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upr000062 165

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upr000062-165
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    /m Mr. E. E. Bennett 2. Section 4 (m). The item of "Federal Income taxes" should in my opinion be set out as a separate item of expense. This section should provide for payment of on the agreed value of the facilities ad­justed from time to time for additions and betterments, retirements, etc. but without any reduction for accrued depre­ciation. As stated in ny comments in the attached memo vrith re­spect to page 27 of the report, item 6(c) on operations of the Water Oompany, it is our general policy and practice to make no reduction in rental bases as specified in leases for depreciation accruals and unless and until such policy is changed I do believe any exception should be made in this instance. With exception of the items referred to above and the matters dealt with in the attached memo, I think Mr. Wehe has done a very good Job in preparing this report-, which represents a com­prehensive and exhaustive analysis of the history and operations of the two companies. W. H. HUIjS^ZER End