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ment respectively, and you may desire to give consideration to increasing the hook value of #21,053.95 in order that value of physical property will he reflected in the accounts. Should you desire to further increase the capitalization of the I.V.L. & Co., the value of water could he included and, as given in Table ITo. 2, year 1929, the total value of L.V.1.& W.Co’s ? facilities is #308,435.26 which, if capitalized, would he an increase of #227,157.21. The feature of increasing the capital­ization is one of policy .and would require A.F.E. for $21,053*95 in the first instance, and $227,157.21 in the second instance without any actual expenditure* The Auditor is required to make annual report to the Levada Public Service Commission and of course the record of amount in Investment Accounts, together with the record of ex­penses and revenues, are furnished that body; therefore, the information contained in Tables los. 2 and 3 will not agree with that furnished the Commission by the Auditor. Copy of this letter and tables is furnished Hr. McUa- mee in order that he may give consideration to the features in­volved, and should additional data be required we will proceed with its preparation promptly. ° E. L. Adamson cc - Mr. FvB.McL’amee