SCUDDER STATE TAX FREE TRUST, N-30D, 1995-06-01

SCUDDER STATE TAX FREE TRUST
N-30D, 1995-06-01

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Shares of Scudder New York Tax Free Money Fund are not insured or guaranteed by
the U.S. government. Scudder New York Tax Free Money Fund seeks to maintain a
constant net asset value of $1.00 per share, but there can be no assurance that
the stable net asset value will be maintained.

This information must be preceded or accompanied by a current prospectus.

Portfolio changes should not be considered recommendations for action by
individual investors.

Scudder New York
Tax Free Money Fund

- -------------------------------------

Scudder New York
Tax Free Fund

Annual Report
March 31, 1995

* For investors seeking triple tax-free income exempt from New York City,
state, and regular federal income taxes.

* Pure no-load(TM) funds with no commissions to buy, sell, or exchange shares.

<PAGE>
SCUDDER NEW YORK TAX FREE FUND
SCUDDER NEW YORK TAX FREE MONEY FUND

- --------------------------------------------------------------------------------
CONTENTS
- --------------------------------------------------------------------------------
2 Highlights

3 Letter from the Funds' President

4 Scudder New York Tax Free Fund Performance Update

5 Scudder New York Tax Free Fund Portfolio Summary

6 Scudder New York Tax Free Money Fund
Portfolio Management Discussion

7 Scudder New York Tax Free Fund Portfolio Management Discussion

10 Scudder New York Tax Free Money Fund Investment Portfolio

13 Scudder New York Tax Free Money Fund
Financial Statements

16 Scudder New York Tax Free Money Fund
Financial Highlights

17 Scudder New York Tax Free Fund Investment Portfolio

22 Scudder New York Tax Free Fund Financial Statements

25 Scudder New York Tax Free Fund Financial Highlights

26 Notes to Financial Statements

31 Report of Independent Accountants

32 Tax Information

33 Officers and Trustees

34 Investment Products and Services

35 How to Contact Scudder

- --------------------------------------------------------------------------------
HIGHLIGHTS
- --------------------------------------------------------------------------------
Scudder New York Tax Free Money Fund

* Scudder New York Tax Free Money Fund offered a 7-day effective yield of
3.41% on March 31, 1995, equivalent to a 6.44% taxable yield for investors
in the top federal, state and local income tax brackets.

(bar chart title)
7-Day Effective Yields on March 31, 1995

(bar chart data)
Scudder New York Tax Free Money Fund Taxable Equivalent Yield
------------------------------------ ------------------------
3.41% 6.44%

Scudder New York Tax Free Fund

* Scudder New York Tax Free Fund provided a 4.96% 30-day net annualized SEC
yield on March 31, 1995.

* For shareholders subject to the 47.05% maximum combined federal, state and
local income tax rate, the Fund's yield was equal to a 9.37% taxable yield.

(bar chart title)
30-Day Yield on March 31, 1995

(bar chart data)
Scudder New York Tax Free Fund Taxable Equivalent Yield
------------------------------ ------------------------
4.96% 9.37%

2
<PAGE>
LETTER FROM THE FUNDS' PRESIDENT
- --------------------------------------------------------------------------------

Dear Shareholders,

Investors' concerns about inflationary economic growth have abated in
recent months, after creating much turmoil for the world's investment markets in
1994. Indications of continued low inflation and weakness in certain segments of
the economy, combined with the Federal Reserve's most recent interest-rate
increases in November and February, have reassured many investors. Yields have
declined from their November highs, and municipal bond prices have made a
substantial recovery. Year-to-date through March 31, long-term municipal bonds,
as measured by the unmanaged Lehman Brothers Municipal Bond Index, returned
7.07% on average, more than making up for the -5.17% return reported for all of
1994.

Given the swings in interest rates over the past year and a half, the
question for municipal bond investors is, can the recent positive shift in
interest rates be sustained? We believe rates will remain relatively stable if
economic growth continues to slacken in the United States. Nevertheless,
additional interest-rate increases are not out of the question given some
lingering inflationary concerns: Commodity prices continue to rise, factory
production is pushing the limits of capacity, and the dollar has fallen to
record lows against the Japanese yen and German mark.

Your portfolio managers will continue to concentrate their efforts on
fundamental investment research and security selection as a means to generate
high current tax-free income and attractive total returns for the New York bond
portfolio. For the money market portfolio, your Fund managers will continue to
focus on a combination of competitive yields and price stability. As always,
please call a Scudder Investor Relations representative at 1-800-225-2470 if you
have questions about your Fund. Page 35 provides more information on how to
contact Scudder. Thank you for choosing Scudder New York Tax Free Funds to help
meet your investment needs.

Sincerely,

/s/ David S. Lee
David S. Lee
President,
Scudder New York Tax Free Fund
Scudder New York Tax Free Money Fund

3
<PAGE>
Scudder New York Tax Free Fund
Performance Update as of March 31, 1995
- -----------------------------------------------------------------
Growth of a $10,000 Investment
- -----------------------------------------------------------------
Scudder New York Tax Free Fund
- ----------------------------------------
Total Return
Period Growth -------------
Ended of Average
3/31/95 $10,000 Cumulative Annual
- --------- ------- ---------- -------
1 Year $10,639 6.39% 6.39%
5 Year $14,924 49.24% 8.34%
10 Year $22,893 128.93% 8.64%

Lehman Brothers Municipal Bond Index
- --------------------------------------
Total Return
Period Growth -------------
Ended of Average
3/31/95 $10,000 Cumulative Annual
- --------- ------- ---------- -------
1 Year $10,743 7.43% 7.43%
5 Year $14,859 48.59% 8.24%
10 Year $25,456 154.56% 9.79%

A chart in the form of a line graph appears here,
illustrating the Growth of a $10,000 Investment.
The data points from the graph are as follows:

Yearly periods ended March 31

Scudder New York Tax Free Fund
Year Amount
- ----------------------
85 10000
86 11871
87 13143
88 13063
89 14180
90 15340
91 16536
92 18374
93 21240
94 21518
95 22893

Lehman Brothers Municipal Bond Index
Year Amount
- ----------------------
85 10000
86 12707
87 14100
88 14455
89 15496
90 17131
91 18712
92 20581
93 23158
94 23695
95 25456

The unmanaged Lehman Brothers Municipal Bond Index is a market
value-weighted measure of municipal bonds issued across the United
States. Index issues have a credit rating of at least Baa and a
maturity of at least two years. Index returns assume reinvestment
of dividends and, unlike Fund returns, do not reflect any fees or
expenses.

- -----------------------------------------------------------------
Returns and Per Share Information
- -----------------------------------------------------------------

A chart in the form of a bar graph appears here,
illustrating the Fund Total Return (%) and Index Total
Return (%) with the exact data points listed in the table
below.

Yearly periods ended March 31
- -----------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
------------------------------------------------------------------------------
Net Asset Value... $11.19 $11.43 $10.39 $10.53 $10.60 $10.73 $10.98 $11.40 $10.32 $10.38
Income Dividends.. $ .75 $ .75 $ .73 $ .72 $ .69 $ .67 $ .65 $ .61 $ .54 $ .52
Capital Gains
Distributions..... $ -- $ .15 $ .20 $ -- $ .09 $ -- $ .25 $ .61 $ .73 $ .05
Fund Total
Return (%)........ 18.71 10.71 -.61 8.55 8.18 7.79 11.11 15.60 1.31 6.39
Index Total
Return (%)........ 27.07 10.97 2.52 7.21 10.56 9.22 10.02 12.52 2.32 7.43
</TABLE>

Performance is historical and assumes reinvestment of all dividends and
capital gains and is not indicative of future results.
Investment return and principal value will fluctuate, so an investor's
shares, when redeemed, may be worth more or less than when purchased.

4
<PAGE>

Portfolio Summary as of March 31, 1995
- ---------------------------------------------------------------------------
Diversification
- ---------------------------------------------------------------------------

Lease Rentals 34%
General Obligation 10%
Housing Finance Authority 10% We continue to emphasize broad
Electric Utility Revenue 5% portfolio diversification, although
Higher Education 5% we have reduced our exposure to New
Water/Sewer Revenue 5% York City bonds.
Hospital/Health 3%
Port/Airport Revenue 2%
Pollution Control Revenue 1%
Miscellaneous Municipal 25%
----
100%
====

A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.

- --------------------------------------------------------------------------
Quality
- --------------------------------------------------------------------------

AAA 37%
AA 20% Portfolio quality remains high,
A 19% with over 75% of the Fund's
BBB 20% portfolio rated A or better.
Not Rated 4%
----
100%
====

Weighted average quality: AA

A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.

- --------------------------------------------------------------------------
Effective Maturity
- --------------------------------------------------------------------------

Less than 1 year 9%
1 < 5 years 12% Bonds with effective maturities
5 < 10 years 15% of five to less than 20 years --
10 < 20 years 34% 49% of the portfolio -- currently
Greater than 20 years 30% offer good value and attractive
---- yields.
100%
====

Weighted average effective maturity: 14 years

A graph in the form of a pie chart appears here,
illustrating the exact data points in the above table.

