upr000306 32

JD G. MARTIN D i s t r i c t A t t o r n e y o f L i n c o l n C o u n t y P I D C H E , N E V A D A September 1, 194$ Mr. Galvin M. Cory, General Attorney Union Pacific Railroad Company 114 North Third Street Las Vegas, Nevada Dear Cal: This is in reply to your letter dated August 2$, 194$, requesting information concerning the Pioche Water System, and the contract for water between the Union Pacific Railroad Company and the Amalgamated Pioche Mines and Smelters Corporation. I didn’t receive your previous letter. For many years the Amalgamated Pioche Mines and Smel­ters Corporation has operated the water system of the Town of Pioche. For the past several years the company has pur­sued a policy of refusing to do anything towards maintain­ing the system, but has required their superintendent to send the proceeds from sales of water direct to their of­fice in New York with the result that the town has suffered severe water shortages which have become more acute as time went on. Early in this season through neglect, the system practically ceased to function and with the approv­al of the Public Service Commission and the Attorney Gen­eral’s Office I applied for the appointment of a receiver to take charge of the operation, supply water to the town and collect the revenue for that purpose. The receiver took over the system May 6, 194$, and has operated it ever sine e. The proceeds from sales of water have been insufficient to make the capital repairs which were necessary to keep the town supplied with water, and the receiver has’ been helped in that respect by advances from the Town Fund to the limit of the County Commissioner’s ability in that regard, and also funds have been advanced by certain public-spirited citizens of this town. Because it was undesirable to operate the receivership under the name of the Amalgamated Pioche Mines and Smelters Corporation, and to avoid confusion, the name of Pioche Water System was adopted by the receiver during his temporary management. Arrangements are going forward by which it is hoped and expected that the Pioche Water System will be taken over by one of the local public service organizations which is amply financed to install necessary improvements and as soon as these arrangements are completed it is expected that the receiver will be discharged. His appointment was intended to be only temporary and for the purpose of dealing with the immediate emergency caused by the breakdown of the water supply.