upr000342 25

*reliable records hare made possible. With the preparation of “Original Cost** and "Replacement Cost" estimates by Mr. Hulsizer’s office, It is felt that it will probably not be necessary to go to the Omaha office, provided the additional material that is being requested by Mr. Reinhardt is famished. -2 - Probably supplemental requests will likewise be necessary. With this information, and material that is expected to be obtained locally, it is believed the necessary Results of Operation Study can be set up, along with an estimate of the added revenues needed, and the change in rates required. I am planning on spending a day or so in Las yogas so as to have some familiarity with the physical system, as well as to discuss with Mr. Folger at first hand the operation of the properties. ESTIMATED RESULTS GW OPERATION (Tentative): These results may be summarized as follows; 1950 Revenues Operating Expense Cost of Water Operation General Depreciation Taxes Other Than Income Income Total Operating Expense Met Revenue 1949 Recorded Adjusted #202,390 #202,390 105,764 104,313 23,840 23,840 23,270 34,646 7,400 8,950 21,300 21,300 #508,700 #589,000 2.5* 0.9856 Orig. Cost R.C.M. #214,000 #214,000 114,068 25,000 35,700 8,950 134,024 25,000 35,700 9,800 25,000 2.007 25,000 ,2107725 3,275 #22$, (15,524) #638,200 0.5156 #644,100 l.R. Company in the Rate Base Rate of Return This summery estimate treats the LA&SL sale of water to Las Vegas Land and Water Company as a separate cor poration and, further, Federal Income Taxes have been set up on a separate return basis. A 6*3/456 return is reflected in these cost figures except for 1949 recorded where 656 is used. Another set-up