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* V IAS VBCAS WATER SUPPLY RECOMMENDATIONS (1) The Investment ©f the LA&SLRRCo. in land, springs, veils, ete., vest of the Las Vegas station grounds yields a gross return of about 10.5 per cent by reason of sale of vater to the LVLandWCo. I therefore recommend that this property be left in the railroad company. The facilities vere primarily acquired and Installed for railroad use, and the railroad vater tank, shop, stockyard, passenger station, etc., take vater therefrom, except for vhatever vater may be furnished direct from the so-called railroad veil on the shop grounds. (2) I recommend that the LVLandWCo. continue to own and use as at present its vater distribution system, for the reason that operations are carried on vith a substantial measure of profit, and indications are that this condition vlll continue. During the last six years there has been a net return on the book value of betveen 1? and IS per cent (ex­cluding the operating expense charges for replacement of vood pipe) and vhile 1942 vili certainly shov a reduction in the rate of return because of the very extensive enlargement of the distribution system vhloh is planned, and the heavy expenditures for veils, etc*, there should be at least a 12t% return on book value, vhile 1943 should shov about 17% again, due to a full year's use of vater by nev customers. (3) The day may come when ve should sell our plant to the city of Las Vegas, but that time has not arrived. Our vater rates are reasonable; our present service appears to satisfy, and so long as ve 1.