TRI-CONTINTENTAL CORPORATION
To the Stockholders:
Tri-Continental Corporation's portfolio experienced a total return of 1.83%
based on net asset value, and 2.19% based on market price in the first quarter.
These returns were better than those of other similar funds, but were not as
good as the Standard &Poor's 500 Composite Stock Price Index (S&P 500). The
Lipper Closed-End Growth and Income Funds Average was up 0.87% and the S&P500
was up 2.68%. Additional information on Tri-Continental's investment results
appears on page 4.
In the first quarter of 1997, the economy continued its expansion, supported
by strong retail and housing-related consumer spending. Industrial production
also strengthened, as new orders increased and inventories dwindled. Moreover,
employment levels and personal incomes continued to rise. Despite all these
signs of economic growth, both consumer price and producer price indices did not
indicate a significant increase in inflationary pressures. Nonetheless, on March
25, the Federal Reserve Board increased the federal funds rate -- the interest
rate charged for interbank loans -- from 5.25% to 5.50%, due to concerns that
strong consumer demand could be enough to produce higher inflation in the near
future.
In the financial markets, the latter half of the first quarter brought
renewed doubts as to whether current levels of economic growth could be
sustained. Though large-company indices posted outstanding increases in January
and February, the trend reversed in March in conjunction with the Fed's action.
The immediate impact of the fed funds rate increase was a correction in the
equity markets, which closed the quarter on a down note.
Looking ahead, even though the Fed's action may increase near-term
uncertainty in the financial markets, we believe that the long-term trends of
economic growth and price stability that propelled the equity markets for the
last two years are still in place. The domestic economy has proven its ability
to stay on track, and the Fed's decision to raise short-term interest rates was
meant to increase long-term price stability. These trends lay the foundation for
soundly valued markets that can sustain long-term increases in equity prices
based on continued corporate profitability.
Tri-Continental Corporation's Annual Meeting will be held on Thursday, May
15, 1997, at 10:00 a.m. in the Harborview Ballroom at the World Trade Center
Boston, 164 Northern Avenue, Boston, MA 02210. We encourage those Stockholders
who are able to attend to do so.
On a final note, we have regretfully accepted Fred E. Brown's decision to
formally retire from your Corporation's Board of Directors. Mr. Brown has been
elected Director Emeritus of the Board, and Tri-Continental Corporation will
still be able to benefit from his invaluable advice and counsel. Mr. Brown, who
was Chairman and CEO of J. & W. Seligman & Co. from 1965 to 1988, and Chairman
of the Board of your Corporation from 1968 to 1988, has served with unparalleled
dedication for nearly 60 years.
A discussion with your Portfolio Managers and the Corporation's portfolio of
investments follow this letter.
We thank you for your continued interest in Tri-Continental Corporation, and
look forward to serving your investment needs in the many years to come.
By order of the Board of Directors,
/s/ William C. Morris
- ----------------------------
William C. Morris
Chairman
/s/ Brian T. Zino
------------------------
Brian T. Zino
President
May 2, 1997
<PAGE>
TRI-CONTINENTAL CORPORATION
INTERVIEW WITH YOUR PORTFOLIO MANAGERS, ODETTE GALLI AND CHARLES C. SMITH, JR.
[PHOTO}
Seligman Growth and Income Team:(from left) Rodney Collins, Margaret Doyle,
Jonathan Roth, Odette Galli (Co-Portfolio Manager), (seated)Melanie Ravenell
(Administrative Assistant), Charles C. Smith, Jr. (Co-Portfolio Manager), Amy
Fujii.
What were Tri-Continental Corporation's investment results in the first quarter
of 1997?
"The Corporation had total returns of 1.83%, based on net asset value, and
2.19%, based on market price. These returns lagged the 2.68% total return of the
Standard & Poor's 500 Composite Stock Price Index (S&P 500), but outpaced the
0.87% total return of Tri-Continental's peers, as measured by the Lipper
Closed-End Growth and Income Funds Average."
