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The following statement shows details of e&eh of the suggested by Mr. Montgomery. Amounts shown ere as contained mary handed os on July 14th. II Exclusions suggested by Mr, James M. Montgomery 1. All overhead percentages and freight on Additions to Production Facilities subsequent to 12-31-50 The above includes: - (a) Engineering. (b) General expenditures which include organiza­tion expense, general officers and clerks, law department expense, stationery and print­ing, taxes, other expenses - general and other supervisory expense not normally charged directly to the work such as travel time, personal expenses, etc. (c) Interest during construction. (d) Freight on Investment cost of Production Fa­cilities added subsequent to 12-31-50 2. Remove and replace pavements Included in appraisal of Distribution Facilities (a) This item is a proper reproduction item and represents the estimated cost to remove and re­place pavements over existing lines as of date of appraisal regardless of whether actually done at time lines were constructed or by whom paid for. 3. Depreciation for 16 months from Dec. 30, 1950 to May 1, 1952 on District Estimate of Cost Hew of both Production and Distribution Facilities included in appraisal of Dec. 31, 1950 (a) This amount of deduction is claimed on the basis that the costs of labor and material used by Mr. Montgomery in checking our appraisal as of Dec. 31, 1950 were in faot 1952 costs on which depreciation was figured on the basis of age in 1950. It is therefore claimed by Mr. Montgomery that no appreciation Is applicable to District Appraisal costs but that an additional Id months depreciation is proper. During eheGk of 1950, appraisal by District Engineers and Messrs. Hubbard and Maag no indication was given by the -2- adjustments in a sum- 11 204,829 76,564 109,500