UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-PX ANNUAL REPORT OF PROXY VOTING RECORD OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-06179 ---------------------------- FLAHERTY & CRUMRINE PREFERRED INCOME FUND INCORPORATED ---------------------------------------------------------- (Exact name of registrant as specified in charter) 301 E. Colorado Boulevard, Suite 720 PASADENA, CA 91101 ---------------------------------------------------------- (Address of principal executive offices) (Zip code) Donald F. Crumrine Flaherty & Crumrine Inc. 301 E. Colorado Boulevard, Suite 720 PASADENA, CA 91101 ------------------------------ ------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 626-795-7300 --------------- Date of fiscal year end: NOVEMBER 30 --------------- Date of reporting period: JULY 1, 2003 - JUNE 30, 2004 ----------------------------- Form N-PX is to be used by a registered management investment company, other than a small business investment company registered on Form N-5 (ss.ss. 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than August 31 of each year, containing the registrant's proxy voting record for the most recent twelve-month period ended June 30, pursuant to section 30 of the Investment Company Act of 1940 and rule 30b1-4 thereunder (17 CFR 270.30b1-4). The Commission may use the information provided on Form N-PX in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-PX, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-PX unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. PROXY VOTING RECORD FOR PERIOD JULY 1, 2003 TO JUNE 30, 2004 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-PX ANNUAL REPORT OF PROXY VOTING RECORD OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number: 811 - 06179 Exact name of registrant as specified in charter: Flaherty & Crumrine Preferred Income Fund Incorporated Address of principal executive offices: 301 E. Colorado Boulevard, Suite 720, Pasadena, California 91101 Name and address of agent for service: Donald F. Crumrine, Flaherty & Crumrine Preferred Income Fund Incorporated, 301 E. Colorado Boulevard, Suite 720, Pasadena, California 91101 Registrant's telephone number, including area code: 626 - 795 - 7300 Date of fiscal year end: November 30, 2004 Date of reporting period: Twelve Months ended June 30, 2004 ITEM 1. PROXY VOTING RECORD --------------------------- --------------------------------------------------------------------------------------------------------------- NAME OF THE ISSUER EXCHANGE TICKER SYMBOL CUSIP SHAREHOLDER MEETING DATE --------------------------------------------------------------------------------------------------------------- Carolina Power & Light Company CPWLP 144141405 12-May-04 --------------------------------------------------------------------------------------------------------------- VOTE FOR OR AGAINST VOTE FOR OR AGAINST MATTER VOTED PROPOSED BY VOTE CAST PROPOSAL MANAGEMENT Approve directors slate Issuer No (1) NA NA --------------------------------------------------------------------------------------------------------------- NAME OF THE ISSUER EXCHANGE TICKER SYMBOL CUSIP SHAREHOLDER MEETING DATE --------------------------------------------------------------------------------------------------------------- Central Illinois Light Company CILTM 153645882 27-Apr-04 --------------------------------------------------------------------------------------------------------------- MATTER VOTED PROPOSED BY VOTE CAST VOTE FOR OR AGAINST VOTE FOR OR AGAINST Approve directors slate Issuer No (1) PROPOSAL MANAGEMENT NA NA THURSDAY, AUGUST 05, 2004 PAGE 1 OF 7 --------------------------------------------------------------------------------------------------------------- NAME OF THE ISSUER EXCHANGE TICKER SYMBOL CUSIP SHAREHOLDER MEETING DATE --------------------------------------------------------------------------------------------------------------- Central Illinois Light Company CILTL 153645304 27-Apr-04 --------------------------------------------------------------------------------------------------------------- VOTE FOR OR AGAINST VOTE FOR OR AGAINST MATTER VOTED PROPOSED BY VOTE CAST PROPOSAL MANAGEMENT Approve directors slate Issuer No (1) NA NA --------------------------------------------------------------------------------------------------------------- NAME OF THE ISSUER EXCHANGE TICKER SYMBOL CUSIP SHAREHOLDER MEETING DATE --------------------------------------------------------------------------------------------------------------- Connecticut Light and Power Company, The CNTHP 207597774 25-Nov-03 --------------------------------------------------------------------------------------------------------------- VOTE FOR OR AGAINST VOTE FOR OR AGAINST MATTER VOTED PROPOSED BY VOTE CAST PROPOSAL MANAGEMENT Remove 20% limit on unsec. Debt; receive 1% fee Issuer Yes Against Against Temp. waiver of 10% S/T debt limit Issuer Yes Against Against --------------------------------------------------------------------------------------------------------------- NAME OF THE ISSUER EXCHANGE