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(1) The investment of the LA&SLRRCo, in land, springs, wells, etc., west of the Las Vegas station grounds yields a gross return of about 10.5 per cent by reason of sale of water to the LVLandWCo. I therefore recommend that this property be left in the railroad company. The facilities were primarily acquired and installed for railroad use, and the railroad water tank, shop, stockyard, passenger station, etc., take water therefrom, except for whatever water may be furnished direct from the so-called railroad well on the shop grounds. (2) I recommend that the LVLandWCo. continue to own and use as at present its water distribution system, for the reason that operations are carried on with a substantial measure of profit, and indications are that this condition will continue. During the last six years there has been a net return on the book value of between 17 and 18 per cent (ex­cluding the operating expense charges for replacement of wood pipe) and while 1942 will certainly show a reduction in the rate of return because of the very extensive enlargement of the distribution \ system which is planned, and the heavy expenditures for wells, etc., there should be at least a 12-§-$ return on book value, while 1945 should show about 17$ again, due to a full year's use of water by new customers. (3) The day may come when we should sell our plant to the city of Las Vegas, but that time has not arrived. Our water rates are reasonable; our present service appears to satisfy, and so long as we 1.