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Los Angeles, September 30, 1952 80*12 Mr* tfta* 8 *inherits You will recall that it my letter to 7 0 a of Decem-bar 4, 1951* I reeosBBended the transfer of tho water pro­duction facilities of tha Railroad at Las Yagas to ths Las Yagas Land and Water Company, I bailors final con­sideration ©f this suggestion was deferred because of an alternate suggestion for disposition of the entire water system at Las Yagas made by Mr* lulsieer and because of the negotiations for sale of the properties to the Las Yagas '/allay if&ber District* which hare now resulted la a tentative agreement to sell the properties to the.Dis­trict for two and a half million dollars subject to cer­tain credits and adjustments. 1 sue again raising the question of transferring the water production facilities of the lailroad to the water Company at this feists because of the situation which facss us in herada futile Service Commission Case ho* 1207 in­volving the adequacy of the water supply furnished by the LVL&h Company at Las Yogas* Tou will recall that this ease was initiated In august, 1950, on the complaint of the City of Las Vegas, and that after a partial hearing In September of 1950 the case was continued indefinite-ly until reopening was requested by the City, with the understanding that pumps would he placed on 'wells i, 1 0 and 1 1 to secure an additional supply of water during the peak periods of consuaption during ths sumter months* The City has requested the reopening of thie case, and it Is expected that the Commission will set it for hearing some tine In lorenhor of this year* 1 have Just returned froa Las Vegas, where X con­ferred with this representatives of the District* They have furnished me a tentative set of plans showing the proposed improvements to be constructed by the District* One such Improvement is the construction of a 30-million gallon reservoir on land to the west of our existing wa-t- isr field* 1 am inclined to believe from discussions with the District representatives that the District will