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^ - ?? ? - ....... ; upon the anticipated service life of each* The present calcula­tion of depreciation is made solely for the purpose of hilling on the LVLAW Go. for water, as no depreciation is recorded In the were railroad accounts* If the LA&SLf® property/transferred to the Water Company depreciation charges on that property would he in­cluded in operating expenses with corresponding credits in that Company* s reserve for depreciation on the same basis .as now applied by the Water Company on its presently owned property* 4* As a matter of policy it seems desirable to transfer to the ownership of the Water Company the railroad investment in the plant, because the railroad makes a profit, or has the appear­ance of making a profit from the Water Company in the process of delivering the water, and the Water Coapany, after meeting the rail­road's charges for water, passes them on to the Las Vegas customers whose payments enable it also to make a profit. In other words, the expense for water as now handled furnishes ground for the con­clusion that the Union Pacific directly and indirectly collects two profits out of the Las Vegas community far the water used in the town. This source of criticism should be removed* 5* The twelve monthly bills rendered and yet to be rendered in 1942 by the Union Pacific against the Water Company for water supplied will total $2? ,210 (12 months at $2267*50, the amount being determined annually)* These bills are credited in their entirety to operating revenue aeoount 143, Miscellaneous* Most of this sum is made up of interest at 6£ and depreciation at 4jf, neither of whieh credit items is counterbalanced by