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m Los Angeles - Juno 10th, 19*t£ Mr* R. Vlppreoht: Referring to Mr. Jeffers * lottor of May 2$th, fils 199* concerning undercharges for wafer furnished in Las Vegas, and having particular reference to Mr. Jeffere* advice that you and I should approve any deviation from regular schedule charges, and that such deviation must not produce discrimination. I spent two days in Las Vegas last week, and among other things reviewed in detail with Mr. Bracken the matter of allowance for vacancies in auto courts, apartment houses and hotels, having in mind the paragraph In the Commissions rate schedule which rea&e as follows: Land and Mater Company make such appropriate vaoanoy allowanoe in monthly apartment houses, bungalow courts and auto camp services as shall be found to be unoccu­pied and that the monthly charge shall be modified accordingly, PROVIDED, however, that the minimum monthly charge shall not bs less than Six Dollars ($6.00) per month for apartment houses, Pour and JoAoothe Dollars ($4,505 for bungalow courts or auto cabins where three (3 ) or more of these plasses of service are maintained.* I submit the following comment: 1. While not specifically mentioned in the para­graph quoted above, hotels in the past have contended that their operation is similar to that in auto courts, and the Water Co. has made vacancy allowances for suoh facilities. I think this is proper. 2. A large number of hotels and auto courts are served by the Water Co., practically all of which oater to transients. Under present boom conditions these facilities are, in general, overcrowded from*Friday night to Monday morning, with a varying but substantial vaoanoy during the remainder of each week. To make the required vaoanoy allowanoe on an actual basis for each individual facility would mean review of eaoh con­cern's books, an operation the oust of which would, I believe, be prohibitive, and eertalnly would be most objectionable to the operators. To avoid the expense and objection, the Water Co. has in the past deter­mined 20% allowance ae fairly representing the average vaoanoy throughout the year. There have, however, been W.H.J. CD •IT IS FURTHER ORDERED that the Lae Vegas JUN1 1 1942