To the Audit Committee of the Board of Directors of
Fund for Tax-Free Investors, Inc.:
We have examined management's assertion about Fund for
Tax-Free Investors, Inc.'s (the Fund's) compliance with
the requirements of subsections (b) and (c) of Rule 17f-2
under the Investment Company Act of 1940 (the Act) as of
July 19, 1999, included in the accompanying Management
Statement Regarding Compliance with Certain Provisions
of the Investment Company Act of 1940. Management is
responsible for the Fund's compliance with those
requirements. Our responsibility is to express an
opinion on management's assertion about the Fund's
compliance based on our examination.
Our examination was made in accordance with standards
established by the American Institute of Certified Public
Accountants and, accordingly, included examining, on a
test basis, evidence about the Fund's compliance with
those requirements and performing such other procedures
as we considered necessary in the circumstances.
Included among our procedures were the following tests
performed as of July 19, 1999, and with respect to
agreement of security purchases and sales, for the
period from December 31, 1998, the date of our last
audit, through July 19, 1999:
* Confirmation of all securities held by Rushmore Trust
and Savings, FSB (Rushmore Trust) in book entry form
for the account of the Fund;
* Confirmation from Rushmore Trust that the securities
held for the account of the Fund were held for the
account of Rushmore Trust by Mellon Bank, N.A. (Mellon),
as agent for Rushmore Trust;
* Confirmation with Mellon of all securities held by
Mellon in book entry form for the account of Rushmore
Trust;
* Confirmation with brokers that all purchases and sales
outstanding were in agreement with the Fund's records;
* Reconciliation of all such securities to the books
and records of the Rushmore Trust and the Fund;
* Agreement of selected security purchases and security
sales since our last report from the books and records
of the Fund to broker confirmations.
We believe that our examination provides a reasonable
basis for our opinion. Our examination does not provide
a legal determination on the Fund's compliance with
specified requirements.
In our opinion, management's assertion that Fund for
Tax-Free Investors, Inc. was in compliance with the
requirements of subsections (b) and (c) of Rule 17f-2
of the Investment Company Act of 1940 as of July 19,
1999 with respect to securities reflected in the
investment account of the Fund is fairly stated, in
all material respects.
This report is intended solely for the information and
use of management of Fund for Tax-Free Investors, 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.
Deloitte & Touche LLP
Princeton, New Jersey
August 6, 1999
Management Statement Regarding Compliance with
Certain Provisions of the Investment Company Act of 1940
We, as members of management of Fund for Tax-Free
Investors, Inc. (the Fund), are responsible for
complying with the requirements of subsections (b) and
(c) of Rule 17f-2, "Custody of Investments by
Registered Management Investment Companies," of the
Investment Company Act of 1940. We are also
responsible for establishing and maintaining effective
internal controls over compliance with those
requirements. We have performed an evaluation of the
Fund's compliance with the requirements of subsections
(b) and (c) of Rule 17f-2 as of July 19, 1999 and from
December 31, 1998 (the date of Deloitte & Touche LLP's
last audit) through July 19, 1999.
Based on this evaluation, we assert that the Fund was
in compliance with the requirements of subsections (b)
and (c) of Rule 17f-2 of the Investment Company Act of
1940 as of July 19, 1999 and from December 31, 1998
(the date of Deloitte & Touche LLP's last audit)
through July 19, 1999, with respect to securities
reflected in the investment accounts of Fund for
Tax-Free Investors, Inc.
Daniel L. O'Connor
Chairman
Timothy N. Coakley
Vice President
