Image
Copyright & Fair-use Agreement
UNLV Special Collections provides copies of materials to facilitate private study, scholarship, or research. Material not in the public domain may be used according to fair use of copyrighted materials as defined by copyright law. Please cite us.
Please note that UNLV may not own the copyright to these materials and cannot provide permission to publish or distribute materials when UNLV is not the copyright holder. The user is solely responsible for determining the copyright status of materials and obtaining permission to use material from the copyright holder and for determining whether any permissions relating to any other rights are necessary for the intended use, and for obtaining all required permissions beyond that allowed by fair use.
Read more about our reproduction and use policy.
I agree.Information
Digital ID
Permalink
Details
More Info
Rights
Digital Provenance
Publisher
Transcription
H CALIFORNIA m m 4 TELEPHONE COKRABX Sitsi Francisco, California V 300 Montf$«»ry Street i;|ft';;: #un* 3 , i§§£ Mr. William Reinhardt ?lee President ? Union Pacific Railroad 6th * Olive Street# toe Angeles, California B e a r B ill? ' ?1 th reference to our telephone conversation of this morning* you spoke of setting up a depletion account fee* your emergency construe tlon of eater facilities at Las Vegas, Nevada. 2 have gone over the records of the o M East Bay 'Mater Company end find that the accounts that they amortised In about 1920 were for preliminary-work on projects that were never completed* and that the work that thoy did during *oj*ld War I, although of an emergency nature* was set up in tier capital accounts and handled just Ilk# any other capital addition. In 1 9 16 , then our Sweetwater Bam In San IH.ego County was damaged by the flood* the Railroad Commission permitted the amortisation of the cost of the emergency repair work over a period of years. Ton osn* therefore* see that the accounting procedure apparently takes ears of extraordinary maintenance or repairs by amortize leg these extraordinary coats over a period of years. However, when It comes to extraordinary capital expenditures* they seem to take another view of the matter and that is that this construe- tlon work should go Into the capital account , so that It will not be lost In any future transactions. If the cost of this emergency construction is material* it might be recovered by a surcharge on the rates provided a proper showing Is made to the Nevada Commission to prove that this surcharge is necessary during the emergency. I think* alee* that if this extraordinary, expenditure can be handled through a “^oeeselty Certificate", it may then be amortised for income tax purposes over a period of say five yeare. ?hie so-called *necessity Certificate* ie under Section 12% of the Internal Revenue Code and I believe your aocounting department would be sufficiently familiar with it to go through the necessary machinery In order to obtain one for the Lao Vegas expenditures. ?e have obtained a number of these Necessity Certificates for extraordinary expenditures made at places like Camp Kaan In Riverside County* for the United States Army.