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<PAGE> PAGE 2
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SIGNATURE KEVIN M. RYAN
TITLE SECRETARY-TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 113,247,295
<INVESTMENTS-AT-VALUE> 117,529,544
<RECEIVABLES> 2,802,579
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 120,332,123
<PAYABLE-FOR-SECURITIES> 300,354
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<OTHER-ITEMS-LIABILITIES> 480,101
<TOTAL-LIABILITIES> 780,455
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 104,918,545
<SHARES-COMMON-STOCK> 10,006,054
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 293,228
<OVERDISTRIBUTION-NII> 0
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<OVERDISTRIBUTION-GAINS> 0
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<NET-ASSETS> 119,551,668
<DIVIDEND-INCOME> 1,398,656
<INTEREST-INCOME> 5,552,414
<OTHER-INCOME> 57,561
<EXPENSES-NET> 682,733
<NET-INVESTMENT-INCOME> 6,295,898
<REALIZED-GAINS-CURRENT> 3,063,135
<APPREC-INCREASE-CURRENT> 7,392,882
<NET-CHANGE-FROM-OPS> 16,751,915
<EQUALIZATION> 56,021,073
<DISTRIBUTIONS-OF-INCOME> 6,034,698
<DISTRIBUTIONS-OF-GAINS> 3,012,003
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 6,395,245
<NUMBER-OF-SHARES-REDEEMED> 2,196,051
<SHARES-REINVESTED> 611,416
<NET-CHANGE-IN-ASSETS> 63,726,287
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 460
<OVERDISTRIB-NII-PRIOR> 4,675
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 477,283
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 682,733
<AVERAGE-NET-ASSETS> 98,295,956
<PER-SHARE-NAV-BEGIN> 10.75
<PER-SHARE-NII> 0.73
<PER-SHARE-GAIN-APPREC> 1.48
<PER-SHARE-DIVIDEND> 0.70
<PER-SHARE-DISTRIBUTIONS> 0.31
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</TABLE>
To the Board of Directors of
Berwyn Income Fund, Inc.
In planning and performing our audit of the
financial statements of Berwyn Income Fund, Inc.
(the "Fund") for the year ended December 31, 1995,
we considered its internal control structure,
including procedures for safeguarding securities,
in order to determine our auditing procedures for
the purposes of expressing our opinion on the
financial statement and to comply with the
requirements of Form N-SAR, and not to provide
assurance on the internal control structure.
The management of the Fund 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 internal control structure policies and
procedures. Two of the objectives of an internal
control structure are to provide management with
reasonable, but not absolute, assurance that assets
are appropriately safeguarded against loss from
unauthorized use or disposition and that
transactions are executed in accordance with
management's authorization and recorded properly to
permit preparation of financial statements in
conformity 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 structure 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 the internal control structure
would not necessarily disclose all matters in the
internal control structure 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 the specific internal
control structure elements does not reduce to a
relatively low level the risk that errors or
irregularities 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 the internal control
structure, including procedures for safeguarding
securities, that we consider to be material
weaknesses as defined above as of December 31,
1995.
This report is intended solely for the information
and use of management and the Securities and
Exchange Commission.
PRICE WATERHOUSE LLP
PRICE WATERHOUSE LLP
Thirty South Seventeenth Street
Philadelphia, Pennsylvania
February 8, 1996
