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Transcription
Mr. R. M. Sutton July 12, 195^ The second question involved the cost and disposition of numerous small tools, such as shovels, etc., which were owned by the Water Company and which had been charged to operating expense. The District accountants took the position that these were included in the contract and went with the purchase price. I advised our people that the contract was entirely silent on this matter; that this material was owned by the Water Company; that if the District desired to take it over it would be handled outside the contract and covered by a bill collectible against the District. I suggested that a complete inventory be made of all these tools and a price agreed upon, and that they be sold to the District if the District wanted them. Otherwise, I presume they may be of some value to the Railroad, Certainly there is no reason why we should give them to the District. These recommendations of mine are, of course, subject to the approval of Mr. Reinhardt and yourself, but I think they are justified under the terms of the contract. All other accounting matters seem to be the subject of friendly and agreeable negotiations, and apparently at the time of my conference there were no other disputes. E. E, Bennett
