<DOCUMENT>
<TYPE>N-30D
<SEQUENCE>1
<FILENAME>file001.txt
<DESCRIPTION>FORM N-30D
<TEXT>


================================================================================

                         CENTRAL SECURITIES CORPORATION

                                   ----------

                               SEMI-ANNUAL REPORT

                                  JUNE 30, 2001

================================================================================


<PAGE>

                         CENTRAL SECURITIES CORPORATION

(Organized on October 1, 1929 as an investment company, registered as such with
 the Securities and Exchange Commission under the provisions of the Investment
                             Company Act of 1940.)

                            TEN YEAR HISTORICAL DATA

<TABLE>
<CAPTION>
                                            Per Share of Common Stock
                                         -------------------------------

                                                                                Distribu-
                           Convertible                              Divi-       tions(B)
                           Preference                             dends(B)        from
              Total         Stock at       Net         Net        from net     long-term     Net realized       Unrealized
               net         liquidation    asset    investment    investment    investment     investment       appreciation
Year         assets        preference     value     income(A)      income        gains           gains        of investments
----         ------        -----------    -----    ----------    ----------    ----------    ------------     --------------
<S>        <C>             <C>            <C>       <C>             <C>          <C>           <C>               <C>
1990      $111,152,013    $10,027,050    $10.00                                                                 $25,940,819
1991       131,639,511     10,022,100     11.87     $ .14           $.14         $ .56*        $7,321,233        43,465,583
1992       165,599,864     10,019,000     14.33       .12            .20           .66          8,304,369        70,586,429
1993       218,868,360      9,960,900     17.90       .14            .18          1.42         16,407,909       111,304,454
1994       226,639,144      9,687,575     17.60       .23            .22          1.39         16,339,601       109,278,788
1995       292,547,559      9,488,350     21.74       .31            .33          1.60         20,112,563       162,016,798
1996       356,685,785      9,102,050     25.64       .27            .28          1.37         18,154,136       214,721,981
1997       434,423,053      9,040,850     29.97       .24            .34          2.08         30,133,125       273,760,444
1998       476,463,575      8,986,125     31.43       .29            .29          1.65         22,908,091       301,750,135
1999       590,655,679             --     35.05       .26            .26          2.34         43,205,449       394,282,360
2000       596,289,086             --     32.94       .32            .32          4.03         65,921,671       363,263,634
6 mos.
to
June 30,   586,994,701             --     32.49       .13            .05           .30          8,771,659       350,273,991
2001**
</TABLE>

----------
A - Excluding  gains or losses  realized on sale of investments and the dividend
    requirement  on the  Convertible  Preference  Stock,  which was  redeemed on
    August 1, 1999.
B - Computed on the basis of the Corporation's status as a "regulated investment
    company" for Federal income tax purposes.
*   Includes a non-taxable return of capital of $.11.
**  Unaudited.

      The Common Stock is listed on the  American  Stock  Exchange.  On June 29,
2001 (the last trading day of the six-month period),  the market quotations were
as follows:

      Common Stock ....................................  $29.40 low, $29.55 high
                                                              and last sale


                                      [2]
<PAGE>

To the Stockholders of

      CENTRAL SECURITIES CORPORATION:

      Financial  statements  for the six months ended June 30, 2001  reviewed by
our  independent  accountants  and other  pertinent  information  are  submitted
herewith.

      Comparative net assets are as follows:

                                                    June 30,
                                                      2001         December 31,
                                                   (Unaudited)         2000
                                                   -----------     ------------
Net assets ....................................... $586,994,701    $596,289,086
Net assets per share of Common Stock .............        32.49           32.94
  Shares of Common Stock outstanding .............   18,065,546      18,103,346

      Comparative operating results are as follows:

                                                     Six months ended June 30,
                                                    ----------------------------
                                                       2001            2000
                                                    (Unaudited)     (Unaudited)
                                                    -----------     -----------
Net investment income ............................  $ 2,267,409     $ 2,997,695
    Per share of Common Stock ....................          .13*            .18*
Net realized gain on sale of investments .........    8,771,659      49,004,346
Increase (decrease) in net unrealized
  appreciation of investments ....................  (12,989,643)     37,079,236
Increase (decrease) in net assets resulting
  from operations ................................   (1,950,575)     89,081,277

----------
*   Per-share data are based on the average number of Common shares outstanding.

