<PAGE> PAGE 1
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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 5
015 B000011 S
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015 E040011 X
015 A000012 BANQUE PARIBAS
015 B000012 S
015 C010012 PARIS
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015 D010014 HONG KONG
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015 D010015 INDONESIA
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<PAGE> PAGE 6
015 C010021 AMSTERDAM
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015 B000029 S
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<PAGE> PAGE 7
015 D010031 SWITZERLAND
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015 A000036 CITIBANK, N.A.
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<PAGE> PAGE 8
015 A000045 DELETE
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015 A000073 DELETE
015 A000074 DELETE
015 A000075 DELETE
015 A000076 DELETE
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<PAGE> PAGE 9
020 A000006 EDWARDS (A G) & SONS, INC.
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020 C000006 2
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020 C000007 2
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022 B000004 N/A
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022 C000005 60840
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022 C000006 55078
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022 A000007 UBS SECURITIES, L.L.C.
022 B000007 13-2932996
022 C000007 52038
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022 B000008 04-2442748
022 C000008 51326
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022 A000009 BANCAMERICA ROBERTSON STE
022 B000009 95-4035346
022 C000009 50043
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<PAGE> PAGE 10
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<PAGE> PAGE 11
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<PAGE> PAGE 12
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<PAGE> PAGE 13
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<PAGE> PAGE 14
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<PAGE> PAGE 15
074 T000000 248419
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080 C000000 175000
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086 D010000 0
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SIGNATURE DIOMEDES LOO-TAM
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FRANKLIN
UNIVERSAL TRUST AUGUST 31, 1998 ANNUAL REPORT AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1998
<PERIOD-END> AUG-31-1998
<INVESTMENTS-AT-COST> 319,779,921
<INVESTMENTS-AT-VALUE> 318,359,515
<RECEIVABLES> 7,382,342
<ASSETS-OTHER> 199,128
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 325,940,985
<PAYABLE-FOR-SECURITIES> 101,530
<SENIOR-LONG-TERM-DEBT> 75,000,000
<OTHER-ITEMS-LIABILITIES> 2,420,870
<TOTAL-LIABILITIES> 77,522,400
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 246,865,542
<SHARES-COMMON-STOCK> 26,779,333
<SHARES-COMMON-PRIOR> 26,779,333
<ACCUMULATED-NII-CURRENT> 3,322,857
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (347,898)
<ACCUM-APPREC-OR-DEPREC> (1,421,916)
<NET-ASSETS> 248,418,585
<DIVIDEND-INCOME> 5,691,288
<INTEREST-INCOME> 24,347,598
<OTHER-INCOME> 0
<EXPENSES-NET> (7,241,756)
<NET-INVESTMENT-INCOME> 22,797,130
<REALIZED-GAINS-CURRENT> (320,954)
<APPREC-INCREASE-CURRENT> (16,487,817)
<NET-CHANGE-FROM-OPS> 5,988,359
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (21,530,584)
<DISTRIBUTIONS-OF-GAINS> (9,212,090)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (24,754,315)
<ACCUMULATED-NII-PRIOR> 2,066,401
<ACCUMULATED-GAINS-PRIOR> 9,175,056
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (2,623,488)
<INTEREST-EXPENSE> (4,248,229)
<GROSS-EXPENSE> (7,241,756)
<AVERAGE-NET-ASSETS> 274,993,875
<PER-SHARE-NAV-BEGIN> 10.200
<PER-SHARE-NII> 0.850
<PER-SHARE-GAIN-APPREC> (0.630)
<PER-SHARE-DIVIDEND> (0.800)
<PER-SHARE-DISTRIBUTIONS> (0.340)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.280
<EXPENSE-RATIO> 2.630
<AVG-DEBT-OUTSTANDING> 75,000,000
<AVG-DEBT-PER-SHARE> 2.800
</TABLE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees of
Franklin Universal Trust
In planning and performing our audit of the financial
statements of Franklin Universal Trust for the year ended
August 31, 1998, we considered its internal control,
including controls over safeguarding securities, in order to
determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and to
comply with the requirements of Form N-SAR, not to provide
assurance on internal control.
The management of Franklin Universal Trust is responsible
for establishing and maintaining internal control. In
fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and
related costs of controls. Generally, controls that are
relevant to an audit pertain to the entity's objective of
preparing financial statements for external purposes that
are fairly presented in conformity with generally accepted
accounting principles. Those controls include the
safeguarding of assets against unauthorized acquisition,
use, or disposition.
Because of inherent limitations in internal control, errors
or irregularities may occur and not be detected. Also,
projection of any evaluation of internal control to future
periods is subject to the risk that it may become inadequate
because of changes in conditions or that the effectiveness
of the design and operation may deteriorate.
Our consideration of internal control would not necessarily
disclose all matters in internal control that might be
material weaknesses under standards established by the
American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or
operation of any specific internal control component does
not reduce to a relatively low level the risk that errors or
irregularities in amounts that would be material in relation
to the financial statements being audited may occur and not
be detected within a timely period by employees in the
normal course of performing their assigned functions.
However, we noted no matters involving internal control,
including controls over safeguarding securities that we
consider to be material weaknesses as defined above as of
August 31, 1998.
This report is intended solely for the information and use
of management and Securities and Exchange Commission.
PricewaterhouseCoopers L.L.P.
San Francisco, California
October 15, 1998
1
wpdoc2\nsar\1998\002-77c.doc 10/9/98
NAME OF REGISTRANT:
Franklin Universal Trust
File No. 811-5569
EXHIBIT ITEM No. 77C: Submission of matters to a vote of
security holders.
At the Annual Special Meeting of Shareholders of the registrant
(the "Fund") held on August 26, 1998 the following items were
voted upon:
1. To elect a Board of Trustees of the Fund.
FOR WITHHOLD
AUTHORITY
Frank H. Abbott, III 17,960,262,634 465,033.810
Harris J. Ashton 17,992,092.060 433,204.384
S. Joseph Fortunato 18,022,076.839 403,219.605
Edward B. Jamieson 18,032,503.138 406,044.002
Charles B. Johnson 18,019,252.442 392,793.306
Rupert H. Johnson, Jr. 18,045,306.089 379,990.355
Frank W. T. LaHaye 18,000,543.629 424,752.815
Gordon S. Macklin 18,000,138.490 425,157.954
2. To ratify the selection of PricewaterhouseCoopers LLP, as
independent auditors for the Fund for the current fiscal year.
VOTE FOR VOTE AGAINST
17,919,514,152 105,859.256
3. To eliminate the Fund's fundamental investment restriction
regarding the purchase and sale of oil, gas, mineral and/or real
estate interests.
VOTE FOR VOTE AGAINST
13,408,495.816 842,069.276
4. To eliminate the Fund's fundamental investment restriction
regarding short sales of securities.
VOTE FOR VOTE AGAINST
13,040,091.123 1,184,920.880
5. To amend the Fund's fundamental investment restriction
regarding lending.
VOTE FOR VOTE AGAINST
13,112,714.993 1,082,694.409
