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Mr. 1. R. Bracken: Los Angeles, September 12, 1928. 085-355 You are, of course, entirely familiar with study that has been made for some time past covering sale by the Railroad Company to the Las Vegas Land and Water Company, of water and electricity, as covered by contract audit No. 28 50-A. I enclose herewith copy of Mr. Adamson’s memorandum September 10th, summarizing result of study covering the water feature, which I should like to have you consider and advise whether you concur. It may be that we will conclude to withhold any definite action covering the water feature, until the electric light and power rate situation, which we discussed here on August 21st, has been determined upon by the Nevada Public Utilities Commission. I do not know why the electric energy and water features were coupled up and covered by one agreement when the arrangement was made between the two companies some years ago, but it seems to me that when the electric light and power rates have been decided upon finally, we should divorce these two features and cover each by a separate contract. Do you not agree? You will observe from last paragraph, page 4, of Mr. Adamson’s letter, that his study has developed average cost of producing water at Las Vegas amounts to f0.0308 per thousand gallons, compared with estimate furnished about a year ago, of f0.0058, which charge will necessarily have to be increased somewhat when concrete reservoir is constructed, and additional 24 inch cast iron pipe line installed next year. You will recall that the purpose of installing meters in Las Vegas several months ago, was to enable us to obtain definite check on water sold to the Land and Water Company, and now that this information is available, as listed on page two of Mr. Adamson’s letter, the question before us now is what action should be taken in respect to increasing existing water rate, as between the Railroad Company and the Land and Water Company on the one hand, and what, if any, change should be made in flat rates charged by the Land and Water Company to consumers, on the other. Will you not, therefore, kindly give this entire water situation careful study, and write me fully of your