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r m x z ' Lee V#gas, Kevada, A p r il 1 , 1 9 3 2 . APR 4 1932 f g3_6 Mr. F . H. Mo^amee, General Attorney, Los Angeles, C a lif . Bear S ir : in fe r r in g to your l e t t e r o f March 28, to Leo A, MaMamee, copy to me, with attached copy o f Mr. Gray’ s l e t t e r Marsh 17th and statem ent to Mr* Knickerbocker, regard­ing the in crease in water r a te s a t Las Vegas, e ffe c tiv e -Oct­ober 1 s t, 1931: fh e a p p lica tio n fo r in crease in water ra te s was f i r s t planned in the e a rly p art o f 1929, although fo r a number o f years p rio r to th a t time, such an a p p licatio n had been a n t i­cip ated , and a good many o f our charge© to Operating Expenses were made with th a t thought in mind. At the tim e in stru c tio n s were received to increase the water r a te s 100 per cen t, we did not in te rp re t them as mean­ing l i t e r a l l y th a t the old schedule of 1909 (which Is o b so lete, providing charges fo r many c la s s e s o f serv ice which no longer e x is t and om itting some o f the more important new se rv ice s) should| he Ju st doubled, but th a t the schedule should be so re-vamped as to develop as near as p o ssib le a 100 per cent in crease in revenue. In doing t h is , we provided in every instance where we thought we could support i t before the P u blic Service Commis­sio n , a 100 per cent increase, in the f l a t b a sic r a te , but in most cases did not in crease the charge fo r e x tra s e rv ic e s, such as t o i l e t and bath, e x tra ch; i r in barber shop, e tc . - 1