TUXIS CORP
N-30D, 2000-03-08
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<PAGE>



                                                    AMERICAN STOCK
TUXIS CORPORATION                                   EXCHANGE SYMBOL: TUX
- ------------------------------------------------------------------------
11 HANOVER SQUARE, NEW YORK, NY 10005
WWW.TUXIS.COM

                                                               January 26, 2000
Fellow Shareholders:

     We are pleased to submit this Report for the year ended December 31, 1999,
and to welcome our new shareholders who have made their investment since our
last Report.

                       INVESTMENT OBJECTIVE AND POLICIES

     The Fund's investment objective is to provide an attractive level of long
term total return on an after tax basis, consisting of a combination of current
income and capital appreciation. In seeking to achieve this objective, the
Fund's investment policy is normally to invest at least 50% of its assets in
municipal securities and the balance primarily in securities of selected growth
companies and tax advantaged investments. The investment objective and policy
are non-fundamental and may be changed by the Board of Directors without
shareholder approval.

                               REVIEW AND OUTLOOK

     Interest rates rose during the second half of 1999, causing prices of most
tax-exempt securities to decline. Yields on 30 year AAA rated general municipal
obligations rose from 5.24% at the end of June to 5.86% at the end of December.
For the year, the Lehman Brothers Municipal Bond Index fell with a negative
total return of -2.06%, and the average of closed end national long term
municipal bond funds declined, providing a negative total return of -6.18%,
according to Morningstar. In contrast, we are pleased to report that the Fund's
total return on a net asset value basis for the year was a positive +4.01%, in
large part attributable to the Fund's equity investments.

     Several factors explain the underperformance by municipal bonds in 1999.
Even though new supply in 1999 was less than in recent years, demand was
reduced, as investors probably increased allocations to other asset classes,
such as equities, and reduced their exposure to debt in general in anticipation
of higher interest rates to come. Thirty year AAA general municipal obligations
began 1999 yielding as much as 95% of 30 year Treasury bonds, as Government
securities prices rose during the crisis in several emerging countries and
financial markets. Although by August tax exempt debt yielded as little as 87%
of Treasury bonds, reallocation by institutions that had participated in the
rebound of municipal bond prices drove the percentage back to 94% by early
November.



<PAGE>

     The Fed Funds rate also rose decisively during the second half of the year.
The Federal Reserve Open Market Committee raised this benchmark level by 0.25%
at both its August and November meetings, bringing the total increase for 1999
to 0.75%, with Fed Funds ending the century at 5.50%. While the Fed left the
rate unchanged at its most recent meeting in December, the language of its
announcement suggests that concerns over the economy's growth could lead to
further rate increases: "Based on the available evidence . . . the Committee
remains concerned with the possibility that over time increases in demand will
continue to exceed the growth in potential supply, even after . . . the
remarkable rise in productivity growth." Our own opinions regarding the future
course of interest rates are discussed below.

     During the second half of the year, the domestic economy performed
exceedingly well with real GDP growing at an annualized rate of 5.7% in the
third quarter and 5.8% in the fourth quarter. The unemployment rate declined to
as low as 4.1% and new jobs were created at an average rate of 274,000 per month
in the fourth quarter, the fastest pace seen last year. We would not be
surprised to see the unemployment rate decline to below 4% in 2000. Yet, average
wage growth, which is thought to be a prime catalyst for an inflationary spiral,
remains contained at a moderate 3.7%. With the level of employment high,
personal income grew at close to 5.9% last year. However, personal consumption
rose by around 6.8% as consumer credit grew by over 6.5% over the year and the
savings rate declined.

