-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MP87fONk84MyZPRCxeLb2+dpFpeaUKCRVMP3/XGxH5v6oq3lgiTI8Er/ORqEK8yj nFSlfI6uMVwZmTSmd432Wg== 0000891092-01-500445.txt : 20010730 0000891092-01-500445.hdr.sgml : 20010730 ACCESSION NUMBER: 0000891092-01-500445 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010630 FILED AS OF DATE: 20010727 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTRAL SECURITIES CORP CENTRAL INDEX KEY: 0000018748 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 131875970 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-00179 FILM NUMBER: 1690556 BUSINESS ADDRESS: STREET 1: 375 PARK AVE CITY: NEW YORK STATE: NY ZIP: 10152 BUSINESS PHONE: 2126883011 MAIL ADDRESS: STREET 1: 375 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10152 FORMER COMPANY: FORMER CONFORMED NAME: TRANS CENTRAL SECURITIES CORP DATE OF NAME CHANGE: 19700722 FORMER COMPANY: FORMER CONFORMED NAME: BUERGER LADET & RADINSKY INC DATE OF NAME CHANGE: 19671026 N-30D 1 file001.txt FORM N-30D ================================================================================ CENTRAL SECURITIES CORPORATION ---------- SEMI-ANNUAL REPORT JUNE 30, 2001 ================================================================================ CENTRAL SECURITIES CORPORATION (Organized on October 1, 1929 as an investment company, registered as such with the Securities and Exchange Commission under the provisions of the Investment Company Act of 1940.) TEN YEAR HISTORICAL DATA
Per Share of Common Stock ------------------------------- Distribu- Convertible Divi- tions(B) Preference dends(B) from Total Stock at Net Net from net long-term Net realized Unrealized net liquidation asset investment investment investment investment appreciation Year assets preference value income(A) income gains gains of investments - ---- ------ ----------- ----- ---------- ---------- ---------- ------------ -------------- 1990 $111,152,013 $10,027,050 $10.00 $25,940,819 1991 131,639,511 10,022,100 11.87 $ .14 $.14 $ .56* $7,321,233 43,465,583 1992 165,599,864 10,019,000 14.33 .12 .20 .66 8,304,369 70,586,429 1993 218,868,360 9,960,900 17.90 .14 .18 1.42 16,407,909 111,304,454 1994 226,639,144 9,687,575 17.60 .23 .22 1.39 16,339,601 109,278,788 1995 292,547,559 9,488,350 21.74 .31 .33 1.60 20,112,563 162,016,798 1996 356,685,785 9,102,050 25.64 .27 .28 1.37 18,154,136 214,721,981 1997 434,423,053 9,040,850 29.97 .24 .34 2.08 30,133,125 273,760,444 1998 476,463,575 8,986,125 31.43 .29 .29 1.65 22,908,091 301,750,135 1999 590,655,679 -- 35.05 .26 .26 2.34 43,205,449 394,282,360 2000 596,289,086 -- 32.94 .32 .32 4.03 65,921,671 363,263,634 6 mos. to June 30, 586,994,701 -- 32.49 .13 .05 .30 8,771,659 350,273,991 2001**
- ---------- A - Excluding gains or losses realized on sale of investments and the dividend requirement on the Convertible Preference Stock, which was redeemed on August 1, 1999. B - Computed on the basis of the Corporation's status as a "regulated investment company" for Federal income tax purposes. * Includes a non-taxable return of capital of $.11. ** Unaudited. The Common Stock is listed on the American Stock Exchange. On June 29, 2001 (the last trading day of the six-month period), the market quotations were as follows: Common Stock .................................... $29.40 low, $29.55 high and last sale [2] To the Stockholders of CENTRAL SECURITIES CORPORATION: Financial statements for the six months ended June 30, 2001 reviewed by our independent accountants and other pertinent information are submitted herewith. Comparative net assets are as follows: June 30, 2001 December 31, (Unaudited) 2000 ----------- ------------ Net assets ....................................... $586,994,701 $596,289,086 Net assets per share of Common Stock ............. 32.49 32.94 Shares of Common Stock outstanding ............. 18,065,546 18,103,346 Comparative operating results are as follows: Six months ended June 30, ---------------------------- 2001 2000 (Unaudited) (Unaudited) ----------- ----------- Net investment income ............................ $ 2,267,409 $ 2,997,695 Per share of Common Stock .................... .13* .18* Net realized gain on sale of investments ......... 8,771,659 49,004,346 Increase (decrease) in net unrealized appreciation of investments .................... (12,989,643) 37,079,236 Increase (decrease) in net assets resulting from operations ................................ (1,950,575) 89,081,277 - ---------- * Per-share data are based on the average number of Common shares outstanding. A dividend of $.35 per share was paid on June 22, 2001 to holders of Common Stock. Stockholders will be sent a notice concerning the taxability of all 2001 distributions in January 2002. During the first six months of 2001 the Corporation repurchased 37,800 shares of its Common Stock at an average price per share of $27.01. These shares were purchased on the American Stock Exchange. The Corporation may from time to time purchase Common Stock in such amounts and at such prices as the Board of Directors may deem advisable in the best interests of stockholders. Stockholders' inquiries are welcome. CENTRAL SECURITIES CORPORATION WILMOT H. KIDD, President 375 Park Avenue New York, NY 10152 July 25, 2001 [3] TEN LARGEST INVESTMENTS June 30, 2001 (Unaudited)
% of Year First Cost Value Net Assets Acquired ----- ----- ---------- ---------- (millions) The Plymouth Rock Company, Inc. ..................... $2.2 $44.0 7.5% 1982 Intel Corporation ................................... .6 38.0 6.5 1986 Flextronics International Ltd. ...................... 4.9 37.9 6.4 1996 Capital One Financial Corporation ................... 3.0 36.1 6.1 1994 American Management Systems, Inc. ................... 20.8 35.4 6.0 1984 Analog Devices, Inc. ................................ .9 31.6 5.4 1989 Unisys Corporation .................................. 35.4 29.4 5.0 1999 The Bank of New York Company, Inc. .................. 4.0 28.8 4.9 1993 Household International, Inc. ....................... 3.0 26.7 4.5 1992 Murphy Oil Corporation .............................. 9.1 22.1 3.8 1976
PRINCIPAL PORTFOLIO CHANGES April 1 to June 30, 2001 (Unaudited) (Common Stock unless specified otherwise)
Number of Shares ---------------------------------------- Held June 30, Purchased Sold 2001 --------- ---- ---- American Power Conversion Corp. ..................... 200,000 -- Church & Dwight Co., Inc. ........................... 260,000 190,000 Genuity Inc. ........................................ 300,000 3,600,000 Impath Inc. ......................................... 8,500 350,000 Motorola, Inc. ...................................... 30,000 430,000 Mutual Risk Management Ltd. ......................... 240,000 -- PartnerRe Ltd. ...................................... 8,200 91,800 Schlumberger Ltd. ................................... 100,000 -- SunGard Data Systems Inc. ........................... 300,000* 600,000 UniFirst Corporation ................................ 20,000 150,000 Unisys Corporation .................................. 145,000 2,000,000 UnumProvident Corporation ........................... 200,000 -- Washington Group International, Inc. ................ 700,000 --
- ---------- * Stock split. [4] STATEMENT OF ASSETS AND LIABILITIES June 30, 2001 (Unaudited)
ASSETS: Investments: General portfolio securities at market value (cost $188,736,521) (Note 1) ............................... $495,016,889 Securities of affiliated companies (cost $3,462,486) (Notes 1, 5 and 6) ......................................... 47,456,109 Short-term investments (cost $44,527,765) .................... 44,527,765 $587,000,763 ------------ Cash, receivables and other assets: Cash ......................................................... 3,447 Dividends receivable ......................................... 110,825 Prepaid expenses ............................................. 41,195 Other assets ................................................. 23,386 178,853 ------------ ------------ Total Assets ............................................. 587,179,616 LIABILITIES: Accrued expenses and reserves .................................... 184,915 ------------ Total Liabilities ........................................ 184,915 ------------ NET ASSETS ........................................................... $586,994,701 ============ NET ASSETS are represented by: Common Stock at par value, $1.00 per share, authorized 30,000,000 shares; issued 18,329,242 (Note 2) .................. $18,329,242 Surplus: Paid-in ...................................................... $215,043,933 Undistributed net gain on sales of investments ............... 8,745,070 Undistributed net investment income .......................... 1,558,601 225,347,604 ------------ Net unrealized appreciation of investments ....................... 350,273,991 Treasury stock, at cost (263,696 shares of Common Stock) (Note 2) ....................................................... (6,956,136) ------------ NET ASSETS ........................................................... $586,994,701 ============ NET ASSET VALUE PER COMMON SHARE ..................................... $32.49 ======
