Tri-Continental Corporation
To the Stockholders:
During the three months ended September 30, 2002, the stock market
experienced its worst quarter since 1987. In this difficult environment,
Tri-Continental Corporation suffered along with the overall market, returning
-16.53% based on net asset value and -17.92% based on market price. During the
same time period, the Standard & Poor's 500 Composite Stock Index (S&P 500)
returned -17.28%, and the Lipper Closed-End Growth & Income Funds Average
returned -15.96%.
In the third quarter, investors were rattled by indications that this
year's economic recovery was losing steam. In addition, investors, already
shaken by disclosures of corporate malfeasance and improper financial
accounting, were facing signs that the manufacturing sector was again
contracting and that consumer spending might be faltering. Additionally, higher
oil prices and geopolitical uncertainty further dampened investors' spirits in
what proved to be a dismal quarter. On the positive side, third-quarter
corporate earnings generally improved on a year-over-year basis.
The Federal Reserve Board chose not to lower interest rates in the third
quarter, but on November 6 it reduced the federal funds rate to 1.25%, a cut of
50 basis points. The Fed hopes to stimulate growth by further lowering borrowing
costs. The rate cut could also provide a psychological boost to investors and
consumers. Consumer confidence has fallen to its lowest level in nine years, due
in part to the weak labor market and concerns over a possible war with Iraq.
Consumer sentiment is something the Fed will be watching closely, particularly
in advance of the holiday shopping season, since continued consumer spending is
crucial to the recovery.
Despite a discouraging third quarter, the economy is, in fact, expanding,
and we believe the recovery will continue, albeit at a slow pace. If economic
weakness persists, Congress, with midterm elections now behind them, could
realistically consider a fiscal stimulus.
The stock market has rallied in recent weeks on encouraging earnings news
from some companies, and we hope this is a trend that will continue. In our
view, investors' expectations for the economy and for corporate earnings have
become more realistic, and thus the stock market should begin to operate based
less on emotion and more on fundamentals.
Given this year's highly negative investment environment, Tri-Continental
will not have a December capital gain payout. Capital gains are realized by
selling stock at a profit, something that is difficult to achieve in a down
market. We realize this is a disappointment to many Stockholders, but we are
hopeful that the stock market has bottomed out, and that it will begin to
recover from this year's declines.
We thank you for your continued support of Tri-Continental Corporation and
look forward to serving your investment needs for many years to come. A
discussion with your Portfolio Managers, as well as the Corporation's
performance history and portfolio of investments, follows this letter.
By order of the Board of Directors,
/s/ William C. Morris
William C. Morris
Chairman
/s/ Brian T. Zino
Brian T. Zino
President
November 6, 2002
1
Tri-Continental Corporation
INTERVIEW WITH YOUR PORTFOLIO MANAGERS, BEN-AMI GRADWOHL AND DAVID GUY
How did Tri-Continental Corporation perform during the third quarter of 2002?
For the three months ended September 30, 2002, Tri-Continental posted a
total return of -16.53% based on net asset value and -17.92% based on market
price, compared to a -17.28% return for the Standard and Poor's 500 Composite
Stock Index (S&P 500) and a -15.96% return for the Lipper Closed-End Growth &
Income Funds Average.
What economic and market factors affected Tri-Continental's results during this
time?
The third quarter was extraordinarily negative for the stock market, which
was dragged down by signs of a weakening economic recovery, continued corporate
accounting worries, and heightened geopolitical uncertainty. Despite the fact
that interest rates are at a 40-year low, the hoped-for recovery in corporate
profits and capital spending has not materialized, and this also negatively
impacted investor sentiment toward equities. Investor fears of a double-dip
recession were fueled by a drop in manufacturing activity (after seven straight
months of growth), as well as by evidence that both consumer confidence and
spending had trended downward. While GDP growth in the second quarter was
revised up to a 1.3% annualized rate, and third-quarter growth came in at 3.1%,
it is clear that the economy's growth rate is slower now compared to its initial
growth spurt in the first quarter of 2002. A major reason the economy is
sluggish is that companies are being extremely cautious in their spending.
