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Mr. W. R Roues 4* November 11, 1952 plation of owning, controlling, or operating any public utility shall, before beginning such operation or continuing of operations, or construction of any line, plant or system or any extsn- , sion of a line, plant, or system within this state, obtain from the public service commission a certificate that the present or future public convenience or necessity requires or will require such continued operation or commencement of operations or construction I think it would be very undesirable for the Union Pacific to acquire the distribution system at Las Vegas and to operate it for any period of time, we would not want the Railroad Company to undertake the responsibilities of a water utility and be subject to a dsmand for greatly expanded service. However if a deal were consummated with the District, it might be possible to have the transfer of the distribution system mads through the Railroad Company for tax advantages. This should be done only if the Railroad acts as a mere conduit of title so that it does not engage in the water utility business for any substantial period of time. 1 am not certain that the Public Service Commission would approvt such a transaction, but 1 believs that we should be able to induce the Commission to approve it. In the event of such a transaction the LA&SL and the UPRR Co. would have to file a joint application with the Commission, the LA&SL seeking to discontinue service and the Union Pacific seeking to acquire the distribution system and immediately discontinue service by selling it to the District. If such an order were obtained, the various transfers could be mads almost simultaneously. There is no provision in the Nevada public utility law such as is found in most public utility laws which prohibits a sals of public utility property without the consent of the Commission. However the provisions I have just mentionad give the Commission some jurisdiction over the transfers of public utility property. / Mr. Sutton’s recommendation is that the transfer of the water production facilities not be made unless ths