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( ML O ’ *c 05 itfcyv Mr. Walter R. Rouse: Mr. W. H. Hulsizer Mr. R. M. Sutton Mr. Calvin M. Cory) I have a copy of your letter of December IS, 1951« to Mr. Stoddard referring to the suggestions contained in my letter of December 4» 1951» to Mr. Reinhardt re­lating to transfer of the water production facilities of the Railroad at Las Vegas, Nevada, to a separate dis­tribution company. At the present time my views as to the questions which you raised in your letter upon which you desire my comments are only tentative. However X am writing you now so as to suggest that an investigation be made by the proper departments as to the feasibility or tne Railroad Company*s developing its own water supply if the transfer of the water production facilities locat­ed in the water field which serves domestic water to the City of Las Vegas is consummated. My present view is that there would be some diffi­culty in making a contract whereby the distribution com­pany could furnish the Railroad Company an assured sup­ply of not less than 2.5 cubic feet of ^ r p e r s e c o n d at cost. The Railroad*s appropriation of 2.5 Jubic feet of water per second relates to Well No. 1 in the water field, which would be sold to the distribution company, and the distribution company would become the operator of the well and the transmission system through which the water would be delivered to the Railroad Company. Since the distribution company would be a public util­ity. I doubt if it would be able to make a valid con­tract whereby it could furnish a ** cpoesrts onwsh icshe rwvoeudl db yb et hep arsaammoe unutt itloi t*y. * S*Ufe*h a* Co*nwt*r~a!c*+t would he subject to the claim that it was dxscrimina^“ tory and in violation of the statutes whicll{.prohibit a utility from charging a greater or less compensation DEC 24 1951 L» C . O. r