upr000061 231

RE RENTAL OE RAILROAD FACILITIES On testimony given and exhibits introduced, the value of the railroad facilities used by both companies is $177,147.88. Con­struction of these facilities began in 1905 and the last was a 24 inch cast iron pipe laid in 1929. Inasmuch as the railroad has an item of expense labeled ’’Reserve for Replacement" for the year 1930,, we are of the opinion that a reserve for this item has been laid away annually. This item calls for 4%. Yfe are of the opinion that almost all water facilities have a useful life of fifty years, which reduces this item to 2%. Taking this amount as a basis for retirement reserve we find that since 1906, to and including 1950, that $12,007.62 has been retimed, leaving a present day valuation of $165,140.26. Using this amount as a fair value of all railroad facilities we find that $14,455.73 per year, or $1,204.65 per month, to bo a fair rental which is shown as follows: Water used during 19.50: Railway Company, including Pacific Freight Express 283-,325-825 gal.-32.75$ Las Vegas Land & Water Company 581;867;800 " 67,25% Total 865,193,625 gal.lOO.'OC'f Charges incurred during 1930: Interest at 6% on value of $165,140.26 $9^908.41 Reserve for Replacement at 2% on $177,147.88 3,542.95 Insurance -26.00 Taxes 3;100.09 Maintenance & Operating Expense 4;918.06 Total "'$21,495.5.1 RE VALUE 0E WATER RIGHTS Measurement of all water flowing from all sources was measured February 10, 1931, and was found to be 9,698 cubic feet per second, or 6,280,000 gallons per day. Through the State Engineer’s Office the railroad company has appropriated 2.5 cubic