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Mr, MoSaaee: #i April lt 1932. Talcing a representative month in 1929, during the month of February our gross revenues were 11635.18} com­pered with grogs revenues for February 1932 of #3987.06, ©a increase of well over 100 per cent. during this some period, the only increase of any real importance in operating expense was in the rental of Hailroad facilities, the cost of which was increased from #200 per month to #1443.83 per month, pay­ment being made direct to the railroad Company; this point the Commission was apparently well informed of, as Commissioner Malone closely questioned the various witnesses at the open hearing in las Vegas hold in May 1931, regarding this large Increase in expense. then we prepared our request for increase of rates on the basis of 100 per cent, we were unable to prepare exhibits to show operations which would justify any euoh in­crease, and later reduced them to approximately 60 per cent, and this w: s further reduced by the Commission to approxim­ately 30 per omit. Our judgment in this matter was, I believe, correct inasmuch as the valuations prepared by our Engineering department, which was our basis for the sixty per cent increase, were practically eliminated, as we were unable to substantiate these exhibits. *hia woe determined prior to the hearing, in personal conference with the chairman of the Public service Commission* Mr. Grey a letter to Mr. Knickerbocker states that there were nine items on which we requested increase of 100 per cent, baaed only on such items ae are shown on both the old and the proposed new schedule. However, there were many items where no rat© was ehown under the old schedule, where the proposed rate was increased 100 per cent over the 0.1,4 rate charged; for example apartment houses, bungalow courts, cabins, tenthouses, hospitals and hotels were formerly all basts on the '‘house” rate, and the proposed new rate was in­creased in proportion to the ’’house'* rate, or 100 per cent... borne of the items which did not show a 100 per cent increase vin the proposed new rate over the old rate, actually were in­creased that much, and in some cases more. For example butcher shops, old rate fl.50, proposed rate #2.00; -but in addition we provided a charge for refrigeration machines ranging from #1.00 up, making the minimum charge #3.00, and in one instance as high