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Mr. Wm. Reinhardt: 80-5 Los Angeles, May 17> 1950 Please refer to your letter of May 16, 1950, your file 1-7334, concerning letter of April 26th from Mr. Sutton relating to amount included in Mr. Wehe^ bill covering reimbursement to him for contributions of U. S. Unemployment Tax and California state Unemployment Tax upon the salary paid R. L. Bertolacei. Mr. Bertolacei is not on the regular staff of Mr. Wehe although he works for him on special cases from time to time. He has done no work for Mr. Wehe this year prior to the LVI&WCo. job and he may not be on Mr. Wehe’s staff during 1950 after the conclusion of the LVL&WCo. job. I had no specific understanding with Mr. Wehe concerning Mr. Bertolaceifexcept that Union pacific would reimburse him for the full amount of any expense he was put to in the employment of Mr. Bertolacei. We thought that it would be desirable to have him on Mr. Wehe*s payroll rather than on the payroll of LVL&WCo. for this temporary work. Under these circumstances, it is my opinion that the Water Company should pay the full amount of such taxes on the first #3,000.00 paid as reimbursement to Mr. Wehe for wages paid to Mr. Bertolacei while performing services for the Company. It is very unlikely that Mr. Wehe will have paid Mr. Bertolacei wages in excess of this sum during the year. ^ I am returning herewith letter dated April 26, 1950 from R. M. Sutton to you regarding the ab - Enel.