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Los Angelss, April 3, 1929 768.4 Mr. F. H. Knickerbocker: Referring to Mr. Armstrong^ letter to you of March 28th, file 9215, in which he quotes from Superintendent Cunningham concerning water service to industrial leases at Las Vegas, particularly with reference to fire protection: Industries locating upon our property and invest­ing a considerable sum in buildings, equipment and stock must arrange for fire insurance. Without water adequate for fire fighting purposes the insurance rate would be high and probably prohibitive. The local water company does not fur­nish fire lines along the streets abutting Units Nos. 2 and 3 so that I think it is vsp to the Railroad Company to make some equitable arrangement under which convenient and adequate water supply for fire fighting purposes can be made available. We have studied the practices of City Water De- partmentsand utility companies but the circumstances at Las Vegas are such that these practices are not applicable. Generally, the municipal water department installs risers and fire plugs in locations as determined by the Fire Department. The cost of installation of plugs is not assessed against the property protected and the cost of water used in fighting fires is not charged against the property upon which the fire occurs. In each case, the costs are paid from taxes and thereby become a general municipal expense. Private water companies around Los Angeles furnish risers and plugs in locations as determined by municipal authorities and are paid a monthly rental for each plug. Water used for fighting fires is not separately paid for. The rental for plugs is assumed to cover all costs. Obviously the situation faced by the Railroad Company at Las Vegas in furnishing surplus water to a few parties does not parallel wither of the above cases. The num­ber of users and rates to be charged for domestic water are not suoh that a profit might be expected to aoorue, which pro­fit could be used to cover the occasional cost of furnishing fire fighting water. I think, therefore, we must disregard the practice of water companies and make an arrangement of our own. To make a single connection for fire fighting and domestic purposes would mean a 4" line equipped with a 4* meter