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upr000204 123

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upr000204-123
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    * Los Angeles * March 18, 1953 Orlg ASS Omaha 07 VRR Omaha, EBB Los A Tour S-37I. Item li Ownership of all facilities by LFL&VCo. would enable us to better resist demands for additional expenditures because ? % UPRRCo. could refuse to loan additional money and make water company stand on its own feet by seeking to borrow money from outside source. With a large debt to UPKR on its books do net bellere water company could secure substantial funds from outside source. Therefore, oould make good argument against unreasonable demands by Public Service Commission for additions to plant. Sane reasons would enable water company to bargain with PSO concerning rates because argument oould be made that rates must be high enough to put water company on sound financial basts so as to attract outside capital for reasonable capital extensions. Item 2i Unless voters authorise bonds for bringing in of lake Mead water Las Togas* present acute water shortage will soon become desperate If present growth continues. Our past experience has been that Community including its leader* look to us to solve its problem* and will net do the things necessary to help themselves. Their consistent resistance to a meter law in Xevada, which without question would alleviate their present water problem, is an example. X am in accord with our Lawyers that if the bonds fail some group will emerge which will try to saddle UPSS with an obligation to Increase wttsr supply in some manner, lister Company has no moans of augsenting water supply at present except through railroad, and If it resisted demands for increased supply most obvious course for Community would bo to have UPSS declared Utility so as to bo subject to PSO orders. M 18 1953 Lo C. C.