      A dividend of $.35 per share was paid on June 22, 2001 to holders of
Common Stock. Stockholders will be sent a notice concerning the taxability of
all 2001 distributions in January 2002.

      During the first six months of 2001 the Corporation repurchased 37,800
shares of its Common Stock at an average price per share of $27.01. These shares
were purchased on the American Stock Exchange. The Corporation may from time to
time purchase Common Stock in such amounts and at such prices as the Board of
Directors may deem advisable in the best interests of stockholders.

      Stockholders' inquiries are welcome.

                                                  CENTRAL SECURITIES CORPORATION

                                                     WILMOT H. KIDD, President

375 Park Avenue
New York, NY 10152
July 25, 2001


                                      [3]
<PAGE>

                             TEN LARGEST INVESTMENTS

                                  June 30, 2001
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                               % of     Year First
                                                           Cost     Value   Net Assets   Acquired
                                                           -----    -----   ----------  ----------
                                                             (millions)

<S>                                                        <C>      <C>        <C>          <C>
The Plymouth Rock Company, Inc. .....................      $2.2     $44.0      7.5%         1982
Intel Corporation ...................................        .6      38.0      6.5          1986
Flextronics International Ltd. ......................       4.9      37.9      6.4          1996
Capital One Financial Corporation ...................       3.0      36.1      6.1          1994
American Management Systems, Inc. ...................      20.8      35.4      6.0          1984
Analog Devices, Inc. ................................        .9      31.6      5.4          1989
Unisys Corporation ..................................      35.4      29.4      5.0          1999
The Bank of New York Company, Inc. ..................       4.0      28.8      4.9          1993
Household International, Inc. .......................       3.0      26.7      4.5          1992
Murphy Oil Corporation ..............................       9.1      22.1      3.8          1976
</TABLE>

                           PRINCIPAL PORTFOLIO CHANGES

                            April 1 to June 30, 2001
                                   (Unaudited)

                    (Common Stock unless specified otherwise)

<TABLE>
<CAPTION>
                                                                     Number of Shares
                                                         ----------------------------------------
                                                                                           Held
                                                                                         June 30,
                                                         Purchased         Sold            2001
                                                         ---------         ----            ----
<S>                                                       <C>             <C>           <C>
American Power Conversion Corp. .....................                     200,000              --
Church & Dwight Co., Inc. ...........................                     260,000         190,000
Genuity Inc. ........................................     300,000                       3,600,000
Impath Inc. .........................................                       8,500         350,000
Motorola, Inc. ......................................      30,000                         430,000
Mutual Risk Management Ltd. .........................                     240,000              --
PartnerRe Ltd. ......................................                       8,200          91,800
Schlumberger Ltd. ...................................                     100,000              --
SunGard Data Systems Inc. ...........................     300,000*                        600,000
UniFirst Corporation ................................                      20,000         150,000
Unisys Corporation ..................................     145,000                       2,000,000
UnumProvident Corporation ...........................                     200,000              --
Washington Group International, Inc. ................                     700,000              --
</TABLE>

----------
*   Stock split.


                                      [4]
<PAGE>

                      STATEMENT OF ASSETS AND LIABILITIES

                                  June 30, 2001
                                   (Unaudited)

<TABLE>
<CAPTION>
<S>                                                                       <C>           <C>
ASSETS:
    Investments:
        General portfolio securities at market value
          (cost $188,736,521) (Note 1) ...............................  $495,016,889
        Securities of affiliated companies (cost $3,462,486)
          (Notes 1, 5 and 6) .........................................    47,456,109
        Short-term investments (cost $44,527,765) ....................    44,527,765    $587,000,763
                                                                        ------------
    Cash, receivables and other assets:
        Cash .........................................................         3,447
        Dividends receivable .........................................       110,825
        Prepaid expenses .............................................        41,195
        Other assets .................................................        23,386         178,853
                                                                        ------------    ------------
            Total Assets .............................................                   587,179,616
LIABILITIES:
    Accrued expenses and reserves ....................................       184,915
                                                                        ------------
            Total Liabilities ........................................                       184,915
                                                                                        ------------
NET ASSETS ...........................................................                  $586,994,701
                                                                                        ============
NET ASSETS are represented by:
    Common Stock at par value, $1.00 per share, authorized
      30,000,000 shares; issued 18,329,242 (Note 2) ..................                   $18,329,242
    Surplus:
        Paid-in ......................................................  $215,043,933
        Undistributed net gain on sales of investments ...............     8,745,070
        Undistributed net investment income ..........................     1,558,601     225,347,604
                                                                        ------------
    Net unrealized appreciation of investments .......................                   350,273,991
    Treasury stock, at cost (263,696 shares of Common Stock)
      (Note 2) .......................................................                    (6,956,136)
                                                                                        ------------
NET ASSETS ...........................................................                  $586,994,701
                                                                                        ============
NET ASSET VALUE PER COMMON SHARE .....................................                     $32.49
                                                                                           ======
</TABLE>

