AZ vs. CA:04 California Exhibits, Vol. IV; Nos. 151-192

page 11

-11- tures, account additions and betterments, would have been charged to "capital account" instead of to "income account," making a decidedly different showing in the balance sheet. In support of this statement, there is included herein a revised form of your receiver's balance sheet as of December 31st, 1915, showing the results that would have obtained if the property had been operated other than by a receiver. Particular attention is called to the large excess of operating revenues over operating expenses. This, your receiver contends, is ample proof that the California Development Company has become a profitable going concern. Your receiver would also state that the water rentals due on January 1st, 1916, if collected and added to the cash on hand, would provide enough funds to enable the receiver to pay and retire all of the receiver's certificates with accumulated interest at 7%, pay all the costs approved by the court in the final closing of the receivership, and still have a considerable cash balance on hand. Your receiver respectfully desires to express his highest appreciation for the patience shown him by the four judges of the Superior Court who have had this suit upon their calendars and in submitting this report, it is with a consciousness of having given his very best efforts in the management of the property in his charge these efforts resulting, in a measure at least, in the payment to the creditors of their judgments in full. This, your receiver believes, is a result not at all common in the history of receiverships throughout the United States. Respectfully submitted, W. H. Holabird, As Receiver.