     Inflation seems to have been kept in check during 1999. Producer and
consumer prices rose 3.1% and 2.6% year-over-year in November, while the "core"
producer and consumer prices, which excludes volatile food and energy prices,
rose just 1.8% and 2.1%. We note, however, that commodity prices rose sharply in
the third quarter, and that manufacturers report higher prices in the monthly
purchasing managers survey. Import prices, which were important in reducing
inflationary pressures last year, have also risen sharply. Further, as Asian
economies recover and the recession in Latin America subsides, the potential for
a synchronized global economic expansion could create inflationary demand. Even
large increases in home prices have contributed to the wealth effect, increasing
inflationary consumer demand. We don't doubt that the ingredients for inflation
are in place, and expect that interest rates will continue to rise as a result.

     During this period of rising interest rates, the Fund has adopted a
strategy of decreasing the average maturity and duration of the municipal
securities it holds in its portfolio to reduce the impact of declining bond
prices on total return. For the equity portion of the Fund's portfolio, the
investment strategy in 1999 reflected our core belief that the biggest driver of
stock market gains would be the strength of the U.S. economy and, globally, the
technology and telecommunications sectors. Accordingly, the Fund focused on
leading companies in these sectors. The Fund also benefitted by its investments
in growth-oriented internet and asset management businesses. To enhance its
returns, the Fund employed leverage. On November 22, 1999, the Board of
Directors of the Fund approved the elimination of the Fund's non-fundamental
investment restriction to purchase or sell options, futures contracts, including
those related to indices, and options on futures contracts and indices. Looking

                                       2



<PAGE>

ahead, while post-Y2K increases in spending will probably jump-start growth in
the business technology area, we expect advertising, retailing and even some
kinds of basic manufacturing will benefit from the strength in the U.S. and many
foreign economies. As with last year, the Fund expects to focus on
globally-recognized industry leaders.

                   10% DIVIDEND DISTRIBUTION POLICY CONTINUED

The managed 10% dividend distribution policy adopted by the Fund's Board of
Directors in 1998 continues to be well received. The objective is to provide
shareholders with a relatively stable cash flow and reduce or eliminate any
market price discount to the Fund's net asset value per share. Payments are made
primarily from ordinary income and any capital gains, with the balance
representing return of capital. For the twelve months ended December 31, 1999,
actual distributions were 10.50% of average net assets with approximately 24.91%
derived from net investment income and the balance from return of capital. We
believe shares of the Fund are a sound value and an appealing investment for
portfolios seeking an attractive level of long term total return on an after tax
basis, consisting of a combination of current income and capital appreciation.

                          REINVESTMENT PLAN ATTRACTIVE

     The Fund's current net asset value per share is $14.89. With a recent
closing on the American Stock Exchange of $11.91 per share, we believe this
represents an important opportunity to purchase additional shares at an
attractive discount from their underlying value. The Fund's Dividend
Reinvestment Plan is a very effective way to add to your holding because
quarterly dividend distributions are reinvested without charge at the lower of
net asset value per share or market price, which can contribute importantly to
growing your investment over time. Please call 1-888-847-4200, and an Investor
Service Representative will be happy to assist you.

     We appreciate your support and look forward to continuing to serve your
investment needs.


                               Sincerely,

    /s/ Thomas B. Winmill                    /s/ Steven A. Landis
    Thomas B. Winmill                        Steven A. Landis
    President                                Senior Vice President
                                             Portfolio Manager


