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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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SIGNATURE LESLIE L. OGG
TITLE VICE PRESIDENT
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<NAME> STRATEGIST TAX-FREE INCOME FUND, INC.
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</TABLE>
Independent Auditors' Report
on Internal Accounting Control
The Board of Directors and Shareholders
Strategist Tax-Free Income Fund, Inc.:
In planning and performing our audit of the financial statements of
Strategist Tax-Free High Yield Fund of Strategist Tax-Free Income
Fund Inc. for the period ended November 30, 1997, 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, not to provide assurance on the internal control.
The management of Strategist Tax-Free Income 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. 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 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 the internal control would not necessarily
disclose all matters in the 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 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 the normal course
of performing their assigned functions. However, we
noted no matters involving the internal control and
its operation, including controls for safeguarding
securities, that we consider to be a material weakness
as defined above.
2
This report is intended solely for the information and use
of management, the Board of Directors of Strategist Tax-Free
Income Fund, Inc., and the Securities and Exchange Commission.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
January 2, 1998