For more complete details about the Fund's Investment Portfolio,
see page 17.

5
<PAGE>

SCUDDER NEW YORK TAX FREE MONEY FUND
PORTFOLIO MANAGEMENT DISCUSSION
- --------------------------------------------------------------------------------

Dear Shareholders,

The effects of the Federal Reserve's 1994-95 monetary policy have been felt
everywhere, including the tax-exempt money markets. Interest rates of tax-exempt
money market instruments have risen substantially over the past 12 months.
Scudder New York Tax Free Money Fund's 7-day effective yield rose to 3.41% on
March 31, 1995, from 1.65% a year earlier. For investors in the highest combined
federal, state and local income tax bracket, this yield equaled a 6.44%
compounded taxable yield, well above the 5.53% average for taxable money funds,
according to IBC/Donoghue, Inc., an independent firm that tracks money fund
performance.

Our strategy is to seek to maximize Scudder New York Tax Free Money Fund's
yield while preserving high portfolio quality and a stable $1.00 share price.
With this in mind, and in an environment of uncertainty about future Federal
Reserve actions, we have spread out maturities in the portfolio to reduce risk
and maintain a competitive return. This strategy allows the Fund to remain
flexible by providing regular opportunities to extend the average maturity. As
of March 31, 1995, the Fund's average maturity was 47 days, compared with 57
days 12 months earlier. For its fiscal year ended March 31, 1995, the Fund
provided a total return of 2.57%, assuming reinvestment of all income
distributions, which totaled $0.025 during the period.

As always, we will continue to search for high-quality, short-term
municipal money-market securities for Scudder New York Tax Free Money Fund while
actively managing the Fund's average maturity to provide an attractive tax-free
yield.

Sincerely,

Your Portfolio Management Team

/s/Rebecca Wilson /s/K. Sue Cote
Rebecca Wilson K. Sue Cote

Scudder New York Tax Free Money Fund:
A Team Approach to Investing

Rebecca Wilson is Lead Portfolio Manager for New York Tax Free Money Fund
and contributes nine years of experience in municipal investing and research.
Rebecca assumed responsibility for the Fund in 1987 after joining Scudder in
1986. K. Sue Cote, Portfolio Manager, joined the Fund's team in 1987 and has
spent 11 years working with short-term fixed-income investments.

6
<PAGE>
SCUDDER NEW YORK TAX FREE FUND
PORTFOLIO MANAGEMENT DISCUSSION
- --------------------------------------------------------------------------------

Dear Shareholders,

On March 31, 1995, Scudder New York Tax Free Fund provided a 30-day net
annualized SEC yield of 4.96%. For shareholders subject to the 39.6% maximum
federal income tax rate and the 12.34% maximum New York state and local income
tax rate, the Fund's yield is equivalent to a 9.37% taxable yield, higher than
yields provided by taxable investments of comparable credit quality. During the
12-month period ended March 31, 1995, shareholders received $0.52 per share of
income exempt from federal, state, and New York City income taxes, and capital
gains of $0.05 per share.

Despite wide fluctuations in New York municipal bond prices, the Fund's
share price increased $0.06 to $10.38 per share over the 12-month period. The
Fund posted a positive total return of 6.39% for the year through a combination
of interest income, capital gain distributions, and share price appreciation.
This return compares favorably with the 5.20% average total return of the 70 New
York municipal bond funds tracked by Lipper Analytical Services for the same
period.

New York State Upbeat For Now

For the time being, New York State's economy remains on solid financial
ground. The state ended fiscal year 1994 with a $1 billion surplus in its
general fund, which was appropriated into the fiscal year 1995 budget. Fiscal
year 1995 revenue estimates were reduced by approximately $1 billion, but
expenditures were also lower than projected. The resulting budget gap of $259
million was quickly eliminated with expenditure cuts. In fact, the state expects
fiscal year 1995 to end with a general fund surplus of $157 million.

New York State's economy began to slow in July 1994. Both its job growth
and personal income growth continue to lag the nation's and are projected to do
so throughout 1995. The state is at an economic and political crossroads. While
it is one of the wealthiest states in the country, New York is no longer able to
sustain its large public sector--state taxes are already among the highest in
the nation and its mature economy is unlikely to boom anytime soon. Key sectors
of the state's economy such as defense, manufacturing, and financial services
have already experienced downsizing and restructuring. New York's budget must
adapt to current conditions: If Governor Pataki can cut taxes and expenditures,
both the state's economy and finances will benefit. In order to avoid financial
shortfalls in the future, New York needs to deal with both sides of the
financial equation.

7
<PAGE>

Municipal Bonds Rally

Most of 1994 stood in marked contrast to performance in the last five
months of the Fund's fiscal year. The Federal Reserve repeatedly raised
short-term interest rates to try to slow the pace of economic growth, which led
to falling bond prices and rising yields across the maturity spectrum. All told,
yields of Treasury bonds rose almost 2 1/2 percentage points during the 12
months ended November 1994. Bond prices dropped 20% during the same time period,
amounting to their worst 12-month total return in history. Yields on long-term
municipal bonds rose almost as much as Treasury yields during the period. As the
environment for bond investments grew more challenging, we took a defensive
stance to help reduce price erosion, maintaining a shorter average effective
maturity and higher cash position than we had during the preceding three years.

In recent months, the municipal bond market has enjoyed a significant
rally. Concerns over the possible overheating of the U.S. economy eased
considerably in late 1994 as economic statistics pointed to weakness in several
sectors. Retail sales and job growth plateaued, while demand for housing and new
cars slackened. The steady decline in the supply of tax-free bonds also helped
municipal bond prices. During this period, we increased the Fund's average
effective maturity and reduced our cash position to help the Fund regain ground
lost during 1994.

The Fund's Four-Point Strategy

Currently, the Fund's investment strategy continues to focus on four basic
elements: (1) purchasing bonds with effective maturities of less than 20 years;
(2) purchasing noncallable bonds at yields close to those of callable bonds with
comparable maturities; (3) purchasing high-yielding callable bonds; and (4)
diversifying investments based on careful credit selection.

Bonds with effective maturities of at least five but less than 20 years
represented 49% of the portfolio on March 31, 1995, compared with approximately
47% on March 31, 1994. Bonds in this maturity range generally offer good value
and provide attractive yields with less price volatility than longer-term bonds.

8
<PAGE>

While shorter-maturity bonds and noncallable bonds offer a relative degree
of price stability, they also typically yield less than longer-maturity,
callable debt instruments. In order to enhance the portfolio's overall yield, we
selectively purchased higher-coupon bonds that can be called by their issuer in
a relatively short time. Typically, these bonds provide yields three quarters to
one percentage point higher than bonds maturing on similar call dates.

Scudder New York Tax Free Fund continues to emphasize careful credit
selection and portfolio diversification, investing in a variety of issues,
including general obligation, revenue, water district, hospital, single family
housing, multi-family housing, school district, lease, and tax allocation bonds
as of March 31, 1995. However, we have reduced our exposure to New York City
general obligation bonds to 1.7% of the portfolio (considerably lower than in
the past) because of concerns over the city's $2.7 billion projected budget
deficit for its upcoming fiscal year. The average weighted credit quality of the
Fund's portfolio at the end of March was AA.

Our Near-Term Outlook

Recent signs point to a slowing growth rate for the U.S. economy. Even
export sales are moderating, partly due to the economic problems in Mexico, our
largest trading partner. Still, we cannot rule out additional rate hikes. It is
unclear, for example, whether consumer spending will remain restrained or
increase and add to inflationary pressures. Despite economic uncertainties, we
expect a calmer municipal marketplace for the near term relative to last year,
with firm prices due to the limited supply of tax-free bonds. Another potential
concern is recent congressional discussions regarding possible alterations of
U.S. tax law. We believe that when all is said and done, municipal bonds will
remain attractive investments for investors who need tax-free income.

As we pursue Scudder New York Tax Free Fund's objectives, we intend to
continue to emphasize noncallable bonds with effective maturities between five
and 20 years. As always, we will pay close attention to credit quality as we
position the Fund to seek high tax-free income and a competitive total return.

Sincerely,

Your Portfolio Management Team

/s/Jeremy L. Ragus /s/Donald C. Carleton
Jeremy L. Ragus Donald C. Carleton

Scudder New York
Tax Free Fund:
A Team Approach to Investing

Scudder New York Tax Free Fund is managed by a team of Scudder investment
professionals who each play an important role in the Fund's management process.
Team members work together to develop investment strategies and select
securities for the Fund's portfolio. They are supported by Scudder's large staff
of economists, research analysts, traders, and other investment specialists who
work in our offices across the United States and abroad. We believe our team
approach benefits Fund investors by bringing together many disciplines and
leveraging Scudder's extensive resources.

