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FORM ‘2 1 9 1 -B 1 0 47 -7 5 0M Time F^fd UNION P A C IFIC RA ILRO A D CO M PA N Y TELEGRAM «• 2 ? Item 3 : L is a d vanta g e to r a ilr o a d i f d e c la re d a P u b lic U t i l i t y would be th a t i t would be su b je c t to any o rd e rs o f PSG which, co u ld be su sta in e d in co u rt o rd e rin g i t to in c r e a se w ater p ro d u ctio n which might co n ceiv ab ly be a demand to fin a n c e th e b rin g in g in o f la k e Mead w ater. A lso i t could not d ie - continue w ater s e r v ic e w ithout consent o f th e Gommisslon. Item kAi BPIfi cou ld not e x t r ic a t e i t s e l f from water b u sin e ss w ithout consent o f Gommisslon. Under p re se n t circu m stan ces do not b e lie v e i t could, f in d o u tsid e buyer f o r p ro p e rty a t a reaso n ab le p r ic e even though Gommisslon would consen t. Item h i* At p re se n t le v a d a Lav does n et s p e c i f i c a l l y p ro v id e f o r approval* o f Commission f o r s a l e o f U t i l i t y , bu t M i l b e fo re L e g is la t u r e a t p re se n t time i f p a sse d would so re q u ir e . I f UP ware d e c la re d a U t i l i t y i t would o n ly h are been so d e clare d to fo rc o / i t to augment w ater su p p ly . Under such circu m stan ces | would n a tu r a lly expect Gommisslon to r e s i s t any attem pt by BP to av o id i t s o b lig a tio n s by t r a n s fe r r in g i t s w ater p r o p e r tie s to a su b sid ia r y which had o n ly such f in a n c ia l back in g a s i t s p aren t co rp o ratio n would g iv e i t . BIB a g re e s with the above. 1-48 SGI/#