INDEPENDENT ACCOUNTANTS' REPORT
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 December 31, 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 December 31, 1999, and
with respect to agreement of security purchases and
sales, for the period from October 13, 1999 (the date of
our last examination), through December 31, 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 the 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 or maturities 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 December
31, 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
January 20, 2000
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 December 31, 1999 and
from October 13, 1999 (the date of
Deloitte & Touche LLP's last examination) through
December 31,1999.
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 December 31, 1999 and from October 13,
1999 (the date of Deloitte & Touche LLP's last
examination) through December 31, 1999, with respect
to securities reflected in the investment accounts of Fund
for Tax-Free Investors, Inc.
Daniel L. O'Connor
Chairman
Edward Karpowicz
Controller
