PURITAN FUND, INC.

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-03089R000100030002-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 18
• Document Creation Date: December 12, 2016
• Document Release Date: March 11, 2002
• Sequence Number: 2
• Publication Date: October 10, 1967
• Content Type: REPORT

Approved For Release 2002/03/20 : CIA-RDP78-03089R000100030002-0
PURITAN FUND, INC.
Prospectus
October 10, 1967
A diversified open-end investment company with primary emphasis on income.
The price at which the shares are offered to the public normally equals the net asset value
plus a sales charge of 7.5% of the offering price. Special offering prices are available
for sales involving amounts in excess of $25,000 as more fully described on page 5.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADE-
QUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
TABLE OF CONTENTS
Investment Policy and Objective
PAGE
2
Continuous Investment and Dividend Reinvest-
PAGE
Business Experience of Directors and Officers. .
2
ment Plans
7
Advisory and Service Contract
3
Systematic Withdrawal Plan
8
Investment Restrictions
4
Ready Market for Shares
8
Organization and Capital Stock
4
Distributions and Taxes
8
Sale of Shares
5
Additional Information
9
Per Share Income and Capital Changes
5
Portfolio and Financial Statements
10-15
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Approved For ReitriorANO8-
:IcIteM5 013&r000100030002-0
accordance with the daily purchase or sales orders
actually placed for each Fund.
INVESTMENT POLICY AND OBJECTIVE
The investment objective of Puritan Fund, Inc. is
to obtain the maximum income possible consistent
with the preservation and conservation of capital.
While emphasis on income is an important objective,
the Management of the Fund does not feel this pre-
cludes any growth in capital since some securities offer-
ing a better than average yield may also possess some
growth possibilities. The emphasis, however, is on
income and not on capital growth. Since the Fund's
primary emphasis is on income and not capital gain,
as hereinbefore stated, capital gains distributions may
not be paid in every year, but only ?when conditions
warrant, and may be less than in previous years.
It should be recognized that investment in securities
offering above-average yield will entail greater than
normal risk of market depreciation. For this reason,
and because securities fluctuate in value and income
distributed by corporations varies with earnings, and
also because economic conditions change, the Manage-
ment of Puritan Fund cannot give assurance that the
above investment objective will be achieved.
The Management of Puritan Fund at all times
invests the assets of its shareholders in a broad list of
securities. They are diversified not only as to com-
panies and industries, but also usually as to type of
security, namely, bonds and preferred as well as common
stocks. The proportions invested in each type of se-
curity classification are varied from time to time in
accordance with the Management's interpretation of
economic conditions and underlying security values.
The Fund holds from time to time securities which
are also owned by one or more of the other Funds of
which Fidelity Management & Research Company is
the investment adviser, and in such cases all such stock
is voted together.
The Fund's portfolio security transactions are con-
ducted independently of the other Funds for which
Fidelity Management & Research Company is the in-
vestment adviser, except when decisions are made to
purchase or sell securities by two or more of such Funds
simultaneously, in which event the transactions are
averaged as to price and allocated as to amount in
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BUSINESS EXPERIENCE OF
DIRECTORS AND OFFICERS
EDWARD C. JOHNSON 2d, President and a Director of
the Fund, is President and a Director of Fidelity
Management & Research Company, the investment
adviser of the Fund, and a Director of The Crosby
Corporation.
C. IR,ODGERS BURGIN, a Director, is a private trustee.
Be was President of New England Trust Company,
Boston, from 1947 to 1960 and Chairman of the Board
of New England Merchants National Bank, Boston,
from 1961 to 1964.
ALFRED B. CORNELL, a Director, is manager of invest-
ment accounts of colleges, insurance companies,
banks, and individuals, and trustee of several estates.
GEORGE R. HARDING, a Director, has been a private
trustee in Boston for many years.
RONALD JONES, a Director, is a Director of Synthon,
Inc. and a management consultant.
GEORGE K. MCKENZIE, a Director, is a management
consultant, and, during 1966, was a Vice President
of U. S. Plywood Corp. From 1962 until 1965, he
was a Vice President and Director of Nashua Corp.,
Nashua, N. IT.
HORACE SCHERMERHORN, a Director, is a private
trustee. He was President of The National Shawmut
Bank of Boston from 1956 to 1960 and Chairman of
the Board from 1960 to 1962.
D. GEORGE SULLIVAN, Executive Vice President, is a
Vice President of the Adviser and is also a Director
of The Crosby Corporation.
FRANK D. MILLS, Vice President, is an employee of
the Adviser.
GEORGE S. MCEWAN, Vice President, is Chairman of
the Board of The Crosby Corporation.
EDWARD C. JOHNSON 3D, Vice President, is a Vice
President and a Director of the Adviser and a
Director of The Crosby Corporation.
CALEB LORING, JR., Vice President and Clerk, is a
partner of Gaston, Snow, Motley & Holt and a Vice
:
2CIA-RDP78-03089R000100030002-0
President, DAPPFOMO fAreaeleasee2to, 2i103/20
Adviser.
WILLIAM L. BYRNES, Assistant Vice President, is an
employee of the Adviser and is also President and a
Director of The Crosby Corporation.
EDWARD D. WINDSOR, Assistant Vice President, is a
Vice President of The Crosby Corporation.
CHESTER HAMILTON, Treasurer, is also Treasurer of the
Adviser and Treasurer and a Director of The Crosby
Corporation.
ALFRED D. RUSSELL, Assistant Treasurer, is an em-
ployee of the Adviser.
ERNEST V. KLEIN, Assistant Clerk, has been an asso-
ciate of Gaston, Snow, Motley & Holt since 1961,
and a partner since 1966.
: ofiv-itutOmi368391k06011 ebty Fund,
Inc., Fidelity Capital Fund, Inc., i elity rend Fund,
Inc., Dow Theory Investment Fund, Inc., Everest
Income Fund, Inc., Essex Fund, Inc., Congress Street
Fund, Inc., Second Congress Street Fund, Inc., Magellan
Fund, Inc., Contrafund, Inc. and Memphis & Shelby
County Medical Society Investment Retirement Trust
("Memphis"). The basic fee provided in the contracts
of the above companies is computed at .125% of the
average daily net assets for each quarter. In the case
of Fidelity Fund and Memphis, the advisory contracts
provide for a quarterly fee of .125% of the average net
assets less than $200,000,000, and .0875% of the average
net assets over $200,000,000, computed on a daily
basis for Fidelity Fund and on a weekly basis for
Memphis. The contracts of Fidelity Capital Fund and
Fidelity Trend Fund provide quarterly fees of .125%
of average daily net assets less than $200,000,000;
.1125% of average daily net assets over $200,000,000
and not over $300,000,000; .1% of average daily net
assets over $300,000,000 and not over $700,000,000;
.0875% of the average daily net assets over $700,000,000
and not over $1,000,000,000; and .075% of the average
daily net assets over $1,000,000,000. The fees in the
cases of the other Funds are a flat .125% of average
daily net assets per quarter. Each of these arrange-
ments reflects circumstances peculiar to the particular
investment company and to the time of adoption of the
contract. Except for Memphis, the managements of
all these Funds are substantially identical.
The Adviser also has entered into a contract with its
wholly-owned subsidiary, Pacific Northwest Manage-
ment & Research Company ("Pacific"), investment
adviser for Equity Fund, Incorporated ("Equity"),
under which the Adviser provides Pacific with all such
factual information and investment recommendations
as Pacific reasonably requests, in return for which the
Adviser is paid by Pacific on the basis of the direct and
indirect costs, including overhead, to the Adviser in
connection with such services. Under the contract
between Pacific and Equity, Pacific supervises the
investments of Equity, furnishes office space and
facilities, supplies, equipment and personnel for servic-
ing the investments of Equity, and pays salaries of the
officers of Equity and for all clerical work relating to
8 IA-RDP78-03089R000100030002-0
ADVISORY AND SERVICE CONTRACT
The Fund employs Fidelity Management & Research
Company, herein called the Adviser, to furnish invest-
ment advisory and other services.
