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1931. These rates, an example of which Is found In the monthly charge averaging two dollars for a residence, are not considered excessive by the residents, and In fact they compare favorably with the charges In other Interior cities of the southwest where comparable desert heat conditions are found. The LVLandWCo. operates In Las Vegas under a fifty y franchise granted February 21, 1930 (Audit No. 7641). Income from and cost of operation of Las Vegas water gupply.L The attached statement presents a 12 year summary of the LVLandWCo. 1s income account, Insofar as It Is related to the Las Vegas water supply plant, including revenue from sale of water and miscella­neous revenue; operating expenses (setting forth separately depreciation accruals and charges under work orders for renewal of water mains), pay­ments for rent of LA&SLRR springs, wells, transmission lines, etc., and taxes paid. Depreciation upon the original LVLandW. plant was accrued at ratee which, by the close of 1920 had, with the exception of $746.32, equalled the amount recorded in investment account. Accruals of depre­ciation then ceased until 1928, when a rate of 2 % per annum was approved for cast Iron pipe laid in the preceding year. The fact that investment account had been increased by the sum of $3,540.88 In 1924, representing additional wood pipe laid,-appears to have been overlooked, as this sum was not Included in the amount on which depreciation was thereafter ac­crued. Depreciation accruals at the rate of 2 % per annum were continued until the close of 1940, being applied to the investment in the short­lived pipe lines acquired from Hawkins, Craner and Parkview Companies as - 8 -