                 See accompanying notes to financial statements
                   and independent accountants' review report.


                                      [5]
<PAGE>

                             STATEMENT OF OPERATIONS

                     For the six months ended June 30, 2001
                                   (Unaudited)

<TABLE>
<CAPTION>
<S>                                                                      <C>              <C>
INVESTMENT INCOME
Income:
    Dividends ........................................................   $ 2,376,055
    Interest .........................................................       945,788      $3,321,843
                                                                         -----------
Expenses:
    Administration and operations ....................................       264,625
    Investment research ..............................................       213,750
    Legal, auditing and tax fees .....................................        95,509
    Rent and utilities ...............................................        85,668
    Franchise and miscellaneous taxes ................................        77,490
    Directors' fees ..................................................        57,000
    Listing, software and sundry fees ................................        53,428
    Insurance ........................................................        52,952
    Stationery, supplies, printing and postage .......................        31,819
    Transfer agent and registrar fees and expenses ...................        21,497
    Publications .....................................................        21,042
    Travel and telephone .............................................        19,558
    Custodian fees ...................................................        17,061
    Employees' retirement plans ......................................         7,600
    Miscellaneous ....................................................        35,435       1,054,434
                                                                         -----------      ----------
Net investment income ................................................                     2,267,409

NET REALIZED AND UNREALIZED GAIN (LOSS)
  ON INVESTMENTS
Net realized gain from security transactions .........................     8,771,659
Net decrease in unrealized appreciation of investments ...............   (12,989,643)
                                                                         -----------
    Net loss on investments ..........................................                    (4,217,984)
                                                                                          ----------
NET DECREASE IN NET ASSETS RESULTING FROM
  OPERATIONS .........................................................                   ($1,950,575)
                                                                                          ==========
</TABLE>

                 See accompanying notes to financial statements
                   and independent accountants' review report.


                                      [6]
<PAGE>

                       STATEMENTS OF CHANGES IN NET ASSETS

                     For the six months ended June 30, 2001
                      and the year ended December 31, 2000

<TABLE>
<CAPTION>
                                                                         Six months
                                                                            ended
                                                                           June 30,      Year ended
                                                                            2001        December 31,
                                                                         (Unaudited)        2000
                                                                          ---------         ----
<S>                                                                      <C>             <C>
FROM OPERATIONS:
    Net investment income ............................................   $ 2,267,409     $ 5,399,641
    Net realized gain on investments .................................     8,771,659      65,921,671
        Net decrease in unrealized appreciation
          of investments .............................................   (12,989,643)    (31,018,726)
                                                                        ------------    ------------
        Increase (decrease) in net assets resulting
          from operations ............................................    (1,950,575)     40,302,586
                                                                        ------------    ------------
DISTRIBUTIONS TO STOCKHOLDERS FROM:
    Net investment income ............................................      (815,866)     (5,402,497)
    Net realized gain from investment transactions ...................    (5,507,076)    (67,869,760)
                                                                        ------------    ------------
        Decrease in net assets from distributions ....................    (6,322,942)    (73,272,257)
                                                                        ------------    ------------
FROM CAPITAL SHARE TRANSACTIONS: (Note 2)
    Distribution to stockholders reinvested in Common Stock ..........            --      39,089,789
    Cost of shares of Common Stock repurchased .......................    (1,020,868)       (486,711)
                                                                        ------------    ------------
        Increase (decrease) in net assets from capital
          share transactions .........................................    (1,020,868)     38,603,078
                                                                        ------------    ------------
            Total increase (decrease) in net assets ..................    (9,294,385)      5,633,407
NET ASSETS:
    Beginning of period ..............................................   596,289,086     590,655,679
                                                                        ------------    ------------
    End of period (including undistributed net investment income
      of $1,558,601 and $107,057, respectively) ......................  $586,994,701    $596,289,086
                                                                        ============    ============
</TABLE>

                 See accompanying notes to financial statements
                   and independent accountants' review report.


