SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 (Amendment No. ) Filed by the Registrant [X] Filed by a Party other than the Registrant [ ] Check the appropriate box: [X] Preliminary Proxy Statement [ ] Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) [ ] Definitive Proxy Statement [ ] Definitive Additional Materials [ ] Soliciting Material Pursuant to Section 240.14a-11(c) or Section 240.14a-12 SELIGMAN PENNSYLVANIA TAX-EXEMPT FUND SERIES ................................................................. (Name of Registrant as Specified In Its Charter) ................................................................. (Name of Person(s) Filing Proxy Statement, if other than the Registrant) Payment of Filing Fee (Check the appropriate box): [X] $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1), 14a-6(i)(2) or Item 22(a)(2) of Schedule 14A. [ ] $500 per each party to the controversy pursuant to Exchange Act Rule 14a-6(i)(3). [ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11. 1) Title of each class of securities to which transaction applies: ................................................................. 2) Aggregate number of securities to which transaction applies: ................................................................. 3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the filing fee is calculated and state how it was determined): ................................................................. 4) Proposed maximum aggregate value of transaction: ................................................................. 5) Total fee paid: ................................................................. [ ] Fee paid previously with preliminary materials. [ ] Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. 1) Amount Previously Paid: ................................................................. 2) Form, Schedule or Registration Statement No.: ................................................................. 3) Filing Party: ................................................................. 4) Date Filed: ................................................................. SELIGMAN NEW JERSEY TAX-EXEMPT FUND, INC. SELIGMAN PENNSYLVANIA TAX-EXEMPT FUND SERIES SELIGMAN TAX-EXEMPT FUND SERIES, INC. National Tax-Exempt Series, Colorado Tax-Exempt Series, Georgia Tax-Exempt Series, Louisiana Tax-Exempt Series, Maryland Tax-Exempt Series, Massachusetts Tax-Exempt Series, Michigan Tax-Exempt Series, Minnesota Tax-Exempt Series, Missouri Tax-Exempt Series, New York Tax-Exempt Series, Ohio Tax-Exempt Series, Oregon Tax-Exempt Series and South Carolina Tax-Exempt Series SELIGMAN TAX-EXEMPT SERIES TRUST California Tax-Exempt High-Yield Series, California Tax-Exempt Quality Series, Florida Tax-Exempt Series and North Carolina Tax-Exempt Series 100 Park Avenue, New York, New York 10017 Toll-Free Telephone: (800) 221-2450 -- All continental United States NOTICE OF JOINT SPECIAL MEETING OF SHAREHOLDERS TO BE HELD ON SEPTEMBER 30, 1996 To the Shareholders: A Joint Special Meeting of Shareholders (the 'Meeting') of Seligman New Jersey Tax-Exempt Fund, Inc., a Maryland corporation, Seligman Pennsylvania Tax-Exempt Fund Series, a Pennsylvania business trust, Seligman Tax-Exempt Fund Series, Inc., a Maryland corporation and Seligman Tax-Exempt Series Trust, a Massachusetts business trust (the 'Funds'), will be held at the offices of the Funds, 100 Park Avenue, New York, New York 10017 on September 30, 1996 at 9:00 A.M., for the following purposes: (1) To elect thirteen Directors or Trustees, as applicable, for each Fund; (2) To act on a proposal to ratify the selection of Deloitte & Touche LLP as independent auditors of each Fund for fiscal 1996; (3) To act on a proposal to eliminate a fundamental investment policy of each Fund or series of a Fund in order to permit the investment of any portion of net assets in securities subject to the federal alternative minimum tax; and (4) To transact any other business that may lawfully come before the Meeting or any adjournment thereof; all as set forth in the Proxy Statement accompanying this Notice. The close of business on August 1, 1996 has been fixed as the record date for the determination of shareholders entitled to notice of, and to vote at, the Meeting or any adjournment thereof. By order of the Boards of Directors and Trustees, Frank J. Nasta Secretary Dated: New York, New York, August 12, 1996 ------------------ YOUR VOTE IS IMPORTANT NO MATTER HOW MANY SHARES YOU OWN PLEASE INDICATE YOUR VOTING INSTRUCTIONS ON THE ENCLOSED PROXY CARD, DATE AND SIGN IT, AND RETURN IT IN THE ENVELOPE PROVIDED, WHICH IS ADDRESSED FOR YOUR CONVENIENCE AND NEEDS NO POSTAGE IF MAILED IN THE UNITED STATES. IN ORDER TO AVOID THE ADDITIONAL EXPENSE OF FURTHER SOLICITATION, WE ASK YOUR COOPERATION IN MAILING YOUR PROXY PROMPTLY. A PROXY WILL NOT BE REQUIRED FOR ADMISSION TO THE MEETING. August 12, 1996 SELIGMAN NEW JERSEY TAX-EXEMPT FUND, INC. SELIGMAN PENNSYLVANIA TAX-EXEMPT FUND SERIES SELIGMAN TAX-EXEMPT FUND SERIES, INC. National Tax-Exempt Series, Colorado Tax-Exempt Series, Georgia Tax-Exempt Series, Louisiana Tax-Exempt Series, Maryland Tax-Exempt Series, Massachusetts Tax-Exempt Series, Michigan Tax-Exempt Series, Minnesota Tax-Exempt Series, Missouri Tax-Exempt Series, New York Tax-Exempt Series, Ohio Tax-Exempt Series, Oregon Tax-Exempt Series and South Carolina Tax-Exempt Series SELIGMAN TAX-EXEMPT SERIES TRUST California Tax-Exempt High-Yield Series, California Tax-Exempt Quality Series, Florida Tax-Exempt Series and North Carolina Tax-Exempt Series 100 PARK AVENUE, NEW YORK, NEW YORK 10017 PROXY STATEMENT FOR THE JOINT SPECIAL MEETING OF SHAREHOLDERS TO BE HELD ON SEPTEMBER 30, 1996 This Proxy Statement is furnished to you in connection with