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SIGNATURE JAMES W. ROSENBERGER
TITLE TREASURER
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<NAME> DUFF & PHELPS UTILITIES TAX FREE INC.
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Report of Independent Auditors
The Board of Trustees and Shareholders of
Duff & Phelps Utilities Tax-Free Income Inc.
In planning and performing our audit of the
financial statements of Duff & Phelps Utilities
Tax-Free Income Inc. for the year ended October
31, 1998, we considered its internal control,
including control activities 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.
The management of Duff & Phelps Utilities Tax-Free
Income 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.
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 fraud 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
one or more of the specific internal control
components does not reduce to a relatively low
level the risk that errors or fraud 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 and its operation,
including controls for safeguarding securities,
that we consider to be material weaknesses as
defined above at October 31, 1998.
This report is intended solely for the information
and use of management of Duff & Phelps Utilities
Tax-Free Income Inc. and the Securities and
Exchange Commission and is not intended to be and
should not be used by anyone other than these
specified parties.
Chicago, Illinois
November 20, 1998