Normally, corporate spending on everything from information technology to
equipment is a major engine of economic growth, but with profits weak, even low
interest rates have not convinced many companies to make major financial
commitments while they remain unsure about demand for their products. Throughout
the recession and recovery, the economy has been largely propped up by the
consumer. Record-low interest rates have created a boom in mortgage
refinancings, which has put more money into consumers' hands, and consumers have
responded both by making purchases and by paying down debt. However, this bright
spot was overshadowed in the third quarter by the negative economic news and by
fears of a war with Iraq. The stock market was battered by this confluence of
bad news and uncertainty, posting some of its steepest losses in history.
What was your investment strategy?
Stocks from every economic sector were hit hard during the third quarter,
even the defensive and value stocks that had consistently outperformed growth
and technology stocks over the past two years. The decline in equity prices was
driven by emotion and a lack of investor faith in both the economy and the
integrity of the American corporation. Given the volatility and lack of upward
momentum in the market, Tri-Continental avoided major over- or underweightings
during the period. The portfolio's largest sector weightings were in capital
goods, consumer staples, and banks. With most sectors of the
--------------------------------------------------------------------------------
A TEAM APPROACH
Tri-Continental Corporation is managed by the Seligman Disciplined Investment
Group, headed by Ben-Ami Gradwohl and David Guy. They are assisted by a group of
seasoned professionals who are responsible for research and trading consistent
with Tri-Continental's investment objective. Group members include Bettina
Abrams, Jackson Chow, David Levy (trader), Michael McGarry, Hendra Soetjahja,
Jonathan Roth (trader), Brian Turner, and Nancy Wu.
--------------------------------------------------------------------------------
(CONTINUED ON PAGE 4)
2
Tri-Continental Corporation
--------------------------------------------------------------------------------
Investment Results Per Common Share (unaudited)
Total Returns
FOR PERIODS ENDED SEPTEMBER 30, 2002
Average Annual
------------------------------------------------
Three Nine One Five 10
Months* Months* Year Years Years
------- ------- ---- ----- -----
Market Price** (17.92)% (28.98)% (23.21)% (3.18)% 5.09%
Net Asset Value** (16.53) (28.99) (21.45) (4.18) 5.96
Lipper Closed-End
Growth &Income
Funds Average*** (15.96) (25.92) (17.42) (2.05) 6.46
S&P 500*** (17.28) (28.16) (20.49) (1.63) 9.00
Price per share
September 30, 2002 June 30, 2002 March 31, 2002 December 31, 2001
------------------ ------------- -------------- -----------------
Market Price $13.16 $16.10 $19.35 $18.75
Net Asset Value 15.22 18.31 21.67 21.69
DIVIDEND AND CAPITAL GAIN INFORMATION
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002
Capital Loss
-------------------------------
Dividend Paid+ Realized Unrealized
-------------- -------- ----------
$0.20 $(3.14) $(3.21)++
---------------------------------------------------------------------
The rates of return will vary and the principal value of an investment will
fluctuate. Shares, if sold, may be worth more or less than their original
cost. Past performance is not indicative of future investment results. Due to
market volatility, current performance may be higher or lower than the
performance quoted above.
* Returns for periods of less than one year are not annualized.
** These rates of return reflect changes in market price or net asset
value, as applicable, and assume that all distributions within the
period are taken in additional shares.
*** The Lipper Closed-End Growth & Income Funds Average and the S&P 500 are
unmanaged benchmarks that assume reinvestment of all distributions. The
Lipper Closed-End Growth & Income Funds Average excludes the effect of
any costs associated with the purchase of shares, and the S&P 500
excludes the effect of fees and sales charges. The Lipper Closed-End
Growth & Income Funds Average measures the performance of closed-end
mutual funds with objectives similar to the Corporation. The S&P 500
measures the performance of 500 of the largest US companies based on
market capitalizations. Investors cannot invest directly in an index or
an average.
+ Preferred Stockholders were paid dividends totaling $1.875 per share.
++ Represents the per share amount of net unrealized depreciation of
portfolio securities as of September 30, 2002.
--------------------------------------------------------------------------------
3
Tri-Continental Corporation
INTERVIEW WITH YOUR PORTFOLIO MANAGERS (continued)
economy weak, we did not expect major pockets of growth, except perhaps in the
defense industry. The portfolio did seek out stocks with predictable earnings,
low volatility, and dividend yield. Because of the ongoing war on terrorism and
the possibility of war in Iraq, Tri-Continental's portfolio had a slight
overweighting in defense stocks and defense-related technology stocks.
What sectors of the portfolio contributed most positively to Tri-Continental's
performance?