the solicitation of Proxies by the Boards of Directors and Trustees of Seligman New Jersey Tax-Exempt Fund, Inc. (the 'New Jersey Fund'), Seligman Pennsylvania Tax-Exempt Fund Series (the 'Pennsylvania Fund'), Seligman Tax-Exempt Fund Series, Inc. (the 'Tax-Exempt Fund') and Seligman Tax-Exempt Series Trust (the 'Tax-Exempt Trust') (collectively, the 'Funds') to be used at the Joint Special Meeting of Shareholders (the 'Meeting') to be held in New York, New York on September 30, 1996. The Tax-Exempt Fund and the Tax-Exempt Trust each offer shares of separate series, each of which is a separate pool of assets constituting, in effect, a separate fund with its own investment objective and policies. The Tax-Exempt Fund offers the Seligman National Tax-Exempt Series and the following twelve state series: Seligman Colorado Tax-Exempt Series, Seligman Georgia Tax-Exempt Series, Seligman Louisiana Tax-Exempt Series, Seligman Maryland Tax-Exempt Series, Seligman Massachusetts Tax-Exempt Series, Seligman Michigan Tax-Exempt Series, Seligman Minnesota Tax-Exempt Series, Seligman Missouri Tax-Exempt Series, Seligman New York Tax-Exempt Series, Seligman Ohio Tax-Exempt Series, Seligman Oregon Tax-Exempt Series and Seligman South Carolina Tax-Exempt Series. The Tax-Exempt Trust offers the following four state series: Seligman California Tax-Exempt High-Yield Series, Seligman California Tax-Exempt 2 Quality Series, Seligman Florida Tax-Exempt Series and Seligman North Carolina Tax-Exempt Series (the National Tax-Exempt Series and all state series collectively, the 'Series'). If the accompanying form of Proxy is executed properly and returned, shares represented by it will be voted at the Meeting. If you give instructions, your shares will be voted in accordance with your instructions. If you give no instructions, your shares will be voted, on behalf of the respective shareholders of each Fund or Series, (i) for the election of thirteen Directors or Trustees, as applicable, (ii) for the ratification of the selection of auditors, (iii) for the elimination of a fundamental investment policy in order to permit the investment of any portion of net assets in securities subject to the federal alternative minimum tax, and, at the discretion of the Proxy holders, on any other matter which may properly come before the Meeting or any adjournment thereof. You may revoke your Proxy or change it by written notice to the Funds (Attention: the Secretary) or by notice at the Meeting at any time prior to the time it is voted. The close of business on August 1, 1996 has been fixed as the record date for the determination of shareholders entitled to notice of, and to vote at, the Meeting. On that date, each Fund or Series had shares of Capital Stock outstanding and entitled to vote as follows: FUND OR SERIES SHARES - ------------------------------------------------------ ---------- New Jersey Fund Pennsylvania Fund National Series Colorado Series Georgia Series Louisiana Series Maryland Series Massachusetts Series Michigan Series Minnesota Series Missouri Series New York Series Ohio Series Oregon Series South Carolina Series California High-Yield Series California Quality Series Florida Series North Carolina Series The Meeting is scheduled as a joint meeting of shareholders of the respective Funds because the shareholders of all the Funds are to consider and vote on similar matters. In the event that any 3 shareholder of a Fund present at the Meeting objects to the holding of a joint meeting and moves for an adjournment of the Meeting with respect to such Fund to a time immediately after the Meeting, so that the Meeting of such Fund may be held separately, the persons named as proxies will vote in favor of such adjournment. Shareholders of each Fund will vote separately on each proposal and on any other matters that may arise for such Fund, and the vote of the shareholders of one Fund will not affect the vote of the shareholders of any other Fund. Additionally, shareholders of each Series of the Tax-Exempt Fund and the Tax-Exempt Trust will vote separately with respect to Proposal 3, and the vote of the shareholders of one Series will not affect the vote of the shareholders of any other Series of the same Fund. Each share outstanding on the record date will be entitled to one vote at the Meeting. For any matter on which the vote of a 'majority of the outstanding voting securities' of a Fund or Series is required, an abstention or broker non-vote will have the same effect as a vote against the proposal. For all matters on which the affirmative vote of a majority of the votes cast is required and for the election of Directors or Trustees, an abstention or broker non-vote will not be considered a vote cast. Abstentions and broker non-votes will be counted for purposes of determining whether a quorum is represented and, with respect to Proposal 3, whether a 'majority of the outstanding voting securities' is represented at the Meeting. A quorum for the New Jersey Fund and the Tax-Exempt Fund (or Series thereof) will consist of one-third of the shares outstanding and entitled to vote. A quorum for the Pennsylvania Fund and the Tax-Exempt (or Series thereof) Trust will consist of a majority of the shares outstanding and entitled to vote. In the event that a quorum is not represented at the Meeting for a Fund or Series or, even if a quorum is so represented, in the event that sufficient votes in favor of any proposal set forth in the Notice of Joint Special Meeting with respect to a Fund or Series are not received by September 30, 1996, the persons named as proxies may propose and vote for one or more adjournments of the Meeting with respect to that Fund or Series with no other notice than an announcement at the Meeting, and further solicitation of proxies with respect to such proposal may be made. Shares represented by proxies indicating a vote against any proposal will be voted against adjournment. The Funds' investment adviser is J. & W. Seligman & Co. Incorporated (the 'Manager'). The Funds' shareholder service agent is Seligman Data Corp. and the Funds' distributor (principal underwriter) is Seligman Financial Services, Inc. The address of each of these entities is 100 Park Avenue, New York, New York 10017. The Funds will furnish, without charge, copies of their most recent annual reports and semi-annual reports to any shareholder upon request to Seligman Data Corp. at 1-800-221-2450. It is expected that the Notice of Joint Special Meeting, Proxy Statement and form of Proxy will first be mailed to shareholders on or about August 12, 1996. 