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Mr. Wm. Reinhardt 3 August 7, 1952 good condition, there being only a small crust of rust material in most places with a very slight indication of carbonization in one in­stance where pipe was 25 years old. After in­specting several locations where his data had indicated highly corrosive soil conditions,Mr. Montgomery apparently made up his mind that re­sults indicated by use of the Shepherd’s Resis­tivity Meter were erroneous insofar as the has Vegas area was concerned and announced that he was satisfied, at which time the investigation was discontinued* I told him that we were claim­ing an average service life of 50 years for all cast ironipipe in our appraisal, and after re­turning to the office the following day he is­sued instructions for his forces to change their appraisal figures to provide for a life of 50 years for all cast iron pipe. As a result of change in the life of cast iron pipe due to the above mentioned field in­vestigation and the change in prices mentioned in Section I the total "Depreciated Cost" in the District’s previous appraisal was increased by | 2 l M 4 7 . It will be noted that I have not set up ac­crued depreciation for the Railroad side of the appraisal. The reason for this is that the a-mount of appreciation properly chargeable to , costs as of December, 1950, due to the rise in construction cost index for the period December 31, 1950, to May 1, 1952, would approximately equal the amount of depreciation which would accrue for this same period and would be ©ff-setting. III. Accrued Depreciation Claimed by District for the Period December 31. 1950* to May 1* 1952. • I After taking into consideration the pricing methods used by the District’s engineers in the