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<PAGE> PAGE 2
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SIGNATURE ROBERT ANDERSON
TITLE COMPLIANCE OFFICER
Shareholder Meeting Results (unaudited)
The Annual Meeting of Shareholders of Tax-Free Trust of Oregon (the "Trust")
was held on May 3, 1999. The holders of shares representing 69% of the total
net asset value of the shares entitled to vote were present in person or by
proxy. At the meeting, the following matters were voted upon and approved
by the shareholders (the resulting votes for each matter
are presented below).
1. To elect Trustees.
Number of Votes:
Trustee For Against
Lacy B. Herrmann 230,894,921 3,636,585
Vernon R. Alden 231,019,204 3,512,302
Warren C. Coloney 231,117,615 3,413,892
David B. Frohnmayer 231,121,288 3,410,219
James A. Gardner 231,237,216 3,294,291
Diana P. Herrmann 231,237,216 3,294,291
Raymond H. Lung 231,237,216 3,294,291
John W. Mitchell 231,237,216 3,294,291
Richard C. Ross 231,237,216 3,294,291
2. To ratify the selection of KPMG LLP as the Trust's independent auditors.
Number of Votes:
Trustee Against Abstain
227,059,510 1,149,298 6,322,688
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000791049
<NAME> TAX-FREE TRUST OF OREGON
<SERIES>
<NUMBER> 001
<NAME> CLASS A SHARES
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-END> SEP-30-1999
<INVESTMENTS-AT-COST> 319,147,493
<INVESTMENTS-AT-VALUE> 322,773,466
<RECEIVABLES> 6,109,276
<ASSETS-OTHER> 3,363
<OTHER-ITEMS-ASSETS> 1,625,493
<TOTAL-ASSETS> 330,511,598
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,765,133
<TOTAL-LIABILITIES> 1,765,133
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 324,935,278
<SHARES-COMMON-STOCK> 30,049,573
<SHARES-COMMON-PRIOR> 29,692,537
<ACCUMULATED-NII-CURRENT> 220,108
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (34,894)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,625,973
<NET-ASSETS> 308,700,996
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 18,188,315
<OTHER-INCOME> 0
<EXPENSES-NET> 2,300,163
<NET-INVESTMENT-INCOME> 15,888,152
<REALIZED-GAINS-CURRENT> 389,398
<APPREC-INCREASE-CURRENT> (18,253,687)
<NET-CHANGE-FROM-OPS> (1,976,137)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 15,357,860
<DISTRIBUTIONS-OF-GAINS> 603,490
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,077,787
<NUMBER-OF-SHARES-REDEEMED> 3,633,583
<SHARES-REINVESTED> 912,832
<NET-CHANGE-IN-ASSETS> (5,553,802)
<ACCUMULATED-NII-PRIOR> 374,665
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,345,097
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,392,961
<AVERAGE-NET-ASSETS> 321,847,758
<PER-SHARE-NAV-BEGIN> 10.86
<PER-SHARE-NII> .50
<PER-SHARE-GAIN-APPREC> (.56)
<PER-SHARE-DIVIDEND> .51
<PER-SHARE-DISTRIBUTIONS> 0.02
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.27
<EXPENSE-RATIO> .71
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000791049
<NAME> TAX-FREE TRUST OF OREGON
<SERIES>
<NUMBER> 002
<NAME> CLASS C SHARES
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-END> SEP-30-1999
<INVESTMENTS-AT-COST> 319,147,493
<INVESTMENTS-AT-VALUE> 322,773,466
<RECEIVABLES> 6,109,276
<ASSETS-OTHER> 3,363
<OTHER-ITEMS-ASSETS> 1,625,493
<TOTAL-ASSETS> 330,511,598
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,765,133
<TOTAL-LIABILITIES> 1,765,133
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 324,935,278
<SHARES-COMMON-STOCK> 292,376
<SHARES-COMMON-PRIOR> 106,872
<ACCUMULATED-NII-CURRENT> 220,108
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (34,894)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,625,973
<NET-ASSETS> 3,001,439
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 18,188,315
<OTHER-INCOME> 0
<EXPENSES-NET> 2,300,163
<NET-INVESTMENT-INCOME> 15,888,152
<REALIZED-GAINS-CURRENT> 389,398
<APPREC-INCREASE-CURRENT> (18,253,687)
<NET-CHANGE-FROM-OPS> (1,976,137)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 82,349
<DISTRIBUTIONS-OF-GAINS> 2,451
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 211,679
<NUMBER-OF-SHARES-REDEEMED> 30,354
<SHARES-REINVESTED> 4,179
<NET-CHANGE-IN-ASSETS> (5,553,802)
<ACCUMULATED-NII-PRIOR> 374,665
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,345,097
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,392,961
<AVERAGE-NET-ASSETS> 2,110,740
<PER-SHARE-NAV-BEGIN> 10.85
<PER-SHARE-NII> .41
