To the Board of Trustees of
Fund for Tax-Free Investors, Inc.:
We are the auditors of the Fund for Tax-Free Investors,
Inc. (the Fund) a series investment company comprised
of three portfolios, the Money Market, Virginia, and
Maryland portfolios (the Portfolios). Rushmore Trust
and Savings, FSB (Rushmore Trust), a related entity, is
custodian of all of the Fund's portfolios, and the Fund
is therefore subject to the provisions of Rule 17f-2
under the Investment Company Act of 1940. Accordingly,
we have accounted for the Fund's investment securities
held by Rushmore Trust as of the close of business on
December 31, 1998. It is understood that this report is
solely for the use of management and for the information
of the Securities and Exchange Commission and should not
be used for any other purpose.
Rushmore Trust, in addition to acting as custodian for the
Fund, is custodian for other customers. Agents of
Rushmore Trust hold, or account for by book entry,
securities that are the responsibility of Rushmore Trust
through custodial or trust agreements. Securities held by
agents of Rushmore Trust, while identified by such agents
as being deposited by Rushmore Trust, cannot be identified
by such agents as to the specific customers of Rushmore
Trust who have securities included in such deposits.
Rushmore Trust confirmed to us that the portfolio securities
owned by the Fund on December 31, 1998, were held for the
account of Rushmore Trust by Mellon Bank, N.A. (Mellon), as
agent for Rushmore Trust. We obtained confirmation from
Mellon of the securities held for the account of the Rushmore
Trust as of December 31, 1998. We reviewed Rushmore Trust's
reconciliation of Mellon's confirmation to Rushmore Trust's
internal records, identifying securities held by Mellon as a
part of Rushmore Trust's aggregate security position with
Mellon. We also reviewed Rushmore Trust's records that show
the owners of the securities held by Mellon for the account
of the Rushmore Trust at December 31, 1998. We determined
that these securities, identified by such records as the
property of the Fund's Portfolios, were in agreement with
the Fund's records of securities owned at December 31, 1998.
In addition, brokers confirmed to us the purchases and sales
outstanding at December 31, 1998, which were in agreement
with the Fund's records. We also agreed an analysis of
portfolio transactions recorded subsequent to June 29,
1998, the date of our most recent examination of the Fund's
securities required under Rule 17f-2, in the investment
accounts to supporting records and verified a sample of
portfolio security transactions to supporting records and
documentation.
Because the above procedures were not sufficient to
constitute an audit conducted in accordance with generally
accepted auditing standards, we do not express an opinion
on the investment accounts referred to above as of the dates
indicated. In connection with the procedures referred to
above, no matters came to our attention that caused us to
believe that the specified accounts should be adjusted.
Had we performed additional procedures or had we conducted
an audit of the financial statements of the Fund in
accordance with generally accepted auditing standards,
matters might have come to our attention that would have
been reported to you. This report relates only to the
investments specified above and does not extend to the
financial statements of the Fund taken as a whole for
any date or period.
Deloitte & Touche LLP
Princeton, New Jersey
January 27, 1999