Tri-Continental's performance was helped by its underweighting in
information technology. Performance was also helped by the fact that
Tri-Continental's utilities holdings were of higher quality than those in the
index; we avoided unregulated utilities, including merchant power providers, and
instead favored regulated utilities, which performed better on a relative basis.
The portfolio's industrial holdings also contributed positively to performance,
since they tend to be less economically sensitive.
What sectors of the portfolio detracted from performance?
Few economic sectors were left unscathed during the third quarter, and
stocks declined almost across the board. Tri-Continental's performance was hurt
by its underweighting in the health care sector, one of the few areas to perform
well during the third quarter. Consumer discretionary stocks were poor
performers that detracted from the portfolio's performance.
What is your outlook?
We expect a period of slow economic recovery, and this is how
Tri-Continental's portfolio is positioned. We do not currently anticipate a
double-dip recession. We think increased spending by the federal government will
help support growth. Also, mortgage refinancings remain popular, and for this
reason consumers should continue to spend. However, we will monitor the recent
sharp decline in consumer confidence, given the important role consumer spending
plays in the economy. We think corporations will begin to make capital
expenditures again, if only to maintain existing infrastructure. However,
companies will be slower to invest in new equipment and technology until their
profits improve and the economic outlook appears more certain. On the bright
side, many companies have taken advantage of low interest rates to relieve their
debt burden. Over the short term, we expect the stock market will remain
volatile until clear and consistent signs of an economic recovery are more
discernible, and until the geopolitical situation in the Middle East stabilizes.
Nevertheless, the stock market should react well to signs of a strengthening
economy and improving corporate earnings.
4
Tri-Continental Corporation
Largest Portfolio Changes (unaudited)
July 1 to September 30, 2002
Largest Purchases Largest Sales
Fifth Third Bancorp* Immunex Corporation**
UnitedHealth Group Incorporated* Biomet, Inc.**
Philip Morris Companies, Inc. St. Jude Medical, Inc.**
Amgen Inc.* Baxter International Inc.**
Gillette Company (The) J.P. Morgan Chase & Co.
Lockheed Martin Corporation Knight Ridder Inc.
Royal Dutch Petroleum Company "NY shares"* Novellus Systems, Inc.**
Mohawk Industries, Inc.* Analog Devices, Inc.**
Exxon Mobil Corporation Clear Channel Communications, Inc.**
Pulte Homes, Inc.* Bank of New York Company, Inc.**
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities, listed in
descending order.
----------
* Position added during the period.
** Position eliminated during the period.
10 Largest Equity Holdings (unaudited)
September 30, 2002
-------------------------------------------------------------
Security Value
-------- -----------
Bank of America Corporation $88,485,496
General Electric Company 71,399,711
3M Company 71,040,620
Wal-Mart Stores, Inc. 62,874,556
Philip Morris Companies, Inc. 58,210,864
Pfizer Inc. 54,186,086
Lockheed Martin Corporation 53,050,288
Fifth Third Bancorp 50,794,030
Microsoft Corporation 50,613,096
Exxon Mobil Corporation 50,232,930
-------------------------------------------------------------
5
Tri-Continental Corporation
Portfolio of Investments (unaudited) September 30, 2002
Shares Value
COMMON STOCKS - 97.6% --------- --------------
AUTOMOBILES AND COMPONENTS - 1.0%
DaimlerChrysler AG (GERMANY) 200,000 $ 6,702,000
General Motors Corporation 310,900 12,094,010
--------------
$ 18,796,010
--------------
BANKS - 10.8%
Bank of America Corporation 1,386,920 $ 88,485,496
Comerica, Inc. 376,500 18,154,830
Fifth Third Bancorp 829,900 50,794,030
GreenPoint Financial Corp. 160,000 6,678,400
