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i. 0 ILJ c MR. EDELSTEIN STATED THAT IT INCLUDES OPERATION OF THE OFFICES, SENDING OUT OF THE BILLS, EMPLOYMENT OF A CLERK, ETC, COMMISSIONER SIEBERT ASKED WHAT THE STOCKHOLDERS' INVEST— MENT WAS, AND MR. EDELSTEIN STATED THAT $10,000 WAS INVESTED. COMMISSIONER SIEBERT ASKED IF THERE HAS BEEN ANY MORE ISSUANCE OF.STOCK OR INVESTMENT BY THE OWNERS, AND PSR. EDELSTEIN STATED THAT -THERE HAVE BEEN ADVANCES IN THE FORM OF LOANS WHICH ARE BEING REPAID. HE EXPLAINED THAT THE RETAINED EARNINGS PLUS -THE CAPITALIZATION ARE THE EQUITY IN THE COMPANY OVER AND ABOVE ITS LIABILITIES BY.THE FIXED ASSETS AND WORKING CAPITAL ASSETS, AND ACTUALLY THERE IS NO SUCH CASH EMOLUMENT AVAILABLE. COMMISSIONER SIEBERT POINTED OUT THAT THE EQUITY IS NOW SEVEN TIMES THE ORIGINAL INVESTMENT AND QUESTIONED HOW THE FIXED ASSETS OF THE PLANT COULD BE TURNED OVER TO ANOTHER CORPORATION FOR $10,000. MR. EDELSTEIN STATED THAT THE PLANT ITSELF WAS NOT PART OF THE DEVELOPMENT COMPANY. NATHAN TANEN INFORMED THE BOARD THAT THE PLANT WAS ALWAYS PART OF IXORA UTILITIES AND NOBODY WOULD EXPECT TO BUILD A PLANT OF THAT NATURE FOR $10,000. HE STATED THAT THEY INVESTED THEIR a OWN FUNDS, AND HAVE NEVER GOTTEN A RETURN OR TAKEN ANYTHING OUT OF IT. COMMISSIONER SIEBERT FELT THAT THEY'DID RECOUP THEIR INVESTMENT, AND MR. TANEN STATED THAT WAS NOT SO — THAT THEY HAD TO HAVE TO PLANT FOR THE DEVELOPMENT IN ORDER TO SELL THE HOUSES, CHAIRMAN WODTKE INQUIRED AS TO THE AMOUNT OF THE ORIGINAL TAP—IN FEE FOR WATER AND SEWER, AND MR. TANEN STATED THERE WAS NO FEE AT THE BEGINNING. CHAIRMAN WODTKE ASKED IF IT IS NOT NORMAL FOR A'DEVELOPER TO TAKE INTO CONSIDERATION THE PRICE OF THE LAND, THE UTILITIES, THE ROADS, ETC., IN DETERMINING THE COST OF THE HOMES, AND NATHAN TANEN AGREED THAT WOULD BE NORMAL. JUL 191978 146 449