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X I - 6 - be less than or possibly §&» 1* therate if return used fey Kr. is fab u^lfall dealing with water rant. It Is ay opinion that la eoitsl&ar-lag this appraisal far the purpose of sals te Water District we should set consider the facilities of the Railroad and Water Company separately feat should consider the* as a whole since there will, *»•££««** fee only one sale notwithstanding the feet that title will h«ire to pass fro* hath Companies. n t h regard to interest rates. X do not believe that ths rate of return claimed fey Mr. wshe In his exhibit would hare any bearing on the rate of Interest that would fee paid for money under a construction program. J l The straight-line depreciation included in #y apprai* eel le feaacd on the lire* of pipe lines and facilities shown In Hr* BuXsiser*# Statements *A* and i&ieh | understand fron Hr. Hubbard are the terries liras of pipe lines and facilities sphered fey the Bureau of Internal Rerenue. Xn n e w of the soil conditions known to prerail at has Vegas, It Is my opinion that the liras of pipe lines need In ay appraisal and shown in Hr* Hulslser* s exhibit* art somewhat m excess of serrloe liras that should fee applied to pipe lines In this appraisal* The eerrlee liras of pipe lines used fey Mr. wehe la his Rate Gass would fee acre nearly correct fop application to pipe lines In this appraisal• Hewsear, X do not think it adneefelc to sake any change In the serrloe liras need In this appraisal but think we should Merc tills question open for debate when sooting Is held with the officials of the Water District when final appraised ralue Is discussed* M Referring to Mr* Hulslser** latter of April 18, 1081, the suggested changes exclusive of depreciation rates would result in decrease in total relues as ehoim in the following iafeulatianr