GENERAL AMERICAN INVESTORS COMPANY, INC.
--------------------------------------------------------------------------------
100 PARK AVENUE  NEW YORK, N.Y. 10017


                                        Notice of Annual Meeting of Stockholders

                                                               February 22, 2008
To the Stockholders of

GENERAL AMERICAN INVESTORS Company, Inc.

NOTICE IS HEREBY  GIVEN  that the  annual  meeting  of  stockholders  of General
American Investors Company, Inc. will be held at The Century Association, 7 West
43rd Street,  New York City,  N.Y., on Wednesday,  April 16, 2008 at 10:00 a.m.,
New York Time, for the purpose of

     (A)  Electing  directors,  nine to be  elected  by the  holders of both the
          Company's  Common  Stock and its  5.95%  Cumulative  Preferred  Stock,
          Series B ("Preferred Stock") voting together as a single class and two
          to be elected only by the holders of the Company's Preferred Stock, to
          hold office  until the annual  meeting of  stockholders  next  ensuing
          after their election and until their respective successors are elected
          and shall have qualified; and

     (B)  Ratifying or rejecting the  appointment by the Audit  Committee of the
          Company  (which was approved by the Board of Directors of the Company)
          of the firm of Ernst & Young LLP to be the auditors of the Company for
          the year ending December 31, 2008; and

     (C)  Transacting  any and all such  other  business  as may  properly  come
          before the meeting or any  adjournments  or  postponements  thereof in
          connection with the foregoing or otherwise.

     The Board of Directors  unanimously  recommends that  shareholders  vote in
favor of items (A) and (B).

     If you do not expect to attend the meeting in person and wish your stock to
be voted, you are requested to fill in and sign the  accompanying  form of proxy
and return it in the accompanying envelope.  Registered holders may also vote by
telephone or internet  through the  Company's  transfer  agent,  American  Stock
Transfer  & Trust Co. If you expect to attend  the  meeting  in person,  you may
complete  and  sign  the  accompanying  form  of  proxy  and  return  it in  the
accompanying  envelope  prior to the  meeting  or you may vote in  person at the
meeting of the specified time.

Important   Notice  Regarding  the  Availability  of  Proxy  Materials  for  the
Shareholder Meeting to be held on April 16, 2008.

     The proxy statement is available at the following website:
     http://www.generalamericaninvestors.com/reports/2008_Proxy.pdf

     The annual report is available at the following website:
     http://www.generalamericaninvestors.com/reports/2007_GAMAnnualRpt.pdf

     The minute books of the Company,  containing the minutes of all meetings of
the Board of Directors since the last annual meeting of the  stockholders,  will
be  presented  to  the  meeting  and  will  be  open  to the  inspection  of the
stockholders.

     The close of  business  on  February  19, 2008 has been fixed as the record
date for the  determination  of the  stockholders  entitled to notice of, and to
vote at, the meeting.

     This notice and related proxy material is expected to be mailed on or about
February 25, 2008.

                                             By order of the Board of Directors,


                                             Carole Anne Clementi
                                             Secretary

GENERAL AMERICAN INVESTORS COMPANY, INC.
--------------------------------------------------------------------------------
100 PARK  AVENUE  NEW YORK, N.Y. 10017






                                 PROXY STATEMENT


                                                               February 22, 2008

This statement is furnished in connection with the  solicitation by the Board of
Directors of General American Investors Company,  Inc.  (hereinafter  called the
"Company" or the  "Corporation")  of proxies to be used at the annual meeting of
stockholders of the Company, to be held at The Century Association,  7 West 43rd
Street, New York City, N.Y., on Wednesday,  April 16, 2008 at 10:00 a.m. (and at
any  adjournments  or  postponements  thereof) for the purposes set forth in the
accompanying Notice of Annual Meeting of Stockholders.  Stockholders who execute
proxies  retain the right to revoke  them at any time,  insofar as they have not
been  exercised,  by  written  notice  to the  Secretary  of the  Company  or by
attendance at the Annual Meeting.

The close of business on February 19, 2008 has been fixed as the record date for
the determination of the stockholders entitled to notice of, and to vote at, the
meeting.

Proxies returned will be voted in accordance with the  instructions  thereon or,
if no instructions  are indicated,  in favor of the nominees named herein and to
approve the appointment of Ernst & Young LLP as auditors.

As of February 19, 2008, the Company had outstanding 31,573,058 shares of Common
Stock, $1 par value, and 8,000,000  shares of 5.95% Cumulative  Preferred Stock,
Series B ("Preferred Stock"), $1 par value, each share carrying one vote.

The Annual Report of the Company, including audited financial statements for the
fiscal year ended  December 31, 2007,  is enclosed in this  mailing.  This proxy
statement and form of proxy are first being mailed to  stockholders  on or about
February 25, 2008. The Company will provide,  without charge,  additional copies
of the Annual  Report to any  stockholder  upon  request by calling  Carole Anne
Clementi, Corporate Secretary of the Company, at 1-800-436-8401.

The Company intends to treat properly executed proxies that are marked "abstain"
or "withhold,"  including "broker  non-votes" (that is, a proxy from a broker or
nominee  indicating  that such  person has not  received  instructions  from the
beneficial owner or other person entitled to vote shares on a particular  matter
with respect to which the broker or nominee does not have discretionary  power),
as  present  for  purposes  of  determining  the  existence  of a quorum for the
transaction  of  business.  A quorum will consist of a majority of the shares of
stock of the  Company  entitled to vote on a matter at the  meeting,  present in
person or represented by proxy. The election of the Company's directors requires
a plurality of the votes of the shares  present or  represented  by proxy at the
meeting and  entitled to vote on the  election.  In the  election of  directors,
votes may be cast in favor of or withheld  with respect to any or all  nominees;
votes that are withheld and broker non-votes will be excluded  entirely from the
vote and will have no effect on the outcome of the vote. The affirmative vote of
the  holders  of a  majority  of the  outstanding  shares  present  in person or
represented  by proxy and  entitled  to vote on the matter is required to ratify
the  appointment  of Ernst & Young LLP. In  accordance  with  Delaware law, only
votes cast "for" a matter constitute affirmative votes. Accordingly,  votes that
are  withheld or  abstentions  from voting are not votes cast "for" a particular
matter, and such votes have the same effect as negative votes or votes "against"
a  particular  matter.  Because of the  routine  nature of the items of business
presented  in this proxy  statement,  the rules of The New York Stock  Exchange,
Inc. permit member brokers who do not receive  instructions from their customers
who are  beneficial  owners of the  Company's  shares to vote  their  customers'
shares on these items of business.

