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Los Angeles, May 16th, 1933. Mr. F. R. McNamee: 9315-3-W Referring to our discussion with Mr. Haugh here last week regarding water situation at Las Vegas: As you know, Mr. Haugh is still of the opinion that we should be permitted to increase our present rates and charges for water sold at that place. He feels that when the time is opportune in the near future, we should make plans with a view to filing application for another hearing on our rates. In the meantime, I suggest we obtain definite data as to the present rates and charges in other towns in Nevada, where conditions as to population, cost of water, etc., are comparable or nearly so with those at Las Vegas. As we explained to Mr. Haugh, other towns in Nevada, such as Reno, Elko, Tonopah, etc., have more expensive facilities to maintain and their cost of producing water is higher than Las Vegas. We should endeavor to definitely substantiate this point. An analysis or statement of the water facilities at other places in Nevada comparable with Las Vegas, should enable us to present the matter in a more convincing manner than heretofore. Am satisfied it will be necessary for us to make another effort to obtain further increase in our water rates at Las Vegas. We can show from our records that practically no profit has been made in our water operations during the ten-year period ending in 1931. That being so, we should be entitled to raise the rates sufficiently to at least earn 9$ or 10$ on our investment. F. H. Knickerbocker