Which economic and market factors affected Tri-Continental Corporation's
investment results?
"Investor anticipation of a Federal Reserve Board action drove the equity
markets in the first quarter, bringing first a rise in the valuations of
larger-capitalized issues and then progressive sell-offs. Further, suggestions
by Alan Greenspan, Chairman of the Fed, that the Fed might raise interest rates
in conjunction with signs that the economy was strengthening dampened enthusiasm
for stocks and bonds. However, the prices of the stocks owned by Tri-Continental
were more resilient to the market's late-quarter correction than was the S&P
500."
What was your investment strategy?
"The investment strategy remained consistent. We focused primarily on stock
selection, seeking companies whose prices did not reflect their long-term
earnings potential. In the quarter, Tri-Continental became more fully invested,
though a conservative investment approach was taken due to the market
environment. Equity holdings were added to the portfolio on market weakness, in
keeping with our discipline of finding stocks trading at the low end of their
historical valuation ranges. When evaluating stocks for purchase, companies that
had strong earnings growth or restructuring potential were sought. Overall, we
believe that our consistent investment strategy is the best long-term way to
position Tri-Continental's assets to meet the Corporation's objectives."
Which sectors in the portfolio improved the Corporation's investment results?
"Despite volatility, the Corporation's financial holdings, including banks,
savings and loans, and insurance companies, performed well as a group because
their earnings outlook remained positive. Additionally, many of these companies
continued to repurchase their stock, despite the rising interest rate
environment. Strong performers were also found in the portfolio's drug and
health care sector, with pharmaceutical stocks leading. Finally, the portfolio's
consumer goods and services, publishing, and retail stocks all did very well."
2
<PAGE>
TRI-CONTINTENTAL CORPORATION
Which sectors impaired the Corporation's investment results?
"The telecommunications sector performed poorly due to the increase in
competition resulting from ongoing deregulation. We believe, nonetheless, that
the telecommunications stocks that the Corporation holds are those that should
best withstand the present turbulence in the marketplace. Another area of
weakness was the transportation sector. Severe weather in the Midwest increased
transportation costs, and Wall Street, therefore, lowered the sector's earnings
estimates. Finally, technology stocks underperformed, and the portfolio's
holdings in electronics and computer and business services stocks reduced the
Corporation's investment results."
What is the outlook?
"After two unusually strong years in the stock market, many large companies'
stock prices have reached the high end of their historical valuation ranges. At
the same time, the current market environment has penalized companies that have
failed to meet earnings expectations. Generally, your Corporation's assets have
been invested in companies with average weighted market capitalizations of about
$24 billion, well below the average weighted market capitalization of the S&P
500. These companies appear more reasonably valued and we believe they offer
greater earnings growth potential over the long term.
"Despite the difficult market conditions, we remain positive on the
long-term fundamentals of the global financial markets. Though additional
interest rate increases by the Fed would probably provoke further short-term
volatility, we believe that temporary corrections in market valuations provide
us with buying opportunities. We also believe the portfolio's sound valuations
should help limit downside risk in this challenging environment."
3
<PAGE>
TRI-CONTINENTAL CORPORATION
- --------------------------------------------------------------------------------
INVESTMENT RESULTS PER COMMON SHARE
TOTAL RETURNS*
FOR PERIODS ENDED MARCH 31, 1997
<TABLE>
<CAPTION>
Average Annual
-------------------------------------------------------
Three One Five 10
Months Year Years Years
-------- ----- ----- -----
<S> <C> <C> <C> <C>
MARKET PRICE 2.19% 17.29% 10.60% 9.41%
NET ASSET VALUE 1.83 15.66 13.78 11.51
S&P 500** 2.68 19.82 16.42 13.38
LIPPER CLOSED-END
GROWTH &INCOME
FUNDS AVERAGE** 0.87 15.60 13.56 11.08
</TABLE>
PRICE PER SHARE
March 31, 1997 December 31, 1996
-------------- -----------------
MARKET PRICE $24.50 $24.125
NET ASSET VALUE 29.63 29.28
DIVIDEND AND CAPITAL GAIN INFORMATION
FOR THE THREE MONTHS ENDED MARCH 31, 1997
Capital Gain
-------------------------------
Dividend Paid+ Realized Unrealized++
-------------- --------- ----------
$0.16 $0.63 $6.52
---------------------------------------------------------
* These rates of return reflect changes in the market price or the net
asset value, as applicable, and assume that all distributions within the
period are taken in additional shares. The rates of return will vary and
the principal value of an investment will fluctuate. Shares, if
redeemed, may be worth more or less than their original cost. Past
performance is not indicative of future investment results.