                                       3




<PAGE>

                               TUXIS CORPORATION
             SCHEDULE OF PORTFOLIO INVESTMENTS - DECEMBER 31, 1999

<TABLE>
<CAPTION>

  PRINCIPLE                                                                    S & P        MARKET
    AMOUNT                                                                    RATING        VALUE
   --------                                                                   ------        ------
<S>        <C>                                                                <C>      <C>
           MUNICIPAL BONDS (61.76%)
           ALABAMA (1.78%)
 $250,000  Alabama Special Care Facilities Revenue Bonds, 5.00%,
           due 11/1/25.....................................................    Aa2*    $    214,587
                                                                                       ------------
           ARIZONA (4.43%)
  500,000  Phoenix General Obligation Bonds, Series A,
           6.25%, due 7/1/16...............................................    AA+          533,310
                                                                                       ------------
           GEORGIA (4.02%)
  400,000  Georgia State Municipal Electric Authority Power Revenue
           Bonds, 8.25%, due 1/1/11........................................    A            483,612
                                                                                       ------------
           HAWAII (7.88%)
  500,000  Hawaii County General Obligation Bonds, Series A, 5.60%,
           due 5/1/13......................................................    AAA          504,405
  400,000  Honolulu City & County General Obligation Bonds, Series A,
           8.75%, due 1/1/03...............................................    AA           444,272
                                                                                       ------------
                                                                                            948,677
                                                                                       ------------
           ILLINOIS (8.80%)
  500,000  Chicago, Illinois General Obligation Bonds, Series A,
           5.125%, due 1/1/25..............................................    AAA          429,660
  250,000  Illinois Health Facilities Revenue Bonds, Series A, 5.00%,
           due 7/1/24......................................................    AAA          216,023
  125,000  Illinois Health Facilities Revenue Bonds, 5.25%, due 8/1/17.....    AAA          113,318
  300,000  Illinois Health Facilities Revenue Bonds, 5.65%, due 7/1/28.....    AAA          300,000
                                                                                       ------------
                                                                                          1,059,001
                                                                                       ------------
           LOUISIANA (2.77%)
  325,000  Louisiana Public Facilities Authority Revenue Bonds, Series A,
           6.50%, due 3/1/02...............................................    Aaa*         334,038
                                                                                       ------------
           MASSACHUSETTS (6.55%)
  300,000  Cambridge, Massachusetts General Obligation Bonds, 4.50%,
           due 2/1/17......................................................    AAA          251,313
  500,000  Massachusetts State Municipal Wholesale Electric Company Power
           Supply Systems Revenue Bonds, 5.00%, due 7/1/17.................    AAA          444,545
  110,000  Massachusetts State Water Resource Revenue Bonds,
           5.00%, due 12/1/25..............................................    AAA           92,397
                                                                                       ------------
                                                                                            788,255
                                                                                       ------------
           MISSISSIPPI (4.10%)
  500,000  Mississippi State General Obligation Bonds, 5.10%,
           due 11/15/11....................................................    AA           492,925
                                                                                       ------------
</TABLE>

                 See accompanying notes to financial statements.

                                       4



<PAGE>

<TABLE>
<CAPTION>

 PRINCIPLE                                                                  S & P         MARKET
   AMOUNT                                                                   RATING        VALUE
 --------                                                                   ------        ------
<S>        <C>                                                              <C>           <C>
           NEW JERSEY (2.93%)
 $155,000  Hoboken, New Jersey General Obligation Bonds, 4.75%,
           due 8/1/11......................................................    AAA         $145,827
  200,000  Southern Regional High School District General Obligation Bonds,
           5.50%, due 9/1/ 07..............................................    AAA          206,418
                                                                                       ------------
                                                                                            352,245
                                                                                       ------------
           NEW YORK (5.50%)
  250,000  New York General Obligation Bonds, Series H, 6.00%, due 8/1/13..    A-           254,818
   40,000  City of New York General Obligation Bonds, Series D,
           7.50%, due 2/1/16...............................................    A-            42,792
  365,000  New York State Housing Finance Agency Revenue Bonds, Series A,
           5.65%, due 11/1/28..............................................    AAA          365,000
                                                                                       ------------
                                                                                            662,610
                                                                                       ------------
           OHIO (4.98%)
  600,000  Lorain County Hospital Revenue Bonds, 5.65%, due 12/1/27........    AA-          600,000
                                                                                       ------------
           SOUTH CAROLINA (1.66%)
  250,000  Piedmont Municipal Power Agency Revenue Bonds, Series A,
           4.75%, due 1/1/25...............................................    AAA          199,285
                                                                                       ------------
           TEXAS (1.66%)
  200,000  Southwest Higher Education Authority Revenue Bonds, 5.65%,
           due 10/1/29.....................................................    AAA          200,000
                                                                                       ------------
           WISCONSIN (4.70%)
  500,000  Wisconsin Clean Water Revenue Bonds, Series 1,
           6.875%, due 6/1/11..............................................    AA+          565,635
                                                                                       ------------
             Total Municipal Bonds (cost: $7,560,675)......................               7,434,180
                                                                                       ------------
</TABLE>