1


A.   Respecting the Election of Directors

     At the meeting, eleven directors are to be elected to hold office until the
annual meeting of stockholders next ensuing after their election and until their
respective  successors are elected and shall have qualified.  Nine directors are
to be  elected  by the  holders  of both  the  Company's  Common  Stock  and its
Preferred Stock,  voting together as a single class, and two directors are to be
elected only by the holders of the Company's  Preferred Stock.  Directors are to
be elected by a plurality of the vote of shares present in person or represented
by proxy at the meeting and entitled to vote on Directors.  Stockholders vote at
the meeting by casting  ballots (in person or by proxy)  which are  tabulated by
one or two  persons,  appointed  at the  meeting,  who  serve as  Inspectors  of
Election at the meeting and who execute an oath to discharge their duties. It is
the intention of the persons named in the accompanying form of proxy to nominate
and to vote such proxy for the  election of persons  named below or, if any such
persons  should be unable to serve,  for the  election  of such other  person or
persons as shall be  determined  by the persons named in the proxy in accordance
with their  judgment.  All of the persons named below are  incumbent  directors.
They have agreed to serve if elected.  Information in the following  table is as
of December 31, 2007.


                                    Directors
Name, Address(1), Age,
Position(s) with Company and        Principal Occupation(s)
Length of Time Served(2)            During Past 5 Years                       Other Directorships and Affiliations
---------------------------------------------------------------------------------------------------------------------------
                                                                 
Independent  Directors
---------------------------------------------------------------------------------------------------------------------------
Arthur G. Altschul, Jr.(3) (43)     Managing Member,                   Delta Opportunity Fund, Ltd., Director
Director since 1995                 Diaz & Altschul Capital            Diversified Natural Products, Inc., Director
                                      Management, LLC                  Kolltan Pharmaceuticals, Inc., Chairman, Board of Directors
                                     (private investment company)      Medicis Pharmaceutical Corporation, Director
                                                                       Medrium, Inc., Chairman, Board of Directors
                                                                       National Public Radio Foundation, Trustee
                                                                       Neurosciences Research Foundation, Trustee
                                                                       The Overbrook Foundation, Director

Rodney B. Berens (62)               Founding Partner,                  Agni Capital Management Ltd., Member of Investment Committee
Director since July 2007            Berens Capital Management LLC      Pendragon Capital Management Limited, Non-Executive Director
                                                                       Pierpont Morgan Library, Trustee and Member of Investment
                                                                         Committee
                                                                       The Woods Hole Oceanographic Institute, Trustee and Member of
                                                                         Investment Committee

Lewis B. Cullman (89)               Philanthropist                     Chess-in-the-Schools, Chairman Emeritus
Director since 1961                                                    Metropolitan Museum of Art, Honorary Trustee
                                                                       Museum of Modern Art, Vice Chairman,
                                                                         International Council and Honorary Trustee
                                                                       Neurosciences Research Foundation, Vice Chairman, Board
                                                                         of Trustees
                                                                       The New York Botanical Garden, Senior Vice Chairman,
                                                                         Board of Managers
                                                                       The New York Public Library, Trustee

Gerald M. Edelman (78)              Member, Professor and Chairman     Neurosciences Institute of the Neurosciences Research
Director since 1976                 of the Department of Neurobiology,   Foundation, Director and President
                                    The Scripps Research Institute     NGN Capital, Chairman, Advisory Board
                                                                       Promosome, LLC, Chairman, Scientific Advisory Board

John D. Gordan, III (62)            Partner,
Director since 1986                 Morgan, Lewis & Bockius LLP
                                      (lawyers)

Sidney R. Knafel(3) (77)            Managing Partner,                  IGENE Biotechnology, Inc., Director
Director since 1994                 SRK Management Company             Insight Communications Company, Inc., Chairman, Board
                                      (private investment company)       of Directors
                                                                       VirtualScopics, Inc., Director
                                                                       Vocollect, Inc., Director

Daniel M. Neidich (58)              Founding Partner and Co-Chief      Capmark, Director
Director since July 2007            Executive Officer,                 New York Child Study Center, Director
                                    Dune Capital Management LP         Prep for Prep, Director
                                    (since March 2005)                 Real Estate Roundtable, Director
                                                                       Urban Land Institute, Trustee

                                    Co-Head, Merchant Banking Division
                                    Chairman, Whitehall Investment Committee
                                    Member, Management Committee
                                    Goldman Sachs
                                    (prior to March 2005)


                                  (continued)
2



Name, Address(1), Age,
Position(s) with Company and        Principal Occupation(s)
Length of Time Served(2)            During Past 5 Years                       Other Directorships and Affiliations
---------------------------------------------------------------------------------------------------------------------------
                                                                 
D. Ellen Shuman (52)               Vice President and Chief            Bowdoin College, Trustee
Director since 2004                Investment Officer,                 Edna McConnell Clark Foundation, Investment Advisor
                                   Carnegie Corporation of             The Investment Fund for Foundations - TIFF Advisory
                                   New York                              Services, Director

Joseph T. Stewart, Jr. (78)        Corporate director and trustee      Foundation of the University of
Lead Independent Director                                                Medicine and Dentistry of New Jersey, Trustee
  since July 2007                                                      Marine Biological Laboratory, Member, Advisory Council
Director since 1987                                                    United States Merchant Marine Academy, Member,
                                                                         Board of Advisors
                                                                       United States Merchant Marine Academy Foundation, Trustee

Raymond S. Troubh (81)             Financial Consultant                Diamond Offshore Drilling, Inc., Director
Director since 1989                                                    Gentiva Health Services, Inc., Director
                                                                       Triarc Companies, Inc., Director


Interested Director
----------------------------------------------------------------------------------------------------------------------------
Spencer Davidson(4) (65)            Chairman, President and Chief      Medicis Pharmaceutical Corporation, Director
Chairman of the Board of              Executive Officer,               Neurosciences Research Foundation, Trustee
  Directors since April 2007        General American Investors
Director, President and Chief         Company, Inc.
  Executive Officer since 1995


1  The address of each director is: c/o General American Investors Company, Inc., 100 Park Avenue, 35th
   Floor, New York, NY 10017.
2  Each director is elected for a one year term of office.
3  Messrs. Altschul and Knafel have been designated as the Preferred Stock directors and are to be elected only by the holders of
   the Company's Preferred Stock.
4  Mr. Davidson is an "interested person," as defined in the Investment Company Act of 1940, as amended, because he is an officer of
   the Company.



                        Security Ownership of Management
     The following table sets forth certain  information as of December 31, 2007
with  respect to the  beneficial  ownership  of the  Company's  Common Stock and
Preferred  Stock by each person who is known to the  Company to have  beneficial
ownership of more than 5% of the outstanding shares of Common Stock or Preferred
Stock, each director, each officer and all directors and officers of the Company
as a group.


