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charges are prorated to the water operation on the general expense b&ais, i.e. in 1949 and 7&% in prior years. The charge to this account for 1949 was in the amount of #999.61. Joint Facility Rents: Under this item is charged the wholesale cost of water purchased by the Las Vegas Land and Water Company from the Union Pacific Railroad, lessee and operator of the water production S properties owned by the Los Angeles k mit Lake Eailroad Company. The method of calculating monthly bills for joint facility rents is set forth in the agreement between Los Angeles & Salt Lake Eailroad Company and Las Vegas Land aid Water Company, entered into March 30, 1929» more than three years prior to the unification of the Union Pacific System. This agreement states that- ’’the cost is made up by adding together all expense in connection with maintaining and operat­ing railroad-owned facilities used In common by User and Eailroad Company, plus the carrying charges on these facilities, consist­ing of Interest, taxes and depreciation; ***#£# as**###**. The division in coat between the railroad and the Water Utility is based' upon the relative quantity of water used by each party. The following figures covering recent years, show the Importance of the cost of wholesale water as an item of expense in the operation of the Water Utility in Las Vegas: