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i y ^ ~ a F O R M 3510 7-46-3M U N IO N P A C IF IC R A IL R O A D C O M P A N Y N C A L V IN M . C O R Y , V GE NE RAL AT TOR NEY V Mr. E.E. Bennett: ( cc - Mr. F E B L A W D E P A R TM E N T ^ September l & t h , 19^8. 114 N O R T H T H IR D S T R E E T L A S V E G A S , N E V A D A D.F. Wengert. with copy of letter from Mr. Joe Martin. ) Supplementing my letter to you of July 28th, I have now received the enclosed communication dated September 1, 1S&8, from Mr. Joe Martin, district attorney of Lincoln County. You will note that he outlines the transition from the Amalgamated Pioche Mines and Smelters Corporation to the Pioche Water System, indicated that the Pioche Water System is merely a name of convenience adopted by the receiver and therefore that the Pioche Water System, as receiver, is bound by the contracts executed by the insolvent corporation. I am therefore still of the opinion that the contract of January 15th, 1909, expiring January 15 > 1959> is still in full force and effect and that the Bailroad cannot be compelled by the receiver to pay for water service at Pioche. There is an additional thought which I believe should be considered by our officers. Because of the inadequacy of the water syster in Pioche prior to the receivership of the Pioche Water System, and because the district attorney and those interested in this water system believe the inadequacy resulted from favorable contracts for free water service such as the Bailroads* contract of 1909, I believe a proceeding could be brought before the Nevada Public Service Commission to declare the 1909 contract invalid on the basis of discrimination without reasonable classification. If such a proceeding were instituted I believe the Public Service Commission would require the Bailroad to pay for water service Just as any other commercial user talcing service from the receiver, Pioche Water System, or the local public service organization which might succeed to the receiver. For the foregoing reasons, I again suggest that the solution is based upon policy as indicated in the last paragraph of my letter of July 28, 19WS and the last paragraph of Mr. Wengert*s letter to you of August l8th, 19^8. CMD/b Sincerely, CALVIN M. CCBY