4 A. ELECTION OF DIRECTORS OR TRUSTEES. (Proposal 1) Each Fund's Board is presently comprised of thirteen Directors or Trustees. At the Meeting, these Directors or Trustees, as applicable, will be nominated for election to hold office until the next meeting at which Director or Trustee elections are held or until their successors are elected and qualify. Each nominee has been recommended by the Director or Trustee Nominating Committee of the Board of each Fund. It is the intention of the persons named in the accompanying form of Proxy to vote for the election of Fred E. Brown, General John R. Galvin, Alice S. Ilchman, Frank A. McPherson, John E. Merow, Betsy S. Michel, William C. Morris, James C. Pitney, James Q. Riordan, Ronald T. Schroeder, Robert L. Shafer, James N. Whitson and Brian T. Zino, all of whom were previously elected by shareholders (except for General Galvin and Messrs. McPherson, Whitson and Zino) and are presently members of each Board. Each nominee has agreed to serve if elected. There is no reason to believe that any of the nominees will become unavailable for election as a Director or Trustee, but if that should occur before the Meeting, Proxies will be voted for the persons each Fund's Board nominates. SHARES OF THE FUNDS' PRINCIPAL OCCUPATION AND OTHER INFORMATION CAPITAL STOCK NOMINEE, YEAR THE NOMINEES DESIGNATED BY ASTERISK (*) ARE 'INTERESTED BENEFICIALLY FIRST BECAME A PERSONS' OF EACH FUND (AS THAT TERM IS DEFINED IN THE OWNED, DIRECTLY OR DIRECTOR OR TRUSTEE OF INVESTMENT COMPANY ACT OF 1940, AS AMENDED) BECAUSE INDIRECTLY, AS OF EACH FUND AND (AGE) OF THEIR STATED ASSOCIATIONS. JULY 26, 1996 - ------------------------ -------------------------------------------------------- ------------------- Fred E. Brown* DIRECTOR OR TRUSTEE, VARIOUS ORGANIZATIONS, NEW YORK, NY. 27,516 National 1987 - NJ Fund Mr. Brown is a Director or Trustee of each of the 1986 - PA Fund Seligman Group investment companies;`D' Director of, and 1983 - Tax-Ex Fund Consultant to, J. & W. Seligman & Co. Incorporated; 1984 - Tax-Ex Trust Director of Seligman Financial Services, Inc. and (83) Seligman Services, Inc., and Trustee of Lake Placid Education Foundation, Lake Placid Center for the Arts and [Photo] Trudeau Institute, Inc.; formerly, Director of J. & W. Seligman Trust Company and Seligman Securities, Inc. 5 SHARES OF THE FUNDS' PRINCIPAL OCCUPATION AND OTHER INFORMATION CAPITAL STOCK NOMINEE, YEAR THE NOMINEES DESIGNATED BY ASTERISK (*) ARE 'INTERESTED BENEFICIALLY FIRST BECAME A PERSONS' OF EACH FUND (AS THAT TERM IS DEFINED IN THE OWNED, DIRECTLY OR DIRECTOR OR TRUSTEE OF INVESTMENT COMPANY ACT OF 1940, AS AMENDED) BECAUSE INDIRECTLY, AS OF EACH FUND AND (AGE) OF THEIR STATED ASSOCIATIONS. JULY 26, 1996 - ------------------------ -------------------------------------------------------- ------------------- John R. Galvin DEAN OF THE FLETCHER SCHOOL OF LAW AND DIPLOMACY AT TUFTS 132 National 1995 - All Funds UNIVERSITY, MEDFORD, MA. General Galvin is Director or Trustee of each of the Seligman Group investment (67) companies;`D' Chairman of the American Council on Germany; a Governor of the Center for Creative [Photo] Leadership; Director of USLIFE, National Committee on U.S. - China Relations, National Defense University and the Institute for Defense Analysis; and Consultant of Thomson CSF; formerly, Ambassador, U.S. State Department, Distinguished Policy Analyst at Ohio State University and Olin Distinguished Professor of National Security Studies at the United States Military Academy. From June 1987 to June 1992, he was the Supreme Allied Commander, Europe and the Commander-in-Chief, United States European Command. Alice S. Ilchman PRESIDENT, SARAH LAWRENCE COLLEGE, BRONXVILLE, NY. Dr. 253 NY 1991 - All Funds Ilchman is a Director or Trustee of each of the Seligman (61) Group investment companies;`D' Chairman of The Rockefeller Foundation; and Director of NYNEX and The [Photo] Committee for Economic Development; formerly, Trustee of The Markle Foundation and Director of International Research & Exchange Board. 6 SHARES OF THE FUNDS' PRINCIPAL OCCUPATION AND OTHER INFORMATION CAPITAL STOCK NOMINEE, YEAR THE NOMINEES DESIGNATED BY ASTERISK (*) ARE 'INTERESTED BENEFICIALLY FIRST BECAME A PERSONS' OF EACH FUND (AS THAT TERM IS DEFINED IN THE OWNED, DIRECTLY OR DIRECTOR OR TRUSTEE OF INVESTMENT COMPANY ACT OF 1940, AS AMENDED) BECAUSE INDIRECTLY, AS OF EACH FUND AND (AGE) OF THEIR STATED ASSOCIATIONS. JULY 26, 1996 - ------------------------ -------------------------------------------------------- ------------------- Frank A. McPherson CHAIRMAN OF THE BOARD AND CHIEF EXECUTIVE OFFICER, 133 National 1995 - All Funds KERR-MCGEE CORPORATION, OKLAHOMA CITY, OK. Mr. McPherson (63) is a Director or Trustee of each of the Seligman Group investment companies;`D' Director of Kimberly-Clark [Photo] Corporation, Bank of Oklahoma Holding Company, American Petroleum Institute, Oklahoma City Chamber of Commerce, Baptist Medical Center, Oklahoma Chapter of the Nature Conservancy, Oklahoma Medical Research Foundation and United Way Advisory Board; Chairman of Oklahoma City Public Schools Foundation; and Member of The Business Roundtable and National Petroleum Council. John E. Merow* PARTNER, SULLIVAN & CROMWELL, LAW FIRM, NEW YORK, NY. Mr. 221,835 NY 1988 - NJ Fund Merow is a Director or Trustee of each of the Seligman 1,000 Cal-HY 1986 - PA Fund Group investment companies,`D' Municipal Art Society of 1,000 PA 1983 - Tax-Ex Fund New York, Commonwealth Aluminum Corporation, U.S. Council 1,000 NJ 1984 - Tax-Ex Trust for International Business and U.S.