<PAGE>
- --------------------------------------------------------------------------------
DAILY TAX FREE 600 FIFTH AVENUE, NEW YORK, NY 10020
INCOME FUND, INC. 212-830-5200
================================================================================
Dear Shareholder:
We are pleased to present the annual report of Daily Tax Free Income Fund, Inc.
for the year ended October 31, 1999.
The Fund had net assets of $614,807,786 and 4,784 active shareholders.
We thank you for your support and look forward to continuing to serve your cash
management needs.
Sincerely,
\s\Steven W. Duff
Steven W. Duff
President
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS
OCTOBER 31, 1999
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Value Standard
Amount Yield (Note 1) Moody's & Poor's
------ ----- ------ ------- -------
Variable Rate Demand Instruments - Participations (1.86%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 566,665 The Bank of New York LOC covering four issues
due 11-03-99 through 05-01-01 4.86% to 4.95% $ 566,665 P1 A1+
9,666,841 Chase Manhattan Bank LOC covering six issues
due 11-01-99 through 05-01-13 4.53% to 5.36% 9,666,841 P1 A1+
240,609 The First National Bank of Maryland LOC covering three issues
due 12-15-00 through 09-15-02 4.95% 240,609 P1 A1
975,000 PNC Bank, N.A. LOC covering one issue due 07-01-03 6.90% 975,000 P1 A1
----------- ------------
11,449,115 Total Variable Rate Demand Instruments - Participations 11,449,115
----------- ------------
<CAPTION>
Variable Rate Demand Instruments - Private Placements (8.87%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 1,180,000 Banc One Arizona LOC covering two issues
due 07-31-04 through 04-01-05 5.36% $ 1,180,000 P1 A1
1,500,000 Banque Nationale de Paris LOC covering one issue
due 12-01-00 4.95% 1,500,000 P1 A1+
734,904 Comerica Bank - Detroit LOC covering four issues
due 02-01-00 through 05-01-05 4.95% 734,904 P1 A1
2,000,000 Creditanstalt-Bankverein LOC covering one issue
due 06-01-10 4.95% 2,000,000 P1 A1+
1,500,000 Dresdner Bank AG LOC covering one issue due 12-28-14 4.80% 1,500,000 P1 A1+
5,370,000 The First National Bank of Maryland LOC covering two issues
due 07-01-04 through 12-01-20 3.50% to 5.36% 5,370,000 P1 A1
2,419,345 The Huntington National Bank LOC covering one issue
due 10-01-05 5.61% 2,419,345 P1 A1
1,015,000 Key Bank, N.A. LOC covering one issue due 07-01-15 4.95% 1,015,000 P1 A1
19,074 NationsBank, N.A. LOC covering one issue due 12-01-99 5.36% 19,074 P1 A1
343,000 Norwest Bank, N.A. LOC covering two issues
due 07-01-00 through 07-01-01 5.11% to 5.36% 343,000 P1 A1+
1,873,000 PNC Bank, N.A. LOC covering two issues
due 12-01-00 through 06-30-02 5.36% 1,873,000 P1 A1+
11,031,500 Seattle-First National Bank
LOC Backed by Bank of America NT & SA LOC
covering five issues due 01-01-05 through 11-15-15 5.36% 11,031,500 P1 A1
4,000,000 Societe Generale LOC covering one issue due 11-01-05 4.95% 4,000,000 P1 A1+
11,101,000 Union Bank of California LOC covering three issues
due 12-01-15 4.95% 11,101,000 P1 A1+
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Value Standard
Amount Yield (Note 1) Moody's & Poor's
------ ----- ------ ------- -------
Variable Rate Demand Instruments - Private Placements (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 1,200,000 Wells Fargo Bank, N.A. LOC covering two issues
due 12-15-04 through 08-01-05 5.03% $ 1,200,000 P1 A1+
3,750,000 York Bank and Trust LOC covering one issue
due 12-01-14 3.45% 3,750,000 P1 A1
5,500,401 Zion's National Bank Liquidity Facility covering one issue
due 12-10-15 5.36% 5,500,401 P1 A2
----------- ------------
54,537,224 Total Variable Rate Demand Instruments - Private Placements 54,537,224
----------- ------------
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Other Tax Exempt Investments (20.76%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5,000,000 Allegheny County, Port Authority GAN 06/30/00 3.23% $ 5,023,040 MIG-1
4,000,000 Belknap County, NH TAN (b) 12/29/99 3.25 4,000,627
1,040,000 Burleigh County, ND Bismarck Public School District (b) 05/01/00 3.19 1,045,535
7,370,000 Campbell County, WY
School District Number 1 TAW - Series 1997 (b) 06/28/00 3.30 7,388,663
5,000,000 Cheshire County, NH TAN (b) 12/27/99 3.15 5,001,215