<PER-SHARE-GAIN-APPREC> (.55)
<PER-SHARE-DIVIDEND> .42
<PER-SHARE-DISTRIBUTIONS> .02
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.27
<EXPENSE-RATIO> 1.56
</TABLE>
<TABLE> <S> <C>
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<CIK> 0000791049
<NAME> TAX-FREE TRUST OF OREGON
<SERIES>
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<NAME> CLASS Y SHARES
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<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-END> SEP-30-1999
<INVESTMENTS-AT-COST> 319,147,493
<INVESTMENTS-AT-VALUE> 322,773,466
<RECEIVABLES> 6,109,276
<ASSETS-OTHER> 3,363
<OTHER-ITEMS-ASSETS> 1,625,493
<TOTAL-ASSETS> 330,511,598
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,765,133
<TOTAL-LIABILITIES> 1,765,133
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 324,935,278
<SHARES-COMMON-STOCK> 1,660,072
<SHARES-COMMON-PRIOR> 982,494
<ACCUMULATED-NII-CURRENT> 220,108
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (34,894)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,625,973
<NET-ASSETS> 17,044,030
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 18,188,315
<OTHER-INCOME> 0
<EXPENSES-NET> 2,300,163
<NET-INVESTMENT-INCOME> 15,888,152
<REALIZED-GAINS-CURRENT> 389,398
<APPREC-INCREASE-CURRENT> (18,253,687)
<NET-CHANGE-FROM-OPS> (1,976,137)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 607,653
<DISTRIBUTIONS-OF-GAINS> 20,435
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 721,432
<NUMBER-OF-SHARES-REDEEMED> 58,206
<SHARES-REINVESTED> 14,352
<NET-CHANGE-IN-ASSETS> (5,553,802)
<ACCUMULATED-NII-PRIOR> 374,665
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,345,097
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,392,961
<AVERAGE-NET-ASSETS> 12,313,456
<PER-SHARE-NAV-BEGIN> 10.85
<PER-SHARE-NII> .52
<PER-SHARE-GAIN-APPREC> (.56)
<PER-SHARE-DIVIDEND> .52
<PER-SHARE-DISTRIBUTIONS> .02
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.27
<EXPENSE-RATIO> .56
</TABLE>
[DESCRIPTION] AUDITORS' LETTER
Independent Auditors' Report
The the Board of Trustees and Shareholders of
Tax-Free Trust of Oregon:
In planning and performing our audit of the financial
statements of Tax-Free Trust of Oregon (the "Trust")
for the year ended September 30, 1999, we considered
its internal control, including control activities
for safeguarding securities, in order to determine
our auditing procedures for the purpose of expressing
our opinion on the financial statements and to comply
with the requirements of Form N-SAR, not to provide
assurance on the internal control.
The management of the Trust is responsible for establishing
and maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs
of controls. Generally, controls that are relevant to an
audit pertain to the entity's objective of preparing
financial statements for external purposes that are fairly
presented in conformity with generally accepted accounting
principles. Those controls include the safeguarding of
assets against unauthorized acquisitions, use, or
disposition.
Because of inherent limitations in internal control, error
or fraud may occur and not be detected. Also, projection
of any evaluation of internal control to future periods is
subject to the risk that is may become inadequate because
of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration on the internal control would not
necessarily disclose all matters in internal control that
might be material weaknesses under standards established by
the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or
operation of one or more of the internal control components
does not reduce to a relatively low level the risk that
misstatements cased by error or fraud in amounts that would
be material in relation to the financial statements being
audited may occur and not be detected within a timely
period by employees in the normal course of performing
their assigned functions. However, we noted no matters
involving internal control and its operation, including
controls for safeguarding securities, that we consider to
be material weaknesses as defined above as of September 30,
1999.
This report is intended solely for the information and use
of management, the Board of Trustees of Tax-Free Trust of Oregon,
and the Securities and Exchange Commission.
/s/ KPMG LLP
- --------------------
New York, New York
November 23, 1999
