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Mr. Wm. Reinhardt 2 December 4, 1951 Such a t r a n s f e r would a ls o have th e a d va n ta g e o f be­in g v e r y a c c e p ta b le to th e p r e s e n t Commission because th e p r e s e n t Commission lo o k s w it h s u s p ic io n upon th e f e e t t h a t .th e R a ilr o a d Company i s th e p ro d u c er o f w a te r a t Las V e g a s . A lth ou gh we know t h a t th e W ater Company has n ot been u n f a ir ­l y t r e a t e d in ch a rg es mad© by th e R a ilr o a d Company f o r wa­t e r prod u ced , i t i s d i f f i c u l t t o make th e p re s e n t Chairman o f th e Commission a c c e p t t h i s f a c t . I f th e t r a n s f e r to o k p la c e , a l l o f th e c a p i t a l e x p e n d itu re s and a l l reven u es and expen ses would be r e p o r te d t o th e Commission In one annual r e p o r t and th e Commission would n o t be a b le t o a s s e r t th a t some s e c r e t p r o f i t was b e in g h id den in th e t r a n s a c tio n s b e­tween th e R a ilr o a d and th e W ater Company. T h ere i s a n o th e r im p o rta n t re a s o n why th e R a ilr o a d Com­pany should d is a s s o c ia t e i t s e l f e n t i r e l y from w a te r produc­t io n a t Las V e g a s . We a l l know t h a t th e w a te r s h o r ta g e i s becom ing more and more a cu te as th e r e s u l t o f d e c lin in g wa­t e r t a b le s and in c re a s e d p o p u la t io n . I t i s p r o b le m a tic a l w h eth er th e D i s t r i c t o r th e C i t y w i l l be a b le to fin a n c e th e b r in g in g o f Lake Mead w a te r to Las V e g a s . I f the p r e s e n t e f f o r t s o f th e D i s t r i c t f a i l , i t i s e n t i r e l y p o s s ib le th a t th e p e o p le o f t h a t a re a w i l l lo o k t o th e R a ilr o a d Company to fu r n is h th e c a p i t a l to b r in g in a su pp lem en tary su p p ly o f w a te r . T h ere a r e many d e fe n s e s w h ich th e R a ilr o a d Com­pany o o u ld a s s e r t i f an a ttem p t w ere made to com pel i t to fu r n is h a su pp lem en tary w a te r su p p ly from such s o u ro e , but I th in k I t i s h ig h ly d e s ir a b le th a t th e R a ilr o a d put i t s e l f in such p o s it io n t h a t no one co u ld p o s s ib ly a s s e r t t h a t i t had an o b l i g a t i o n to supplem ent th e p r e s e n t w a te r su p p ly . I f i t w ere n ot th e p ro d u c er o f th e d o m e s tic w a te r su p p ly a t Las V eg a s, no one would have any j u s t i f i c a t i o n f o r a s k in g th e R a ilr o a d to fu r n is h an a d d it io n a l s u p p ly . I f th e w a te r d i s t r i b u t i o n company w ere a ls o th e p ro d u c e r o f w a te r , i t would be u n able t o fin a n c e th e b r in g in g in o f an a lt e r n a ­t i v e su p p ly from Lake Mead u n les s th e R a ilr o a d Company w ere w i l l i n g to lo a n th e money, w h ich th e R a ilr o a d Company would u n d o u b ted ly r e fu s e t o d o . I f anyone w ere t o a ttem p t t o com pel th e R a ilr o a d Com­pany to fu r n is h an a l t e r n a t e su p p ly o f w a t e r , th e y w ould un­d o u b te d ly p ro c ee d by a s k in g th e Commission o r c o u rts to f in d