Letter from F. H. Knickerbocker (Los Angeles) to F. R. McNamee, March 7, 1929

CC- Mr. Frank Strong Los Angeles, March 7, 1929 9215-34 Mr. F. R. McNamee: Referring to recent discussion with the writer, concerning development of new industrial lease tract at Las Vegas, involving installation of water mains by the Railroad Company rather than the Las Vegas Land and Water Company, as well as sale of water direct by the Railroad Company to industrial lessees: We will very shortly be called upon to establish water service, in that we are making leases, and I shall appreciate it if you will kindly prepare appropriate blanket form of water service agreement, which, among other necessary legal provisions, should provide for lessee assuming cost of meter, as well as for water line connections from the Company's main supply line. You will recall that your son Leo was in your office at the time we discussed this situation, and we thought that the charge for water on a meter basis should conform to meter basis rate contained in Las Vegas Land and Water Company's franchise schedule covering Clark's Las Vegas Townsite, i.e., 12 1/2 cents for each 100 cubic feet up to 800, with minimum charge $1.00 per month, and 10 cents per 100 cubic feet in excess of 800. I understand that the rate mentioned applying up to 800 cubic feet is the equivalent of 16.71 cents per 1000 gallons, and that the rate per 100 cubic feet in excess Of 800 is the equivalent of 13.36 cents per 1000 gallons, so that the average rate would amount to practically 15 cents per 1000 gallons, thus conforming to rate now being charged by the Railroad Company to certain other industries at Las Vegas who are now purchasing water under contract direct from the Railroad, except that the latter mentioned contracts provide for a minimum payment of $2.50 per month, and in that respect I believe we should apply the same minimum to any water contracts made with new industrial lessees. Mr. Gray has approved above basis for selling water as a temporary one only, and has directed that no long-term contracts should be made, inasmuch as the entire situation with respect to water charges is now under consideration. - 2 - , When you have prepared this form of water agreement, I shall be pleased to receive six copies of same and then I will determine whether we should have it printed so as to avoid necessity of preparing special typewritten agreements covering each individual case. F. H. Knickerbocker CC-Mr. Frank Strong