                                        Name of                         Amount and Nature of
    Title of Class                 Beneficial Owner                     Beneficial Ownership(1)             Percent of Class
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                         
    Common Stock            Arthur G. Altschul, Jr.                            690,192(2)                         2.19%
                            Rodney B. Berens                                     8,488                             .03
                            Lewis B. Cullman                                     6,923                             .01
                            Spencer Davidson                                 1,154,178(3)                         3.70
                            Gerald M. Edelman                                    3,037                             .00
                            John D. Gordan, III                                370,739(4)                         1.17
                            Sidney R. Knafel                                    45,434(5)                          .14
                            D. Ellen Shuman                                      1,380                             .00
                            Joseph T. Stewart, Jr.                              16,780                             .05
                            Raymond S. Troubh                                   54,112(6)                          .17
                            Craig A. Grassi                                        267                             .00
                            Maureen E. LoBello                                   1,468(8)                          .00
                            Eugene S. Stark                                        653(9)                          .00
                            Directors and Officers as a Group                1,820,144(10)                        5.76

3




                                        Name of                         Amount and Nature of
       Title of Class              Beneficial Owner                     Beneficial Ownership1             Percent of Class
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                         
       Preferred Stock      Arthur G. Altschul, Jr.                             98,600(11)                        1.23%
                            Spencer Davidson                                    87,400(12)                        1.09
                            John D. Gordan, III                                  1,000                             .01
                            Joseph T. Stewart, Jr.                               3,000(13)                         .04
                            Carole Anne Clementi                                   100                             .00
                            Peter P. Donnelly                                      400(14)                         .00
                            Craig A. Grassi                                      1,000                             .01
                            Maureen E. LoBello                                   1,008(8)                          .01
                            Directors and Officers as a Group                  105,108(15)                        1.31

1   Unless indicated, the person holding the shares has sole voting and dispositive power over all shares shown.
2   Includes 154,783 share of Common Stock (.49% of the class) over which Mr. Altschul has shared voting power, 225,128 shares
    of Common Stock (.71% of the class) over which Messrs. Altschul and Davidson have shared voting and dispositive power and
    308,138 shares of Common Stock (.98% of the class) over which Mr. Altschul has shared voting power and over which Mr.
    Davidson has shared voting and dispositive power.
3   Includes 225,128 shares (.71% of the class) over which Messrs. Altschul and Davidson have shared voting and dispositive
    power and 308,138 shares (.98% of the class) over which Mr. Altschul has shared voting power and over which Mr. Davidson
    has shared voting and dispositive power.
4   Includes 359,733 shares  (1.13% of the class) over which Mr. Gordan has shared voting and dispositive power.  In addition,
    his holdings include 2,379 shares (.00% of the class) owned by Mr. Gordan's wife in an individual retirement account in which
    he disclaims any beneficial ownership.
5   Includes 4,632 shares (.01% of the class) in which Mr. Knafel has voting power and disclaims beneficial ownership.
6   Includes 10,357 shares (.03% of the class) held in a limited partnership in which Mr. Troubh has a 42% interest and of which he
    is the general partner.
7   Shares owned by Mr. Grassi's nephew in a custodial account in which he disclaims any beneficial ownership.
8   Shares owned by Mrs. LoBello's mother in a family trust in which she disclaims any beneficial ownership.
9   Shares owned by Mr. Stark and his wife in a joint tenancy account.
10  Total excludes duplication of 533,266 shares (1.69% of the class) over which both Mr. Altschul and Mr. Davidson share joint vot-
    ing and/or dispositive power.
11  Includes 11,200 shares (.14% of the class) over which Mr. Altschul has shared voting power, 75,400 shares  (.94% of the class)
    over which Messrs. Altschul and Davidson have shared voting and dispositive power, and 12,000 shares (.15% of the class)
    over which Mr. Altschul has shared voting power and over which Mr. Davidson has shared voting and dispositive power.
12  Includes 75,400 shares  (.94% of the class) over which Messrs. Altschul and Davidson have shared voting and dispositive
    power, and 12,000 shares (.15% of the class) over which Mr. Altschul has shared voting power and over which Mr. Davidson
    has shared voting and dispositive power.
13  Shares owned by Mr. Stewart's wife in which he disclaims any beneficial ownership.
14  Includes 200 shares (0% of the class) owned by Mr. Donnelly's wife in which he disclaims any beneficial ownership.
15  Total excludes duplication of 87,400 shares (1.09% of the class) over which both Mr. Altschul and Mr. Davidson share joint vot-
    ing and/or dispositive power.


     In addition to the holdings  reflected in the foregoing  table, the Company
has the power to vote 598,038 shares of Common Stock (1.89%) held by the trustee
for the Company's Employees' Thrift Plan, as described below.



                         Director Share Ownership Table

     The  dollar  range  of the  value  of  equity  securities  of  the  Company
beneficially owned by each Director as of December 31, 2007 is as follows:


     Dollar Range of Equity
         Name of Director                                                             Securities in the Company
------------------------------------------------------------------------------------------------------------------------------------
         Independent Directors
                                                                                         
         Arthur G. Altschul, Jr.                                                            Over $100,000
         Rodney B. Berens                                                                   Over $100,000
         Lewis B. Cullman                                                                   Over $100,000
         Gerald M. Edelman                                                                  Over $100,000
         John D. Gordan, III                                                                Over $100,000
         Sidney R. Knafel                                                                   Over $100,000
         D. Ellen Shuman                                                                    $10,001-$50,000
         Joseph T. Stewart, Jr.                                                             Over $100,000
         Raymond S. Troubh                                                                  Over $100,000

         Interested Director

         Spencer Davidson                                                                   Over $100,000

4


                Meetings of Committees of the Board of Directors

     During 2007 the Company's Board of Directors held six meetings.

     The Audit  Committee  consists of the following  directors:  Chairman:  Mr.
Sidney R. Knafel, Mr. Arthur G. Altschul, Jr., Mr. Lewis B. Cullman, Mr. John D.
Gordan,  III and Ms.  D.  Ellen  Shuman.  These  directors  are  independent  of
management and the Company.  Each of them is also  "independent" as such term is
defined in The New York  Stock  Exchange  listing  standards  applicable  to the
Company.  The organization and  responsibilities  of the Audit Committee are set
forth in the  Audit  Committee  Charter  located  on the  Company's  website  at
www.generalamericaninvestors.com.  Generally,  the Audit  Committee  assists the
Board of Directors in its  oversight of the Company's  accounting  and financial
reporting  and  internal  controls,  the  independent  audit  of  the  Company's
financial  statements,  the  selection  of  the  independent  auditors  and  the
evaluation of the  independence of the independent  auditors.  The Report of the
Audit  Committee is set forth as an Exhibit on page 10. The Audit  Committee met
three times  during the fiscal  year,  on January 17, July 11, and  December 12,
2007, and once after the end of the fiscal year, on January 16, 2008.

     The Compensation  Committee consists of the following directors:  Chairman:
Mr. Joseph T. Stewart,  Jr., Mr. Arthur G. Altschul,  Jr., Mr. Sidney R. Knafel,
and Mr.  Raymond S. Troubh;  and Mr. Lewis B. Cullman and Dr. Gerald M. Edelman,
alternates.  Generally, the Compensation Committee reviews the operations of the
Company and performance and contributions  made during each year by its officers
and  employees,   reviews   management   proposals  for  year-end   supplemental
compensation and levels of compensation for the ensuing year, reviews comparable
operating and  compensation  data of other companies in the investment  industry
including  information  and trends provided by an outside  consulting  firm, and
makes recommendations on matters of compensation to the Board of Directors.  The
Committee met once during the fiscal year, on December 12, 2007.