-New Zealand Council; (66) Member of the American Law Institute and the Council on Foreign Relations; Chairman of the American Australian [Photo] Association; and Member of the Board of Governors of the Foreign Policy Association and New York Hospital. 7 SHARES OF THE FUNDS' PRINCIPAL OCCUPATION AND OTHER INFORMATION CAPITAL STOCK NOMINEE, YEAR THE NOMINEES DESIGNATED BY ASTERISK (*) ARE 'INTERESTED BENEFICIALLY FIRST BECAME A PERSONS' OF EACH FUND (AS THAT TERM IS DEFINED IN THE OWNED, DIRECTLY OR DIRECTOR OR TRUSTEE OF INVESTMENT COMPANY ACT OF 1940, AS AMENDED) BECAUSE INDIRECTLY, AS OF EACH FUND AND (AGE) OF THEIR STATED ASSOCIATIONS. JULY 26, 1996 - ------------------------ -------------------------------------------------------- ------------------- Betsy S. Michel ATTORNEY, GLADSTONE, NJ. Mrs. Michel is a Director or 3,221 National 1988 - NJ Fund Trustee of each of the Seligman Group investment 1986 - PA Fund companies`D' and Chairman of the Board of Trustees of St. 1984 - Tax-Ex Fund and George's School (Newport, RI); and Trustee of Geraldine Tax-Ex Trust R. Dodge Foundation (Morristown, NJ); formerly, Director (54) of The National Association of Independent Schools (Washington, DC). [Photo] William C. Morris* CHAIRMAN AND PRESIDENT OF J. & W. SELIGMAN & CO. 142,012 NY 1988 - All Funds INCORPORATED, NEW YORK, NY. Mr. Morris is Chairman and 1,037 National (58) Chief Executive Officer of each of the Seligman Group investment companies;`D' Chairman of Seligman Financial [Photo] Services, Inc., Seligman Services, Inc. and Carbo Ceramics Inc.; Member of the Board of Governors of the Investment Company Institute; and Director of Kerr-McGee Corporation and Seligman Data Corp.; formerly, Chairman of Seligman Securities, Inc. and J. & W. Seligman Trust Company. 8 SHARES OF THE FUNDS' PRINCIPAL OCCUPATION AND OTHER INFORMATION CAPITAL STOCK NOMINEE, YEAR THE NOMINEES DESIGNATED BY ASTERISK (*) ARE 'INTERESTED BENEFICIALLY FIRST BECAME A PERSONS' OF EACH FUND (AS THAT TERM IS DEFINED IN THE OWNED, DIRECTLY OR DIRECTOR OR TRUSTEE OF INVESTMENT COMPANY ACT OF 1940, AS AMENDED) BECAUSE INDIRECTLY, AS OF EACH FUND AND (AGE) OF THEIR STATED ASSOCIATIONS. JULY 26, 1996 - ------------------------ -------------------------------------------------------- ------------------- James C. Pitney PARTNER, PITNEY, HARDIN, KIPP & SZUCH, LAW FIRM, 8,102 National 1988 - NJ Fund MORRISTOWN, NJ. Mr. Pitney is a Director or Trustee of 1986 - PA Fund each of the Seligman Group investment companies`D' and 1983 - Tax-Ex Fund Public Service Enterprise Group. 1984 - Tax-Ex Trust (69) [Photo] James Q. Riordan DIRECTOR, VARIOUS CORPORATIONS, STUART, FL. Mr. Riordan 1,790 Florida 1991 - All Funds is a Director or Trustee of each of the Seligman Group (69) investment companies,`D' The Houston Exploration Company, The Brooklyn Museum, The Brooklyn Union Gas Company, The [Photo] Committee for Economic Development, Dow Jones & Co., Inc. and Public Broadcasting Service; formerly Co-Chairman of the Policy Council of The Tax Foundation; Director and President of Bekaert Corporation; and Director of Tesoro Petroleum Companies, Inc. 9 SHARES OF THE FUNDS' PRINCIPAL OCCUPATION AND OTHER INFORMATION CAPITAL STOCK NOMINEE, YEAR THE NOMINEES DESIGNATED BY ASTERISK (*) ARE 'INTERESTED BENEFICIALLY FIRST BECAME A PERSONS' OF EACH FUND (AS THAT TERM IS DEFINED IN THE OWNED, DIRECTLY OR DIRECTOR OR TRUSTEE OF INVESTMENT COMPANY ACT OF 1940, AS AMENDED) BECAUSE INDIRECTLY, AS OF EACH FUND AND (AGE) OF THEIR STATED ASSOCIATIONS. JULY 26, 1996 - ------------------------ -------------------------------------------------------- ------------------- Ronald T. Schroeder* DIRECTOR, MANAGING DIRECTOR AND CHIEF INVESTMENT OFFICER, 223,061 NY 1987 - NJ Fund INSTITUTIONAL OF J. & W. SELIGMAN & CO. INCORPORATED, NEW 1986 - PA Fund YORK, NY. Mr. Schroeder is a Director or Trustee of each 1983 - Tax-Ex Fund of the Seligman Group investment companies`D' and 1984 - Tax-Ex Trust Director of Seligman Financial Services, Inc., Seligman (48) Services, Inc. and Seligman Henderson Co.; formerly, President of each of the Seligman Group investment [Photo] companies with the exception of Seligman Quality Municipal Fund, Inc. and Seligman Select Municipal Fund, Inc. and Director of J. & W. Seligman Trust Company, Seligman Data Corp. and Seligman Securities, Inc. Robert L. Shafer DIRECTOR, VARIOUS CORPORATIONS, NEW YORK, NY. Mr. Shafer 500 NY 1988 - NJ Fund is a Director or Trustee of each of the Seligman Group 1986 - PA Fund investment companies`D' and US LIFE Corporation; 1983 - Tax-Ex Fund formerly, Vice President of Pfizer, Inc. 1984 - Tax-Ex Trust (64) [Photo] 10 SHARES OF THE FUNDS' PRINCIPAL OCCUPATION AND OTHER INFORMATION CAPITAL STOCK NOMINEE, YEAR THE NOMINEES DESIGNATED BY ASTERISK (*) ARE 'INTERESTED BENEFICIALLY FIRST BECAME A PERSONS' OF EACH FUND (AS THAT TERM IS DEFINED IN THE OWNED, DIRECTLY OR DIRECTOR OR TRUSTEE OF INVESTMENT COMPANY ACT OF 1940, AS AMENDED) BECAUSE INDIRECTLY, AS OF EACH FUND AND (AGE) OF THEIR STATED ASSOCIATIONS. JULY 26, 1996 - ------------------------ -------------------------------------------------------- ------------------- James N. Whitson EXECUTIVE VICE PRESIDENT, CHIEF OPERATING OFFICER AND 1,238 National 1993 - All Funds DIRECTOR, SAMMONS ENTERPRISES, INC., DALLAS, TX. Mr. (61) Whitson is a Director or Trustee of each of the Seligman Group investment companies,`D' Red Man Pipe and Supply [Photo] Company and C-SPAN. Brian T. Zino* DIRECTOR AND MANAGING DIRECTOR, J. & W. SELIGMAN & CO. 22,132 New Jersey 1993 - All Funds INCORPORATED, NEW YORK, NY. Mr. Zino is President (with (43) the exception of Seligman Quality Municipal Fund, Inc. and Seligman Select Municipal Fund, Inc.) and Director or [Photo] Trustee of each of the Seligman Group investment companies;`D' Chairman of Seligman Data Corp.; Director of Seligman Financial Services, Inc. and Seligman Services, Inc.; and Senior Vice President of Seligman Henderson Co.; formerly, Director and Secretary of Chuo Trust -- JWS Advisors, Inc. and Director of J. & W. Seligman Trust Company and Seligman Securities, Inc. `D' The Seligman Group of investment companies consists of the Funds, Seligman Capital Fund, Inc., Seligman Cash Management Fund, Inc., Seligman Common Stock Fund, Inc., Seligman Communications and Information Fund, Inc., Seligman Frontier Fund, Inc., Seligman Growth Fund, Inc., Seligman Henderson Global Fund Series, Inc., Seligman High Income Fund Series, Seligman Income Fund, Inc., Seligman Portfolios, Inc., Seligman Quality Municipal Fund, Inc., Seligman Select Municipal Fund, Inc. and Tri-Continental Corporation. Unless otherwise indicated, Directors and Trustees have sole voting and investment power with respect to the shares shown. As of July 15, 1996, all Directors or Trustees, as applicable, and officers of each Fund as a group owned beneficially less than 1% of each Fund's and Series' capital 11 stock, with the exception of the New York Tax-Exempt Series, for which as a group all Directors beneficially own 5.41%. Each Fund's Board met six times during 1995. Among the standing committees of each Fund's Board are the Audit Committee and Director or Trustee Nominating Committee, as applicable. These Committees are solely comprised of Directors or Trustees who are not 'interested persons' of each Fund (as that term is defined in the Investment Company Act of 1940, as amended (the '1940 Act')). The duties of these Committees are described below. Audit Committee. This Committee recommends the independent public accountants for selection as auditors by the Board annually. In addition, it reviews, with the auditors and such other persons as it determines, (a) the scope of audit, (b) accounting and financial internal controls, (c) quality and adequacy of the accounting staff and (d) reports of the auditors. The Committee comments to the Board when warranted and at least annually. It is directly available to the auditors and officers of the Fund for consultation on audit, accounting and related financial matters. The Audit Committee of each Fund met twice in 1995. Members of each Fund's Audit Committee are Messrs. Whitson (Chairman) and McPherson, General Galvin and Mrs. Michel. Director or Trustee Nominating Committee. This Committee recommends to the Board persons to be nominated for election as Directors or Trustees, as applicable, by the shareholders of each Fund and selects and proposes nominees for election by the Board between shareholder meetings. The Committee will consider suggestions from shareholders submitted in writing to the Secretary of each Fund. The Director or Trustee Nominating Committee of each Fund met twice in 1995. Members of each Fund's Director or Trustee Nominating Committee are Messrs. Pitney (Chairman), Riordan and Shafer and Dr. Ilchman. On July 15, 1996, no person was known to the management of any Fund to be the beneficial owner of more than 5% of the outstanding shares of any Fund's or Series' capital stock. 12 EXECUTIVE OFFICERS OF THE FUNDS Information with respect to executive officers of each of the Funds, other than Messrs. Morris and Zino, is as follows: POSITION WITH FUND AND NAME AGE PRINCIPAL OCCUPATION DURING PAST FIVE YEARS - ---------------------------------------------------------------------------------------------------------------- Thomas G. Moles 54 VICE PRESIDENT AND PORTFOLIO MANAGER OF THE FUNDS since each Fund's inception. Mr. Moles is also President and Portfolio Manager of Seligman Quality Municipal Fund, Inc. and Seligman Select Municipal Fund, Inc.; Director and Managing Director of the Manager; Director, Seligman Financial Services, Inc. and Seligman Services, Inc.; formerly, Director of Seligman Securities, Inc. and J. & W. Seligman Trust Company. Lawrence P. Vogel 40 VICE PRESIDENT (FORMERLY, TREASURER) OF THE FUNDS since January 1992. Mr. Vogel is also Vice President of the other Seligman Group investment companies; Senior Vice President, Finance of the Manager, Seligman Financial Services, Inc. and Seligman Data Corp. (formerly, Treasurer); Vice President of Seligman Services, Inc.; and Treasurer, Seligman Henderson Co.; formerly, Senior Vice President, Finance of Seligman Securities, Inc. and Senior Vice President, J. & W. Seligman Trust Company. Frank J. Nasta 31 SECRETARY OF THE FUNDS since March 1994. Mr. Nasta is also Secretary of the Manager, the other Seligman Group investment companies, Seligman Data Corp., Seligman Financial Services, Inc., Seligman Services, Inc. and Seligman Henderson Co. and Senior Vice President, Law and Regulation of the Manager; formerly, Secretary, J. & W. Seligman Trust Company, and attorney at the law firm of Seward & Kissel. Thomas G. Rose 37 TREASURER OF THE FUNDS since November 1992. Mr. Rose is also Treasurer of the other Seligman Group investment companies and Seligman Data Corp.; formerly, Treasurer, American