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The reduction in annual depreciation charges corresponds to the approximate rates used in setting depreciation up for the distributing company and ere the rates used by Omaha in tc^puting the accrued depreciation. la ay opinion the 1.3 and l.<# rates are too low. Kates predicated on live® ranging from 50 to 75 years will be sufficiently low in ay opinion. However, if the rates are increased, the deduction for depreciation will be increased. It is under that the inclusion of an ad valorem tax on the water production properties will be challenged inasmuch as there Is no spseial assessment made against these properties and no taxes paid as such. There is no question but what eueh taxes are proper to elalra, but if such results in additional tax payments by this Company, there probably would be no advantage in pressing that position. A property tax of #4800 is paid the City of Lae Vegas, which Is understood to arise from an assessments on the 1830 acres of lend. At the present tine this payment is not charged for in the water billing to the LVL3£$Ce. In the estimates made, this amount has been reduced in the relation of 400 acres to the 1830 acres, or to #1ML, and included in the coat of water. The other items probably need no comment. Other Expensess The item of #86,000 for operation and maintenance likely does not need to be discussed at this time. It is planned to have a break-down of this figure for support.