The Adviser furnishes to the Fund investment advice
and assistance, office space and facilities, and pays the
salaries and fees of all officers and directors of the Fund
and all compensation for clerical services relating to
research, statistical and investment work. For these
services the Fund has agreed to pay a quarterly fee of
.1% of the average net asset value of the Fund less than
$200,000,000; .09375% of the average net asset value
over $200,000,000 but less than $400,000,000; and
.0875% of the average net asset value over $400,000,000
(based on market quotations of portfolio securities)
computed on the basis of the average of net asset values
of the Fund at the close of business on each business
day throughout the quarter.
The Fund will pay all its expenses not assumed by
the Adviser, including, without limitation, interest
charges, taxes, fees and commissions of every kind,
expenses of issue, sale, repurchase or redemption of
shares, expenses of registering or qualifying shares for
sale, charges of custodians, transfer agents and regis-
trars, and auditing and legal expenses. Pursuant to
the Fund's General Distribution Agreement with The
Crosby Corporation, a wholly-owned subsidiary of the
Adviser, the expenses of printing prospectuses and other
selling literature are borne by The Crosby Corporation.
Approved For Release 2002/03/20 ? C
research, A
f or which Equity pays Pacific monthly at the annual
rate of .5% of the average daily net asset value of
Equity up to $250 million, .375% of such value between
$250 million and $500 million and .25% of such value
in excess of $500 million.
As a result of the contract with the Adviser, the Fund
itself pays no salaries, fees or compensation to any of its
officers or directors, all of these payments being made by
the Adviser as part of the consideration for the payment
by the Fund to the Adviser of the above-mentioned fee.
The Adviser has two classes of stock, voting and non-
voting, and Edward C. Johnson 2d, President and Di-
rector of all the Funds, except Memphis, for which the
Adviser acts as investment adviser, controls the Adviser
through his ownership of 68% of its outstanding voting
stock. He also owns 28.2% of the Adviser's outstanding
non-voting stock. Edward C. Johnson 3d, Vice Presi-
dent of the Adviser and of the Fund, owns 22% of the
voting stock and 30.5% of the non-voting stock; and
Homer Chapin, Executive Vice President and Director
of Massachusetts Mutual Life Insurance Company,
owns 10% of the voting stock and 9.7% of the non-
voting stock. No other person owns as much as 10%
of either the voting or non-voting stock. The directors
of the Adviser are Mr. Johnson 2d, Mr. Johnson 3d,
Mr. Chapin and Mr. Loring.
INVESTMENT RESTRICTIONS
By the terms of its charter, the Fund is authorized
to engage in the business of investing its assets in all
forms of stocks, bonds and other securities and of
changing its investments from time to time. The Fund
may not purchase the securities of any issuer if such
purchase would cause more than 5% of its assets at
market to be invested in the securities of such issuer
(other than obligations of the United States. and its
instrumentalities) or would cause more than 10% of
any class of securities of such issuer to be held in the
Fund's portfolio. It may not purchase or retain secu-
rities of an issuer if the officers and directors of the Fund
together own more than 5% of any class of securities
of such issuer. It is prohibited from purchasing the
securities of other investment companies except in
connection with a merger or in the open market where
no profit other than the customary broker's commission
O44eitt(F6PRotesztser220giniatti CIAIIQU8rPrIPPRIMPRPPu9290he securities of
companies which, including predecessors, have a record
of less than three years' continuous operation, although
it may invest in the securities of (1) companies substan-
tially all of whose assets are securities of companies with
a record of three years' continuous operation or are
assets of another company's independent division which
has had such a record, or (2) regulated public utilities
or pipe-line companies which do not have such a record.
It may not buy any securities or other property on margin.
It is the policy of the Fund to diversify investments
among industries and not to invest in companies for the
purpose of exercising control or management, not to
buy or sell real estate, commodities or commodity
contracts unless acquired as a result of ownership of
securities, not to make loans to other persons (except
by purchase of bonds and other obligations constitut-
ing part of an issue) and not to underwrite securities
issued by others. The Fund may borrow money only as
a temporary measure for extraordinary or emergency
purposes, and such amounts as it does so borrow may
not exceed 10% of its gross assets taken at cost. The
restrictions in this and the preceding paragraph may
not be changed without a vote of the shareholders.
The Fund's policy is to limit portfolio turnover to
transactions necessary to carry out investment policy,
to obtain cash for redemption and repurchase of its
shares and to make changes in its status for purposes of
determining tax liability. The management approaches
these decisions with the essentially long-term point of
view of the careful investor rather than that of the trader.
ORGANIZATION AND CAPITAL STOCK
AND NON-CUMULATIVE VOTING
The Fund is a Massachusetts corporation formed as
a result of a merger on October 15, 1954, of a Delaware
corporation of the same name into its wholly-owned
subsidiary formed for the purpose of changing its dom-
icile to Massachusetts. The predecessor Delaware
corporation was organized on December 12, 1946, and
commenced business January 17, 1947.
The Fund has only one class of securities?shares of
capital stock of $1 par value?of which 75,000,000 are
authorized. These shares have non--cumulative voting
rights which means that the holders of more than 50%
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of the shares vAiR Wing ligt&I#M.Pent92c1A3/20 :vgiATRPEIR42089R430?1100,03102002below (the
elect 100% of the directors if they choose to do so, and, percentage in each case being a percentage of the appli-
in such event, the holders of the remaining less than cable offering price) :
50% of the shares voting for the election of directors
will not be able to elect any person or persons to the
board of directors.
Fractional shares may be issued and when issued
have the same rights proportionately as full shares.
Currently, such fractional shares are issued only in
connection with the Continuous Investment, Dividend
Reinvestment and Systematic Withdrawal Plans de-
scribed on pages 7 and 8. Each full share has one vote,
and when issued is fully-paid and non-assessable. The
shares are transferable by endorsement or stock power in
the customary manner, but the Fund is not bound to
recognize any transfer until it is recorded on the books
of the Fund. The holders of shares are entitled on
liquidation to all assets remaining for distribution after
satisfaction of all outstanding liabilities and are entitled
to share therein in proportion to the number of shares
held. No shares carry any conversion, subscription or
other preemptive rights except the right to require
repurchase thereof by the Fund as described on page 8.
SALE OF SHARES
Investors may buy shares (limited, in the case of
initial investments, to ten shares or more) at asset
At least But less than
On investments of
(10 shs.) $ 25,000-71A%
On investments of
$ 25,000
50,000----5
On investments of
50,000
100,000-4
%
On investments of
100,000
250,000 - 3
%
On investments of
250,000
500,000--21/2%
On investments of
500,000
1,000,000---2
%
On investments over
1,000,000
-1
%
The above scale on investments of $25,000 or more
is applicable to purchases of Fidelity Fund, Inc., Puritan
Fund, Inc., Fidelity Capital Fund, Inc., Fidelity Trend
Fund, Inc., Dow Theory Investment Fund, Inc., and
Everest Income Fund, Inc. (in those states where
qualified), either singly or in combination with shares of
one or more of the other Funds, made at one time by an
individual, or an individual, his spouse and their chil-
dren under the age of twenty-one, or a trustee, guardian
or other like fiduciary of a single trust estate or single
fiduciary account.