5,300,000 City of Fall River, MA BAN 03/15/00 3.10 5,306,627 MIG-1
4,650,000 City of Lawrence, KS GO Temporary Notes - Series 1999 06/01/00 3.20 4,650,000 MIG-1
4,460,000 City of Lawrence, KS GO Temporary Notes - Series 1999 10/01/00 3.80 4,460,000 MIG-1
9,030,000 City of Westbrook, Maine GO BAN - Series 1999 06/30/00 3.46 9,031,672 MIG-1 SP-1+
4,000,000 Erie County, PA TAN (b)
LOC PNC Bank, N.A. 12/30/99 3.06 4,003,448
4,000,000 Gwinnett County, GA School Construction Sales Tax Notes 12/31/99 3.10 4,002,061 MIG-1
4,000,000 Indiana Bond Bank Advanced Funding 01/19/00 2.94 4,004,471 MIG-1 SP-1+
1,245,000 Iowa Higher Education Loan Authority (William Penn College) (b)
LOC Mercantile National Bank 05/24/00 3.15 1,246,011
5,000,000 Kentucky Interlocal School TRAN 06/30/00 3.49 5,014,269 MIG-1 SP-1+
5,000,000 Linn County, IA
Cedar Rapids Community School District - Series 1999 (b) 07/07/00 3.35 5,001,633
2,500,000 Minnesota Tax and Aid Borrowing Program 02/24/00 2.95 2,500,000 MIG-1
3,910,000 Missouri HEFA (Drury College) 04/29/00 3.13 3,915,961 SP-1+
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
- --------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
OCTOBER 31, 1999
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Other Tax Exempt Investments (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,055,000 Missouri HEFA (Kirksville College of Osteopa) 04/29/00 3.13% $ 2,058,133 SP-1+
1,200,000 Montgomery County, PA GO Bond (b) 07/15/00 3.30 1,200,000
3,610,000 Multinomah County, OR School District #1
Insured by MBIA Insurance Corp. 06/01/00 3.22 3,610,400 Aaa AAA
3,000,000 Municipality of Anchorage, AK GO TAN 01/04/00 2.91 3,004,083 MIG-1 SP-1+
2,100,000 Palmyra-Eagle School District, WI TRAN (b) 10/10/00 3.89 2,101,326
1,390,000 Pennsylvania Intergovernmental (Philadelphia Funding Program)
Insured by FGIC 06/15/00 3.17 1,400,472 Aaa AAA
5,000,000 Racine Unified School District TRAN 07/06/00 3.40 5,007,042 MIG-1
1,000,000 Richmond County, GA Board of Education GO Bond (b) 03/01/00 3.23 1,003,871
2,950,000 Spartanburg, SC School District #1 GO BAN - Series 1999 (b) 06/01/00 3.29 2,952,482
3,000,000 State of Missouri Development RB (Science City Union Station) (b)
LOC Canadian Imperial Bank of Commerce 12/01/99 2.92 3,002,658
12,000,000 State of Texas State TRAN 08/31/00 3.65 12,076,741 MIG-1 SP-1+
1,148,177 Stratford County, NH BAN (b) 04/14/00 3.30 1,150,212
2,740,000 Summitt County, OH BAN 11/18/99 2.96 2,740,773 MIG-1 SP-1+
2,500,000 Watertown, WI Unified School District (b) 11/01/00 3.84 2,502,400
5,000,000 Weber County, UT TRAN (b) 12/30/99 3.10 5,002,751
3,250,000 Wiscosin School District (b) 09/28/00 4.03 3,250,000
------------ ------------
127,448,177 Total Other Tax Exempt Investments 127,658,577
------------ ------------
<CAPTION>
Other Variable Rate Demand Instruments (c) (54.32%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 11,400,000 Angelina & Neches River, TX
Industrial Development Corporation Solid Waste RB
LOC Credit Suisse First Boston 05/01/14 3.60% $ 11,400,000 P1
4,700,000 Brazos River, TX Harbor Naval District
(Badishce Corporation Facility)
LOC Credit Suisse First Boston 12/01/19 3.70 4,700,000 A1+
2,200,000 Carlton, WI Pollution Control RB
(Wisconsin Power & Light) 09/01/05 3.50 2,200,000 P1 A1+
3,495,000 Chelan County, WA Public Utilities District #001
(Chelan Hydro Project) - Series A
Insured by MBIA Insurance Corp. 06/01/15 3.50 3,495,000 VMIG-1 A1+
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Other Variable Rate Demand Instruments (c) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,100,000 Citrus Park Community Development
LOC Dresdner Bank 11/01/16 3.35% $ 2,100,000 VMIG-1
1,000,000 City of Atlantic Beach, FL (Fleet Landing Project) RB
LOC Bank of America 10/01/24 3.60 1,000,000 VMIG-1
3,000,000 City of Baltimore, MD PCRB
LOC Toronto-Dominion Bank 02/01/00 3.50 3,000,000 A1+
5,300,000 City of Burlington, KS Environmental Improvement
(Kansas City Power & Light Co.) 09/01/15 3.65 5,300,000 VMIG-1 A1
3,000,000 City of Jacksonville, FL (Health Science Center) - Series 1989
LOC Bank of America 07/01/19 3.80 3,000,000 VMIG-1
7,000,000 City of Valdez, AK Marine Terminal TRAN - Series 1994B 05/01/31 3.40 7,000,000 VMIG-1 A1
6,420,000 Clarksville, TN Public Building Authority Pooled Financing RB
