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Mr. Lee 8. Scott 3 November 27, 1951 You will recall that the Commission in its opinion of August 24, 1951, in I&S Docket No. 127 found that the Water Company was entitled to increased revenues of ap­proximately #25,000 and that the rates which it prescribed were Intended to return during the test year 1951 approx­imately this amount of additional revenue. Under the reve nues received by the Water Company from the rates pre­scribed by the Commission the Water Company is suffering a substantial net loss. Under such circumstances we can see no justification for reducing any rates. Furthermore there can be no justification for adjusting the rates of the motel operators without at the same time adjusting the rates of all other rate payers at Las Vegas so that in the aggregate the Las Vegas Land and Water Company will be permitted to earn a fair return. I respectfully urge that the Commission not issue an order requiring the Water Company to put Into effect the rates for motels and bungalow courts which are shown on the revised sheet PSON No. 2 sent me with your letter of November 23, 1951. Mr. W. H. Johnson, Manager Las Vegas Land and Water Company Las Yeggs, Nevada Mr. Tim Nollner Hitohln* Post Motel Las Vegas, Nevada Very truly yours E. 2. Bennett SCR:MSB co - Mr. Wm. Reinhardt Mr. Calvin M. Cory