Thank you for your letter making out a case for increasing your commission rare by 5%. We fully share your views that the market has turned highly competitive over the past year, and that further investment in advertising and publicity has become necessary.
We do believe, however, that your request for a 5% hike in commission rate is far from reasonable, as none of our commission agents in any part of the country is paid as high a commission rate as 20 percent. We would consider a 2% hike very fair in the circumstances.
We do hope you will respond favorably to our offer. Should this offer be unacceptable to you, we would be prepared to make a lump sum payment of $ 5 b1llIo perannum to cover the costs of advertising and publicity.