Exhibit 16.1



September 7, 2004

Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20549


Gentlemen:

We have read Item 4.01 of Form 8-K dated September 1, 2004 of Capital  Southwest
Corporation  and we are in agreement with the statements  contained in the first
paragraph and the first sentence of the second  paragraph on page 2 therein.  We
do not agree with the statement contained in the last sentence of paragraph 2 on
page 2.

We do not agree with the statement in the sentence  constituting  paragraph 3 on
page 2 in that we have  provided this letter  within the time  requirements  and
rules contained in Regulation S-K Item 304(a)(3).



                              /s/ Ernst & Young LLP