TO THE STOCKHOLDERS
We are pleased to present this Mid-Year Report for Seligman Quality Municipal
Fund, reflecting the six-month period ended April 30, 1995.
During the past three months, Seligman Quality Municipal Fund paid Common
Stockholders federally tax-free dividends of $0.0782 per share on February 28,
March 28, and April 26, bringing total dividends to $0.2346 per share for the
three months. These payments translate to an annualized distribution rate of
7.51%, based on the market price of $12.50 on April 30. This rate is equal to a
taxable yield of 12.43% based on the maximum federal income tax rate of 39.6%.
Preferred Stockholders were paid annualized dividends ranging from 3.85% to
4.85%.
Your Fund's net asset value was $14.65 per share at April 30, up from
$14.18 on January 31, and $13.76 six months ago. Your Fund's market price was
$12.50 per share at April 30, compared to $12.625 on January 31, and $11.50 six
months ago.
For the three- and six-month periods ended April 30, total returns based on
net asset value were 5.15% and 11.00%, respectively, and based on market price
were 0.77% and 13.32%, respectively. (Total return reflects change in price, net
asset value or market as applicable, and assumes all distributions within the
period are reinvested in additional shares.)
Efforts by the Federal Reserve Board to slow the economy and stabilize
inflation appear to have been successful. Interest rates have been moving lower
as fears of an acceleration in inflation have subsided and economic reports
released to date strongly suggest that the economy is weakening. Long-term
municipal yields, as measured by the Bond Buyer 20-Bond General Obligation
Index, have declined a full percentage point from last year's high of 7.06% on
November 17. The sharp drop in interest rates has resulted in a significant
increase in the market value of long-term municipal securities, including the
holdings in your Fund.
Looking forward, we are optimistic with regard to the performance of your
Fund. As the economy continues to move toward a more moderate and sustainable
rate of growth, the bond markets are expected to settle into a period of stable
long-term interest rates.
Seligman Quality Municipal Fund's Annual Meeting of Stockholders was held
on May 18 in Milwaukee, Wisconsin. All the proposals that were outlined in the
proxy mailed to Stockholders in early April were passed.
For additional information about Seligman Quality Municipal Fund, or your
investment in its shares, please write or call using the toll-free telephone
numbers listed on page 11.
By order of the Board of Directors,
/s/William C. Morris
William C. Morris
Chairman
/s/Thomas G. Moles
Thomas G. Moles
President
May 26, 1995
1
<PAGE>
PORTFOLIO OF INVESTMENTS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
PERCENT OF NET
INVESTMENT FACE RATINGS
STATE ASSETS AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ MARKET VALUE
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Alaska 3.6 $1,425,000 Alaska Housing Finance Corporation
(Collateralized Mortgage Obligation),
7.05% due 6/1/2025 .......................... Aaa/AAA $1,459,399
2,280,000 Alaska Housing Finance Corporation
(Collateralized Veterans' Mortgage Program),
61/2% due 6/1/2034 .......................... Aaa/AAA 2,240,123
California 7.6 2,750,000 San Joaquin Hills Transportation Corridor
Agency Rev.(Senior Lien Toll Road),
63/4% due 1/1/2032 .......................... NR/NR 2,669,838
5,000,000 University of California Regents Rev., Multiple
Purpose Project, 63/8% due 9/1/2024 ......... Aaa/AAA 5,060,800
Florida 3.3 3,000,000 Miami Health Facilities Authority Rev. (Mercy
Hospital Project), 63/4% due 8/1/2020 ...... Aaa/AAA 3,322,890
Georgia 2.9 3,000,000 Atlanta Airport Facilities Rev.,
61/4% due 1/1/2021* ......................... Aaa/AAA 2,961,870
Hawaii 1.8 1,750,000 Hawaii State Airports System Rev.,
7% due 7/1/2020* ............................ Aaa/AAA 1,858,062
Illinois 6.3 3,000,000 Cook County G.O.'s, 63/4% due 11/1/2018 ....... Aaa/AAA 3,316,200
3,000,000 Regional Transportation Authority G.O.'s,
6.70% due 11/1/2011 ......................... Aaa/AAA 3,136,260
Kansas 3.2 3,000,000 Burlington Pollution Control Rev. (Kansas Gas
and Electric Company Project),
7% due 6/1/2031 ............................. Aaa/AAA 3,223,020
Louisiana 3.1 1,000,000 Louisiana Public Facilities Authority Hospital
Rev. (Southern Baptist Hospitals Inc.
