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% Las ? « g u * A p r il 26, 1949 W %~T~X Hr. L, A. White: Xour letter April 22, file BP 5-?, re~ gardlng collection ©f penalties for March 1949: It is our understanding of the regular tioas under which the 2$ft penalty is assessed that thie is optional with the Hater Company and It has been our practice to waive the penalty in those Instances where reasonable exouse Is offered for late payment, suoh as illness, change of ownership, etc. We ass see the penalty in the majority of oases in order to encourage consumers to pay their M i l s promptly when they are due, thus avoiding tine and expense involved in nailing out delinquent netlees. However, when the consumer offers to pay in advance as well as for the delinquent bills, the question arises as to whether we offer a dis­count for advance payments, which, of course, we do not. As a compromise and in all fairness we waive the delinquent charges on the past-due Mils, quite a large number of accounts are paid fcy mail and when we receive suoh remittances with the 25ft penalty mot included, we have the alternative of either returning the check and suffer additional de­lay in payment of the account, or waive"- the penalty. fou will note of the accounts listed in your letter 5 0 ^ of then included payments in advance. A. H. Folger