In addition, any of the persons enumerated above
may sign a Statement of Intention in the form provided
by the Distributor covering purchases of one or more
of the Funds to be made within a period of thirteen
months and thereby become eligible for the reduced
PER SHARE INCOME AND CAPITAL CHANGES
(For a share outstanding throughout the fiscal year)
Fiscal Year Ended July 31
1958 1959 1960
Income and Expense
Income $ 40 $ .40 $ .42
Expenses 04 .04 .05
Net income 36 .36 .37
Dividends from net income ( 36) (.36) (.37)
Capital Changes
Net asset value at beginning of year . 6.35 6.33 8.36
Net realized and unrealized profits (or losses) on
securities .04 2.03 (.64)
Distributions from realized capital gains . . (.06) - (.11)
Net asset value at end of year $6 33 $8.36 $7.61
Ratio of expenses to average net assets . . 0.59% 0.57% 0.58%
Ratio of net income to average net assets . 6.08% 4.77% 4.64%
Number of shares outstanding at end of year
(000 omitted) 7,307 8,521 9,915
1961
1962
1963
1964
1965
1966
1967
$ .40
$ .42
$ .41
$ .43
$ .44
$ .46
$ .50
.04
.05
.05
.05
.05
.05
.05
.36
.37
.36
.38
.39
.41
.45
(.36)
(.36)
(.36)
(.38)
(.38)
(.40)
(.45)
7.61
8.49
7.47
8.52
9.80
9.96
10.48
1.09
(.80)
1.21
1.45
.46
.68
2.00
(.21)
(.23)
(.16)
(.17)
(.31)
(.17)
(.47)
$8.49
$7.47
$8.52
$9.80
$9.96
$10.48
$12.01
0.56%
0.57%
0.57%
0.55%
0.53%
0.49%
0.48%
4.53%
4.46%
4.41%
4.15%
3.93%
3.76%
4.26%
12,817
15,726
19,546
25,298
36,865
45,649
52,545
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5
sales comAIX1115.0 VgibfiliESKeFig I ffrils114 tglORIP
chased during the thirteen-month period. Purchases
of shares of one or more of the Funds named above by
tax-exempt charitable, religious, educational and similar
corporations, associations or foundations enumerated
in Section 501(c) (3) or (13) of the Internal Revenue
Code and tax-exempt pension, profit-sharing or other
employee benefit plans qualified under Section 4.01 of
the Code are eligible for the reduced sales commission
based upon the aggregate of (1) the total amount
of shares of the above-named Funds purchased subse-
quent to April 3, 1967 and still held in the investor's
account, valued at the public offering price paid by
the investor at the date purchased, and (2) the number
of shares currently being purchased. This qualification
is subject to verification by the Distributor, from whom
appropriate forms for this purpose are available. When
purchasers are participating in a Continuous Invest-
ment or Dividend Reinvestment Plan, the dealer and/or
registered holder must provide written notice to the
Distributor.
In order to comply with Massachusetts laws appli-
cable to employee profit-sharing plans, the Trustee of
the Profit-Sharing Plan for the benefit of officers and
employees of the Adviser and of its wholly-owned
subsidiaries may from time to time purchase shares of
the Fund for the Plan at net asset value and will agree
so to purchase for investment only and not for resale
except to the Fund.
Shares of Puritan Fund, Inc. which have been out-
standing for at least six months may be exchanged for
shares of Fidelity Fund, Inc., Fidelity Capital Fund,
Inc., Fidelity Trend Fund, Inc. or Dow Theory Invest-
ment Fund, Inc. (which, as well as shares of Congress
Street Fund, Inc. and Second Congress Street Fund,
Inc., may be similarly exchanged for shares of Puritan
Fund, Inc.) on the basis of the relative net asset
values per share at the time of the exchange. Upon
receipt of proper instructions and all necessary sup-
porting documents in form acceptable to the Funds
and their Transfer Agent, such exchange will be effected
by redemption of shares of the Fund held and issuance
of shares of the other Fund to the redeeming share-
holder. A capital gain or loss for Federal tax purposes
will be realized upon the exchange, depending upon the
Approved For Release 2002/03/20
CIA-RCIPoTWEiMile0s995Te91
led. This offer
is available only in states where shares of the Fund
being acquired may legally be sold. Each transaction
must involve at least 100 shares of the Fund being
redeemed, and such transactions may include shares
purchased by reinvestment of dividends or acquired by
acceptance of optional capital gains distributions in
shares and any additional shares not exceeding 25% of
the total exchanged, notwithstanding the fact that
they have been held less than six months. A charge of
$5 will be made to the shareholder for services in each
such transaction. Prospectuses of the other Funds may
be obtained by writing to them at 35 Congress Street,
Boston, Massachusetts.
The Fund will not knowingly sell shares where, after
the sale, such shares would be owned directly, indi-
rectly, or through a unit investment trust by another
investment company whether foreign or domestic
owning directly, indirectly, or through a unit investment
trust more than 3% of the outstanding shares of the
Fu.nd, except that sales to Puritan Accumulation Plans,
a unit investment trust for accumulation of shares of
the Fund, shall not be subject to this limitation.
Dealers with whom the Distributor has sales agree-
ments purchase shares at a maximum discount of 6%
from the offering price to investors on transactions of
less than $25,000. The balance of the sales charge is
retained by the Distributor. The discount from the
applicable public offering price is alike for all dealers
except that qualified dealers in foreign countries may
purchase shares at a maximum discount of 6V/0 in
return for translating and distributing sales literature
in a particular foreign language within a particular
country. Dealers may receive or obtain a portion of the
customary and standard brokerage commissions on pur-
chases or sales of portfolio securities not only of the Fund
but also of other Funds for which Fidelity Management
& Research Company acts as adviser. The Fund may
also buy portfolio securities from, or sell such securities
to, dealers acting as principals. The Fund always seeks
to effect its transactions in portfolio securities whether
acting through a dealer as agent or with a dealer as
principal where it can get prompt execution of orders
at the most favorable prices. While there is no formula,
or undertaking or agreement to do so it is the practice
FIA-RDP78-03089R000100030062-0
of the Fund so APWOVRAf5tiraR9Ipitt0310302103/20
sider the following additional factors in the allocation
of brokerage business: (1) the relative sales of the shares
of all of the Funds for which Fidelity Management &
Research Company serves as adviser, and (2) statistical
and other factual information provided to the Adviser.
These factors are also taken into account where there
is no competition among dealers on the basis of price.
In no event, however, will these factors be given any
weight if this would result in the Fund not obtaining
the most favorable price and execution. The Fund has
no intention of placing portfolio business with any
particular broker or group of brokers.
Allocation as used in the above and the following
paragraphs relates to the commissions received by the
dealers who execute particular transactions or receipts
by a dealer who, although not executing the transaction,
receives a portion of the brokerage commission from
the dealer who executes the transaction.
During the fiscal year ended July 31, 1967, brokerage
commissions totalled $1,709,238, of which approxi-
mately 26 per cent was allocated to dealers who pro-
vided statistical and other factual information to the
Adviser. It is, of course, impossible to assign an exact
dollar value for these services, and their receipt does
not reduce the Adviser's expenses. Approximately
31 per cent was allocated to other dealers on the basis
of their sales of shares of all of the Funds for which
Fidelity Management & Research Company acts as
investment adviser. These percentages are not neces-
sarily indicative of percentages applicable to other Funds
for which Fidelity Management & Research Company
acts as investment adviser. The balance of this broker-
age business was allocated to dealers without regard to
the two factors enumerated above.
The Fund has entered into an agreement with Crosby
Plans Corporation under which shares of the Fund may
be acquired at net asset value by the Custodian of
Single Payment and Systematic Payment Investment
Plans based upon the shares of the Fund and sponsored
by Crosby Plans Corporation.
The net asset value is determined by The National
Shawmut Bank of Boston, Custodian, at the close of
business on each business day, i.e., a day on which the
New York Stock Exchange is open, and is accomplished
Approved For Release 2002/03/29:
:bPlAivIRDR7eg0313130R001111000000024ties plus
other assets, less liabilities, by the number of shares
outstanding. Such determination is made (i) by apprais-
ing portfolio securities which are traded on the New
York Stock Exchange or the American Stock Exchange
at the last sale price, or, if no sale, at the closing bid
price, (ii) by appraising other securities as nearly as
possible in the manner described in clause (i) if traded
on any other exchange, and if not so traded, on the
basis of over-the-counter market quotations, if avail-
able, (iii) by appraising all other securities and other
assets at fair value in the best judgment of the Board of
Directors. The public offering price based on this net
asset value is effective from 4:30 P.M. (New York City
time) on that day until 2:00 P.M. the next business day.
In addition, the net asset value is again so determined
as of 1:00 P.M. on each business day and the net asset
value so determined and the public offering price based
thereon is effective from 2:00 P.M. until 4:30 P.M.
The Fund's charter provides that determination of
the asset value may be suspended at times when the
New York Stock Exchange is closed or in the event
certain other emergencies have been determined to
exist by the Securities and Exchange Commission pur-
suant to the Investment Company Act of 1940.
The Fund reserves the right at any time to make
computations of offering prices at other times, to vary
the effective periods thereof, or to suspend offerings
entirely. The Fund may issue shares at net asset value
in connection with any merger or consolidation with,
or acquisition of the assets of, any investment company
or trust, subject to the requirements of the Investment
Company Act of 1940.
