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? Los Angeles, October 3» 1950 S0-$ Mr* 11. Bs Mr. 1. L» Adamson Clarence M. Bates and R. L. Adamson:S (cc - Mr. Wm. Reinhardt Mr. Boy Wehe Mr. B. L. Bertolacei) It has come to my attention that LVL&WCo. owns pipe lines at Las Vegas which occupy property of the Railroad which there is no agreement between those parties aCnodm praorn yw fhoirc h / LVL&WCo. pays no rental to the Bailroad Company. In connection with our impending rate increase ease involving the water facilities at Las Vegas* it is essential that the Water Department pay the Bailroad fair compensation for all services and facilities furnished hy the Bailroad Company to the Water Company. I suggest that you Jointly work up the data required for the preparation of a license agreement running trxm the Bailroad to the LVL&WCo* under which the LVL&WCo. will pay the Bailroad annually a fair rental for the use of all Bailroad property or rights of way occupied hy LVL&WCo. facilities. We should have this information as soon as possible so that Mr* Bertolacei can include the mortal in the estimate of LVL&WS©. operating expenses in the study which he is now completing* it has also come to my attention that there Is no land in the rate base of the LVL&WCo. nor any value included therein representing the portion of the rooming house at las Vegas occupied by the office of the LVL&WCo. It seems to me that it would be proper in the operating expense estimates which are being made by Mr. Bertolacei to include the fair rental value of the lend occupied by a tool building of LVL&WCo* and the fair rental value of the office space occupied by the Water Department in the LVL&WCo* rooming house. I would appreciate it if Mr. Bates would furnish to me and Mr. Bertolacei an estimate of the rental value of the facilities mentioned. OCT 6 1950 ts® C*e C*