Cream butter and sugar; add eggs one at a time, beating after each addition. Add vanilla. Sift dry ingredients together; add alternately with water to creamed mixture. Rinse drained saurkraut well in cold water, drain again. Chop or snip into very small pieces. Add to batter. Divide batter between 2 greased and floured 8-inch pans. Bake in preheated (350 F.) oven for about 30 minutes.