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I I the same p erio d , the Water Company received 907,437,300 g a llo n s, costin g | .0403 per M g a llo n s. Of th is c o s t, f .01953 was paid to the R ailroad Company, th is payment to ta lin g #17,723,92 includes the items o f 6 per cent in te r e s t and 4 per cent d ep recia tion on the R a ilro a d Company's investment, or t o t a l fix e d charges o f 10 per cent plus insurance, taxes, maintenance and operation . She Water Company rec eived in revenue #51,664.02, equal to # .0569 per M g a llo n s. She to ta l expenses incurred hy the Water Company, in clu din g in te r e s t and d ep reciation (paid to the R ailroa d ) Which i s trea ted as a ren t item , were #36,585.85, equal to # .0403 per M g a llo n s, lea vin g a net revenue accru gin t to the Water Company o f #15,078.17, equal to # .0166 per H g a llo n s . In substance, the R ailroad Company received from the Water Company 6 per cent in te r e s t 4 per cent d ep recia tio n , insurance, taxes and maintenance, le a v in g the Water Company the net revenue above mentioned, which was equiv-a le n t to 16.8 per cent on the book value o f the Water Company's in ­vestment, v i z : #89,851.29. I t occurs to me th a t, taking in to account the low cost o f water to the R ailroad Company, the s o c ia l theory which seems to e x is t in Las Vegas, perhaps accentuated by the c i t y 's p roxim ity to the new dam, etc. , the Water Company should make the investment recommended as insurance again st a water shortage. I t is not probable th at much could be accomplished in the way o f reducing consumption when the t o t a l cost per M gallon s i s as low as that e x is tin g in Las Vegas. For example, i f the $ater Company employed men to p o lic e waste on the part of commercial users, such p o lic in g would cost not le s s than #1,500 per year, without any increase in revenue to substantiate - 2 -