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Mr. Edward C. Renwick pi November 23, 1951 Disadvantages 1. Lose income tax credit under ing if earnings are poor on the water ao pecroantsioolnisd.ate fil­Divis2i. o n bCeocsatu soef wRaatielrr oapdr odoupcetraitoino nnso lroanigseerd aivn aiLlasa blVee gatso absorb part of man hours and overhead* may be3. higChoesrts (foor r powastseirb lyp urlecshsa)s edt hafnr oumn dWeart eri tsC oomwpann yo p­eration. 4» Cost involved in making the corporate change. 5. Less direct control of the water operation. deningI natshem uwcaht ears oitp erisa tbieolnise—veadn d thseirnece iss uncoh airnet ennotwio an bouf rbdeunr­on the Railway, none of the disadvantages given are of much mtoom etnatk.e "Tahdev aonbtjaegcet” ivoef liso ssteos .improve earnings and not-operate make pIof sstihbe les tae phs igthaekre n swaillesl prreiscuel)t ainnd beitmtperro veeda rnpiunbglsi c (raenlda/o­r tions, then such must be viewed as justified. Financial Structure assetsT.h e Ssienccuer ittihee s riesgsuuleadt orsyh ouplrda ctbiec ef uulsleys coa venrete d cbayp iptarlo pebratsey (investment less depreciation reserve) that should be the standard, im my opinion. the boOtnh etrhseo mDei stitreimb utofi opnl aCnotmp aanmyo,r tiasz atiito nnso w ofs ta$n1d6s0,, 48t3h eraen dis Customer Advances in aid of construction of possibly some $400,000 as of the end of this year. After allowing for a 5 % overhead, which was estimated as not capitalized in plant a$n2d8 0,fo0r0 0 twhae s puosretdi oans noa t deedsutcitmaitoend frtoo mb et her effuinxdeedd ,c aap itfailg urien of setting up the Rate Base in the case before the Commission. the enTdh e ofa pptrhoisx imyaetaer wnoeutl dc abpei:tal structure rounded off as of WWaatteerr DPirsotdruicbtuitoino nC oCmopamnpya ny CorpToortaalte Surplus $ 755855,.000000 1,340,000 60.000 $ 1 ,4 0 0 ,0 0 0