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V Mr. Edward C. Kenwick -2- November 23, 1951 would undoubtedly weigh in making a decision, I desire to briefly outline how the new water company would function. Assuming that a clean break is contemplated, looking for­ward to the time that th© properties pay be disposed of and sold, then in my opinion, strong consideration should be giv­en to setting up a management and operation in Las Vegas that would be practically self-sufficient except for matters in­volving comparatively large capital expenditures and where corporate matters arose requiring legal assistance above that required for normal operations. Ibis would mean the maintaining of an executive head with full authority to run the company at Las Vegas along with the services of an accountant to keep all the primary records in Las Vegas. Both the production and distribution operation and and maintenance would be under a general foreman or superin­tendent . All work would be performed by the water company and none should be hired and performed by any of the Railroad per­sonnel . The company being a utility would necessarily file an an­nual report with the local commission and be under its diction in accordance with the Hevada law. Having thus briefly presented the manner in which the re­organized company would function, let us now consider some of the results that sight be expected to follow. These may be set down as follows: 1. Costs of doing business would be reduced. Through union controls and the many departmentalized break-downs of work functions, production expense is now believed to be high* Production of water and its delivery to distribution is a relatively simple function, as it is performed in Las Vegas. With rising costs and the problems faced, all ec­onomies possible should be Instituted. Many and most medium size water coa^anies "get by" on services less than might be considered necessary if funds were present. Through a unified organization under a sin­gle control, the man hours performed would, in ay opinion, be greatly reduced. Similarly the overhead burden would be even more greatly reduced. There would be no saving, in my opinion, on accounting, as the charges assigned from the Omaha office appear low. \