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L A S V E G A S L A N D A N D W A T E R C O M P A N Y C A R L R . G R A Y , P r e s i d e n t . O m a h a . Ne b r . F . H. K N IC K E R B O C K E R , V i c e -P r e s ., L o s An g e l e s . Ca l . C . H. B L O O M , S e c r e t a r y . L o s An g e l e s , C a l . C . C . B A R R Y , Au d i t o r , L o s An g e l e s . C a l . W . F . T R U E L S E N , T r e a s u r e r , Lo s An g e l e s . C a l . C H A R L E S A D A M S, Ag e n t . L o s A n g e l e s . C a l . W A L T E R R . B R A C K E N , V i c e -P r e s . a n d Ag t L a s V e g a s , Ne v . T . E . C O N N O L L Y . As s i s t a n t Ag e n t L a s V E G A S . N E V . Omaha * March 17, 1932, Mr. F* H* Knickerbocker, Vice President, Los Angeles, California, Dear Sirs The water operations of the Las Vegas Land and Water Company at Las Vegas, for the period October 1 to December 31, 1 9 3 1 , since the Increased rates have been In effect, show a net profit of #3,692, which is at the rate of 18 per cent per annum on the investment. However, during this period the expenditures for maintenance were quite low, averaging #125 per month, and any large expenditure for pipe line renewals would reduce materially or eliminate the present margin of profit. During the period January 1, 1920, to September 30, 1931, a net deficit of #29,994 was incurred, after including in expenses interest on investment at 6 per cent, and restating for the years 1927, 1928 and 1929, payments to the LA&SL for water on the basis now in effect. The attached statement gives the details of each year*s operations. The increased rates granted by the Public Service Com­mission, effective October 1, 1931, average approximately 00 per cent higher than the rates in effect prior thereto. The application for higher rates was to have been made for a 10 0