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W»m Reinhardt 3. September 30, 1952 iceordingly X recommend: 1* . That the Railroad Company immediately transfer to the hTUiM Company at book value the 570 acres of land and tha water production fa* cllitiaa which tha District la now negotiating to b«y| 2* That tha Railroad Company grant a 11* cense, subject to termination upon short notice, to tha LVtfcW Company for pipe lina and power lira rights of way across tha retained lands of tha Railroad Company? 3. That tha Water Company immediately start serving industries now served by tha Railroad (axelading perhaps tha P,F»1.) by proper tariff publication* X understand it will be necessary to construct a pipe lina a* cross tha Railroad yards to connect tha P.F.3. to tha shop well, so it night ba necessary for • the Water Company to furnish water to tha P. F, I* during an iatarln period* 4* That?the tea togas land and Water Com­pany execute a mortgage upon its entire water system in favor of the Railroad 'Company to se­cure advances which tha Railroad Company has already made to the water department and which it will have made by the transfer of its faell* itiea to tha hatar Company. It appears to me that Interact on such 'advances should ba charged* 5* That tha existing contract between the Railroad and the LYL&b Company ba super­seded by one providing that tha Railroad Com­pany will maintain and operate tha water pro* duction facilities at actual coat of labor and materials plus tha present management fee.This would eliminate tha present interest charge and income tax allowance billed to tha ITJUkW Company* If it were decided to have the main­tenance and operation crews in the water field on the payroll of the 1VX&W on itself rather then the Railroad payroll, the only charge which the Railroad would make to the Water Company would be for management cervices and interest on the advances*