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001 A000000 FRANKLIN NEW YORK TAX-FREE INCOME FUND
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002 A000000 777 MARINERS ISLAND BLVD
002 B000000 SAN MATEO
002 C000000 CA
002 D010000 94403
002 D020000 7777
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008 B000001 A
008 C000001 801-52152
008 D010001 NORWALK
008 D020001 CT
008 D030001 06854
010 A000001 FRANKLIN TEMPLETON SERVICES, INC.
010 C010001 SAN MATEO
010 C020001 CA
010 C030001 94404
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011 A000001 FRANKLIN/TEMPLETON DISTRIBUTORS, INC.
011 B000001 8-5889
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011 C020001 CA
011 C030001 94403
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<PAGE> PAGE 2
012 B000001 84-1036
012 C010001 SAN MATEO
012 C020001 CA
012 C030001 94403
012 C040001 7777
013 A000001 COOPERS & LYBRAND, L.L.P.
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013 B020001 CA
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014 A000001 FRANKLIN/TEMPLETON DISTRIBUTORS, INC.
014 B000001 8-5889
015 A000001 THE BANK OF NEW YORK
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022 A000001 SMITH BARNEY SHEARSON
022 B000001 13-1912900
022 C000001 235063
022 D000001 202395
022 A000002 PAINEWEBBER, INC.
022 B000002 13-2638166
022 C000002 205702
022 D000002 150399
022 A000003 BROWN (ALEX) & SONS, INC.
022 B000003 52-0256630
022 C000003 40366
022 D000003 56728
022 A000004 PRUDENTIAL BACHE SECURITIES
022 B000004 22-2347336
022 C000004 46106
022 D000004 42362
022 A000005 A.F. BEST SECURITIES, INC.
022 B000005 59-2325576
<PAGE> PAGE 3
022 C000005 32740
022 D000005 44293
022 A000006 FIRST ALBANY CORP.
022 B000006 14-1391446
022 C000006 41990
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022 C000007 53693
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022 B000008 31-1017233
022 C000008 39496
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022 C000009 21898
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022 C000010 20948
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
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SIGNATURE LAURA FERGERSON
TITLE ASST. TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FRANKLIN
NEW YORK TAX-FREE INCOME FUND MAY 31,1997 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 011
<NAME> FRANKLIN NEW YORK TAX-FREE INCOME FUND - CLASS I
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1997
<PERIOD-END> MAY-31-1997
<INVESTMENTS-AT-COST> 4,466,614,223
<INVESTMENTS-AT-VALUE> 4,709,472,879
<RECEIVABLES> 85,804,772
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 117,240
<TOTAL-ASSETS> 4,795,394,891
<PAYABLE-FOR-SECURITIES> 5,727,196
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 10,727,342
<TOTAL-LIABILITIES> 16,454,538
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4,538,174,534
<SHARES-COMMON-STOCK> 403,622,191
<SHARES-COMMON-PRIOR> 410,969,338
<ACCUMULATED-NII-CURRENT> 2,033,498
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (4,126,335)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 242,858,656
<NET-ASSETS> 4,778,940,353
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 309,833,868
<OTHER-INCOME> 0
<EXPENSES-NET> (28,788,554)
<NET-INVESTMENT-INCOME> 281,045,314
<REALIZED-GAINS-CURRENT> (2,607,119)
<APPREC-INCREASE-CURRENT> 95,305,025
<NET-CHANGE-FROM-OPS> 373,743,220
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (278,715,300)
<DISTRIBUTIONS-OF-GAINS> (10,650,658)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 32,064,194
<NUMBER-OF-SHARES-REDEEMED> (50,892,502)
<SHARES-REINVESTED> 11,481,161
<NET-CHANGE-IN-ASSETS> 30,410,565
<ACCUMULATED-NII-PRIOR> 2,622,929
<ACCUMULATED-GAINS-PRIOR> 9,258,390
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 21,846,977
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 28,788,554
<AVERAGE-NET-ASSETS> 4,795,449,402
<PER-SHARE-NAV-BEGIN> 11.460
<PER-SHARE-NII> .680
<PER-SHARE-GAIN-APPREC> .227
<PER-SHARE-DIVIDEND> (0.681)
<PER-SHARE-DISTRIBUTIONS> (0.026)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 11.660
<EXPENSE-RATIO> .590
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FRANKLIN
NEW YORK TAX-FREE INCOME FUND MAY 31,1997 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER>012
<NAME> FRANKLIN NEW YORK TAX-FREE INCOME FUND - CLASS II
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1997
<PERIOD-END> MAY-31-1997
<INVESTMENTS-AT-COST> 4,466,614,223
<INVESTMENTS-AT-VALUE> 4,709,472,879
<RECEIVABLES> 85,804,772
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 117,240
<TOTAL-ASSETS> 4,795,394,891
<PAYABLE-FOR-SECURITIES> 5,727,196
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 10,727,342
<TOTAL-LIABILITIES> 16,454,538
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4,538,174,534
<SHARES-COMMON-STOCK> 6,368,559
<SHARES-COMMON-PRIOR> 3,409,918
<ACCUMULATED-NII-CURRENT> 2,033,498
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (4,126,335)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 242,858,656
<NET-ASSETS> 4,778,940,353
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 309,833,868
<OTHER-INCOME> 0
<EXPENSES-NET> (28,788,554)
<NET-INVESTMENT-INCOME> 281,045,314
<REALIZED-GAINS-CURRENT> (2,607,119)
<APPREC-INCREASE-CURRENT> 95,305,025
<NET-CHANGE-FROM-OPS> 373,743,220
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2,919,445)
<DISTRIBUTIONS-OF-GAINS> (126,948)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,577,561
<NUMBER-OF-SHARES-REDEEMED> (778,579)
<SHARES-REINVESTED> 159,659
<NET-CHANGE-IN-ASSETS> 30,410,565
<ACCUMULATED-NII-PRIOR> 2,622,929
<ACCUMULATED-GAINS-PRIOR> 9,258,390
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 21,846,977
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 28,788,554
<AVERAGE-NET-ASSETS> 4,795,449,402
<PER-SHARE-NAV-BEGIN> 11.450
<PER-SHARE-NII> .630
<PER-SHARE-GAIN-APPREC> .208
<PER-SHARE-DIVIDEND> (0.612)
<PER-SHARE-DISTRIBUTIONS> (0.026)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 11.650
<EXPENSE-RATIO> 1.170
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
NAME OF REGISTRANT:
Franklin New York Tax-Free Income Fund, Inc.
