From: ILENESE@aol.com
Sent: Thursday, April 01, 2004 4:55 PM
To: rule-comments@sec.gov
Subject: File # S7-06-04

In Proposed Regulations VI of the above referenced File, it appears that 
there has been a collusion whereby the SEC and the Mutual Fund Industry have 
come forth with regulations which will still result in an over charge on the 
Sales Charges billed to investors on  the purchase of mutual funds. 

Attachment  I - Disclosure Statement 

This disclosure statement does not disclose but rather conceals from the 
investor what the true costs of the transaction is.    No actual price  is 
disclosed in this statement, but rather an equivalent price of 4 1/8.  The 
real price  being much higher as only hinted at in Footnote 71 

An analysis of Footnotes 154 and 155 likewise shows that the ultimate result 
of these regulations will still result in the denial of the total number of 
shares due to an investor, and the enrichment of the mutual fund industry by 
use of the method of calculating "sales charges".  One could equate this to 
charging a sales charge on a sales charge, or perhaps a "compounding sales 
charge".   The examples provided in these footnotes do not reveal the truth. 

It is believed that the people responsible for the writing of these 
regulations, having vast experience and expertise in not only basic and 
advanced mathematics, Security Laws and the Mutual Fund industry are well 
aware of this "compounding sales charge" problem, but for whatever reason, 
have deemed that it shall remain the same.  This denies the protection to the 
investing public, whether that be a child, as an individual owning a mere 10 
shares of a mutual fund, or a pension fund which might own thousands of 
shares.   The result is the same.  The enrichment of the mutual fund 
industry, and the depletion of the investing public's assets.  All without 
full disclosure as to the method and result of this computation.  The SEC 
should do better, since its Mission is to ensure a fair and open marketplace. 

These proposed regulations should not be approved as written. 

Eileen Evans 
N635 State Road 35 
La Crosse, WI  54601