     The Compliance Committee consists of the following directors: Chairman: Ms.
D. Ellen Shuman,  Dr. Gerald M. Edelman,  Mr. John D. Gordan, III and Mr. Joseph
T.  Stewart,  Jr.  The  organization  and  responsibilities  of  the  Compliance
Committee  are set forth in the  Compliance  Committee  Charter  located  on the
Company's website at www.generalamericaninvestors.com.  The Compliance Committee
was  established  to  oversee  management's  development  and  maintenance  of a
compliance  policies and procedures manual, and to review and monitor compliance
with those policies and procedures on an ongoing basis. The Compliance Committee
meets at least  annually to review with  management  the Company's  policies and
procedures  designed  to prevent  violations  of Federal  Securities  Laws.  The
Committee  met twice during the fiscal year, on October 10, 2007 and October 15,
2007.

     The Executive Committee consists of the following directors:  Chairman: Mr.
Joseph T. Stewart,  Jr., Mr.  Spencer  Davidson (an  "interested  person" of the
Company) and Dr. Gerald M. Edelman; and Mr. John D. Gordan, III, alternate.  The
Executive  Committee  has the  authority  to exercise the powers of the Board of
Directors in the  management of the business and affairs of the Company when the
Board is not in session. The Committee did not meet during the fiscal year.

     The Nominating  Committee  consists of the following  directors (all of the
Company's directors who are not "interested  persons" of the Company, as defined
in  Section  2(a)(19)  of the  Investment  Company  Act of  1940,  as  amended):
Chairman:  Mr.  Arthur G.  Altschul,  Jr., Mr. Lewis B.  Cullman,  Dr. Gerald M.
Edelman, Mr. John D. Gordan, III, Mr. Sidney R. Knafel, Ms. D. Ellen Shuman, Mr.
Joseph  T.  Stewart,  Jr.  and Mr.  Raymond  S.  Troubh.  The  organization  and
responsibilities  of the  Nominating  Committee are set forth in the  Nominating
Committee     Charter     located     on    the     Company's     website     at
www.generalamericaninvestors.com.   Generally,   the  Nominating   Committee  is
responsible  for  directing  the process  whereby  individuals  are selected and
nominated  to serve as  directors  of the  Company.  This  includes  canvassing,
recruiting,  interviewing  and soliciting  independent  director  candidates and
making  recommendations to the Board with respect to individuals to be nominated
to serve as  directors.  In  addition,  the  Committee  will  consider  nominees
recommended by, and respond to related  inquiries  received from,  stockholders.
The Committee does not expect to consider self-nominating stockholders. Criteria
associated with candidates include factors such as judgment,  skill,  diversity,
experience,  the interplay of the candidate's  experience with the experience of
other board members and the extent to which the  candidate  would be a desirable
addition  to  the  board.  All   recommendations   of  a  nominee  must  include
biographical  data regarding the nominee and the  qualifications of the nominee,
as well as the basis on which a nominee is or is not an  "interested  person" of
the Company.  Recommendations  of nominees should be submitted in writing to the
Chairman of the Nominating Committee at the office of the Company. The Committee
met once during the fiscal year, on January 17, 2007.

     The Pension Committee consists of the following  directors:  Chairman:  Mr.
John D. Gordan,  III, Mr.  Lewis B.  Cullman,  Dr.  Gerald M.  Edelman,  and Mr.
Raymond S. Troubh;  and Mr.  Sidney R. Knafel and Mr.  Joseph T.  Stewart,  Jr.,
alternates.  The organization and  responsibilities of the Pension Committee are
set forth in the Pension  Committee  Charter located on the Company's website at
www.generalamericaninvestors.com.    Generally,   the   Pension   Committee   is
responsible   for   oversight   of  the   investment   management   and  general
administration  of the Company's  Employees'  Retirement  and Thrift Plans.  The
Committee  met twice  during the fiscal  year,  on January 17, 2007 and July 11,
2007.

5

     During 2007, each Director,  attended at least seventy-five  percent of the
aggregate  number of meetings of the Board of Directors and of the  committee(s)
on which he/she serves except  Messrs.  Berens and Neidich,  who attended two of
the three meetings held during their tenure.

             Stockholder Communications with the Board of Directors

     The Board of Directors provides a process for the Company's Stockholders to
send  communications  to the Board.  This can be  accomplished  by  addressing a
communication  to the Board of Directors or to one or more individual  Directors
at the office of the Company.  Items marked "personal and confidential" would be
forwarded to the addressee, unopened; otherwise,  communications would be opened
and reviewed by the  Company's  Corporate  Secretary  who would draft a response
with the assistance of other corporate officers and individual Directors (or the
entire  Board),  as deemed  necessary.  Copies of  responses,  together with the
related original  communication,  would be provided to each member of the Board,
the Chairman of the Board or individual Directors, as deemed appropriate.

     All  Directors  are   encouraged  to  attend  the  annual  meeting  of  the
Stockholders of the Company.  Last year, at the Company's annual meeting held on
April 11, 2007, all of the Directors were in attendance.

             Section 16(a) Beneficial Ownership Reporting Compliance

     Section 16(a) of the Securities Exchange Act of 1934, as amended,  requires
the  Company's  officers and  directors and certain other persons to file timely
certain  reports  regarding  ownership  of, and  transactions  in, the Company's
securities with the Securities and Exchange  Commission.  Copies of the required
filings must also be furnished to the Company.

     Based  solely  on its  review of such  forms  received  by it,  or  written
representations from certain reporting persons, the Company believes that during
2007 all applicable Section 16(a) filing requirements were met.

                                    Officers

     Officers  are  elected  each year by the Board of  Directors  at its annual
organization  meeting in April. In addition to Mr. Spencer  Davidson,  Chairman,
President and Chief Executive  Officer of the Company,  information with respect
to whom is set forth  above,  the current  officers  of the Company  include the
following.  The  address of each  officer  is: c/o  General  American  Investors
Company, Inc., 100 Park Avenue, 35th Floor, New York, NY 10017.

     Ms. Carole Anne  Clementi,  61,  Secretary  since  October 1994 and,  prior
thereto, Assistant Secretary from July 1993, has been an employee since 1982.

     Mr. Peter P.  Donnelly,  59,  Vice-President  since January 1991 and, prior
thereto,  Assistant  Vice-President  from January 1984,  has been the securities
trader since 1974.

     Mr. Craig A. Grassi, 39, Assistant  Vice-President  since January 2005, has
been an employee since 1991.

