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3 when the rate was raised from $26.40 to $33.00 per month. While the loss in revenues from these four accounts is about $100 per month or the equivalent of 50 houses, the tendency toward an in­crease in private well-drilling is disturbing, and we protested vehemently"to the State Engineer, both personally and in writing. Without going into details, the present status of our campaign on this subject is that the state officials claim they cannot stop the well drilling unless they hold a public hearing in each case. We are now handling through the State Board of Health. My object in mentioning the above is the thought that the application of water rates should be left in the hands of the local office, as a general policy, subject to approval of the Aud­itor in each case. For example, in the case of the "Chief AutelJ the owner installed his own water line from our nearest main, some 850 feet, without cost to the Company, and consideration should be given this in applying the rate under the schedule. It is unfortunate that the bulk of these houses were added at a time when our forces were tied up with work orders, new connections, water main extensions into Defense Housing Pro­jects and incidental extraordinary work that always accompanies a "boom" town, and I am grateful for the assistance rendered us by the Accounting Departments oheck. We shall, of course, con­tinue these checks, and I might say that even since the Auditor’s check we have picked up a number of new houses under construction. The Accounting Department has in the past made periodical surprise checks on our monthly report of services and collections, in addition to checks by traveling auditor, but this is the first physical check, to my knowledge, made by other than our own office force. The four consumers against whom bills were not rendered as referred to in first paragraph of your letter, were, as near as I can determine (we did not receive copy of Auditor’s report): Buckley’s Dress Shop - Opened March 25, 1942. We have billed them for April and May. Wood Furniture Store - Opened March 1st. This was a portion of the Hogan-Westlake automobile shop and they claim they use no water. J. Williams Mr. Williams is a retired railroad employee, sometimes used as an extra police officer and I arranged with him a few years ago to check the rooming-house lobby at night, eject tramps and generally guard the property, in exchange for his water service. This arrangement has been discon­tinued on advice of auditor. Pearl Allen Mrs. Allen resides in Old Town and was unable to pay her water bills. When a local