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Mr. Vim. Reinhardt 6 December k$ 1951 t h a t a f o r e i g n c o r p o r a t io n c o n v e y in g gas o v e r th e s t a t e l i n e and d e l i v e r i n g i t t o a d i s t r i b u t i n g c o r p o r a t io n w hich i t con­t r o l l e d w as, under th e e v id e n c e in t h a t c a s e , a p u b lic u t i l ­i t y and s u b je c t to r e g u la t io n as such. The mere f a c t t h a t a p ro d u ct i s s o ld a t w h o le s a le does n ot p r e v e n t th e s e l l e r from b e in g d e c la r e d a p u b lic u t i l i t y i f th e r e g u la t o r y s t a t u t e i s broad enough to in c lu d e w h o le ­s a le s e l l e r s . An exam ple o f th e r e g u la t io n o f such b u sin ess i s th e f e d e r a l Pow er A c t , T i t l e 16 U .3 .C ., S e c . 824 e i s e q . , w h ich p r o v id e s f o r th e r e g u la t io n o f th e b u sin ess o f t r a n s ­m is s io n o f e l e c t r i c e n e rg y in i n t e r s t a t e commerce and th e s a le o f such en erg y a t w h o le s a le in i n t e r s t a t e commerce f o r u lt im a t e d i s t r i b u t i o n t o th e p u b lic . The d e f i n i t i o n o f a w a te r u t i l i t y in th e Nevada s t a t u t e s i s q u it e b ro a d , and i t i s q u it e p o s s ib le t h a t a c o u r t m igh t c o n s tru e i t as in c lu d ­in g th e R a ilr o a d Company in v ie w o f th e f a c t th a t th e R a i l ­road Company i s n o t fu r n is h in g su rp lu s w a te r I n c id e n t a l to th e p r o d u c tio n o f w a te r f o r i t s own b u s in e s s , but i s en­gaged in fu r n is h in g to th e W ater Company a t Las V egas th e e n t i r e d om e stic su p p ly f o r th e C it y and a ls o in fu r n is h in g w a te r d i r e c t l y t o a number o f i n d u s t r ia l consumers a t Las V e g a s . In v ie w o f th e fo r e g o in g circ u m sta n ce s I b e l i e v e t h a t th e R a ilr o a d should n o t c o n tin u e t o expose i t s e l f to th e d a n g er o f b e in g d eterm in ed to be a p u b lic u t i l i t y w ith r e s p e c t t o th e p ro d u c tio n o f w a t e r . By t r a n s f e r r in g i t s w a te r p ro d u c tio n f a c i l i t i e s t o Las Vegas Land and W ater Company w ith o u t making any change in t h a t c o r p o r a t io n th e R a ilr o a d would f o r t i f y i t s e l f a g a in s t a demand t h a t i t , as a p u b lic u t i l i t y , expand i t s w a te r su p p ly a t Las V eg a s. However the d i s t r i b u t i o n company would n o t have a c a p i t a l s t r u c t u r e b e s t d e s ig n e d to f a c i l ­i t a t e th e p r e s e n t a t io n o f i t s e a r n in g problem s a t r a t e h e a r in g s . The d i s t r i b u t i o n company would s t i l l have th e problem o f sep ­a r a t in g i t s acco u n ts betw een w a te r p ro d u c tio n and d i s t r i b u ­t io n o p e r a t io n s and th e o t h e r o p e r a t io n s . I t seems to me t h a t th e b e s t p la n would be t o have a d i s t r i b u t i o n company a t Las V egas e n t i r e l y s e p a ra te d from any o t h e r b u sin ess a c ­t i v i t y so th a t t h e r e co u ld be no c la im on th e p a r t o f th e Commission t h a t t h e r e had been an im prop er s e p a r a tio n o f th e reven u es and expenses o f th e company. T h is c o u ld be a ccom p lish ed by c r e a t in g a new c o r p o r a t io n and t r a n s f e r ­r in g th e d i s t r i b u t i o n and w a te r p r o d u c tio n f a c i l i t i e s to