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Comparison of Appraisals of D istrict and Union P acific The following tabulation shove the appraisal of th® Union Pacific and our appraisal as of December 31, 1950, not including overhead costs. Union Pacific . District Reproduction Leas Reproduction Loss Cost - Hew Depreciation Cost - Hew Depreciation L.A.&S.L. Production Facilities $1 > 87,932 $1,137,665 $1,442,298 $1,109,748 L.V.L.& W. Distrib­ution Facilities 1.528,166 1.254.982 1.489.557 1,212.230 Total $3,016,098 $2,392,647 $2,931,855 $2,321,978 The Union Pacific appraisal of production facilities is greater than the District appraisal, by $45,634, reproduction cost and $27,917, depreciated cost. Thee© differences are small, being less than 4 percent of th® appraised cost and the differences on individual items are miner. Under distribution facilities the major difference is in pipelines. On reproduction cost th® Union Pacific appraisal exceed® th© District appraisal by $48,076 and under depreciated eost the Union Pacific appraisal exceeds the District appraisal by $38,754. A mjor point of disagreement was on the unit cost of install®! pipe. As a basis for their figures the Union Pacific engineers used their actual construction costs for the distribution systems installed in various sub- ? divisions in Las Vegas and applied these costs to the system as a whole. However, it was pointed out that these costs applied to piecemeal construct­ion by a local contractor whereas if th© entire distribution eystesa were to b© constructed under on® contract, intense competitive bidding on the part of a number cf large pipeline eons tract or a would undoubtedly result in substantially lover unit costs.