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^ C O P Y G0146U OMA 9 51 OP Deo 9 1949 9 PM 6 57 EEB LA PHONE CONVERSATION CONNECTION PROPOSED MANAGEMENT CONTRACT BETWEEN UP AND LVL&WCO THE PEE TO BE CHARGED, AS I UNDERSTAND IT SHOULD COVER THE SERVICES OF OFFICERS OF THE LVL&WCO FOR WHOM AT THE PRESENT TIME NO AMOUNTS ARE CHARGED AND ALSO FOR OFFICERS OF THE UPRRCO WHO DEVOTE SOME PART OF THEIR TIME TO LVL&W COULD IN MY OPINION BE LABELED AS A FEE FOR GENERAL ADMINISTRATIVE AND MANAGEMENT SERVICES AS WELL AS GENERAL ENGINEERING LEGAL AND ACCOUNTING SERVICES THERE ARE SEVERAL WAYS TO ARRIVE AT THE AMOUNT AND I WILL GIVE THIS SOME FURTHER CONSIDERATION ONE METHOD WOULD BE TO APPLY 1 1/2 PCT TO THE TOTAL INVESTMENT OF THE LVL&WCO AND THE RAILROAD COMPANY ASSIGNABLE TO WATER FACILITIES WHICH WOULD BE ABOUT 1 1 / 2 PCT OF $1,473,000 OR $22,095 ANOTHER METHOD WOULD BE TO APPLY A FLAT PERCENTAGE TO THE GROSS REVENUES THE GROSS REVENUES FOR THE YEAR 1948 AMOUNTED TO $191,000 AND 7 1/2 PCT ON THESE REVENUES WOULD AMOUNT TO $14,325 FROM A QUICK ANALYSIS OF THE TIME SPENT BY ACCOUNTING ENGINEERING AND TREASURY DEPARTMENTS HERE IN OMAHA AS WELL AS OUR OWN DEPARTMENT AND MAKING SOME ALLOWANCE FOR MR REINHARDT* S OFFICE I AM OF THE OPINION THAT EITHER ONE OF THESE AMOUNTS WOULD NOT BE EXCESSIVE IN TALKING TO THE VICE PRES. OF THE OMAHA PUBLIC POWER DIST I ASCERTAINED THAT EBASCO MADE ITS CHARGES FOR SUCH SERVICES End S 1