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Los Angeles, January 30# 1953 Mr. A. £. Stoddards (ee - Mr. V. H» Hulsiser Mr, R, M. Sutton Mr. V. R. Rouse Mr. E. E. Bennett) You trill reeall that I last called to your atten­tion in ray letter to yens of September 30# 195®# the sug­gestion that the water producticm facilities of the Railroad at Las Vegas be transferred to the Las Vegas Land and Water Company. X understand that this matter has bean given consideration by the various Interested departments in Omaha and that a conference was held at Omaha on December 16# 1952# concerning the matter. I have not learned whether a definite conclusion has been reached as a result of the consideration given to the proposal. I have been in touch with the Directors of the Dis­trict, and we can expect to receive very shortly from the District a proposal to purchase the water system, which will undoubtedly be satisfactory to us. I antici­pate that a bond election will be called sometime in the late spring or early summer of 1953* However 1 am not at all certain that the bonds will be approved. If the bonds fail# there will undoubtedly be an at­tempt made to require the Railroad Company to augment the water supply in some fashion. We cannot say the exact demands which will be made on us, but It is conceivable that the Las Vegas public might attempt to saddle upon the Uhion Pacific the responsibility of bringing water from Lake Mead. Por these reasons 2 believe that prompt consider­ation should be given to the proposal to transfer the water production facilities of the Railroad to the Las Vegas Land and Water Company and that the transfer be made before the bond election takes place. I am con­vinced that we would be in a better position to resist unreasonable demands for expansion of our facilities if the Railroad were entirely divorced from the water bus­iness than if the present divided operation is contin­ued. fSfcneHD WM. RMWfiARftl Wra. Reinhardt FES 4 m