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Mr. Wm. Reinhardt 3. September 30, 1952 Accordingly I recommend: 1. That the Railroad Company immediately transfer to the LVL&W Company 570 at book value the acres of land and the water production fa­cilities which the District is now negotiating to buy; 2. That the Railroad Company grant a li­cense, subject to termination upon short notice, to the LVL&W Company for pipe line and power line rights of way across the retained lands of the Railroad Company; 3* That the Water Company immediately start serving industries now served by the Railroad (excluding perhaps the P.F.E.) by proper tariff publication. I understand it will be necessary to construct a pipe line a-cross the Railroad yards to connect the P.F.E. to the shop well, so it might be necessary for the Water Company to furnish water to the P.F. E. during an interim period. 4. That the Las Vegas Land and Water Com­pany execute a mortgage upon its entire water system in favor of the Railroad Company to se­cure advances which the Railroad Company has already made to the water department and which it will have made by the transfer of its facil­ities to the Water Company. It appears to me that interest on such advances should be charged. 5. That the existing contract between the Railroad and the LVL&W Company be super­seded by one providing that the Railroad Com­pany will maintain and operate the water pro­duction facilities at aetual eost of labor and materials plus the present management fee.This would eliminate the present interest charge and income tax allowance billed to the LVL&W Company. If it were decided to have the main­tenance and operation crews in the water field on the payroll of the LVL&W itself rather than on the Railroad payroll, the only charge which the Railroad would make to the Water Company would be for management services and interest on the advances.