Scudder New York Tax Free Fund's Lead Portfolio Manager Jeremy L. Ragus has
had responsibility for the Fund's day-to-day operations since he joined Scudder
in 1990. Jeremy has 14 years of experience in municipal investing. Donald C.
Carleton, Portfolio Manager, has over 25 years of investment management
experience and has worked on the Fund since he arrived at Scudder in 1983.

9
<PAGE>
<TABLE>
SCUDDER NEW YORK TAX FREE MONEY FUND
INVESTMENT PORTFOLIO as of March 31, 1995
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
Unaudited
-------------
Principal Credit Value ($)
Amount ($) Rating (b) (Note A)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
100.0% MUNICIPAL INVESTMENTS
--------------------------------------------------------------------------------------------------
NEW YORK Cold Spring Harbor, NY, Central School District,
Tax and Revenue Anticipation Notes,
4.25%, 6/29/95....................................... 1,190,000 SS&C 1,190,558
Dormitory Authority of the State of New York,
Memorial Sloan-Kettering Cancer Center, Tax
Exempt Commercial Paper, Series C,
4.05%, 4/11/95....................................... 750,000 A1 750,000
Erie County, NY, Revenue Anticipation Notes,
4.75%, 8/15/95....................................... 1,000,000 MIG1 1,002,686
Erie County, NY, Water Authority, Waterworks
Revenue, Weekly Demand Bonds, 3.95%, 12/1/16*........ 2,000,000 A1+ 2,000,000
Freeport Union Free School District, NY,
Tax Anticipation Notes, 4.5%, 6/29/95................ 2,000,000 SS&C 2,001,896
Monroe County, NY, Industrial Development Agency,
Office Building Associates, Series 1992, Weekly
Demand Note, 3.85%, 10/1/00*......................... 1,624,000 P1 1,624,000
Municipal Assistance Corporation of New York City,
Prerefunded, 9.875%, 7/1/95**........................ 1,565,000 AAA 1,616,775
Nassau County, NY, Bond Anticipation Notes:
4.75%, 8/15/95....................................... 1,000,000 MIG1 1,002,227
5%, 8/15/95.......................................... 500,000 MIG1 501,617
New York City, Tax Exempt Commercial Paper,
4.05%, 5/19/95....................................... 1,100,000 MIG1 1,100,000
New York City, Weekly Demand Bonds,
4.05%, 8/15/24*...................................... 1,000,000 MIG1 1,000,000
New York City, Revenue Anticipation Notes,
4.5%, 4/12/95 ....................................... 2,000,000 MIG1 2,000,366
New York State Energy Research and
Development Authority, New York State Electric and
Gas, Tax Exempt Commercial Paper, 4%, 4/10/95........ 1,000,000 A1+ 1,000,000
New York State Energy Research and
Development Authority, Pollution Control Revenue,
Niagara Mohawk Company, Daily Demand Note,
4.3%, 7/1/15* ....................................... 1,100,000 A1+ 1,100,000
New York State Energy Research and
Development Authority, Rochester Gas and Electric
Company, Monthly Reset Bonds, 3.75%, 10/1/14*........ 1,000,000 P1 1,000,000
New York State Environmental Facilities Corp.,
Solid Waste Revenue, General Electric Corp.,
Commercial Paper:
3.8%, 6/13/95 ..................................... 1,000,000 A1+ 1,000,000
4%, 4/12/95 ....................................... 1,000,000 A1+ 1,000,000

</TABLE>
The accompanying notes are an integral part of the financial statements.

10
<PAGE>

<TABLE>
INVESTMENT PORTFOLIO
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
Unaudited
-------------
Principal Credit Value ($)
Amount ($) Rating (b) (Note A)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
New York State Housing Finance Agency,
Memorial Sloan-Kettering Cancer Center,
Housing Revenue Bonds, Variable Rate
Demand Bonds, Series 1985 A, 3.85%, 11/1/15*......... 2,800,000 A1+ 2,800,000
New York State Housing Finance Agency, Normandie
Court 1 Housing Revenue, Variable Rate Demand
Bonds, 4.05%, 5/15/15*............................... 1,900,000 MIG1 1,900,000
New York State Housing Finance Agency, Hospital
for Special Surgery, Variable Rate Demand Bonds,
3.8%, 11/1/10*....................................... 2,400,000 MIG1 2,400,000
New York State Housing Finance Agency, Housing
Revenue Bonds, Liberty View Apartments Project,
Weekly Demand Bonds, 3.8%, 11/1/05*.................. 1,200,000 MIG1 1,200,000
New York State Job Development Authority:
Monthly Reset Bonds, Series 1985 C,
3.80%, 3/1/00*..................................... 1,100,000 A1+ 1,100,000
Monthly Reset Bonds, Series F, 3.85%, 3/1/99*........ 800,000 A1+ 800,000
New York State Local Government Assistance
Corporation:
Series 1993 A, Weekly Demand Note,
3.85%, 4/1/22*................................... 1,000,000 MIG1 1,000,000
Series 1994 B, Variable Interest Rate Bonds,
3.85%, 4/1/23*................................... 500,000 MIG1 500,000
New York State Medical Care Facilities Financing
Agency, Mount Sinai Hospital, prerefunded,
8.875%, 1/15/96** ................................... 1,000,000 AAA 1,053,529
New York State Medical Care Facilities Financing
Agency, Children's Hospital of Buffalo,
Weekly Demand Bonds, 3.95%, 11/1/05*................. 1,900,000 MIG1 1,900,000
New York State Pollution Control Revenue,
Orange and Rockland Energy Research and
Development Project, Weekly Demand Notes,
3.9%, 10/1/14*....................................... 1,000,000 MIG1 1,000,000
New York State Power Authority, Optional Tender
Bonds, 4.4%, 3/1/16.................................. 1,000,000 MIG1 1,000,000
North Hempstead, NY, Solid Waste
Management Revenue Refunding, Series 1993 A,
Weekly Demand Note, 3.8%, 2/1/12*.................... 700,000 MIG1 700,000
Patchogue-Medford Union Free School
District, NY, Tax Anticipation Notes, 4.75%, 6/30/95. 1,000,000 SS&C 1,001,381
Port Authority of New York and New Jersey,
Tax Exempt Commercial Paper:
3.8%, 4/10/95...................................... 1,000,000 A1+ 1,000,000
3.9%, 4/10/95...................................... 1,960,000 A1+ 1,960,000

</TABLE>

The accompanying notes are an integral part of the financial statements.

11
<PAGE>

<TABLE>
SCUDDER NEW YORK TAX FREE MONEY FUND
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
Unaudited
-------------
Principal Credit Market
Amount ($) Rating (b) Value ($)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>

Rockland County, NY, Bond Anticipation Notes,
5.5%, 3/8/96......................................... 1,500,000 SS&C 1,512,639
Seneca County, NY, Industrial Development Agency,
1991 Civic Facility, New York Chiropractic College,
Weekly Demand Bond, 3.95%, 10/1/21* ................. 500,000 A1+ 500,000
South County Central School District, NY,
Tax Anticipation Notes, 4.5%, 6/29/95................ 1,000,000 MIG1 1,000,819
State of New York, Tax Exempt Commercial Paper:
Series P, 3.95%, 4/25/95............................. 500,000 P1 500,000
Series P, 3.7%, 5/25/95.............................. 800,000 P1 800,000
Series Q, 3.85%, 4/11/95............................. 1,000,000 P1 1,000,000
Suffolk County, NY, Tax Anticipation Notes,
5.25%, 8/15/95....................................... 1,000,000 MIG1 1,002,124
Triborough Bridge and Tunnel Authority, NY,
Special Obligation, Variable Rate Demand Bonds,
3.8%, 1/1/24 (c)* ................................... 2,800,000 MIG1 2,800,000
Trust for the Cultural Resources of the
City of New York, Museum of Natural History:
Weekly Demand Note, Series 1993 A,
3.9%, 4/1/21* ................................... 500,000 MIG1 500,000
Weekly Demand Note, 3.9%, 4/1/21 (c)*.............. 1,600,000 MIG1 1,600,000
PUERTO RICO Puerto Rico Maritime Shipping Authority,
Tax Exempt Commercial Paper, 3.9%, 4/21/95........... 1,000,000 A1+ 1,000,000
----------
TOTAL INVESTMENT PORTFOLIO - 100.0%
(Cost $54,420,617) (a)............................... 54,420,617
==========
- -------------------------------------------------------------------------------------------------------------------
<FN>
(a) The cost for federal income tax purposes was $54,420,617.

(b) All of the securities held have been determined to be of appropriate credit
quality as required by the Fund's investment objectives. Credit ratings shown
are assigned by either Standard & Poor's Ratings Group, Moody's Investors Service,
Inc. or Fitch Investors Service, Inc. Securities rated by Scudder (SS&C) have
been determined to be of comparable quality to rated eligible securities.

