upr000105 325

t Mr. Roy A. Wehe -2- November 15, 1951 I don't went you to spend a great deal of time at It, bat 1 would appreoiate it if you would give me your ideas as to the best capital structure, from a rate standpoint, that could be set up for a separate Water Company at Las Vegas having com­plete ownership of the production and distribution facilities* If you have any other suggestions concerning the advisability of the plan 1 am proposing, X would appreoiate having them. There is one difficulty in transferring the water pro­duction to the distribution company. The Railroad serves a number of industries with water at Las Vegas on meter basis. It might be difficult to establish a suitable flat rate for such companies if they were served by a public utility, particularly the ice plant of Pacific Fruit Express • Also there would probably be some organization problems. As you know, various crafts on the Railroad perform service in the water field and it might be difficult to transfer their duties to a small force maintained by the Water Company. If the Water Company had Its own water field force, I doubt very much if the forces being maintained by the Railroad, which have previously performed work in the field, would be diminished to any extent. I suppose it would be entirely pos­sible for the Water Company owning the water production facilities to contract with the Railroad to furnish the necessary labor in the field and thus not disturb the existing set-up. X will appreciate anything you have to say. Kindest personal regards. Sincerely yours, Edward C. Renwlok \ ECR:LW