Subject: File No. S7-18-96 Author: at Internet Date: 6/12/97 4:39 PM The following is the text of a letter appearing in the June 12, 1997 edition of The Wall Street Journal under the headline "SEC Has Learned the Value of Plain Talk": Morningstar Inc.'s president, Don Phillips, has raised a red herring in his criticism of the SEC's proposed plain English rules for mutual-fund disclosure documents (May 28, Money & Investing). Mr. Phillips's view is that the SEC shouldn't waste its time enforcing clear language, but should instead encourage shareholder activism in mutual funds. But he fails to address the real issue behind the proposed rules: the consumer's right to understand information being disclosed. I would expect this viewpoint from groups such as Morningstar that have a vested interest in maintaining the legal jargon found in most financial documents. However, the SEC should take, and is taking, a broader view. Fundamentally, the proposed rules are about giving consumers a fair shake. Twenty years of experience in helping businesses simplify complex documents have taught us and our clients that plain language works. Like other critics of plain English who have voiced criticism of the SEC rules, Mr. Phillips has failed to come up with a valid reason not to simplify the needlessly complex. Kenneth Morris President Siegel & Gale New York