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<PAGE> PAGE 16
SIGNATURE RICHARD J. GARVEY
TITLE PRESIDENT
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<INVESTMENTS-AT-COST> 41,759,630
<INVESTMENTS-AT-VALUE> 44,709,691
<RECEIVABLES> 845,261
<ASSETS-OTHER> 448,633
<OTHER-ITEMS-ASSETS> 0
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<OTHER-ITEMS-LIABILITIES> 176,546
<TOTAL-LIABILITIES> 176,546
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 42,908,592
<SHARES-COMMON-STOCK> 4,079,234
<SHARES-COMMON-PRIOR> 4,085,544
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (31,614)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2,950,061
<NET-ASSETS> 45,827,039
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,542,993
<OTHER-INCOME> 0
<EXPENSES-NET> (427,618)
<NET-INVESTMENT-INCOME> 2,115,375
<REALIZED-GAINS-CURRENT> 98,804
<APPREC-INCREASE-CURRENT> 454,108
<NET-CHANGE-FROM-OPS> 2,668,287
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2,115,375)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 724,881
<NUMBER-OF-SHARES-REDEEMED> (890,970)
<SHARES-REINVESTED> 159,779
<NET-CHANGE-IN-ASSETS> 482,982
<ACCUMULATED-NII-PRIOR> 0
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<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 288,928
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 427,618
<AVERAGE-NET-ASSETS> 46,230,758
<PER-SHARE-NAV-BEGIN> 11.100
<PER-SHARE-NII> 0.510
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<PER-SHARE-DIVIDEND> (0.510)
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</TABLE>
To the Board of Trustees of
Fund for Tax-Free Investors, Inc.:
In planning and performing our audit of the financial statements of
Fund for Tax-Free Investors, Inc. ("the Fund") for the year ended
December 31, 1998 (on which we issued our report dated January 27,
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 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 internal control, error or fraud 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 misstatements
caused by error 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 internal control and its operation, including controls over
safeguarding securities, that we consider to be material weaknesses as
defined above as of December 31, 1998.
This report is intended solely for the information and use of
management, the Board of Trustees, and the Securities and Exchange
Commission.
Deloitte & Touche LLP
January 27, 1999
