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St RE: Los Angeles, Jims I & 3 Docket 127 - Application of LVL&WGo. Rate Increase. 4705-11-22 ^ Mr. T. W. Bookes: / (oo W M . R. - MMrr.. WAm.. 1.R eiSnthoadrddatr/d/ JUN 12 1951 Mr. W. E. Hulsiaer Mr. R. M. Sutton) The adjourned hearing in the above oase was held at las Vegas, Nevada on June 5th to 7th, inclusive. Shortly prior to the hearing 1 had a conference with the City Attorney of the City of Las Vegas o oncoming some of the controversial Issues in the ease. As a result, he stipulated at the adjourned hearing that the charges for management and supervision expense shown in our exhibits were reasonable charges. This stipulation shortened up the hearing considerably as It would have taken some time to have proven in detail the reasonableness of the estimates which have been made covering these expenses. Messrs. Reinhardt and Hulaizer were present throughout dtuhce t enotfi re hearing and gave helpful advice concerning the conthe case. We also consulted on valuation matters with Mr. F. A. Hubbard who was also present. At the adjourned hearing the testimony of Mr. R, 0. Carson, Assistant Auditor of Disbursements, was concluded. His testimony largely comprised a Justification of the Joint facility rent bill made by the Railroad upon the Water Company. He did, however, introduce some exhibits dealing with the accounts of the LVI&WCo, He made a very excellent witness. Mr. R. a. Parkinson and Mr. William McCafforty were present and served in a consulting capacity., Mr. Parkinson has a wide knowledge of all the railroad accounting problems and Mr. MeCafferty has an intimate knowledge of the accounts of the LVL&WCo. The help which we received from all three of the Accounting Department representatives was extremely helpful in presenting our case. Mr. L. R, M&ag, Assistant to the Industrial Engineer, testified coneeming the physical facilities of both the Railroad and Water Company at Las Vegas. The protestants had attempted to east some doubt upon the extent of the facilities JUN 12 1951 L. C. C.