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42 Kni ckerbo cker 4/27/29 (b) That Las Vegas Land and Water Company at this time apply to the Public Service Commission of Nevada for a Certificate of Convenience and Necessity to serve water to the inhabitants in all territory within the City of Las Vegas that can be served by gravity from present source of water supply, including railroad area, excluding those subdivisions now holding Certificates of Convenience and nerved by us under contract at wholesale meter rates; (e) That application be made to the Board of Commissioners of the City of Las Vegas for a franchise to lay pipes, mains, etc. on all territory within the boundaries of Las Vegas City now platted and laid, out in streets, alleys, etc., including Clark * s Las Vegas Townsite, and all areas that are likely to be subdivided into blocks, streets and alleys, that can be served with water by gravity from our present source. This in order to initiate a first right and claim to give service for the whole area. We will, in my judgment, experience serious opposition to any Increase in water rates at this time, owing to the fact t$at there has been heretofore an excess of water. Municipal ownership has also been advocated, notwithstanding our low water rates. However, from the data contained in Mr, Adamson's letter of even date, we are probably in as good a position to make a showing for an increase at this time as we would be to defer It until the expiration of the franchise, for our franchise provides that should it become necessary for the Company to resort to pumping plants, stand pipe, or other expedient in order to supply the town with water, the Company has a right to Increase the schedule of prices to such extent as to cover additional costs, etc. FRM:BG F. R. McNamee. Cc to Mr. Mr. Mr. Mr. A. S. Halsted ^ R. L. Adamson W. R. Bracken Leo A,McNamee