                                      [7]
<PAGE>

                            STATEMENT OF INVESTMENTS

                                  June 30, 2001
                                   (Unaudited)

                          PORTFOLIO SECURITIES (92.4%)
                   STOCKS (COMMON UNLESS SPECIFIED OTHERWISE)

<TABLE>
<CAPTION>
               Prin. Amt.
                or Shares                                                              Value
               ----------                                                              -----
<S>            <C>           <C>                                                   <C>
                            Banking and Finance 17.4%
                 600,000     The Bank of New York Company, Inc. ......             $ 28,800,000
                 600,000     Capital One Financial Corporation .......               36,090,000
                 300,000     First Union Corporation .................               10,482,000
                 400,000     Household International, Inc. ...........               26,680,000
                                                                                   ------------
                                                                                    102,052,000
                                                                                   ------------
                            Business Services 1.2%
                 160,000     ProBusiness Services, Inc.(a) ...........                4,248,000
                 150,000     UniFirst Corporation ....................                2,850,000
                                                                                   ------------
                                                                                      7,098,000
                                                                                   ------------
                            Chemicals 4.5%
               1,600,000     PolyOne Corporation .....................               16,656,000
                 300,000     Rohm and Haas Company ...................                9,870,000
                                                                                   ------------
                                                                                     26,526,000
                                                                                   ------------
                            Computer Software & Services 17.7%
               1,500,000     American Management Systems,
                              Incorporated (a) .......................               35,400,000
                 680,000     Convergys Corporation(a) ................               20,570,000
                 395,000     Peerless Systems Corporation(a) .........                  730,750
                 600,000     SunGard Data Systems Inc.(a) ............               18,006,000
               2,000,000     Unisys Corporation(a) ...................               29,420,000
                                                                                   ------------
                                                                                    104,126,750
                                                                                   ------------
                            Data Processing 1.9%
                 500,000     The Reynolds and Reynolds
                               Company Class A .......................               10,975,000
                                                                                   ------------
                            Electronics 22.2%
                 730,000     Analog Devices, Inc.(a) .................               31,572,500
                 450,000     Arrow Electronics, Inc.(a) ..............               10,930,500
                 200,000     Cabletron Systems, Inc.(a) ..............                4,570,000
               1,450,000     Flextronics International Ltd.(a) .......               37,859,500
               1,300,000     Intel Corporation .......................               38,025,000
                 430,000     Motorola, Inc. ..........................                7,120,800
                                                                                   ------------
                                                                                    130,078,300
                                                                                   ------------
                            Energy 3.8%
                 300,000     Murphy Oil Corporation ..................               22,080,000
                                                                                   ------------
</TABLE>


                                      [8]
<PAGE>

<TABLE>
<CAPTION>
               Prin. Amt.
                or Shares                                                              Value
               ----------                                                              -----
<S>            <C>           <C>                                                   <C>
                            Health Care 2.6%
                 350,000     Impath Inc.(a) ..........................             $ 15,505,000
                                                                                   ------------
                            Household Products 0.8%
                 190,000     Church & Dwight Co., Inc. ...............                4,835,500
                                                                                   ------------
                            Insurance 8.3%
                  91,800     PartnerRe Ltd ...........................                5,085,720
                  70,000     The Plymouth Rock Company, Inc.
                               Class A(b)(c) .........................               43,960,000
                                                                                   ------------
                                                                                     49,045,720
                                                                                   ------------
                            Manufacturing 4.9%
                 510,000     ArvinMeritor, Inc. ......................                8,537,400
                 560,400     Brady Corporation Class A ...............               20,247,253
                                                                                   ------------
                                                                                     28,784,653
                                                                                   ------------
                            Telecommunications 6.4%
                 900,000     Broadwing Inc.(a) .......................               22,005,000
               3,600,000     Genuity Inc.(a) .........................               11,232,000
                 240,000     Nextel Communications, Inc. Class A(a) ..                4,200,000
                                                                                   ------------
                                                                                     37,437,000
                                                                                   ------------
                            Transportation 0.6%
                 533,757     Transport Corporation of America, Inc.
                               Class B(a)(b) .........................                3,496,108
                                                                                   ------------
                            Miscellaneous 0.1%
                             Grumman Hill Investments, L.P.(a)(c) ....                  432,967
                                                                                   ------------
                               Total Portfolio Securities
                                 (cost $192,199,007) .................              542,472,998
                                                                                   ------------
</TABLE>