TICKER SYMBOL CUSIP SHAREHOLDER MEETING DATE --------------------------------------------------------------------------------------------------------------- Connecticut Light and Power Company, The CNTHO 207597782 25-Nov-03 --------------------------------------------------------------------------------------------------------------- VOTE FOR OR AGAINST VOTE FOR OR AGAINST MATTER VOTED PROPOSED BY VOTE CAST PROPOSAL MANAGEMENT Remove 20% limit on unsec. Debt; receive 1% fee Issuer Yes Against Against Temp. waiver of 10% S/T debt limit Issuer Yes Against Against THURSDAY, AUGUST 05, 2004 PAGE 2 OF 7 --------------------------------------------------------------------------------------------------------------- NAME OF THE ISSUER EXCHANGE TICKER SYMBOL CUSIP SHAREHOLDER MEETING DATE --------------------------------------------------------------------------------------------------------------- Connecticut Light and Power Company, The CNLPL 207597709 25-Nov-03 --------------------------------------------------------------------------------------------------------------- VOTE FOR OR AGAINST VOTE FOR OR AGAINST MATTER VOTED PROPOSED BY VOTE CAST PROPOSAL MANAGEMENT Remove 20% limit on unsec. Debt; receive 1% fee Issuer Yes Against Against Temp. waiver of 10% S/T debt limit Issuer Yes Against Against --------------------------------------------------------------------------------------------------------------- NAME OF THE ISSUER EXCHANGE TICKER SYMBOL CUSIP SHAREHOLDER MEETING DATE --------------------------------------------------------------------------------------------------------------- Conseco, Inc. CNCEN 20846F201 04-Sep-03 --------------------------------------------------------------------------------------------------------------- VOTE FOR OR AGAINST VOTE FOR OR AGAINST MATTER VOTED PROPOSED BY VOTE CAST PROPOSAL MANAGEMENT Agree to 5th Amended ReOrg. Plan by Toprs Comm. Security Holder Yes For Against --------------------------------------------------------------------------------------------------------------- NAME OF THE ISSUER EXCHANGE TICKER SYMBOL CUSIP SHAREHOLDER MEETING DATE --------------------------------------------------------------------------------------------------------------- Conseco, Inc. CNCEP 20846M206 04-Sep-03 --------------------------------------------------------------------------------------------------------------- VOTE FOR OR AGAINST VOTE FOR OR AGAINST MATTER VOTED PROPOSED BY VOTE CAST PROPOSAL MANAGEMENT Agree to 5th Amended ReOrg. Plan by Toprs Comm. Security Holder Yes For Against THURSDAY, AUGUST 05, 2004 PAGE 3 OF 7 --------------------------------------------------------------------------------------------------------------- NAME OF THE ISSUER EXCHANGE TICKER SYMBOL CUSIP SHAREHOLDER MEETING DATE --------------------------------------------------------------------------------------------------------------- Conseco, Inc. CNCEM 20847D205 04-Sep-03 --------------------------------------------------------------------------------------------------------------- VOTE FOR OR AGAINST VOTE FOR OR AGAINST MATTER VOTED PROPOSED BY VOTE CAST PROPOSAL MANAGEMENT Agree to 5th Amended ReOrg. Plan by Toprs Comm. Security Holder Yes For Against --------------------------------------------------------------------------------------------------------------- NAME OF THE ISSUER EXCHANGE TICKER SYMBOL CUSIP SHAREHOLDER MEETING DATE --------------------------------------------------------------------------------------------------------------- Duke Energy Corporation DUK 264399106 13-May-04 --------------------------------------------------------------------------------------------------------------- VOTE FOR OR AGAINST VOTE FOR OR AGAINST MATTER VOTED PROPOSED BY VOTE CAST PROPOSAL MANAGEMENT Approve directors Issuer Yes For For Ratify auditors Issuer Yes For For Approve incentives Issuer Yes For For --------------------------------------------------------------------------------------------------------------- NAME OF THE ISSUER EXCHANGE TICKER SYMBOL CUSIP SHAREHOLDER MEETING DATE --------------------------------------------------------------------------------------------------------------- Idaho Power Company IDHOP 451380307 20-May-04 --------------------------------------------------------------------------------------------------------------- VOTE FOR OR AGAINST VOTE FOR OR AGAINST MATTER VOTED PROPOSED BY VOTE CAST PROPOSAL MANAGEMENT Approve directors slate Issuer No (1) NA NA Ratify auditors Issuer No (1) NA NA THURSDAY, AUGUST 05, 2004 PAGE 4 OF 7 --------------------------------------------------------------------------------------------------------------- NAME OF THE ISSUER EXCHANGE TICKER SYMBOL CUSIP SHAREHOLDER MEETING DATE --------------------------------------------------------------------------------------------------------------- Wachovia Preferred Funding Corp. 7.25% Series A WNA/P 92977V206 12-Dec-03 --------------------------------------------------------------------------------------------------------------- VOTE FOR OR AGAINST VOTE FOR OR AGAINST MATTER VOTED PROPOSED BY