* Floating rate and monthly, weekly, or daily demand notes are securities whose
yields vary with a designated market index or market rate, such as the coupon-equivalent
of the Treasury bill rate. Variable rate demand notes are securities whose
yields are periodically reset at levels that are generally comparable to tax-exempt
commercial paper. These securities are payable on demand within seven calendar
days and normally incorporate an irrevocable letter of credit from a major
bank. These notes are carried, for purposes of calculating average weighted
maturity, at the longer of the period remaining until the next rate change
or to the extent of the demand period.

** Prerefunded: Bonds which are prerefunded are collateralized by U.S. Treasury
securities which are held in escrow and are used to pay principal and interest
on the tax-exempt issue and to retire the bonds in full at the earliest refunding
date.
</FN>
</TABLE>

The accompanying notes are an integral part of the financial statements.

12
<PAGE>

<TABLE>
FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------------------

STATEMENT OF ASSETS AND LIABILITIES
- -------------------------------------------------------------------------------------------

MARCH 31, 1995
- -------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments, at value (identified cost $54,420,617)
(Note A)................................................. $54,420,617
Receivables:
Interest................................................. 510,398
Fund shares sold......................................... 327,654
-----------
Total assets.......................................... 55,258,669
LIABILITIES
Payables:
Due to custodian bank.................................... $ 15,657
Fund shares redeemed..................................... 226,709
Dividends................................................ 20,660
Accrued management fee (Note C).......................... 15,531
Other accrued expenses (Note C).......................... 30,416
--------
Total liabilities..................................... 308,973
-----------
Net assets, at value ....................................... $54,949,696
===========
NET ASSETS
Net assets consist of:
Accumulated net realized loss............................ $ (12,653)
Shares of beneficial interest............................ 549,501
Additional paid-in capital .............................. 54,412,848
-----------
Net assets, at value........................................ $54,949,696
===========
NET ASSET VALUE, offering and redemption price per share
($54,949,696 / 54,950,056 outstanding shares of
beneficial interest, $.01 par value, unlimited number
of shares authorized).................................... $1.00
=====

</TABLE>
The accompanying notes are an integral part of the financial statements.

13
<PAGE>

<TABLE>
SCUDDER NEW YORK TAX FREE MONEY FUND
- ---------------------------------------------------------------------------------

STATEMENT OF OPERATIONS
- ---------------------------------------------------------------------------------

YEAR ENDED MARCH 31, 1995
- ---------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest.............................................. $1,638,734

Expenses:
Management fee (Note C) .............................. $107,615
Services to shareholders (Note C)..................... 81,993
Custodian and accounting fees (Note C)................ 50,011
Trustees' fees (Note C) .............................. 15,138
Auditing.............................................. 23,850
State registration.................................... 8,377
Reports to shareholders............................... 9,804
Legal................................................. 4,015
Other................................................. 10,192 310,995
-------------------------
Net investment income................................. 1,327,739
NET REALIZED LOSS ON INVESTMENTS
Net realized loss from investment transactions........ (6,662)
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.. $1,321,077
==========
</TABLE>

The accompanying notes are an integral part of the financial statements.

14
<PAGE>

<TABLE>
FINANCIAL STATEMENTS
- ------------------------------------------------------------------------------------

</TABLE>

The accompanying notes are an integral part of the financial statements.

15
<PAGE>

<TABLE>
SCUDDER NEW YORK TAX FREE MONEY FUND
FINANCIAL HIGHLIGHTS
- ----------------------------------------------------------------------------------------------------------------

THE FOLLOWING TABLE INCLUDES SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT
EACH PERIOD AND OTHER PERFORMANCE INFORMATION DERIVED FROM THE FINANCIAL STATEMENTS.

<CAPTION>
FOR THE PERIOD
MAY 28, 1987
(COMMENCEMENT
YEARS ENDED MARCH 31, OF OPERATIONS)
------------------------------------------------------- TO MARCH 31,
1995 1994 1993 1992 1991 1990 1989 1988
------------------------------------------------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period............ $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
------ ------ ------ ------ ------ ------ ------ ------
Net investment income (a)......... .025 .017 .022 .035 .046 .052 .047 .033
Distributions from net
investment income.............. (.025) (.017) (.022) (.035) (.046) (.052) (.047) (.033)
------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of period.... $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ====== ====== ====== ======
TOTAL RETURN (%) (b).............. 2.57 1.75 2.22 3.55 4.69 5.33 4.78 3.33**
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period
($ millions)................... 55 47 40 36 40 36 41 30
Ratio of operating expenses, net
to average daily net
assets (%) (a)................. .60 .60 .60 .60 .60 .60 .53 .50*
Ratio of net investment income to
average daily net assets (%)... 2.56 1.73 2.19 3.46 4.57 5.21 4.76 4.08*
<FN>
(a) Reflects a per share amount
of expenses, exclusive of
management fees,
reimbursed by the
Adviser of................. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ .002

Reflects a per share amount
of management fee not
imposed by the Adviser of.. $ .003 $ .004 $ .004 $ .004 $ .004 $ .004 $ .004 $ .004

Operating expense ratio
including expenses
reimbursed, management
fee and other expenses
not imposed (%)............ .89 .97 .97 1.01 1.08 1.08 .98 1.19*

(b) Total returns are higher due to maintenance of the Fund's expenses.
* Annualized
** Not annualized
</FN>
</TABLE>

16
<PAGE>

<TABLE>
SCUDDER NEW YORK TAX FREE FUND
INVESTMENT PORTFOLIO as of March 31, 1995
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
Unaudited
-------------
Principal Credit Market
Amount ($) Rating (b) Value ($)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
7.0% SHORT-TERM MUNICIPAL INVESTMENTS
--------------------------------------------------------------------------------------------------
NEW YORK New York State Energy Research and Development
Authority, Pollution Control Revenue, Niagara
Mohawk Power Company, Daily Demand Note,
4.3%, 7/1/15*............................................ 700,000 A1+ 700,000
New York State Energy, Research and Development,
Brooklyn Union Gas, Select Auction Variable Rate
Securities, 4.259%, 4/1/20*.............................. 1,000,000 A 1,000,000
New York State Job Development Authority,
Special Purpose, Daily Demand Note:
Subject to AMT, Series A1-13, 4.65%, 3/1/02*........... 1,075,000 A1 1,075,000
Subject to AMT, Series A1-42, 4.65%, 3/1/05*........... 10,500,000 A1 10,500,000
----------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(Cost $13,275,000)....................................... 13,275,000
----------
93.0% LONG-TERM MUNICIPAL INVESTMENTS
--------------------------------------------------------------------------------------------------
NEW YORK 34th Street Partnership Inc., NY, Capital Improvement,
5.5%, 1/1/14 ............................................ 1,900,000 A 1,730,026
Albany, NY, General Obligation, 7%, 1/15/08 (c)............ 485,000 AAA 532,802
Battery Park City Authority, NY, Revenue Refunding,
Series A:
5%, 11/1/08............................................ 1,950,000 AA 1,743,749
5%, 11/1/13............................................ 3,350,000 AA 2,880,096
5.25%, 11/1/17......................................... 6,525,000 AA 5,648,693
4.75%, 11/1/19......................................... 11,665,000 AA 9,235,530
Battery Park City Project, NY, Housing Corporation,
Senior Revenue Refunding:
Series 1993, 5.1%, 11/1/05............................. 2,375,000 AA 2,200,366
5.2%, 11/1/06.......................................... 4,505,000 AA 4,153,835
5%, 11/1/13............................................ 5,865,000 AA 5,002,200
5%, 11/1/18............................................ 4,500,000 AA 3,705,075
Chautauqua County, NY:
7.3%, 4/1/08 (c)....................................... 575,000 AAA 669,059
7.3%, 4/1/09 (c)....................................... 575,000 AAA 668,984
Development Authority of The North Country, NY,
Solid Waste Management Authority, Series A:
6%, 7/1/97 ............................................ 400,000 BBB 402,208
6.15%, 7/1/98.......................................... 1,000,000 BBB 1,013,090
5.75%, 7/1/96.......................................... 700,000 BBB 696,794

</TABLE>
The accompanying notes are an integral part of the financial statements.