CONTINUOUS INVESTMENT AND
DIVIDEND REINVESTMENT PLANS
There is available a Plan for the purchase of Fund
shares by means of payments made from time to time,
as the investor may desire, to The National Shawmut
Bank of Boston, Custodian and Transfer Agent of the
Fund. Under this Plan the investor appoints the Bank
as agent to invest his payments and to reinvest cash
dividends received on shares acquired under the Plan
at the public offering price in effect at the close of
business on the day of receipt by the bank. The mini-
CIA-RDP78-03089R000100030002-0
mum initiallOpreivect Edt CRefeilasei2022i080X-:
ship of shares of the Fund at current offering price.
Each subsequent payment must be at least $50, and
a minimum of $300 must be invested during each year.
There is also available to shareholders of the Fund
owning shares with a value at current offering price of
at least $1,500 a Plan for automatic reinvestment of
dividends. Such reinvestment will be made at offering
price in substantially the same manner as described
above with respect to the Continuous Investment Plan.
Under both Plans, investors must elect to receive in
stock at net asset value any capital gains distributions
declared in stock or cash at the option of shareholders.
The investor should bear in mind that, as with all other
types of investments in securities, these Plans do not
assure a profit and do not protect against depreciation
in declining markets.
SYSTEMATIC WITHDRAWAL PLAN
There is available to shareholders a Systematic With-
drawal Plan under which a fixed sum may be paid
regularly to shareholders who purchase or already own
$10,000 or more of Fund shares at the current offering
price.
Such payments are made first out of available cash
distributions from the Fund and then so far as necessary
out of the proceeds of redemption of shares deposited
under the Plan. Thus, depending upon the size of the
payments requested and the fluctuations of the market
price of the underlying portfolio securities, redemptions
for the purpose of making such payments may reduce
or even use up the investment. For this reason the
payments cannot be considered as a yield or income
on the investment.
Withdrawals, in this or any other investment com-
pany, concurrently with purchase of shares, in this
or any other investment company, will ordinarily be
disadvantageous to the investors because of payment
of duplicative distribution charges. For this reason, no
Systematic Withdrawal Plan will be accepted at the
same time during which a Continuous Investment
Plan or Dividend Reinvestment Plan is in effect for a
shareholder. However, an investor may purchase addi-
tional shares of the Fund under a Statement of Intention
CIATIRWWW9BLQ0914!0;139SPAThile he has a
Systematic Withdrawal Plan in effect.
READY MARKET FOR SHARES
Under normal circumstances the Fund voluntarily
maintains a ready market for the repurchase of its
shares by a "bid price" available through investment
dealers. Beginning with the opening of the New York
Stock Exchange on any day, the Fund will repurchase
its shares until 1 P.M. (New York City time) at the
asset value to be determined as of 1 P.M. and from
1 P.M. until the next opening of the Exchange will
repurchase its shares at the asset value to be determined
as of 3:30 P.M.
Any shareholder of record may require the Fund to
purchase his shares by depositing the certificates there-
for, duly endorsed for transfer, at the office of the
Custodian, with a request that the Fund purchase the
shares represented thereby pursuant to paragraph 8(a)
of the Articles of Organization. The repurchase or
redemption price (which may be more or less than the
shareholder's cost, depending upon the market values
of the portfolio securities at the time of repurchase or
redemption) will be the net asset value as of the close of
business on the date of deposit if the deposit is made at
or before 12:00 noon on a business day, or, if the deposit
is made after 12:00 noon, at the closing net asset value
on the next business day. Payments for shares so
deposited shall be made within seven (7) days after
the date of deposit. In case of a suspension of deter-
mination of net asset value (see "Sale of Shares"), the
right of redemption is also suspended and the share-
holder may either withdraw his certificate from deposit
or receive payment of the net asset value determined
as of the close of business on the first day after the
suspension upon which a determination is made.
DISTRIBUTIONS AND TAXES
Dividends are being paid on or about the 25th day
of January, April, July and October. It is the policy of
the Fund to distribute substantially all of its net invest-
ment income and net realized capital gains. It is the
practice of the Fund to distribute capital gains in shares
of the Fund at net asset value or, at the election of each
shareholder, in cash. In so doing, the Fund intends to
Approved For Release 2002/03/20 : CIA-RDP78-03089R000100030002-0
8
PURITAN FUND, INC.
Approved Foiuneltiltget20632103120u:sdUeftgaintifF36g0M50100030002-0
(to be attached to pages seven and eight)
This prospectus is revised by striking the present
section entitled "Continuous Investment and Divi-
dend Reinvestment Plans" and inserting therefor
the following language.
Voluntary Accumulation Plan
There is available a Plan for the purchase of Fund
shares by means of payments made from time to
time, as the investor may desire, to The National
Shawmut Bank of Boston, Custodian and Transfer
Agent of the Fund. Under this Plan, which may be
terminated at any time, the Bank is appointed as
agent to invest the payments and/or to reinvest
cash dividends received on shares acquired under the
Plan at the public offering price in effect at the close
of business on the day of receipt by the bank. The
minimum initial investment is $500 or the equivalent
ownership of shares of the Fund at current offering
price. Each subsequent payment must be at least
$50 and, until such time as the investment reaches
$1,500 at offering price, the Distributor reserves the
right to terminate the Plan unless a minimum of
$300 is invested in each calendar year.
Under the Plan, investors must elect to re-
ceive in stock at net asset value at a date determined
by the Board of Directors any capital gains distri-
butions declared in stock or cash at the option of
shareholders. The investor should bear in mind that,
this Plan does not assure a profit and does not pro-
tect against depreciation in declining markets.
There is also available to dealers an arrangement
under which the $500 minimum initial investment
will be waived where the dealer has established to
the satisfaction of the Distributor adequate adminis-
trative procedures for accepting and transmitting
payments under a payroll deduction, military allot-
ment, or similar regular payment method, or in
connection with an arrangement meeting the re-
quirements of the Self-Employed Individuals Tax
Retirement Act of 1962, as amended ("Keogh
Plan"), where the arrangement is sponsored by a
trade or professional association whose members are
eligible to participate therein. The group must
invest initially at least $500, and each investor must
invest at least $50 at the time of the initial and each
subsequent investment. No reduction in sales charge,
not otherwise permitted as described under "Sale of
Shares" on page 5 of this prospectus, will be available
because of the aggregation of purchases by any
group formed under this arrangement.
The prospectus is further revised by adding the
following sentence to the first paragraph in the sec-
tion entitled "Systematic Withdrawal Plan."
This minimum investment is reduced to $5,000
if the shareholder requests quarterly rather than
as with akkafoiliZaVIVIRdatuAs 2tiFf2PONT0 : CIFADItt6P*4631Y8131NUM400030002-0
March 1, 1968
comply with AOlicavetf riveRetesidiie
available to investment companies as it did during the
fiscal year ended July 31, 1967. Under the Code, a com-
pany of this type which distributes to shareholders for
any year all of its net income as defined in the Code, in-
cluding both net investment income and net capital
gains, will be relieved of Federal income tax, which tax
usually will be paid by the shareholders on the distribu-
tions received by them.
A shareholder receiving a distribution from ordinary
income or an excess of net short-term capital gain over
net long-term capital loss treats it as a receipt of ordi-
nary income in the computation of his gross income.
Distributions of the excess of net long-term capital gain
over net short-term capital loss are taxable to the
shareholder as a long-term capital gain and are not
eligible for the dividend received exclusion.
As of July 31, 1967, approximately 21% of the net
asset value of the shares represented unrealized appre-
ciation of the underlying securities. Net gain on sales
of securities when realized and distributed is reportable
by shareholders as a capital gain. If the net asset value
of shares were reduced below a shareholder's cost by
distribution of gain realized on sales of securities, such
distribution would be a return of investment to him
although reportable for tax purposes as stated above.
wtio
02)(031120 : GIARDPIC8r08089R000100
ADDITIONAL INFORMATION
At August 1, 1967, the officers and directors of the
Fund, as a group, owned less than 1% of the capital
stock of the Fund outstanding on that date. Certain
officers of the Fund are officers or employees of the
Adviser. During the fiscal year ended July 31, 1967,
the fee received from the Fund under the Advisory and
Service contract was $1,967,554.
The Fund has entered into a distribution agreement
with The Crosby Corporation, 225 Franklin Street,
Boston, Massachusetts, whereby it has become the
Distributor of shares of the Fund. During the fiscal
year ended July 31, 1967, The Crosby Corporation
received $905,072 in commissions from sales of shares
of the Fund.