     Ms. Maureen E. LoBello,  57,  Assistant  Secretary  since January 2005, has
been an employee since 1992.

     Dr. Sally A. Lynch,  48,  Vice-President  since January  2006,  has been an
employee since May 1997. Dr. Lynch is principally  responsible for securities in
the biotechnology and pharmaceutical industries.

     Ms. Diane G.  Radosti,  55, has been  Treasurer  since January 1990 and was
appointed  Principal  Accounting Officer in 2003. She has been an employee since
1980.

     Mr.  Eugene S.  Stark,  50,  has been  Vice-President,  Administration  and
Principal  Financial  Officer  since  July 2005.  He has been  Chief  Compliance
Officer since January 2006.  Prior thereto,  he was Chief  Financial  Officer of
Prospect Energy Corporation (2005) and a Vice-President of Prudential Financial,
Inc. (1987 to 2004).

     Mr. Jesse R. Stuart,  41,  Vice-President  since January 2006,  has been an
employee  since March 2003. Mr. Stuart is  principally  responsible  for general
industry  securities  analysis.  Prior  thereto he was a  portfolio  manager and
equity   analyst  at  Scudder,   Stevens  and  Clark  and  successor   companies
(1996-2003).

     Mr. Andrew V. Vindigni,  48, Senior Vice-President since December 2006 and,
prior thereto,  Vice-President since September 1995 and Assistant Vice-President
from January 1991, has been a security  analyst with the Company since 1988. Mr.
Vindigni is principally  responsible  for  securities in the financial  services
industry.

6


                             Executive Compensation

     The following table sets forth the  compensation  received during 2007 from
the Company by its three highest-paid officers and by its directors.


                                                                                                              Pension or
                                                                                                              retirement
                                                                                                Aggregate   benefits accrued
Name of individual                Position                                                     compensation   during 2007(1)
-----------------------------------------------------------------------------------------------------------------------------
                                                                                                       
Spencer Davidson                Chairman, President and Chief Executive Officer, Director (D) $3,350,000        $72,000
Jesse Stuart                    Vice-President                                                 1,900,000         36,000
Andrew V. Vindigni              Senior Vice-President                                          1,500,000         48,000
Arthur G. Altschul, Jr.         Director (A)(B)(E)                                                27,500            -
Rodney B. Berens                Director                                                          10,000            -
Lewis B. Cullman                Director (A)(E)(F)                                                26,250            -
Gerald M. Edelman               Director (C)(D)(E)(F)                                             25,000            -
John D. Gordan, III             Director (A)(C)(E)(F)                                             31,250            -
Sidney R. Knafel                Director (A)(B)(E)                                                27,500            -
Daniel M. Neidich               Director                                                          10,000            -
D. Ellen Shuman                 Director (A)(C)(E)                                                28,250            -
Joseph T. Stewart, Jr.          Director (B)(C)(D)(E)                                             23,250            -
Raymond S. Troubh               Director (B)(E)(F)                                                26,250            -

(A) Member of Audit Committee
(B) Member of Compensation Committee
(C) Member of Compliance Committee
(D) Member of Executive Committee
(E) Member of Nominating Committee
(F) Member of Pension Committee

(1)  The amounts  shown in this column  represent  the  Company's  payments made
     during 2007 to the trustee of the  Company's  Employees'  Thrift  Plan,  as
     described below, or accounting  reserves  established during 2007 under the
     Company's  Excess  Contribution  Plan, as described below, on behalf of the
     respective individuals.


     During  2007,  each  director  who was not a paid  officer  of the  Company
received a fee of $15,000 as an annual retainer,  a fee of $1,250 for attendance
at each Directors' meeting and $1,250 for each Committee meeting which he or she
attended in his or her  capacity  as a Director  ($750 if  participation  was by
telephone).

     With respect to the Company's  Employees'  Thrift Plan, the Company matches
150% of an  employee's  contributions  up to 8% of  basic  salary  to the  plan.
Company  contributions  are invested in shares of the Company's common stock. An
employee's  interest in Company  contributions  to his  account is fully  vested
after  six  years  of  service.  Partial  vesting  begins  after  two  years  of
participation in the plan. All employees,  including  officers,  are eligible to
participate in the Thrift Plan after six months of service with the Company.

     The  Company   has  an   Employees'   Retirement   Plan  which  is  broadly
characterized as a defined benefit plan. The Company  contributes to the trustee
for the plan annual costs which include  actuarially  determined current service
costs and amortization of prior service costs.  Retirement benefits are based on
final  average  earnings  (basic  salary  and,  beginning  in 2000,  bonuses for
non-highly compensated employees, exclusive of overtime,  commissions,  pension,
retainer fees,  fees under contracts or any other forms of additional or special
compensation,  for the five  consecutive  years in which the participant had the
highest basic salary during the last ten years of service) and years of credited
service,  less an offset  for  social  security  covered  compensation,  plus an
additional  amount  equal  to $150  for  each  year  of  credited  service.  All
employees,  including officers,  over age 21 commence  participation in the plan
after one year of  service  and are  fully  vested  after six years of  service.
Partial vesting begins after two years of service.  Participants are eligible to
receive normal retirement  benefits at age 65. In certain  instances,  a reduced
benefit may begin upon retirement between ages 55 and 65.

     The  following  table  shows  the  estimated  annual  retirement   benefits
(including  amounts  attributable  to the  Company's  Excess  Benefit  Plan,  as
described below),  which are subject to a deduction based on a portion of social
security  covered  compensation,  payable on a straight life annuity  basis,  at
normal  retirement  date  to all  eligible  employees,  including  officers,  in
specified compensation and years-of-service classifications:

7



                                                    Estimated Annual Benefits Based Upon Years of Credited Service
                                                    -----------------------------------------------------------------
     Final Average                                  10                20              30                 40
       Earnings
                                                                                          
       $100,000                                  $17,920           $35,840          $53,760           $66,250
        200,000                                   34,210            68,420          102,630           125,980
        300,000                                   50,500           101,000          151,500           185,710
        400,000                                   66,790           133,580          200,370           245,440
        500,000                                   83,080           166,160          249,240           305,170
        600,000                                   99,370           198,740          298,110           364,900


     For each of the officers of the Company listed in the compensation table on
page 7, the following  indicates his years of credited  service in the Company's
Retirement  Plan and basic  salary for 2007.  Spencer  Davidson  (13)  $600,000,
Andrew V. Vindigni (19) $400,000 and Jesse Stuart (4) $300,000.

     The Company also has Excess  Contribution  and Excess Benefit Plans.  Under
such plans,  the Company may  establish  accounting  reserves and make  payments
directly to selected  participants in the Company's Thrift and Retirement Plans,
respectively,  to the extent the levels of  contributions  or benefits  for such
participants under such plans are limited by sections 415, 416 and/or 401(a)(17)
of the  Internal  Revenue  Code.  Such  benefits  commence at the time  benefits
commence under the related  tax-qualified plan. Messrs.  Davidson,  Vindigni and
Stuart are  participants  in both the  Excess  Contribution  and Excess  Benefit
Plans.

