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EXPLANATORY TEXT Reproduction costs have been estimated by trending original cost in place at date installed to the average price level for the three year period 191+8 to 1950« Price trends are developed by using the ratios agreed to by joint committees consisting of representatives of the Western Carriers and the Bureau of Valuation, Interstate Commerce Commission. These ratios for buildings and appurtenant facilities (including wells, pipe lines, etc.) are developed each year and a joint report issued showing the relation of construction costs for that year for railroads in Western Group territory to reproduction new costs on similar items at the average price level for the five year period 1910 to 1911+. These ratios have not yet been developed for the year 1950 and ratios for this year have been taken to be the same as for I9I+9. To illustrate, the estimated present reproduction cost of a wrought iron pipe line constructed in 191+2 at a cost of $1,061.07 is developed as follows: Ratios for wrought iron pipe lines: Year 191+8 270 Year 191+9 270 Year 1950(est) 270 3 year average 270 Year 191+2 190 Estimated cost of reproduction new; $1 ,061.07 X 270 | $ 1,508 190 Depreciation: Depreciation for the different classes of property from date installed to present date has been computed at the rates allowed by the Bureau of Internal Revenue for income tax purposes. No property was depreciated below 25$. Office of General Manager of Properties Omaha, Nebraska February 11+, 1951