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) compliance with the requirements of
subsections (b) and (c) of Rule 17f-2 under the
Investment Company Act of 1940 (the Act) as of
October 13, 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 October
13, 1999, and with respect to agreement of
security purchases and sales, for the period from
July 19, 1999, the date of our last examination,
through October 13, 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 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 October 13, 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., the Board of Directors 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
October 26, 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
October 13, 1999 and from July 19, 1999 (the
date of Deloitte & Touche LLP's last
examination) through October 13, 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 October
13, 1999 and from July 19, 1999 (the date of
Deloitte & Touche LLP's last examination)
through October 13, 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