B. Respecting the Ratification and Approval of Appointment of Auditors by the
   Board of Directors

     Proposal  (B) set forth in the  accompanying  Notice of Annual  Meeting  of
Stockholders  is the  ratification  or  rejection  of the  action  taken  in the
following resolutions  unanimously adopted by the Board of Directors (a majority
of  non-interested  directors voting in person) approving the appointment by the
Audit  Committee  of the  Company  of the  firm of  Ernst & Young  LLP to be the
auditors of the Company for the fiscal year ending December 31, 2008.

          "RESOLVED,  that the appointment by the Audit Committee of the firm of
     Ernst & Young LLP to be the  auditors  of the Company  with  respect to its
     operations for the year 2008 be and it hereby is approved; and further

          "RESOLVED,  that such auditors be and they hereby are  authorized  and
     instructed  to conduct an audit,  in  accordance  with  auditing  standards
     generally accepted in the United States, of the financial statements of the
     Company as of and for the year ending December 31, 2008; and further

          "RESOLVED,  that such auditors be and they hereby are  authorized  and
     instructed  to conduct a review,  in  accordance  with the standards of the
     Public Company Accounting  Oversight Board (United States),  of the interim
     financial  statements  of the  Company as of and for the six months  ending
     June 30, 2008; and further

          "RESOLVED,  that such appointment shall terminate  (without penalty to
     the  Company) in the event that it shall be rejected at the annual  meeting
     of the stockholders of the Company in 2008; and further

          "RESOLVED,  that such appointment shall terminate  (without penalty to
     the  Company) if a majority  (as defined in the  Investment  Company Act of
     1940) of the  outstanding  voting  securities of the Company at any meeting
     called  for the  purpose  shall vote to  terminate  such  appointment;  and
     further

          "RESOLVED,  that the report of such auditors  expressing their opinion
     with respect to the financial  statements above described and the report of
     such auditors with respect to the review above described shall be addressed
     to the Board of Directors of the Company and to the stockholders thereof."

          While the rules under the Investment  Company Act of 1940, as amended,
     would permit the Company not to submit to stockholders  the ratification of
     the selection of Ernst & Young LLP as the Company's  auditors,  it is being
     done because it continues the Company's long-standing practice to do so and
     the Company believes that it is good corporate practice.


                                   Audit Fees

     The  aggregate  fees  paid and  accrued  by the  Company  for  professional
services rendered by its independent auditors,  Ernst & Young LLP, for the audit
of the Company's  annual  financial  statements  and the review of the Company's
semi-annual  financial  statements  for 2007 and 2006 were  $91,000 and $80,600,
respectively.

                               Audit-Related Fees

     The  aggregate  fees  paid or  accrued  by the  Company  for  audit-related
professional  services  rendered  by Ernst & Young  LLP for  2007 and 2006  were
$28,800 and $25,400,  respectively.  Such services and related fees for 2007 and
2006 included:  performance of agreed upon procedures  relating to the preferred
stock basic  maintenance  reports ($7,300 and $6,400,  respectively),  review of
quarterly employee security transactions and issuance of report thereon ($17,000
and $15,000,  respectively) and other audit-related services ($4,500 and $4,000,
respectively).

8


                                    Tax Fees

     The aggregate fees paid or accrued by the Company for professional services
rendered by Ernst & Young LLP for the review of the Company's federal, state and
city  income tax  returns  and excise  tax  calculations  for 2007 and 2006 were
$20,600 and $13,500, respectively.

                                 All Other Fees

     No such fees were  billed to the  Company  by Ernst & Young LLP for 2007 or
2006.

     The   aggregate   fees  paid  or  accrued  by  the  Company  for  non-audit
professional  services rendered by Ernst & Young LLP to the Company for 2007 and
2006 were $49,400 and $38,900, respectively.


                       Audit Committee Pre-Approval Policy
     All services to be  performed  for the Company by Ernst & Young LLP must be
pre-approved by the Audit Committee. All services performed during 2007 and 2006
were pre-approved by the Committee.

     A  representative  of Ernst & Young LLP will  attend the Annual  Meeting to
respond  to  appropriate  questions  and  will  have the  opportunity  to make a
statement.  Stockholders who wish to submit questions in advance to the auditors
may do so in writing to Mr. Christopher D. Votta, Partner,  Ernst & Young LLP, 5
Times Square, New York, NY 10036.


C.  Respecting Other Matters Which May Come Before the Meeting

     The Board of Directors  of the Company  does not know of any other  matters
which may come before the meeting.  However,  if any other matters, of which the
Board of Directors is not now aware,  are properly  presented  for action before
the meeting,  including any questions as to the  adjournment or  postponement of
the meeting,  it is the intention of the persons named in the accompanying  form
of proxy to vote such proxy in accordance with their judgment on such matters.


                     --------------------------------------

     In order for a stockholder  proposal to be considered  for inclusion in the
Company's  proxy material  relating to its 2009 annual meeting of  stockholders,
the stockholder proposal must be received by the Company no later than October
31, 2008, and must comply with certain other rules and  regulations  promulgated
by the Securities and Exchange Commission.

     In accordance  with a notice sent to certain  stockholders  of the Company,
who share a single  address,  only one copy of the Proxy  Statement and our 2007
Annual  Report  is  being  sent to that  address  unless  we  received  contrary
instructions  from any  stockholder  at that address.  This  practice,  known as
"householding,"  is designed to reduce our printing and postage costs.  However,
if any stockholder residing at such an address wishes to receive a separate copy
of this Proxy  Statement or our 2007 Annual Report,  he or she may contact us at
General American Investors Company, Inc., 100 Park Avenue, 35th Floor, New York,
NY  10017,  Attn:  Carole  Anne  Clementi,   Corporate   Secretary,   telephone:
1-800-436-8401, e-mail:  InvestorRelations@gainv.com,  and we will deliver those
documents to such  stockholder  promptly upon  receiving  the request.  Any such
stockholder  may also contact Ms.  Clementi,  if he or she would like to receive
separate proxy  statements and annual reports in the future and to revoke his or
her consent to householding.  If any stockholder  revokes his or her consent, we
will begin sending such stockholder  individual copies of these documents within
30 days after we receive the revocation  notice.  If you are receiving  multiple
copies of our annual report and proxy statement, you may request householding in
the future by contacting our Corporate Secretary.

     The persons named as appointees for the 2009 annual meeting of stockholders
will  have  discretionary  authority  to  vote  on  any  matter  presented  by a
stockholder for action at that meeting unless the Company receives notice of the
matter  by  January  14,  2009,  in  which  case  these  persons  will  not have
discretionary voting authority except as provided in the Securities and Exchange
Commission's rules governing stockholder proposals.

