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Cfeaaha August 11, 1950. 3703*1 Mr. k, £. Bennett - Los Angeles? 00 - Hr. A. £. S to d d a r d ,/ WM R Mr I n ' ^ a o o S i « t ^ " **g Aagslss AUG 17 Sflf Referring to your letter of Jane 2®, 1950. file 80-5, enclosing rough draft of report prepared fey Mr. Wehe on resalts of operation of the ’water system at las Vegas, and draft of pro­p s * ^ new agreement between the Railroad Company company? and the Water $lth. respect to Mr, wehe*s report, 1 mu attaching a memorandum listing my views and suggestions. While your inten­tion is nailed to several apparent errors as noted, we have not made a mechanical check of all the computations* the main points at issae as X see it are (1 ) | the question of reducing rental base by the estimated depreciation neorood thereon in computing interest charged the Water Company for use of Railroad Company*s facilities as outlined in my corsiente on attached memo regarding page 2? of the report, item 6(0), and (2) - reduction in rate base by the estimated tmrefxmdablo portion of construction advanses subject to complete partial refund* as orfe fetrher erde ptoor to.n the attached memo in my comments regarding page "ffi fe^Hs I believe that, for our information, -#© should have the results of operations as sst out in Mr. wshe's report, in­cluding the adjustments noted in (1) and (2) above, the report, In ®tyha to pihnaiiolsn*, should not be presented to the Utilities Commission on road and WaWtitehr rCoemsppaencyt? to the proposed new agreement between Rail­Section b (0). An item of "vacation allowanoe" should be added.