upr000269 322

Mr* 9 . R. la s S t a r s i r : Omaha, K ebr„, July 10,1939 Mo* A-310-34 R e fe rrin g to your l e t t e r o f June 19, 1939, f i l e V 33-7: I f the Lee Vegas land and W ater Company had teen organ ised f o r the e o le purpose o f conducting e a te r se rv ic e op eration s and had r e s t r ic t e d i t s op eration s to that purpose and had s o ld i t s e n tire c a p it a l stock o f $80*000 a t par f o r cash* then the cash halanoe as o f December 31* 1938 would have been the same as the th e o r e t ic a l cash balan ce o f §94,938 oomplled by Chairman Section o f the Nevada P u b lic S e rv ic e Commission* A ls o * the balance sheet schedule would have been id e n tic a l w ith the balan ce sheet statement prepared by Mr*Sexton* L.V „L.& $.C o*, however, was organ ised to eonduet* end has conducted sin ce i t s o u ts e t, o p eration s oth er than w ater se rv ic e op* o ra tio n s * When i t s c a p it a l stock was is su e d , 488 sh a res, p ar valu e §48,800, were d e liv e re d to the L .A .& S.L.R .R .C o* in payment f o r 1480 a c re s o f la n d in Las V egas, and the remaining tw elve sh a re s, p ar v a lu e $1,300, were so ld f o r cash* The investment in th e w ater s e r * § v ic e o p e ra tio n s, as w e ll a s in the o th e r p ro je c t s In which the Com­pany i s in te re s te d , was financed by means o f borrowed money* The cash o f the L*V.L*a&».Co* has not been earmarked by de­partments * A l l e o lla c tio n s from every source have been Included in a s in g le cash fund from which a l l disbursements have been made* It i s not my understanding th at any bu sin e ss o p e ra tin g more than one d e - w, if ,i, uuL 2i 1939