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Water Rights Wo amount has been included in this item. In the 1930 decision of the Nevada Commission, dealing with the last increase in water rates, an allowance of #6000 was recognised by the Com­mission* The Company had claimed some #200,000, The allowance, as you will recall, was based upon #2000 per cu, ft, per second of water produced and utilised by the Water Company. Such allowance was set 3 cu. ft, per second. Currently with a flow of approximately 18 eu. ft. per second, of which the Water Company utilizes 96,31$ based upon 1948 division of the water, the value of the water rights would be in excess of #30,000. A decision as to the Company’s position on this matter will be desirable. Revenues t The 19S0 estimate reflects an increase of #11,610 in water revenue. It is planned to show detail as to number of customers, revenue from each class, as well as population figures in the final estimate, This may be neafr#10,000 than the estimate herein used as rate of growth is declining. In 1949, total revenues of #202,390 reflected Miseel-revenuea of #3,256.97. This amount Included #1740,00 for water service connections at the rate of #5.00 per connection. It would appear to me that such payment might better be treated as a credit to the expense incurred by the Company in making the service extension from the water main to the curb. Treating it as a revenue creates a tax liability. Further the Company’s expense