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LINCOLN COUNTY POWER DISTRICT NO, X PIOCHE NEVADA April 6, 1950 Mr* G, A, Cunningham, Supt. Union Pacific Railroad Department of Operation 205 U.P.R.R, Passenger Depot Salt Lake City, 1, Utah Dear Mr* Cunningham I Your letter of April 4, 1950, addressed to Lincoln County Power District No, 1, Water Department, has been re** ferred to me as counsel of Lincoln County Power District, for reply* y* It Is believed that the following information will be useful In arriving at an agreeable understanding between the Railroad Company and the Water Department of the Power District, In previous letters, In which I replledt to the inquiry of Mr* Calvin M* Cory, counsel for the Railroad at Las Vegas, and to Mr, E# E# Bennett, General solicitor at Los Angeles, Calif,, I explained at some length the various changes which have been brought about in the management of the' water system at Ploche, In case you do not have those letters, it might be well to say that the water system at Pioche was from the year 1872 up until the year 1948, In the control of the Amalgamated Pioche Mines and Smelters Corporation and Its predecessors. During all of this time the management appeared to regard the water system as a subsidiary enterprise connected with Its mining interests. Of late years the management was directed by a small group of directors in New York, with all the incidents of an absentee landlord proposition* Water charges were collected and sent to New York* Practically no money was expended upon the water system, with result that It totally failed in the summer of 1948 and the Town was without water# trader these circumstances the Board of County Commissioners, which is the governing Board of the unincorporated Town of Pioche, went into the District Court and had a Receiver appointed. This Receiver, with public money, debt, contributions, and otherwise, succeeded In putting the water system Into fair workable shape, and in the Fall of 1948, Lincoln County Power District No. 1, which is a i o o a l ^ ^ c i p a l corporation, took over the system by obtaining for #20,000.00 a 99-year lease from Amalgamted Pioche Mines and Smelters Corporation, paid off the debts of the Receiver and spent an amount roughly