17
<PAGE>

<TABLE>
SCUDDER NEW YORK TAX FREE FUND
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
Unaudited
-------------
Principal Credit Market
Amount ($) Rating (b) Value ($)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Inverse Variable Rate Certificate Trust, Metropolitan
Transit Authority, Series 1993 B, 5.718%, 6/30/02** ..... 8,000,000 NR 7,670,000
Metropolitan Transportation Authority, NY, Service
Contract, Transit Facilities, Series 7, 5.4%, 7/1/06..... 2,215,000 BBB 2,065,953
Monroe County, NY, Airport Authority, Greater
Rochester International Airport, 5.375%, 1/1/19 (c)...... 6,550,000 AAA 5,815,287
Nassau County Industrial Development Agency, NY,
Adelphi University, 5.5%, 6/1/03......................... 1,000,000 A 985,070
Nassau County, NY, Combined Sewer District,
Refunding, 5.1%, 7/1/05 (c).............................. 2,850,000 AAA 2,767,835
New York City , NY, Municipal Water Finance Authority,
Water and Sewer System Revenue, Series B:
5.375%, 6/15/19 (c).................................... 1,000,000 AAA 915,870
5.5%, 6/15/19 (c)...................................... 8,970,000 AAA 8,357,080
New York City, NY, General Obligation:
Series B, 7.5%, 2/1/05................................... 2,500,000 A 2,660,050
Series E, 8%, 8/1/05 (c) ................................ 330,000 AAA 396,650
Series F, 8.25%,11/15/16 ................................ 200,000 A 219,398
New York City, NY, Industrial Development Agency:
Civil Facilities, USTA National Tennis Center,
FSA insured:
6.1%, 11/15/04 ........................................ 1,215,000 AAA 1,274,365
6.25%, 11/15/06........................................ 3,000,000 AAA 3,188,430
Terminal One Group Association Project,
5.15%, 1/1/99.......................................... 4,370,000 A 4,282,250
New York State Dormitory Authority Revenue:
City University Revenue:
Series A, 9.25%, 7/1/00................................ 2,000,000 BBB 2,327,780
Consolidated Revenue, Series A, 5.75%, 7/1/09.......... 4,000,000 BBB 3,830,800
Series B, 8.125%, 7/1/08............................... 1,200,000 BBB 1,325,388
Series D, 8.2%, 7/1/12 ................................ 2,000,000 BBB 2,213,420
New York College and University Lease, Pooled
Capital Program, 7.8%, 12/1/05 (c)..................... 4,305,000 AAA 4,739,030
Columbia University, 5%, 7/1/15.......................... 2,500,000 AAA 2,171,950
Crouse Irving Memorial Hospital, Insured Mortgage
Revenue, HIBI insured, 10.5%, 7/1/17................... 2,600,000 A 2,663,570
Department of Health, 5.5%, 7/1/06....................... 2,295,000 BBB 2,160,697
New Hope Community, Inc., 5.7%, 7/1/17................... 1,500,000 AA 1,391,220
New Rochelle Hospital Medical Center Project,
GNMA Collateralized, 10%, 1/1/10....................... 970,000 AAA 976,858
State University Educational Facility, Series A:
5.5%, 5/15/06 (c)...................................... 2,245,000 AAA 2,261,568
5.25%, 5/15/15 (c)..................................... 6,300,000 AAA 5,779,179

</TABLE>

The accompanying notes are an integral part of the financial statements.

18
<PAGE>

<TABLE>
INVESTMENT PORTFOLIO
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
Unaudited
-------------
Principal Credit Market
Amount ($) Rating (b) Value ($)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
New York State Environmental Facilities Corporation:
Spring Valley Water Company, Subject to AMT,
5.65%, 11/1/23 (c)..................................... 1,000,000 AAA 916,750
State Water Revolving Fund, Series D,
6.9%, 5/15/15.......................................... 2,465,000 AAA 2,659,291
New York State Housing Finance Agency, Service
Contract, Series F, 5.25%, 9/15/06....................... 1,500,000 BBB 1,384,305
New York State Local Government Assistance
Corporation:
Series A, 6%, 4/1/16................................... 4,150,000 A 4,115,763
Series A, 6%, 4/1/24................................... 6,080,000 A 5,933,168
Series B, 5.375%, 4/1/16 .............................. 400,000 A 366,356
New York State Medical Care Facilities Finance
Agency, Mental Health Center:
Series A, 8.25%, 2/15/99 .............................. 3,415,000 BBB 3,679,287
Series A, 8.875%, 8/15/07.............................. 395,000 BBB 429,420
Series F, 5.25%, 2/15/08 (c)........................... 2,000,000 AAA 1,920,280
Series F, 5.25%, 8/15/08 (c)........................... 1,000,000 AAA 959,100
Series F, 5.375%, 2/15/14 (c).......................... 2,200,000 AAA 2,052,798
North Shore University, Glen Cove, Series A,
5.125%, 11/1/12 (c) ................................... 1,450,000 AAA 1,317,630
St. Luke's-Roosevelt Hospital, Series A,
FHA insured, 5.625%, 8/15/18........................... 2,500,000 AAA 2,314,875
New York State Mortgage Agency Revenue,
Homeowner Mortgage:
Series FF, 7.95%, 10/1/14.............................. 250,000 AA 263,683
Subject to AMT, Series 30-C-1, 5.85%, 10/1/25.......... 2,000,000 AA 1,798,080
Series 00, 7.9%, 10/1/10 .............................. 85,000 AA 85,000
New York State Thruway Authority, Service Contract
Revenue, Local Highway and Bridge Building:
5.125%, 4/1/07 (c)..................................... 900,000 AAA 863,001
5.125%, 4/1/07......................................... 3,000,000 BBB 2,680,650
5.75%, 4/1/08.......................................... 1,000,000 BBB 946,580
New York State, General Obligation:
7.5%, 11/15/01 (c) ...................................... 2,200,000 AAA 2,492,072
7%, 11/15/02 (c)......................................... 2,555,000 AAA 2,844,533
New York State, Urban Development Corporation
Revenue, Correctional Capital Facilities:
Series A, 5.45%, 1/1/07................................ 2,000,000 BBB 1,912,860
Series A, 5.5%, 1/1/14................................. 3,000,000 BBB 2,704,230
5.25%, 1/1/04 ......................................... 2,370,000 BBB 2,207,323
5.5%, 1/1/15 .......................................... 2,000,000 BBB 1,797,500

</TABLE>
The accompanying notes are an integral part of the financial statements.

19
<PAGE>

<TABLE>
SCUDDER NEW YORK TAX FREE FUND
- --------------------------------------------------------------------------------------------------------------------
<CAPTION>
Unaudited
-------------
Principal Credit Value ($)
Amount ($) Rating (b) (Note A)
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York State, Urban Development Corporation
Revenue, Onondaga County Convention Center,
7.875%, 1/1/10 .......................................... 1,000,000 BBB 1,086,320
Niagara County, NY, General Obligation,
7.1%, 2/15/11 (c)........................................ 500,000 AAA 569,605
Niagara Falls, NY, Water Treatment Plant:
Subject to AMT, 7%, 11/1/03 (c).......................... 2,260,000 AAA 2,495,808
Subject to AMT, 8.5%, 11/1/05 (c)........................ 2,140,000 AAA 2,640,011
Subject to AMT, 8.5%, 11/1/06 (c)........................ 1,240,000 AAA 1,540,328
Schenectady, NY, Industrial Development Agency,
Broadway Center Project, Series A, 5%, 9/1/09 (c)........ 1,250,000 AAA 1,140,575
Shenendehowa Central School District, NY,
Clifton Park:
6.85%, 6/15/08 (c)..................................... 350,000 AAA 392,147
6.85%, 6/15/09 (c)..................................... 350,000 AAA 392,431
Suffolk County, NY, General Obligation, Refunding,
Series F, 4.6%, 7/15/02 (c).............................. 2,345,000 AAA 2,243,884
Suffolk County, NY, Water Authority Revenue,
Series 1993, Sub Lien, 4.8%, 6/1/99 (c).................. 395,000 AAA 393,061
Valley Central School District, Montgomery, NY,
7.15%, 6/15/08 (c)....................................... 625,000 AAA 724,038

PUERTO RICO Puerto Rico Commonwealth Infrastructure Finance
Authority, Series A:
7.9%, 7/1/07 .......................................... 1,000,000 BBB 1,092,810
7.75%, 7/1/08.......................................... 920,000 BBB 1,001,313

VIRGIN ISLANDS Virgin Islands, General Obligation, Public Finance
Authority, Matching Fund Loan Notes, Series A,
7%, 10/1/02.............................................. 500,000 BBB 523,700
-----------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(Cost $178,919,657)...................................... 177,602,771
-----------
- --------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT PORTFOLIO - 100.0%
(Cost $192,194,657) (a)................................... 190,877,771
===========
<FN>
(a) The cost for federal income tax purposes was $192,521,642. At March 31, 1995,
net unrealized depreciation for all securities based on tax cost was $1,643,871.
This consisted of aggregate gross unrealized appreciation for all securities
in which there was an excess of market value over tax cost of $4,044,959 and
aggregate gross unrealized depreciation for all securities in which there was
an excess of tax cost over market value of $5,688,830.

(b) All of the securities held have been determined to be of appropriate credit
quality as required by the Fund's investment objectives. Credit ratings shown
are assigned by either Standard & Poor's Ratings Group, Moody's Investors Service,
Inc. or Fitch Investors Service, Inc. Unrated securities (NR) have been determined
to be of comparable quality to rated eligible securities.
</FN>
</TABLE>

The accompanying notes are an integral part of the financial statements.