                                      [9]
<PAGE>

<TABLE>
<CAPTION>
               Prin. Amt.
                or Shares                                                              Value
               ----------                                                              -----
<S>            <C>           <C>                                                   <C>
                            SHORT-TERM DEBT INVESTMENTS 7.6%
             $35,018,000     American Express Credit Corp.
                                3.543%-3.867% due 7/5/01-8/8/01 ......             $ 34,951,571
               3,913,000     Ford Motor Credit Corp. 3.562%
                                due 8/1/01 ...........................                3,901,207
               5,685,000     General Electric Capital Corp.
                                3.795%-3.796% due 7/18/01 ............                5,674,987
                                                                                   ------------
                                   Total Short-Term Investments
                                     (cost $44,527,765) ..............               44,527,765
                                                                                   ------------
                                   Total Investments
                                     (cost $236,726,772) (100.0%) ....              587,000,763
                                   Liabilities, less cash,
                                     receivables and other
                                     assets (0.0%) ...................                   (6,062)
                                                                                   ------------
                                   Net Assets (100%) .................             $586,994,701
                                                                                   ============
</TABLE>

----------
(a) Non-dividend paying.
(b) Affiliate as defined in the Investment Company Act of 1940.
(c) Valued at estimated fair value.

                See accompanying notes to financial statements.


                                      [10]
<PAGE>

                  NOTES TO FINANCIAL STATEMENTS -- (unaudited)

      1. Significant  Accounting Policies -- The Corporation is registered under
the Investment Company Act of 1940, as amended, as a non-diversified, closed-end
management  investment  company.  The following is a summary of the  significant
accounting policies  consistently followed by the Corporation in the preparation
of its  financial  statements.  The policies are in conformity  with  accounting
principles generally accepted in the United States of America.

      Security  Valuation -- Securities are valued at the last sale price or, if
         unavailable,  at the closing bid price.  Corporate  discount  notes are
         valued at amortized cost, which approximates  market value.  Securities
         for which no ready market exists,  including The Plymouth Rock Company,
         Inc.  Class A Common Stock,  are valued at estimated  fair value by the
         Board of Directors.

      Federal  Income  Taxes  -- It is the  Corporation's  policy  to  meet  the
         requirements  of the  Internal  Revenue  Code  applicable  to regulated
         investment companies and to distribute all of its taxable income to its
         stockholders. Therefore, no Federal income taxes have been accrued.

      Useof  Estimates  --  The  preparation  of  the  financial  statements  in
         accordance with accounting  principles generally accepted in the United
         States of America requires management to make estimates and assumptions
         that affect the amounts  reported.  Actual  results  could  differ from
         those estimates.

      Other  --  Security  transactions  are  accounted  for  on  the  date  the
         securities  are  purchased  or  sold,  and cost of  securities  sold is
         determined   by   specific   identification.    Dividend   income   and
         distributions to stockholders are recorded on the ex-dividend date.

      2. Common Stock -- The Corporation repurchased 37,800 shares of its Common
Stock in the first six  months of 2001 at an  average  price of $27.01 per share
representing an average  discount from net asset value of 8.6%. It may from time
to time purchase Common Stock in such amounts and at such prices as the Board of
Directors  may  deem  advisable  in the  best  interests  of  the  stockholders.
Purchases  will  only be made at less than net asset  value per  share,  thereby
increasing  the net asset  value of shares held by the  remaining  stockholders.
Shares so acquired may be held as treasury  stock,  available for optional stock
distributions, or may be retired.

      3. Investment  Transactions -- The aggregate cost of securities  purchased
and the aggregate  proceeds of securities  sold during the six months ended June
30, 2001,  excluding short-term  investments,  were $30,544,428 and $39,113,273,
respectively.

      As of June 30, 2001,  based on cost for Federal  income tax purposes,  the
aggregate gross unrealized appreciation and depreciation for all securities were
$359,283,158 and $9,009,167, respectively.

