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SIGNATURE JAMES COLANTINO
TITLE SENIOR ADMINISTRATOR
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<NAME> CHACONIA INCOME & GROWTH FUND, INC.
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REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
Chaconia Income & Growth Fund, Inc.:
In planning and performing our audit of the financial statements
and financial highlights of The Chaconia Income & Growth Fund,
Inc. for the year ended December 31, 1997, we considered its
internal control, including controls over 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.
The management of The Chaconia Income & Growth Fund, Inc. 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. Genera lly, 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. These 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 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 any specific
internal control component 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 internal
control, including controls over 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
management of The Chaconia Inocme & Growth Fund, Inc. and the
Securities and Exchange Commission.
COOPERS & LYBRAND L.L.P.
New York, New York
February 26, 1998