** The S&P 500 and the Lipper Closed-End Growth &Income Funds Average are
unmanaged benchmarks that assume investment of dividends. The S&P500
does not reflect fees and sales charges, and the Lipper Closed-End
Growth &Income Funds Average does not reflect sales charges. Investors
may not invest directly in an index or an average.
+ Preferred Stockholders were paid dividends totaling $0.625 per share.
++ Represents the per share amount of net unrealized appreciation of
portfolio securities as of March 31, 1997.
- --------------------------------------------------------------------------------
4
<PAGE>
TRI-CONTINENTAL CORPORATION
LARGEST PORTFOLIO CHANGES
January 1 to March 31, 1997
SHARES
----------------------------
HOLDINGS
ADDITIONS INCREASE 3/31/97
--------- ----------
COMMON STOCKS
Allegheny Teledyne Inc. 800,000 800,000
CIGNA Corporation 150,000 150,000
Dominion Resources, Inc. 500,000 500,000
Edison International 1,000,000 1,000,000
GATX Corporation 350,000 350,000
ITT Hartford Group, Inc. 300,000 300,000
James River Corporation
of Virginia 800,000 800,000
Magna International, Inc.
Class "A" 455,000 455,000
PacifiCorp 1,000,000 1,000,000
QUALCOMM, Inc. 325,000 325,000
SHARES OR PRIN. AMT.
------------------------------
HOLDINGS
REDUCTIONS DECREASE 3/31/97
---------- ----------
COMMON STOCKS
Cooper Industries, Inc. 600,000 shs. --
Electronic Data Systems
Corporation 450,000 --
Entergy Corporation 500,000 --
Federal-Mogul Corporation 500,000 --
Frontier Corporation 800,000 --
Genuine Parts Company 330,000 --
PanEnergy Corporation 450,000 --
Sonat Inc. 400,000 --
Sysco Corporation 500,000 --
CONVERTIBLE BONDS
MascoTech Inc.,
41/2%, 12/15/2003 $15,000,000 --
Largest portfolio changes are based on cost of purchases and proceeds from sales
of securities.
