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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM N-Q

            QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
                         MANAGEMENT INVESTMENT COMPANY


Investment Company Act file number                   811-00505
                                    ------------------------------------------

                            Philadelphia Fund, Inc.
------------------------------------------------------------------------------
              (Exact name of registrant as specified in charter)

          1200 North Federal Highway, Suite 424, Boca Raton, FL 33432
------------------------------------------------------------------------------
          (Address of principal executive offices)          (Zip code)

                         Baxter Financial Corporation
          1200 North Federal Highway, Suite 424, Boca Raton, FL 33432
------------------------------------------------------------------------------
                   (Name and address of agent for service)

Registrant's telephone number, including area code: (561) 395-2155
                                                   ---------------------------

Date of fiscal year end:   November 30, 2008
                         -----------------------------------------------------

Date of reporting period:  August 29, 2008
                         -----------------------------------------------------













<PAGE>
Item 1. Schedule of Investments

                            PHILADELPHIA FUND, INC.
PORTFOLIO OF INVESTMENTS - August 29, 2008
<TABLE>
<CAPTION>
Shares                                                               Value
-------                                                          -------------
<C>      <S>                                                     <C>
                             COMMON STOCKS - 74.3%
                                   BANKS - 1.3%
 30,000   Wells Fargo & Co.   . . . . . . . . . . . . . . . .    $     908,100
                                                                 -------------
                          CHEMICALS-DIVERSIFIED - 3.0%
 60,000   Dow Chemical Co.    . . . . . . . . . . . . . . . .        2,047,800
                                                                 -------------

                 CONSTRUCTION / AGRICULTURE MACHINERY	3.1%
 30,000   Deere & Co.   . . . . . . . . . . . . . . . . . . .        2,117,100
                                                                 -------------
                           ELECTRIC UTILITIES - 18.8%
 30,000   American Electric Power Co., Inc.   . . . . . . . .        1,171,200
124,800   Duke Energy Corp.   . . . . . . . . . . . . . . . .        2,176,512
 25,000   FirstEnergy Corp.   . . . . . . . . . . . . . . . .        1,816,000
 70,000   Progress Energy, Inc.   . . . . . . . . . . . . . .        3,057,600
140,000   TECO Energy, Inc.   . . . . . . . . . . . . . . . .        2,497,600
 50,000   Southern Company  . . . . . . . . . . . . . . . . .        1,875,500
                                                                 -------------
                                                                    12,594,412
                                                                 -------------
                             FOOD PROCESSING - 4.1%
 50,000   Kellogg Co.   . . . . . . . . . . . . . . . . . . .        2,722,000
                                                                 -------------
                            HEALTH CARE PLANS - 1.4%
 30,000   UnitedHealth Group Inc.   . . . . . . . . . . . . .          913,500
                                                                 -------------
                        NATURAL GAS DISTRIBUTION - 2.0%
 50,000   Spectra Energy Corp.  . . . . . . . . . . . . . . .        1,323,000
                                                                 -------------
                         NATURAL GAS UTILITIES - 2.2%
 25,000   Sempra Energy . . . . . . . . . . . . . . . . . . .        1,448,000
                                                                 -------------
                          OIL & GAS OPERATIONS - 5.4%
 15,000   Chevron Corporation . . . . . . . . . . . . . . . .        1,294,800
 25,000   Marathon Oil Corp.  . . . . . . . . . . . . . . . .        1,126,750
 15,000   Occidental Petroleum Corp.  . . . . . . . . . . . .        1,190,400
                                                                 -------------
                                                                     3,611,950
                                                                 -------------
                     PERSONAL & HOUSEHOLD PRODUCTS - 5.2%
 50,000   Procter & Gamble Company  . . . . . . . . . . . . .        3,488,500
                                                                 -------------
                            PHARMACEUTICALS - 3.1%
 30,000   Johnson & Johnson   . . . . . . . . . . . . . . . .        2,112,900
                                                                 -------------

<PAGE>
                               PUBLISHING - 0.9%
  1,000   Washington Post Co. Class "B" . . . . . . . . . . .          596,500
                                                                 -------------
                              RESTAURANTS - 3.7%
 40,000   McDonald's Corp.  . . . . . . . . . . . . . . . . .        2,482,000
                                                                 -------------
                            RETAIL DISCOUNT - 4.4%
 50,000   Wal-Mart Stores, Inc.   . . . . . . . . . . . . . .        2,953,500
                                                                 -------------
                            RETAIL SPECIALTY - 4.0%
 40,000   Costco Wholesale Corp.  . . . . . . . . . . . . . .        2,682,400
                                                                 -------------
                              SOFT DRINKS - 4.7%
 60,000   Coca-Cola Company . . . . . . . . . . . . . . . . .        3,124,200
                                                                 -------------
                           TELECOMMUNICATIONS - 7.0%
 60,000   AT&T Inc.   . . . . . . . . . . . . . . . . . . . .        1,919,400
 80,000   Verizon Communications Inc.   . . . . . . . . . . .        2,809,600
                                                                 -------------
                                                                     4,729,000
                                                                 -------------