LOC Bank of America 06/01/24 3.60 6,420,000 A1+
3,100,000 Connecticut State Health & Education Finance Authority
(Yale University) 07/01/29 3.40 3,100,000 VMIG-1 A1+
4,900,000 Cuyahoga County, OH HRB (The Cleveland Clinic Foundation)
Insured by AMBAC Indemnity Corp. 01/01/16 3.45 4,900,000 VMIG-1 A1+
14,600,000 DeKalb County, GA Housing Authority
LOC Bank of Montreal 12/01/07 3.50 14,600,000 A1+
1,500,000 Delaware County, PA (British Petroleum Oil) 12/01/09 3.60 1,500,000 P1 A1+
2,700,000 District of Columbia (George Washington University)
LOC Bank One 03/01/06 3.60 2,700,000 VMIG-1
9,800,000 Emmaus, PA General Authority Local Government Revenue
Bond Pool Project - Series 1989 G-14
LOC Bayerische Landesbank 03/01/24 3.55 9,800,000 A1+
2,000,000 Florida HFA MHRB - Series TT
LOC Citibank 12/01/07 3.50 2,000,000 A1+
6,350,000 Florida Housing Finance Agency (Springs Colony )
Guaranteed by Federal National Mortgage Association 09/15/26 3.40 6,350,000 A1+
3,000,000 Florida MHRB (Monterey Meadow Apartments) - Series 1985 YY
LOC Citibank 12/01/07 3.50 3,000,000 A1+
5,000,000 Florida State Municipal Power Agency (Stanton Project)
Insured by MBIA Insurance Corp. 10/01/19 3.40 5,000,000 A1
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
- --------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
OCTOBER 31, 1999
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Other Variable Rate Demand Instruments (c) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,250,000 Franklin County, OH RB
(The Villas at Saint Therse Project) - Series 1997F (b)
LOC Fifth Third Bank 10/01/22 3.60% $ 2,250,000
1,000,000 Greensboro, NC Variable Public Improvement - Series B 04/01/14 3.50 1,000,000 VMIG-1 A1+
2,000,000 Gulf Coast, TX Waste Disposal (Armco Inc. Project) (b)
LOC Chase Manhattan Bank 12/01/08 3.60 2,000,000
1,000,000 Highlands County, FL Health Facilities
(Adventist Health/ Sunbelt) - Series 1996 10/01/26 3.55 1,000,000 VMIG-1 A1+
720,000 Hillsborough County, FL IDA (ADP Inc. Project) (b) 02/01/01 3.85 720,000
6,250,000 Hillsborough County, FL IDA (Tampa Electric Company Gannon) 05/15/18 3.55 6,250,000 VMIG-1 A1+
4,700,000 Illinois Charitabulls Development Finance Authority
(James Jordan Boys & Girls
Club & Family Life Center Project) - Series 1995
LOC American National Bank & Trust Company of Chicago/
LaSalle National Bank 08/01/30 3.45 4,700,000 A1+
5,000,000 Illinois HFFA RB (St. Lukes Medical Center)
Insured by MBIA Insurance Corp. 11/15/23 3.45 5,000,000 VMIG-1 A1+
6,000,000 Illinois IDFA Chicago Educational Television - Series 1994A
LOC Harris Trust & Savings Bank 11/01/14 3.45 6,000,000 VMIG-1
19,400,000 Illinois Museum of Contemporary Art 1994
LOC Northern Trust\Harris Trust\LaSalle National\
National Bank of Detroit 02/01/29 3.45 19,400,000 VMIG-1 A1+
3,000,000 Jackson County, MI EDC (Thrifty Leoni) (b)
LOC Bank One 12/01/14 3.67 3,000,000
2,400,000 Jacksonville, FL HFA (River Garden Project)
LOC First Union National Bank 02/01/18 3.45 2,400,000 A1
5,000,000 Kentucky EDFA (Pooled Hospital Loan Program) 08/01/18 3.65 5,000,000 A1+
5,000,000 Lubbock, TX Educational Facilities Authority
(Lubbock Christian University) 05/01/29 3.55 5,000,000 VMIG-1
16,665,000 Massachusetts State HEFA RB (Harvard University) 08/01/17 3.34 16,665,000 VMIG-1 A1+
3,500,000 Massachusetts Health and Education Finance Authority
(Harvard University) - Series Q-3 09/01/40 3.34 3,500,000 VMIG-1 A1+
5,000,000 Mecklenburg County, NC Variable Revenue Bonds - Series C 02/01/17 3.40 5,000,000 VMIG-1 A1
570,000 Mecklenburg County, NC PCFA (Aplix, Inc.) (b)
LOC Wachovia Bank & Trust Co., N.A. 12/01/99 3.45 570,000
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Other Variable Rate Demand Instruments (c) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,100,000 Michigan Strategic Fund Limited Obligation RB
(Detroit Edison Co.) - Series CC
LOC Barclays Bank PLC 09/01/30 3.50% $ 1,100,000 P1 A1+
5,310,000 Missouri State HEFA (Barnes Hospital)
LOC Morgan Guaranty Trust Company 12/01/15 3.40 5,310,000 VMIG-1 A1+
4,430,000 Montgomery County, MD EDC RB
(Brooke Grove Foundations, Incorporated Facilities) - Series 1995
LOC First National Bank of Maryland 01/01/16 3.53 4,430,000 A1
1,900,000 Montgomery County, TX IDRB
(Houston Area Residential Center project) - Series 1985