20
<PAGE>

INVESTMENT PORTFOLIO
- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------

* Floating rate and monthly, weekly, or daily demand notes are securities
whose yields vary with a designated market index or market rate, such as
the coupon-equivalent of the Treasury bill rate. Variable rate demand
notes are securities whose yields are periodically reset at levels that
are generally comparable to tax-exempt commercial paper. These securities
are payable on demand within seven calendar days and normally incorporate
an irrevocable letter of credit from a major bank. These notes are
carried, for purposes of calculating average weighted maturity, at the
longer of the period remaining until the next rate change or to the extent
of the demand period.

** Inverse floating rate notes are instruments whose yields have an inverse
relationship to benchmark interest rates. These securities are shown at
their rate as of March 31, 1995.

The accompanying notes are an integral part of the financial statements.

21
<PAGE>

<TABLE>
SCUDDER NEW YORK TAX FREE FUND
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------------------

STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------------------

MARCH 31, 1995
- --------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments, at market (identified cost $192,194,657)
(Note A)................................................... $190,877,771
Cash.......................................................... 85,330
Receivables:
Investments sold........................................... 35,000
Interest................................................... 3,335,866
Fund shares sold........................................... 127,695
------------
Total assets............................................ 194,461,662

LIABILITIES
Payables:
Investments purchased...................................... $489,833
Dividends.................................................. 278,439
Fund shares redeemed....................................... 12,005
Accrued management fee (Note C)............................ 100,294
Other accrued expenses (Note C)............................ 48,195
--------
Total liabilities....................................... 928,766
------------
Net assets, at market value................................... $193,532,896
============
NET ASSETS
Net assets consist of:
Unrealized depreciation on investments..................... $ (1,316,886)
Accumulated net realized loss.............................. (7,390,499)
Shares of beneficial interest.............................. 186,459
Additional paid-in capital................................. 202,053,822
------------
Net assets, at market value................................... $193,532,896
============
NET ASSET VALUE, offering and redemption price per share
($193,532,896 / 18,645,871 outstanding shares of
beneficial interest, $.01 par value, unlimited number
of shares authorized)...................................... $10.38
======

</TABLE>
The accompanying notes are an integral part of the financial statements.

22
<PAGE>

<TABLE>
FINANCIAL STATEMENTS
- -----------------------------------------------------------------------------------

STATEMENT OF OPERATIONS
- -----------------------------------------------------------------------------------

YEAR ENDED MARCH 31, 1995
- -----------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest................................................ $11,950,480
Expenses:
Management fee (Note C)................................. $ 1,251,453
Services to shareholders (Note C)....................... 181,386
Custodian and accounting fees (Note C).................. 91,161
Trustees' fees (Note C)................................. 15,138
Auditing ............................................... 37,406
Reports to shareholders................................. 35,762
Legal................................................... 6,935
State registration...................................... 6,872
Other................................................... 24,389 1,650,502
------------------------
Net investment income................................... 10,299,978
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT TRANSACTIONS
Net realized loss from:
Investments.......................................... (5,278,675)
Futures.............................................. (64,727)
Options.............................................. (189,187) (5,532,589)
-----------
Net unrealized appreciation during
the period on:
Investments.......................................... 6,360,150
Futures.............................................. 38,500 6,398,650
------------------------
Net gain on investments................................. 866,061
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.... $11,166,039
===========

</TABLE>
The accompanying notes are an integral part of the financial statements.

23
<PAGE>

<TABLE>
SCUDDER NEW YORK TAX FREE FUND
- ------------------------------------------------------------------------------------

STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------
<CAPTION>
YEARS ENDED MARCH 31,
----------------------------
INCREASE (DECREASE) IN NET ASSETS 1995 1994
- ------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Net investment income........................... $ 10,299,978 $ 10,534,053
Net realized gain (loss) from investment
transactions................................. (5,532,589) 7,302,852
Net unrealized appreciation (depreciation)
on investment transactions................... 6,398,650 (15,181,966)
------------ ------------
Net increase in net assets resulting from
operations................................... 11,166,039 2,654,939
------------ ------------
Distributions to shareholders:
From net investment income ($.52 and
$.54 per share, respectively).............. (10,299,978) (10,534,053)
------------ ------------
From net realized gains from investment
transactions ($.67 per share).............. -- (13,077,205)
------------ ------------
In excess of net realized
gains ($.05 and $.06 per share,
respectively).............................. (1,028,717) (829,193)
------------ ------------
Fund share transactions:
Proceeds from shares sold....................... 34,151,916 58,805,379
Net asset value of shares issued to
shareholders in reinvestment
of distributions............................. 7,668,354 19,138,980
Cost of shares redeemed......................... (55,402,814) (49,831,679)
------------ ------------
Net increase (decrease) in net assets from
Fund share transactions ..................... (13,582,544) 28,112,680
------------ ------------
INCREASE (DECREASE) IN NET ASSETS............... (13,745,200) 6,327,168
Net assets at beginning of period............... 207,278,096 200,950,928
------------ ------------
NET ASSETS AT END OF PERIOD..................... $193,532,896 $207,278,096
============ ============
OTHER INFORMATION
INCREASE (DECREASE) IN FUND SHARES
Shares outstanding at beginning of period....... 20,085,899 17,626,244
------------ ------------
Shares sold..................................... 3,366,073 5,182,618
Shares issued to shareholders in
reinvestment of distributions................ 754,635 1,709,514
Shares redeemed................................. (5,560,736) (4,432,477)
------------ ------------
Net increase (decrease) in Fund shares.......... (1,440,028) 2,459,655
------------ ------------
Shares outstanding at end of period............. 18,645,871 20,085,899
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.

24
<PAGE>

<TABLE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------------------------------------------
THE FOLLOWING TABLE INCLUDES SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD AND OTHER
PERFORMANCE INFORMATION DERIVED FROM THE FINANCIAL STATEMENTS.

<CAPTION>
YEARS ENDED MARCH 31,
--------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period......... $10.32 $11.40 $10.98 $10.73 $10.60 $10.53 $10.39 $11.43 $11.19 $10.11
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Income from investment
operations:
Net investment
income.................... .52 .54 .61 .65 .67 .69 .72 .73 .75 .75
Net realized and
unrealized gain
(loss) on investment
transactions.............. .11 (.35) 1.03 .50 .13 .16 .14 (.84) .39 1.08
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total from investment
operations.................. .63 .19 1.64 1.15 .80 .85 .86 (.11) 1.14 1.83
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Less distributions:
From net investment
income ................... (.52) (.54) (.61) (.65) (.67) (.69) (.72) (.73) (.75) (.75)
From paid-in
capital................... -- -- -- -- -- (.08) -- -- -- --
From net realized
gains..................... -- (.67) (.61) (.25) -- (.01) -- (.20) (.15) --
In excess of net
realized gains............ (.05) (.06) -- -- -- -- -- -- -- --
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total distributions............ (.57) (1.27) (1.22) (.90) (.67) (.78) (.72) (.93) (.90) (.75)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value,
end of period............... $10.38 $10.32 $11.40 $10.98 $10.73 $10.60 $10.53 $10.39 $11.43 $11.19
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
TOTAL RETURN (%) 6.39 1.31 15.60 11.11 7.79 8.18 8.55 (.61) 10.71 18.71

RATIOS AND
SUPPLEMENTAL DATA
Net assets, end of
period ($ millions)......... 194 207 201 159 142 132 123 116 154 102
Ratio of operating
expenses, net to
average daily net
assets (%).................. .82 .82 .82 .87 .91 .89 .89 .95 .88 .88
Ratio of net investment
income to average
daily net assets (%)........ 5.13 4.80 5.36 5.96 6.29 6.39 6.89 7.05 6.70 7.01
Portfolio turnover
rate (%).................... 83.8 158.0 201.4 168.2 224.9 114.3 132.1 44.2 71.9 40.4

</TABLE>

25
<PAGE>

SCUDDER NEW YORK TAX FREE MONEY FUND
SCUDDER NEW YORK TAX FREE FUND
- --------------------------------------------------------------------------------

A. SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
Scudder New York Tax Free Money Fund ("Tax Free Money Fund"), a nondiversified
fund, and Scudder New York Tax Free Fund ("Tax Free Fund"), a diversified fund,
are two series of Scudder State Tax Free Trust (the "Trust"). The Trust,
currently consisting of six separate series, is organized as a Massachusetts
business trust and is registered under the Investment Company Act of 1940, as
amended (the "1940 Act"), as an open-end management investment company. The
policies described below are followed consistently by the Funds in the
preparation of their financial statements in conformity with generally accepted
accounting principles.

SECURITY VALUATION. Tax Free Money Fund values all portfolio securities
utilizing the amortized cost method permitted in accordance with Rule 2a-7 under
the 1940 Act and pursuant to which Tax Free Money Fund must adhere to certain
conditions. Under this method, which does not take into account unrealized gains
and losses on securities, an instrument is initially valued at its cost and
thereafter assumes a constant accretion/amortization to maturity of any
discount/premium.