10 LARGEST HOLDINGS
At March 31, 1997
- --------------------------------------------------------------------------------
VALUE
-----
Bank of New York Company, Inc. $36,750,000
PepsiCo, Inc. 35,887,500
American International Group, Inc. 35,212,500
General Electric Company 34,737,500
AMP Inc. 34,375,000
Exxon Corporation 32,325,000
The Mead Corporation 31,800,000
General Re Corporation 31,600,000
General Signal Corporation 31,300,000
International Flavors & Fragrances Inc. 30,625,000
- --------------------------------------------------------------------------------
5
<PAGE>
TRI-CONTINENTAL CORPORATION
PORTFOLIO OF INVESTMENTS (unaudited)
Shares Value
------ -----
COMMON STOCKS - 91.5%
AEROSPACE - 2.7%
General Dynamics Corporation 200,000 $ 13,475,000
General Motors Corporation Class "H" 200,000 10,850,000
Lockheed Martin Corporation 125,000 10,500,000
Raytheon Company 500,000 22,562,500
United Technologies Corporation 300,000 22,575,000
-------------
$ 79,962,500
-------------
AUTOMOTIVE AND RELATED - 4.1%
Autoliv (ADRs) 70,000 $ 3,001,250
Borg-Warner Automotive, Inc. 402,300 17,148,037
Echlin Inc. 600,000 20,400,000
Ford Motor Company 800,000 25,100,000
Harley-Davidson Inc. 600,000 20,325,000
Magna International, Inc. Class "A" 455,000 22,579,375
Volkswagen AG (ADRs)* 100,000 11,052,550
-------------
$ 119,606,212
-------------
BASIC MATERIALS - 1.1%
Aluminum Company of America 200,000 $ 13,600,000
Reynolds Metals Company 300,000 18,600,000
-------------
$ 32,200,000
-------------
BUILDING AND
CONSTRUCTION - 0.6%
Sherwin-Williams Corporation 600,000 $ 16,200,000
-------------
CHEMICALS - 3.2%
Bayer AG 400,000 $ 16,781,712
Dow Chemical Company 250,000 20,000,000
Hercules, Inc. 500,000 21,125,000
Morton International, Inc. 300,000 12,675,000
Olin Corporation 600,000 23,850,000
-------------
$ 94,431,712
-------------
COMMUNICATIONS - 4.0%
Alcatel Alsthom Compagnie
Generale d'Electricite 65,000 $ 7,831,882
ALLTEL Corporation 500,000 16,250,000
GTE Corporation 600,000 27,975,000
QUALCOMM, Inc.* 325,000 18,342,188
Tele Danmark (ADSs) 415,000 10,841,875
Telebras (ADRs) 23,500 2,431,357
Telecom Italia-Di Risp 2,526,000 5,370,771
Telecom Italia Mobile-Di Risp 2,526,000 4,215,036
WorldCom, Inc.* 1,050,000 23,034,375
-------------
$ 116,292,484
-------------
COMPUTER AND
BUSINESS SERVICES - 5.6%
Automatic Data Processing, Inc. 350,000 $ 14,656,250
Compaq Computer Corporation* 250,000 19,156,250
Computer Associates International, Inc. 400,000 15,550,000
First Data Corporation 400,000 13,550,000
Hewlett-Packard Company 300,000 15,975,000
Ikon Office Solutions Inc. 400,000 13,400,000
Intel Corporation 200,000 27,812,500
Microsoft Corporation* 300,000 27,506,250
Sun Microsystems, Inc.* 500,000 14,406,250
-------------
$ 162,012,500
-------------
CONSUMER GOODS
AND SERVICES - 10.1%
Adidas AG 165,960 $ 18,646,634
Allied Domecq plc 870,000 6,555,002
B.A.T. Industries plc 1,440,000 12,256,096
Colgate-Palmolive Company 300,000 29,887,500
CPC International Inc. 250,000 20,500,000
Eastman Kodak Company 300,000 22,762,500
General Mills, Inc. 200,000 12,425,000
International Flavors & Fragrances Inc. 700,000 30,625,000
Liz Claiborne, Inc. 400,000 17,450,000
McDonald's Corporation 500,000 23,625,000
PepsiCo, Inc. 1,100,000 35,887,500
Procter & Gamble Company 200,000 23,000,000
RJR Nabisco Holdings Corporation 500,000 16,125,000
Sara Lee Corporation 600,000 24,300,000
-------------
$ 294,045,232
-------------
DIVERSIFIED - 2.8%
AlliedSignal Inc. 300,000 $ 21,375,000
Corning, Inc. 350,000 15,531,250
Minnesota Mining &
Manufacturing Company 300,000 25,350,000
Tenneco, Inc. 500,000 19,500,000
-------------
$ 81,756,250
-------------
DRUGS AND HEALTH CARE - 6.9%
Abbott Laboratories 300,000 $ 16,837,500
American Home Products Corporation 500,000 30,000,000
Baxter International Inc. 500,000 21,562,500
Bristol-Myers Squibb Company 350,000 20,650,000
Guidant Corporation 275,000 16,912,500
Medtronic, Inc. 225,000 14,006,250
Merck & Co., Inc. 300,000 25,275,000
Novartis AG* 6,800 8,404,706
Pharmacia & Upjohn, Inc. 250,000 9,156,250
Schering-Plough Corporation 200,000 14,550,000
Warner-Lambert Company 250,000 21,625,000
-------------
$ 198,979,706
-------------
ELECTRIC AND
GAS UTILITIES - 4.6%
Baltimore Gas & Electric Company 400,000 $ 10,700,000
British Gas plc (ADRs) 115,000 2,990,000
- -------------------------
See footnotes on page 8.
