From: steve []
Sent: Wednesday, April 28, 2004 5:37 PM
Subject: Elimination of 12b-1 Fees should be rejected by SEC (S7-09-04)

12b-1 fees paid to registered representatives is an integral part of compensation. This very small charge per contract, pays for many of the services performed by representatives and their staffs. If you were to eliminate the 12b-1 fees then you would also be required to address representatives who bill on a fee for service. Their fee for service is typically more than 12b-1's. There is no justification for not addressing one without addressing the other. They are equal in they manner they compensate representatives. If you stop 12b-1's then service and continued advise to clients will become something of the past. Similar to the mechanic at the gas station who used to service your car. Those great service persons are almost a thing of the past. We must continue to receive 12b-1's or many of the reps and service staff, as we know them today, will be gone. You cannot continue to erode earnings and expect service to continue. If you are concerned about the service that clients receive and staff persons (going to the unemployment lines), then you have to leave 12b-1's alone. Why not try something unique. Punish the wrong doers and leave those of use who do not pilfer our clients alone. You can never legislate morality! Those who do not want to pay for our services buy direct over the internet already. Those who desire our services know that they do so through the 12b-1 fees. We are no different than the Life Insurance industry who pays renewal so that companies ensure their clients are properly serviced. The 12b-1's serve the same purpose.

Steve Van Scoik
PO Box 1886
Elkhart, IN 46515-1886
574-293-1738 Fax
Registered Representative

Securities Offered through Mutual Service Corporation, Member NASD and SIPC