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upr000062-169
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http://n2t.net/ark:/62930/d1zw1bt75
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Water Service Rates - new schedule
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Page 8 6 - Cont * d. % *£&£L3Zl gf£e,.l8,> Page 39. fully outlined in ray letter of April 28, 1950 to • Reinhardt, The recent decision of the Sunreme Court in the Brown Shoe case has, I believe, a direct bearing on this problem of handling these advances and since they are made by sub-dividers who make a profit out of the deal, I am of the opinion they do not cone under the classification of "customers" as defined in the Detroit Edison Case. In this connection also think the word 11 Donations" should be deleted when referring* to advances. Is it not the intention to reduce the Plate Base by that portion of advances that will not%be refunded, instead of the portion that will be refunded as stated in this second paragraph? Last part of paragraph "plus working capital" should be changed to "plus working cash and material and supplies". Last of 2nd paragraph shows net earning (1942 to 1945) in the red to the extent of £>65,628." This should be $55?628, based on Table 1, page loa. "Customer Advances in Aid of Construction". I believe the first word in this heeding "Customer" should be eliminated, since as stated on page 39, these advances have been made almost entirely by real estate sub-dividers. Sheet I of 6. The paragraph following the tabulation states that the initial advance collected Includes for super­vision and overhead and, while subject to refund, is not capiialir.cd. This, however, does not apply in all cases. The statement furnished Mr. Reinhardt with Mr. White's letter of April 4, 1950, lists 4l contracts with a total of $228,310.04 subject to refund. Mr. White has fur­nished me an analysis of this amount which shows that of the 4i contracts the deposits In the case of about half of then did not include this lOi additive, of which the following are a few examples: Contract 10427 (¥.0. " 10470 (W.O. " 10488 (¥.0. 57VI) 608) 614) charged to investment $12,080.00 " to | 17,562.^0 " " " 60,030.63 The above amounts charged to investment are also the amounts shown on statement above referred to in oolumn headed "Total amount subject to refund".