Project), 8% due 5/15/2012 ................. NR/AAA 1,165,670
2,000,000 Louisiana Public Facilities Authority Hospital
Rev.(Our Lady of Lourdes Regional Medical
Center Project), 6.45% due 2/1/2022 ......... Aaa/AAA 2,022,820
Massachusetts 8.9 1,750,000 Massachusetts Health & Educational Facilities
Authority Rev. (New England Deaconess
Hospital), 7.20% due 4/1/2022 ............... A/A 1,784,143
4,000,000 Massachusetts Health & Educational Facilities
Authority Rev. (New England Medical Center),
65/8% due 7/1/2025 Aaa/AAA 4,136,920
3,000,000 Massachusetts Housing Finance Agency Rev.
(Residential Development),
67/8% due 11/15/2021 ........................ Aaa/AAA 3,084,120
Montana 5.5 2,220,000 Forsyth Pollution Control Rev. (Puget Sound
Power & Light Co.), 71/4% due 8/1/2021* ..... Aaa/AAA 2,387,366
3,000,000 Montana State Board of Investments Payroll Tax
Rev. (Workers' Compensation Program),
67/8% due 6/1/2020 .......................... Aaa/AAA 3,187,770
New Hampshire 4.4 5,000,000 New Hampshire Higher Educational & Health
Facilities Authority Rev. (Dartmouth
College), 53/8% due 6/1/2023 ................ Aaa/AA+ 4,472,250
New York 11.6 5,000,000 Metropolitan Transportation Authority Rev.
(Commuter Facilities), 61/4% due 7/1/2017 ... Aaa/AAA 5,037,550
3,500,000 New York State Thruway Authority Rev.,
6% due 1/1/2025 ............................ Aaa/AAA 3,395,910
2
<PAGE>
April 30, 1995
- ------------------------------------------------------------------------------------------------------------
PERCENT OF NET
INVESTMENT FACE RATINGS
STATE ASSETS AMOUNT MUNICIPAL BONDS MOODY'S/S&P+ MARKET VALUE
- ------------------------------------------------------------------------------------------------------------
$3,000,000 New York State Local Government Assistance
Corporation, 7% due 4/1/2021 ................ Aaa/AAA $ 3,342,480
Pennsylvania 4.6 2,500,000 Allegheny County Airport Rev. (Greater
Pittsburgh International Airport),
6.80% due 1/1/2010* ......................... Aaa/AAA 2,655,125
2,000,000 Allegheny County Airport Rev. (Greater
Pittsburgh International Airport),
65/8% due 1/1/2022* ......................... Aaa/AAA 2,045,360
Rhode Island 3.2 3,000,000 Convention Center Authority of Rhode Island
Rev., 6.70% due 5/15/2020 ................... Aaa/AAA 3,299,460
South
Carolina 8.9 4,000,000 South Carolina Public Service Authority (Santee
Cooper), 61/2% due 7/1/2024 ................ Aaa/AAA 4,385,800
4,500,000 South Carolina State Ports Authority Rev.,
63/4% due 7/1/2021* ......................... Aaa/AAA 4,630,185
Texas 5.0 3,000,000 Houston Water and Sewer System Rev.,
61/2% due 12/1/2021 ......................... Aaa/AAA 3,077,070
1,930,000 Texas State Veterans' Housing Assistance
G.O.'s, 6.80% due 12/1/2023* ................ Aa/AA 1,957,425
Virginia 3.6 3,500,000 Virginia Housing Development Authority (Multi-
family Housing), 7% due 11/1/2012 ........... Aa/AA+ 3,625,090
Washington 5.1 860,000 Douglas County Public Utilities District #1
Hydroelectric Rev., 7.80% due 9/1/2018* .... A/A+ 940,221
1,000,000 Municipality of Metropolitan Seattle Sewer
Rev., 6.60% due 1/1/2032 .................... Aaa/AAA 1,022,180
3,000,000 Washington Public Power Supply System Rev.
Nuclear Project #1, 7% due 7/1/2011 ........ Aaa/AAA 3,210,210
Wisconsin 4.1 4,000,000 Wisconsin Housing & Economic Development
Authority Housing Rev., 6.85% due 11/1/2012 . Aaa/AAA 4,174,680
------------
TOTAL MUNICIPAL BONDS (COST $93,964,898) -- 96.7% ....................................... 98,288,267
SHORT-TERM HOLDINGS (COST $1,000,000) -- 1.0% ........................................... 1,000,000
OTHER ASSETS LESS LIABILITIES -- 2.3% ................................................... 2,339,015
------------
NET INVESTMENT ASSETS-- 100.0% $101,627,282
============
</TABLE>
- --------------------
* Interest income earned from this security is subject to the federal
alternative minimum tax.