<TABLE>
<CAPTION>

  SHARES
  --------
<S>        <C>                                                                         <C>
           COMMON STOCKS (35.42%)
           COMMUNICATIONS EQUIPMENT (9.52%)
    5,200  Motorola, Inc...................................................                 765,700
    2,000  Nokia Corp. ADR.................................................                 380,000
                                                                                       ------------
                                                                                          1,145,700
                                                                                       ------------
           COMPUTER COMMUNICATIONS EQUIPMENT (5.37%)
    3,100  Cisco Systems, Inc. (1).........................................                 332,088
    4,200  Lucent Technologies Inc.........................................                 314.213
                                                                                       ------------
                                                                                            646,301
                                                                                       ------------
           ELECTRONIC COMPUTERS (2.45%)
    3,800  Sun Microsystems, Inc. (1)......................................                 294,262
                                                                                       ------------
</TABLE>


                See accompanying notes to financial statements.
                                       5




<PAGE>

<TABLE>
<CAPTION>
                                                                                        MARKET
  SHARES                                                                                VALUE
 --------                                                                              -----------
<S>        <C>                                                                         <C>
           RAILROAD, LINE-HAUL OPERATING (3.84%)
    6,200  Kansas City Southern Industries, Inc............................            $  462,675
                                                                                       ----------
           SEMICONDUCTORS & RELATED DEVICES (2.53%)
    3,700  Intel Corp......................................................               304,556
                                                                                       ----------
           SERVICES-DIRECT MAIL ADVERTISING SERVICES (4.60%)
    2,000  CMGI Inc. (1)...................................................               553,750
                                                                                       ----------
           TELEPHONE COMMUNICATION (2.67%)
    2,500  China Telecom (Hong Kong) Limited ADR (1).......................              321,406
                                                                                       ----------
           WHOLESALE-COMPUTER & PERIPHERAL EQUIPMENT & SOFTWARE (4.44%)
    3,300  Safeguard Scientifics, Inc. (1).................................               534,806
                                                                                       ----------
                 Total Common Stocks (cost: $3,019,738)....................             4,263,456
                                                                                       ----------
</TABLE>

<TABLE>
<CAPTION>
        PRINCIPAL
          AMOUNT
         --------
           SHORT TERM  INVESTMENTS (2.82%)
<S>        <C>                                                                         <C>
 $338,877  State Street Bank & Trust Repurchase Agreement, 2.50%,
           December 31, 1999, due January 3, 2000 (collateralized by
           $355,000 U.S. Treasury Bonds, 6.375%, 8/15/27, market
           value: $350,119)(proceeds at maturity: $338,948)................               338,877
                                                                                       ----------
                 Total Short Term Investments (cost: $338,877).............               338,877
                                                                                       ----------
                        TOTAL INVESTMENTS (COST: $10,919,290) (100.0%).....           $12,036,513
                                                                                      ===========
</TABLE>

*       Moody's rating.
(1)     Indicates non-income producing security.

                See accompanying notes to financial statements.