Tax Free Fund's portfolio debt securities with remaining maturities greater
than sixty days are valued by pricing agents approved by the Officers of the
Fund, which quotations reflect broker/dealer-supplied valuations and electronic
data processing techniques. If the pricing agents are unable to provide such
quotations, the most recent bid quotation supplied by a bona fide market maker
shall be used. Short-term investments having a maturity of sixty days or less
are valued at amortized cost. All other debt securities are valued at their
fair value as determined in good faith by the Valuation Committee of the
Trustees.

OPTIONS. The Tax Free Fund may write (sell) exchange-listed and over-the-counter
call and put options on securities and other financial instruments. When the
Fund writes a call, it gives the purchaser of the call option the right to
buy the underlying security at the price specified in the option (the "exercise
price") at any time during the option period, generally ranging up to nine
months. When the Fund writes a put option, it gives the purchaser of the put
option the right to sell the underlying security to the Fund at the exercise
price at any time during the option period, generally ranging up to nine months.

26
<PAGE>

NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------

If the option expires unexercised, the Fund will realize income, in the form of
a capital gain, to the extent of the amount received for the option (the
"premium"). If the option is exercised, a decision over which the Fund has no
control, the Fund must sell the underlying security to the option holder or
purchase the underlying security from the option holder at the exercise
price. Certain options, including options on indices will require cash
settlement by the Fund if the option is exercised. By writing a call option,
the Fund foregoes, in exchange for the premium less the commission ("net
premium"), the opportunity to profit during the option period from an increase
in the market value of the underlying security above the exercise price. By
writing a put option, the Fund, in exchange for the net premium received,
accepts the risk of a decline in the market value of the underlying security
below the exercise price.

The liability representing the Fund's obligation under an exchange traded
written options is valued at the last sale price or, in the absence of a sale,
the mean between the closing bid and asked quotations or at the most recent
asked quotation if no bid and asked quotations are available. Over-the-counter
written options are valued at the most recent asked quotation.

In addition, the Fund may purchase, singly and in combination, call and put
options on securities and other financial instruments. Exchange traded purchased
options are valued at the last sales price or, in the absence of a sale, the
mean between the closing bid and asked quotations or at the most recent bid
quotation if no bid and asked quotations are available. Over-the-counter
purchased options are valued at the most recent bid quotation.

FUTURES CONTRACTS. The Tax Free Fund may enter into interest rate and securities
index futures contracts for bona fide hedging purposes. Upon entering into a
futures contract, the Tax Free Fund is required to deposit with a broker an
amount ("initial margin") equal to a certain percentage of the purchase price
indicated in the futures contract. Subsequent payments ("variation margin") are
made or received by the Tax Free Fund each day, dependent on the daily
fluctuations in the value of the underlying security, and are recorded for
financial reporting purposes as unrealized gains or losses by the Tax Free
Fund. When entering into a closing transaction, the Tax Free Fund will realize,
for book purposes, a gain or loss equal to the difference between the value of
the futures contract to sell and the futures contract to buy.

27
<PAGE>

SCUDDER NEW YORK TAX FREE MONEY FUND
SCUDDER NEW YORK TAX FREE FUND
- --------------------------------------------------------------------------------

Futures contracts are valued at the most recent settlement price. Certain risks
may arise upon entering into futures contracts from the contingency of imperfect
market conditions.

AMORTIZATION AND ACCRETION. All premiums and original issue discounts are
amortized/accreted for both tax and financial reporting purposes.

FEDERAL INCOME TAXES. The Funds' policy is to comply with the requirements of
the Internal Revenue Code which are applicable to regulated investment companies
and to distribute all of their taxable and tax-exempt income to their
shareholders. Accordingly, the Funds paid no federal income taxes and no
provisions for federal income taxes were required.

At March 31, 1995, the Tax Free Money Fund had a net tax basis capital loss
carryforward of approximately $12,700 which may be applied against any realized
net taxable capital gains of each succeeding year until fully utilized or until
March 31, 2000 ($800), March 31, 2001 ($1,700), March 31, 2002 ($3,500) and
March 31, 2003 ($6,700), the respective expiration dates, whichever occurs
first.

At March 31, 1995, the Tax Free Fund had a net tax basis capital loss
carryforward of approximately $3,937,000 which may be applied against any
realized net taxable capital gains of each succeeding year until fully
utilized or until March 31, 2003, the expiration date.

In addition, from November 1, 1994 through March 31, 1995, the Tax Free Fund
incurred approximately $2,170,000 of net realized capital losses. As permitted
by tax regulations, the Fund intends to elect to defer these losses and treat
them as arising in the fiscal year ended March 31, 1996.

DISTRIBUTION OF INCOME AND GAINS. All of the net investment income of the Funds
is declared as dividends to shareholders of record as of the close of business
each day and is paid to shareholders monthly.

During any particular year, net realized gains from investment transactions,
in excess of available capital loss carryforwards, would be taxable to the
Funds if not distributed and, therefore, will be distributed to shareholders.
An additional distribution may be made to the extent necessary to avoid the
payment of a four percent federal excise tax.

28
<PAGE>

NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------

The timing and characterization of certain income and capital gains
distributions are determined in accordance with federal tax regulations which
may differ from generally accepted accounting principles. These differences
relate primarily to investments in futures contracts.

As a result, net investment income and net realized gain (loss) on investment
transactions for a reporting period may differ significantly from distributions
during such period. Accordingly, the Funds may periodically make
reclassifications among certain of its capital accounts without impacting the
net asset value of the Funds.

The Funds use the specific identification method for determining realized gain
or loss on investments for both financial and federal income tax reporting
purposes.

OTHER. Investment transactions are accounted for on a trade date basis.
Distributions of net realized gains to shareholders are recorded on the
ex-dividend date. Interest income is accrued pro rata to the earlier of the
call or maturity date.

B. PURCHASES AND SALES OF SECURITIES
- --------------------------------------------------------------------------------
During the year ended March 31, 1995, purchases and sales of long-term municipal
securities aggregated $153,608,725 and $156,789,199, respectively, for Tax Free
Fund.

The aggregate face value of futures contracts opened and closed during the year
ended March 31, 1995 amounted to $512,073,999 and $522,660,499, respectively,
for Tax Free Fund.

C. RELATED PARTIES
- --------------------------------------------------------------------------------
Each Fund has entered into an Investment Advisory Agreement (each an "Agreement"
and collectively the "Agreements") with Scudder, Stevens & Clark, Inc. (the
"Adviser"), under which each Fund agrees to pay the Adviser a fee computed and
accrued daily and paid monthly. The annual rate is 0.50% of the average daily
net assets of Tax Free Money Fund and 0.625% of the first $200,000,000 of the
average daily net assets, and 0.60% of such net assets in excess of
$200,000,000 for Tax Free Fund.

As manager of the assets of Tax Free Money Fund and Tax Free Fund, the Adviser
directs the investments of Tax Free Money Fund and Tax Free Fund in accordance
with the investment objectives, policies, and restrictions of each Fund. The
Adviser determines the securities, instruments, and other contracts relating
to investments to be

29
<PAGE>

SCUDDER NEW YORK TAX FREE MONEY FUND
SCUDDER NEW YORK TAX FREE FUND
- --------------------------------------------------------------------------------

purchased, sold or entered into by each Fund. In addition to portfolio
management services, the Adviser provides certain administrative services
in accordance with the Agreements.

The Agreements also provide that if the Funds' expenses, exclusive of taxes,
interest and certain other expenses exceed specified limits, such excess, up to
the amount of the management fee, will be paid by the Adviser. For the year
ended March 31, 1995, the fee for Tax Free Fund pursuant to the Agreement
amounted to $1,251,453, which was equivalent to an annual effective rate
of .624% of the Fund's average daily net assets.

With respect to Tax Free Money Fund, the Adviser has agreed not to impose all
or a portion of its management fee until July 31, 1995 and during such period
to maintain the annualized expenses of Tax Free Money Fund at not more than
0.60% of average daily net assets. For the year ended March 31, 1995, the
Adviser did not impose a portion of its fee amounting to $151,719, and the
portion imposed amounted to $107,615.

Effective September 22, 1994 and December 7, 1994, Scudder Fund Accounting
Corporation ("SFAC") a wholly-owned subsidiary of the Adviser, assumed
responsibility for determining the net asset value per share and maintaining
the portfolio and general accounting records of the New York Tax Free Money
Fund and New York Tax Free Fund, respectively. For the year ended March 31,
1995, SFAC imposed fees amounting to $15,833 for the New York Tax Free Money
Fund. For the year ended March 31, 1995, SFAC imposed fees amounting to $16,530
for the New York Tax Free Fund.

Scudder Service Corporation ("SSC"), a wholly-owned subsidiary of the Adviser,
is the transfer, dividend-paying and shareholder service agent for the Funds.
For the year ended March 31, 1995, $65,424 and $137,282 were charged by SSC
to Tax Free Money Fund and Tax Free Fund, of which $5,052 and $10,695 were
unpaid at March 31, 1995, respectively.

