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% (Z) per cent increase in all rates, but I note from the schedule contained in the Commission’s order that the increases in rates p r o p o s e d by the Las Vegas Land and Water Company were as follows: Ho*of Percentage Items Increase 1 500 9 100 9 20 to 50 15 Hope 1 40 % deer* The above Includes only items contained in both old and proposed schedules. Will you please advise why the application did not ask for the 10 0 per cent increase in all rates. The large deficit accumulated in prior years, and the probability that the present margin of profit will not be as large for a year’s operation, indicates the necessity for close supervision, with the following in mind: (1 ) Retaining all of the advantage of the recent moderate Increases in rates. (2) Securing further rate increases, if practicable, when they can b© justified for certain classes of service. (3) Endeavoring to reduce the accumulated deficit. When opportunity presents, the Commission should be advised of the substantial deficit accumulated in prior years. Yours very truly, C . R . GRA Y - H . CC - Mr. W. M. Jeffers