                                       6



<PAGE>



STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999

<TABLE>
<CAPTION>
ASSETS:
<S>                                                                 <C>
        Investments at market value
                (cost: $10,919,290) (note 1) ................       $12,036,513
        Receivables:
                Interest ....................................           136,271
                Dividends ...................................             2,612
        Other assets ........................................             2,981
                                                                    -----------
                        Total assets ........................        12,178,377
                                                                    -----------
LIABILITIES:
        Accrued expenses ....................................            30,866
        Accrued management fees .............................             5,992
                                                                    -----------
                Total liabilities ...........................            36,858
                                                                    -----------
NET ASSETS: (applicable to 799,151
        outstanding shares: 1,000,000,000
        shares of $.01 par value authorized) ................       $12,141,519
                                                                    ===========
NET ASSET VALUE PER SHARE
        ($12,141,519 / 799,151 shares
        outstanding) ........................................            $15.19
                                                                         ======
At December 31, 1999, net assets consisted of:
        Paid-in capital .....................................       $11,211,072
        Net unrealized appreciation
                on investments ..............................         1,117,223
        Accumulated net realized loss
                on investments ..............................          (186,776)
                                                                    -----------
                                                                    $12,141,519
                                                                    ===========
</TABLE>

STATEMENT OF OPERATIONS
Year Ended December 31, 1999

<TABLE>
INVESTMENT INCOME:
<S>                                                                 <C>
        Interest ............................................          $458,983
        Dividends (net of foreign taxes of $810) ............            57,299
                                                                       --------
                Total investment income .....................           516,282
                                                                       --------

EXPENSES:
        Investment management (note 3) ......................            70,569
        Directors ...........................................            31,516
        Transfer agent ......................................            29,336
        Custodian ...........................................            25,732
        Professional (note 3) ...............................            23,650
        Interest (note 5) ...................................            13,935
        Registration (note 3) ...............................            10,494
        Printing ............................................             5,962
        Other ...............................................             3,428
                                                                        -------
                Total expenses ..............................           214,622
                Fee reductions (note 4) .....................            (5,952)
                                                                        -------
                Net expenses ................................           208,670
                                                                        -------
                        Net investment income ...............           307,612
                                                                        -------
REALIZED AND UNREALIZED GAIN (LOSS)
        ON INVESTMENTS:
        Net realized gain on investments ....................             1,776
                                                                        -------
        Unrealized appreciation of investments
                during the period ...........................            14,479
                                                                        -------
                Net realized and unrealized gain on
                        investments .........................            16,255
                                                                        -------
                Net increase in net assets resulting
                        from operations .....................           $323,867
                                                                        ========

                See accompanying notes to financial statements.

                                       7




<PAGE>

STATEMENTS OF CHANGES IN NET ASSETS
For the years ended December 31, 1999 and 1998

</TABLE>
<TABLE>
<CAPTION>
                                                                                                         1999            1998
                                                                                                      ----------      ----------
<S>                                                                                                   <C>             <C>
OPERATIONS:
        Net investment income ....................................................................    $   307,612     $   418,043
        Net realized gain on investments .........................................................          1,776         177,381
        Unrealized appreciation of investments during the period .................................         14,479         268,368
                                                                                                      -----------     -----------
                Net increase in net assets resulting from operations .............................        323,867         863,792

DISTRIBUTIONS TO SHAREHOLDERS:
        Distributions from net investment income ($0.40 and $0.57 per share, respectively) .......       (307,612)       (418,043)
        Distributions in excess of net investment income ($0.23 and $0.55 per share, respectively)       (181,065)       (403,775)
        Distributions from paid-in capital ($0.97 and $0.22 per share, respectively) .............       (746,452)       (165,268)

CAPITAL SHARE TRANSACTIONS:
        Increase in net assets resulting from reinvestment of distributions
                (42,713 and 31,230 shares, respectively) (note 7) ................................        540,375         496,279
                                                                                                      -----------     -----------
        Total change in net assets ...............................................................       (370,887)        372,985

NET ASSETS:
        Beginning of year ........................................................................     12,512,406      12,139,421
                                                                                                      -----------     -----------
        End of year ..............................................................................    $12,141,519     $12,512,406
                                                                                                      ===========     ===========
</TABLE>



