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UNION PACIFIC SYSTEM LOS ANGELES & SALT LAKE RAILROAD COMPANY F. H. KNICKERBOCKER. GENERAL MANAGER 523 PACIFIC ELECTRIC BUILDING LOS ANGELES, CAL. June 10, 1937 085-355 Mr. Walter R. Bracken, Vice-President & Agent, Las Vegas Land & Water Co., Las Vegas, Nevada, Dear Sir; Referring to your letter May 34, file W-15, in connection with proposed new agreement covering sale of water by the LA&SL to the LVL&W Co* at Las Vegas: I have carefully considered what you have to say with respect to proposed increase in charge to be made against the Land & Water Company for this water, and would suggest that possibly you do not understand the basis we have in mind for increasing this charge. It is not a fact that the proposed $500 monthly rate was arrived at in con­nection with hastily formed opinions, as stated by you. A very thorough study has been made of the water situation at Las Vegas, and considering the fact that the $>300 per month rate now in effect was determined upon some six or seven years ago, and that a considerable expenditure has since been incurred by the Railroad Company in connection with its water plant at Las Vegas, there seems to be no question but that the |300 per month rate is now an inadequate return upon our investment. As you know, we propose to install, at the expense of the Railroad Company, meters in order to accurately meas­ure water sold to the Land & Water Company, as well as water furnished for other than railroad purposes* in fact, General Attorney McNamee has ruled that this is necessary in order to protect our water rights. Form 30 for these meters is now in course of preparation, and I expect to submit same to our executives very shortly for necessary appropriation. Therefore, inasmuch as the present $300 per month charge has obtained for several years, I am willing that we continue same for a few months longer, until the meters have been installed and in use for a reasonable period, to enable our securing accurate water measurements as a basis for