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2 - evailable records have made possible. With the preparation of "Original Cost* and "Replacement Coat” estimates by Mr. Hulsizer’s office, it is felt that it will probably not be necessary to go to the Omaha office, provided the additional material that is being requested by Mr. Beinhardt is furnished. Probably supplemental requests will likewise be necessary. With this information, and material that is expected to be obtained locally, it is believed the necessary Results of Operation Study can be set up, along with an estimate of the added revenues needed, and the change in rates required. I am planning on spending a day or so in Las Vegas so as to have some familiarity with the physical system, as well as to discuss with Mr. Folger at first hand the operation of the properties. ESTIMATED RESULTS OF OPERATION (Tentative): These results may be summarized as follows: 1949 1950 Recorded Adjusted Grig. Cost R.C.H. Revenues Operating Expense Cost of Water Operation General Depreciation Taxes Other Than Income Income $202,390 $202,390 105,764 104,313 23,840 23,840 23,270 34,646 7,400 8,950 21,300 21,300 7,910 3,550 $214,000 114,068 25,000 35,700 8,95© 25,000 2.007 $214,000 134,024 25,000 35,700 9,800 ^ , 25,000 Total Operating Expense Met Revenue flS9,4S4 five,>9^ 12,906 5,791 $210,725 3,275 $229,524 (15,524) Rate Base late of Return $508,700 $589,000 2.5* 0.98* $638,200 0.51* $644,100 This summary estimate treats the LA&SL R.R. Company in the sale of water to Las Vegas Land and Water Company as a separate cor­poration and, further, Federal Income Taxes have been set up< on a separate return basis. A 6-3/4^ return is reflected in these cost figures except for 1949 recorded where 6* is ussdo Another set—up