                 See accompanying notes to financial statements


                                       8




<PAGE>

                          NOTES TO FINANCIAL STATEMENTS

(1) Tuxis Corporation (the "Fund"), a Maryland corporation, is a
non-diversified, closed-end management investment company registered under the
Investment Company Act of 1940, as amended. The Fund's shares are listed on the
American Stock Exchange, Inc. The investment objective of the Fund, which is
non-fundamental and may be changed by the Board of Directors without shareholder
approval, is to provide an attractive level of long term total return on an
after tax basis, consisting of current income and capital appreciation. The
following is a summary of significant accounting policies consistently followed
by the Fund in the preparation of its financial statements. With respect to
security valuation, municipal securities which have remaining maturities of more
than 60 days and for which market quotations are readily available are valued at
the mean between the most recently quoted bid and asked prices. Money market
securities which have remaining maturities of more than 60 days and for which
market quotations are readily available are valued at the most recent bid price
or yield equivalent. Debt obligations with remaining maturities of 60 days or
less are valued at cost adjusted for amortization of premiums and accretion of
discounts. Securities for which quotations are not readily available or reliable
and other assets may be valued as determined in good faith by or under the
direction of the Board of Directors. Investment transactions are accounted for
on the trade date (date the order to buy or sell is executed). Interest income
is recorded on the accrual basis. Premiums and discounts are amortized in
accordance with income tax regulations. In preparing financial statements in
conformity with generally accepted accounting principles, management makes
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements, as well as the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.


(2) The Fund intends to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute
substantially all of its taxable investment income and net capital gains, if
any, after utilization of any capital loss carryforward, to its shareholders and
therefore no Federal income tax provision is required. At December 31, 1999, the
Fund had an unused capital loss carryforward of approximately $186,800 which
expires in 2002. Based on Federal income tax cost of $10,919,290, gross
unrealized appreciation and gross unrealized depreciation was $1,364,306 and
$247,083, respectively at December 31, 1999.


(3) The Fund retains CEF Advisers, Inc. (formerly, Bull & Bear Advisers, Inc.)
as its Investment Manager. Under the terms of the Investment Management
Agreement, the Investment Manager receives a management fee from its assets,
such fee to be computed weekly and paid monthly in arrears at the annual rate of
0.60% of the first $500 million and 0.50% over $500 million of the Fund's net
assets. The fee is calculated by determining net assets on each Friday and
applying the applicable rate to such amount for the number of days in the week.
Certain officers and directors of the Fund are officers and directors of the
Investment Manager. The Fund reimbursed the Investment Manager $5,701 for
providing certain administrative and accounting services at cost for the year
ended December 31, 1999. At the Annual Meeting of Shareholders of the Fund held
on December 21, 1999, shareholders were asked to elect two directors and to
ratify the selection of Tait, Weller & Baker as the Fund's independent auditors.
Shareholders elected David R. Stack as a director of the Fund with 498,899
shares voted in favor and 18,069 shares voted to withhold authority, and Robert
D. Anderson as a director of the Fund with 498,899 shares voted in favor and
18,069 shares voted to withhold authority. The names of each other director
whose term of office continued after the meeting are Russell E. Burke III,
Thomas B. Winmill, and Bassett S. Winmill. Shareholders ratified the selection
of the independent auditors with 504,542 shares voted in favor, 6,038 shares
voted against, and 6,387 shares voted to abstain. Pursuant to Rule 14a-5(e)(2)
of the Securities Exchange Act of 1934, as amended (the "1934 Act"), September
18, 2000 is the date after which notice of a shareholder



                                       9



<PAGE>

proposal submitted outside the processes of Rule 14a-8 under the 1934 Act is
considered untimely, as established by the Fund's By-laws, as amended December
8, 1999.

(4) Purchases and proceeds of sales of securities other than short term notes
aggregated $10,952,275 and $13,540,820, respectively, for the year ended
December 31, 1999. The Fund has entered into an arrangement with its custodian
whereby interest earned on uninvested cash balances was used to offset a portion
of the Fund's expenses. During the year ended December 31, 1999, the Fund's
custodian fees were reduced by $5,952 under such arrangements.



