Correspondence from L. A. Barnes (Las Vegas) to W. H. Hulsizer (Omaha), October 12, 1949

Mr. W. H. Hulsizer - Omaha. Las Vegas, Nev., Oct. 18, 1949. Cy - Mr. A. E. Stoddard, Omaha. Mr. Wm. Reinhardt, Los Angeles. At informal meeting held in Las Vegas today, with the members of the Las Vegas Water District, to discuss the possibility of the District acquiring the water producing facilities of the Railroad Company, and the distribution facilities of the Las Vegas Land & Water Company, the following were in attendance: Harry J. Miller Tom Campbell Spencer Butterfield James Cashman Wm. Peccole Wendall Bunker Hugh Shamberger Harry C. Jameson A. E. Cahlan Messrs. Grayson and Spangler Pres., Las Vegas Water District Vice Pres., Las Vegas Water District Secy., Las Vegas Water District and Pres., Las Vegas Chamber of Commerce Member Las Vegas Water District Las Vegas City Commissioner Las Vegas City Commissioner Asst. State Engineer - Nevada Artesian Well Supervisor for Las Vegas Valley Member Colorado River Commission, and Managing Editor Las Vegas Journal. Representing Property Owners' Association Representing the Las Vegas Land & Water Company, and the Union Pacific Railroad Company, were: Wm. Reinhardt E. E. Bennett L. A. Barnes R. A. Blonde W. H. Johnson The Water Board was very insistent for a tentative figure at which the property owned jointly by the Water Company and the Railroad Company devoted to the production of water, could be acquired. While no firm commitment was made for the reason it could not be definitely determined how much of the properties the District might acquire, it was tentatively stated that the value would be within ten percent, either upward or downward, of $2,000,000.00 Spokesmen for the Water District fully appreciate the difficulties attendant to financing the purchase of the property and bringing in water from Lake Mead. It is expecting a facility report from Greeley & Hansen, which made it necessary to give some approximation of the value of our water facilities. In the discussion, the District seemed to think it would be necessary to finance a project of about $12,000,000.00 to adequately meet the demands of Las Vegas. This emphasizes the inadequacy of the present rates being charged for water in Las Vegas, and the inadequacy of our return on the value of our water facilities. Manifestly, this attitude on the part of the Water Board will further support an application for increase in rates which Mr. Reinhardt has in mind should be applied for at an early date. L. A. Barnes.