See accompanying notes to financial statements and independent accountants' review report. [5] STATEMENT OF OPERATIONS For the six months ended June 30, 2001 (Unaudited)
INVESTMENT INCOME Income: Dividends ........................................................ $ 2,376,055 Interest ......................................................... 945,788 $3,321,843 ----------- Expenses: Administration and operations .................................... 264,625 Investment research .............................................. 213,750 Legal, auditing and tax fees ..................................... 95,509 Rent and utilities ............................................... 85,668 Franchise and miscellaneous taxes ................................ 77,490 Directors' fees .................................................. 57,000 Listing, software and sundry fees ................................ 53,428 Insurance ........................................................ 52,952 Stationery, supplies, printing and postage ....................... 31,819 Transfer agent and registrar fees and expenses ................... 21,497 Publications ..................................................... 21,042 Travel and telephone ............................................. 19,558 Custodian fees ................................................... 17,061 Employees' retirement plans ...................................... 7,600 Miscellaneous .................................................... 35,435 1,054,434 ----------- ---------- Net investment income ................................................ 2,267,409 NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain from security transactions ......................... 8,771,659 Net decrease in unrealized appreciation of investments ............... (12,989,643) ----------- Net loss on investments .......................................... (4,217,984) ---------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ......................................................... ($1,950,575) ==========
See accompanying notes to financial statements and independent accountants' review report. [6] STATEMENTS OF CHANGES IN NET ASSETS For the six months ended June 30, 2001 and the year ended December 31, 2000
Six months ended June 30, Year ended 2001 December 31, (Unaudited) 2000 --------- ---- FROM OPERATIONS: Net investment income ............................................ $ 2,267,409 $ 5,399,641 Net realized gain on investments ................................. 8,771,659 65,921,671 Net decrease in unrealized appreciation of investments ............................................. (12,989,643) (31,018,726) ------------ ------------ Increase (decrease) in net assets resulting from operations ............................................ (1,950,575) 40,302,586 ------------ ------------ DISTRIBUTIONS TO STOCKHOLDERS FROM: Net investment income ............................................ (815,866) (5,402,497) Net realized gain from investment transactions ................... (5,507,076) (67,869,760) ------------ ------------ Decrease in net assets from distributions .................... (6,322,942) (73,272,257) ------------ ------------ FROM CAPITAL SHARE TRANSACTIONS: (Note 2) Distribution to stockholders reinvested in Common Stock .......... -- 39,089,789 Cost of shares of Common Stock repurchased ....................... (1,020,868) (486,711) ------------ ------------ Increase (decrease) in net assets from capital share transactions ......................................... (1,020,868) 38,603,078 ------------ ------------ Total increase (decrease) in net assets .................. (9,294,385) 5,633,407 NET ASSETS: Beginning of period .............................................. 596,289,086 590,655,679 ------------ ------------ End of period (including undistributed net investment income of $1,558,601 and $107,057, respectively) ...................... $586,994,701 $596,289,086 ============ ============