(5) The Fund has a committed bank line of credit. At December 31, 1999, there
was no outstanding balance and the interest rate was equal to the Federal
Reserve Funds Rate plus 1.00 percentage point. For the year ended December 31,
1999, the weighted average interest rate was 6.17% based on the balances
outstanding during the year and the weighted average amount outstanding was
$172,472.

(6) The Fund loaned securities to certain brokers who paid the Fund lenders'
fees. These fees, less costs to administer the program, are included in interest
income on the Statement of Operations for the year ended December 31, 1999. The
loans are collaterized at all times by cash or U.S. Government obligations in an
amount at least equal to the market value of the securities loaned, plus accrued
interest, determined on a daily basis and adjusted accordingly. Although the
Fund may regain record ownership of loaned securities to exercise certain
beneficial rights, the Fund may bear the risk of delay in recovery of, or even
loss of rights in, the securities loaned should the borrower fail financially.

(7) The Fund has adopted a Dividend Reinvestment Plan (the "Plan"). Under the
Plan, each dividend and capital gain distribution, if any, declared by the Fund
on outstanding shares will, unless elected otherwise by each shareholder by
notifying the Fund in writing at any time prior to the record date for a
particular dividend or distribution, be paid on the payment date fixed by the
Board of Directors or a committee thereof in additional shares in accordance
with the following: whenever the Market Price (as defined below) per share is
equal to or exceeds the net asset value per share at the time shares are valued
for the purpose of determining the number of shares equivalent to the cash
dividend or capital gain distribution (the "Valuation Date"), participants will
be issued additional shares equal to the amount of such dividend divided by the
Fund's net asset value per share. Whenever the Market Price per share is less
than such net asset value on the Valuation Date, participants will be issued
additional shares equal to the amount of such dividend divided by the Market
Price. The Valuation Date is the dividend or distribution payment date or, if
that date is not an American Stock Exchange trading day, the next trading day.
For all purposes of the Plan: (a) the Market Price of the shares on a particular
date shall be the average closing market price on the five trading days the
shares traded ex-dividend on the Exchange prior to such date or, if no sale
occurred on the Exchange prior to such date, then the mean between the closing
bid and asked quotations for the shares on the Exchange on such date, and (b)
net asset value per share on a particular date shall be as determined by or on
behalf of the Fund.

(8) The Fund participates in repurchase agreements with the Fund's custodian.
The custodian takes possession of the collateral pledged for investments in
repurchase agreements. The underlying collateral is valued daily on a
mark-to-market basis to ensure that the value, including accrued interest, is at
least equal to the repurchase price. In the event of default of the obligation
to repurchase, the Fund has the right to liquidate the collateral and apply the
proceeds in satisfaction of the obligation. Under certain circumstances, in the
event of default or bankruptcy by the other party to the agreement, realization
and/or retention of the collateral may be subject to legal proceedings.


