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XtOs Angeles, February 24, 1901 20-6-1 Mr. F. H. Kniekerbooker: Kindly he referred to Mr. MoBamee * a loiter February 12 regarding inarease in water rates at las Vegas, Bemte. following & ooaferenoe feel# in Mr. Befia&ee’a offiee on February 20, m fears compiled figures showing the cost of water at las Vegas as delivered through the 16* meter to the las Vegas land and later Oospany with the re salt as shown on attached statement. In this cost we have included interest at 8$ on the valuation of joint water facilities as of January 1, 1931 ffels valuation is used for the reason that all of the facilities were la service during the entire year of 1900 In previous similar statements interest at 6^ has seen included, hut it was the opinion of those present at the ©oaference ©how referred to that the rate of Bp was more in aooord with prevailing interest rates in Sevada territory. for rate making purposes it will fee necessary to add to this cost of water all cost resulting from the las Vegas land and later Company’s distribution system which will fee compiled fey Mr. Bracken. In preparing this statement it was decided to use the general ledger balance of $81,2V8.05 for the value of the LVL&W water system instead of the amount of M.02,002 as determined fey the Valuation Department and furnished in its letter of Jane 12, 1929. fo this figure should fee added #680 to cover the f60 lineal feet of 4 red­wood pipe acquired under Work Order 162. In addition to the above valuation of pipe lines and appurtenances some value should fee applied to the water eights eS iy tie las T,ga» fa&a and Water Company »hieh »aa e«U- isatad at $800,476 % ear Valuat ion Department in Hr. Periine letter of August 28. 1929. It was also considered advisable to use an Interest rate of 8$ on the valuation of facilities in compiling the oost of distribution. It is my understanding that Mr* Bracken will include in his statement of oost incurred fey the 1Y1&W die tribe ting system llm of #680 for the 4* redwood gfJXTATz men- work Order 162; also include the value for water rights men­tioned above. Enel. oo-Mr. F. R. McBamee, Mr. Walter Bracken. B. 1. Adamson. w;