From: George Volland [gvolland@mtrustcompany.com] Sent: Monday, May 10, 2004 5:51 PM To: rule-comments@sec.gov Subject: File No. S7-11-04 May 10, 2004 Jonathan G. Katz Secretary Securities and Exchange Commission 450 Fifth Street, NW Washington, DC 20549-0609 Re: File No. S7-11-04 Dear Mr. Secretary, As a senior executive of an independent trust company, responsible for safeguarding over 8,000 client accounts, most of whom have invested in Mutual Funds; I am writing to strenuously object to the proposed mandatory 2% redemption fee. In a recent Wall Street Journal article, (May 10th), it was made clear that the proposed 2% rule will do more harm to smaller investors, most of whom are trying desperately to recover from the recent stock market decline. The quote in the WSJ that was most revealing to me was as follows: “Take the rule to impose a 2% redemption fee on investors who redeem their shares within five days of purchase. This rule is meant to stop trading on stale prices. But academic studies have shown that it will, at best, only discourage such trading, not end it, since stale-price trading would still be profitable after big market moves even after netting out the penalty fee. Worse, this fee would whammy innocent investors who have unexpected liquidity needs or even experience a change of mind.” As a representative of more than 8,000 of these smaller, “innocent investors”, I recommend you eliminate the consideration of this mandatory 2% rule. Thank you for your time and consideration of this matter. Regards, George George W. Volland SVP Director of Marketing Millennium Trust Company 630-368-5625 630-368-5699 fax 847-431-1010 cell This e-mail may contain privileged and/or confidential information intended only for the use of the individual or entity to which it is addressed. If you are not the intended recipient, or the person responsible for delivering it to the addressee, you are hereby placed on notice that any use, dissemination, distribution or copying of this communication is strictly prohibited. If you have received this transmission in error, please notify the sender immediately by reply e-mail and destroy all copies of the original message whether in electronic or hard copy format. Thank you.