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Water System........ (Kt Los Angeles, Sept. 1, 1921. ? File L.V.3 Mr. W. B. Brackens I am in receipt of your statement of August 26-tit, showing inven­tory of linen and bedding on hand as of that date. In order to adjust our accounts it will be necessary tfaat you estimate the value of this stock by appraising each class separately, according to its present condition, and I am returning herewith your in­ventory for this information.' Beferring to your recent conversation while in Los Angeles regard­ing value of our redwood and wrought iron piping and service connections from an investment viewpoint. As you may recall, or will observe by perusal of the June Bal­ance Sheet, our accounts reflect an investment of $16,509.86 for "Water System" and $1,284.11 "Water Service Connections" against which there has been written off to depreciation, amounts of $16,299.11 and $799.,69 re­spectively. # You will note that while the pipe lines are still in service and from a revenue basis thbir earning power undiminished, nevertheless, our accounts would indicate an investment of only $210.75, which you can readily see is inconsistent. Will you kindly advise whether or not. there is any way of apprais­ing the present life of the water system, whether your files contain any correspondence showing on whose authority the rate of depreciation was established, and any information which may enable us to adjust our accounts to show more correctly the approximate present value of our Las Vegas properties. i