[PRICEWATERHOUSECOOPERS LOGO APPEARS HERE]
                                                     
                                                     PricewaterhouseCoopers LLP
                                                     1301 Avenue of the Americas
                                                     New York NY 10019-6013
                                                     Telephone (212) 259 1000
                                                     Facsimile (212) 259 1301


                                      November 25, 1998




Securities and Exchange Commission 
Philadelphia District
Curtis Center, Suite 1105E
601 Walnut Street
Philadelphia, PA 19106



Dear Sirs:

In compliance with Rule 17f-2 promulgated under the Investment Company Act of
1940, enclosed are our reports covering our examinations of the securities of
the BT Alex Brown Prime Series Fund, BT Alex Brown Treasury Series Fund, Flag
Investor Emerging Growth Fund, Inc., Flag Investors Equity Partners Fund, Inc.,
Flag Investors Real Estate Securities Fund, Inc., Flag Investors Telephone
Income Fund, Inc., Flag Investors Value Builder Fund, Inc., Flag Investors
Maryland Intermediate Tax-Free Income Fund, Inc., and Flag Investors Short
Intermediate Income Fund, Inc., at the close of business on December 31, 1997. 





                                        Very truly yours, 
                                     /s/PRICEWATERHOUSECOOPERS LLP

KJB:das
Enclosures





[PRICEWATERHOUSECOOPERS LOGO APPEARS HERE]


                                                     
                                                     PricewaterhouseCoopers LLP
                                                     1301 Avenue of the Americas
                                                     New York NY 10019-6013
                                                     Telephone (212) 259 1000
                                                     Facsimile (212) 259 1301





To the Board of Trustees of:
BT Alex Brown Prime Series Fund
BT Alex Brown Treasury Series Fund
Flag Investor Emerging Growth Fund, Inc.
Flag Investors Equity Partners Fund, Inc.
Flag Investors Real Estate Securities Fund, Inc.
Flag Investors Telephone Income Fund, Inc. 
Flag Investors Value Builder Fund, Inc.
Flag Investors Maryland Intermediate Tax-Free Income Fund, Inc.
Flag Investors Short Intermediate Income Fund, Inc.





We have examined the investment accounts shown on the books and records of the
BT Alex Brown Prime Series, BT Alex Brown Treasury Series Fund, Flag Investor
Emerging Growth Fund, Inc., Flag Investors Equity Partners Fund, Inc., Flag
Investors Real Estate Securities Fund, Inc., Flag Investors Telephone Income
Fund, Inc., Flag Investors Value Builder Fund, Inc., Flag Investors Maryland
Intermediate Tax-Free Income Fund, Inc., and Flag Investors Short Intermediate
Income Fund, Inc. (the "Funds") from the date of our last similar examination on
October 31, 1997 to December 31, 1997. Our examination was made without prior
notice to the Funds.

Securities owned as of the close of business on December 31, 1997, shown by the
books and records audited by us, which were accounted for by count or
inspection, without exception, were located in the vault of Bankers Trust
Company, except for securities purchased but not received, held by depositories,
subcustodians, or out for transfer on that date as to which we obtained
confirmations or applied other auditing procedures where confirmations were not
received. 

Our examination of the investment accounts also included, on a test basis,
inspection of broker advices and other appropriate evidence in support of
security transactions recorded on the Portfolio's records since October 31,
1997.






Page Two
Board of Directors
November 25, 1998





Because the above procedures do not constitute an audit made in accordance with
generally accepted auditing standards, we do not express an opinion on the
investment accounts referred to above. In connection with the procedures
referred to above, no matters came to our attention that caused us to believe
that the investment accounts should be adjusted. Had we performed additional
procedures or had we performed an audit of the financial statements in
accordance with generally accepted auditing standards, matters might have come
to our attention that would have been reported to you. This report relates only
to the investments specified above and does not extend to any financial
statements of the Portfolio taken as a whole.

It is understood that this report is solely for the use of management and the
Securities and Exchange Commission and should not be used for any other purpose.

                                                      PRICEWATERHOUSECOOPERS LLC



New York, New York
November 25, 1998







                                  FORM N-17f-2


 Certificate of Accounting of Securities and Similar Investments in the Custody
                       of Management Investment Companies
                    Pursuant to Rule 17f-2(17 CFR 270.17f-2)

1. Investment Company Act File Number:              Date examination completed:
                                                    December 31, 1997

                                                                  File   
              Fund Name                                           Number 
   --------------------------------------------                  --------
   BT Alex Brown Cash Reserve Fund  December                     811-3196
      -Prime Series                                                      
      -Treasury Series                                                   
      -Tax-Free Series                                                   
   Flag Investors Emerging Growth Fund                           811-5320
   Flag Investors Equity Partners Fund                           811-8886
   Flag Investors Real Estate Securities Fund                    811-8500
   Flag Investors Telephone Income Fund                          811-3883
   Flag Investors Value Builder Fund                             811-6600
   Flag Investors Maryland Intermediate Tax-Free Fund            811-7922
   Flag Investors Short-Intermediate Income Fund                 811-6084
   

2. State Identification Number.

AL             AK             AZ             AR             CA             CO
CT             DE             DC             FL             GA             HI
ID             IL             IN             IA             KS             KY
LA             ME             MD             MA             MI             MN
MS             MO             MT             NE             NV             NH
NJ             NM             NY             NC             ND             OH
OK             OR             PA             RI             SC             SD
TN             TX             UT             VT             VA             WA
WV             WI             WY             PUERTO RICO
Other (specify):

3. Exact number of investment company as specified in registration statement:
   See 1 above

4. Address of principal executive office: (number, street, city, state, zip
   code) One South Street, Baltimore, MD 21202

INSTRUCTIONS

This Form must be completed by the investment companies that have custody of
securities or similar investments.

Investment Company

1. All items must be completed by the investment company.

2. Give the form to the independent public accountant who, in compliance with
Rule 17f-2 under the Act and applicable state law, examines securities and
similar investments in the custody of the investment company.

Accountant

3. Submit this Form to the Securities and Exchange Commission and appropriate
state securities administrators when filing the certificate of accounting
required by Rule 17f-2 under the Act and applicable state law.  File the
original and one copy with the Securities and Exchange Commission's principal
office in Washington D.C., one copy with the regional office for the region in
which the investment company's principal business operations are conducted, and
one copy with the appropriate state administrator(s), if applicable.

          THIS FORM MUST BE GIVEN TO YOUR INDEPENDENT PUBLIC ACCOUNTANT

Note: The estimated average burden hours are made solely for purpose of the 
Paperwork Reduction Act, and are not derived from a comprehensive or even a 
representative survey or study of the costs of SEC rules and forms.  Direct any
comments concerning the  accuracy of the estimated average burden hours for
compliance with SEC rules and forms to Kenneth A. Fogash, Deputy Executive
Director, U.S. Securities and Exchange Commission, 450 Fifth Street, N.W.,
Washington, D.C. 20549 and Gary Waxman, Clearance Officer, Office of Management
and Budget, Room 3208 New Executive Office Building, Washington, D.C. 20503.