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 East Colorado Boulevard, Suite 720
                               PASADENA, CA 91101
            -------------------------------------------------------
               (Address of principal executive offices) (Zip code)


                               Donald F. Crumrine
                            Flaherty & Crumrine Inc.
                     301 East 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, 2004 - JUNE 30, 2005
                                     ------------------------------

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 there under (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, 2004 TO JUNE 30, 2005

 
                                  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 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, 2005

Date of reporting period:                                          Twelve Months ended June 30, 2005


ITEM 1. PROXY VOTING RECORD



-------------------------------------------------------------------------------------------------------------------------
NAME OF THE ISSUER                            EXCHANGE TICKER SYMBOL            CUSIP         SHAREHOLDER MEETING DATE
-------------------------------------------------------------------------------------------------------------------------
                                                                                       
Duke Energy                                             DUK                    264399106             12-May-05
-------------------------------------------------------------------------------------------------------------------------

                                                                         VOTE FOR OR AGAINST    VOTE FOR OR AGAINST
MATTER VOTED                                  PROPOSED BY    VOTE CAST        PROPOSAL               MANAGEMENT

Approve directors                                Issuer         Yes              For                    For

Amendments to eliminate board classification     Issuer         Yes              For                    For

Ratify auditors                                  Issuer         Yes              For                    For



-------------------------------------------------------------------------------------------------------------------------
NAME OF THE ISSUER                            EXCHANGE TICKER SYMBOL            CUSIP         SHAREHOLDER MEETING DATE
-------------------------------------------------------------------------------------------------------------------------
                                                                                       
FPL Group Inc                                           FPL                   302571104              20-May-05
-------------------------------------------------------------------------------------------------------------------------

                                                                         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



FRIDAY, JULY 29, 2005                                                PAGE 1 OF 5





-------------------------------------------------------------------------------------------------------------------------
NAME OF THE ISSUER                            EXCHANGE TICKER SYMBOL            CUSIP         SHAREHOLDER MEETING DATE
-------------------------------------------------------------------------------------------------------------------------
                                                                                       
New York Community Bancorp                              NYB                   649445103              01-Jun-05
-------------------------------------------------------------------------------------------------------------------------

                                                                         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



-------------------------------------------------------------------------------------------------------------------------
NAME OF THE ISSUER                            EXCHANGE TICKER SYMBOL            CUSIP         SHAREHOLDER MEETING DATE
-------------------------------------------------------------------------------------------------------------------------
                                                                                           
Southern Caifornia Edison                             SCEDM                   842400202              19-May-05
-------------------------------------------------------------------------------------------------------------------------

                                                                         VOTE FOR OR AGAINST    VOTE FOR OR AGAINST
MATTER VOTED                                  PROPOSED BY    VOTE CAST        PROPOSAL               MANAGEMENT

Approve directors                                   Issuer     No (1)            NA                      NA



-------------------------------------------------------------------------------------------------------------------------
NAME OF THE ISSUER                            EXCHANGE TICKER SYMBOL            CUSIP         SHAREHOLDER MEETING DATE
-------------------------------------------------------------------------------------------------------------------------
                                                                                           
Wachovia                                               WB                     92977V206                11-Nov-04
-------------------------------------------------------------------------------------------------------------------------

                                                                         VOTE FOR OR AGAINST    VOTE FOR OR AGAINST
MATTER VOTED                                  PROPOSED BY    VOTE CAST        PROPOSAL               MANAGEMENT

Approve directors                                   Issuer     No (1)            NA                      NA



FRIDAY, JULY 29, 2005                                                PAGE 2 OF 5





-------------------------------------------------------------------------------------------------------------------------
NAME OF THE ISSUER                            EXCHANGE TICKER SYMBOL            CUSIP         SHAREHOLDER MEETING DATE
-------------------------------------------------------------------------------------------------------------------------
                                                                                       
Wisconsin Power & Light                                WPL                    976826875              25-May-05
-------------------------------------------------------------------------------------------------------------------------

                                                                         VOTE FOR OR AGAINST    VOTE FOR OR AGAINST
MATTER VOTED                                  PROPOSED BY    VOTE CAST        PROPOSAL               MANAGEMENT

Approve directors                                Issuer         No (1)           NA                      NA




-------------------------------------------------------------------------------------------------------------------------
NAME OF THE ISSUER                            EXCHANGE TICKER SYMBOL            CUSIP         SHAREHOLDER MEETING DATE
-------------------------------------------------------------------------------------------------------------------------
                                                                                       
Wisconsin Power & Light                                 WPL                   976826305               25-May-05
-------------------------------------------------------------------------------------------------------------------------

                                                                         VOTE FOR OR AGAINST    VOTE FOR OR AGAINST
MATTER VOTED                                  PROPOSED BY    VOTE CAST        PROPOSAL               MANAGEMENT

Approve directors                                Issuer        No (1)            NA                      NA



-------------------------------------------------------------------------------------------------------------------------
NAME OF THE ISSUER                            EXCHANGE TICKER SYMBOL            CUSIP         SHAREHOLDER MEETING DATE
-------------------------------------------------------------------------------------------------------------------------
                                                                                       