KeyCorp 716,200 17,883,514
National City Corporation 681,400 19,440,342
Wachovia Corporation 310,663 10,155,573
--------------
$ 211,592,185
--------------
CAPITAL GOODS - 15.9%
3M Company 646,000 $ 71,040,620
Deere & Company 278,600 12,662,370
Emerson Electric Co. 536,500 23,573,810
General Electric Company 2,896,540 71,399,711
Lockheed Martin Corporation 820,323 53,050,288
Parker Hannifin Corporation 395,400 15,108,234
Raytheon Company 1,594,400 46,715,920
Textron, Inc. 549,000 18,720,900
--------------
$ 312,271,853
--------------
CHEMICALS - 2.0%
Air Products and Chemicals, Inc. 960,400 $ 40,346,404
--------------
COMMUNICATIONS EQUIPMENT - 0.6%
Cisco Systems, Inc.* 1,075,500 $ 11,276,618
--------------
COMPUTERS AND PERIPHERALS - 1.9%
Dell Computer Corporation* 895,500 $ 21,048,728
International Business Machines Corporation 271,500 15,852,885
--------------
$ 36,901,613
--------------
CONSUMER DURABLES AND APPAREL - 2.3%
Mohawk Industries, Inc.* 286,000 $ 14,199,900
Pulte Homes, Inc. 272,800 11,629,464
Whirlpool Corporation 415,300 19,045,658
--------------
$ 44,875,022
--------------
CONSUMER STAPLES - 12.5%
ConAgra Foods, Inc. 780,100 $ 19,385,485
General Mills, Inc. 345,600 15,351,552
Gillette Company (The) 1,404,466 41,572,194
Kraft Foods Inc. Class "A"* 1,240,000 45,210,400
Philip Morris Companies, Inc. 1,500,280 58,210,864
Procter & Gamble Company (The) 508,586 45,457,417
Walgreen Co. 651,738 20,047,461
--------------
$ 245,235,373
--------------
DIVERSIFIED FINANCIALS - 4.4%
American Express Company 1,136,630 $ 35,440,123
Citigroup Inc. 864,700 25,638,355
J.P. Morgan Chase & Co. 1,359,830 25,823,172
--------------
$ 86,901,650
--------------
ELECTRONIC EQUIPMENT AND INSTRUMENTS - 0.6%
Waters Corporation* 473,300 $ 11,477,525
--------------
ENERGY - 8.3%
Amerada Hess Corporation 354,700 $ 24,077,036
ConocoPhillips 478,503 22,125,979
Exxon Mobil Corporation 1,574,700 50,232,930
Marathon Oil Corporation 681,700 15,460,956
Rowan Companies, Inc. 778,800 14,516,832
Royal Dutch Petroleum Company "NY shares"
(NETHERLANDS) 618,900 24,861,213
Tidewater Inc. 421,100 11,365,489
--------------
$ 162,640,435
--------------
HEALTH CARE EQUIPMENT AND SERVICES - 3.0%
Boston Scientific Corporation* 343,600 $ 48,860,644
UnitedHealth Group Incorporated 560,200 10,844,016
--------------
$ 59,704,660
--------------
HOTELS, RESTAURANTS AND LEISURE - 1.0%
Starwood Hotels & Resorts Worldwide, Inc. 878,100 $ 19,581,630
---------- --------------
See footnotes on page 7.
6
Tri-Continental Corporation
Portfolio of Investments (unaudited) (continued) September 30, 2002
Shares Value
--------- --------------
INSURANCE - 3.6%
ACE Limited (BERMUDA) 1,072,600 $ 31,759,686
Marsh & McLennan Companies, Inc. 343,610 14,307,920
PMI Group, Inc. (The) 400,100 10,886,721
XL Capital Ltd. Class "A" (BERMUDA) 197,500 14,516,250
--------------
$ 71,470,577
--------------
MEDIA - 1.6%
Knight Ridder, Inc. 155,700 $ 8,783,037
Viacom Inc. Class "B"* 550,900 22,338,995
--------------
$ 31,122,032
--------------
PAPER AND FOREST PRODUCTS - 3.1%
Boise Cascade Corporation 352,100 $ 8,027,880
Bowater Incorporated 646,700 22,828,510
Weyerhaeuser Company 682,950 29,892,721
--------------
$ 60,749,111
--------------
PHARMACEUTICALS AND BIOTECHNOLOGY - 6.9%
Amgen Inc.* 490,028 $ 20,431,717
Johnson & Johnson 774,643 41,892,693
Pfizer Inc. 1,867,198 54,186,086
Pharmacia Corporation 503,500 19,576,080
--------------
$ 136,086,576
--------------
REAL ESTATE - 1.6%
Equity Office Properties Trust 292,520 $ 7,552,866
Equity Residential 313,130 7,496,332
ProLogis 336,960 8,393,674
Simon Property Group, Inc. 249,650 8,919,995
--------------
$ 32,362,867
--------------
RETAILING - 5.1%
American Eagle Outfitters, Inc.* 537,400 $ 6,451,487
May Department Stores Company 1,400,800 31,896,216
Wal-Mart Stores, Inc. 1,276,900 62,874,556
--------------
$ 101,222,259
--------------
SEMICONDUCTOR EQUIPMENT AND PRODUCTS - 1.7%
Applied Materials, Inc.* 988,400 $ 11,420,962
