Subject: File No. S7-06-04
From: Bruce A Thale

March 30, 2004

As you consider full disclosure on mutual funds, I would like you to consider mutual fund kickbacks to brokerages. For instance, Charles Schwab and many other brokers offer many mutual funds under a program that they call One Source. They make a big deal out of telling you that you can trade in and out of these funds without paying Schwabs normal 39 commission for trading mutual funds. When you ask them how they can do this the broker will tell you that they have a special arrangement with those mutual funds. I would like to know how much that special arrangement is costing me.