Wisconsin Power & Light                                 WPL                   976826503               25-May-05
-------------------------------------------------------------------------------------------------------------------------

                                                                         VOTE FOR OR AGAINST    VOTE FOR OR AGAINST
MATTER VOTED                                  PROPOSED BY    VOTE CAST        PROPOSAL               MANAGEMENT

Approve directors                                Issuer        No (1)            NA                      NA



FRIDAY, JULY 29, 2005                                               PAGE 3 OF 5




-------------------------------------------------------------------------------------------------------------------------
NAME OF THE ISSUER                            EXCHANGE TICKER SYMBOL            CUSIP         SHAREHOLDER MEETING DATE
-------------------------------------------------------------------------------------------------------------------------
                                                                                       
Xcel Energy Inc.                                       XEL                    98389B704                25-May-05
-------------------------------------------------------------------------------------------------------------------------

                                                                         VOTE FOR OR AGAINST    VOTE FOR OR AGAINST
MATTER VOTED                                  PROPOSED BY    VOTE CAST        PROPOSAL               MANAGEMENT

Approve directors                                Issuer         Yes              For                     For

Omnibus incentive plan                           Issuer         Yes              For                     For

Executive annual incentive plan                  Issuer         Yes              For                     For

Ratify auditors                                  Issuer         Yes              For                     For



-------------------------------------------------------------------------------------------------------------------------
NAME OF THE ISSUER                            EXCHANGE TICKER SYMBOL            CUSIP         SHAREHOLDER MEETING DATE
-------------------------------------------------------------------------------------------------------------------------
                                                                                       
Xcel Energy Inc.                                       XEL                    98389B605                25-May-05
-------------------------------------------------------------------------------------------------------------------------

                                                                         VOTE FOR OR AGAINST    VOTE FOR OR AGAINST
MATTER VOTED                                  PROPOSED BY    VOTE CAST        PROPOSAL               MANAGEMENT

Approve directors                                Issuer         Yes              For                     For

Omnibus incentive plan                           Issuer         Yes              For                     For

Executive annual incentive plan                  Issuer         Yes              For                     For

Ratify auditors                                  Issuer         Yes              For                     For



-------------------------------------------------------------------------------------------------------------------------
NAME OF THE ISSUER                            EXCHANGE TICKER SYMBOL            CUSIP         SHAREHOLDER MEETING DATE
-------------------------------------------------------------------------------------------------------------------------
                                                                                       
Xcel Energy Inc.                                        XEL                   98389B407                25-May-05
-------------------------------------------------------------------------------------------------------------------------

                                                                         VOTE FOR OR AGAINST    VOTE FOR OR AGAINST
MATTER VOTED                                  PROPOSED BY    VOTE CAST        PROPOSAL               MANAGEMENT

Approve directors                                Issuer         Yes              For                     For

Omnibus incentive plan                           Issuer         Yes              For                     For

Executive annual incentive plan                  Issuer         Yes              For                     For

Ratify auditors                                  Issuer         Yes              For                     For


FRIDAY, JULY 29, 2005                                                PAGE 4 OF 5




-------------------------------------------------------------------------------------------------------------------------
NAME OF THE ISSUER                            EXCHANGE TICKER SYMBOL            CUSIP         SHAREHOLDER MEETING DATE
-------------------------------------------------------------------------------------------------------------------------
                                                                                       
Xcel Energy Inc.                                       XEL                    98389B308                25-May-05
-------------------------------------------------------------------------------------------------------------------------

                                                                         VOTE FOR OR AGAINST    VOTE FOR OR AGAINST
MATTER VOTED                                  PROPOSED BY    VOTE CAST        PROPOSAL               MANAGEMENT

Approve directors                                Issuer          Yes             For                     For

Omnibus incentive plan                           Issuer          Yes             For                     For

Executive annual incentive plan                  Issuer          Yes             For                     For

Ratify auditors                                  Issuer          Yes             For                     For



-------------------------------------------------------------------------------------------------------------------------
NAME OF THE ISSUER                            EXCHANGE TICKER SYMBOL            CUSIP         SHAREHOLDER MEETING DATE
-------------------------------------------------------------------------------------------------------------------------
                                                                                       
Xcel Energy Inc.                                       XEL                    98389B506                25-May-05
-------------------------------------------------------------------------------------------------------------------------

                                                                         VOTE FOR OR AGAINST    VOTE FOR OR AGAINST
MATTER VOTED                                  PROPOSED BY    VOTE CAST        PROPOSAL               MANAGEMENT

Approve directors                                 Issuer         Yes             For                     For

Omnibus incentive plan                            Issuer         Yes             For                     For

Executive annual incentive plan                   Issuer         Yes             For                     For

Ratify auditors                                   Issuer         Yes             For                     For


Notes: (1) Pursuant to its proxy voting policies, the registrant did not cast a
           vote since the securities in question were preferred or preference
           stocks of a company the common stock of which was controlled by the
           parent company and consequently, the election outcome was not in 
           doubt.


FRIDAY, JULY 29, 2005                                                PAGE 5 OF 5










                                   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 and
                         Chief Executive Officer
                         (Principal Executive Officer)
Date    7/22/05
    ----------------------------------------------------------------------------

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