July 13, 2006
United States Securities and
Exchange Commission
450 Fifth Street, NW
Washington, DC 20549
RE: Registered Management Investment Company Bond
Gentlemen:
Pursuant to Rule 270.17g-1(g) we enclose herewith a copy of our joint insured bond (#80911610) provided by Vigilant Insurance Company, which continues the aggregate coverage under the bond at $2,250,000, for the period June 15, 2006 to June 15, 2007. Also enclosed is a copy of the related resolutions adopted on July 12, 2006 by our Board of Directors, including a majority of Directors who are not interested persons of the Company, together with a preamble.
If the Company did not have a joint insured bond, coverage under a bond would be in the amount of $1,250,000.
The premium for this bond is $9,000. The entire premium has been paid for and borne by the Company.
Finally, enclosed is a copy of the agreement between General American Investors Company and its qualified retirement programs under this joint insured bond.
If there are any questions relating to the enclosed material or foregoing information or if additional information is required with respect to our fidelity bond, kindly contact me.
Sincerely,
Eugene S. Stark
Vice-President, Administration
CERTIFIED RESOLUTIONS
I, Carole Anne Clementi, Secretary of General American Investors Company, Inc. (the “Company”),
hereby certify that the following resolutions were adopted by the Board of Directors of
the Company, including a majority of the Directors who are not “interested persons” of
the Company, at a meeting of the Board held on July 12, 2006.
DETERMINATION OF FIDELITY BOND:
The Vice-President, Administration stated that a bond in the amount of $1,250,000 coincides with the minimum required by Rule 17g-1(d) under the Investment Company Act of 1940 and that, in his opinion, it is a reasonable amount for General American Investors Company to maintain.
The Vice-President, Administration then submitted to the meeting Investment Company Asset Protection Bond number 80911610 issued on a joint insured basis to the Company, the Company's Employees' Retirement Plan and the Company's Employees' Thrift Plan by Vigilant Insurance Company (a member of the Chubb Group of Insurance Companies), dated June 15, 2006, as currently in effect, in the amount of $2,250,000. He indicated that the Company and its Employees' Retirement and Thrift Plans had entered into an agreement pursuant to which the Company would receive at least $1,250,000 in the event of a joint loss and recovery under the bond. He stated that the annual premium ($9,000) for the policy had been paid by and borne solely by the Company.
After consideration of the arrangements made for the custody and safekeeping of the assets of the Company, the nature of the securities in the portfolio and the value of the aggregate assets of the Company to which any covered person may have access, upon motion duly made and seconded it was unanimously (including a majority of Directors of the Board who are not "interested persons" of the Company)
| RESOLVED, that the form and amount of the joint insured indemnity bond number 80911610, issued by Vigilant Insurance Company, dated June 15, 2006, as currently in effect, in the amount of $2,250,000, $1,250,000 of which would be applicable to the Company in the event of a joint loss and recovery, be and hereby are approved; and further |
| RESOLVED, that the premium for the joint insured bond be borne and paid entirely by the Company. |
/s/ Carole Anne Clementi
Carole Anne Clementi,
Secretary
July 12, 2006
Agreement Pursuant to Rule 17g-1(f) under the Investment Company Act of 1940
Agreement, dated as of June 15, 2006, among General American Investors Company, Inc. ("General American"), General American Investors Company, Inc. Employees' Retirement Plan ("Retirement Plan") and General American Investors Company, Inc. Employees' Thrift Plan ("Thrift Plan").
Whereas, General American, Retirement Plan and Thrift Plan have determined that it is in their mutual interests to be named as insureds under a bond to be issued by Vigilant Insurance Company (the "Bond") which Bond is a joint insured bond as such term is defined in Rule 17g-1(b) of the Securities and Exchange Commission ("Commission") under the Investment Company Act of 1940, as amended (the "Act");
Whereas Rule 17g-1(f) of the Commission under the Act requires that an agreement be entered into among all named insureds under a joint insured bond;
Whereas the Bond is in the amount of $2,250,000;
Whereas as of March 31, 2006, the minimum amount for which General American is required to be insured under Rule 17g-1(d) of the Commission under the Act is $1,250,000;
Now, therefore, General American, Retirement Plan and Thrift Plan hereby agree as follows:
| 1. | In the event that recovery is received under the Bond as a result of loss sustained by General American and either or both of Retirement Plan and Thrift Plan, General American shall receive an equitable and proportionate share of the recovery. |
| 2. | For the purpose of this Agreement "an equitable and proportionate share of the recovery" shall mean in respect of General American at least $1,250,000; in respect of Retirement Plan $500,000; and in respect of Thrift Plan $500,000. |
| 3. | This Agreement and any amendment hereto shall be filed with the Commission in accordance with Rule 17g-1(g)(1) of the Commission under the Act. |
General American Investors Company, Inc.
By /s/Eugene S. Stark
Vice-President, Administration
General American Investors Company, Inc.
Employees' Retirement Plan
By /s/Eugene S. Stark
Vice-President, Administration
General American Investors Company, Inc.
Employees' Thrift Plan
By /s/Eugene S. Stark
Vice-President, Administration
General American Investors Company, Inc.