and Chief Operating Officer
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
ChaseMellon 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 LLP, 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.
Owen, Diaz & Altschul, LLC, Managing Member
Owen, Diaz & Altschul Fund I, Ltd., Director
Access Radiology, Director
Medicis Pharmaceutical Corporation, Director
LEWIS B. CULLMAN
Cullman Ventures, Inc., President
Chess-in-the-Schools, 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
JOHN D. GORDAN,III
Morgan, Lewis & Bockius, Partner
BILL GREEN
ClientSoft, Inc., Director
Commercial Capital Corp., Director
Energy Answers Corporation, Director
New York City Campaign Finance Board, Member
New York City Housing
Development Corporation, Member and Vice Chair
SIDNEY R. KNAFEL
SRK Management Company, Managing Partner
Cellular Communications International, Inc., Director
Cellular Communications of Puerto Rico, 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
RAYMOND S. TROUBH
Becton, Dickinson and Company, Director
Foundation Health Corporation, Director
Olsten Corporation, Director
Time Warner Inc., Director
- --------------------------------------------------------
ARTHUR G. ALTSCHUL, CHAIRMAN EMERITUS
WILLIAM O. BAKER, DIRECTOR EMERITUS
WILLIAM T. GOLDEN, DIRECTOR EMERITUS
<PAGE>
General American Investors Company, Inc.
450 Lexington Avenue, New York, NY 10017
(212) 916-8400 (800) 436-8401
