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r i 4: Suggested topics for Ur. Wehc's testimony. Los Angeles, March 27, 1951 80-5 general Matters Original cost and present value figures in Report based upon data supplied by Mr. Hulsizer and his Valuation Engineer, Ur. Hubbard (it is my present thought that Ur. Hubbard should put in evidence the detail of the original cost and present value figures). Tour familiarity with the physical property. It appears to na that before discussing the Beport in detail, it would be helpful if you briefly described its various parts. Explain the corporate setup and emphasize that only the water utility operations of LVL&WCo. are Involved; that it has extensive operations in California from whioh it receives income from rental and sales of land, and some oil income. Tour study revealed that billing of Railroad under old contract did not adequately compensate Railroad. Introduce new contract. Discuss the necessity of preparing a supplemental report and summarize briefly what it contains. Refer to growth of Company as shown by material in original Report and introduce exhibit showing increases in fixed capital in both production and distribution ocmpany by year since 1939* Emphasize that expansion of utility facilities has kept pace with the expansion of the City of Las Vegas. Refer to map in Report and explain the reason for the reduction in acreage of water-bearing land used or useful. Table I - Page 17 Discuss growth of Company as reflected by this table. Point out unusual maintenance expense in 1940 and 1941 resulting in deficits and Introduce separate exhibit showing that the better­ment Jobs which were revised to arrive at original cost occurred in these years. Refer to amortisation of defense projeots in the years 1942 to 1945 and point out net deficit in those years.