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nUt tr- pw W M . R. DEC 3 0 1949 P Omaha - Dee ember 21, 19**9 3703.1 Mr. E. E. Bennett - Los Angeles (oo * Mr. Wm. Reinhardt - Los Angeles) This will acknowledge receipt of your letter of December 1**, 19^9. your file 80, in regard to proposed management fee which Union Pacific should be entitled to charge the Lae Vegas Land and Water Company. Since my wire A-492 to you of December 9 # 1 have secured some additional information from the Vice President of the Omaha Public Power District in regard to the fees formerly charged by EBASCO to various power companies, and the following tabulation sets forth this information: 1.62 of first #250.000 of gross revenue 1.5* ooff stehciorndd ** •8 *8 88 1.32 of fourth 8 8 * 8 In connection with construction projects, the EBASCO charged the following construction fees: 52 on the first #200,000.00 1*2 on all costs above'#200,000,00, and Engineering at cost, plus 252. As I understand it, the Engineering charge oovered comolete cost of design and the construction fee was for the engineering supervision in the field of construction projects. Undoubtedly UP engineers furnish considerable time in connection with both design and engineering and I doubt if adequate charges for these features are ever made to the LVL&WCo. X am of the opinion that #500 per month is an in­aandedq ueamtpel oycehsa rgaen d toa lscoo vLeVrL &tWhe otfifmiec erasn dw heox pedon sewso rokf f UoPr otfhfait cers company but make no charge for their time. As a matter of fact, in talking with Lou White here in Omaha, our Auditor of General and Station Accounts, he has one man at a salary of #300 per month who devotes his entire time to the accoun­ting in connection with the water services furnished by the LVL&WGo. We have employes in this office who regularly spend some time in furnishing ledger values and compiling cost statements, and I have no doubt that Mr. Perkins’ office and other departments have men who actually handle designing W . H. J. DEC 29 1249