Intel Corporation 1,652,500 22,928,438
--------------
$ 34,349,400
--------------
Shares or
Principal Amount Value
---------------- --------------
SOFTWARE AND SERVICES - 2.6%
Microsoft Corporation* 1,157,003 shs. $ 50,613,096
--------------
TELECOMMUNICATION SERVICES - 2.4%
SBC Communications Inc. 1,532,100 $ 30,795,210
Verizon Communications Inc. 580,400 15,926,176
--------------
$ 46,721,386
--------------
UTILITIES - 4.7%
Dominion Resources, Inc. 501,900 $ 25,461,387
Exelon Corporation 370,700 17,608,250
FPL Group, Inc. 165,800 8,920,040
Southern Company (The) 701,600 20,192,048
TXU Corp. 475,400 19,828,934
--------------
$ 92,010,659
--------------
TOTAL COMMON STOCKS
(Cost $2,323,993,756) $1,918,308,941
--------------
TRI-CONTINENTAL FINANCIAL DIVISION+ 0.3%
(Cost $7,848,696) $ 6,511,412
--------------
SHORT-TERM HOLDING 1.1%
(Cost $22,000,000) $ 22,000,000 $ 22,000,000
--------------
TOTAL INVESTMENTS - 99.0%
(Cost $2,353,842,452) $1,946,820,353
--------------
OTHER ASSETS LESS LIABILITIES - 1.0% 19,489,064
--------------
NET ASSETS - 100.0% $1,966,309,417
==============
----------
* Non-income producing security.
+ Restricted security.
Note: Investments in common stocks, 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 an exchange
are valued at last sales prices or, in their absence and in the case of
over-the-counter securities, at the mean of bid and ask prices. Short-term
holdings maturing in 60 days or less are valued at amortized cost.
7
Tri-Continental Corporation
Stockholder Services
Tri-Continental provides a number of services to make maintaining an
investment in its Common Stock more convenient.
Automatic Dividend Investment and Cash Purchase Plan. Stockholders may
automatically purchase additional shares with dividends and capital gains. There
isno charge for this service. Stockholders may alsopurchase additional shares
directly from the Corporation. There is a service fee of a maximum of $2.00 for
each cash purchase transaction.
Automatic Cash Withdrawal Plan. Stockholders who hold common shares with a
market value of $5,000 or more may elect to receive a fixed amount from their
investment at regular intervals by selling their shares to the Corporation.
Traditional Individual Retirement Account (IRA). Stockholders who have earned
income and are under age 701/2 may contribute up to $3,000 per year to a
Traditional IRA for 2002. A working or non-working spouse may also contribute up
to $3,000 to a separate Traditional IRA for 2002. Individuals who reach age 50
prior to the end of a taxable year may make additional "catch-up contributions"
to a Traditional IRA of up to $500 (increasing to $1,000 for years beginning
after 2005). Contributions to a Traditional IRAmay be deductible or
non-deductible. If you are single and NOT covered by an employer's retirement
plan, your contribution will always be deductible. For individuals who are
covered by a plan, contributions will be deductible if your modified adjusted
gross income (MAGI) in 2002 is less than $34,000. For spouses who are both
covered by a plan, contributions will be fully deductible if your MAGI is less
than $54,000. If one spouse does not work or is not covered by a retirement
plan, that spouse's contribution will be fully deductible provided your
household MAGI does not exceed $150,000. If your contribution is not deductible,
you may still take advantage of the tax-deferred accumulation of earnings in
your Traditional IRA.
Rollover IRA. You may be eligible to roll over a distribution of assets received
from another IRA, a qualified employee benefit plan, or tax-deferred annuity
into a Rollover IRA with Tri-Continental. To avoid a tax penalty, the transfer
to a Rollover IRA must occur within 60 days of receipt of the qualifying
distribution. If you do not make a direct transfer of a distribution from a
qualified employee benefit plan or a tax-deferred annuity to a Rollover IRA, the
payor of the distribution must withhold 20% of the distribution.
