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Omaha - June 5, 1929 434-001 Mr. F. H. Knickerbocker: Your le t t e r 9215-355, A pril 30th, and other corres­pondence regarding water matters at Las Vegas: President now advises that as there is a surplus o f water that can be used fo r domestic and c ity purposes when the growth of the c ity demands, i t w ill not be necessary at th is time to consider in sta lla tion of meters involving a con­siderable expenditure, and he has reached the conclusion we should at as early a date as practicable take steps to obtain an increase in the water rates, loca l o ffic e r s to pursue the matter d ilig e n tly and use their discretion as to the best method of handling and the time fo r f ilin g the application fo r such increase, application to be made to the proper public authorities fo r an increase of 100 per cent in the present fla t rates; reserving, however, the right to proceed with in sta lla tion of meters at a la te r date i f such action becomes necessary to conserve the available supply. While the recommendation has bSen made that ex ist­ing f la t rates be increased 125 per cent, i t appears an increase of 100 per cent w ill take care of a l l anticipated fixed charges and extensions, including an adequate rental to the Railroad Company, leaving a small margin of p r o fit fo r the Land and Water Company, which margin w ill probably be somewhat increased by supplying water wholesale to outside companies at eight cents