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ios Angeles, A pril 27, 1929 20- 6- 1-2 Mr. I*. H. Knickerbocker: K-924 attaching copy Mr. J effers' F-157 re la tiv e to sale of water hy las Vegas land and Water Company at las Vegas, Nevada. Using 19 28 water consamption, expenses, and revenae as a basis, three statements have been prepared settin g fo rth financial situation that would obtain in the immediate future under conditions as outlined: 1. Operating under existin g rates with rental paid to Bailroad Company increased in accordance with proposed agreement which w ill supersede Contract Audit No. 2850-A: Maintenance and Operation 1928 ...............$11,366.05 Interest & Depreciation - 10$ on $81,222 8,122.20 Total Charges ...................... $19,488.25 Seven u e .............................................. 18,496.70 Loss on Sale of Water . . . . . . . $ 991.55 From the above it w ill be noted that when allowance is made for interest and depreciation, l.Y .L . & W. Co. actually lo s t $991.55 through sale of water during 1928, and when consider­ation is given to increased rental from $200 to $975 per month that w ill be charged L.Y.L. & W. Co. by Bailroad Company for use o f Bailroad owned f a c ilit ie s , the loss during 1929 w ill be approximately $8000 which w ill be further increased during 1930 to $15,500 account construction of additional water fa c il-