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LAS 7EJAS *AT£R SUPPLY Rj^CKMZHDATIOKS (1) The Investment of the LAiSLRRCo. In land, springs, wells, etc., west of the Las Vega a station grounds yields a gross return of about 10,5 per cent by reason of sale of water to the LVLand'-tfCo. I therefore recommend that this property be left In the railroad company. Tne facilities were primarily acquired and Installed for railroad use, end the railroad water tank, shop, stockyard, passenger station, etc., take water tnerefroa, except for whatever water nay be furnished direct from the so-called railroad well on the shop grounds. (2) I recommend that the LYLandkCo. continue to own and use as at present Its water distribution system, for the reason that operations are carried on with a substantial measure of profit, and Indications are that this condition will continue. During the last six years there has been a net return on the book value of between 17 and 18 oer cent (ex­cluding the operating exoense charges for replacement of wood ploe) and while 1942 vi 1 1 certainly shew a reduction In the rate of return because of the very extensive enlargement of the distribution system which is planned, and the heavy expenditures for wells, etc., there should be at least a 12#fe return on took value, while 1945 should show about 17/= again, due tc a full year's use of water by new customers. (3 ) The day may come vhen we should sell our plant to the city of Lae Vegas, but that time has not arrived. Our water rates are reasonable; our present service appears to satisfy, and so long as we 1.