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Los Angeles i| March 16, 1950 File: 174-2 \ Mr. C.A. Cunningham — Salt Lake City; (cc: Mr. F.C. Paulsen Mr. diaries M a n s ) Again referring to your letter of March 6thwto Mr. Charles Adana, copy to me, .relative to agreement with Lincoln County power District Ho. 1, covering furnishing of water for railroad, rase at Pioohe, Nevada, and my letter to yow of March 7th: I sent yen a copy of ®y letter to Mr. Martin dated March 7th, Mr. Martin being District Attorney of Lincoln County, and ! am now attaching a copy of his reply. It is ay suggestion that this matter be taken rap with Mr. E.C. Moods, who received a copy of Mr. Martin*s letter and who apparently represents the Lincoln.County Power District, to ascertain whether the Power PIstrict has any schedule of water rates and see If some under-' standing pan not be reached with the district culminating In a new contract between the railroad and the district for the furnishing of this water. % think this would possibly contribute towards friendly relations with the ploche people and would probably be the Amplest way of bringing this .matter to a conclusion. • Presumably technically, we should formally terminate the old agreement of 1909 between the Hevada-Utah Mines and Smelters Corporation and the Ohio-lentucky Consolidated Mining Company on the one hand and the Callemte & Pioohe Railroad Company on the other and it may be possible that in the deal between the Lincoln County Power District and the Amalgamated Ploche Mines, this contract was taken over by the Power District. If so, the Power District could terminate it if It so desires and if not, 2 think we might pretty well contend that it would never be sustained in the event any proceedings were started before the Nevada Public Service Commission to declare it invalid on the theory that it was clearly discrimination in water rates. However, these suggestions are of.course, one for you to kindly determine after & discussion has been had with representatives of the Lincoln County Power District. E. E. Bennett