LOC Banque Nationale de Paris 12/01/15 3.65 1,900,000 A1
13,600,000 Montgomery County, TX MHRB Housing Opportunity
(Oakwood-Gainsburg)
Guaranteed by Freddie Mac 11/01/07 3.45 13,600,000 A1+
900,000 New Mexico State Highway Commission
Adjustable Tender Subordinate Lien
Tax Revenue Highway Bonds - Series 1996
Insured by FSA 06/15/11 3.45 900,000 VMIG-1 A1+
7,800,000 North Carolina Medcare Commission Hospital Revenue Bonds
(Duke University) - Series A 06/01/23 3.45 7,800,000 VMIG-1 A1+
4,400,000 Orange County, FL Health Facilities - Adventist
LOC SunTrust Bank 11/15/14 3.55 4,400,000 VMIG-1 A1+
5,115,000 Orange County, FL HFA MHRB (Post Fountains Project)
Guaranteed by Federal National Mortgage Association 06/01/25 3.55 5,115,000 A1+
6,000,000 Orange County, FL HFA RB (Smokewood/SunKey Apartments)
LOC Citibank 12/01/22 3.50 6,000,000 A1+
5,800,000 Oregon State GO - Series 73F
LOC Bayerische Landesbank 12/01/17 3.45 5,800,000 VMIG-1 A1+
2,000,000 Palm Beach County, FL RB
(Jewish Community Campus Corporation)
Insured by AMBAC Indemnity Corp. 03/01/27 3.40 2,000,000 A1+
7,500,000 Palm Beach County, FL IDRB (Northern Gallery of Art Project)
LOC Northern Trust 05/01/25 3.40 7,500,000 A1+
2,200,000 Pacificorp Project - Series 1991 (Utah Pollution Control)
LOC Credit Suisse First Boston 07/01/15 3.45 2,200,000 P1 A1+
8,000,000 Pasco County, FL School Board COPS
Insured by AMBAC Indemnity Corp. 08/01/26 3.45 8,000,000 VMIG-1 A1+
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
- --------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
OCTOBER 31, 1999
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Other Variable Rate Demand Instruments (c) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 900,000 Penninsula Port Authority of Virginia Coal Terminal RB
(Dominion Terminal Project) - 1987D
LOC Barclays Bank PLC 07/01/16 3.55% $ 900,000 P1
1,200,000 Petersburg, VA HRB
LOC First Union National Bank 07/01/17 3.60 1,200,000 A1
900,000 Philadelphia, PA Hospital & Higher Facility HRB
(Friends Hospital) - Series A (b)
LOC PNC Bank, N.A. 03/01/06 3.60 900,000
7,350,000 Phoenix, AZ IDA MHRB Refunding
(Bell Square Apartments Project) - Series 1995
LOC General Electric Capital Corporation 06/01/25 3.60 7,350,000 A1+
3,500,000 Phoenix, AZ IDA MHRB Refunding
(Paradise Lake Apartments Project) - Series 1995
LOC General Electric Capital Corporation 07/01/25 3.60 3,500,000 A1+
4,815,000 Pinellas County, FL Health Facilities (St. Mark's Village Project)
LOC Bank of America 03/01/17 3.50 4,815,000 A1+
1,100,000 Pitkin County, CO IDRB
(Aspen Skiing Co.)
LOC Bank One 04/01/16 3.50 1,100,000 A1+
2,675,000 Polk County, FL IDRB (Fertilizer Project)
LOC Rabobank Nederland 02/01/00 3.50 2,675,000 P1
1,300,000 Port of Corpus Christi, TX (Reynolds Metals Co. Project)
LOC Westdeutche Landesbank 09/01/14 3.45 1,300,000 P1 A1+
2,550,000 Prince George County, MD EDC RB (b)
LOC Fleet National Bank & Trust 09/30/15 5.36 2,550,000
1,000,000 Raleigh Durham, NC Airport Authority
(American Airlines) - Series 1995A
LOC Bank of America 11/01/05 3.55 1,000,000 A1+
950,000 Richmond, VA Capital Region Airport
(Richmond International Airport)
Insured by AMBAC Indemnity Corp. 07/01/25 3.60 950,000 VMIG-1 A1+
200,000 Richmond, VA Union University
LOC Bank of America 12/01/07 3.60 200,000 A1+
2,615,000 St. Cloud, MN Commercial Development (Kelly Inn Project) (b)
LOC First Bank of South Dakota 04/01/13 3.60 2,615,000
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Other Variable Rate Demand Instruments (c) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,900,000 Salina, KS (Dillards Project) (b)
LOC Bank of America 12/01/14 3.80% $ 2,900,000
1,600,000 Salt Lake City, UT PCRB
(Service Station Holdings - British Petroleum Oil) 08/01/07 3.60 1,600,000 P1 A1+
1,400,000 Salt Lake City, UT PCRB
(Service Station Holdings - British Petroleum Oil) 02/01/08 3.50 1,400,000 P1 A1+
4,500,000 San Antonio, TX IDA (Rivercenter Project) (b)
LOC PNC Bank, N.A. 12/01/12 3.60 4,500,000
2,130,000 Sarpy County, NE PCRB
(Allied Signal, Inc. Project) - Series 1995 07/01/13 3.60 2,130,000 A1
2,000,000 Southgate, MI EDC EDRB (Trust Realty Corporation Project)
LOC Bankers Trust Company 10/01/18 3.67 2,000,000 A1
2,000,000 Southwest Higher Education Authority Inc.
