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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
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
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<PAGE> PAGE 11
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<PAGE> PAGE 13
SIGNATURE DIOMEDES LOO-TAM
TITLE ASSISTANT TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE FRANKLIN PRINCIPAL MATURITY TRUST NOVEMBER 30, 1994 ANNUAL REPORT
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> NOV-30-1994
<PERIOD-START> DEC-01-1993
<PERIOD-END> NOV-30-1994
<INVESTMENTS-AT-COST> 255,534,356
<INVESTMENTS-AT-VALUE> 225,913,409
<RECEIVABLES> 2,900,079
<ASSETS-OTHER> 5,145,522
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 233,959,010
<PAYABLE-FOR-SECURITIES> 75,145,875
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,305,294
<TOTAL-LIABILITIES> 76,451,169
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 185,357,844
<SHARES-COMMON-STOCK> 20,462,600
<SHARES-COMMON-PRIOR> 20,462,600
<ACCUMULATED-NII-CURRENT> 2,090,458
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (323,358)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (29,617,103)
<NET-ASSETS> 157,507,841
<DIVIDEND-INCOME> 898,320
<INTEREST-INCOME> 14,988,901
<OTHER-INCOME> 0
<EXPENSES-NET> (4,893,931)
<NET-INVESTMENT-INCOME> 10,993,290
<REALIZED-GAINS-CURRENT> (294,809)
<APPREC-INCREASE-CURRENT> (35,895,185)
<NET-CHANGE-FROM-OPS> (25,196,704)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (12,074,213)
<DISTRIBUTIONS-OF-GAINS> (2,116,600)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (39,387,517)
<ACCUMULATED-NII-PRIOR> 3,142,832
<ACCUMULATED-GAINS-PRIOR> 2,116,600
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (1,127,460)
<INTEREST-EXPENSE> (3,457,672)
<GROSS-EXPENSE> (4,893,931)
<AVERAGE-NET-ASSETS> 188,089,951
<PER-SHARE-NAV-BEGIN> 9.62
<PER-SHARE-NII> .540
<PER-SHARE-GAIN-APPREC> (1.766)
<PER-SHARE-DIVIDEND> (.590)
<PER-SHARE-DISTRIBUTIONS> (.104)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.70
<EXPENSE-RATIO> 2.60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees
of the Franklin Principal Maturity Trust:
In planning and performing our audit of the financial statements and financial
highlights of the Franklin Principal Maturity Trust for the year ended November
30, 1994, we considered its internal control structure, including procedures for
safeguarding securities, in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial statements and financial
highlights and to comply with the requirements of Form N-SAR, not to provide
assurance on the internal control structure.
The management of the Franklin Principal Maturity Trust is responsible for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgements by management are required to assess
the expected benefits and related costs of internal control structure policies
and procedures. Two of the objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any
evaluation of the structure to future periods is subject to the risk that
it may become inadequate because of changes in conditions or that the
effectiveness of the design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce
to a relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements and financial
highlights being audited may occur and not be detected within a timely period
by employees in the normal course of performing their assigned functions.
However, we noted no matters involving the internal control structure, including
procedures for safeguarding securities, that we consider to be material
weaknesses, as defined above, as of November 30, 1994.
This report is intended solely for the information and use of
management of the Franklin Principal Maturity Trust and the Securities
and Exchange Commission.
S\COOPERS & LYBRAND L.L.P.
Coopers and Lybrand
San Francisco, California
December 29, 1994
1
NAME OF REGISTRANT:
Franklin Principal Maturity Trust
File No. 811-5699
EXHIBIT ITEM No. 77C:
Submission of matters to a vote of security holders.
At the annual meeting of shareholders of the registrant held on
July 8, 1994 the following items were voted upon:
(1) Election of Trustees.
FOR WITHHOLD
AUTHORITY
Frank H. Abbott, III 15,445,080.423 189,995.725
Harris J. Ashton 15,469,587.676 175,488.472
S. Joseph Fortunato 15,469,329.548 175,746.600
David W. Garbellano 15,452,539.426 192,536.722
Edward B. Jamieson 15,477,812.335 167,263.813
Charles B. Johnson 15,491,417.859 153,658.289
Rupert H. Johnson, Jr. 15,492,955.859 152,120.289
Frank W. T. LaHaye 15,475,729.676 169,346.472
Gordon S. Macklin 15,479,287.877 165,788.271
(2) Ratification of the selection of Coopers & Lybrand,
Certified Public Accountants, as the independent auditors for the
Fund for the fiscal year ending November 30, 1995.
VOTE FOR VOTE AGAINST
15,340,265.848 65,751.266
(3) To approve an amendment to the Fund's investment policies to
permit the Fund to purchase trade claims.
VOTE FOR VOTE AGAINST
5,842,236.561 747,711.733
WPDOC2/NSAR/003-77C.DOC January 13,
1995
