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of these facilities began in 1905 and the last was a 24 inch cast iron pipe laid in 1929. Inasmuch as the railroad has an item of expense labeled "Reserve for Replacement" for the year 1930, we are of the opinion that a reserve for this item' has been laid away annually. This item calls for 4#. We are of the opinion that almost all water facilities have a useful life of fifty years, which reduces this item to 2#. Taking this amount as a basis for retirement reserve we find that since 1906, to and including 1930, that #12,007.62 has been returned, leaving a pres­ent day valuation of f165,140.26. Using this amount as a fair value of all railroad facilities we find that #14*455.73 per year, or #1,204.65 per month, to be a fair rental which is shown as follows; Water used during 1930; Railway Company, including Pacific Freight Express 283*325,825 gal.-32.75# Las Vegas Land & Water Company 581,867.800 " 67.25# Total “ 565,1931655" gal. 106 .oSjT Chafes incurred during 1930: Interest at 6# on value of #165,140.26 #9*908.41 Reserve for Replacement at 2# on #177*147.88 3,542.95 Insurance 26.00 Tazes 3,100.09 Maintenance & Operating Expense 4,918.06 Total '#21,495.51 RE VALUE OF WATER RIGHTS Measurement of all water flowing from all sources was measured February 10, 1931, and was found to be 9*698 bubic feet per second, or 6,280,000 gallons per day. Through the State Engineer’s Office the railroad company has appropriated 2.5 cubic feet per second; Ins Vegas Land and Water Company 2.3 cubic feet per second; and 3*32 cubic feet per second was appropriated for a farm owned by the Las Vegas Land and Water Company. In the year 1930 Las Vegas Land and water Company con­- 4 -