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of the facilities from Henderson to Las Vegas and should include the maintenance of the facilities to the Army Air Base north of Las Vegas, the hotels on the strip and the commercial airport subject to Mr. Adamson's second letter of March 23d. Attention is drawn, in the 1949 annual report of the LVL&WCo. to the operating expenses of the water company and that includes administrative expenses etc. for $57,889.00. Mr. Bertolocchl advises that a break-down of the annual payment by the water company to the railroad of around $105,000 includes a maintenance cost of $19,500 in round figures, which added to the $57,889 operating expenses of the water company, makes a total of $77,389, which is the grand total operating expenses of the water company, and the railroad company facilities, without including of course, any figures for taxes etc. Apparently Greeley and Hansen estimate that the difference between $77,389 and $85,600, or $8300.00, will cover the increased maintenance, administration and all other expenses of the operation of the district with the many thousands of additional pipe lines and overhead. This figure could not seem to be correct although it might be shown to be correct if there is any way of estimating the maintenance and operation costs as broken down on Page 84 of the Greeley report. -2-