+ Ratings have not been audited by Deloitte & Touche LLP.
See notes to financial statements.
3
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES April 30, 1995
ASSETS:
Investments at value:
Long-term holdings (cost $93,964,898) ...... $98,288,267
Short-term holdings (cost $1,000,000) ...... 1,000,000 $ 99,288,267
-----------
Cash ........................................................ 197,336
Interest receivable ......................................... 2,211,596
Expenses prepaid to stockholder service agent ............... 29,844
Deferred organizational expenses ............................ 28,264
Other ....................................................... 11,365
------------
TOTAL ASSETS ................................................ 101,766,672
------------
LIABILITIES:
Accrued expenses, taxes, and other .......................... 139,390
------------
NET INVESTMENT ASSETS ....................................... 101,627,282
Preferred Stock ............................................. 33,600,000
------------
NET ASSETS FOR COMMON STOCK ................................. $ 68,027,282
============
NET ASSETS PER SHARE OF COMMON STOCK (Market value $12.50) .. $14.65
======
COMPOSITION OF NET INVESTMENT ASSETS:
Preferred Stock Series TH, $.01 par value, liquidation
preference and asset coverage per share--$50,000 and
$151,231, respectively; Shares authorized and
outstanding--1,000 and 672, respectively ............... $ 33,600,000
Common Stock, $.01 par value: Shares authorized--49,999,000;
issued and outstanding--4,642,985 ...................... 46,430
Additional paid-in capital .................................. 63,268,585
Undistributed net investment income ......................... 381,393
Undistributed net realized gain ............................. 7,505
Unrealized appreciation of investments ...................... 4,323,369
------------
NET INVESTMENT ASSETS $101,627,282
============
- --------------------
See notes to financial statements.
4
<PAGE>
STATEMENT OF OPERATIONS For the six months ended April 30, 1995
INVESTMENT INCOME:
Interest .................................. $3,172,338
EXPENSES:
Management fee ............................ $ 318,577
Stockholder account, transfer, and
registrar services ................... 64,232
Auction agent fee ......................... 41,919
Auditing and legal fees ................... 38,295
Custody and related services .............. 19,430
Stockholder reports and communications .... 18,151
Stockholders' meeting ..................... 15,423
Amortization of organizational expenses ... 8,924
Directors' fees and expenses .............. 5,784
Miscellaneous ............................. 4,148
----------
TOTAL EXPENSES ............................ 534,883
----------
NET INVESTMENT INCOME ..................... 2,637,455*
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain on investments .......... 13,976
Net change in unrealized depreciation
of investments ....................... 4,634,047
----------
NET GAIN ON INVESTMENTS ................... 4,648,023
----------
INCREASE IN NET INVESTMENT ASSETS FROM
OPERATIONS ........................... $7,285,478
==========
- --------------------
* Net investment income available for Common Stock is $1,957,364, which is net
of Preferred Stock dividends.
See notes to financial statements.
5
<PAGE>
STATEMENTS OF CHANGES IN NET INVESTMENT ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1995 OCTOBER 31, 1994
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income ................................................................. $ 2,637,455 $ 5,268,577
Net realized gain on investments ...................................................... 13,976 307,991
Net change in unrealized appreciation/depreciation of investments ..................... 4,634,047 (11,673,722)
------------ ------------
Increase (decrease) in net investment assets from operations .......................... 7,285,478 (6,097,154)
------------ ------------
DISTRIBUTIONS TO STOCKHOLDERS:
Net investment income:
Preferred Stock, Series TH (per share: $1,012.04 and $1,396.83) .................. (680,091) (938,670)
Common Stock (per share: $.4692 and $.9384) ...................................... (2,175,935) (4,350,638)
------------ ------------
Total ............................................................................ (2,856,026) (5,289,308)
------------ ------------
Net realized gain on investments:
Common Stock (per share: $.067 and $.273) ........................................ (310,666) (1,265,747)
------------ ------------
Decrease in net investment assets from distributions .................................. (3,166,692) (6,555,055)
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Value of shares of Common Stock issued for investment plan
(43,514 and 88,277 shares) ....................................................... 561,077 1,229,855
Value of shares of Common Stock issued in payment of gain
distribution (3,774 and 14,068 shares) ........................................... 46,458 213,607
Cost of shares purchased for investment plan
(48,000 and 102,300 shares) ...................................................... (604,818) (1,473,275)
------------ ------------
Increase (decrease) in net investment assets from capital share transactions .......... 2,717 (29,813)
------------ ------------
Increase (decrease) in net investment assets .......................................... 4,121,503 (12,682,022)
NET INVESTMENT ASSETS:
Beginning of period ................................................................... 97,505,779 110,187,801
------------ ------------
End of period (including undistributed net investment income
of $381,393 and $599,964) ........................................................ $101,627,282 $ 97,505,779
============ ============
</TABLE>
- --------------------
See notes to financial statements.
