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M - July Slat, 1930, W 33-7 Mr, 0. B* Sexton, Chairman, IWbll® Service Commiesion Coreon City, Moved*. of Hsva&a. My dear Mr, Sexton: Referring to our long distance telephone convey— eatioa and my Western Union yesterday advising we have finally received oopy of the transcript of public hearing held la the Court House at Ima Vegas on June 17tht I have carefully read the transcript, particu­larly your questions therein with regard to the method of accounting used fey our Company aa reflected in Annual He-port* to the Commission, and have also gone over this subject with our Qeneral Auditor, If the Lae Vegas L^na and later Company had been organised for the sole purpose of conducting water service operations and had restricted its operations to that pur-pose and had sold its entire capital stools of #50,000 at par for cash, then the cash balance as of December 31st, 193® *ould have been the same ae the theoretical cash bal-v0e, 93S shown in the sheet which you submitted In the hearing, Also, the balance sheet schedule would have been Identical with the balance sheet which you prepared# The tae Vegas hand and later Company, however, was organised to conduct, end has conducted since its out­set, operations other than water service operations, then its capital stool was leaned, 488 shares, par value #48,800 were delivered to the LA&Si, Railroad In payment for 1450 acres of land in l»aa Vegas, and the remaining twelve shares par value #1,800, were sold for cash. The investment in the water service operatlona, as well ae in the other pro­jects in which the Company Is interested, was financed by mean# of borrowed money,