     The expense of the  solicitation  of proxies for this meeting will be borne
by the Company.  In addition to mailing copies of this material to stockholders,
the Company  will request  persons who hold stock for others,  in their names or
custody or in the names of nominees, to forward copies of such material to those
persons for whom they hold stock of the Company and to request authority for the
execution  of the  proxies.  The Company may  reimburse  such  persons for their
out-of-pocket expenses incurred in connection therewith.

     It is important that proxies be returned promptly. Therefore,  stockholders
who do not expect to attend in person  and who wish their  stock to be voted are
urged to fill in, sign and return the accompanying form of proxy in the enclosed
envelope.
                     --------------------------------------
9



                                                                         EXHIBIT


                        Report of the Audit Committee of
       The Board of Directors of General American Investors Company, Inc.

     The  purposes  of the  Company's  Audit  Committee  are  set  forth  in the
Committee's  Charter.  The purposes include  assisting the Board of Directors in
its  oversight  of  the  Company's  financial  reporting  process  and  internal
controls,  the Company's financial statements and the selection of the Company's
independent auditors.  Management,  however, is responsible for the preparation,
presentation  and  integrity  of the  Company's  financial  statements,  and the
independent auditors are responsible for planning and carrying out proper audits
and reviews.


     In connection with the audited financial  statements as of and for the year
ended  December 31, 2007  included in the  Company's  Annual Report for the year
ended December 31, 2007 (the "Annual Report"),  at a meeting held on January 16,
2008,  the Audit  Committee  considered  and  discussed  the  audited  financial
statements with management and the independent auditors, and discussed the audit
of such financial statements with the independent auditors.

     In addition,  the Audit Committee  discussed with the independent  auditors
the quality,  and not just the acceptability under generally accepted accounting
principles,  of the accounting principles applied by the Company, and such other
matters  brought to the  attention  of the Audit  Committee  by the  independent
auditors  required by Statement  of Auditing  Standards  No. 61, as amended,  as
adopted by the Public  Company  Accounting  Oversight  Board in Rule 3200T.  The
Audit  Committee  also  received  from  the  independent  auditors  the  written
disclosures and the letter required by Independence Standards Board Standard No.
1, as adopted by the Public Accounting Oversight Board in Rule 3600T, considered
whether the  provision  of  nonaudit  services  by the  independent  auditors is
compatible with  maintaining the auditors'  independence  and discussed with the
auditors the auditors' independence.

     The members of the Audit  Committee are not  professionally  engaged in the
practice  of  auditing  or  accounting  and are not  experts  in the  fields  of
accounting or auditing, including in respect of auditor independence.  Moreover,
the  Committee  relies on and  makes no  independent  verification  of the facts
presented  to it or  representations  made  by  management  or  the  independent
auditors.  Accordingly,  the Audit  Committee's  oversight  does not  provide an
independent  basis to  determine  that  management  has  maintained  appropriate
accounting and financial reporting principles and policies, or internal controls
and procedures,  designed to assure  compliance  with  accounting  standards and
applicable   laws  and   regulations.   Furthermore,   the   Audit   Committee's
considerations and discussions referred to above do not assure that the audit of
the  Company's  financial  statements  has been carried out in  accordance  with
auditing standards  generally accepted in the United States,  that the financial
statements  are presented in accordance  with  accounting  principles  generally
accepted  in the  United  States  or that  the  Company's  auditors  are in fact
"independent."

     Based on its  consideration  of the audited  financial  statements  and the
discussions  referred to above with management and the independent  auditors and
subject  to the  limitations  on the  responsibilities  and  role  of the  Audit
Committee set forth in the Committee's  Charter and those discussed  above,  the
Committee  recommended  to the Board of  Directors  that the  audited  financial
statements be included in the Company's Annual Report.

     Sidney R. Knafel, Chairman
     Arthur G. Altschul, Jr.
     Lewis B. Cullman
     John D. Gordan, III
     D. Ellen Shuman


     January 16, 2008

10



                                  COMMON STOCK
                    GENERAL AMERICAN INVESTORS COMPANY, INC.

                                100 Park Avenue
                               New York, NY 10017

          THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS

The undersigned  hereby appoints Spencer  Davidson,  Joseph T. Stewart,  Jr. and
Eugene S. Stark as Proxies, each with full power to appoint his substitute,  and
hereby  authorizes  each of them to  represent  and  vote as  designated  on the
reverse  side,  all  shares  of  Common  Stock of the  above  Company  which the
undersigned is entitled to vote, at the Annual Meeting of  Stockholders on April
16, 2008, and at any adjournment  thereof.  The undersigned hereby  acknowledges
receipt  of the  2008  Notice  of  Annual  Meeting  of  Stockholders  and of the
accompanying Proxy Statement.

                (Continued and to be signed on the reverse side)
--------------------------------------------------------------------------------
COMMENTS:

--------------------------------------------------------------------------------



                       ANNUAL MEETING OF STOCKHOLDERS OF

                    GENERAL AMERICAN INVESTORS COMPANY, INC.

                                 April 16, 2008

                                  COMMON STOCK
                           PROXY VOTING INSTRUCTIONS

MAIL - Date, sign and mail your proxy card in the   ----------------------------
----   envelope provided as soon as possible.       |COMPANY NUMBER |          |
                             -or-                   ----------------------------
TELEPHONE - Call toll-free 1-800-PROXIES            |ACCOUNT NUMBER |          |
--------- (1-800-776-9437) in the United States     ----------------------------
or 1-718-921-8500 from foreign countries and follow |               |          |
the instructions. Have your proxy card              ----------------------------
available when you call.
                             -or-
INTERNET - Access "www.voteproxy.com" and follow
-------- the on-screen instructions.  Have your
proxy card available when you access the web page.
                             -or-
IN PERSON - You may vote you shares in person by
--------- attending the Annual Meeting.
--------------------------------------------------------------------------------
You may enter your proxy voting instructions at 1-800-PROXIES in the United
States or 1-718-921-8500 from foreign countries or www.voteproxy.com up until
11:59 PM Eastern Time the day before the cut-off or meeting date.
--------------------------------------------------------------------------------
|  Please detach along perforated line and mail in the envelope provided IF  |
V  you are not voting via telephone or the Internet.                         V
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
     THE BOARD OF DIRECTORS  RECOMMENDS A VOTE "FOR ALL  NOMINEES" IN ITEM 1 AND
THE BOARD OF DIRECTORS  AND THE AUDIT  COMMITTEE  RECOMMEND A VOTE "FOR" ITEM 2.
PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR
VOTE IN BLUE OR BLACK INK AS SHOWN HERE [X]
--------------------------------------------------------------------------------
1. Election of the following nominees as Directors:

                                   NOMINEES:
[ ]FOR ALL NOMINEES               ()Mr. Berens
                                  ()Mr. Cullman
[ ]WITHHOLD AUTHORITY             ()Mr. Davidson
   FOR ALL NOMINEES               ()Dr. Edelman
                                  ()Mr. Gordan
[ ]FOR ALL EXCEPT                 ()Mr. Neidich
  (See instructions               ()Ms. Shuman
   below)                         ()Mr. Stewart
                                  ()Mr. Troubh

INSTRUCTION: To withhold authority to vote for any individual nominee(s),  mark
----------- "FOR ALL EXCEPT" and fill in the circle next to each nominee you
wish to withhold, as shown here:(o)
-------------------------------------------------------------------------------

2. Ratification of the selection of the Ernst & Young LLP as auditors.
                                                          FOR  AGAINST  ABSTAIN
                                                          [ ]    [ ]      [ ]
--------------------------------------------------------------------------------
3. In their  discretion,  the  appointees  are authorized to vote upon any other
matters which may properly come before the meeting or any adjournments thereof.
--------------------------------------------------------------------------------

The shares  represented  by this proxy will be voted as  directed  by the share-
holder. If no direction is given when the duly executed proxy is returned,  such
shares will be voted "FOR ALL  NOMINEES"  in Item 1 and "FOR" Item 2.