Investors Advisors, Inc. All officers are elected annually by each Fund's Board and serve until their successors are elected and qualify or their earlier resignation. The address of each of the foregoing officers is 100 Park Avenue, New York, NY 10017. REMUNERATION OF DIRECTORS OR TRUSTEES AND OFFICERS Directors or Trustees, as applicable, of each Fund who are not employees of the Manager or its affiliates receive from each Fund annual retainer fees. In addition, Directors or Trustees are 13 paid up to $1,000 for each day on which they attend Board and/or Committee meetings, which is paid proportionately by the Seligman Group investment companies meeting on the same day. The Directors or Trustees are also reimbursed for the expenses of attending meetings. Directors' or Trustees' attendance, retainer and/or committee fees paid to each Director or Trustee for the year ended December 31, 1995 were as follows: PENSION OR AGGREGATE AGGREGATE AGGREGATE RETIREMENT TOTAL AGGREGATE COMPENSATION COMPENSATION COMPENSATION BENEFITS COMPENSATION COMPENSATION FROM FROM FROM ACCRUED AS FROM FUNDS FROM NEW PENNSYLVANIA TAX-EXEMPT TAX-EXEMPT PART OF FUND AND FUND NAME JERSEY FUND FUND FUND TRUST EXPENSES COMPLEX** - ---------------------------- ------------ ------------ ------------ ------------ ------------ ------------ John R. Galvin $ 1,515.88 $ 1,448.67 $ 3,520.16 $ 1,795.93 - 0 - $41,252.75 Alice S. Ilchman 2,497.12 2,388.88 5,725.28 2,948.20 - 0 - 68,000.00 Frank A. McPherson 1,515.88 1,448.67 3,520.16 1,795.93 - 0 - 41,252.75 John E. Merow`D' 2,425.70 2,317.46 5,653.84 2,876.76 - 0 - 66,000.00 Betsy S. Michel 2,389.99 2,281.75 5,618.12 2,841.04 - 0 - 67,000.00 Douglas R. Nichols, Jr.* 909.82 868.79 2,133.68 1,080.83 - 0 - 24,747.25 James C. Pitney`D' 2,497.12 2,388.88 5,725.28 2,948.20 - 0 - 68,000.00 James Q. Riordan 2,497.12 2,388.88 5,725.28 2,948.20 - 0 - 70,000.00 Herman J. Schmidt* 909.82 868.79 2,133.68 1,080.83 - 0 - 24,747.25 Robert L. Shafer 2,497.12 2,388.88 5,725.28 2,948.20 - 0 - 70,000.00 James N. Whitson`D' 2,425.70 2,317.46 5,653.84 2,876.76 - 0 - 68,000.00 - --------------------- * Messrs. Nichols and Schmidt retired on May 18, 1995. ** There are 13 other investment companies in the Seligman Group. `D' Messrs. Merow and Whitson have elected to defer receiving their fees from the Funds. The total amounts of deferred compensation (including interest) payable to Messrs. Merow and Whitson as of December 31, 1995 were as follows: Mr. Merow: NJ Fund -- $16,536.58, PA Fund -- $19,406.32, Tax-Exempt Fund -- $73,539.58 and Tax-Exempt Trust -- $33,234.80; Mr. Whitson: NJ Fund -- $6,718.06, PA Fund -- $6,360.74, Tax-Exempt Fund -- $18,184.81 and Tax-Exempt Trust -- $8,128.51. Mr. Pitney had deferred receiving his fee and has owing to him deferred compensation (including interest) as of December 31, 1995 as follows: NJ Fund -- $9,009.79, PA Fund -- $12,605.56, Tax-Exempt Fund -- $55,325.04 and Tax-Exempt Trust -- $25,749.89. Mr. Pitney no longer defers his current compensation. No compensation is paid by any Fund to Directors or Trustees, as applicable, or officers of any Fund who are employees of, or consultants to, the Manager. For the New Jersey Fund and the Tax-Exempt Fund, the affirmative vote of a plurality of the votes cast at the Meeting is required to approve the election of the proposed Directors. For the Pennsylvania Fund and the Tax-Exempt Trust, the affirmative vote of a majority of the votes cast at the Meeting is required to approve the election of the proposed Trustees. THE BOARD OF DIRECTORS OR TRUSTEES OF EACH FUND UNANIMOUSLY RECOMMENDS THAT THE SHAREHOLDERS VOTE FOR THE ELECTION OF EACH OF THE FOREGOING NOMINEES TO SERVE AS DIRECTOR OR TRUSTEE OF EACH FUND. 14 B. RATIFICATION OF SELECTION OF AUDITORS. (Proposal 2) In accordance with the requirements of the 1940 Act, the Board of Directors or Trustees of each Fund is required to select independent public accountants as auditors of the Fund for each fiscal year. If a shareholders' meeting is held, the Board's selection is subject to ratification or rejection by shareholders. The Audit Committee of each Fund's Board of Directors or Trustees, as applicable, has recommended and each Fund's Board, including a majority of those members who are not 'interested persons' of each Fund (as defined in the 1940 Act), has selected Deloitte & Touche LLP as auditors of each Fund for fiscal 1996. The firm of Deloitte & Touche LLP has extensive experience in investment company accounting and auditing. It is expected that a representative of Deloitte & Touche LLP will be present at the Meeting and will have the opportunity to make a statement and respond to questions. For each Fund, the affirmative vote of a majority of the votes cast at the Meeting is required to ratify the selection of auditors. THE BOARD OF DIRECTORS OR TRUSTEES OF EACH FUND UNANIMOUSLY RECOMMENDS RATIFICATION OF THIS PROPOSAL. C. APPROVAL OF THE ELIMINATION OF A FUNDAMENTAL INVESTMENT POLICY IN ORDER TO PERMIT THE INVESTMENT OF ANY PORTION OF NET ASSETS IN SECURITIES SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX. (Proposal 3) Each of the New Jersey Fund, the Pennsylvania Fund and the individual Series of the Tax-Exempt Fund and Tax-Exempt Trust currently operates under an investment policy (the '80% Policy') that requires, under normal conditions, each Fund or Series to invest at least 80% of the value of its net assets in securities the interest on which is exempt from federal income taxes and, in the case of each Fund or Series other than the National Series, applicable state income taxes. The 80% Policy is a 'fundamental' policy of each Fund or Series, and cannot be eliminated or changed without a vote of the shareholders of such Fund or Series. Prior to the Tax Reform