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<PAGE> PAGE 2
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SIGNATURE PATRICK F. QUAN
TITLE SECRETARY
A version of this report was published in the Annual Report to Shareholders
dated 12/31/99
AMBAL RESULTS OF SHAREHOLDERS MEETING (Unaudited)
Held December 1, 1999
Shares Outstanding on September 15, 1999 (record date) 390,133,741
Shares Voting on December 1, 1999 245,517,076 (62.9%)
PROPOSAL 1: ELECTION OF DIRECTORS
<TABLE>
<CAPTION>
DIRECTOR VOTES FOR PERCENT OF VOTES PERCENT OF
SHARES VOTING WITHHELD SHARES
FOR WITHHELD
<S> <C> <C> <C> <C>
Robert A. Fox 241,644,988 98% 3,872,088 2%
Roberta L. Hazard 241,578,197 98 3,938,879 2
Leonade D. Jones 241,612,639 98 3,904,437 2
John G. McDonald 241,649,424 98 3,867,652 2
Robert G. O'Donnell 241,756,369 98 3,760,707 2
James K. Peterson 241,779,291 98 3,737,785 2
James W. Ratzlaff 241,685,802 98 3,831,274 2
Henry E. Riggs 241,739,906 98 3,777,170 2
Walter P. Stern 241,679,417 98 3,837,659 2
Patricia K. Woolf 241,512,490 98 4,004,586 2
</TABLE>
PROPOSAL 2: AMENDMENT TO ARTICLES OF INCORPORATION REDUCING THE PAR VALUE PER
SHARE OF CAPITAL STOCK
<TABLE>
<CAPTION>
VOTES FOR PERCENT OF VOTES AGAINST PERCENT OF ABSTENTIONS PERCENT OF
SHARES VOTING SHARES VOTING SHARES
FOR AGAINST ABSTAINING
<S> <C> <C> <C> <C> <C>
225,910,644 92% 8,720,100 4% 10,886,332 4%
</TABLE>
PROPOSAL 3: ELIMINATE OR REVISE CERTAIN OF THE FUND'S INVESTMENT RESTRICTIONS
<TABLE>
<CAPTION>
VOTES FOR PERCENT VOTES PERCENT ABSTENTIONS PERCENT OF
OF AGAINST OF SHARES
SHARES SHARES ABSTAINING
VOTING VOTING
FOR AGAINST
<S> <C> <C> <C> <C> <C> <C>
3A. Borrowing 170,018,288 69% 12,028,055 5% 11,981,782 5%
(Broker Non-Votes
=
51,488,952)
3B. Joint Trading 171,361,987 70% 10,688,632 4% 11,977,504 5%
Account (Broker
Non-Votes =
51,488,952)
3C. Securities 171,660,013 70% 10,126,728 4% 12,241,383 5%
Transactions with
Affiliates
(Broker Non-Votes
= 51,488,952)
3D. Affiliated 170,731,715 69% 11,088,101 5% 12,208,308 5%
Ownership (Broker
Non-Votes =
51,488,952)
3E. Purchasing 170,780,646 70% 10,653,936 4% 12,593,542 5%
Securities
of Other
Investment
Companies (Broker
Non-Votes = 51,488,952)
</TABLE>
PROPOSAL 4: RATIFICATION OF AUDITORS
<TABLE>
<CAPTION>
VOTES FOR PERCENT OF VOTES AGAINST PERCENT OF ABSTENTIONS PERCENT OF
SHARES VOTING SHARES VOTING SHARES
FOR AGAINST ABSTAINING
<S> <C> <C> <C> <C> <C>
235,430,485 96% 2,318,281 1% 7,768,310 3%
</TABLE>
INDEPENDENT AUDITORS' REPORT
To the Board of Directors of American Balanced Fund, Inc.:
In planning and performing our audit of the financial
statements of the American Balanced Fund, Inc. (the "Fund")
for the year ended December 31, 1999 (on which we have
issued our report dated January 28, 2000), we considered
its internal control, including control activities for
safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the
financial statements and to comply with the requirements of
Form N-SAR, and not to provide assurance on the Fund's
internal control.
The management of the Fund is responsible for establishing
and maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs
of controls. Generally, controls that are relevant to an
audit pertain to the entity's objective of preparing
financial statements for external purposes that are fairly
presented in conformity with generally accepted accounting
principles. Those controls include the safeguarding of
assets against unauthorized acquisition, use, or
disposition.
Because of inherent limitations in any internal control,
misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of internal
control to future periods are subject to the risk that the
internal control may become inadequate because of changes
in conditions, or that the degree of compliance with
policies or procedures may deteriorate.
Our consideration of the Fund's internal control would not
necessarily disclose all matters in the internal control
that might be material weaknesses under standards
established by the American Institute of Certified Public
Accountants. A material weakness is a condition in which
the design or operation of one or more of the internal
control components does not reduce to a relatively low
level the risk that misstatements caused by error or fraud
in amounts that would be material in relation to the
financial statements being audited may occur and not be
detected within a timely period by employees in the normal
course of performing their assigned functions. However, we
noted no matters involving the Fund's internal control and
its operation, including controls for safeguarding
securities, that we consider to be material weaknesses as
defined above as of December 31, 1999.
This report is intended solely for the information and use
of management, the Board of Directors of the American
Balanced Fund, Inc., and the Securities and Exchange
Commission and is not intended to be and should not be used
by anyone other than these specified parties.
DELOITTE & TOUCHE LLP
Los Angeles, California
January 28, 2000
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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<NET-ASSETS> 5,981,449
<DIVIDEND-INCOME> 88,998
<INTEREST-INCOME> 169,975
<OTHER-INCOME> 0
<EXPENSES-NET> 40,120
<NET-INVESTMENT-INCOME> 218,853
<REALIZED-GAINS-CURRENT> 506,275
<APPREC-INCREASE-CURRENT> (525,013)
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<NUMBER-OF-SHARES-REDEEMED> 103,300,568
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<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 17,704
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 40,120
<AVERAGE-NET-ASSETS> 6,104,378
<PER-SHARE-NAV-BEGIN> 15.76
<PER-SHARE-NII> 0.56
<PER-SHARE-GAIN-APPREC> (0.04)
<PER-SHARE-DIVIDEND> 0.56
<PER-SHARE-DISTRIBUTIONS> 1.30
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<PER-SHARE-NAV-END> 14.42
<EXPENSE-RATIO> .007
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
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