INDEPENDENT AUDITORS' REPORT
To the Board of Directors and Shareholders of
Federated American Leaders Fund, Inc.:
In planning and performing our audit of the financial statements of
Federated American Leaders Fund, Inc. (the "Fund") for the year ended
March 31, 2000 (on which we have issued our report dated May 19, 2000),
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 Fund's internal control.
The management of the Fund 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 the
internal control may become inadequate because of changes in conditions,
or that the degree of compliance with policies and procedures may
deteriorate.
Our consideration of the Fund'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
misstatements caused by 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 Fund's internal control and its operation,
including controls for safeguarding securities, that we consider to be
material weaknesses as defined above as of March 31, 2000.
This report is intended solely for the information and use of
management, the Directors and Shareholders of Federated American Leaders
Fund, Inc., and the Securities and Exchange Commission and is not
intended to be and should not be used by anyone other than these
specified parties.
May 19, 2000
