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Mr* Wffl* R e in h a r d t: L os A n g e le s ~ D eo. 12, 1949 F i l e : 80 I n c o n n e c tio n w ith th e q u e s tio n o f management f e e o f th e Las V egas Land & W ater Company, I m en tion ed t h i s s u b je c t t o Mr. H u le iz e r o v e r th e te le p h o n e and a sk ed him t o d is c u s s i t w ith M r. B arnes and l e t me have any th o u gh ts he m igh t h a ve and a l s o , t o a d v is e me w h eth er th e p r e s e n t p e r c e n ta g e s ch a rg ed by th e r a i l r o a d a g a in s t she w a te r company had e v e r b e en b a sed on any s e r v ic e s re n d e r e d b y th e o f f i c e r s o f th e r a i l r o a d company. I e n c lo s e a oopy o f h is Ar-492 o f December 9 th f o r y o u r in fo r m a t io n . As 1 t o l d you , i n d is c u s s in g t h i s s u b je c t o f management f e e w ith Mr. Wehe, he s t a t e d t h a t w it h r e s p e c t t o th e l a r g e r com panies w hich ch a rg e a manage­ment fee", th e b a s ic u sed t o be aroftnd o f th e g r o s s e a r n in g s o f th e managed company b u t t h a t r e c e n t l y , th e v a r io u s p u b lic s e r v ic e com m issions had been r e d u c in g th o s e f e e s t o around L -l/ 2 # and i n a r e c e n t AT&T h e a r in g , th e AT&T v o l u n t a r i l y red u ced th e r a t e t o ! > . T h is , o f c o u rs e , i s to o sm a ll f o r o u r company f o r ou r s it u a t io n b u t i t seems t o me I f we w ould use a b a s is o f somewhere i n th e n e igh b o rh o o d o f 3# o r r o u g h ly $500.00 a month, we m igh t be a b le t o J u s t if y i t . E. E . B en n ett