From: John Lotshaw [john.lotshaw@jmlotshaw.com]
Sent: Wednesday, May 05, 2004 5:01 PM
To: rule-comments@sec.gov
Subject: (S7-09-04)[Docket No: IC-26375A; 3235-AJ17];[FR Doc: 04-05374];[Page 11761-11774]; Investment companies: Redeemable fund securities; mandatory redemption fees

Dear SEC Committee Member:



            You are creating a bigger problem than you are solving with the 
elimination of 12b1 fees. This is the government interfering with the profit 
structure and compensation of American Corporations. Service to existing clients 
would diminish and in some cases be totally eliminate. In addition, financial 
representatives are depending on this existing revenue flow to grow their 
business. It would be detrimental to the financial service industry long term 
growth and will have to be replaced with another type of revenue.



John Lotshaw.