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Los Angeles, October 3, 1950 Mr. Clarence M* Bates and Mr* R. L* Adamson: WM. R. 80-5 OCT 3 1950 / / (co - Mr* !$®u Reinhardt Mr* Boy Well© Mr. B. L* Bertolaeei) £t has coma to my attention that LVL&WCo. owns pipe lines at Las Vegas which occupy property of tbs Railroad which there Is no agreement between those parties eCndo mpfaonry w fhoirc h LYL&vCo* pays no rental to the Railroad Company. In connection with oar Impending rate inerease ease involving the water facilities at Las Vegas, it is essential that the 'aster Department pay the Railroad fair compensation for all services end facilities famished by the Railroad Company to the Water Company. Z suggest that yon Jointly work up the data required for the preparation of a license agreement running fro® the Railroad to the LVX&WCo. under which the LVL&WC©. will, pay the Railroad annually a fair rental for the use of all Railroad property or rights of way occupied by LVUtWCo. facilities, we should have this information as soon as possible so that Mr. Bertolaeei can include the rental in the estimate of LVXAWCo, operating expenses In the study which he is now completing. Zt has also come to my attention that there is no land in the rate base of the LfL&WCo. nor any value included therein represeating the portion of the rooming house at Las Vegas occupied by the office of the XVXfcWCc* It seems to me that it would be proper in the operating expense estimates which are being made by Mr. Bertolaeei to include the fair rental value of the land occupied by a tool building of LVL&fCe* and the fair rental value of the office space occupied by the Water Department in the LVL&WOo. rooming house* I would appreciate it if Mr. Bates would furnish to me and Mr. Bertolaeei an estimate of the rental value of the facilities mentioned* OCT 3 1950 L. C. C.