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Mi*. T. Boekesi (cc - Mr, Mr. Mr, Mr. Omaha - March 3703.1 A, E. Stoddard - Copy Mr .Reinhardt ‘ s letter attached. Wa, Reinhardt - Los A n g e l e s ^ E. E. Bennett — Los Angeles R. M. Sutton) 1 am handing you herewith a copy of Mr. Reinhardt*s letter to me of March 20, 1950, his file 1-7334, in regard to an informal conference Messrs. Bennett, Renwiok and Wehe had with the* Nevada Public Service CoMmisalon in regard to the exclusion from rate base of the LVL&WCo. of pipe lines and facilities “donated* to the Water Company and in which answers to four questions are requested. I have asked Mr. Sutton to furnish answers to the questions raised, I am at a loss to understand why we apparently are going along with the Commission In admitting that it is proper to exclude these so-called “donations* from the rate base, particularly in view of the fact that this may well be just a preliminary to the purchase and taking over of the LVL&W«a property by the District. Las Vegas Water Our ownership of these pipe lines is not open to question, and they are used in furnishing water to the public. Therefore, neither the original cost nor value should, In my opinion, be excluded from the rat® base, and clearly not from the value of the property in connection with its sale, If consummated. It is ray opinion that if the LVUfeW?* water oroper-ties were to be taken by condemnation, the value to he fixed by the Court as a result of an appraisal would embrace all the property owned by the company and used in service of the public, irrespective of how It wag acquired. If I am incorrect in ray position with respect to the foregoing, will you please advise me; otherwise, I think our people, who are to present this case, should be instruc­ted to take exception to, and certainly not to acquiesce In the proposed exclusion of these so-called “donated* pipe lines from the rate base and value of the property. In this connection, please see ray letter to Mr. Reinhardt of December 1, 1949,, w : ?~r j MAR 81 1950