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. Significant accounting policies followed, all in conformity with generally
accepted accounting principles, are given below:
a. All tax-exempt securities and other short-term holdings maturing in more than
60 days are valued based upon quotations provided by an independent pricing
service or, in their absence, at fair value determined in accordance with
procedures approved by the Board of Directors. Short-term holdings maturing
in 60 days or less are generally valued at amortized cost.
b. The Fund has elected to be taxed as a regulated investment company and
intends to distribute substantially all taxable net income and net gain
realized.
c. Investment transactions are recorded on trade dates. Identified cost of
investments sold is used for both financial statement and federal income tax
purposes. Interest income is recorded on the accrual basis. The Fund
amortizes original issue discounts and premiums paid on purchases of
portfolio securities. Discounts other than original issue discounts are not
amortized.
d. Deferred organizational expenses incurred by the Fund in connection with its
initial offering are being amortized on a straight-line basis over a
five-year period beginning with the commencement of operations of the Fund.
e. Dividends and distributions paid by the Fund are recorded on the ex-dividend
date.
f. The treatment for financial statement purposes of distributions made during
the year from net investment income or net realized gains may differ from
their ultimate treatment for federal income tax purposes. These differences
primarily are caused by differences in the timing of the recognition of
certain components of income, expense, or capital gain. Where such
differences are permanent in nature, they are reclassified in the components
of net assets based on their ultimate characterization for federal income tax
purposes. Any such reclassification will have no effect on net assets,
results of operations, or net asset value per share of the Fund.
2. Purchases and sales of portfolio securities, excluding short-term
investments, for the six months ended April 30, 1995, amounted to $3,442,355 and
$3,705,030, respectively.
At April 30, 1995, the cost of investments for federal income tax purposes
was substantially the same as the cost for financial reporting purposes, and the
tax basis gross unrealized appreciation and depreciation of portfolio securities
amounted to $4,686,113 and $362,744, respectively.
3. Under the Fund's Charter, dividends or other distributions on the Common
Stock cannot be declared unless the Fund can satisfy the requirements of two
separate asset maintenance tests after giving effect to such distributions.
The Fund, in connection with its Dividend Investment Plan (the "Plan"),
acquires and issues shares of its own Common Stock, as needed, to satisfy Plan
requirements. For the six months ended April 30, 1995, 48,000 shares were
purchased in the open market at a cost of $604,818, which represented a weighted
average discount of 4.53% from the net asset value of those acquired shares. A
total of 47,288 shares were issued to Plan participants during this period for
proceeds of $607,535, a discount of 3.70% from the net asset value of those
shares.
The Fund may make additional purchases of its Common Stock in the open market
and elsewhere at such prices and in such amounts as the Board of Directors may
deem advisable. No such additional purchases were made during the six months
ended April 30, 1995.
4. The Fund is authorized to issue 50,000,000 shares of Capital Stock, par value
$.01 per share, all of which were initially classified as Common Stock. The
Board of Directors is authorized to classify and reclassify any unissued shares
of Capital Stock, and has reclassified 1,000 shares of unissued Common Stock as
Preferred Stock.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
The Preferred Stock is redeemable at the option of the Fund, in whole or in
part, on any dividend payment date at $50,000 per share plus any accumulated but
unpaid dividends. The Preferred Stock is also subject to mandatory redemption at
$50,000 per share plus any accumulated but unpaid dividends if certain
requirements relating to the composition of the assets and liabilities of the
Fund as set forth in its Charter are not satisfied. Liquidation preference of
the Preferred Stock is $50,000 per share plus accumulated and unpaid dividends.
Dividends on Preferred Shares are cumulative at a rate established at the
initial public offering and are typically reset every 7 days based on the rate
per annum or such other period as determined by the Fund that results from an
auction.
