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V -3- ment respectively, and you may deaire to give consideration to increasing the hook value hy $21,053.95 in order that value o f physical property w ill he reflected in the accounts. Should you desire to further increase the cap ita liza tion o f the L.Y.L. & W. Go., the value o f water could he included and, as given in Table No. 2, year 1929, the to ta l value o f l.V .1 . & W. Co.'s fa c ilit ie s is $308,435.26 which, i f capitalized, would he an increase o f $227,157.21. The feature o f increasing the ca p ita lization is one o f policy and would require A.I*.2. fo r $21,053.95 in the f ir s t instance, and $227,157.21 in the second instance without any actual expenditure. The Auditor is required to make annual report to the Nevada Public Service Commission and o f course the record o f amount in Investment Accounts, together with the record o f expenses and revenues, are furnished that body; therefore, the information contained in Tables Nos. 2 and 3 w ill not agree with that furnished the Commission hy the Auditor. Copy of this le t t e r and tables is furnished Mr. MoNa-mee in order that he may give consideration to the features involved, and should additional data he required we w ill proceed with its preparation promptly. End. co-Mr. P. B. McNamee