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V The above condition would obtain during 1929 with existing rates increased 225$; however, during 1930 additional rental to Railroad Company would increase to ta l charges to such an extent that p ro fit would only he $7,600. Revenue less expenses, not considering fixed charges, during 1928 amounted to $7,150.65, while during 1927 this f i g ­ure was $3,014.52. Should this increase he continued, a more favorable result would he realized under both statements 2 and 3. As set forth in previous correspondence, there is p o s s ib ility of las Yegas City deciding upon municipal owner­ship at any time we desire to increase rates or make any rad­ical charges in policy or rates a ffe c tin g that City. I f we are to discontinue former p olicy and increase the rates, it is my opinion that increasing fla t rate by 225$ and furnish­ing adequate water (at least for immediate future) w ill be more acceptable to the people and the Commission than going . on meter basis as cost to users would be less under that arrangement. In this connection, I b elieve we have a strong argument in statin g that i f we are not permitted to increase existing fla t rate, as above mentioned, it w ill be necessary to place a l l users on meter basis in accordance v/ith rate schedule ]?orm 14; however, it is my understanding that Com­mission can reduce th is rate. -5 -