The Trust pays each Trustee not affiliated with the Adviser $12,000 annually,
allocated equally among the series of the Trust, plus specified amounts for
attended board and committee meetings. For the year ended March 31, 1995,
Trustees' fees aggregated $15,138 each for both the Tax Free Money Fund and Tax
Free Fund.

30
<PAGE>

REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------

TO THE TRUSTEES OF SCUDDER STATE TAX FREE TRUST AND THE SHAREHOLDERS OF SCUDDER
NEW YORK TAX FREE MONEY FUND AND SCUDDER NEW YORK TAX FREE FUND:

We have audited the accompanying statements of assets and liabilities of Scudder
New York Tax Free Money Fund and Scudder New York Tax Free Fund, including the
investment portfolios, as of March 31, 1995 and the related statements of
operations for the year then ended, the statements of changes in net assets
for each of the two years in the period then ended, and the financial highlights
for each of the periods indicated therein. These financial statements and
financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
March 31, 1995, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.

In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Scudder New York Tax Free Money Fund and Scudder New York Tax Free Fund as
of March 31, 1995, the results of their operations for the year then ended,
the changes in their net assets for each of the two years in the period then
ended, and their financial highlights for each of the periods indicated therein
in conformity with generally accepted accounting principles.

Boston, Massachusetts COOPERS & LYBRAND L.L.P.
May 8, 1995

31
<PAGE>

TAX INFORMATION
- --------------------------------------------------------------------------------

Of the dividends paid by the New York Tax Free Money Fund and New York Tax
Free Fund from net investment income for the taxable year ended March 31, 1995,
100% constituted exempt interest dividends for regular federal income tax and
New York State and New York City income tax purposes.

Please consult a tax adviser if you have any questions about federal or state
income tax laws, or on how to prepare your tax returns. If you have specific
questions about your Scudder Fund account, please call a Scudder Investor
Relations Representative at 1-800-225-5163.

32
<PAGE>

OFFICERS AND TRUSTEES
- --------------------------------------------------------------------------------
David S. Lee*
President and Trustee

Henry P. Becton, Jr.
Trustee; President and General Manager, WGBH Educational Foundation

Dawn-Marie Driscoll
Trustee; Attorney and Corporate Director

Peter B. Freeman
Trustee; Corporate Director and Trustee

Dudley H. Ladd*
Trustee

Wesley W. Marple, Jr.
Trustee; Professor of Business Administration, Northeastern University

Juris Padegs*
Trustee

Daniel Pierce*
Trustee

Jean C. Tempel
Trustee; Director, Executive Vice President and Manager, Safeguard
Scientifics, Inc.

Donald C. Carleton*
Vice President

Jerard K. Hartman*
Vice President

Thomas W. Joseph*
Vice President

Thomas F. McDonough*
Vice President and Secretary

Pamela A. McGrath*
Vice President and Treasurer

Edward J. O'Connell*
Vice President and Assistant Treasurer

Coleen Downs Dinneen*
Assistant Secretary

*Scudder, Stevens & Clark, Inc.

33
<PAGE>
INVESTMENT PRODUCTS AND SERVICES
- --------------------------------------------------------------------------------
<TABLE>
<C> <C>
The Scudder Family of Funds
Money Market Income
Scudder Cash Investment Trust Scudder Emerging Markets Income Fund
Scudder U.S. Treasury Money Fund Scudder GNMA Fund
Tax Free Money Market+ Scudder Income Fund
Scudder Tax Free Money Fund Scudder International Bond Fund
Scudder California Tax Free Money Fund* Scudder Short Term Bond Fund
Scudder New York Tax Free Money Fund* Scudder Short Term Global Income Fund
Tax Free+ Scudder Zero Coupon 2000 Fund
Scudder California Tax Free Fund* Growth
Scudder High Yield Tax Free Fund Scudder Capital Growth Fund
Scudder Limited Term Tax Free Fund Scudder Development Fund
Scudder Managed Municipal Bonds Scudder Global Fund
Scudder Massachusetts Limited Term Tax Free Fund* Scudder Global Small Company Fund
Scudder Massachusetts Tax Free Fund* Scudder Gold Fund
Scudder Medium Term Tax Free Fund Scudder Greater Europe Growth Fund
Scudder New York Tax Free Fund* Scudder International Fund
Scudder Ohio Tax Free Fund* Scudder Latin America Fund
Scudder Pennsylvania Tax Free Fund* Scudder Pacific Opportunities Fund
Growth and Income Scudder Quality Growth Fund
Scudder Balanced Fund Scudder Value Fund
Scudder Growth and Income Fund The Japan Fund

Retirement Plans and Tax-Advantaged Investments
IRAs 403(b) Plans
Keogh Plans SEP-IRAs
Scudder Horizon Plan+++* (a variable annuity) Profit Sharing and Money Purchase
401(k) Plans Pension Plans

Closed-End Funds#
The Argentina Fund, Inc. The Latin America Dollar Income Fund, Inc.
The Brazil Fund, Inc. Montgomery Street Income Securities, Inc.
The First Iberian Fund, Inc. Scudder New Asia Fund, Inc.
The Korea Fund, Inc. Scudder New Europe Fund, Inc.
Scudder World Income
Opportunities Fund, Inc.
Institutional Cash Management
Scudder Institutional Fund, Inc.
Scudder Fund, Inc.
Scudder Treasurers Trust(TM)++

For complete information on any of the above Scudder funds, including management fees and expenses, call or
write for a free prospectus. Read it carefully before you invest or send money. +A portion of the income
from the tax-free funds may be subject to federal, state, and local taxes. *Not available in all states. +++A
no-load variable annuity contract provided by Charter National Life Insurance Company and its affiliate,
offered by Scudder's insurance agencies, 1-800-225-2470. #These funds, advised by Scudder, Stevens & Clark,
Inc. are traded on various stock exchanges. ++For information on Scudder Treasurers Trust,(TM) an institutional
cash management service that utilizes certain portfolios of Scudder Fund, Inc. ($100,000 minimum), call
1-800-541-7703.
</TABLE>

34
<PAGE>
HOW TO CONTACT SCUDDER
- --------------------------------------------------------------------------------
<TABLE>
<C> <C>
Account Service and Information

For existing account service and transactions
SCUDDER INVESTOR RELATIONS
1-800-225-5163

For account updates, prices, yields, exchanges, and redemptions
SCUDDER AUTOMATED INFORMATION LINE (SAIL)
1-800-343-2890
Investment Information

To receive information about the Scudder funds, for additional
applications and prospectuses, or for investment questions
SCUDDER INVESTOR RELATIONS
1-800-225-2470

For establishing 401(k) and 403(b) plans
SCUDDER DEFINED CONTRIBUTION SERVICES
1-800-323-6105
Please address all correspondence to

THE SCUDDER FUNDS
P.O. BOX 2291
BOSTON, MASSACHUSETTS
02107-2291
Or stop by a Scudder Funds Center

Many shareholders enjoy the personal, one-on-one service of the
Scudder Funds Centers. Check for a Funds Center near you--they can
be found in the following cities:

Boca Raton New York
Boston Portland, OR
Chicago San Diego
Cincinnati San Francisco
Los Angeles Scottsdale

For information on Scudder For information on Scudder
Treasurers Trust,(TM) an institutional Institutional Funds,* funds
cash management service for designed to meet the broad
corporations, non-profit investment management and
organizations and trusts that uses service needs of banks and
certain portfolios of Scudder Fund, other institutions, call
Inc.* ($100,000 minimum), call 1-800-854-8525.
1-800-541-7703.

Scudder Investor Relations and Scudder Funds Centers are services provided through Scudder
Investor Services, Inc., Distributor.

* Contact Scudder Investor Services, Inc., Distributor, to receive a prospectus with more complete
information, including management fees and expenses. Please read it carefully before you invest or send money.
</TABLE>

35
<PAGE>
Celebrating 75 Years of Serving Investors
- --------------------------------------------------------------------------------

Established in 1919 by Theodore Scudder, Sidney Stevens, and F. Haven
Clark, Scudder, Stevens & Clark was the first independent investment counsel
firm in the United States. Since its birth, Scudder's pioneering spirit and
commitment to professional long-term investment management have helped shape the
investment industry. In 1928, we introduced the nation's first no-load mutual
fund. Today we offer 36 pure no load(TM) funds, including the first
international mutual fund offered to U.S. investors.

Over the years, Scudder's global investment perspective and dedication to
research and fundamental investment disciplines have helped us become one of the
largest and most respected investment managers in the world. Though times have
changed since our beginnings, we remain committed to our long-standing
principles: managing money with integrity and distinction; keeping the interests
of our clients first; providing access to investments and markets that may not
be easily available to individuals; and making investing as simple and
convenient as possible through friendly, comprehensive service.