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<PAGE> PAGE 2
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SIGNATURE BRUCE N. ALPERT
TITLE PRESIDENT/TREAS
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000794685
<NAME> THE GABELLI EQUITY TRUST
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 844193648
<INVESTMENTS-AT-VALUE> 1341215869
<RECEIVABLES> 34084357
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</TABLE>
To the Shareholders and Board of Directors of
The Gabelli Equity Trust Inc.
In planning and performing our audit of the financial statements of The
Gabelli Equity Trust Inc. (the "Equity Trust") for the year ended
December 31, 1998, 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 internal control.
The management of the Equity 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 acquisition, use or disposition.
Because of inherent limitations in internal control, errors 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 it may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of 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 caused 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 December 31, 1998.
This report is intended solely for the information and use of management and
the Board of Directors of the Equity Trust and the Securities and Exchange
Commission.
PricewaterhouseCoopers LLP
February 25, 1999
The Gabelli Equity Trust Inc.
4th Quarter 1998
Section 10f-3 Transactions
The following securities were purchased pursuant to Rule 10f-3 and all
requirements of the Affiliated Underwriting Procedures of the Fund. A
folder documenting such compliance for each transaction is available for
inspection
by Board Members.
Trade Dates 12-09-98
Issue Infinity Brocasting Corp.
Shares 3,000
Price $20.50
Amount $61,500
Spread Amount 0.82
Spread % 4.0%
Fund's % of Issue 0.002%
% of Issue for all Gavelli
Funds 0.22%
Broker Merrill Lynch & Co.
Issues within 90 days 3
Reason (1).(2)
The Purchases listed above meet the following requirements of 10f-3
...Part of an issue registered under the Securities Act of 1933.
...Purchased at not more than the offering price.
...Offered pursuant to a firm commitment underwriting.
... The issuer has been in continuos operation for at least 3 years.
All other requirements are presented in the table above.
Reason Key
(1) Does not exceed 125% of the mean offering spread of 3 comparable
Issues underwritten in the last 90 days.
(2) Does not exceed 110% of this underwriting spread of 3 comparable Issues
underwritten in the last 90 days.
Note: If 3 comparable issues are not available within 90 days, a one-year
window is used.
