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E. E. B. 3. August 26, 1952 actual accrued depreciation charged off on the books on these facilities, including the defense plant amortisa­tion, totals 1431,630, leaving a depreciated book value of $1,459,403 as of June 30, 1952. If you were to add to this figure the undepreciated portion of the amor­tised defense plant facilities, you would add approxi­mately $140,000. Furthermore if you were to add to Mr. Hulsizer's figures the present value estimated by L. E. Maag of the portions of the production and distribution system which were never capitalized and are therefore not reflected in HulsizerTs figures, you would add ap­proximately the following amounts: $53,000 for uncapitalized Railroad improvements such as fences, ditches, pavement work, 152,000 for service connections alone owned by Los Angeles & Salt Lake Railroad Company, 13,000 for the Marlin and 14th Street lines, which were not capitalized. If you were also to add the difference between the book cost of 507 acres of land and the present value estimat­ed by Mr. Bates, you would add $253,543* These few ad­justments increase Mr. Hulsizerfs depreciated book val­ue to $2,030,951. Of course this is not a proper figure upon which to base sales value since it represents de­preciated book value of capitalized items of plant,pres­ent value of land and present value of uncapitalized fa­cilities in the production and distribution system plus an adjustment to reflect the true depreciation in the defense plant facilities. This figure still does not represent the present cost of constructing the produc­tion and distribution facilities which are included in the investment accounts of the Railroad and the LVL&W Company. The only valid way to determine the present value for purposes of sale is to determine the reproduction cost of such facilities less proper allowance for ac­crued depreciation and add to that the market value of the land which will be sold. This is what Mr. Maag and Mr. Bates did.