upr000062 269

% 3* A review of the invcstmsnt costs as ©barged will show there are m mmnt» far — Acet* Ml * Organisation Acct* MS * Prsnehiaes Aceta. 361*336 * 8«n«p&I Overhead Expenditures Acet. $82 m services aeeh items of actual incurred costs probably have amounted to not less them ^hilc under the system of accounting employed these ite^i are charged to operating expense®, yet as a matter of fast# tbs service have not paid for these items. Any analysis wUl readily show this to be substantially true for the reasoned) that eorporate expenses, including most of tbs general engineering,• legal, financing and general administrative seats assoolated with construct loxv have been done by the Onion Pacific with only limit* ed charges to the Water company, and (8) a review of the historic* al operations of the Company (Table I) shove that but limited earnings were realised with deficits in several of the years. Hater Rights The added worth that a water works property has above the value of its physical plant, because of a particular and ad* ditlonal strategic and beneficial value flowing from a favorable water supply, is well recognised. The method of evaluating sash added value, and the amount to be attached and to be included in the rate base of a public utility for the purpose of testing rates, is a question upon which commissions and courts differ* Organisation General Construction #6,000 80,000 87,600 •MMMemMHINMMlKMM* Overheads at 1($ Services 4800 at #18 each Total #142,600 In the instant case, however, there can be no question