(Southern Methodist University)
LOC Landesbank Hessen 07/01/15 3.55 2,000,000 VMIG-1
5,100,000 State of Ohio Environmental Improvement
(U.S. Steel Corp. USX)
LOC PNC Bank, N.A. 12/01/01 3.90 5,100,000 P1
2,800,000 State of Oregon (Eagle Picher Industries)
LOC ABN AMRO Bank 12/01/04 3.45 2,800,000 P1 A1+
3,000,000 Tampa, FL Health Care Facilities
(Lifelink Foundation Inc. Project) (b)
LOC SunTrust Bank 08/01/22 3.60 3,000,000
1,675,000 Terre Haute, IN EDRB
(Westminster Village Terre Haute Inc.) (b)
LOC Huntington National Bank 07/01/01 3.97 1,675,000
1,900,000 University of North Florida Capital Improvement
LOC First Union National Bank 11/01/24 3.55 1,900,000 VMIG-1
825,000 Virginia College Building Authority
(University of Richmond Project) 11/01/26 3.45 825,000 VMIG-1
2,000,000 Volusia County, FL HFA S.W. (Volusia Hospital)
LOC First Union National Bank 11/15/23 3.45 2,000,000 A1
1,000,000 Wake County, NC Industrial Facilities PCFA
(Carolina Power & Light Co.)
LOC Wachovia Bank & Trust Co., N.A. 05/01/15 3.45 1,000,000 P1 A1+
------------ ------------
333,960,000 Total Other Variable Rate Demand Instruments 333,960,000
------------ ------------
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
- --------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
OCTOBER 31, 1999
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Put Bonds (d) (2.85%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 9,995,000 DeKalb County, GA MHRB - Series 1985L
LOC Amsouth Bank N.A. 12/01/99 3.00% $ 9,995,000 A1+
2,500,000 Nashville & Davidson County, TN
(Vanderbuilt University) - Series 1985A 01/15/00 3.10 2,500,000 MIG-1 A1+
5,000,000 Regents of the University of Colorado
(Master Lean Purchase Agreement)
LOC Bayerische Landesbank 07/01/00 3.50 5,000,000 VMIG-1 A1+
------------ ------------
17,495,000 Total Put Bonds 17,495,000
------------ ------------
<CAPTION>
Revenue Bond (0.33%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,000,000 State of Oregon Housing and Community Services
(Single Family Mortgage Program)
Collateralized by U.S. Government Securities 11/02/00 3.85 % $ 2,000,000 MIG-1
------------ ------------
2,000,000 Total Revenue Bond 2,000,000
------------ ------------
<CAPTION>
Tax Exempt Commercial Paper (11.15%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,700,000 Alleghany PA IDA (Duquense Light Company)
LOC Canadian Imperial Bank of Commerce 11/18/99 3.60% $ 2,700,000 A1+
8,000,000 Baltimore, MD Metropolitan District BAN - Series 1995
(Kansas City Power and Light Company Project) 11/10/99 3.25 8,000,000 P1 A1+
5,000,000 City of Philadelphia, PA Gas Works
LOC Canadian Imperial Bank of Commerce 11/09/99 3.35 5,000,000 P1 A1+
3,500,000 County of Trimble, KY (Louisville Gas & Electric Company) 11/15/99 3.55 3,500,000 VMIG-1 A1
4,000,000 County of Trimble, KY (Louisville Gas & Electric Company) 02/16/00 3.70 4,000,000 VMIG-1 A1
1,000,000 Delta County, MI Educational Development Corporation
(Mead Paper) - Series B
LOC Union Bank of Switzerland 11/18/99 3.25 1,000,000 P1
5,000,000 Development Authority of Burke County, GA
(Ogelthorpe Power ) - Series 1998A
Insured by AMBAC Indemnity Corp. 11/09/99 3.35 5,000,000 MIG-1 A1+
1,854,000 Harris County, TX 02/09/00 3.50 1,854,000 P1 A1+
2,000,000 Illinois Health Facilities Authorities Revenue Bonds
(Rush-presbyterian St. Luke's)
LOC Northern Trust 11/09/99 3.30 2,000,000 VMIG-1 A1+
4,000,000 Jacksonville, FL PCRB (Florida Power & Light) - Series 1992 11/04/99 3.35 4,000,000 P1 A1+
3,000,000 King County, WA 11/16/99 3.40 3,000,000 P1 A1
9,000,000 King County, WA Director's Association
LOC Key Bank, N.A. 04/10/00 3.83 8,849,062 P1
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Tax Exempt Commercial Paper (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,160,000 Rochester, MN (Mayo Foundation) - Series 1998E 11/17/99 3.30% $ 2,160,000 A1+
2,800,000 Sarasota County, FL Public Hospital RB
(Sarasota Memorial Hospital)
LOC Sun Trust Bank 02/22/00 3.70 2,800,000 VMIG-1 A1+
5,000,000 Sunshine State Government Finance
Commission Revenue Bonds - Series 1986
Insured by AMBAC Indemnity Corp. 11/08/99 3.35 5,000,000 VMIG-1
5,000,000 State of Wisconsin 02/16/00 3.60 5,000,000 P1 A1+
4,700,000 University of Southern Indiana (Student Fees ) - Series G
LOC Bank One 02/01/00 3.70 4,700,000 MIG-1 A1+
------------ ------------
68,714,000 Total Tax Exempt Commercial Paper 68,563,062
------------ ------------
Total Investments (100.14%) (Cost $615,662,978+) $615,662,978
Liabilities in Excess of Cash and Other Assets (-0.14%) ( 855,192)
------------
Net Assets (100.00%) $614,807,786
============
Net asset value, offering and redemption price per share:
Class A shares, 323,188,061 Shares Outstanding (Note 3) $ 1.00
============
Class B shares, 291,787,621 Shares Outstanding (Note 3) $ 1.00
============
+ Aggregate cost for federal income tax purposes is identical.
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
- --------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
OCTOBER 31, 1999
================================================================================
FOOTNOTES:
(a) Unless the variable rate demand instruments are assigned their own ratings,
the ratings are those of the holding company of the bank whose letter of
credit guarantees the issue or the insurance company who insures the issue.