Roth IRA. You (and a working or non-working spouse) may each make an after-tax
contribution of up to $3,000 per year to a Roth IRAprovided you have earned
income and meet the eligibility requirements. Your MAGI must be less than
$95,000 (individuals) or $150,000 (married couples) to be eligible to make a
full contribution to a Roth IRA. You are eligible to make a partial Roth
IRAcontribution if your MAGI is below $110,000 (individuals) or $160,000
(married couples). Total combined contributions to a Roth IRA and a Traditional
IRA cannot exceed $3,000 in any year. Individuals who reach age 50 prior to the
end of a taxable year may make additional "catch-up contributions" to a Roth IRA
of up to $500 (increasing to $1,000 for years beginning after 2005). Earnings
grow tax-free and will be distributed to you tax-free and penalty-free provided
that you hold your account for at least five years and you take the distribution
either after age 591/2, for disability, upon death, or to make a first-time home
purchase (up to $10,000). Unlike a Traditional IRA, you may contribute to a Roth
IRA even if you are over age 701/2 (if you have earned income), and you are not
required to take minimum distributions at age 701/2. You may convert an existing
Traditional IRAto a Roth IRAto take advantage of tax-free distributions. You
must pay taxes on any earnings and deductible contributions in your Traditional
IRAwhen converting it to a Roth IRA. Talk to your financial advisor for more
details on converting your Traditional IRA.
8
Tri-Continental Corporation
Stockholder Services (continued)
Retirement Planning -- Qualified Plans. Unincorporated businesses and the
self-employed may take advantage of the same benefits in their retirement plans
that are available to corporations. Contribution levels can go as high as 100%
of earned income (reduced by plan contributions), to a maximum of $40,000 per
participant. For retirement plan purposes, no more than $200,000 may be taken
into account as earned income under the plan in 2002 and future years (subject
to adjustments to reflect cost of living increases). Social Security integration
and employee vesting schedules are also available as options in the
Tri-Continental prototype retirement plans. Although you already may be
participating in an employer's retirement plan, you may be eligible to establish
another plan based upon income from other sources, such as director's fees.
Retirement Plan Services provides information about our prototype retirement
plans. The toll-free telephone number is (800) 445-1777 in the US and (212)
682-7600 outside the US.
Gifts Free of Federal Tax are often made using Tri-Continental Common Stock. You
may give as much as $11,000 a year to as many individuals as desired free of
federal gift tax, and a married couple may give up to $22,000 a year.
Stock Repurchase Program. On November 15, 2001, the Board of Directors
authorized the renewal of Tri-Continental's ongoing share repurchase program.
The program authorizes the Corporation to repurchase up to 7.5% of the
Corporation's shares over a 12-month period, provided that the discount of a
share's market price to its net asset value ("NAV") remains wider than 10%. The
Board's decision benefits all stockholders, allowing them to continue to enjoy
the advantages of Tri-Continental's closed-end structure, while increasing the
NAV of the Corporation's outstanding shares.
Between November 15, 2001 and September 30, 2002, 8.1 million shares were
repurchased. This is approximately 6.3% of the shares outstanding at the
beginning of the period. The repurchase of additional shares is expected to
continue between October and November 2002, as long as the discount remains
above 10%.
9
Tri-Continental Corporation
For information about your Corporation, write to Corporate Communications, J.&W.
Seligman & Co. Incorporated, 100 ParkAvenue, New York, NY10017, or visit our
website at www.tricontinental.com. If you want information about your investment
account, write to Stockholder Services,Seligman Data Corp., at the same address.
You may also call Stockholder Services at the telephone number listed below.
--------------------------------------------------------------------------------
IMPORTANT TELEPHONE NUMBERS
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 (8:30 a.m. to
6:00 p.m. Eastern Time) 6:00 p.m. Eastern Time)
212-682-7600 Outside the Continental United States
--------------------------------------------------------------------------------
10
Tri-Continental Corporation
invests to produce
future growth of both
capital and income,
while providing reasonable
current income.
Tri-Continental Corporation
MANAGED BY
[LOGO]
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.
CETRI3c 9/02
THIRD QUARTER REPORT 2002
TRI-CONTINENTAL
CORPORATION
AN INVESTMENT YOU CAN LIVE WITH