      4. Operating  Expenses -- The aggregate  remuneration  paid during the six
months ended June 30, 2001 to officers and  directors  amounted to $477,000,  of
which $57,000 was paid as fees to directors  who were not officers.  Benefits to
employees are provided through a profit sharing  retirement plan.  Contributions
to the plan are  made at the  discretion  of the  Board of  Directors,  and each
participant's benefits vest after three years. No contributions were made to the
plan for the six months ended June 30, 2001.


                                      [11]
<PAGE>

             NOTES TO FINANCIAL STATEMENTS -- continued (unaudited)

      5. Affiliates -- The Plymouth Rock Company, Inc. and Transport Corporation
of America,  Inc. are  affiliates  as defined in the  Investment  Company Act of
1940. The Corporation  received dividends of $445,200 from affiliates during the
six months ended June 30, 2001.  Unrealized  appreciation  related to affiliates
increased by $4,660,921 for the six months ended June 30, 2001 to $43,993,622.

      6. Restricted  Securities -- The Corporation  from time to time invests in
securities the resale of which is restricted.  On June 30, 2001 such investments
had  an  aggregate  value  of  $45,378,326,  which  was  equal  to  7.7%  of the
Corporation's net assets. Investments in restricted securities at June 30, 2001,
including acquisition dates and cost, were:

<TABLE>
<CAPTION>
           Company                    Shares          Security          Date Purchased         Cost
------------------------------      ----------   -------------------    --------------     ----------
<S>                                   <C>          <C>                      <C>            <C>
Broadwing Inc.                        40,301       Common Stock             11/24/99       $        3

Grumman Hill Investments, L.P.                     Limited Partnership       9/11/85           33,428
                                                      Interest

The Plymouth Rock                     70,000       Class A Common           12/15/82        1,500,000
   Company, Inc.                                      Stock                   6/9/84          699,986
</TABLE>

      In general, the Corporation does not have the right to demand registration
of the  restricted  securities.  Unrealized  appreciation  related to restricted
securities  increased  by  $3,566,397  for the six months ended June 30, 2001 to
$43,144,909.


                                      [12]
<PAGE>

                              FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
                                                 Six Mos.
                                                  Ended
                                              June 30, 2001
                                               (Unaudited)       2000           1999           1998           1997          1996
                                               ----------        ----           ----           ----           ----          -----
<S>                                             <C>            <C>            <C>            <C>            <C>            <C>
Per Share Operating Performance
Net asset value, beginning of period ........   $  32.94       $  35.05       $  31.43       $  29.97       $  25.64       $  21.74
Net investment income .......................        .13            .32            .30            .34            .29            .33
Net realized and unrealized gain (loss)
  on securities .............................       (.23)          1.92           5.96           3.11           6.51           5.28
                                                --------       --------       --------       --------       --------       --------
      Total from investment
        operations ..........................       (.10)          2.24           6.26           3.45           6.80           5.61
Less:
Dividends from net investment income*
    To Preference Stockholders ..............         --             --            .04            .05            .05            .06
    To Common Stockholders ..................        .05            .32            .26            .29            .34            .28
Distributions from capital gains*
    To Common Stockholders ..................        .30           4.03           2.34           1.65           2.08           1.37
                                                --------       --------       --------       --------       --------       --------
      Total distributions ...................        .35           4.35           2.64           1.99           2.47           1.71
                                                --------       --------       --------       --------       --------       --------
Net asset value, end of period ..............   $  32.49       $  32.94       $  35.05       $  31.43       $  29.97       $  25.64
                                                ========       ========       ========       ========       ========       ========
Per share market value,
  end of period .............................   $  29.55       $  28.25       $  27.25       $  24.38       $  29.69       $  24.13
Total investment return,
  market(%) .................................       6.81+         17.75          22.96         (11.57)         35.60          22.35
Total investment return, NAV(%) .............      (0.25)+         7.02          31.79          13.75          26.08          25.97
Ratios/Supplemental Data:
Net assets, end of period(000) ..............   $586,995       $596,289       $590,656       $476,464       $434,423       $356,686
Ratio of expenses to average net
  assets for Common(%) ......................        .36++          .38            .45            .51            .54            .57
Ratio of net investment income to
  average net assets for
  Common(%) .................................        .77++          .83            .89           1.09            .99           1.36
Portfolio turnover rate(%) ..................       5.58+         13.54          12.06           6.21          10.92           9.89
</TABLE>


----------
 *  Computed on the basis of the Corporation's status as a "regulated investment
    company" for Federal income tax purposes.
 +  Not annualized.
++  Annualized, not necessarily indicative of full year ratio.

