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42 represented by plant in service, have been deducted^' in establishing the rate base figures. The amounts so deducted are set forth in Tables E, P and G. 4. Summary of Results of Operation Revenue, expense and rate base figures that have been devel­oped and discussed may now be brought together so as to determine the net earnings and rate of return realized from the 1949 operations and similarly what results may be expected from the year 1950 at the presently effective water rates. Having thus determined the results of operation on the various bases at present rates the adjustments in net and gross revenues figures may thus be made to yield a fair rate of return, which for the company is viewed as not less than 6-|$. The details as to the development of these figures are set forth in the Appendix under six tables, L to Q, inclusive. Tables L, M and N set forth the results for the years 1949 and 1950 estimated on the three different bases, and under the actual condition in which the Las Vegas water utility pays joint facility rent to the Union Pacific Railroad Company. Summarized, the results for the estimated year 1950 show the following increases in gross revenue that are necessary to provide operating costs and a return of 6|$. With Federal Income Tax at 38% Capital Base Required Increase in Gross Revenue Amount Per Cent Investment 57,450 25.88 Original Cost 76,328 34.38 Present-Day Cost 133,520 60.14 1/ There are sharply differing views as to the propriety of deducting any such construction advances. It is probably correct to say that the legal concept would call for an earning on the full amount of the investment without any deduction, as the physical property Is owned and operated by the Utility and is used in rendering the service. Con­trasted with this is the cost concept, wherein the customer receives full credit on monies advanced on all extensions that prove themselves to have been feasible.