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COPY Omaha - January 2 6 , 1950 3703.1 Mr. E. E. Bennett -L o s Angeles: (CC - Mr. A. E. Stoddard Mr. Wm. Reinhardt - Los Angeles Mr. T. W. Bockes) Supplementing ay telegram A-492 of December 9, 1949, regarding services of officers of the LVL&WCo. for whom at the present time no amounts are charged, and also for officers of UPRRCo. who devote some part of their time to LVL&WCo. Further study indicates that the expense aggregates #1 2 ,0 6 3 . 0 0 as developed by the following summary compiled from responses made to my mailgram A-510 of Decanter 20, 1949: General administrative, management, engineering, legal and accounting expense for an average year: Departments in which incurred LVL&WCo. LA&SLRRCo. Total Accounting #3,333.00 # 3 1 2 . 0 0 # 4,145.00 Legal 1,300.00 1,300.00 Executive 1 ,1 2 5 . 0 0 1 ,1 2 5 . 0 0 2 ,2 5 0 . 0 0 Engineering 3.00 3.00 Assistant Treasurer 7 0 . 0 0 4m MM 70.00 Manager Industrial Development 1 ,2 6 0 . 0 0 1 ,5 0 0 . 0 0 2 ,7 6 0 . 0 0 Tax 1 0 0 . 0 0 «... 1 0 0 . 0 0 General Manager of Properties 850.00 .. IQP.t.QQ Total 9,040.00 3,037.00 1 2 ,0 8 3 . 0 0 These expenses are equivalent to 6.3# of the gross revenues of #191,000 received in 1 9 4 6 . In my opinion these expenses are reasonable and if you and Mr. Reinhardt concur, I will arrange to add them to the recorded expenses when computing a fair return on the rate base. Preliminary computation of a fair return on the rate base was supplied on statement ttGtt attached to my letter of November 10, 1949 to Mr. Reinhardt. A photostatic copy of this letter is attached. W. H. HULSIZER