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<PAGE> PAGE 2
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SIGNATURE PAUL E. SPEARS
TITLE PRESIDENT
<PAGE>
Shepmyers Investment Company
For semi-annual period ended June 30, 1999
File Number: 811-2798
Form N-SAR Sub-Item 77K: Changes in Registrant's Certifying Accountants
On February 1, 1999, Ernst & Young LLP ("Ernst & Young") resigned as the
Company's independent accountants. During the Company's two most recent fiscal
years ended December 31, 1998 and 1997, Ernst & Young's reports on the Company's
financial statements contained no adverse opinion or disclaimer of opinion, nor
were they qualified or modified as to uncertainty, audit scope, or accounting
principles. During the Company's two most recent fiscal years ended December 31,
1998 and 1997 and the interim period commencing January 1, 1999 and ending
February 1, 1999, there were no disagreements with Ernst & Young on any matter
of accounting principles or practices, financial statement disclosure, or
auditing scope or procedure, which disagreements, if not resolved to the
satisfaction of Ernst & Young, would have caused it to make reference to the
subject matter of the disagreement in connection with its report on the
financial statements for such years. During the Company's two most recent fiscal
years and the subsequent interim period ended February 1, 1999, there were no
events of the kind described in Item 304(a)(1)(v) of Regulation S-K under the
Securities Exchange Act of 1934, as amended.
On February 18, 1999, the Company by action of its Board of Directors, including
a majority of the members of the Board of Directors who are not "interested
persons" of the Company (as defined in the 1940 Act), selected Beard & Company
Inc. ("Beard & Company") as the independent accountants to audit the Company's
financial statements for the fiscal year ending December 31, 1999. During the
Company's two most recent fiscal years ended December 31, 1998 and 1997 and the
subsequent interim period ended February 1, 1999, neither the Company nor anyone
on its behalf has consulted Beard & Company on items which (i) concerned the
application of accounting principles to a specified transaction, either
completed or proposed, or the type of audit opinion that might be rendered on
the Company's financial statements or (ii) concerned the subject of a
disagreement (as defined in paragraph (a)(1)(iv) of Item 304 of Regulation S-K)
or reportable events (as described in paragraph (a)(1)(v) of said Item 304).
<PAGE>
Shepmyers Investment Company
For period ended 6/30/99
File number 811-2798
SUB-ITEM 77Q2 Section 16(a) Beneficial Ownership Reporting Compliance
-------------------------------------------------------
Section 30(f) of the Investment Company Act of 1940 and Section 16(a) of
the Securities Exchange Act of 1934 require that the directors and officers of
Shepmyers Investment Company (the "Company"), certain affiliated persons of The
Rittenhouse Trust Company ("RTC"), and persons who own more than ten percent of
the Company's shares file with the Securities and Exchange Commission initial
reports of ownership and reports of changes in ownership of shares of the
Company. Specific due dates have been established and the Company is required to
disclose any failure to file by the specific due dates. To the Company's
knowledge, all of these filing requirements were satisfied during 1999, except
Lawrence DeVan, a director of the Company, did not file on a timely basis one
report relating to the acquisition of 1,824 shares. In making this disclosure,
the Company has relied on copies of reports that were furnished to it and
written representations of its directors, officers and RTC.
-37-
<PAGE>
Signature Page
This report is signed on behalf of registrant in the City of Hanover and
Commonwealth of Pennsylvania on the 25th day of August, 1999.
SHEPMYERS INVESTMENT COMPANY
Witness: By: /s/ W. Bruce McConnel, III /s/ Paul E. Spears
-------------------------- --------------
W. Bruce McConnel, III Paul E. Spears
Secretary President
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the
6/30/99 N-SAR and is qualified in its entirety by reference to such N-SAR.
</LEGEND>
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<CURRENCY> U.S. Dollars
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</TABLE>
