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#r# Knickerbocker ii %y 10, 193£. 3hile w© do not have © complete record of accruals of valuation and iopreolation in different erlods, wo find on Jas* uary 1, 1924 the book value of our water eyetaea'waa $14,609*86 • during that year, under fork urddr If*18, .~© renewed and enlarged about half of our ©yetorn la Clark*©la© Yoga® Towaelte, total eoet 120,542*76, fa| charged Ittveatmea* Account© with $3,540.85, the balaw»- of expends,tar© being charged'to 0 *!£?*, so on ^©comber 31, 1924, valuation was shewn a© #£0,060*74. , Accra© 1 depreciation at the sea© time was $16,£74*71 which amount had been accrued prior to December 1920. The charge of <*17,001.8? to .,.•;* woe based on Auditor*e letter of lloveiabor 15, 19£3, file a-301* water lines In Cleric* e til; Yeooe Towneit© end a charge was made to *1. under Sark Order V?-31 of #17,698*28. On ^©comber 31, 1986, General Balance Sheet ©how© © ledger value to the water ' ®yete~- of $80,050*74* ? It eeeae to me that it 1« ©elf ©vi.tent that after the e. ©nditar© of $38,141*08 renewing and enlarging the old water system, that/ the book win© of the eyrUm:at' the oloe-e of this work should.represent the actual win© instead of ? the amount obosa on the General Balance sheet* ^heee account® should be capitalised for two reason©; ll) Thin Company 1® entitled to earn a profit on all iav®gta©ots, aad .unless those amount© nr© properly shown in the investment ao* counts, it is practically impossible to Justify m earning on it* IS). The full value of the roperty should1 he established for the purpose of oooroia- fund© for retirement. - Otherwise when the 3*oll book value hoc boon retired, the amount accrued for retire* meat Mil not be sufficient to cover the ooet of replacement* matter to Hr* Barry, in order that he any take the necessary steps to correct our General Account©* 1§ In 1986 w© renewed practically all of the rest of the If you concur in my view©, will you please refer the lour© truly, oo - Hr*. J* I>* Haugh*