Image
Copyright & Fair-use Agreement
UNLV Special Collections provides copies of materials to facilitate private study, scholarship, or research. Material not in the public domain may be used according to fair use of copyrighted materials as defined by copyright law. Please cite us.
Please note that UNLV may not own the copyright to these materials and cannot provide permission to publish or distribute materials when UNLV is not the copyright holder. The user is solely responsible for determining the copyright status of materials and obtaining permission to use material from the copyright holder and for determining whether any permissions relating to any other rights are necessary for the intended use, and for obtaining all required permissions beyond that allowed by fair use.
Read more about our reproduction and use policy.
I agree.Information
Digital ID
Permalink
Details
More Info
Rights
Digital Provenance
Publisher
Transcription
p i Investment as of December 3 1 , 19^1, and revenues and expenses for the year 19*HL. With consolidation, the picture will change for 1 9 ^ 2 and thereafter. Ppoa foe future effect of consolidation ve comment as follows; (a) Large expenditures being made during the year 1 9 *1-2 will considerably increase the consolidated Investment account, and therefore the permissible net earning. Mr, Bennett is of the opinion, however, that the increased Investment account may be somewhat offset by Insistence upon the part of the Commission that, for rate making purposes, the Railroad properties be taken over at depreciated value. (b) Operating and maintenance costs will be increased over 19^1 in several respects: First, under consolidation the Water Co. will assume the cost of electric energy now furnished by the Railroad for pumping and lighting in the producing field; Second, the number of wells has been increased, and in both the producing field and the distributing system-pipe lines have been extended, which normally would mean added maintenance cost, augmented by ar, Increase in labor rates; Third, watchmen are employed to protect against sabotage. (e) There should be a substantial increase in revenues from 1 9 *1-2 on, over the total for 1 9 *1-1 , and this increase in revenue might readily offset the Increase in operating and maintenance expenses (except, perhaps, for the extraordinary expense for watchmen) to the extent that an 8% or return upon allowable investment account would be shown, making it advisable, regardless of other considerations, that ths Railroad produce the greater part of its Shop needs, thereby reducing Water Co. Income and, in consequence, its showing of net. There are three additional features that we think should be given consideration-: First: Onder present conditions the Railroad can produce electric energy cheaper than it can be purchased from the local Power Co. If consolidation is effected, to avoid demand of the Power Co. for the service, we should Include in the contract and as a consideration of the sale price, a provision requiring the Railroad to furnish electric energy to the water producing field. Mr. McNamee advises that this may legally be done under Nevada statutes.