The holders of Preferred Stock have voting rights equal to the holders of
Common Stock (one vote per share) and generally will vote together with holders
of shares of Common Stock as a single class. Voting as a separate class, holders
of Preferred Stock are entitled to elect two of the Fund's directors.
5. J. & W. Seligman & Co. Incorporated (the "Manager") manages the affairs of
the Fund and provides the necessary personnel and facilities. Compensation of
all officers of the Fund, all directors of the Fund who are employees or
consultants of the Manager, and all personnel of the Fund and the Manager is
paid by the Manager. The Manager's fee, calculated daily and payable monthly, is
equal to 0.65% per annum of the Fund's average daily net assets.
Seligman Data Corp., which is owned by certain associated investment
companies, charged at cost, $47,213 for stockholder account services.
Certain officers and directors of the Fund are officers or directors of the
Manager and/or Seligman Data Corp.
Fees of $8,000 were incurred by the Fund for the legal services of Sullivan &
Cromwell, a member of which firm is a director of the Fund.
The Fund has a compensation arrangement under which directors who receive
fees may elect to defer receiving such fees. Interest is accrued on the
de-ferred balances. The cost of such fees and interest is included in directors'
fees and expenses, and the accumulated balance thereof at April 30, 1995, of
$10,232 is included in other liabilities.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
The Fund's financial highlights are presented on page 9. The per share operating
performance data is designed to allow investors to trace the operating
performance, on a per Common share basis, from the Fund's beginning net asset
value to the ending net asset value so that they can understand what effect the
individual items have on their investment, assuming it was held throughout the
period. Generally, the per share amounts are derived by converting the actual
dollar amounts incurred for each item, as disclosed in the financial statements,
to their equivalent per Common share amount.
The total investment return based on market value measures the Fund's
performance assuming investors purchased Fund shares at market value as of the
beginning of the period, reinvested dividends and capital gains paid as provided
for in the Fund's dividend investment plan, and then sold their shares at the
closing market value per share on the last day of the period. The computations
do not reflect any sales commissions investors may incur in purchasing or
selling Fund shares. The total investment return based on net asset value is
similarly computed except that the Fund's net asset value is substituted for the
8
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
corresponding market value. The total returns for periods of less than one year
are not annualized.
The ratios of expenses to average net assets and net investment income to
average net assets for all periods presented do not reflect the effect of
dividends paid to Preferred Stockholders.
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED 11/29/91*
ENDED OCTOBER 31, TO
PER SHARE OPERATING PERFORMANCE: 4/30/95 1994 1993 10/31/92
------- ---- ---- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ......................... $13.76 $16.49 $14.05 $14.06
------ ------ ------ ------
Net investment income** ...................................... 0.57 1.13 1.13 0.96
Net realized and unrealized investment gain (loss) ........... 1.01 (2.45) 2.46 0.29
------ ------ ------ ------
Increase (decrease) from investment operations ............... 1.58 (1.32) 3.59 1.25
Dividends paid on Preferred Stock ............................ (0.15) (0.20) (0.19) (0.14)
Dividends paid on Common Stock ............................... (0.47) (0.94) (0.94) (0.70)
Distribution from net realized gain .......................... (0.07) (0.27) (0.02) --
Offering costs of Common Stock ............................... -- -- -- (0.21)
Offering costs of Preferred Stock ............................ -- -- -- (0.08)
Preferred Stock underwriting discount ........................ -- -- -- (0.13)
------ ------ ------ ------
Net increase (decrease) in net asset value ................... 0.89 (2.73) 2.44 (0.01)
------ ------ ------ ------
Net asset value, end of period ............................... $14.65 $13.76 $16.49 $14.05
====== ====== ====== ======
Market value, end of period .................................. $12.50 $11.50 $15.75 $14.125
====== ====== ====== ======
TOTAL INVESTMENT RETURN FOR PERIOD:
Based upon market value ................................. 13.32% (20.50)% 18.79% (1.90)%
Based upon net asset value .............................. 11.00% (9.15)% 25.03% 5.01%
RATIOS/SUPPLEMENTAL DATA:**
Expenses to average net assets ............................... 1.09%+ 1.11% 1.17% 0.94%+
Net investment income to average net assets .................. 5.38%+ 5.06% 4.96% 6.17%+
Portfolio turnover rate ...................................... 3.60% 12.36% 10.69% 9.33%
Net investment assets, end of period
(000's omitted):
For Common Stock ........................................ $68,027 $63,906 $76,588 $65,262
For Preferred Stock ..................................... 33,600 33,600 33,600 33,600
-------- ------- -------- -------
Total net investment assets .................................. $101,627 $97,506 $110,188 $98,862
======== ======= ======== =======
</TABLE>
- --------------------
* Commencement of operations.
