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% 1 I Salt Lake C ity , October 2d, 1906. Maintenance o f Las Vegas Water System; Mr.J.Ross Clark, Second V ice-P resid en t, Los A n geles, C a lifo r n ia . Dear S ir ,- I have your l e t t e r o f September 22d, f i l e 59-PP in regard to the maintenance o f the Las Vegas Water System. Of course, the Las Vegas Land & Water Company, by using the San Pedro Company’ s w ater main, saves the cost o f con stru ction, maintenance, d ep recia tio n and taxes upon a ,c e r ta in amount b f such w ater main, th e r e fo r e , i t would seem to me that the Land & Water Company should pay something a ft e r the fo llo w in g b a sis: In te r e s t upon the cost of the San Pedro Company’ s water main through which i t s water is conveyed, or in te r e s t upon a main o f su ita b le s iz e fo r the distance i t saves by using the San Pedro’ s main. Taxes upon th a t p ortion o f the San Pedro’ s main u t iliz e d , and i t s share o f d ep recia tion on San Pedro Company’ s pipe lin e that i t uses. I t s share o f maintenance and rep a irs on San Pedro pipe lin e used, and a lso I think the Land and Water Company should pay fo r the water consumed at Las Vegas at a reasonable ra te even in the form o f a percentage upon i t s gross r e c e ip ts , or some other equ itable b asis. Yours tr u ly (Signed) W.H.Bancroft