SECURITIES AND EXCHANGE COMMISSION

     Securities Act of 1933 
     Release No.  7440 / August 26, 1997

     Securities Exchange Act of 1934 
     Release No. 38976 / August 26, 1997

     Investment Company Act of 1940 
     Release No. 22799 / August 26, 1997

     Investment Advisers Act of 1940 
     Release No.  1651 / August 26. 1997

     Administrative Proceeding No. 3-9374

     IN THE MATTER OF HUDSON INVESTORS FUND, INC.; HUDSON ADVISERS, INC.; JAVED
     ANVER LATEF AND LARRY ALAN STOCKETT 

          Administrative and cease-and-desist proceedings have been instituted
     pursuant to Section 8A of the Securities Act of 1933, Section 21C of the
     Securities Exchange Act of 1934, Sections 9(b), 9(d) and 9(f) of the
     Investment Company Act of 1940 and Sections 203(e), 203(f), 203(i) and
     203(k) of the Investment Advisers Act of 1940 against Hudson Investors
     Fund, Inc. ("Hudson Fund") of Clifton, New Jersey; Hudson Advisers, Inc.
     ("Hudson Advisers") and Javed Anver Latef ("Latef") of Ridgewood, New
     Jersey; and Larry Alan Stockett ("Stockett") of Tiburon, California.

          The Order Instituting Proceedings alleges that Neuropro, Inc.
     ("Neuropro"), a company controlled by Stockett, entered into undisclosed
     agreements with Hudson Advisers, the adviser to Hudson Fund, a registered
     investment company which operates a growth mutual fund, and Hudson
     Investment Management, Inc. ("HIM"), the management company to Hudson
     Advisers.  Latef was the president of Hudson Fund, Hudson Advisers and HIM
     and signed all the undisclosed agreements for those entities.  It is
     alleged that the agreements:  gave Neuropro options to purchase Hudson
     Advisers and HIM for nominal payments; assigned Neuropro 90% of the fees
     due Hudson Advisers from Hudson Fund in exchange for certain advisory
     services to be provided to Hudson Advisers by Neuropro; and provided
     Neuropro would pay Hudson Advisers up to $10,000 per month to cover fees
     owed Hudson Advisers by Hudson Fund.

          The Order Instituting Proceedings also alleges that shortly after such
     agreements were executed, Hudson Advisers purchased stock in two issuers of
     which Stockett was president and in several other entities recommended by
     Stockett and Neuropro.  It is alleged that by June 1997 over half of Hudson
     Fund's portfolio was invested in securities recommended by Neuropro and
     Stockett.

          It is alleged that the failure of Hudson Fund, Hudson Advisers, Latef
     and Stockett to disclose the agreements with Neuropro and Stockett and the
     failure to disclose that Stockett

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     recommended many of the securities purchased for Hudson Fund's portfolio,
     including some in which he had an interest, violated Sections 15(a), 15(c)
     and 34(b) of the Investment Company Act, Sections 203(a), 204 and 207 of
     the Investment Advisers Act and Rule 204-1(b) thereunder, Section 17(a) of
     the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act
     of 1934 and Rule 10b-5 thereunder.

          A public hearing will be scheduled to determine whether the
     allegations against Hudson Fund, Hudson Advisers, Latef and Stockett are
     true and, if so, what sanctions, if any, are appropriate in the public
     interest with respect to those respondents.








































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