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41 received for this purpose prior to 1945 were very small. In the last few years, with the rapid expansion and opening of new subdivisions, the advances have been very considerable. The unrefunded amounts as of the end of the years shown are: 1944 $ 5,390.42 45 22,637.75 46 48,160.50 47 83,895.39 48 107,019.17 49 208,147.97 Analysis of this account shows that many of the initial ad­vances collected include, besides the estimated cost of installation, an additional 10$ for supervision and overhead. The 10$, while sub­ject to refund, is not capitalized. The effective rate of all super­vision and overhead charges included in the total unrefunded advances as of the end of the years 1948, 1949 and 1950 has been estimated at 5$. This means that the actual plant in service, as represented by the $208,147.97 as of December 31,' 1949, was less by some 5$, i. e. $208,147.97, is equal to 105$ and 100$ is equal to $198,200. A study made indicated that but approximately 55$ of the advance would be returned in a 10-year period at 50$ of the revenues currently being received. It must be concluded that any advance that does not pay out within a period of 10 years at the very liberal refund of one-half of each year’s revenue, is an uneconomic extension, and the subdivider and/or customer should make a permanent contribution towards the main extension’s support to that extent. To be conservative, and giving weight to the pending increase in water rates, it is concluded that 70$ of the advances will be re­funded and but 30$ forfeited. This means that 70$ of the unrefunded advances, as