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Los Angeles, February 28, 1930. Mr. F. H. Knickerbocker: Your telegram o f February 27, quoting Mr. J e ffe r s ’ in­quiry as to the present status o f application to increase water rates at Las Vegas. We are working with the engineering department with a view to adjusting a schedule of rates prepared from working data at Las Vegas, so as to bring about a uniform increase on a ll classi­fica tion s that w ill provide, as hear as possible, the 100% increase contemplated, and at the same time insure such a reasonable net re­turn on the investment as w ill warrant the Public Service Commission in granting the increase. The new schedule o f rates w ill be available fo r f ilin g with the Public Service Commission as soon as our franchise to use the streets and alleys is accepted and file d . We have experienced some delay in securing the franchise or permit to use the streets and alleys under terms which we believed necessary, so as to leave i t optional with the Company to make such extensions from time to time as i t might consider advisable. The City Commissioners, at the suggestion of Mr. Bracken, sanctioned a change in the require­ments of Paragraph IV of the franchise, which is very advantageous to the Company, and as soon as the permit is approved by^the engin­eering department, i t should be file d with the City Commissioners o f Las Vegas, with the Company's acceptance endorsed thereon, and i t w ill then be in order to f i l e our application fo r increase of water rates. The delay and uncertainty over the construction of the Boulder Dam has cast gloom over the people in Las Vegas, and mere has been a decided decrease and depression in a ll business, me extent of this depression has been the discontinuance of many enterprises, and contributing to the situation is the fa ct that the governmental authorities at Las Vegas, in anticipation o f a great in flu x in population, made extensive municipal and school improve­ments which have brought tax exactions to the breaking pomt, a decided fe e lin g o f unrest prevails an this account, fhe psychol­ogy o f the situation would suggest that we delay making application fo r an increase fo r the time being, or u n til there is a reviva l o f a c tiv ity . With increased cost o f operation, a reasonable delay Say enable us to make such a showing before the Public Service Com-mission as w ill warrant the increase we ask fo r . frm-mk F. Tl. McHamee cc Mr. A. s. Halsted Mr. R. L. Adamson Mr. W. R. Bracken Mr. Leo A. McHamee