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SIGNATURE ROBERT E. KERN, JR.
TITLE PRESIDENT
Signatue Page -- Form N-SAR
Morgan Grenfell SMALLCap Fund, File Number 811-4981
This report is signed on behalf of the registrant in the City of New York
and State of New York on the 21st Day of February 1996.
Morgan Grenfell SMALLCap Fund, Inc.
-----------------------------------
Name of Registrant
By /S/ Robert E. Kern, Jr.
-----------------------
Name: Robert E. Kern, Jr.
Title: President
Witness
/S/ Richard P. Marotto
-----------------------
Name: Richard P. Marotto
Title: Compliance Officer
[LOGO]
KPMG Peat Marwick LLP
345 Park Avenue
New York, NY 10154
The Shareholders and the Board of Directors of
Morgan Grenfell SMALLCap Fund, Inc.:
In planning and performing our audit of the financial statements of Morgan
Grenfell SMALLCap Fund, Inc. 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 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
structure.
The management of Morgan Grenfell SMALLCap 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 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
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 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 for the use of management and the Securities and
Exchange Commission and should not be used for any other purpose.
/s/ KPMG Peat Marwick LLP
New York, New York
January 31, 1996
[LOGO] Member Firm of
Klynveld Peat Marwick Goerdeler
