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2 As soon as the m aterial is a v a ila b le , Mr, B ertolaoci can be back here Thursday or Frid ay next week end work the balance o f the week, in clu d ­in g Saturday. I t is believed that the d ra ft fig u res as he w ill set them up should be a vaila b le at the d o s e o f Monday, March 12th, or Tuesday, March 13th, If# w ill forward these d ra fts to me in San Fran cisco, and I w ill return them as q u ickly as possible in f in a l form fo r your OK and fo r f in a l reproduction, 5 - R esu lts. At th is tim e, we have prepared some prelim inary estim ates, u t ilis in g the O rig in a l Seat Basis fo r the recorded year 1950 and fo r the fo reca st year o f 1951, These may be sumnarlsed, as follow s t I960 Gross revenue de­fic ie n c y to y ie ld 6|$ return - Present review $100,960 As per in it i a l report w ith 38$ Federal tax 76,328 4 0 Federal tax 94,307 1931 $87,171 T a r iffs submitted were estim ated to y ie ld ap­proxim ately $90,000 a year increase in gross revenue. WORK TO BE DOSE 1 - As soon as basic m aterial a v a ila b le , carry out program as outlined above, A review o f 1950 recorded fig u re s in d icates a very sub stantial increase in many o f the items • In my opinion, I t Is necessary that we know the major reasons fo r such increase In operating co sts, both from the point o f view o f being able to explain at the hearing what occasioned such increase as w ell as to have the b asis fo r mailing the 1951 estimate* In th is resp ect, we have analysed the p a y ro ll and m aterial costs from the monthly reports dealing w ith the operation o f the LA&SBRRCo., and no fu rth er work need be done on that p o in t. However, other Items o f expenses