The Fund's Advisory and Service Contract, dated
October 28, 1965, and the distribution agreement, dated
0;10
0024) as long as
the continuance is approved at least annually by the
Fund's Board of Directors, including those directors
who are not affiliated with the Adviser or the Distrib-
utor or the Fund except in their capacity as Directors
of the Fund, or by a majority of the shares of capital
stock of the Fund. Each Contract automatically termi-
nates in the event of its assignment by the Adviser or
the Distributor, as the case may be. The Advisory and
Service Contract is terminable by either party on sixty
days' notice, and the distribution agreement is termi-
nable by either party on six months' notice.
For those self-employed individuals who as sole
proprietors or partnerships wish to purchase shares of
the Fund in conjunction with the Self-Employed Indi-
viduals Tax Retirement Act of 1962, as amended, there
is available through The Crosby Corporation a Custody
Agreement and Plan which received Internal Revenue
Service acceptance as a Prototype on January 17, 1967,
and was given I.R.S. Serial No. BOS-POL-66-3A-2.
The Custody Agreement provides that the State Street
Bank and Trust Company furnish custodial services
to the self-employed individual, and his employees, if
any are included as participants as required by such
Act. The service fees charged by the Bank to the self-
employed individual or the participant account are
subject to change on 30 days' written notice to the
employer. For further details, see Section 8 of the
Custody Agreement.
The current service fees are as follows:
Opening the Keogh Custodian Account, $5.00;
annual maintenance for the first participant account,
$4.00, and $2.00 for each additional participant
account; $1.00 for each deposit to a participant
account; for lump sum distribution of benefits in
cash, shares, annuity, government bonds, or return
of excess contribution, $5.00 or 1% of the amount,
whichever is less; for each periodic cash distribution,
$1.50 or 1% of the amount, whichever is less. No
other service fees shall be charged for normal
custodian services.
Purchases of shares of the Fund for these retirement
plans may not be made by telephone or wire. Such
Approved For Release 2002/03/20g CIA-RDP78-03089R000100030002-0
purchases mknatotedifir IReleaterc2002/03/20
the Custodian. All purchases will be made by the
Custodian after receipt of payment.
For further details, including the right to appoint a
successor custodian, see the Custody Agreement and
Plan as provided by The Crosby Corporation.
On January 31,1967, Allen Klein & Co., Inc. brought
suit against the Fund in the United States District
Court for the Southern District of New York alleging
that the Fund had repudiated without cause an agree-
ment to sell the plaintiff 404,000 shares of the common
stock of Metro-Goldwyn-Mayer, Inc. (MGM), at a
price of $38.00 per share. The contract price was
allegedly to include a declared but then unpaid 5%
stock dividend so that the Fund was supposedly to
receive a gross price of $36.20 per share on 424,200
shares. The complaint further alleged that the stock
CIAEREPRZ8-030139R0110100;t c;t) 32o-1:performance
of the alleged agreement. On May 29, 1967, the plaintiff
amended its complaint to join one Edgar Bronfman
as a defendant. The amended complaint realleges the
agreement and demands relief as described above. In
addition it alleges that Bronfman induced the Fund
to repudiate the alleged agreement; a conspiracy
between the Fund and Bronfman to prevent the plain-
tiff from obtaining the Fund's holdings of MGM stock
pursuant to which the Fund transferred one-half of said
holdings to Bronfman; and that Bronfman converted
the shares of MGM stock which he allegedly received.
It is the opinion of the Fund's officers and directors and
of its counsel that the action is wholly without merit
and it is not anticipated that the Fund will sustain any
damages as a result of the action or on account of the
litigation as a whole.
STATEMENT OF ASSETS AND LIABILITIES
,ITTLY 31, 1967
ASSETS
Investments at market (average cost $457,582,706) ? per
following schedule
Corporate short-term notes at cost approximating market
Cash
Receivable for investments sold
Receivable for shares sold
Dividends receivable
Accrued interest receivable
LIABILITIES
Payable for investments purchased . . . $2,871,433
Payable for shares repurchased . . . . 720,702
Accrued management fee 561,798
Other payables and accrued expenses . . 125,078
NET ASSETS at market ? 52,544,653.4 shares outstanding
Net asset value and redemption price per share
($631,094,953 4- 52,544,653.4 shares)
Offering price per share (100/92.5 of $12.01)
$592,037,289
28,487,913
7,916,777
789,078
4,213,367
716,695
1,212,845
STATEMENT OF INCOME
YEAR ENDED JULY 31, 1967
Income:
Dividends
Interest
Expenses:
Management fee (see "Advisory and Service Contract",
page 3) $1,967,554
Custodian 118,741
Transfer agent 116,605
Dividend disbursing agent 86,893
Legal and auditing 16,839
Reports to shareholders 48,793
Massachusetts excise tax 113,944
Miscellaneous 27,725
$18,428,696
6,280,215
24,708,911
2,497,094
635,373,964
4,279,011
$631,094,953
$12.01
$12.98
Net income for the year
$22,211,817
On sales of $25,000 or more the offering price is reduced as set forth
on page 5.
NOTE: No provision for Federal income tax is believed necessary since the
Fund distributes all of its taxable income for each fiscal year and
otherwise complies with provisions of the Internal Revenue Code
applicable to investment companies.
Approved For Release 2002/03/20 j0CIA-RDP78-03089R000100030002-0
NOTE: Total operating and management expenses were 10.1% of
investment income.
Realized net gain on investments
total
$21,255,755
Increase in unrealized appreciation of investments . $82,236,730
PURITAN FUND, INC.
Approvctifkoel; tOetraglIPRISTACtiieg&ggd7er&NPROA1a)030002-0
The last paragraph of text on page 10 of the Pro-
spectus is deleted and the following paragraph is
substituted in its place:
On November 6, 1967, Allen Klein & Co., Inc.
brought suit against Puritan Fund, Inc. (the "Fund"),
Edgar Bronfman and Philip Levin in the United
States District Court for the Southern District of
New York. On January 27, 1968, the plaintiff
amended its complaint. The complaint, as amended,
alleges seven separate and non-cumulative causes of
action, five of which seek recovery against the Fund.
The first such cause of action alleges a violation of
Section 10(b) of the Securities Exchange Act of 1934,
and Rule 10b-5 thereunder, by reason of allegedly
false and misleading statements made to the Fund
by Bronfman and Levin, acting as part of a group
denominated the "Levin Group," which statements
allegedly caused the Fund to breach an alleged agree-
ment to sell to the plaintiff certain shares of common
stock of Metro-Goldwyn-Mayer, Inc. (MGM). The
complaint goes on to state that these shares were
subsequently sold to Bronfman. In connection with
this cause of action the plaintiff seeks an order de-
creeing that the sale to Bronfman was illegal, specific
performance of the alleged agreement between it and
the Fund, and monetary damages from all defendants
jointly and severally. The second cause of action
seeking relief as against the Fund re-alleges the
agreement between the Fund and the plaintiff and
asserts agif0Weli geciPaellel aiddibla
February 14, 1968
based on an allegation that at the time it entered
into the alleged contract with the plaintiff the Fund
concealed its intentions not to perform the agree-
ment. On this cause of action the plaintiff seeks
specific performance and monetary damages. The
third such cause of action alleges that the Fund had
repudiated without cause the alleged agreement to
sell the plaintiff 404,000 shares of the common stock
of MGM at a price of $38.00 per share. The contract
price was allegedly to include a declared but then
unpaid 5% stock dividend so that the Fund was
supposedly to receive a gross price of $36.20 per share
on 424,200 shares. The complaint alleges that the
stock is unique in value and demands specific per-
formance of the alleged agreement. The fourth such
cause of action alleges that there was a conspiracy
between the Fund, Levin and Bronfman to prevent
the plaintiff from obtaining the Fund's holdings of
MGM stock pursuant to which conspiracy it is
alleged that the Fund transferred one-half of said
holdings to Bronfman. Monetary damages are
sought under this cause of action. Finally the com-
plaint seeks injunctive relief against the sale by the
Fund of its holdings of MGM shares to anyone other
than the plaintiff. It is the opinion of the Fund's
officers and directors and of its counsel that the
alleged causes of action against the Fund are wholly
without merit and it is not anticipated that the Fund
will sustain any damages as a result of the action or
on account of the litigation as a whole.
