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upr000279-072
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Hr. Hulsizer and his assistant, Hr. Hubbardv were present at las Vegas and gars very valuable counsel and advise. Hr. Hubbard will later appear as a valuation witness at tbs next bearing. Throughout tbs entire preparation of the ease Hr. Sutton's office has been relied upon for information and valuable suggestions. He seat to Las Vegas to assist us Hr. R. 0. Carson, Assistant Auditor of Disbursements, lfir. R. G. Parkinson of bis staff and Hr. William MeCafferty from Hr. L. A. White * a office. Hr. Carson testified as a witness and introduced several exhibits which were prepared by the three representatives of the Auditor's office. He was a vary fine witness. His testimony was not concluded at tbs time the bearing adjourned. I found that Mr. Parkinson and Mr. MeCafferty bad dons a great deal of work upon this ease prior to coming to Las Vegas. It was extremely valuable to have the counsel and adviee of these three sum and X hope that it will be convenient for all of them to return to Las Vsgas at the tine of the next hear­ing. So far the attitude of the City has not boon too antagonistic. However, we will undoubtedly hear a good deal about the Inadequacy of the water supply and complaints about low pressures when the proteetante are permitted to make their showing. The eroes examination of the City Attorney was dsvoted largely to an attempt to reduce the rate base to the lowest possible investment eoet, to demonstrate that the operations of ths Railroad and ths las Vsgas Land and Water Company wars inefficient and that the Railroad Company made exeeeslve charges for wholesale water furnished to the Lae Vegas land and Water Company* I am quite confident the Company will reeeive a sub­stantial increase in rates although we may not get in the first in­stance all that we are asking for. One of the most important benefits of ths study made by Hr. Wehe and all of the dapartmenta of the Railroad concerned with water operations has bean the development of a proper basis for ths charges made by the Railroad upon the Las Vegas land and Water Company for watar furnished, and also for billing the Las Vsgas Land and Water Company for the services performed by the Railroad Company for the benefit of the water distribution system. These changes in practices have resulted from ths new contract between ths Railroad and ths Lae Vegas Land and Water Company dated Hovember 30, 1950 which grew out of the study made for the preparation of this ease. X am satisfied that tha Railroad Company has been undercharging the Water Company for water furnished for many years. Ths basis for eharging the water util­ity which was adopted at the time the old contract was entered into In 1929 was never changed after it was initially established • This information was furnished to me by the representatives erf the Auditor's office who were at ths hearing. X was also vary much surprised to learn from them that in 1920 tha Railroad commenced eharging tha Lae Vegas Land and Watar Company #100.00 a month for all executive, legal