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May 29th, made by C. E, Swann, Chief Engineer, and K. E. Darling, Superintendent, the Southern Wyoming Utilities Company, covering the water situation at Las Vegas, Nevada, as requested in your You will note that Messrs, Swann and Darling specifically, recommend the construction of an additional artesian well in order to meet the growing demand for water at Las Vegas. They further recommend the construction of a 16-inch cast-iron pipe line extending from the reservoir to Stewart Street, advising that that portion of -the cast-iron line between the reservoir and the old Tonopah highway should be constructed this year, the remaining construction to be done next year, if you desire to do so, the upper portion of the wood-stave line in very bad condition. At my request, Messrs. Swann and Darling developed additional informa­tion relative to investment, expenses end earnings of the combined properties of the Railroad and the Water Company embraced in their report. This tabulation, referred to as "Exhibit B", sets forth that the investment now carried by the Railroad Company totals $173,297.67, by the Water Company $89,8 5 1.29. The dis­tribution of expenses between the two companies is based on actual results for 1934 extended against the monthly results obtained in 1935- You will note that the Railroad received 211,373>UUU gallons of water in 1935, at a cost of $.01543 per M gallons. During the same period, the Water Company received 907,437,300 gallons, costing $.0403 per M gallons. Of this cost, $.01953 was paid to the Railroad Company, this payment,totaling $17,723-92, includes the items of 6 per cent interest-and 4 per cent depreciation on the