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Mr* m * Reinhardt 3* September 30, 1952 Accordingly 1 recommends 1. That the Railroad Company immediately transfer to the L7Utw Company at book value the $70 acres of land and the water production fa-ilitiss which the District is now negotiating to bay} 2* That tha Railroad Company grant a li­cense, subject t© termination upon short notice, to the LVUtM 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.S*) by proper tariff publication* 1 understand it will be necessary to construct a pipe line a-cross the Railroad yards to connect the P*F.S» to the shop well, so it might be necessary for the Water Company to furnish water t© the P*F* J£« 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 fey the transfer of its facil­ities to the Water Company. It appears to me that interest on such advances should he charged* §* That the existing contract between the Railroad and the IfL&W Company be super­seded by one providing that the Railroad Com­pany will maintain and operate the water pro­duction facilities at actual cost of labor and materials plus the present management fee.This would eliminate the present interest charge and income tax allowance billed t© the LVIMM Company. If It were decided to have the main­tenance and operation crews in the water field on the payroll of the LVb&W itself rather than m the Bsilroad payroll, the only charge which the Railroad would make to the Water Company would be for management cervices and Interest on the advances*