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SIGNATURE THOMAS C. HENRY, ESQ.
TITLE GENERAL COUNSEL
<TABLE> <S> <C>
<ARTICLE> 6
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<PERIOD-END> FEB-28-1997
<INVESTMENTS-AT-COST> 47333326
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<OVERDISTRIBUTION-NII> 0
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</TABLE>
ROY G. HALE
Certified Public Accountant
301-870-3374 P.O. Box 2634
800-286-4602 La Plata, MD 20646
Shareholders and Board of Directors
Copley Fund, Inc.
Palm Beach, Florida
I have made an evaluation of the internal control structure of Copley Fund,
Inc., in effect at February 28, 1997. My evaluation was conducted in
accordance with standards established by the American Institute of Certified
Public Accountants.
The management of Copley Fund, Inc., is responsible for establishing and
maintaining an internal control structure. In fulfilling this responsibility,
estimates and judgments by management are required to assess the expected
benefits and related costs of control procedures. The objectives of a system
are to provide management with reasonable, but not absolute, assurance that
assets are safeguarded against loss from unauthorized use or disposition, and
that transactions are executed in accordance with management's authorization
and recorded properly to permit the preparation of financial statements in
accordance with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and may not be detected. Also, projection of any
evaluation of the system to future periods is subject to the risk that
procedures may become inadequate because of changes in conditions or that the
degree of compliance with the procedures may deteriorate.
Over the course of the past year, the shareholder services and financial
accounting services provided to the Fund by Steadman Securities, Inc., has
decreased in quality. This statement is predicated on the high number of
adjustments required to bring the accounting records current as a direct
result of my audit. While the security of the assets of the Fund are not in
jeopardy, the services and financial accounting services in a manner which
will prevent errors or omissions in amounts that would be material in amount
is currently suspect. A high turn over of personnel and the indoctrination
and training of new personnel have contributed to this situation. It is
anticipated that this problem will be rectified with the current fiscal year.
Except for the statement in the immediate preceding paragraph, in my opinion,
the internal control structure of Copley Fund, Inc.,
<PAGE>
Shareholders and Board of Directors
Copley Fund, Inc.
Page 2
in effect at February 28, 1997, taken as a whole, was sufficient to meet the
objectives stated above insofar as those objectives pertain to the prevention
or detection of errors or irregularities in amounts that would be material in
relation to the financial statements.
/s/ Roy G. Hale
Roy G. Hale
Certified Public Accountant
April 21, 1997
La Plata, Maryland
