Letter from Frank Strong (Los Angeles) to F. H. Knickerbocker, April 3, 1929

Los Angeles, April 3, 1929. 768.4 Mr. F. H. Knickerbocker: Referring to Mr. Armstrong's letter to you of March 28th, file 9215, in which he quotes from superintendent Cunningham concerning water service to industrial leases at Las Vegas, particularly with reference to fire protection: Industries locating upon our property and investing a considerable sum in buildings, equipment and stock must arrange for fire insurance. Without water adequate for fire fighting purposes the insurance rate would be high and probably prohibitive. The local water company does not furnish fire lines along the streets abutting Units Nos. 2 and 3 so that I think it is up to the Railroad Company to make some equitable arrangement under which convenient and adequate water supply for fire fighting purposes can be made available. We have studied the practices of city Water department and utility companies but the circumstances at Las Vegas are such that these practices are not applicable. Generally, the municipal water department installs risers and fire plugs in locations as determined by the Fire Department. The cost of installation of plugs is not assessed against the property protected and the cost of water used in fighting fires is not charged against the property upon which tha fire occurs. In each case, the costs are paid from taxes and thereby become a general municipal expense. private water companies around Los Angeles furnish risers and plugs in locations as determined by municipal authorities and are paid a monthly rental for each plug, water used for fighting fires is not separately paid for. The rental for plugs is assumed to cover all costs. obviously the situation faced by the Railroad Company at Las Vegas in furnishing surplus water to a few parties does not parallel either of the above cases. The number of users and rates to be charged for domestic water are not such that a profit might be expected to accrue, which profit could be used to cover the occasional cost of furnishing fire fighting water. I think, therefore, we must disregard the practice of water companies and make an arrangement of our own. To make a single connection for fire fighting and domestic purposes would mean a 4" line equipped with a 4" meter from which line the industry would construct its fire plugs and make its connections for domestic purposes. Under such an arrangement all water used would be metered but a 4" meter that would register the quantity used through a 3/4" tap would cost in vicinity of $250.00. The 20 ft. more or less of 4" pipe from water main to lease line would cost perhaps $40.00 or $50.00. Under such an arrangement, each industry, therefore, must deposit close to $300.00. I think this in itself is objectionable and believe it would be rejected by most of our locators. Further, I do not think it fair to charge the industry a domestic rate for fire fighting purposes. After reviewing the situation, it is my recommendation that the form of water agreement and rate schedule as now adopted for domestic purposes be retained but that we add to this agreement provisions under which the user may secure fire protection, such provisions to cover the following: (a) An independent line,of size to be determined by the user, may be constructed at the sole cost of the user. The connection with the Company's main and that portion between the main and the property line of leased premises to be constructed by the Railroad Company at the sole cost of the user. Deposit of estimated cost to be made by user in advance of construction. Extension of the line into the user's premises and construction of risers and fire plugs to be performed by and at the sole cost of the user. (b) such line will not be equipped with meter. User agrees that no connections other than for fire plugs will be made with this line and no water will be taken from the fire plugs except for fire fighting purposes. (c) In event of fire, Railroad agrees to furnish each of its surplus water as may be available. (d) Per each occasion upon which water is used for fire fighting purposes, user agrees to pay to Railroad Company the flat sum of $10.00. Under such an arrangement, the Railroad Company would be under no expense in connection with the fire fighting service except in event of fire on such occasion there would probably be some additional fuel in the operation of fire pumps and while in a prolonged fire, $10.00 might not cover, I believe we could reasonably consider that on the average, $10.00 would cover the expense. Frank strong. CC-- Mr. W.R. Armstrong Mr. W.B. Robertson. Mr. R.L. Adamson.