                 See accompanying notes to financial statements
                   and independent accountants' review report.


                                      [13]
<PAGE>

--------------------------------------------------------------------------------
                     INDEPENDENT ACCOUNTANTS' REVIEW REPORT

      TO THE BOARD OF DIRECTORS AND STOCKHOLDERS OF
        CENTRAL SECURITIES CORPORATION

            We  have   reviewed  the   accompanying   statement  of  assets  and
      liabilities, including the statement of investments, of Central Securities
      Corporation as of June 30, 2001, and the related statements of operations,
      changes in net assets and financial  highlights  for the six-month  period
      ended June 30, 2001. These financial  statements are the representation of
      the management of Central Securities Corporation.

            We  have   conducted  our  review  in  accordance   with   standards
      established by the American Institute of Certified Public  Accountants.  A
      review of interim financial  information  consists principally of applying
      analytical  procedures to financial  data and making  inquiries of persons
      responsible for financial and accounting matters. It is substantially less
      in scope than an audit in  accordance  with  generally  accepted  auditing
      standards,  the  objective  of  which  is  the  expression  of an  opinion
      regarding the financial  statements taken as a whole.  Accordingly,  we do
      not express such an opinion.

            Based on our review, we are not aware of any material  modifications
      that should be made to the accompanying  financial statements in order for
      them to be in conformity with accounting  principles generally accepted in
      the United States of America.

            We have previously  audited,  in accordance with auditing  standards
      generally  accepted in the United  States of  America,  the  statement  of
      changes in net assets for the year ended  December 31, 2000, and financial
      highlights  for each of the five years in the period  ended  December  31,
      2000, and in our report dated January 24, 2001 we expressed an unqualified
      opinion  on  such  statement  of  changes  in  net  assets  and  financial
      highlights.

                                                          KPMG LLP

      New York, NY
      July 25, 2001
--------------------------------------------------------------------------------

                  ANNUAL MEETING OF STOCKHOLDERS -- (unaudited)

            The annual meeting of stockholders of the Corporation was held on
      March 14, 2001. At the meeting all of the directors of the Corporation
      were reelected by the following vote of the holders of the Common Stock:
      Donald G. Calder, 15,765,228 shares in favor, 55,432 shares withheld; Jay
      R. Inglis, 15,755,889 shares in favor, 64,771 shares withheld; Dudley D.
      Johnson, 15,770,524 shares in favor, 50,136 shares withheld; Wilmot H.
      Kidd, 15,769,891 shares in favor, 50,819 shares withheld; and C. Carter
      Walker, Jr., 15,768,374 shares in favor, 52,286 shares withheld.

            In addition, the selection of KPMG LLP as independent auditors of
      the Corporation for the year 2001 was ratified by the following vote of
      the holders of the Common Stock: 15,732,336 shares in favor, 35,878 shares
      against, 52,446 shares abstaining.


                                      [14]
<PAGE>

                               BOARD OF DIRECTORS

DONALD G. CALDER                                       DUDLEY D. JOHNSON
     President                                             President
     G. L. Ohrstrom & Co., Inc.                            Young & Franklin Inc.
     New York, NY                                          Liverpool, NY

JAY R. INGLIS                                          WILMOT H. KIDD
     Executive Vice President                              President
     National Marine Underwriters, Inc.
     New York, NY

                              C. CARTER WALKER, JR.
                                 Washington, CT

                                    OFFICERS

                       WILMOT H. KIDD, President
                       CHARLES N. EDGERTON, Vice President and Treasurer
                       MARLENE A. KRUMHOLZ, Secretary

                                     OFFICE

                       375 Park Avenue, New York, NY 10152
                                  212-688-3011
                            www.centralsecurities.com

                                    CUSTODIAN

                                 UMB Bank, N. A.
                   P.O. Box 419226, Kansas City, MO 64141-6226

                          TRANSFER AGENT AND REGISTRAR

                     EquiServe, First Chicago Trust Division
                    P.O. Box 2500, Jersey City, NJ 07303-2500

                              INDEPENDENT AUDITORS

                                    KPMG LLP
                      757 Third Avenue, New York, NY 10017


                                      [15]
</TEXT>
</DOCUMENT>
