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SIGNATURE C. WILLIAM MAHER
TITLE ADMINISTRATOR
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
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<S> <C>
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<PERIOD-END> JUN-30-1999
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<INVESTMENTS-AT-VALUE> 1,512,619,841
<RECEIVABLES> 13,899,854
<ASSETS-OTHER> 67,152,650
<OTHER-ITEMS-ASSETS> 0
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<TOTAL-LIABILITIES> 583,262,994
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INDEPENDENT AUDITORS' REPORT
To the Trustees and Shareholders of the BLK Subsidiary, Inc.
In planning and performing our audit of the financial statements
of The BLK Subsidiary, Inc. (the "Trust") for the year ended
June 30, 1999 (on which we have issued our report dated August 6,
1999), we considered its internal control, including control
activities for safeguarding securities, in order to determine our
auditing procedures for the purpose of expressing our opinion on
the financial statements and to comply with the requirements of
Form N-SAR, and not to provide assurance on the Trust's internal
control.
The management of the Trust is responsible for establishing and
maintaining internal control. In fulfilling this responsibility,
estimates and judgments by management are required to assess the
expected benefits and related costs of controls. Generally,
controls that are relevant to an audit pertain to the entity's
objective of preparing financial statements for external purposes
that are fairly presented in conformity with generally accepted
accounting principles. Those controls include the safeguarding
of assets against unauthorized acquisition, use or disposition.
Because of inherent limitations in any internal control, errors
or fraud may occur and not be detected. Also, projection of
any evaluation of internal control to future periods is subject
to the risk that it may become inadequate because of changes
in conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of the Trust's internal control would not
necessarily disclose all matters in internal control that might
be material weaknesses under standards established by the
American Institute of Certified Public Accountants. A material
weakness is a condition in which the design or operation of
one or more of the internal control components does not reduce
to a relatively low level the risk that errors or fraud in
amounts that would be material in relation to the financial
statements being audited may occur and not be detected within
a timely period by employees in the normal course of performing
their assigned functions. However, we noted no matters
involving the Trust's internal control and its operation,
including controls for safeguarding securities, that we consider
to be material weaknesses as defined above as of June 30, 1999.
This report is intended solely for the information and use of
management, the Trustees of The BLK Subsidiary, Inc., and the
Securities and Exchange Commission.
August 25, 1999