All letters of credit and insurance are irrevocable and direct pay covering
both principal and interest. Certain issuers have either a line of credit,
a liquidity facility, a standby purchase agreement or some other financing
mechanism to ensure the remarketing of the securities. This is not a
guarantee and does not serve to insure or collateralize the issue. P1 and
A1+ are the highest ratings assigned for tax exempt commercial paper.
(b) Securities that are not rated which the Fund's Board of Directors has
determined to be of comparable quality to the rated securities in which the
Fund invests.
(c) Securities payable on demand at par including accrued interest (usually
with seven days notice) and unconditionally secured as to principal and
interest by a bank letter of credit. The interest rates are adjustable and
are based on bank prime rates or other interest rate adjustment indices.
The rate shown is the rate in effect at the date of this statement.
(d) The maturity date indicated for the put bonds is the next put date.
<TABLE>
<CAPTION>
KEY:
<S> <C> <C> <C> <C> <C>
BAN = Bond Anticipation Note HRB = Hospital Revenue Bond
COPS = Certificate of Participations IDA = Industrial Development Authority
EDC = Economic Development Corporation IDFA = Industrial Development Finance Authority
EDFA = Economic Development Finance Authority IDRB = Industrial Development Revenue Bond
EDRB = Economic Development Revenue Bond LOC = Letter of Credit
FGIC = Financial Guaranty Insurance Company MHRB = Multifamily Housing Revenue Bond
FSA = Financial Security Assurance PCFA = Pollution Control Finance Authority
GO = General Obligation PCRB = Pollution Control Revenue Bond
GAN = Grant Anticipation Note RB = Revenue Bond
HEFA = Hospital & Education Finance Authority TAN = Tax Anticipation Note
HFA = Housing Finance Authority TAW = Tax Anticipation Warrant
HFFA = Health Facility Finance Authority TRAN = Tax and Revenue Anticipation Note
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
- --------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1999
================================================================================
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Income:
Interest................................................................................ $ 21,642,591
--------------
Expenses: (Note 2)
Investment management fee............................................................... 2,087,052
Administration fee...................................................................... 1,348,557
Distribution fee (Class A).............................................................. 942,547
Custodian expenses...................................................................... 101,971
Shareholder servicing and related shareholder expenses.................................. 576,475
Legal, compliance and filing fees....................................................... 133,861
Audit and accounting.................................................................... 197,157
Directors' fees......................................................................... 27,137
Other................................................................................... 46,616
--------------
Total expenses........................................................................ 5,461,373
Less: Expense paid indirectly (Note 2)................................................ ( 1,338)
--------------
Net expenses.......................................................................... 5,460,035
--------------
Net investment income...................................................................... 16,182,556
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments.................................................... -0-
--------------
Increase in net assets from operations..................................................... $ 16,182,556
==============
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
- --------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED OCTOBER 31, 1999 AND 1998
================================================================================
<TABLE>
<CAPTION>
1999 1998
--------------- ---------------
INCREASE (DECREASE) IN NET ASSETS
<S> <C> <C>
Operations:
Net investment income......................................... $ 16,182,556 $ 17,364,528
Net realized gain (loss) on investments....................... -0- 753
--------------- ---------------
Increase in net assets from operations........................ 16,182,556 17,365,281
Dividends to shareholders from net investment income
Class A....................................................... ( 9,004,964)* ( 10,851,302)*
Class B....................................................... ( 7,177,592)* ( 6,513,226)*
Capital share transactions (Note 3)
Class A....................................................... ( 40,209,783) ( 26,615,514)
Class B....................................................... 61,276,586 57,120,197
--------------- ---------------
Total increase (decrease)................................. 21,066,803 30,505,436
Net assets:
Beginning of year............................................. 593,740,983 563,235,547
--------------- ---------------
End of year................................................... $ 614,807,786 $ 593,740,983
=============== ===============
* Designated as exempt-interest dividends for federal income tax purposes.
