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«* -3- be recalled that Contract Aadit Mo. 2850-A covers sale of elec­tricity as well as water, and pending farther developments it is recommended that old agreement, insofar as famishing of electricity is concerned, be extended to October 1, 1929, by which time franchise and pole line owned by L.7.L. & W. Co. may be sold to Consolidated Company, and farther necessity for agreement between Bailroad Company and 1.7.1. & w. Co. covering sale of electricity will be eliminated. She subjeot of increasing rates covering sale of water, now set forth in Form 14, was also discussed and con­sideration given to various features set forth in my report April 27, and Mr. Smith was fully advised regarding the situ­ation. Mr. Smith stated that the President would be here daring Jane, at which time consideration could be given to policy and procedure that should be followed in order to secure increased revenue for L.V.L. & W. Co. through retail sale of water. He also stated that, in his opinion, the sug­gested arrangement to increase existing flat rates as covered by Form 14 by 225^ for retail distribution of water appeared to be the most logical course to follow, and in this connec­tion it was suggested that, should executive approval be secured, Messrs. Bracken and McHamee arrange to call Informally upon levada Public Utilities Commission to discuss the entire