From: Mel Hudson [mel8338@sbcglobal.net] Sent: Friday, April 30, 2004 4:43 PM To: Jonathan Katz Subject: File No. S7-09-04 I am a licensed insurance and mutual fund sales person, I too am concerned with the illegal and inappropriate practices of some in the mutual fund industry. However I am also concerned that legitimate, appreciate compensation paid to registered representatives for providing valuable time, advice and services to their clients could get swept up in the changes in laws, legislation and rules that will surely come to the mutual fund industry. I am therefore writing you to urge the SEC to reject any proposal that would eliminate the ability to pay 12b-1 fees to registered representatives for providing ongoing services to their mutual fund owning clients. Without this it ultimately will be the client who lose this valuable service they are willing to pay. Please encourage them not to throw the baby out with the bath water. Thank you.