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
- --------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. Summary of Accounting Policies.
Daily Tax Free Income Fund, Inc. is a no-load, diversified, open-end management
investment company registered under the Investment Company Act of 1940. The Fund
is a short term, tax exempt money market fund. The Fund has two classes of stock
authorized, Class A and Class B. The Class A shares are subject to a service fee
pursuant to the Distribution and Service Plan. The Class B shares are not
subject to a service fee. Additionally, the Fund may allocate among its classes
certain expenses to the extent allowable to specific classes, including transfer
agent fees, government registration fees, certain printing and postage costs,
and administrative and legal expenses. Class specific expenses of the Fund were
limited to distribution fees and transfer agent expenses. In all other respects,
the Class A and Class B shares represent the same interest in the income and
assets of the Fund. Distribution of Class B shares commenced November 23, 1992.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles for investment companies as follows:
a) Valuation of Securities -
Investments are valued at amortized cost. Under this valuation method, a
portfolio instrument is valued at cost and any discount or premium is
amortized on a constant basis to the maturity of the instrument. The
maturity of variable rate demand instruments is deemed to be the longer of
the period required before the Fund is entitled to receive payment of the
principal amount or the period remaining until the next interest rate
adjustment.
b) Federal Income Taxes -
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its tax exempt and taxable income to its shareholders. Therefore, no
provision for federal income tax is required.
c) Dividends and Distributions -
Dividends from investment income (excluding capital gains and losses, if
any, and amortization of market discount) are declared daily and paid
monthly. Distributions of net capital gains, if any, realized on sales of
investments are made after the close of the Fund's fiscal year, as declared
by the Fund's Board of Directors.
d) Use of Estimates -
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that effect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in
net assets from operations during the reporting period. Actual results
could differ from those estimates.
e) General -
Securities transactions are recorded on a trade date basis. Interest income
is accrued as earned. Realized gains and losses from securities
transactions are recorded on the identified cost basis.
2. Investment Management Fees and Other Transactions with Affiliates.
Under the Investment Management Contract, the Fund pays an investment management
fee to Reich & Tang Asset Management L.P. (Manager) at the annual rate of .325%
of the Fund's average daily net assets up to $750 million plus .30% of such
assets in excess of $750 million.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
2. Investment Management Fees and Other Transactions with Affiliates
(Continued).
Pursuant to an Administrative Services Agreement, the Fund pays to the Manager
an annual fee of .21% of the Fund's average daily net assets up to $1.25
billion, plus .20% of such assets in excess of $1.25 billion but not in excess
of $1.5 billion, plus .19% of such assets in excess of $1.5 billion.
Pursuant to a Distribution and Service Plan adopted under Securities and
Exchange Commission Rule 12b-1, the Fund and Reich & Tang Distributors, Inc.
(the Distributor) entered into a Distribution Agreement and a Shareholder
Servicing Agreement, only with respect to the Class A shares of the Fund. For
its services under the Shareholder Servicing Agreement, the Distributor receives
from the Fund with respect only to the Class A shares, a fee equal to .25% of
the Fund's average daily net assets.
Fees are paid to Directors who are unaffiliated with the Manager on the basis of
$6,000 per annum plus $750 per meeting attended.
Included in the Statement of Operations under the caption "Shareholder servicing
and related shareholder expenses" are fees of $321,992 paid to Reich & Tang
Services, Inc., an affiliate of the Manager as servicing agent for the Fund.
Included under the same caption are expense offsets of $1,338.
3. Capital Stock.
At October 31, 1999, 20,000,000,000 shares of $.001 par value stock were
authorized and capital paid in amounted to $614,808,569. Transactions in capital
stock, all at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
Year Year
Ended Ended
October 31, 1999 October 31, 1998
Class A ---------------- ----------------
<S> <C> <C>
Sold...................................... 513,422,609 718,249,277
Issued on reinvestment of dividends....... 7,876,240 9,599,093
Redeemed.................................. ( 561,508,632) ( 754,463,884)
------------- --------------
Net increase (decrease)................... ( 40,209,783) ( 26,615,514)
============= ==============
<CAPTION>
Class B
<S> <C> <C>
Sold...................................... 576,831,470 434,799,484
Issued on reinvestment of dividends....... 6,991,247 6,175,752
Redeemed.................................. ( 522,546,131) ( 383,855,039)
------------- --------------
Net increase (decrease)................... 61,276,586 ( 57,120,197)
============= ==============
</TABLE>
4. Sales of Securities.
Accumulated undistributed realized losses at October 31, 1999 amounted to $783.
