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JG G. MARTIN D i s t r i c t A t t o r n e y o f L i n c o l n C o u n t y P I Cl C H E , N E V A D A March 9, 1950 Mr. E. E. Bennett, General Solicitor Union Pacific Railroad Company 422 West Sixth Street Los Angeles 14, California Dear Mr. Bennett: RE: File Replying to your letter of Ma ing the bill for water service by Lincoln County Power District No. 1. I believe I detailed to Mr. Calvin M. Cory the situations which led up to the Receivership in the suit by the Town of Pioche against Amalgamated Pioche Mines and Smelters Corporation, which was the old private water company. At the time of my letter to him, the Receiver was having ex­treme difficulty in meeting the financial requirements of placing the water system in workable shape. In 194$ Lincoln County Power District No. 1, at the solicitation of various business groups of the T o m , was induced to take over and operate the Pioche Water System. They did this by entering into a 99-year Lease of the water system and facilities with Amalgamated Pioche Mines and Smelters Corporation, for which lease they paid $20,000.00 cash* The Power District has since spent $40,000 to $50,000 in laying new mains, repairing the old system and installing meters, and providing the Town with what is believed to be an adequate water supply for many years to come. The Recei­ver was discharged by the Court and all of the transfer papers have been approved by the authorities concerned. The question of propriety in billing the Railroad Company for water charges, in view of the existence of the old contract between the Amalgamated Pioche Mines and Smelters Corporation and the Union Pacific Railroad for free use of this water, is something for the consideration of the Union Pacific Railroad and Lincoln County Power District No.l. • Ci* D» MAR 16 1949 174-2 *ch 7, 1950, concern-