upr000062 217

'T.'/W m General and adalnia trat ive expense# nisti, in the I suwtery reflect the following* % 1950 WWt*WMi|sw6P Item 1049 Recorded Estimated Incurred at h*V* #23,870 $85,600 #86,600 allocated ^ - 9,046 - SalOO $95,870 #54,646 155,700 Further analysis of these figures will be available with additional reclassification for purpose of the exhibit* isepreelatien expense is predicated en the lives and rates in use. in m? minim such rates could be increased* Taxes, other than income, for 1950 afloat * income taxes hare been cobs puted as If the as well as the LA&&LERCO* filed separate tax returns* However, the two have been cornsIderfd ae one, insofar aa the amount of the taxable net ineeae la involved, i# e* the classification for corporations In excess of 150,000 annual net income has been used* % a# doing, it makes no difference which of the two corporation* are treated separately, as on page 8, or if the operations are isaergod* This would appear proper, as a difference in net earnings should not two permitted for .rate purposes, merely by the devise of the as- sumption as to corporate identity where the physical' properties are as one and under Oowhen e^twei« . the LVXJsWCo* and the LAAStFECo* are entitled to be treated &e a separate corporation for Income tax pmpoaes* The customer# . of the feVLiCo* should not fee burdened, nor should they profife through any consolidated tax return of the holding company, 1# e*