Such losses may be carried forward to offset capital gains through October 31,
2004.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
5. Financial Highlights.
<TABLE>
<CAPTION>
Year Ended October 31,
---------------------------------------------------------------
Class A
------- 1999 1998 1997 1996 1995
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income........................ 0.024 0.029 0.031 0.031 0.034
Less distributions:
Dividends from net investment income......... ( 0.024) ( 0.029) ( 0.031) ( 0.031) ( 0.034)
------- ------- ------- ------- -------
Net asset value, end of year................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return................................... 2.42% 2.92% 3.08% 3.09% 3.46%
Ratios/Supplemental Data
Net assets, end of year (000).................. $ 323,100 $ 363,295 $ 389,897 $ 448,647 $ 458,942
Ratios to average net assets:
Expenses (Includes expenses paid indirectly). 0.98% 0.94% 0.91% 0.90% 0.89%
Net investment income........................ 2.39% 2.89% 3.03% 3.05% 3.41%
Expenses paid indirectly..................... 0.00% 0.00% 0.00% 0.01% 0.01%
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
5. Financial Highlights. (Continued)
<TABLE>
<CAPTION>
Year Ended October 31,
---------------------------------------------------------------
Class B
------- 1999 1998 1997 1996 1995
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income........................ 0.027 0.032 0.033 0.033 0.037
Less distributions:
Dividends from net investment income......... ( 0.027) ( 0.032) ( 0.033) ( 0.033) ( 0.037)
------- ------- ------- ------- -------
Net asset value, end of year................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return................................... 2.74% 3.21% 3.34% 3.35% 3.71%
Ratios/Supplemental Data
Net assets, end of year (000).................. $ 291,708 $ 230,446 $ 173,339 $ 160,986 $ 166,700
Ratios to average net assets:
Expenses (Includes expenses paid indirectly). 0.67% 0.67% 0.66% 0.66% 0.64%
Net investment income........................ 2.71% 3.15% 3.29% 3.30% 3.66%
Expenses paid indirectly..................... 0.00% 0.00% 0.00% 0.01% 0.01%
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
REPORT OF INDEPENDENT ACCOUNTANTS
================================================================================
To The Board of Directors and Shareholders
Daily Tax Free Income Fund, Inc.
In our opinion, the accompanying statement of net assets, including the
statement of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Daily Tax Free Income Fund,
Inc. (the "Fund") at October 31, 1999, the results of its operations, the
changes in its net assets and the financial highlights for the year then ended,
in conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Fund's management; our responsibility
is to express an opinion on these financial statements based on our audit. We
conducted our audit of these financial statements in accordance with generally
accepted auditing standards which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audit, which included confirmation of securities at October 31, 1999 by
correspondence with the custodian and brokers, provides a reasonable basis for
the opinion expressed above. The financial statements for the year ended October
31, 1998, including the financial highlights for each of the four years in the
period then ended were audited by other independent accountants whose report
dated December 4, 1998 expressed an unqualified opinion on those financial
statements.
PricewaterhouseCoopers LLP
New York, NY
December 3, 1999
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
CHANGE IN INDEPENDENT ACCOUNTANTS
================================================================================
On August 13, 1999, McGladrey & Pullen, LLP (McGladrey) resigned as independent
auditors of the Fund pursuant to an agreement by PricewaterhouseCoopers LLP
(PwC) to acquire McGladrey's investment company practice. The McGladrey partners
and professionals serving the Fund at the time of the acquisition have joined
PwC.
The report of McGladrey on the financial statements of the Fund for the past
fiscal year contained no adverse opinion or a disclaimer of opinion, and were
not qualified or modified as to uncertainty, audit scope or accounting
principles.
In connection with its audit for the most recent fiscal year and through August
13, 1999, there were no disagreements with McGladrey on any matter of accounting
principle or practices, financial statement disclosure, or auditing scope or
procedure, which disagreements, if not resolved to the satisfaction of McGladrey
would have caused it to make reference to the subject matter of disagreement in
connection with its report.
Effective August 13, 1999, the Fund, with the approval of its Board of Directors
and its Audit Committee, engaged PwC as its independent auditors.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
- ------------------------------------------------------
This report is submitted for the general information
of the shareholders of the Fund. It is not
authorized for distribution to prospective investors
in the Fund unless preceded or accompanied by an
effective prospectus, which includes information
regarding the Fund's objectives and policies,
experience of its management, marketability of
shares, and other information.
- ------------------------------------------------------
Daily Tax Free Income Fund, Inc.
600 Fifth Avenue
New York, New York 10020
Manager
Reich & Tang Asset Management L.P.
600 Fifth Avenue
New York, New York 10020
Custodian
Investors Fiduciary Trust Company
801 Pennsylvania
Kansas City, Missouri 64105
Transfer Agent &
Dividend Disbursing Agent
Reich & Tang Services, Inc.
600 Fifth Avenue
New York, NY 10020
DTF1099A
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
DAILY
TAX FREE
INCOME
FUND, INC.
Annual Report
October 31, 1999
- --------------------------------------------------------------------------------
<PAGE>
