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RE RENTAL OF RAILROAD FACILITIES On testimony given and exhibits introduced, the value of the railroad facilities used by both companies is *>177,147.88. Con­struction of these facilities began in 1905 and the last was a 24 inch cast iron pipe laid in 1979. Inasmuch as the railroad has an item of expense labeled "Reserve for Replacement" for the year 1930, we are of the opinion that a reserve for this item has been laid away annually. This item calls for 4%. We are of the opinion that almost all water facilities have a useful life of fifty years, which reduces this item to 2%. Taking this amount as a basis for retirement reserve we find that since 1906, to and including 1930, that ^12,007.62 has been retirned, leaving a present day valuation of $165,140.26. Using this amount as a fair value of all railroad facilities we find that |14,455.73 per year, or ;:‘>1,204.65 per month, to be a fair rental which is shown as follows: Water used during 1930 Railway Company, including Pacific Freight Express 283,325,825 gal.-32.75$ Las Vegas Land & Water Company 581,867,800 " 67.25% Total 86f>, 193,623 gal. 100.00% Charges incurred during 1930: Interest at 6% on value of 7165,140.26 f9,908.41 Reserve for Replacement at 2% on *177,147.88 3,542.95 Insurance 26*99 Taxes Maintenance & Operating Expense 4,918.06 Total 121,49531 RE VALUE OF WATER RIGHTS Measurement of all water flowing from all sources was measured February 10, 1931, and. was found to be 9,698 cubic feet per second, or 6,280,000 gallons per day. Through the State Engineers Office the railroad company has appropriated 2.5 cubic