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Mr. Wm. Reinhardt 7. December 4, 1951 t h a t company. I t co u ld a ls o be a ccom p lish ed by t r a n s f e r ­r in g th e d i s t r i b u t i o n f a c i l i t i e s o f th e R a ilr o a d Company to th e Las V egas Land and W ater Company and have th a t com­pany t r a n s f e r a l l o t h e r a s s e ts e x c e p t w a t e r p r o d u c tio n and d i s t r i b u t i o n a s s e ts to a new c o r p o r a t io n . I th in k th e l a t ­t e r p la n hag a d v a n ta g e s . % The Las V egas Land and w a te r Company i s now a c t in g as a p u b lio u t i l i t y in th e d i s t r i b u t i o n o f w a te r and i t need n o t o b ta in th e a p p ro v a l o f th e Nevada P u b lio S e r v ic e Com­m is s io n f o r th e purchase o f th e w a te r p ro d u c tio n f a c i l i ­t i e s o f th e R a ilr o a d Company and th e co n tin u a n ce o f o p e r ­a tio n s as a p u b lic u t i l i t y . A new c o r p o r a t io n a c q u ir in g b o th th e p ro d u c tio n and d i s t r i b u t i o n f a c i l i t i e s would have to comply w ith S e c tio n 6137 o f th e Nevada Com piled Laws, . w hich r e q u ir e s e v e r y p u b lic u t i l i t y b e fo r e b e g in n in g o p e r ­a t io n s to o b ta in from th e P u b lic S e r v ic e Commission a c e r ­t i f i c a t e t h a t th e p r e s e n t o r fu t u r e p u b lic co n v e n ie n c e o r n e c e s s it y r e q u ir e s th e commencement o f such o p e r a t io n s . In c o n s id e r in g such an a p p lic a t io n th e Commission m igh t a t ­tem pt t o c o n t r o l th e o a p i t a l s t r u c t u r e and o r g a n iz a t io n a l setu p o f th e new company. By c o n tin u in g t o use th e Las V egas Land and W a ter Company as a d i s t r i b u t i o n company we would be r e a s o n a b ly f r e e from in t e r f e r e n c e b y th e Commis­s io n . I am c e r t a in t h a t th e Commission would a p p rove o f a t r a n s f e r o f th e p r o d u c tio n f a c i l i t i e s to a d i s t r i b u t i o n company, but I do n ot b e l i e v e we should g i v e th e Commis­s io n an o p p o r t u n it y to im pose c o n d it io n s on t h a t t r a n s f e r . A s u g g ested p la n i s t h a t we t r a n s f e r th e w a te r produc­t io n f a c i l i t i e s t o th e Las V eg a s Land and W ater Company, change i t s c o r p o r a t e name to Las V egas W ater Company and have th e company t r a n s f e r a l l o f i t s a s s e ts o t h e r than wa­t e r p r o d u c tio n and d i s t r i b u t i o n to a new lan d company h a v ­in g an a p p r o p r ia t e c o r p o r a t e name. Inhere a re c e r t a in prob­lems to be c o n s id e re d in making such a t r a n s f e r . I do n ot have th e f i n a l answer on many o f them and I th in k th e en­t i r e prob lem sh ould be g iv e n c a r e f u l c o n s id e r a t io n by a l l in t e r e s t e d p a r t ie s b e fo r e a d e f i n i t e d e te r m in a tio n i s made to go ahead w ith th e p lan w h ich I have been d is c u s s in g . M r. Renwick r e c e n t ly w ro te M r. Vehe a d v is in g him t h a t we in ten d ed t o make a recom mendation t o you c o n c e rn in g th e t r a n s f e r o f th e w a te r p r o d u c tio n f a c i l i t i e s and a s k in g him