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SUBJECT: Sale of Water Facilities at las Vegas, Nevada LAS VEGAS LAND AND WATER COMPANY Omaha - April 30» 195** BD 1-8-2 Mr. E. E. Bennett - Los Angeles, California: (CC - Mr. Wat. Reinhardt, Los Angeles, Calif,: Mr. L, ft, Maag, Las Vegas, Nevada)^: This refers to Mr. L. R. Haag*a letter March 1?, 1954, file W-26, copy of which was furnished you, regarding question as to how salvage value of pumping facilities re­moved fro® Welle 8 and 10 under L.V.L.A W.Co. Work Order 750 should be treated in sale to the Water District, Under section 9 of sale contract to the Water Dis­trict, we are adding the net charged to Investment Account for all additions and betterments, which includes the credit for the cost at current prices of the property retired on a better­ment basis provided for by Work Order 750, the labor being charged to Operating Expenses. It seems to us therefore, that any salvage material acquired under either betterment or retirement projects could properly be sold to the Water District, since under either pro­ject the salvage value la recorded on the books of the L.V.L.A W.Co. in the ledger aocount *Material and Supplies* and the Water District is receiving credit under provision of section 10 (b) of the sale contract on retirement projects and credit under betterment projects as stated above. It will be appreciated if you will furnish us with your views in the matter. U V. For the Auditor