File No. 811-3479
EXHIBIT ITEM No. 77C:
Submission of matters to a vote of security holders.
FRANKLIN NEW YORK TAX-FREE INCOME FUND
CONSENT OF SOLE SHAREHOLDER
Pursuant to the provisions of Section 4 of Article V of
the Agreement and Declaration of Trust of Franklin New
York Tax-Free Income Fund, a Delaware business trust
(the "Trust"), which governs actions taken by unanimous
written consent of shareholders, the undersigned, being
the sole shareholder of the Trust, does hereby waive
the requirement of written notice of the actions set
forth herein, and does hereby approve, ratify and
consent to the following resolutions:
NOW, THEREFORE, IT IS
RESOLVED, that the reorganization of Franklin New York
Tax-Free Income Fund, Inc, a New York corporation (the
"Fund") and the Trust pursuant to an Agreement and Plan
of Reorganization (the "Reorganization"), which will
involve: (i) the acquisition by the Trust of
substantially all of the assets of the Fund in exchange
solely for shares of beneficial interest in the Trust;
(ii) the distribution of such shares of beneficial
interest of the Trust to the shareholders of the Fund
according to their respective interest; and (iii) the
dissolution of the Fund as soon as practicable after
the closing of the Reorganization is hereby approved;
and it is
FURTHER RESOLVED, that the Agreement and Plan of
Reorganization through which the Reorganization shall
be accomplished is hereby approved; and it is
FURTHER RESOLVED, that the following individuals shall
serve as trustees of the Trust until their successors
are elected and shall qualify:
Harris J. Ashton
S. Joseph Fortunato
Charles B. Johnson
Rupert H. Johnson, Jr.
Gordon S. Macklin
and it is
FURTHER RESOLVED, that the selection of Coopers &
Lybrand L.L.P., as independent auditors of the Trust
for the fiscal year ending May 31, 1997 is hereby
ratified and approved; and it is
FURTHER RESOLVED, that the investment management
agreement between the Trust and Franklin Investment
Advisory Services, Inc. (the "Manager"), which is
substantially identical to the current investment
management agreement between the Fund and the Manager is hereby approved;
and it is
FURTHER RESOLVED, that the Class I and Class II distribution plans relating to
the Class I and Class II shares of the Trust, as adopted pursuant to Rule 12b-1
under the Investment Company Act of 1940, as amended, which is substantially
identical to the current Rule 12b-1 distribution plans for the Class I and
Class II shares of the Fund is hereby approved.
IN WITNESS WHEREOF, the undersigned, being the sole
shareholder of the Trust has executed this consent as
of the 28th day of April, 1997.
FRANKLIN NEW YORK TAX-FREE INCOME
FUND, INC.
By: /s/ H.E. Burns
Harmon E. Burns
Vice President
Filed with the minutes of the proceedings of the Trust,
this 28th day of April, 1997.
/s/ D.R. Gatzek______
Deborah R. Gatzek
Assistant Secretary
nsar\1997\115-77c.doc
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors of Franklin
New York Tax-Free Income Fund:
In planning and performing our audit of the financial
statements and financial highlights of the Franklin
New York Tax-Free Income Fund for the
year ended May 31, 1997, we considered its internal
control structure, including procedures for
safeguarding securities, in order to determine our
auditing procedures for the purpose of expressing our
opinion on the financial statements and financial
highlights and to comply with the requirements of Form
N-SAR, not to provide assurance on the internal control
structure.
The management of the Franklin New York Tax-Free Income
Fund is responsible for establishing and maintaining an
internal control structure. In fulfilling this
responsibility, estimates and judgments by management
are required to assess the expected benefits and
related costs of internal control structure policies
and procedures. Two of the objectives of an internal
control structure are to provide management with
reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or
disposition and that transactions are executed in
accordance with management's authorization and recorded
properly to permit preparation of financial statements
in conformity with generally accepted accounting
principles.
Because of inherent limitations in any internal control
structure, errors or irregularities may occur and not
be detected. Also, projection of any evaluation of the
structure to future periods is subject to the risk that
it may become inadequate because of changes in
conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of the internal control structure
would not necessarily disclose all matters in the
internal control structure 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 the specific internal control structure
elements does not reduce to a relatively low level the
risk that errors or irregularities in amounts that
would be material in relation to the financial
statements and financial highlights 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 internal control structure, including
procedures for safeguarding securities, that we
consider to be material weaknesses, as defined above,
as of May 31, 1997.
This report is intended solely for the information and
use of management of the Franklin New York Tax-Free
Income Fund and the Securities and Exchange Commission.
S\Coopers & Lybrand L.L.P.
San Francisco, California
July 8, 1997