Act of 1986, securities of states, territories and possessions of the United States and the District of Columbia, and their political subdivisions (such as counties, cities, boroughs, townships, school districts and authorities), agencies, and instrumentalities (collectively, 'Municipal Issuers') were generally tax exempt. The Tax Reform Act modified the tax status of certain municipal obligations to create, in effect, three categories of municipal obligations: 'public purpose' obligations that generate interest that is exempt from both regular federal income tax and the federal alternative minimum tax ('AMT'); qualified 'private activity' 15 obligations (for example, industrial revenue bonds) that generate income that is tax exempt under regular federal income tax rules but must generally be included in computing AMT; and obligations that generate income that is fully taxable for both regular and AMT purposes ('taxable municipals'). For purposes of the 80% Policy, private activity obligations and taxable municipals do not count toward meeting the 80% minimum. Each Fund or Series has a corollary investment policy that no more than 20% of such Fund's or Series' assets will be invested in tax- exempt securities the interest on which is subject to the AMT. The Manager has recommended to the Board of Directors or Trustees, as applicable, of each Fund that each Fund and Series change its investment policies so as to permit the Fund or Series to invest any portion of its assets in securities of Municipal Issuers the interest on which is subject to the AMT. The Manager believes that this change would afford each Fund or Series the opportunity to obtain potentially higher yields available from securities subject to AMT and the opportunity for increased portfolio diversification by enlarging the class of tax-exempt securities in which each Fund or Series could invest. The change would also, however, potentially increase the percentage of income distributions from each Fund or Series to its shareholders that is subject to the AMT. Such an increase would potentially increase the amount of federal taxes payable by those shareholders of a Fund or Series who are liable to pay the AMT (and similar state taxes). Shareholders should consult their own tax advisors to determine whether they are liable to pay the AMT. If shareholders of a Fund or Series approve this Proposal, the Board of Directors or Trustees, as applicable, currently intends to adopt with respect to each such Fund or Series, in place of the 80% Policy, a new, non-fundamental policy under which the Fund or Series would normally invest at least 80% of its total assets in debt securities of Municipal Issuers the interest on which is exempt from regular federal income tax but may be subject to AMT. This new policy could be changed by the Board of Directors or Trustees of each Fund in the future, without a shareholder vote. In addition, if shareholders of a Fund or Series approve Proposal 3, the Board of Directors or Trustees, as applicable, will eliminate the nonfundamental investment policy of each Fund and Series requiring that no more than 20% of such Fund's or Series' assets will be invested in tax-exempt securities the interest on which is subject to the AMT. The Board of Directors or Trustees of each Fund recommend that the shareholders of each Fund or Series approve this Proposal with respect to such Fund or Series. Approval of this Proposal with respect to a Fund or Series will require the affirmative 'vote of a majority of the outstanding voting securities' of such Fund or Series which, as defined by the 1940 Act, means the vote of the lesser of (1) 67% or more of the voting shares of the Fund or Series represented at the Meeting, if more than 50% of the shares of the Fund or Series are represented at the Meeting, or (2) more than 50% of the outstanding shares of such Fund or Series. 16 Consistent with the proposed elimination of the fundamental investment policy set forth in this Proposal, the Board of Directors or Trustees of each Fund have considered and deem advisable an amendment to the Articles of Incorporation or Declaration of Trust, as applicable, of each Fund to change its name to eliminate the words 'Tax-Exempt' and substitute the word 'Municipal'. The Board of Directors of the Tax-Exempt Fund and Board of Trustees of the Tax- Exempt Trust also have considered and deem advisable a change in the name of each individual Series of such Funds to eliminate the words 'Tax-Exempt' and substitute the word 'Municipal'. If this Proposal is approved by the shareholders of each Fund or Series, the current name of the Funds and each Series would be inconsistent with the current position of the staff of the Securities and Exchange Commission. That position requires that if an investment company's name implies that it will generate income to shareholders substantially all of which is free from federal income tax, the investment company must have an investment policy requiring, under normal circumstances, that at least 80% of the net value of its total assets be invested in securities that pay interest that is not subject to the AMT.. The Directors or Trustees of each Fund also believe that the current names would be misleading in light of the change in each Fund's or Series' fundamental investment policy. The vote of shareholders is not required to effect these changes in name, and they will become effective for each Fund or Series immediately upon the adoption of this Proposal by the shareholders of such Fund or Series. The Board of Directors or Trustees of each Fund believes that the proposed names are consistent with the change in fundamental investment policy and would enable shareholders, prospective investors and other market participants