: CIA-RDP78-03089R000100030002-0
Approved IRWAWEVIEC200270312NCIFA FWB333/03MIM0100030002-0
Net assets at beginning of year (including undistributed net income of
Year Ended July
31
1965
1967
1966
$1,583,102-1967; $808,412-1966; $264,917?,-1965)
$478,315,774
$367,105,359
$247,867,065
Income:
Net income for year
22,211,817
17,188,256
12,063,879
Net amount for participation in undistributed income included in
price of shares issued and repurchased
546,188
574,042
598,987
22,758,005
17,762,298
12,662,866
Less cash dividends (note A)
22,672,966
16,987,608
12,119,371
Increase in undistributed income
85,039
774,690
543,495
Capital:
Realized and unrealized gains on investments:
Net gain on sales of investments, based on average cost (note C)
21,255,755
21,563,569
6,184,978
Less distributions (note B)
21,479,723
6,271,549
7,890,057
Increase or (decrease) in balance of realized net gain
(223,968)
15,292,020
(1,705,079)
Increase in unrealized appreciation of investments
82,236,730
274,901
7,210,619
Capital stock issued and repurchased, exclusive of amounts allocated
to income above (note D):
Receipts for shares sold and issued
86,059,988
115,886,433
119,159,485
Asset value of shares issued in distribution of realized net gain
15,860,394
4,390,894
5,265,052
Less cost of shares repurchased
(31,239,004)
(25,408,523)
(11,235,278)
Net increase
70,681,378
94,868,804
113,189,259
Net assets at end of year (including undistributed net income of $1,668,141-
1967; $1,583,102-1966; $808,412-1965)
$631,094,953
$478,315,774
$367,105,359
NOTES
A Cash dividends per share from income
.45
$ .40
$ .38
B -- Distributions per share from net gain realized in preceding fiscal year,
paid in shares of the Fund, or, at the election of shareholders, in cash
$ .47
$ .17
$ .31
A distribution of 40 cents per share from net gain on investments realized during the year ended July 31, 1967,
was declared on August 2, 1967, payable September 1, 1967, to shareholders of record August 2, 1967.
C Realized net gain for Federal income tax purposes
$ 21,287,803
$ 21,499,430
$ 6,304,805
D ? Capital stock of Fund issued and repurchased:
Shares sold and issued
8,325,856.2
10,660,019.0
12,138,538.5
Shares issued in distribution of realized net gain
1,603,679.9
444,872.8
566,744.0
Less shares repurchased
(3,034,164.1)
(2,321,080.9)
(1,137,815.2)
Net increase in number of shares
6,895,372.0
8,783,810.9
11,567,467.3
Approved For Release 2002/03/201CIA-RDP78-03089R000100030002-0
Shares
Approved For Releaspc2AMingtcppAIR9FRpilpp89R000100030002-0
(SHOWING PERCENT OF TOTAL MARKET VALUE OF INVESTMENTS)
COMMON STOCKS-80.8%
Cost Market
Aircraft and Aerospace--6.6%
301,000 Bendix Corp. $ 7,671,053 $ 16,254,000
54,400 Lockheed Aircraft Corp 2,157,790 3,767,200
90,000 North American Aviation, Inc. 4,902,119 4,106,250
155,000 United Aircraft Corp 5,118,249 14,821,875
$ 19,849,211 $ 38,949,325
Automobile and Equipment-6.0%
110,900 Borg-Warner Corp $ 4,602,368 S 5,087,538
103,500 Electric Storage Battery Co
107,000 Ford Motor Co.
206,400 Fruehauf Corp
55,200 General Motors Corp.
156,000 Midland-Ross Corp.
5,217,692 6,197,063
5,986,311 5,550,625
6,767,837 7,172,400
4,088,915 4,678,200
2,649,361 5,343,000
51,000 Stewart-Warner Corp _ 940,351 1,676,625
$ 30,252,835 $ 35,705,451
Building-3.4%
106,400 Johns-Manville Corp $ 5,691,759 $ 6,251,000
103,800 National Lead Co. 7,588,751 6,435,600
163,200 Otis Elevator Co 8,105,811 7,527,600
$ 21,386,321 $ 20,214,200
Cement-0.8%
107,000 Ideal Cement Co
143,200 Lone Star Cement Corp
$ 2,315,393 8 2,033,000
2,999,700 2,685,000
$ 5,315,093 $ 4,718,000
Chemical-3.3?A,
10,000 Air Reduction Co $ 317,986 $ 427,500
82,300 Allied Chemical Corp 3,080,302 3,178,838
69,000 American Cyanamid Co 2,330,920 2,259,750
3,100 duPont de Nemours (E. I.) & Co 466,908 471,975
140,000 Minerals & Chemicals Philipp Corp :1,634,812 6,230,000
146,300 National Distillers & Chemical Corp 4,232,252 6,802,950
$ 14,063,180 $ 19,371,013
Consumer Products-4.2%
84,700 Mohasco Industries, Inc $ 1,209,424 $ 1,651,650
58,500 Parke, Davis & Co 1,837,181 1,711,125
.399,800 Stanley Warner Corp 5,898,570 21,489,250
$ 8,945,175 $ 24,852,025
Entertainment-1.9%
209,475 Metro-Goldwyn-Mayer, Inc. $ 4,085,341 $ 11,573,494
Approved For Release 2002/03/20:
12
COMMON STOCKS-Continued
Shares
Financial-1.4%
113,100 Liberty Loan Corp
165,000 Marine Midland Corp
40,500 State Loan & Finance Corp., Class A
Cost Market
3,341,501 $ 2,573,025
4,933,840 5,053,125
852,792 673,313
9,128,133 1; 8,299,463
Food ana Beverage-1.9%
250,000 Buckingham Corp., Class A $ 3,415,798 $ 4,593,750
73,000 Central Aguirre Sugar Co 1,845,372 2,609,750
36,900 Great Western Sugar Co 1,295,465 1,937,250
61,400 Staley (A. E.) Manufacturing Co 2,253;298 2,448,325
$ 8,809,933 $ 11,589,075
Machinery-5.1%
282,900 Bucyrus-Erie Corp. $ 5,907,400 $ 9,618,600
125,000 Chicago Pneumatic Tool Co 4,297,735 5,640,625
112,000 Ex-Ce1l-0 Corp. 4,925,745 6,832,000
105,000 Stanley Works (The) 2,577,321 3,570,000
58,000 United Shoe Machinery Co 3,404,825 4,466,000
$ 21,113,026 $ 30,127,225
Metals and Mining-4.5%
57,900 American Smelting & Refining Co $ 3,653,153 $ 4,306,313
288,900 Anaconda Co 8,077,538 13,903,313
120,000 Cerro Corp 2,985,236 5,100,000
110,400 Maust Coal & Coke Corp 2,132,929 910,800
86,500 Pan American Sulphur Co 2,083,284 2,313,875
$ 18,932,140 $ 26,534,301
Oil and Gas Equipment--1.8%
144,400 Dresser Industries, Inc. $ 2,328,458 $ 5,956,500
73,300 Halliburton Co 2,082,621 4,535,438
$ 4,411,079 $ 10,491,938
Paper-3.9%
127,000 International Paper Co
112,000 Mead Corp
202,000 Rayonier, Inc.
114,300 Riegel Paper Corp
132,600 St. Regis Paper Co
6,400 U. S. Plywood-Champion Papers, Inc
3,926,316 $ 3,698,875
4,775,282 4,830,000
6,238,785 6,691,250
2,761,824 2,803,513
3,816,961 4,491,825
200,017 345,600
$ 21,719,185 $ 22,861,063
CIA-RDP78-03089R00010003000241
Approved ForiFteMtqem210104193/2shlyq-gRp741040?4R000100030002-0
COMMON STOCKS-Continued
Shares Cost Market
Petroleum-3.8%
COMMON STOCKS-Continued
Shares Cost Market
Transportation (Other than Railroads)-4.4%
162,000 Phillips Petroleum Co
8,946,501
$ 10,631,250
150,700 American Commercial Lines
$ 3,961,656
$ 6,442,425
21,000 Royal Dutch Petroleum Co
779,289
766,500
157,000 Greyhound Corp.
3,561,318
3,905,375
112,000 Standard Oil Co. (N. J)
6,423,202
7,210,000
155,700 Transcontinental Bus System, Inc
5,838,165
7,395,750
113,000 Sunray DX Oil Co.
