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Mr. Walter R. House 3 January 10, 1952 stand that it is Mr. Hulsiser*® suggestion that the facilities of the LA&SL and LVL&W Company be transferred to the UP'RR at once, but that they only be transferred to the Union Pacific at the time the Union Pacific is ready to make a transfer of the system to the District. I think it would be undesirable for the facilities to be transferred to the Union Pacific at any earlier date because 1 do not believe it Is desirable for the Union Pacific at any time to actually conduct operations as a distributor of water. In order to do so it would have to obtain a certificate of public convenience and necessity from the Public Service Commission, and I believe the Public Service Commission would be very suspicious of any attempt by the Railroad Company to incorporate the distribution system in the properties of the Railroad Company. The Commission would immediately jump to the conclusion that the Railroad Company was attempting to bupy the water distribution system in the Railroad properties for some ulterior motive. If all of the transfers were made at the same time, we would not face this problem. Mr. Hulslaer suggests that the LA&SL convey to the Union Pacific all of the land necessary for the operation of the Water Company west of its main tracks except the area occupied by the shop grounds and facilities, but including the frontage on Charleston Boulevard. It would appear to me that if the water system were to be donated to the District, it would be best to donate as little land as possible. I would think that the only land which should be donated would be the land immediately surrounding the wells and reservoirs and a right of way for transmission lines to the distribution system east of the tracks. This may, in fact, be Mr. Hulslzer's idea. At the time we presented our evidence in the rate case we designated 679.42 acres of land in the vicinity of the wells as being water bearing land and excluded from the proposed rate base all land lying east of the water field and west of the tracks constituting some 551 acres of land. I believe that much of this exclud-