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SIGNATURE KENNETH V. DOMINGUES
TITLE V.P.,TREASURER & CFO
REPORT OF INDEPENDENT AUDITORS
To the Shareholders and Board of Trustees
of the Franklin Equity Fund:
In planning and performing our audit of the financial statements
and financial highlights of the Franklin Equity Fund for the
year ended June 30, 1994, 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
financial highlights and to comply with the requirements of Form
N-SAR, not to provide assurance on the internal control structure.
The management of the Franklin Equity Fund is responsible
for establishing and maintaining an internal control structure.
In fulfilling this responsibility, estimates and judgements 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 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
and financial highlights 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 June 30, 1994.
This report is intended solely for the information and use of
management of the Franklin Equity Fund and the Securities
and Exchange Commission.
S\COOPERS & LYBRAND L.L.P.
Coopers & Lybrand L.L.P.
San Francisco, California
August 3, 1994
NSAR/0103-DOC.DOC August 19, 1994
NAME OF REGISTRANT: Franklin Equity Fund
File No. 811-334
EXHIBIT ITEM No. 77C: Submission of matters to a vote of
security holders.
At a special meeting of shareholders of the registrant held
on April 13, 1994 the following items were voted upon:
(1) Election of directors.
For Withhold Authority
1. Frank H. Abbott, III 22,919,190 1,410,699
2. Harris J. Ashton 22,926,778 1,403,111
3. S. Joseph Fortunato 22,922,659 1,407,230
4. David W. Garbellano 22,926,121 1,403,768
5. Charles B. Johnson 22,925,996 1,403,893
6. Charles E. Johnson 22,920,665 1,409,224
7. Rupert H. Johnson, Jr. 22,926,778 1,403,111
8. Frank W.T. LaHaye 22,926,778 1,403,111
9. R. Martin Wiskemann 22,926,778 1,403,111
(2) Ratification of the selection of Coopers & Lybrand,
Certified Public Accountants, as the independent auditors for the
Fund for the fiscal year ending June 30, 1994.
Vote For Vote Against
22,719,516 145,442
(3)To approve the adoption of a Distribution Plan pursuant to
Rule 12b-1 under the Investment Company Act of 1940.
Vote For Vote Against
18,946,578 809,068