6
<PAGE>
TRI-CONTINENTAL CORPORATION
PORTFOLIO OF INVESTMENTS (unaudited)(continued) March 31, 1997
Shares Value
------ -----
ELECTRIC AND
GAS UTILITIES (continued)
Centrica plc* 1,150,000 $ 1,198,705
Dominion Resources, Inc. 500,000 18,187,500
Edison International 1,000,000 22,500,000
Empresa Nacional de
Electricidad (ADRs) 132,000 8,563,500
Hong Kong & China Gas
Company Ltd. 4,800,000 9,013,125
Hong Kong & China Gas
Company Ltd. (Warrants)* 400,000 180,675
Huaneng Power International,
Inc. (ADRs)* 270,000 6,041,250
PacifiCorp 1,000,000 21,375,000
VEBA AG 230,000 13,168,385
The Williams Companies, Inc. 450,000 20,025,000
-------------
$ 133,943,140
-------------
ELECTRONICS - 5.7%
AMP Inc. 1,000,000 $ 34,375,000
Arrow Electronics, Inc. 400,000 22,550,000
Kemet Corporation* 1,100,000 20,831,250
Motorola Inc. 400,000 24,150,000
Novellus Systems, Inc.* 200,000 13,775,000
Philips Electronics N.V. 175,000 7,787,500
Synopsys, Inc.* 250,000 6,265,625
Thomas & Betts Corporation 300,000 12,825,000
Vishay Intertechnology, Inc.* 1,000,000 22,125,000
-------------
$ 164,684,375
-------------
ENERGY - 5.2%
Amoco Corporation 275,000 $ 23,821,875
Atlantic Richfield Company 125,000 16,875,000
Baker Hughes Incorporated 300,000 11,512,500
Enron Corporation 600,000 22,800,000
Exxon Corporation 300,000 32,325,000
Schlumberger Ltd. 100,000 10,725,000
Texaco Inc. 250,000 27,375,000
Total S.A. Class "B" 76,983 6,661,280
-------------
$ 152,095,655
-------------
ENTERTAINMENT AND
LEISURE - 1.1%
Disney (Walt) Company 250,000 $ 18,250,000
News Corp. Ltd. (ADRs) 260,000 4,680,000
News Corp. Ltd. (ADRs-- Voting
Preference Shares) 130,000 1,933,750
Television Broadcast Ltd. 1,900,000 7,723,876
-------------
$ 32,587,626
-------------
ENVIRONMENTAL
MANAGEMENT - 0.6%
Browning-Ferris Industries, Inc. 600,000 $ 17,325,000
-------------
FINANCE AND INSURANCE - 14.2%
ABN-AMRO Holding N.V. 127,717 $ 8,768,691
ACE Limited 300,000 19,200,000
American International Group, Inc. 300,000 35,212,500
AXA-UAP 166,509 11,016,759
BankAmerica Corporation 250,000 25,187,500
Bank of New York Company, Inc. 1,000,000 36,750,000
CIGNA Corporation 150,000 21,918,750
Citicorp 200,000 21,650,000
Federal National Mortgage Association 600,000 21,675,000
General Re Corporation 200,000 31,600,000
Great Western Financial Corporation 400,000 16,150,000
Grupo Financiero Banamex Accival,
S.A. Class "B" 2,176,000 5,009,259
Household International, Inc. 200,000 17,225,000
HSBC Holdings plc 350,000 8,130,396
ING Groep N.V. 431,093 16,955,545
Irish Life plc 1,200,000 6,234,417
ITT Hartford Group, Inc. 300,000 21,637,500
Mellon Bank Corporation 400,000 29,100,000
St. Paul Companies 400,000 25,950,000
Travelers Incorporated 500,000 23,937,500
Zurich Versicherungsgesellschaft 30,000 9,404,844
-------------
$ 412,713,661
-------------
MANUFACTURING AND
INDUSTRIAL EQUIPMENT - 6.5%