                                       10



<PAGE>

                              FINANCIAL HIGHLIGHTS


<TABLE>
<CAPTION>
                                                                           YEARS ENDED DECEMBER 31,
                                                                 ------------------------------------------------------------
                                                                   1999         1998         1997         1996         1995
                                                                 --------     --------     --------     --------     --------
<S>                                                              <C>      <C>          <C>             <C>         <C>
PER SHARE DATA
Net asset value at beginning of period .......................   $ 16.54  $     16.74  $     16.41     $  17.04    $   15.25
                                                                 -------       -------     -------     --------    ---------
Income from investment operations:
        Net investment income ................................       .40          .57          .58          .69          .70
        Net realized and unrealized gain (loss) on investments      (.15)         .57          .59         (.62)        1.78
                                                                 -------       -------     -------     --------    ---------
                Total from investment operations .............      (.25)        1.14         1.17          .07         2.48
                                                                 -------       -------     -------     --------    ---------
Less distributions:
        Distributions from net investment income .............      (.40)         (.57)       (.58)        (.70)        (.69)
        Distributions in excess of net realized gains ........      (.23)         (.55)       (.26)          --           --
        Distributions from paid in capital ...................      (.97)         (.22)         --           --           --
                                                                 -------       -------     -------     --------    ---------
                Total distributions ..........................     (1.60)        (1.34)       (.84)        (.70)        (.69)
                                                                 --------      -------     -------     --------     --------
Net asset value at end of period .............................   $ 15.19       $ 16.54     $ 16.74     $  16.41     $  17.04
                                                                 ========      =======     =======     ========     ========
Per share market value at end of period ......................   $ 11.50       $ 16.38     $ 14.88     $  14.38
                                                                 ========      =======     =======      =======
TOTAL RETURN ON NET ASSET VALUE BASIS ........................      4.01%         7.40%       8.17%         .61%       16.58%
                                                                 ========      =======     =======      =======      =======
TOTAL RETURN ON MARKET VALUE BASIS (a) .......................    (20.46)%       19.66%      (9.73)      (11.87)%
                                                                 ========      =======     =======      =======
RATIOS/SUPPLEMENTAL DATA
Net assets at end of period (000's omitted) ..................   $12,142       $12,512     $12,139      $11,491      $16,220
                                                                 ========      =======     =======      =======      =======
Ratio of expenses to average net assets (b)(c) ...............      1.82%         1.89%       1.70%        1.68%        1.78%
                                                                 ========      =======     =======      =======      =======
Ratio of net investment income to average net assets .........      2.61%         3.40%       3.53%        4.14%        4.31%
                                                                 ========      =======     =======      =======      =======
Portfolio turnover rate ......................................       .98%          .26%        .43%         .78%         172%
                                                                 ========      =======     =======      =======      =======
</TABLE>

  * Per share net investment income and net realized and unrealized gain
    (loss) on investments have been computed using the average number of shares
    outstanding. These computations had no effect on net asset value per share.

(a) Effective November 8, 1996, the Fund converted from on open-end management
    investment company to a closed-end management investment company. The Fund
    has calculated total return on market value basis based on purchases and
    sales of shares of the Fund at current market values and reinvestment of
    dividends and distributions at the lower of the per share net asset value on
    the payment date or the average of the closing market prices for the five
    days preceding the payment date.

(b) Ratio prior to reimbursement by the Investment Manager was 1.94% and 1.95%
    for the years ended December 31, 1996 and 1995, respectively.

(c) Ratio after the reduction of custodian fees under a custodian agreement was
    1.77%, 1.85%, 1.68% and 1.62% for the years ended December 31, 1999, 1998,
    1997 and 1995, respectively. There were no custodian fee credits for 1996.




                                       11



<PAGE>

REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

The Board of Directors and Shareholders of
        Tuxis Corporation:

     We have audited the accompanying statement of assets and liabilities of
Tuxis Corporation, including the schedule of portfolio investments as of
December 31, 1999, and the related statement of operations for the year then
ended, the statements of changes in 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. These financial statements and financial highlights are
the responsibility of the Fund'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, 1999, by correspondence with the custodian. 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
Tuxis Corporation as of December 31, 1999, the results of its operations for the
year then ended, 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.

                                                   TAIT, WELLER & BAKER
                                                   Certified Public Accountants

Philadelphia, Pennsylvania
January 14, 2000



                                       12










<PAGE>

TUXIS                                      TUXIS
CORPORATION                                CORPORATION
- -----------                                -----------
11 HANOVER SQUARE                          AMERICAN STOCK
NEW YORK, NY 10005                         EXCHANGE SYMBOL:

1-888-847-4200                             TUX
                                           ---------------------
INDEPENDENT ACCOUNTANTS                    ANNUAL REPORT
TAIT, WELLER & BAKER                       DECEMBER 31, 1999





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