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f a t e ? Supply - F a c i l i t i e s fu rn is h e d fey XA&SL: Las 7egas, Smds, ^pril 11, 1933. f £3-3-3 Mr. ?. H* Knickerbocker, General Manager, I»oe Angeles, California. Bear Sir: We are in receipt of statement from Mr. Barry showing basis of rental rate on joint facilities for the year 1933, copy of which is attached for your information. When the contract under which we are now oper­ating, dated April 1, 1929, was placed in effect, the abater company paid 60 per cent of the annuel operating and carry­ing charges, or §975.00 per month{#11,700 per year). the time this contract was drawn, it was necessary to sup­port our request to the Safelie Utilities Commission of h®y- ada for an increase in water rates, but since its original draft its rental rate hag increased each year until our rate for the year 1933 is #1567.49 per month (#18,809.88 per year.) $he cause of this increase is that the total oper­ating sad carrying chargee have increased £8.41 per cent end at the same time our proportion of the charges has increased from 60 per cent to 75.12 per cent, according to the amount of water consumed. Regarding the increase in the total operating and carrying charges, we note that the maintenance and operating charge for 1932 is the same as for 1931, that is #4200.00; while there was a small expense in connection with clearing the weeds and minor repair work after a fire during the year 1932, the Water company performed about as much of the main-