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Mr. tt| Reinhardt 6. December 4, 1951 that a foreign corporation conveying gas over the state line !J| delivering it to t distributing corporation which it con­trolled was, under the evidence In that case, a public util­ity and subject to regulation as Buch. > The mere fact that a product is sold at wholesale does not prevent the seller from being declared a public utility if the regulatory statute is broad enough to include whole­sale sellers, hn example of the regulation of such business Is the Federal Fewer et, Title 16 U.3.C., 324 et seq., which provides for the regulation of the business of trans­mission o f electric energy In Interstate compares and the sale of such energy at wholesale in interstate commerce for ultimate distribution to the public. The definition of a water utility in the Nevada statutes Is quite broad, and it is quite possible that a court might construe it as includ­ing the Railroad Company In view of the fact that the Rail­road Company is not furnishing surplus water incidental to the production of water for its own business, but is en­gaged In furnishing to the ater Company at las Vegas the entire domestic supply for the City and also in furnishing water directly to a number of industrial consumers at Las Vegae. in view of the foregoing circumstances I believe that the Railroad should not continue to expose itself to the danger of being determined to be a public utility with respect to the production of water. By transferring its water production facilities to Las Vagas Land and 7ater Company without malting any change in that corporation the Railroad would fortify itself against a demand that it, as a public utility, expand its water supply at Las Vegas, however the distribution company would not have a capital structure best designed to facil­itate the presentation of its earning problems at rate hearings The distribution company would still have the problem of sep­arating its accounts between water production and distribu­tion operations and the other operations, it seems to me that the best -lan would be to have a distribution company at Las Vegas entirely separated fro® any other business ac­tivity so that there could be no claim on the part of the Commission that there had been an improper separation of the revenues and expenses of the company. This could toe accomplished by creating a new corporation and transfer­ring tiae distribution and.water production facilities to