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u boa 3>agelea, June 16, 191*3 Hr. W. H. Hulslser (66 -Hr. •Mr. B1.. wWiipppprreeedhitt,, OOmmaahhaa, / Mr. F ran k S tr o n g , b o s A n g e le s, / Mr. V. B . B rack en , k a V egas, Mr. 3 . B . B e n n e tt, L o s A n g e le s, Mr. 0. L . H a ll, boa A n g e le s, H r. L e e A . MeHamee, % # V egas) faxes • LVLR&eWf eCrer.i nlga tteo ry Deeapra rftimleen t3.703.I, latter of Jane I, re Hernia has Vegas for 19 ^ 3 Is $225,000, aa Increase ef $75*000, over the 19 H2 assessment. there w ill he a hearing on this assessment at the September meeting ef the Sax Commission. | doubt i f we can eeeore any reduction in the proposed inereaae for 19^3 and I doubt i f we can successfully pro-tost an increase in the assessment of this property next year i f one fa proposed, unless we hare revised our method ef aeeounting for the water department operations, end sealed down the rental charges of LA&SL BE Co. for the nee e f Joint fa e ilitie e in aecordsnoe with the request of the Commission. Commission considers that our method of accounting is is * signed to obscure the facts, particularly, with respect to the income of stehnet w aopteerra tdieopnasr tmise nts eepnarda ttehda tf urnolme stsh e tLhVeL &aWe eCoou.n tgiennge rfaolr otpheer awtaitoenrs ,d stpheer faets with respect to the operations of the Company in Beve&a cannot be satisfactorily determined. H ! Co. for the rental ef Joint fae ilitie e are exorbitant and confiscatory of the water department earnings. For example, for the year ended December 31, 19*12, after the deduction of the Joint fa c ility rents amounting to $^328 7.8 3 there remained $7656.07 as operating income» for the year end­ing December 30, 19 H3, the Joint fac ility rent w ill amount to $568**$.25 and unless there is a large increase in gross revenues, the operations of the water department w ill have been conducted at a lees fo r the year 1*&3 and probably w ill net thereafter show a profit. Sash a showing would appear ridiculous to Mr. Sexton uho is thoroughly advised with respect to the operations of other water companies throughout the Stats, and It would be embarrassing to uo in our appearances before the Commission. fhe CofiUBUsies contends with respect/to the Joint fa c ility rent, as stated in vy letter of May the interest rate should be reduced, She tentative assessment of the water system of KfbtV Co. at fhe Commission considers the charges against LVL&W Cc. by LA&SL JliN 3 7 1943