See accompanying notes to financial statements and independent accountants' review report. [7] STATEMENT OF INVESTMENTS June 30, 2001 (Unaudited) PORTFOLIO SECURITIES (92.4%) STOCKS (COMMON UNLESS SPECIFIED OTHERWISE)
Prin. Amt. or Shares Value ---------- ----- Banking and Finance 17.4% 600,000 The Bank of New York Company, Inc. ...... $ 28,800,000 600,000 Capital One Financial Corporation ....... 36,090,000 300,000 First Union Corporation ................. 10,482,000 400,000 Household International, Inc. ........... 26,680,000 ------------ 102,052,000 ------------ Business Services 1.2% 160,000 ProBusiness Services, Inc.(a) ........... 4,248,000 150,000 UniFirst Corporation .................... 2,850,000 ------------ 7,098,000 ------------ Chemicals 4.5% 1,600,000 PolyOne Corporation ..................... 16,656,000 300,000 Rohm and Haas Company ................... 9,870,000 ------------ 26,526,000 ------------ Computer Software & Services 17.7% 1,500,000 American Management Systems, Incorporated (a) ....................... 35,400,000 680,000 Convergys Corporation(a) ................ 20,570,000 395,000 Peerless Systems Corporation(a) ......... 730,750 600,000 SunGard Data Systems Inc.(a) ............ 18,006,000 2,000,000 Unisys Corporation(a) ................... 29,420,000 ------------ 104,126,750 ------------ Data Processing 1.9% 500,000 The Reynolds and Reynolds Company Class A ....................... 10,975,000 ------------ Electronics 22.2% 730,000 Analog Devices, Inc.(a) ................. 31,572,500 450,000 Arrow Electronics, Inc.(a) .............. 10,930,500 200,000 Cabletron Systems, Inc.(a) .............. 4,570,000 1,450,000 Flextronics International Ltd.(a) ....... 37,859,500 1,300,000 Intel Corporation ....................... 38,025,000 430,000 Motorola, Inc. .......................... 7,120,800 ------------ 130,078,300 ------------ Energy 3.8% 300,000 Murphy Oil Corporation .................. 22,080,000 ------------
[8]
Prin. Amt. or Shares Value ---------- ----- Health Care 2.6% 350,000 Impath Inc.(a) .......................... $ 15,505,000 ------------ Household Products 0.8% 190,000 Church & Dwight Co., Inc. ............... 4,835,500 ------------ Insurance 8.3% 91,800 PartnerRe Ltd ........................... 5,085,720 70,000 The Plymouth Rock Company, Inc. Class A(b)(c) ......................... 43,960,000 ------------ 49,045,720 ------------ Manufacturing 4.9% 510,000 ArvinMeritor, Inc. ...................... 8,537,400 560,400 Brady Corporation Class A ............... 20,247,253 ------------ 28,784,653 ------------ Telecommunications 6.4% 900,000 Broadwing Inc.(a) ....................... 22,005,000 3,600,000 Genuity Inc.(a) ......................... 11,232,000 240,000 Nextel Communications, Inc. Class A(a) .. 4,200,000 ------------ 37,437,000 ------------ Transportation 0.6% 533,757 Transport Corporation of America, Inc. Class B(a)(b) ......................... 3,496,108 ------------ Miscellaneous 0.1% Grumman Hill Investments, L.P.(a)(c) .... 432,967 ------------ Total Portfolio Securities (cost $192,199,007) ................. 542,472,998 ------------
[9]
Prin. Amt. or Shares Value ---------- ----- SHORT-TERM DEBT INVESTMENTS 7.6% $35,018,000 American Express Credit Corp. 3.543%-3.867% due 7/5/01-8/8/01 ...... $ 34,951,571 3,913,000 Ford Motor Credit Corp. 3.562% due 8/1/01 ........................... 3,901,207 5,685,000 General Electric Capital Corp. 3.795%-3.796% due 7/18/01 ............ 5,674,987 ------------ Total Short-Term Investments (cost $44,527,765) .............. 44,527,765 ------------ Total Investments (cost $236,726,772) (100.0%) .... 587,000,763 Liabilities, less cash, receivables and other assets (0.0%) ................... (6,062) ------------ Net Assets (100%) ................. $586,994,701 ============
- ---------- (a) Non-dividend paying. (b) Affiliate as defined in the Investment Company Act of 1940. (c) Valued at estimated fair value. See accompanying notes to financial statements. [10] NOTES TO FINANCIAL STATEMENTS -- (unaudited) 1. Significant Accounting Policies -- The Corporation is registered under the Investment Company Act of 1940, as amended, as a non-diversified, closed-end management investment company. The following is a summary of the significant accounting policies consistently followed by the Corporation in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America. Security Valuation -- Securities are valued at the last sale price or, if unavailable, at the closing bid price. Corporate discount notes are