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SIGNATURE WILLIAM A OATES JR
TITLE TRUSTEE
Report of Independent Accountants
To the Board of Trustees and Shareholders of Northeast Investors
Growth Fund:
In planning and performing our audit of the financial
statements of Northeast Investors Growth Fund (the "Fund") for
the year ended December 31, 1997, we considered the Fund's
internal control, including controls over 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, not to provide
assurance on internal control.
The Fund's management is responsible for establishing and
maintaining internal control. In fulfilling this responsibility,
estimates and judgements 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 Fund'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 internal control, errors or
irregularities may occur and may 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 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 any
specific internal control component does not reduce to a relatively low level
the risk that errors or irregularities 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 internal control,
including controls over safeguarding securities, that we consider to be material
weaknesses as defined above as of December 31, 1997.
This report is intended solely for the information and use of the Fund's
management and the Securities and Exchange Commission.
Coopers & Lybrand
Boston, Massachusetts
February 2, 1998
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