BTR plc 1,300,000 $ 5,686,977
Emerson Electric Co. 500,000 22,500,000
GATX Corporation 350,000 17,106,250
General Electric Company 350,000 34,737,500
General Signal Corporation 800,000 31,300,000
Illinois Tool Works, Inc. 200,000 16,325,000
Ingersoll-Rand Company 500,000 21,812,500
Mannesmann 22,500 8,572,389
Pacific Dunlop Ltd. 1,500,000 4,027,306
Parker-Hannifin Corporation 625,000 26,718,750
-------------
$ 188,786,672
-------------
PAPER AND FOREST
PRODUCTS - 4.5%
International Paper Company 600,000 $ 23,325,000
James River Corporation of Virginia 800,000 23,300,000
Kimberly-Clark Corporation 200,000 19,875,000
The Mead Corporation 600,000 31,800,000
Stora Kopparbergs Class "B" 550,000 7,746,735
Union Camp Corporation 500,000 23,562,500
-------------
$ 129,609,235
-------------
PUBLISHING - 1.4%
Elsevier 650,000 $ 10,551,386
Gannet Co., Inc. 200,000 17,175,000
Tribune Co. 300,000 12,150,000
-------------
$ 39,876,386
-------------
- --------------------
See footnotes on page 8.
7
<PAGE>
TRI-CONTINENTAL CORPORATION
PORTFOLIO OF INVESTMENTS (unaudited)(continued) March 31, 1997
Shares or
Prin. Amt. Value
---------- -----
REAL ESTATE INVESTMENT
TRUSTS - 1.1%
Security Capital Industrial Trust 400,000shs. $ 8,350,000
Security Capital Pacific Trust 400,000 9,750,000
Security Capital US Realty Trust 1,000,000 14,000,000
--------------
$ 32,100,000
--------------
RETAIL TRADE - 3.4%
May Department Stores Company 400,000 $ 18,200,000
OfficeMax, Inc. 500,000 6,500,000
The Pep Boys-- Manny, Moe and Jack 800,000 24,000,000
Tesco plc 1,478,000 8,479,349
Wal-Mart Stores, Inc. 650,000 18,118,750
Woolworth Corporation* 1,000,000 23,375,000
--------------
$ 98,673,099
--------------
STEEL - 0.8%
Allegheny Teledyne Inc. 800,000 $ 22,500,000
--------------
TRANSPORTATION - 1.3%
Burlington Northern Santa Fe
Corporation 250,000 $ 18,500,000
Jurong Shipyard Ltd. 425,000 1,927,137
Norfolk Southern Corporation 200,000 17,050,000
--------------
$ 37,477,137
--------------
TOTAL COMMON STOCKS
(Cost: $2,032,993,052) $2,657,858,582
--------------
CONVERTIBLE ISSUES - 2.7%
CONVERTIBLE DEBENTURES - 0.4%
FINANCE AND INSURANCE - 0.2%
LibLife International,
6 1/2%, 9/30/2004 $3,500,000 $ 4,313,750
--------------
MANUFACTURING AND
INDUSTRIAL EQUIPMENT - 0.1%
Teco Electrical and Machinery,
2 3/4%, 4/15/2004 3,000,000 $ 2,460,000
--------------
TRANSPORTATION - 0.1%
Nippon Yusen, 2%, 9/29/2000 505,000,000** $ 4,284,230
--------------
Total Convertible Debentures
(Cost: $12,340,296) $ 11,057,980
--------------
CONVERTIBLE PREFERRED STOCKS - 2.3%
DIVERSIFIED - 0.6%
Corning Inc. (Delaware), 6% 250,000shs. $ 17,718,750
--------------
RETAIL TRADE - 0.9%
Kmart Financing, 7 3/4% 500,000shs. $ 26,750,000
--------------
STEEL - 0.8%
AK Steel Holdings Corporation, 7% 700,000 $ 22,662,500
--------------
Total Convertible Preferred Stocks
(Cost $61,165,397) $ 67,131,250