VOTE CAST PROPOSAL MANAGEMENT Approve director slate. Issuer Yes Abstain Against --------------------------------------------------------------------------------------------------------------- NAME OF THE ISSUER EXCHANGE TICKER SYMBOL CUSIP SHAREHOLDER MEETING DATE --------------------------------------------------------------------------------------------------------------- Wisconsin Power and Light Company WIS 976826305 02-Jun-04 --------------------------------------------------------------------------------------------------------------- VOTE FOR OR AGAINST VOTE FOR OR AGAINST MATTER VOTED PROPOSED BY VOTE CAST PROPOSAL MANAGEMENT Approve director slate. Issuer No (1 NA NA --------------------------------------------------------------------------------------------------------------- NAME OF THE ISSUER EXCHANGE TICKER SYMBOL CUSIP SHAREHOLDER MEETING DATE --------------------------------------------------------------------------------------------------------------- Xcel Energy Inc. XEL B 98389B308 20-May-04 --------------------------------------------------------------------------------------------------------------- VOTE FOR OR AGAINST VOTE FOR OR AGAINST MATTER VOTED PROPOSED BY VOTE CAST PROPOSAL MANAGEMENT Eliminate Classified Board terms. Issuer Yes For For Approve directors slate Issuer Yes For For Approve Director Stock compensation plan. Issuer Yes For For THURSDAY, AUGUST 05, 2004 PAGE 5 OF 7 --------------------------------------------------------------------------------------------------------------- NAME OF THE ISSUER EXCHANGE TICKER SYMBOL CUSIP SHAREHOLDER MEETING DATE --------------------------------------------------------------------------------------------------------------- Xcel Energy Inc. XEL G 98389B704 20-May-04 --------------------------------------------------------------------------------------------------------------- VOTE FOR OR AGAINST VOTE FOR OR AGAINST MATTER VOTED PROPOSED BY VOTE CAST PROPOSAL MANAGEMENT Eliminate Classified Board terms. Issuer Yes For For Approve directors slate Issuer Yes For For Approve Director Stock compensation plan. Issuer Yes For For --------------------------------------------------------------------------------------------------------------- NAME OF THE ISSUER EXCHANGE TICKER SYMBOL CUSIP SHAREHOLDER MEETING DATE --------------------------------------------------------------------------------------------------------------- Xcel Energy Inc. XEL D 98389B506 20-May-04 --------------------------------------------------------------------------------------------------------------- VOTE FOR OR AGAINST VOTE FOR OR AGAINST MATTER VOTED PROPOSED BY VOTE CAST PROPOSAL MANAGEMENT Eliminate Classified Board terms. Issuer Yes For For Approve directors slate Issuer Yes For For Approve Director Stock compensation plan. Issuer Yes For For --------------------------------------------------------------------------------------------------------------- NAME OF THE ISSUER EXCHANGE TICKER SYMBOL CUSIP SHAREHOLDER MEETING DATE --------------------------------------------------------------------------------------------------------------- Xcel Energy Inc. XEL E 98389B605 20-May-04 VOTE FOR OR AGAINST VOTE FOR OR AGAINST MATTER VOTED PROPOSED BY VOTE CAST PROPOSAL MANAGEMENT Eliminate Classified Board terms. Issuer Yes For For Approve directors slate Issuer Yes For For Approve Director Stock compensation plan. Issuer Yes For For THURSDAY, AUGUST 05, 2004 PAGE 6 OF 7 --------------------------------------------------------------------------------------------------------------- NAME OF THE ISSUER EXCHANGE TICKER SYMBOL CUSIP SHAREHOLDER MEETING DATE --------------------------------------------------------------------------------------------------------------- Xcel Energy Inc. XEL C 98389B407 20-May-04 --------------------------------------------------------------------------------------------------------------- VOTE FOR OR AGAINST VOTE FOR OR AGAINST MATTER VOTED PROPOSED BY VOTE CAST PROPOSAL MANAGEMENT Eliminate Classified Board terms. Issuer Yes For For Approve directors slate Issuer Yes For For Approve Director Stock compensation plan. Issuer Yes For For Notes: (1) The registrant did not cast a vote since the securities in question were preferred or preference stocks of a utility operating company the common stock of which was 100% controlled by the parent company and where the election outcome was therefore foreordained. THURSDAY, AUGUST 05, 2004 PAGE 7 OF 7 SIGNATURES Pursuant to the requirements of the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Registrant FLAHERTY & CRUMRINE PREFERRED INCOME FUND INCORPORATED ---------------------------------------------------------------------- By (Signature and Title)* /S/ DONALD F. CRUMRINE ------------------------------------------------------- Donald F. Crumrine, Director, Chairman of the Board & Chief Executive Officer (Principal Executive Officer) Date AUGUST 6, 2004 ---------------------------------------------------------------------------- *Print the name and title of each signing officer under his or her signature.