February 10, 1997

To the Board of Directors of
  The Equitable Companies Incorporated

We have audited the consolidated financial statements of The Equitable Companies
Incorporated  ("The  Equitable")  included in its Annual Report on Form 10-K for
the year ended  December 31, 1996 and issued our report  thereon dated  February
10, 1997. Note 2 to the consolidated  financial statements describes a change in
The  Equitable's  method of  accounting  for  long-duration  participating  life
insurance  contracts.  It should  be  understood  that  alternative  methods  of
accounting for such life insurance  contracts are permitted in the authoritative
literature  and in arriving at our opinion  expressed  below,  we have relied on
management's  business  planning and judgment.  Based upon our discussions  with
management  and the stated  reasons for the change,  we believe that such change
represents,  in your  circumstances,  the adoption of a  preferable  alternative
accounting principle for long-duration participating life insurance contracts in
conformity with Accounting Principles Board Opinion No.20.

Yours very truly,




/s/Price Waterhouse LLP
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