TO INCLUDE ANY COMMENTS, USE THE COMMENTS BOX ON THE REVERSE SIDE OF THIS CARD.
--------------------------------------------------------------------------------




--------------------------------------------------------------------------------
To change the address on your account, please check the box at right and  [  ]
indicate your new address in the address space above.  Please note that
changes to the registered name(s) on the account may not be submitted via
this method.
--------------------------------------------------------------------------------

Signature of Stockholder____________________ Date:______________________________

Signature of Stockholder____________________ Date:______________________________

    Note:  Please sign exactly as your name or names appear on this Proxy.  When
           shares are held jointly, each holder should sign.  When signing as
           executor, administrator, attorney, trustee or guardian, please give
           full title as such.  If the signer is a corporation, please sign full
           corporate name by duly authorized officer, giving full title as such.
           If signer is a partnership, please sign in partnership name by
           authorized person.


                                 PREFERRED STOCK
                    GENERAL AMERICAN INVESTORS COMPANY, INC.

                              100 Park Avenue
                               New York, NY 10017

          THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS

The undersigned  hereby appoints Spencer  Davidson,  Joseph T. Stewart,  Jr. and
Eugene S. Stark as Proxies, each with full power to appoint his substitute,  and
hereby  authorizes  each of them to  represent  and  vote as  designated  on the
reverse side, all shares of 5.95% Cumulative  Preferred  Stock,  Series B of the
above Company which the  undersigned  is entitled to vote, at the Annual Meeting
of  Stockholders  on  April  16,  2008,  and at  any  adjournment  thereof.  The
undersigned hereby acknowledges  receipt of the 2008 Notice of Annual Meeting of
Stockholders and of the accompanying Proxy Statement.

                (Continued and to be signed on the reverse side)
--------------------------------------------------------------------------------
COMMENTS:

--------------------------------------------------------------------------------



                       ANNUAL MEETING OF STOCKHOLDERS OF

                    GENERAL AMERICAN INVESTORS COMPANY, INC.

                                 April 16, 2008

                                 PREFERRED STOCK
                           PROXY VOTING INSTRUCTIONS

MAIL - Date, sign and mail your proxy card in the   ----------------------------
----   envelope provided as soon as possible.       |COMPANY NUMBER |          |
                             -or-                   ----------------------------
TELEPHONE - Call toll-free 1-800-PROXIES            |ACCOUNT NUMBER |          |
--------- (1-800-776-9437) in the United States     ----------------------------
or 1-718-921-8500 from foreign countries and follow |               |          |
the instructions. Have your proxy card              ----------------------------
available when you call.
                             -or-
INTERNET - Access "www.voteproxy.com" and follow
-------- the on-screen instructions.  Have your
proxy card available when you access the web page.
                             -or-
IN PERSON - You may vote you shares in person by
--------- attending the Annual Meeting.
--------------------------------------------------------------------------------
You may enter your proxy voting instructions at 1-800-PROXIES in the United
States or 1-718-921-8500 from foreign countries or www.voteproxy.com up until
11:59 PM Eastern Time the day before the cut-off or meeting date.
--------------------------------------------------------------------------------
|  Please detach along perforated line and mail in the envelope provided IF  |
V  you are not voting via telephone or the Internet.                         V
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
     THE BOARD OF DIRECTORS  RECOMMENDS A VOTE "FOR ALL  NOMINEES" IN ITEM 1 AND
THE BOARD OF DIRECTORS  AND THE AUDIT  COMMITTEE  RECOMMEND A VOTE "FOR" ITEM 2.
PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR
VOTE IN BLUE OR BLACK INK AS SHOWN HERE [X]
--------------------------------------------------------------------------------
1. Election of the following nominees as Directors:

                                   NOMINEES:
[ ]FOR ALL NOMINEES               ()Mr. Altschul
                                  ()Mr. Berens
                                  ()Mr. Cullman
[ ]WITHHOLD AUTHORITY             ()Mr. Davidson
   FOR ALL NOMINEES               ()Dr. Edelman
                                  ()Mr. Gordan
                                  ()Mr. Knafel
[ ]FOR ALL EXCEPT                 ()Mr. Neidich
  (See instructions               ()Ms. Shuman
   below)                         ()Mr. Stewart
                                  ()Mr. Troubh

INSTRUCTION: To withhold authority to vote for any individual nominee(s),  mark
----------- "FOR ALL EXCEPT" and  fill in the circle next to each nominee you
wish to withhold, as shown here:(o)
-------------------------------------------------------------------------------

2. Ratification of the selection of the Ernst & Young LLP as auditors.
                                                          FOR  AGAINST  ABSTAIN
                                                          [ ]    [ ]      [ ]
--------------------------------------------------------------------------------
3. In their  discretion,  the  appointees  are authorized to vote upon any other
matters which may properly come before the meeting or any adjournments thereof.
--------------------------------------------------------------------------------

The shares  represented  by this proxy will be voted as  directed  by the share-
holder. If no direction is given when the duly executed proxy is returned,  such
shares will be voted "FOR ALL  NOMINEES"  in Item 1 and "FOR" Item 2.

TO INCLUDE ANY COMMENTS, USE THE COMMENTS BOX ON THE REVERSE SIDE OF THIS CARD.
--------------------------------------------------------------------------------




--------------------------------------------------------------------------------
To change the address on your account, please check the box at right and  [  ]
indicate your new address in the address space above.  Please note that
changes to the registered name(s) on the account may not be submitted via
this method.
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Signature of Stockholder____________________ Date:______________________________

Signature of Stockholder____________________ Date:______________________________

    Note:  Please sign exactly as your name or names appear on this Proxy.  When
           shares are held jointly, each holder should sign.  When signing as
           executor, administrator, attorney, trustee or guardian, please give
           full title as such.  If the signer is a corporation, please sign full
           corporate name by duly authorized officer, giving full title as such.
           If signer is a partnership, please sign in partnership name by
           authorized person.