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and Directors of the new Water Dlstriet present, was mpatbetie to our position, and 1 anticipate we i£if|g lave Ultl* difficulty iii obtaining *em inereaae. It will, however, bo necessary that we aapport oar application with sfcaieswnte of cost of LVLim and Railroad water production and distribution facilities and current operating expense*. 40 we are wis at IMt tins to anticipate what value tooslo the IM futolio service Connisslen will consider acceptable, will appreciate if you will develop ooot statements for woo la rate hearUig before the admission end our guidance la connection with Urn proposed acquisition or condensation of our water system toy the has Yogas water District, on the follow­ing toaaia separately for ttoo Railroad Gowpaay owned water- producing faollltioo and hVL&»Ce, owned distribution system* 1 - fM historical ooot of faellitlse, using a retired send replace boola ratlin then betterment, loss depreciation. B * Reproduction ooot of facilities, loo* depredation. 3 • The historical eoot of ©ur water-producing lands and present marlsot value thereof. 1st cash inetsnoc, the value of the Railroad Shop Ground woll and pips linos wood ex­clusively toy the Railroad Company and ito looseea should too exoludod. Win appro elato if you will aloo arrange for statement of expenditures toeing Incurred in tbe maintenance and operation of ttoo wator-ps^oduolng.astd distribution facilities* depredation, taxes, etc. separated as bo tween Railroad and LYLdW operations» together with an eatlmata of federal 1mom taxes. Hw state* went of Railroad expenditures should likewise oxeludo oxpoaao of maintaining and operating faollltles and pipe lines used exclusively for iwllread operations. Ms. Reinhardt