3,313,215
4,096,250
75,000 U. S. Freight Co
3,794,124
6,075,000
$ 19,462,207
$ 22,704,000
73,130 U. S. Lines Co.
2,157,541
2,504,703
$ 19,312,804
$ 26,323,253
Railroads-1.0%
72,000 Great Northern Rwy. Co.
$ 3,342,692
$ 4,806,000
31,500 Norfolk & Western Rwy. Co
2,679,741
3,331,125
500,000 Chubu Electric Power Co.
$ 747,580
$ 747,580*
42,250 Seaboard Coast Line R.R. Co
1,458,301
2,925,813
150,000 Colorado Interstate Gas Co
4,909,228
5,606,250
69,500 Columbia Gas System, Inc
1,922,389
1,850,438
$ 7,480,734
$ 11,062,938
59,116 Kansai Electric Power Co.
882,988
1,167,541
153,000 Mississippi River Corp
3,024,061
2,907,000
Retail Trade-0.8%
70,000 Montana Power Co
2,226,162
2,170,000
61,000 Grant (W. T.) Co
$ 1,469,206
$ 2,142,625
150,000 Niagara Mohawk Power Corp
3,518,378
3,150,000
105,500 Kroger Co. (The)
2,940,583
2,400,125
$ 17,230,786
$ 17,598,809
$ 4,409,789
$ 4,542,750
Miscellaneous-7 9%
160,000 American Can Co
$ 8,816,096
$ 9,240,000
Rubber-0.2%
244,900 Carborundum Co
8,883,217
17,051,163
28,300 Armstrong Rubber Co
$ 1,081,320
$ 1,252,275
67,200 Dayco Corp
1,838,439
2,814,000
10,000 wts Gamble-Skogmo, Inc
36,250*
Steel-6.3%
322,100 Mesabi Trust Co
4,357,710
4,227,563
137,000 Armco Steel Corp.
7,307,367
$ 7,569,250
130,300 Newport News Shipbuilding & Dry
50,900 Bethlehem Steel Corp
1,853,300
1,768,775
Dock Co.
6,239,178
6,254,400
239,500 Copperweld Steel Co
4,865,730
6,706,000
100,000 United-Carr, Inc
1,909,658
3,012,500
85,500 Harbison-Walker Refractories Co...
3,072,361
3,836,813
122,000 UMC Industries, Inc
2,063,503
2,897,500
321,000 Harsco Corp.
5,536,199
8,105,250
29,844 Western Sales, Ltd., Class At
272,933
242,483
61,500 Inland Steel Co
1,898,646
2,321,625
Other Securities
714,474
775,814
100,000 Interlake Steel Corp.
3,385,359
3,062,500
$ 35,095,208
$ 46,551,673
51,500 U. S. Steel Corp.
2,403,238
2,407,625
Total Common Stocks
$355,463,730
$478,234,809
42,000 Youngstown Sheet & Tube Co
1,420,095
1,422,750
$ 31,742,295
$ 37,200,588
PREFERRED STOCKS-4.8%
Textile-2.1%,
346,200 Beaunit Corp., Inc
$ 4,998,410
$ 4,673,700
Shares Cost
Market
49,000 Dan River Mills, Inc
715,604
1,071,875
114,200 Ludlow Corp
2,461,135
6,509 400
35,100 American Home Products Corp. $2.00
$ 8,175,149
$ 12,254,975
cony.
$ 698,469
$ 2,983,500
15,000 Basic, Inc. cum. cony. 5%
677,033
708,750
20,700 Bendix Corp. $3.00 Series B
1,135,950
1,676,700
Tobacco-5.6%
40,200 Chicago & North Western Rwy. Co.
43,000 American Tobacco Co.
1,460,080
$ 1,499,625
cony. 5% Series A
3,576,961
6,834,000
194,600 P. Lorillard Co
9,065,267
11,578,700
20,000 Consolidated Edison Co. of New
269,000 Philip Morris, Inc
7,241,879
14,324,250
York, Inc. 5% cum. Series E...
2,000,000
1,900,000
140,800 Reynolds (R. J.) Tobacco Co
5,695,560
6,054,400
61,600 Glen Alden Corp. $3.15 cony.
4,873,520
7,053,200
$ 23,462,786
$ 33,456,975
12,736 II. P. Hood & Sons, Inc. 6%
637,705
573,120*
Approved For Release 2002/03/206 CIA-RDP78-03089R000100030002-0
Shares
Approved ForRmcwrwit9Rigs)RipivReFerniqp.R9)00100030002-0
PREFERRED STOCKS-Continued
Cost Market
68,800 Pet Milk Co. $.80 cum. cony. prefer-
ence $ 1,488,709 $ 1,410,100
13,000 Republic Corp. $1 cony. 202,095 339,625
5,760 Southeastern Public Service 51/2%
cum. Series A (with 9,000 warrants) 287,861 264,960*
72,000 Tenneco Corp. $1.60 cum. 2nd 1,998,000 2,097,000
9,769 United Airlines, Inc. $5.50 893,864 898,748*
16,000 U. S. Plywood-Champion Papers, Inc.
$1.20 cum. cony. 291,691 504,000
11,600 U. S. Smelting, Refining & Mining
Co. cum. $5.50 922,200 951,200
Total Preferred Stocks $ 19,684,058 $ 28,195,203
BONDS-14.4%
Principal
Amount Cost Market
$ 500,000 Albee Homes, Inc. cony, sub. deb.
5%, 1982 $ :326,908 $ 170,000
1460,000 American Airlines, Inc. cony, sub.
deb. 44%, 1992 1,476,262 1,554,900
129,000 Automatic Retailers of America,
Inc. sub. deb. 474%, 1983 (with
warrants) 129,000 132,870
150,000 Barton Distilling Co. prom. notes
1970 150,000 150,000*
50,000 Barton Distilling Co. prom. notes
634%, 1972 50,000 50,000*
50,000 Barton Distilling Co. prom. notes
63/a%, 1974 50,000 50,000*
1,500,000 Beneficial Finance Co. deb. 64%,
1970 1,493,550 1,503,750
1,000,000 Beneficial Finance Co. deb. 5.60%,
1971 981,250 982,500
500,000 Berkey Photo, Inc. cv. deb. 534%,
1986 .500,000 775,000
441,000 Billups Western Petroleum Corp.
deb. 6%, 1984 392,311 442,103
2,000,000 Boise Cascade Corp. 6%, 1970. 2,000,000 2,000,000*
1,500,000 Consumers Power Co. let mtge
57A%, 1996 1,126,655 1,500,000
339,000 The Dorsey Corp. sub. s.f. deb
63/2%, 1975 339,000 322,050
900,000 Eastern Air Lines, Inc. cony. jr.
sub. deb. 534%, 1983 400,000 1,792,000
5,000,000 Eastern Air Lines, Inc. prom
notes, 6%, 1986 5,000,000 5,000,000*
Approved For Release 2002/03/20:
BONDS-Continued
Principal
Amount
$ 850,000 FWD Corp. deb. 1979 4
5,000,000 Federal National Mortgage Assoc
5.75%, 6/23/68
2,000,000 Federal National Mortgage Assoc
5%%, 9/10/68
1,405,000 Ferro Corp. s.f. deb. 5%%, 1992
3,000,000 Fruehauf Corp. s.f. deb. 6%, 1987
3,000,000 Georgia Power Co. lot mtge. 534%,
1996
450,000 Global Marine, Inc. sub. deb. 5%,
1984
100,000 Great Lakes Bowling Corp. cony.
deb. 6%, 1976
2,000,000 Gulf Power Co. 1st mtge. 6%, 1996
3,000,000 IIarsco Corp. s.f. deb. 5.50%, 1992
1,000,000 II. P. Hood & Sons, Inc. inc. deb
6%, 1999
2,600,000 Household Finance Corp. or. notes
6%, 1969
476,000 Imperial Investment Corp., Ltd.
coll. trust 6%%, 1980
2,000,000 Indian Head Mills, Inc. sub. deb.
1990 (with warrants)
300,000 Japan (Empire) ext. s.f. 5]A%, 1980
460,000 Japan Development Bank gtd. ext.
loan bonds 6%, 1977
255,000 Japan Development Bank gtd. ext
loan bonds 6%, 1978
2,000,000 Jersey Central Power & Light 1st
mtge. 61A%, 1996
800,000 Keyes Fibre Co. sub. deb. 54%,
1985 ($480,000 with warrants)
1,000,000 Kidde (Walter) & Co., Inc. deb.
