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on a mile-unit basis. The local Assessor determines the assessment on the property of the railroad other than that used for operative purposes. The valuation of the Tax Commission includes that property necessarily devoted to railroad water supply purposes, and no part of such property is being or has been assessed by the local assessor. The actual taxes paid on this property are not determinable. It is my thought that as soon as these matters come to Mr. Sexton’s attention he may conclude that the Railroad valuation determined by the Tax Commission properly includes only that property used directly in the operation of the rail­road, and, that since it is the duty of the local assessor to assess those portions of the railroad property not directly used for operations, a local assessment should be applied to that portion of the water facilities which is in excess of the reasonable needs of the railroad, measuring the railroad re­quirements by the fact that £($ of the water produced is sup­plied to LVL&W through facilities probably constructed by the Railroad for that service. If this property was assessed in the same propor­tion to book cost as- the LVL&W water utility property is assess­ed, the resulting taxes would amount to about 1 13»000 which should represent additional taxes. For the reasons above stated, I am hesitant about further discussion of the LVL&W water utility property assess­ment with the Tax Commission or f cc-Wr. E. £. Bennett Mr. L.A .McMamee -Mr. Bracken