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upr000153 114

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upr000153-114
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    Los Angeles - September 2, 194® MEMORANDUM FOR MR. BENNETTJ Query; Gan the Las Vegas Land and Water Company be compelled to extend Its facilities to serve water to customers at points beyond the limits of the City of Las Vegas? Assuming that it does so voluntarily for the limited purpose of affording fire protection to such customers, could the Company be compelled at some future date to furnish water for purposes in addition to fire protection? Scope of research; Patently, the answer depends upon the case and statutory law of Nevada, and search has been made through Corpus Juris, American Jurisprudence, the National Re­porter System Digests and citations to the Nevada Compiled Laws. I have been unable to find a Nevada case which throws light upon the problem. American Jurisprudence has been selected as a guiding text and reference is made to cases discussing the general law in the belief that such expressions represent the logical view and accepted rules applicable under the circumstances. Corporate and franchise background: As will herein­after appear, much depends upon thecorporate and franchise back­ground of the Land and Water Company, I find that the Company was founded primarily for the development of a townsite at Las Vegas and that its water service was subordinate to that princi­pal function. By its original Articles of Incorporation, the Company declared one of its objects and purposes to be "to own, operate, manage, control and sell water, water rights, and water systems for municipal, agricultural, household and other purposes in the State of Nevada", In 1917, consideration was given the question whether it would be desirable to amend the Articles of Incorporation to permit the Company to hold land, water and other property outside the State of Nevada. As a result, in that year the Articles of Incorporation were amended by substituting for the phrase "in the State of Nevada" a phrase reading "at any place or places within or without the State of Nevada". From the foregoing, it appears that there was nothing in the corporate organization of the Company which was designed to limit its operations to the City of Las Vegas.