upr000267 24

U22 West Sixth Street Moveaber 29, 1950 Mr. H, 0 , Woodward, Manager Municipal D ept., fieary Ite^berg & Coapnsy, 11 Scat PonatiL*tea S treet, F.O. Sex 5152, Sneson, Ariaoaa. having seat out 'brochure* re la tiv e to the Las Togas water property at noted in your le tte r o f K©renter 27th. end teat out is in the nature o f sap a end inventories o f the phyai-* ce l properties o f the Veter Ceapaay which aa here supplied to the M strie t Saglnser fo r hi a use in our p ossib le aegotiations fo r ta le e f the water u t ilit y to tho d istrict* tho fla t rat# state law, in other word*, the uee o f staters la prsa-en tly prohibited by state..lav. would intereat a private buyer at th is tine* at such a purchaser would he faced with the p o s s ib ility o f oondesaetien by the Water M at r io t , and under those conditions would probably not be able to ju s tify a p rice vklda. would be o f in terest to the Water Coapaay. Tho present rate o f return baaed on the existin g water rates l i t t l e nere than pays the operating oosto o f the property and w hile we are preparing to f l l o application fo r an lnoroate in these raise I t would not appear that an outside purchaser would be in terested un­t i l the aaount o f lnoreaae allowed had been sure d e fin ite ly deter-ained. J I t would be ay opinion that i t w ill be at lea at another BCG-Hr. S. 1 . H uleiser Copy Mr. Woodward’ s le tte r Hoveaber 27th Bear Mr. Woodward* X ini afra id you huv® been w ielnforaed with regard. to our The only data o f th is character Which has been prepared Xn answer to your question, there has been no change la X con tee l i t t l e in the Lac Tessa water situ ation that < h | ^ intaraat to outsldo investors is attached. V P fSfcn«S> J jpM. REINHARDT