valued at amortized cost, which approximates market value. Securities for which no ready market exists, including The Plymouth Rock Company, Inc. Class A Common Stock, are valued at estimated fair value by the Board of Directors. Federal Income Taxes -- It is the Corporation's policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to its stockholders. Therefore, no Federal income taxes have been accrued. Useof Estimates -- The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates. Other -- Security transactions are accounted for on the date the securities are purchased or sold, and cost of securities sold is determined by specific identification. Dividend income and distributions to stockholders are recorded on the ex-dividend date. 2. Common Stock -- The Corporation repurchased 37,800 shares of its Common Stock in the first six months of 2001 at an average price of $27.01 per share representing an average discount from net asset value of 8.6%. It may from time to time purchase Common Stock in such amounts and at such prices as the Board of Directors may deem advisable in the best interests of the stockholders. Purchases will only be made at less than net asset value per share, thereby increasing the net asset value of shares held by the remaining stockholders. Shares so acquired may be held as treasury stock, available for optional stock distributions, or may be retired. 3. Investment Transactions -- The aggregate cost of securities purchased and the aggregate proceeds of securities sold during the six months ended June 30, 2001, excluding short-term investments, were $30,544,428 and $39,113,273, respectively. As of June 30, 2001, based on cost for Federal income tax purposes, the aggregate gross unrealized appreciation and depreciation for all securities were $359,283,158 and $9,009,167, respectively. 4. Operating Expenses -- The aggregate remuneration paid during the six months ended June 30, 2001 to officers and directors amounted to $477,000, of which $57,000 was paid as fees to directors who were not officers. Benefits to employees are provided through a profit sharing retirement plan. Contributions to the plan are made at the discretion of the Board of Directors, and each participant's benefits vest after three years. No contributions were made to the plan for the six months ended June 30, 2001. [11] NOTES TO FINANCIAL STATEMENTS -- continued (unaudited) 5. Affiliates -- The Plymouth Rock Company, Inc. and Transport Corporation of America, Inc. are affiliates as defined in the Investment Company Act of 1940. The Corporation received dividends of $445,200 from affiliates during the six months ended June 30, 2001. Unrealized appreciation related to affiliates increased by $4,660,921 for the six months ended June 30, 2001 to $43,993,622. 6. Restricted Securities -- The Corporation from time to time invests in securities the resale of which is restricted. On June 30, 2001 such investments had an aggregate value of $45,378,326, which was equal to 7.7% of the Corporation's net assets. Investments in restricted securities at June 30, 2001, including acquisition dates and cost, were:
Company Shares Security Date Purchased Cost - ------------------------------ ---------- ------------------- -------------- ---------- Broadwing Inc. 40,301 Common Stock 11/24/99 $ 3 Grumman Hill Investments, L.P. Limited Partnership 9/11/85 33,428 Interest The Plymouth Rock 70,000 Class A Common 12/15/82 1,500,000 Company, Inc. Stock 6/9/84 699,986
In general, the Corporation does not have the right to demand registration of the restricted securities. Unrealized appreciation related to restricted securities increased by $3,566,397 for the six months ended June 30, 2001 to $43,144,909. [12] FINANCIAL HIGHLIGHTS
Six Mos. Ended June 30, 2001 (Unaudited) 2000 1999 1998 1997 1996 ---------- ---- ---- ---- ---- ----- Per Share Operating Performance Net asset value, beginning of period ........ $ 32.94 $ 35.05 $ 31.43 $ 29.97 $ 25.64 $ 21.74 Net investment income ....................... .13 .32 .30 .34 .29 .33 Net realized and unrealized gain (loss) on securities ............................. (.23) 1.92 5.96 3.11 6.51 5.28 -------- -------- -------- -------- -------- -------- Total from investment operations .......................... (.10) 2.24 6.26 3.45 6.80 5.61 Less: Dividends from net investment income* To Preference Stockholders .............. -- -- .04 .05 .05 .06 To Common Stockholders .................. .05 .32 .26 .29 .34 .28 Distributions from capital gains* To Common Stockholders .................. .30 4.03 2.34 1.65 2.08 1.37 -------- -------- -------- -------- -------- -------- Total distributions ................... .35 4.35 2.64 1.99 2.47 1.71 -------- -------- -------- -------- -------- -------- Net asset value, end of period .............. $ 32.49 $ 32.94 $ 35.05 $ 31.43 $ 29.97 $ 25.64 ======== ======== ======== ======== ======== ======== Per share market value, end of period ............................. $ 29.55 $ 28.25 $ 27.25 $ 24.38 $ 29.69 $ 24.13 Total investment return, market(%) ................................. 6.81+ 17.75 22.96 (11.57) 35.60 22.35 Total investment return, NAV(%) ............. (0.25)+ 7.02 31.79 13.75 26.08 25.97 Ratios/Supplemental Data: Net assets, end of period(000) .............. $586,995 $596,289 $590,656 $476,464 $434,423 $356,686 Ratio of expenses to average net assets for Common(%) ...................... .36++ .38 .45 .51 .54 .57 Ratio of net investment income to average net assets for Common(%) ................................. .77++ .83 .89 1.09 .99 1.36 Portfolio turnover rate(%) .................. 5.58+ 13.54 12.06 6.21 10.92 9.89
- ---------- * Computed on the basis of the Corporation's status as a "regulated investment company" for Federal income tax purposes. + Not annualized. ++ Annualized, not necessarily indicative of full year ratio. See accompanying notes to financial statements and independent accountants' review report. [13] - -------------------------------------------------------------------------------- INDEPENDENT ACCOUNTANTS' REVIEW REPORT TO THE BOARD OF DIRECTORS AND STOCKHOLDERS OF CENTRAL SECURITIES CORPORATION We have reviewed the accompanying statement of assets and liabilities, including the statement of investments, of Central Securities Corporation as of June 30, 2001, and the related statements of operations, changes in net assets and financial highlights for the six-month period ended June 30, 2001. These financial statements are the representation of the management of Central Securities Corporation. We have conducted our review in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America. We have previously audited, in accordance with auditing standards generally accepted in the United States of America, the statement of changes in net assets for the year ended December 31, 2000, and financial highlights for each of the five years in the period ended December 31, 2000, and in our report dated January 24, 2001 we expressed an unqualified opinion on such statement of changes in net assets and financial highlights. KPMG LLP New York, NY July 25, 2001 - -------------------------------------------------------------------------------- ANNUAL MEETING OF STOCKHOLDERS -- (unaudited) The annual meeting of stockholders of the Corporation was held on March 14, 2001. At the meeting all of the directors of the Corporation were reelected by the following vote of the holders of the Common Stock: Donald G. Calder, 15,765,228 shares in favor, 55,432 shares withheld; Jay R. Inglis, 15,755,889 shares in favor, 64,771 shares withheld; Dudley D. Johnson, 15,770,524 shares in favor, 50,136 shares withheld; Wilmot H. Kidd, 15,769,891 shares in favor, 50,819 shares withheld; and C. Carter Walker, Jr., 15,768,374 shares in favor, 52,286 shares withheld. In addition, the selection of KPMG LLP as independent auditors of the Corporation for the year 2001 was ratified by the following vote of the holders of the Common Stock: 15,732,336 shares in favor, 35,878 shares against, 52,446 shares abstaining. [14] BOARD OF DIRECTORS DONALD G. CALDER DUDLEY D. JOHNSON President President G. L. Ohrstrom & Co., Inc. Young & Franklin Inc. New York, NY Liverpool, NY JAY R. INGLIS WILMOT H. KIDD Executive Vice President President National Marine Underwriters, Inc. New York, NY C. CARTER WALKER, JR. Washington, CT OFFICERS WILMOT H. KIDD, President CHARLES N. EDGERTON, Vice President and Treasurer MARLENE A. KRUMHOLZ, Secretary OFFICE 375 Park Avenue, New York, NY 10152 212-688-3011 www.centralsecurities.com CUSTODIAN UMB Bank, N. A. P.O. Box 419226, Kansas City, MO 64141-6226 TRANSFER AGENT AND REGISTRAR EquiServe, First Chicago Trust Division P.O. Box 2500, Jersey City, NJ 07303-2500 INDEPENDENT AUDITORS KPMG LLP 757 Third Avenue, New York, NY 10017 [15] -----END PRIVACY-ENHANCED MESSAGE-----