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**£«» The chief purpose of the pipe line and the facilities at the spring is to ensure a water supply for the Railroad; all other rights and privileges granted are made secondary and subordinate, a* the proposed agreement evidences, Rtill, in apportioning upkeep expanses Las Vegas land and Water Company is put upon a plane of equality with the Railroad because it receives a surplus flow of 2, 820,000 gallons per day (much of which also becomes a surplus that produces no revenue} and is made to bear 77% of such expense* An arrangement of this nature can hardly be called equitable* The Water Company incurs a monthly deficit of more than $4000*00 at present. This is brought about principally by the payment of taxes on East Yard property to which there is no offsetting income* In Spite of every effort made toward economy, the low rents charged in has Vegas Rooming House bring barely enough revenue to cover expenses* The water system at Yermo has thus far given no income, all collect ions having been retained by the Railroad* Depreciation of Company Cottages in has Vegas has progressed to an extent that will soon necessitate extensive repairs, and the resultant expenditure will absorb the rents for some time thereafter* How to add another to the units of the Com** pany not paying a return is disturbing, from an operating viewpoint* However, these facts are set forth less as an objection or protest than as an explanation of conditions* The course decided upon has doubtless been fully considered and deemed politic for the Railroad, and I will approve the agreement if you return it with the recommen­dation that I do so* Yours truly, W a lte r R* B racken, V ic e P r e s id e n t and A gen t* s