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Mr. Sutton #2 Kay 4, 1942 It would appear from the statement for these three years, attached to the bill, that only the amount of water used at Stock Yards and power plant, and sold to PFE and other Ind­ustries was considered in arriving at the low percentage used by HR Co., and no consideration was given the amount passing thru water softener and utilized on locomotives , which runs over 150,000,000 gallons per year. It is noted also that the 1942 charges are based on ‘•proportion of water used January 1 to April 30, 1942*, whereas Article X, page 4 of Contract Audit Mo. 7322 provided such costs shall be calculated on the basis of water used dur­ing the preceding year, which would be 1941. While I appreciate this is merely an accounting pro­cedure between the parent company and its subsidiary, I do feel that 2 should call to your attention the fact that the Public Service Commission, in the last public hearing held here last Fall, inquired thoroughly into the items making up the coat of water, and objected to a charge of 6% for interest on the Railroad investment, suggesting this be reduoed to 4%. I shall be glad to have your reconsider the allocation of charges between the UPRR and LVL&W Co. as shown in attached bill and statement in order to avoid distortion of our accounts by an f18,475 charge in one month’s accounts. Yours very truly. dSclsfon regarding the interest rate to be charged for Railroad Co’s investment? WAlifER ft. ‘§RA(JJCEN Vice President 2018-10-23 2018-10-23 http://cdm17304.contentdm.oclc.org/cdm/ref/collection/p17304coll5/id/19… 19932 19933.pdfpage /p17304coll5/image/19933.pdfpage