upr000274 186

% Railroad Management Expense Ho charge has been made against LVLffl for portion of salaries and expenses of Railroad officers and employes engaged In the management of LVL&W. Incident to operation of Railroad water "producing facilities, the time of Railroad employes engaged therein is charged to such operation, hat no supervisory expense is charged* However, no payroll taxes, vacation allowance or insurance is charged* In addition, considerable Railroad office expense is incurred handling Railroad payrolls, handling and accounting for materials, for which no charge is billed LVLm Co. Ho rental of equipment is charged LVLffl. faxes fhe Railroad Company charges to the Joint RR-LVLfiSf account an investment prorate of the State tax* In addition, the City of Las Vegas levies a tax upon the water-producing lards >1 of some #4800, whioh, however, has not been included in the joint account heretofore* In preparing forecast, consideration should be given to / inclusion of item to cover Federal Income faxes* Office Rental Consideration should be given to charge for office rental* Depreciation Accruals While depreciation has been accrued for years, no adjust­ment 1ms been made in the account incident to replacements* / —8—