more readily to identify each Fund and Series with its current investment policies. THE BOARD OF DIRECTORS OR TRUSTEES OF EACH FUND RECOMMENDS APPROVAL OF THIS PROPOSAL. D. OTHER MATTERS; SHAREHOLDER PROPOSALS. Management knows of no other matters which are to be brought before the Meeting. However, if any other matters come before the Meeting, it is intended that the persons named in the enclosed form of Proxy, or their substitutes, will vote the Proxy in accordance with their judgment on such matters. A shareholder proposal intended to be presented at any meeting hereafter called must be received by a Fund within a reasonable time before the solicitation relating thereto is made in order to be included in the notice of meeting and form of proxy statement related to such meeting. Under the current By-Laws of each Fund, meetings of shareholders are required to be held only when necessary under the 1940 Act. It is therefore likely that, in future years, shareholder 17 meetings will not be held on an annual basis. The submission by a shareholder of a proposal for inclusion in the proxy statement does not guarantee that it will be included. Shareholder proposals are subject to certain regulations under federal law. E. EXPENSES. Each Fund will bear the cost of soliciting Proxies with respect to that Fund. In addition to the use of the mails, Proxies may be solicited personally or by telephone or telegraph by Directors, Trustees, officers and employees of the Funds, the Manager, Seligman Financial Services, Inc., Seligman Services, Inc. and Seligman Data Corp. and the Funds may reimburse persons holding shares in their names or names of their nominees for their expenses in sending solicitation material to their principals. The Funds have engaged Morrow & Co., Inc., 909 Third Avenue, New York, New York 10022-4799, to assist in soliciting Proxies for a fee of approximately $1,000 for the New Jersey Fund, $1,000 for the Pennsylvania Fund, $20,000 for the Tax-Exempt Fund and $3,000 for the Tax-Exempt Trust, plus expenses. By order of the Boards of Directors and Trustees, Frank J. Nasta Secretary --------------------- IT IS IMPORTANT THAT PROXIES BE RETURNED PROMPTLY. ALL SHAREHOLDERS, INCLUDING THOSE WHO EXPECT TO ATTEND THE MEETING, ARE URGED TO DATE, FILL IN, SIGN AND MAIL THE ENCLOSED FORM OF PROXY IN THE ENCLOSED RETURN ENVELOPE WHICH REQUIRES NO POSTAGE IF MAILED IN THE UNITED STATES. A PROXY IS NOT REQUIRED FOR ADMISSION TO THE MEETING. 18 --------------------------------------- Notice of Joint Special Meeting of Shareholders and Proxy Statement SELIGMAN NEW JERSEY TAX-EXEMPT FUND, INC. SELIGMAN PENNSYLVANIA TAX-EXEMPT FUND SERIES SELIGMAN TAX-EXEMPT FUND SERIES, INC. SELIGMAN TAX-EXEMPT SERIES TRUST Time: September 30, 1996 9:00 A.M. Place: Offices of the Funds 100 Park Avenue New York, NY 10017 Please date, fill in and sign the enclosed form of Proxy and mail it in the enclosed return envelope which requires no post- age if mailed in the United States. [Logo] Managed by [Logo] J. & W. SELIGMAN & CO. INCORPORATED ESTABLISHED 1864 100 Park Avenue, New York, NY 10017 STATEMENT OF DIFFERENCES The dagger symbol shall be expressed as ..................'D' APPENDIX PROXY SELIGMAN PENNSYLVANIA TAX-EXEMPT FUND SERIES 100 Park Avenue, New York, NY 10017 The undersigned, revoking previous proxies, acknowledges receipt of the Notice of Meeting and Proxy Statement for the Special Meeting of Shareholders of SELIGMAN PENNSYLVANIA TAX-EXEMPT FUND SERIES, (the "Fund") to be held September 30, 1996 and appoints JOHN E. MEROW, WILLIAM C. MORRIS and BRIAN T. ZINO (and each of them) proxies, with power of substitution, to attend the Special Meeting (and any adjournments thereof) and vote all shares the undersigned is entitled to vote upon the matters indicated below and on the reverse side and on any other business that may properly come before the Meeting. This proxy when properly executed will be voted in the manner directed by the undersigned. If no instructions are given, your proxies will vote FOR the election of the nominees of the Board of Trustees and FOR all proposals. - ------------------------------------------------------------------------------- The Board of Trustees recommends you vote FOR each of the Nominees and FOR all Proposals - ------------------------------------------------------------------------------- 1. ELECTION OF TRUSTEES [ ] FOR all nominees [ ] WITHHOLDING AUTHORITY (except as written TO VOTE for all on line below) nominees listed below. NOMINEES: Fred E. Brown, John R. Galvin, Alice S. Ilchman, Frank A. McPherson, John E. Merow, Betsy S. Michel, William C. Morris, James C. Pitney, James Q. Riordan, Ronald T. Schroeder, Robert L. Shafer, James N. Whitson, Brian T. Zino. _______________________________________________________________________ Your Vote is Important. Please complete, sign on the reverse side and return this card as soon as possible. Mark each vote with an X in the box. 2. Ratification of the selection of Deloitte & Touche LLP as Auditors. [ ] FOR [ ] AGAINST [ ] ABSTAIN 3. Approval of the elimination of the Fund's fundamental investment policy in order to permit the investment of any portion of net assets in securities subject to the federal alternative minimum tax. [ ] FOR [ ] AGAINST [ ] ABSTAIN DATED _____________________________________________________, 1996 _________________________________________________________________ Signature _________________________________________________________________ Signature (if jointly held) Please sign exactly as your name(s) appear(s) on this proxy(ies). Only one signature is required in case of a joint account. When signing in a representative capacity, please give title. This Proxy is solicited on behalf of the Board of Trustees