--------------
TOTAL CONVERTIBLE ISSUES
(Cost: $73,505,693) $ 78,189,230
--------------
TRI-CONTINENTAL FINANCIAL
DIVISION+ - 0.6%
(Cost: $15,864,077) $ 17,022,545
--------------
SHORT-TERM HOLDINGS - 5.1%
Canadian Imperial Bank of Commerce,
Grand Cayman,
Fixed Time Deposit,
6 5/8%, 4/1/1997 $74,000,000 $ 74,000,000
First National Bank of Chicago,
Grand Cayman,
Fixed Time Deposit,
6 5/8%, 4/1/1997 73,000,000 73,000,000
--------------
TOTAL SHORT-TERM HOLDINGS
(Cost: $147,000,000) $ 147,000,000
--------------
TOTAL INVESTMENTS - 99.9%
(Cost: $2,269,362,822) $2,900,070,357
OTHER ASSETS LESS
LIABILITIES - 0.1% 3,506,438
--------------
NET INVESTMENT ASSETS - 100.0% $2,903,576,795
==============
- --------------------
* Non-income producing security.
** Principal amount reported in Japanese Yen.
+ Restricted security.
Note: Investments in stocks, bonds, limited partnership interests, and
short-term holdings maturing in more than 60 days are valued at current market
values or, in their absence, at fair values determined in accordance with
procedures approved by the Board of Directors. Securities traded on national
exchanges are valued at last sales prices or, in their absence and in the case
of over-the-counter securities, at a mean of bid and asked prices. Short-term
holdings maturing in 60 days or less are valued at amortized cost.
8
<PAGE>
TRI-CONTINENTAL CORPORATION
For information about your Corporation, call or write Corporate Communications,
J.&W. Seligman & Co. Incorporated, 100 ParkAvenue, New York, NY10017. If you
want information about your investment account, call or write Stockholder
Services,Seligman Data Corp., at the same address.
- --------------------------------------------------------------------------------
IMPORTANT TELEPHONE NUMBERS
<TABLE>
<S> <C> <C>
STOCKHOLDER RETIREMENT PLAN 24-HOUR AUTOMATED
SERVICES SERVICES TELEPHONE ACCESS SERVICE
(800) TRI-1092 (800) 445-1777 (800) 622-4597
(8:30 a.m. to 6:00 p.m. EST) (8:30 a.m. to 6:00 p.m. EST)
- --------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
Tri-Continental Corporation invests primarily to produce long-term growth of
both capital and income, while providing reasonable current income.
Tri-Continental Corporation
Managed by
SWS
J. & W. SELIGMAN & CO.
INCORPORATED
Investment Managers and Advisors
ESTABLISHED 1864
100 Park Avenue, New York, NY 10017
This report is intended only for the information of stockholders or those who
have received the current prospectus covering shares of Common Stock of
Tri-Continental Corporation, which contains information about management fees
and other costs.
CETRI3a 3/97
- --------------------------------------------------------------------------------
First Quarter Report 1997
TRI-CONTINENTAL
CORPORATION
an investment you can live with
- --------------------------------------------------------------------------------
