hln001175. Union Pacific Railroad Collection, 1828-1995. MS-00397. Special Collections and Archives, University Libraries, University of Nevada, Las Vegas. Las Vegas, Nevada. http://n2t.net/ark:/62930/d16d5sb4p
Los Angeles -- September30, 1952 Mr. A. E. Stoddard: (CC -Mr. W. R. Rouse -- Omaha Mr. W. H. Hulsizer -- Omaha Mr. R. M. Sutton -- Omaha Mr. Calvin Cory -- Las Vegas Mr. E. E. Bennett) I enclose copy of Mr. Bennett's letter of September 30, 1952, renewing his recommendation contained in his letter to me of December 4, 1951. That the water production facilities of the Railroad at Las Vegas be transferred to the LVL&W Company and that that Company divest itself of all properties other than its watar system. I recommend that Mr. Bennett's suggestion be given favorable consideration and that If, after taking into consideration the income tax problems involved. It is decided that the transfer should be made, the matter be progressed to a conclusion as promptly as possible. It is, of course, impossible to anticipate exactly what demands will be made upon us at the renewed hearing in Case 1207. However the City officials have long agitated the drilling of additional wells and the providing of additional storage facilities. It is quite reasonbale to assume that they will ask the Commission to require the Watar Company to provide facilities which will fit into the ultimate plans of the District. I do not think we should overlook the probability that the representatives of the District will cooperate with the City in this plan. I believe the engineer for the District has estimated taht the cost of a 30-million gallon storage reservoir would be $600,000, but it is my belief that the cost would substantially exceed that sum. Accordingly, we should plan our strategy to resist as effectively as can be done any attempt to require the Railroad Company to finance such extensive capital imporvements. We are arranging to have a competent water engineer testify in our behalf at the hearing and we expect to use Mr. Roy Wehe to testify to the substantial rate increases which would be required in the event such substantial expenditures were made. I also think we should resist in Court, if necessary, any order of the Commission which would require substantial expenditures for expansion at this time. Wm. Reinhardt Encl.