Total Value of Common Stocks (Cost $39,803,282) . . . . . . .       49,854,862
                                                                 -------------
Principal
  Amount
---------
                      SHORT-TERM CORPORATE NOTES - 25.1%
$3,300M   AIG Funding, Inc., 2.547%,
           due 09/04/2008 . . . . . . . . . . . . . . . . . .        3,299,310
 3,300M   American Express Co., 1.978%,
           due 09/04/2008 . . . . . . . . . . . . . . . . . .        3,299,464
 1,700M   General Electric Capital Corp., 1.958%,
           due 09/02/2008 . . . . . . . . . . . . . . . . . .        1,699,909
 2,500M   HSBC Finance Corp., 1.876%,
           due 09/04/2008 . . . . . . . . . . . . . . . . . .        2,499,615
 3,000M   Prudential Funding LLC, 1.978%,
           due 09/02/2008 . . . . . . . . . . . . . . . . . .        2,999,838
 3,000M   U.S. Bancorp, 1.981%,
           due 09/02/2008 . . . . . . . . . . . . . . . . . .        3,000,000
                                                                 -------------
Total Value of Short-Term Corporate Notes
  (Cost $16,798,134)  . . . . . . . . . . . . . . . . . . . .       16,798,134
                                                                 -------------

Total Value of Investments (Cost $56,601,416) . . .   99.4%         66,652,996

Other Assets Less Liabilities . . . . . . . . . . .     .6             408,142
                                                     -----       -------------
Net Assets  . . . . . . . . . . . . . . . . . . . .  100.0%      $  67,061,138
                                                     =====       =============
</TABLE>



------------------------------------------------------------------------------
<PAGE>
Footnote:

Security Valuation - securities listed on national exchanges are valued
at the closing sales price while securities trading on the NASDAQ National
Market are valued at the NASDAQ Official Closing Price. If market quotations
are not readily available, securities will be valued at their fair values as
determined in accordance with procedures approved by the Board of Directors.
Short-term obligations acquired at par are stated at cost which, when combined
with interest receivable, approximates fair value. Short-term obligations
acquired at a discount are stated at amortized cost which approximates fair
value.

Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below:

   Level 1 - quoted prices in active markets for identical securities,

   Level 2 - other significant observable inputs (including quoted
             prices for similar securities, interest rates, prepayment
             speeds, credit risk, etc.), and

   Level 3 - significant unobservable inputs (including the Fund's own
             assumptions in determining the fair value of investments)

   The inputs or methodology used for valuing securities are not necessarily
an indication of the risk associated with investing in those securities. For
example, short-term securities with maturities of 60 days or less are valued
at amortized cost, in accordance with rules under the Investment Company Act
of 1940.  Generally, amortized cost approximates the current fair value of a
security, but since the value is not obtained from a quoted price in an active
market, such securities are reflected as Level 2.

   The following is a summary of the inputs used to value the Fund's net
assets as of August 29, 2008:

   Valuation Inputs                                Investments in Securities
   ----------------                                -------------------------
   Level 1 - Quoted prices . . . . . . . . . . . .        $49,854,862
   Level 2 - Other significant observable inputs .         16,798,134
   Level 3 - Significant unobservable inputs . . .                ---
                                                          -----------
   Total . . . . . . . . . . . . . . . . . . . . .        $66,652,996
                                                          ===========













<PAGE>

Item 2. Controls and Procedures.

(a) The registrant's principal executive officer and principal financial
    officer have evaluated the effectiveness of the registrant's disclosure
    controls and procedures (as defined in Rule 30a-3(c) under the Investment
    Company Act of 1940, as amended)(the "Procedures") as of a date within 90
    days of the filing date of this report, and have concluded that the
    Procedures are effective in providing reasonable assurances that the
    information required to be disclosed by the registrant in this report is
    recorded, processed, summarized and reported by the filing date. The
    registrant's management, including the principal executive officer and
    the principal financial officer, recognizes that any set of controls and
    procedures, no matter how well designed and operated, can provide only
    reasonable assurances of achieving the desired control objectives.

(b) There were no changes in the registrant's internal control over
    financial reporting (as defined in Rule 30a-3(d) under the Investment
    Company Act of 1940, as amended) that occurred during the registrant's
    last fiscal quarter that have materially affected, or are reasonably
    likely to materially affect, the registrant's internal control over
    financial reporting.


Item 3. Exhibits

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of
1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.




























<PAGE>


                                  SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934
and 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)                 Philadelphia Fund, Inc.
            ------------------------------------------------------------------

By (Signature and Title)*    /s/ Donald H. Baxter
                         -----------------------------------------------------
                                 Donald H. Baxter, Chief Executive Officer

Date October 6, 2008
    ---------------------

         Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, this report has been signed below by
the following persons on behalf of the registrant and in the capacities and
on the dates indicated.

By (Signature and Title)*    /s/ Donald H. Baxter
                         -----------------------------------------------------
                                 Donald H. Baxter, Chief Executive Officer
Date October 6, 2008
    ---------------------

By (Signature and Title)*    /s/ Ronald F. Rohe
                         -----------------------------------------------------
                                 Ronald F. Rohe, Chief Financial Officer

Date October 6, 2008
    ---------------------

* Print the name and title of each signing officer under his or her signature.