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? v y ' Increase of Water Rates - Las Vegas. Los Angeles, June 1, 1931• Mr. A. S. Halsted: On May 28th and 29th I submitted proofs before Com­missioners Shaughnessy and Malone of the Public Service Com­mission of Hevada at Las Vegas, in support of our application for an increase of water rates. Mr. Drew, from the Chief En­gineer* s office, furnished a detailed statement of the expendi­tures made by the Railroad for the water facilities used to serve the town, and testified to the items of such expenditures, and the reasonable value thereof. Mr. J$rungs, from the Audi­tor Is office attended, and furnished data showing all expenditures going to make up the physical valuation of Las Vegas Land and Water Company consisting of pipe-lines, equipment, etc., and the costs of collection, maintenance, supervision, reserve for de­pletion, etc. Mr. R. D. Perkins, of the Valuation Department, confirmed on the witness stand his previous valuation of #200,000. on a 3,000 gallon per min. flow. This would be a valuation<£ #30,000. per sec. ft., which is in accord with vari­ous comparative values we had on hand from Southern California. These values were questioned by the Commission. The average amount of water shown to have been used by Las Vegas Land and Water Company during the year 1930 was 2.46 second feet, which would be of the value of approximately #73,800.00, on the basis of #30,000 per sec. ft. The testimony of both Perkins and Drew was to the effect that in order to give full service the amount of water available at all times should be double the av­erage amount used, this to afford an ample supply during the peak period of user during the heated period— July and August— and also to afford a sufficient amount for fire protection and other extraordinary occasions. Mr. Bracken and his assistant, Mr. Conway, gave clear explanations of the application of the low rates heretofore applied, the reasons therefor at the in­ception of water service in Las Vegas years ago, and the necess­ity for the increase asked for in order to make a reasonable return on investment. I was careful to go fully into our water conditions at Las Vegas from their inception, and to submit all documentary and other evidence necessary to make a complete record to substantiate our claim for increase. Commissioner Shaughnessy intimated that he might ask for further information from time to time regarding mat-