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'<%te>mpany is paying 66*66$ of the cost of maintenance and operation of the railroad facilities located at the source of our water supply. Effect ire January 1* 1930, we started paying $1,400 a month on the basis as outlined in the attached statement which was prepared by the Engineering Department. In addition we have our pipe line investments in the City of lias Vegas and sub-divisions, which adds to our cost of operation. Were meters installed, we could figure that in a large majority of cases we would get only the minimum, as most of the water used here is for the development of lawns and trees, and with these eliminated, the amount of water used would be materially reduced. It is our opinion the use of meters would reduce our present revenue more than twenty-five percent. While in addition to our present expenses, we could figure on approximately $1^800 a year cost of reading meters, preparing and mailing bills, handling deposits and other various duties that would be added along this line* A similar amount of expense would be added to our maintenance force, as meters installed here have proven to function correctly for about only one month; thereafter slowing down until at the end of six or eight months, the dials come to a complete stop, although water continues to pass through the measuring disc Just as freely. This would mean that practically every meter in town would have to be removed and cleaned during each six-month period and where larger quantities are used, every three months. We have Just completed and delivered to the law Department, a new flat rate schedule, copy of which I am attaching, which we contemplat putting into effect upon revival of favorable conditions in Las Vegas. Under this schedule we should maintain earnings very similar to those during the year 19£8, which is approximately $8,000 net annually. WALTER R. BRAGKEE Vice-Enclosures 3 President & Agent.