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II. HISTORY OF COMPANY 1. Historical Background The first development of ground water resources near the or-iginal Las Vegas townsite was undertaken in connection with the con­struction of the San Pedro, Los Angeles & Salt Lake Railroad. At the completion of railroad construction the water facil­ities consisted chiefly of springs, a redwood-stave pipe line and a locomotive water station. On May 2, 1905, the Las Vegas Land and Water Company was in­corporated under the general laws of the State of Nevada,. Shortly after the date of incorporation, the property known as Clark’s Las Vegas Town site was conveyed to the Land and Water Company and placed upon the market as town lots. A water distribution system of redwood-stave pipes was in­stalled to serve residents of the new town. Then, as now, water served through the distribution system was obtained from the railroad-owned production and transmission facilities. 2. Corporate Organization The Las Vegas Land and Water Company is controlled by the Loj^j£ Angeles & Salt Lake Railroad Company through stock ownership. The rail­road properties (including water production and transmission facilities at Las Vegas) are owned by the Los Angeles & Salt Lake Railroad Company and are operated by the Union Pacific Railroad Company as lessee of the entire Los Angeles & Salt Lake Railroad. Pull cognizance of the physical and corporate ties between the railroad and the Water Utility has been taken in making this study of the operations of the water system at Las Vegas. The financial re-suits are the same as if owned and operated as one company. Las Vegas Land and Water Company divides its Las Vegas opera-ions into three groups, namely - JJ V\l