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upr000105 256

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upr000105-256
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    Mr. iii Eeiah&rdt 4. September 3 0 * 1952 1 think the forcings things should be dons immedi­ately. if at all. As promptly .«s possible the :.\?U b Com­pany should also divest itself of all industrial lands and other properties ejtcspt the water department at Lae ff|i| now owned by it in the States of ffeveds and California. These could be transferred to an appropriate subsidiary. 1 realise that it might take longer to accomplish this than to accomplish the transfer of the water production facilities from the fallrosd to the tVUt* Company. How­ever X think the entire plan should be proTeased as p ro m p tly &us possible so as to leave in the ownership^©* the iJfUJ Company/only the water production and distri­bution system" at las ¥«®&s# . <1 am proposing the foregoing on the assumption g a t the ultimate sale of the water production and distribu­tion system by a separate water company to the District would not result in substantial Income tax disadvantages. This, of course, ia a matter which should be carefully considered by the appropriate departments before the plan above Is adopted. H 1 - Bennett