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2 13? extra rooms were found, the rate on which is each, as the $2 $ate is predicated on a 5—room house. 15$ 14 extra chairs were found in the various barber shops around town, 5 small stores, a dress shop, wash rack in garage, 8 offices and other miscellaneous charges totalling #56.70. The most difficult thing to explain is the 106 houses, added by our customers without notification to me. Of course, those with whom I have talked, have stated in general that their houses were but newly built and that they intended to notify the water office as soon as their first months rent was received, but human nature being what it is, they apparently think it is quite all right to cheat a public utility. s Considering the fact that the population of Las Vegas has increased from 8,500 in the last official census in 1940, to approximately 23,000 today, and most of this since last November when Basic Magnesium commenced construction, the increase of 13.3$ in revenues developed by physical check of services does not of course reflect the full development of the city. We regularly check the city by sub-divisions, picking up #35 to #50 per sub­division, in addition to smaller increases picked up by observ­ation on Sundays. A portion of the increases in report are due to elimina­tion of vacancy allowances which we have granted in the past under authority of the rate schedule authorized by the Commission. During the present "boom" practically all auto courts and hotefe are fully occppied on week ends, but average 10$ to 20$ vacant from Mondays to Fridays. These accommodations do not cater to "regulars", as a higher rental can be obtained from transients, and in fact those regularly employed here could not pay the rates. We have operated on the basis that we do not ask any­one to pay for something they are not getting; but when the facility is in service and we are supplying it with water, we insist on being paid for it. On a flat rate system, judgment must be exercised as to the quantity of service used, and inasmuch as it is not practicable to check the vacancies dally in each auto court and hotel in the city, we arrived at an arbitrary vacancy allowance of 10 to 20$ after inspection of the property and con­ference with the owner. This we felt to be fair both to the Company and the consumer. I do not mean to imply that this system has been success­ful in all cases; in fact we have lost a few of our best accounts because the consumer felt it would be cheaper to drill a well on his property than to pay his monthly water bill. This included: Svc. 3065 Svc. 4108 Svc. 5020 Blakely Apts. Hub Auto Court M. M. Tenesch #24 per month 30.50 " " 16.50 " " and we were notified during the physical check last month that the "Chief Autel" would henceforth secure water from its own well,