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f & s f £ * f9i LAS VEGA—S ? i. WA—T —E —R? ? S-U —P? F?LY RECOMMENDATIONS (1) The investment of the LA&SLRRCo. In land, springs, wells, etc., west of the Las Vegas station grounds yields a gross return of about 10.5 per cent by reason of sale of water to the LVLandWCo. I therefore recommend that this property be left in the r a i l r o a d company. The facilities were primarily acquired and installed for rai l r o a d use, and the railroad water tank, shop, stockyard, passenger station, etc., take water therefrom, except for whatever w a t e r may be f u r nished direct from the so-called railroad well on the shop grounds. (2) I recommend that the LVLandWCo. continue to own and use ep at present its water distribution system, for the r e a s o n that operations are carried on with a substantial measure of profit, an d indications are that this condition will continue. During the last six years there has been a net return on the book value of between 17 an d 18 per cent (ex­cluding the operating exoense charges for replacement of w o o d pipe) and while 1942 will certainly show a reduction in the rate of return because of the very extensive enlargement of the distribution system wh i c h is planned, snd the heavy expenditures for w e l ls, etc., there should be at least a return on book value, while 1945 should show about 17# again, due to a full year's use ,of water by new customers. (3) The day may come v;hen we should sell our plant to the city of Las Vegas, but that time has not arrived. Our wa t e r rates are reasonable; our present service appears to satisfy, a n d so long as we 1 .