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v should be gilts o oasiderati on • Is his sstiiats of opcrat* lag expenses for the year 1950 Mr* We he has attempted to include all possible operating expenses incurred by the Bailroad but he may not hare included sufficient to take oar© of all of the items referred to in Section 4 by reason of his lack of knowledge of the elements included in the Railroad accounts* It seems to me that before the later Company presents its application for increase to the Com­mission, e contract of this nature should be decided upon and perhaps executed* The rough draft which I have prepared does not In­clude provision whereby the Railroad Company charges ths Water Company for administrative, legal and engineering services furnished directly t© the Water Company in connec­tion with its distribution system and such a provision should be inserted in ths final contract* 1* 1. Bennett Incls*