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13 IV. FINANCIAL STATEMENT On the following pages are set up a Balance Sheet and Income Statement as of December 31, 1949 and also a statement as to the Profit and Loss Account for the year 1949 for the Water Department of the Las Vegas Land and Water Company. These statements are in accordance with the annual report filed with the Public Service Commission of Nevada for the year 1949. A review of these financial statements will show that certain items normally included are omitted. This comes about from the fact that the Las Vegas Land and Water Company is engaged in activities other than water and the miscellaneous operations in Las Vegas, and separate financial statements for each of the different functions have not been prepared. For instance, on page 7 of the report to the Commission, there is shown that the company as a whole has issued and has outstanding 500 shares of $100 par value common stock. This is owned by the Los Angeles & Salt Ijake Railroad Company and no assignment has been made to the water operations. No dividends have been nor are currently paid on this stock. It may also be observed that necessary capital loans for V plant expansion, replacement, and other operating requirements are % secured from the Union Pacific Railroad from borrowings through an open account which is available to the Water Utility. The Balance Sheet shows that loans stood at $161,539.28 as of the end of 1949. No interest is currently paid on such loans. The last payment was for the calendar year 1942. Prior to 1943, the Railroad Company absorbed * the Water Utility's profits or deficits. jL