upr000275 17

Los Angeles, October 20, 1949 Mr* L* A« Barms, Asst* to General Manager of Properties. Omaha, Nebraska I Referring to our recent discussion while at Las Vegas, concerning accounting procedure used in connection with replacement of wood stave pipe lines pipe at Las Vegas: with cast iron raents in our files, which while Incomplete, indicate the accounting was handled on a betterment basis, the current cost of wood stave pipe replaced and labor being sharped to Operating Expenses. pxnuonient ox ©ooa i p . or wood stave pipe with cast iron at estimated cost of: Likewise , W, o* 416, approved. March, 1941, authorised replace-* ment of 27,270 ft* of wood stave and wrought iron pipe with cast iron pipe at estimated cost of: these authorisations, the 1940 and 1941 Carry-Over Statements would indicate the final accounting was substantially ns authorised. Further, in explanation of excessive cost of Maintenance during April and November, 1940, supplements at­tached to Form 7 for those months state the increases of wl4,0@4 and <§>10,233 wore due to expense of replacement of Review of various work orders and Auditor’s state Investment Expenses 5354 LF of New Cast Iron Pipe, Cost at current prices of i 3 640 # wood stave pipe retired. Labor 5 860 6 860 fir rs c n ? fo8r 798000' Investment Expenses 27,070 ft* of New Cast Iron Pipe, #35 950 # Labor Cost at current prices of wood stave and wrought iron r s TO5— f gg 700 While we have no record showing the accounting under