** During the period November 29, 1991, to October 31, 1992, had the Manager, at
its discretion, not waived a portion of its fee, the per share net investment
income would have been $0.94. The annualized ratios of expenses to average
net assets and net investment income to average net assets would have been
1.11% and 6.00%, respectively.
+ Annualized.
See notes to financial statements.
9
<PAGE>
REPORT OF INDEPENDENT AUDITORS
THE BOARD OF DIRECTORS AND STOCKHOLDERS,
SELIGMAN QUALITY MUNICIPAL FUND, INC.:
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Seligman Quality Municipal Fund, Inc. as of
April 30, 1995, the related statements of operations for the six months then
ended and of changes in net investment assets for the six months then ended and
for the year ended October 31, 1994, and the financial highlights for each of
the periods presented. 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 audits 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 at April
30, 1995, by correspondence with the Fund's 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, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Seligman Quality
Municipal Fund, Inc. as of April 30, 1995, the results of its operations, the
changes in its net investment assets, and the financial highlights for the
respective stated periods, in conformity with generally accepted accounting
principles.
/s/ DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
New York, New York
May 26, 1995
10
<PAGE>
BOARD OF DIRECTORS
Fred E. Brown
Director and Consultant,
J. & W. Seligman & Co. Incorporated
John R. Galvin 2
Distinguished Policy Analyst, Ohio State University
Director, USLIFE Corporation
Alice S. Ilchman 3
President, Sarah Lawrence College
Trustee, Committee for Economic Development
Director, NYNEX
Trustee, The Rockefeller Foundation
Frank A. McPherson 2
Chairman and CEO, Kerr-McGee Corporation
Director, Kimberly-Clark Corporation
Chairman and Director, Baptist Medical Center
John E. Merow
Partner, Sullivan & Cromwell, Attorneys
Betsy S. Michel 2
Director or Trustee, Various Organizations
William C. Morris 1
Chairman
Chairman of the Board and President,
J. & W. Seligman & Co. Incorporated
Chairman, Carbo Ceramics Inc.
Director, Daniel Industries, Inc.
Director, Kerr-McGee Corporation
James C. Pitney 3
Partner, Pitney, Hardin, Kipp & Szuch, Attorneys
Director, Public Service Enterprise Group
James Q. Riordan 3
Director, The Brooklyn Union Gas Company
Trustee, Committee for Economic Development
Director, Dow Jones & Co., Inc.
Director, Public Broadcasting Service
Ronald T. Schroeder 1
Managing Director, J. & W. Seligman & Co. Incorporated
Robert L. Shafer 3
Vice President, Pfizer Inc.
Director, USLIFE Corporation
James N. Whitson 2
Executive Vice President and Director,
Sammons Enterprises, Inc.
Director, C-SPAN
Director, Red Man Pipe and Supply Company
Brian T. Zino 1
Managing Director, J. & W. Seligman & Co. Incorporated
- --------------------
Member: 1 Executive Committee
2 Audit Committee
3 Director Nominating Committee
- --------------------------------------------------------------------------------
EXECUTIVE OFFICERS
William C. Morris
Chairman
Thomas G. Moles
President
Eileen A. Comerford
Vice President
Audrey G. Kuchtyak
Vice President
Lawrence P. Vogel
Vice President
Thomas G. Rose
Treasurer
Frank J. Nasta
Secretary
- --------------------------------------------------------------------------------
MANAGER
J. & W. Seligman & Co. Incorporated
100 Park Avenue
New York, NY 10017
GENERAL COUNSEL
Sullivan & Cromwell
INDEPENDENT AUDITORS
Deloitte & Touche LLP
STOCKHOLDER SERVICE AGENT
Seligman Data Corp.
100 Park Avenue
New York, NY 10017
IMPORTANT TELEPHONE NUMBERS
(800) 622-4597 24-Hour Automated
Telephone Access
Service
(800) 874-1092 Stockholder Services
11
<PAGE>
SELIGMAN
QUALITY
MUNICIPAL
FUND, INC.
[J&W Seligman Logo]
MID-YEAR REPORT
APRIL 30, 1995
Seligman Quality Municipal Fund, Inc.
Managed by
[J&W Seligman Logo]
J. & W. Seligman & Co.
Incorporated
Investment Managers and Advisors
Established 1864
100 Park Avenue, New York, NY 10017
CESQF3b 4/95