5%, 1991
2,000,000 Ling-Temco-Vought, Inc. prom.
notes 634%, 1970 (with warrants)
485,000 Lockheed Aircraft Corp. sub. deb.
44%, 1992
389,000 Mansfield Tire & Rubber Co. cony.
deb. 5%, 1974
885,000 McDonnell Douglas Co. ?v. sub.
deb. 434%, 1991
600,000 Metromedia, Inc. cony. sub. notes
5%, 1979 (with 9,500 warrants)
900,000 Metromedia, Inc. Sr. notes 534%,
1984
Cost Market
848,587 $ 697,000
5,000,000 5,000,000
1,998,750 2,010,000
1,397,950 1,320,700
3,000,000 2,925,000
3,000,000 2,910,000
360,801 333,000
100,000 75,000*
2,042,180 1,980,000
2,986,250 2,850,000
1,000,000 930,000*
2,582,840 2,600,000
476,000 418,880
2,048,245 2,200,000
267,000 274,500
441,600 443,900
246,075 242,250
2,034,580 2,000,000
791,603 905,600
1,000,000 1,448,454*
2,000,000 3,220,000*
485,000 552,900
357,507 322,870
930,636 1,205,813
600,000 1,114,625*
900,000 828,000*
CIA-RDP78-03089R000100030002-0
14
Approved For matte A200210312aulciA7RMICC-Aa043611C1900100030002-0
BONDS-Continued
Principal
Amount
$ 3,000,000 Michigan Consolidated Gas Co
57A%, 1991
671,000 Minneapolis & St. Louis Rwy. Co
lot mtge. 6%, 1985
Cost
$ 3,029,490
584,001
Market
$ 2,910,000
613,965
1,000,000 Missouri Pacific R.R. Co. 1st mtge.
Series C 43/4%, 2005
768,701
690,000
550,000 Modern Homes Construction Co.
deb. 6%, 1981
402,602
319,000
750,000 Nippon Express Co. Ltd. cony.
deb. 63/4%, 1978
750,000
750,000*
400,000 Philadelphia Electric Co. 1st & re-
funding mtge. 6%, 1968
400,000
400,000*
400,000 Philadelphia Electric Co. 1st & re-
funding mtge. 6%, 1969
400,000
400,000*
400,000 Philadelphia Electric Co. 1st & re-
funding mtge. 6%, 1970
400,000
400,000*
400,000 Philadelphia Electric Co. let & re-
funding mtge. 6%, 1971
400,000
400,000*
400,000 Philadelphia Electric Co. 1st & re-
funding mtge. 6%, 1972
400,000
400,000*
380,000 Pittston Co. sub. notes 614%, 1976
381,900
364,800*
319,000 Seaboard Finance Corp. cap. notes
6/1%, 1980
319,000
319,000*
900,000 Sheraton Corp. of America inc.
sub. deb. 63/4%, 1981
854,691
841,500
269,000 Sheraton Corp. of America cap.
inc. s.f. deb. 7IA%, 1989
264,514
271,018
500,000 Southern Airways Co. deb. 53/47c,
1981
500,000
595,000
1,000,000 State Loan & Finance s.f. deb.
6.80%, 1987
995,000
995,000
2,500,000 Tampa Electric Co. deb. 51A%,
1996
2,500,000
2,400,000
560,000 Texas Consumer Finance Corp.
notes 634%, 1973
551,937
560,000*
5,300,000 Trans World Airlines, Inc. deb.
63/4%, 1978
5,182,735
5,035,000
200,000 Trans World Airlines, Inc. sub.
deb. 4%, 1992
200,000
192,000
1,000,000 United Aircraft Corp. 5/%, 1991
1,018,375
1,305,000
2,335,000 U. S. Smelting Refining & Mining
Co. sub. deb. 5/%, 1995
2,119,013
1,943,888
5,000,000 U.S. Treasury notes 5%, 11/15/70
5,009,672
4,992,200
BONDS-Continued
Principal
Amount
$ 610,300 Uris Building Corp. s.f. deb. 61/2%,
Cost
Market
1975
$ 541,622
$ 591,991
350,000 Vulcan Mold & Iron Co. sub. deb.
6%, 1981
350,000
334,250
1,250,000 Walter (Jim) Corp. sub. deb. 9%,
2000
1,399,875
1,375,000
1,000,000 Wisconsin Electric Power Co. 1st
mtge. 538%, 1996
1,001,250
975,000
Total Bonds
$ 82,434,918
$ 85,607,277
Total Investments
$457,582,706
$592,037,289
TOTAL COST FOR FEDERAL
INCOME TAX PURPOSES
$456,755,502
Won-income producing.
Securities are valued at last sales price reported July 31, 1967, on national
securities exchanges or, in the absence of reported sales, at closing bid prices
on such exchangeg or at over-the-counter bid prices. Securities indicated
by the* above are valued at fair value determined by Board of Directors.
CERTIFICATE OF
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Shareholders and Directors
of Puritan Fund, Inc.:
We have examined the accompanying statement. of assets and liabilities,
including the schedule of investments, of Puritan Fund, Inc. as at July 31,
1967, the related statement of income for the year then ended and the
statement of changes in net assets for the years ended July 31, 1967, 1966,
and 1965. Our examination was made in accordance with generally accepted
auditing standards, and accordingly included confirmation from the custo-
dian of the securities held for the Fund and such tests of the accounting
records and such other auditing procedures as we considered necessary
in the circumstances.
In our opinion, said statements present fairly the financial position of
Puritan Fund, Inc. at July 31, 1967, the results of its operations for the
year then ended and the changes in its net assets for the years ended
July 31, 1967, 1966 and 1965, in conformity with generally accepted
accounting principles applied on a consistent basis.
LYBRAND, ROSS BROS. & MONTGOMERY
Boston, Massachusetts
August 16, 1967
Approved For Release 2002/03/20 i5CIA-RDP78-03089R000100030002-0
Ap roil! fieliaii2002/03/20 : CIA-RDP78-03
FUND
INC.
35 Congress Street, Boston, Massachusetts 02109
Board of Directors
EDWARD C. JOHNSON 2D, 35 Congress St., Boston, Mass.
C. RODGERS BURGIN, 138 Central Ave., Milton, Mass.
ALFRED B. CORNELL, 1 Wall Street, New York, N. Y.
GEORGE R. HARDING, 131 State St., Boston, Mass.
RONALD JONES, 250 Commonwealth Ave., Boston, Mass.
GEORGE K. MCKENZIE, 300 West 55th St., N. Y., N. Y.
HORACE SCHERMERHORN, 58 Cliff Rd., Wellesley, Mass.
Officers
EDWARD C. JOHNSON 2D, President
D. GEORGE SULLIVAN, Executive Vice President
FRANK D. MILLS, Vice President
GEORGE S. MCEWAN, Vice President
EDWARD C. JOHNSON 3D, Vice President
CALEB LORING, JR., Vice President and Clerk
WILLIAM L. BYRNES, Assistant Vice President
EDWARD D. WINDSOR, Assistant Vice President
CHESTER HAMILTON, Treasurer
ALFRED D. RUSSELL, Assistant Treasurer
ERNEST V. KLEIN, Assistant Clerk
General Distributor
THE CROSBY CORPORATION
225 Franklin Street 134 South LaSalle Street
Boston, Mass. Chicago, Illinois
Investment Adviser
FIDELITY MANAGEMENT
& RESEARCH COMPANY
35 Congress Street
Boston, Mass.
Custodian and Transfer Agent
THE NATIONAL SHAWMITT BANK
OF BOSTON
Boston, Mass.
Auditors Legal Counsel
LYBRAND, ROSS BROS. GASTON, SNOW,
& MONTGOMERY MOTLEY & HOLT
Boston, Mass. Boston, Mass.
PROSPECTUS
OCTOBER 10, 1967
PURITAN
FUND
INC.
A MUTUAL FUND
WITH PRIMARY EMPHASIS
ON INCOME
Approved For Release 2002/03/20 : cbejAbV7TP-b5180614caRobal0V2I5
OF MUTUAL