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above; a ls o , that a l l e x is tin g agreements coverin g fu rn ish in g o f water to outside companies would be canceled and super­seded by new documents prepared in accordance w ith terms above o u tlin e d . In other words, fu rn ish in g o f water to a l l ou tside companies w i l l be on same b a sis. The sale o f water by the R ailroad Company to the L V L & W Co., now covered by Contract Audit No. 2850-A, was discussed and i t was the consensus o f opinion th at revised agreement submitted w ith Mr. McNamee’ s l e t t e r March 23 should now be presented fo r execu tion. In th is connection, i t w i l l bd r e c a lle d that Contract Audit No. 2850*-A covers sale o f e le c ­t r i c i t y as w e ll as.w ater, and pending fu rth er developments i t is recommended that old agreement, in so fa r as fu rn ish in g o f e l e c t r i c i t y is concerned, be extended to October 1, 1329, by which time fran ch ise and p ole lin e owned by L V L & W Co. may be sold to Consolidated Company, and fu rth er n ecessity fo r agreement between R a ilroa d Company and L V L & W Co. coverin g sale o f e l e c t r i c i t y w i l l be elim in ated . The subject o f in creasin g ra tes coverin g sale o f water, now s t fo r th In Form 14, was also discussed and con­s id era tio n given to various featu res set fo r th in my rep o rt A p r il 27, and Mr. Smith was f u lly advised regardin g the s itu ­a tio n . Mr. Smith sta tes that the President would be here during June, at which time con sid eration could be given to p o lic y and procedure that should be fo llo w ed in order to secure increased revenue fo r L V L & W Co. through r e t a i l sale o f w ater. He a lso stated th at, in his opinion, the sug­gested arrangement to increase e x is tin g f l a t ra tes as covered by Form 14 by 225$ fo r r e t a i l d is tr ib u tio n o f water appeared to be the most lo g ic a l fou rse to fo llo w , and in th is connec­tio n i t was suggested th a t, should execu tive approval be secured, Messrs. Bracken and McNamee arrange to c a ll in fo rm a lly upon Nevada Pu blic U t i l i t i e s Commission to discuss the e n tire s itu a tio n p r io r to making pu blic announcement o f f i l i n g a p p li­ca tio n fo r increase in r a te s . At the conclusion o f the conference i t was understood that agreements coverin g fu rn ish in g o f water w holesale to a l l subdivisions would be prepared in accordance w ith the terms ou tlin ed above, and e x is tin g con tracts can celled and superseded by new documents; a ls o , i t was understood that the p o lic y and procedure w ith resp ect to in creasin g rates would be considered when execu tives are here during June. g o » ?*A e <W3 * Halsted, Mr. t« « Bracken, Mr. TP *D X * it * Ji’iQ 1a O/R10 0 , Mr. Leo A % t» «*•» . mci'iamee R. L. Adamson, DT A Orig OOl C rr Las lviv ts '"‘Copy Las Vegas Copy 085-355 Las Vegas fcj oAfpSWy 9215-355 JJCtb Vegas Towns i t e-Water system, 4*YL&7 Co. Water F a c i l i t i e s and Supply, LA&SL HR Co. a les o f water & e le c , by LA&SL to LVL&l. C Boulder R ealty C o ^ - js a le of.