<PAGE> PAGE 1
000 B000000 12/31/97
000 C000000 0000856217
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001 A000000 THE L. ROY PAPP STOCK FUND, INC.
001 B000000 811-05922
001 C000000 6029560980
002 A000000 4400 N. 32ND STREET, SUITE 280
002 B000000 PHOENIX
002 C000000 AZ
002 D010000 85018
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071 A000000 12654
<PAGE> PAGE 2
071 B000000 4191
071 C000000 67760
071 D000000 6
072 A000000 12
074 N000000 79820
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075 A000000 0
075 B000000 67760
077 A000000 Y
080 A000000 NATIONAL UNION FIRE INSURANCE COMPANY OF PA
080 C000000 2000
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SIGNATURE ROBERT L. MUELLER
TITLE VICE PRESIDENT
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000856217
<NAME> L. ROY PAPP STOCK FUND, INC.
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 39,547,255
<INVESTMENTS-AT-VALUE> 79,109,038
<RECEIVABLES> 100,562
<ASSETS-OTHER> 610,468
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 79,820,068
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 40,258,285
<SHARES-COMMON-STOCK> 2,680,437
<SHARES-COMMON-PRIOR> 2,346,779
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 39,561,783
<NET-ASSETS> 79,820,068
<DIVIDEND-INCOME> 644,793
<INTEREST-INCOME> 38,555
<OTHER-INCOME> 0
<EXPENSES-NET> 772,989
<NET-INVESTMENT-INCOME> (89,641)
<REALIZED-GAINS-CURRENT> 1,139,336
<APPREC-INCREASE-CURRENT> 17,054,879
<NET-CHANGE-FROM-OPS> 18,104,574
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 816,722
<NUMBER-OF-SHARES-REDEEMED> 517,899
<SHARES-REINVESTED> 34,835
<NET-CHANGE-IN-ASSETS> 26,542,981
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 690,660
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 772,989
<AVERAGE-NET-ASSETS> 67,760,000
<PER-SHARE-NAV-BEGIN> 22.70
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 7.51
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> .43
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 29.78
<EXPENSE-RATIO> 1.12
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Board of Directors and Shareholders of the
The L. Roy Papp Stock Fund, Inc.
In planning and performing our audit of the financial statements of
The L. Roy Papp Stock Fund, Inc., for the year ended December 31, 1997,
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, and not to provide
assurance on the internal control structure.
The management of The L. Roy Papp Stock 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 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
irregularities may occur and not be detected. Also, projection
of any evaluation of internal contorl 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 components 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 a 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, 1997.
This report is intended solely for the information and use of
managment, the Board of Directors of The L. Roy Papp Stock Fund,
Inc., and the Securities and Exchange Commission.
Arthur Andersen LLP
Phoenix, Arizona
January 21, 1998
