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' IVF A review of the Investment costs as charged will show there are no amounts for - Aect* @01 * Organisation Acct. SOS * Franchises Asets. 351-366 - General Overhead Expenditure* Aoet. 322 * Services Sush items of actual incurred costs probably haws amounted to not less than; Organization General Construction Overheads at 10# Services 4800 at $12 each fetal IShlle under the system of accounting employed these items are charged to operating expenses, yet as a matIter of fact, for the moat part, water revenues faid in by the oonSna^l of the service have not paid for these items. Any analysis will readily show this to be substantially true for the reason{l) that corporate expenses, Including most of the general engineering, legal, financing and general administrative costs associated with construction, have been done by the Onion Pacific with only limit­ed charges to tha Water Company, and (2) a review of the historic­al operations of the Company (fable 1) shows that but limited earnings were realised with deficits in several of the years. Water Rights Th© added worth that a water works property has above the value of Its physical plant, because of a particular and ad­ditional strategic and beneficial value flowing from a favorable water supply, is well recognised. The method of evaluating such added value, and the amount to be attached and to be included in the rate base of a public utility for the purpose of testing rates, is a question upon which commissions and courts differ. In the instant case, however, there can be no question $5,000 80,000 87,600 $142,600