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R O Y A . W E H E C O N S U L T ! N 3 E N G I N E E R ? N E E L E V E N S U T T E R B U I L D I N G S A N F R A N C I S C O 4 , C A L I F O R N I A March 19, 1951 Mr. Wm. Reinhardt, Vice-President, Oil Development, Union Pacific Railroad Company, 422 West Sixth Street, Los Angeles 14, California Subject: Supplemental Report on Results of Operations, Las Vegas Land and Water Company, and needed increase in water rates. Dear Sir: In accordance with your instructions and those of Mr. E. E. Bennett, I have further studied the operations of the Las Vegas Land and Water Company covering the actual performance for the year 1950 and for the probable results of operations for the current year 1951. This memorandum report is not intended to replace the November 1st report but, in general, merely to supplement it. The two reports should be viewed together in order to properly understand the operations of the Las Vegas Land and Water Company from a financial standpoint. In the case of the analysis for the year 1950, the re­sults in this supplemental study should be considered as replacing the estimates in the previous study. The results of this latest study have been set down in report form and are here attached for your consideration. The material has likewise been set up in a form so that it may be used as an exhibit in your Company’s application for an increase in water rates before the Public Service Commission of Nevada. A review of this study will show that the results are essentially the same as in the initial study, inasmuch as both analyses develop the fact that costs of rendering the water service to your customers have increased much more rapidly than the revenue that such customers pay for the service, with the result that, for the Las Vegas Company, revenues fail to meet the costs and with no amount left for earnings on the capital invested in the water distribution facilities. The following tabulation summarizes the 1951 figures, for ease of reviewing: