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1 have uiift 1<# m an additive to cover general expense and overhead mainly for the f reasons! allowing {%} In W m t m end 9ajrlorU Appraisal of has Vegao Veter Frepertie#* dated August £, 1049, It le stated on page It voider Section VI, as felloesi "Arbitrarily we used 1© per seat of new cost as overhead to oarer engineering and administrative expense in the construction of such works, This la about the lowest rate applicable and we are inelined to believe a rate-making body or overt conducting a condemnation suit would aaoept showing a figure near lb per cent." iil l» discussing m e appraisal with 0&. Clark, Chlaf Engineer for the hae Vogaa Valley *ater District, at the tine I was is his office relative to cheek of physios! inventory for the later Company he indicated to m that as overhead percentage of IS* would be the one that he would see Is developing M s appraisal figures. Is view of the above, leave the overhead p« isles that we should for use as a bar* it is ay ig§j peresntage at !©$£ gaining featurs is future conferences with eel. ©lark regarding this appraisal. It is ay thought that by adding 1(# for so-eallsd overhead and 3^ for engineering we are still under the 18P udileh the faylor and Taylor report indioatos would be acceptable to a oourt under conditions new being oonoidsrod for tho Water Company. Three per east was added as an arbitrary percent age to tho ©oat Hew including overhead, as shown under Tal to cover coat of planning, design work, drafting expo survey parties ashing preliminary surveys and slaking construction prelects. ril IS, 1031, indiostss for production faeil- Hr. ft&siser is his letter of it is hie thought that probably __ „ __ __ 1ilea (Railroad Company) and 2$ for distribution faoill ties C later Company) would be fair allowances but ssutgagiensetds tthhaety Isfho suulpdp boer tu sfeodr. higher ostiaatos can bo