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H r. W illiam Reinhardt 11. December 4, 1951 f o r c e s , w h ich spend most o f t h e i r tim e on R a ilr o a d w ork, d e v o t e a sm a ll p o r t io n o f t h e i r tim e to m ain tenan ce and o p e r a t io n w ork in t h e 'w a t e r p ro d u c tio n f i e l d . I f t h i s work was tak en away from th e R a ilr o a d f o r c e s , th e expense o f th e R a ilr o a d f o r c e s m ig h t n o t he d im in is h e d so t h a t any p e rs o n n e l added t o th e f o r c e s o f th e W ater Company would mean in th e a g g r e g a te added ex p en se. I th in k th e p rob lem o f o p e r a t in g th e w a te r p ro d u c tio n f i e l d m ost e f ­f i c i e n t l y and e c o n o m ic a lly sh ou ld be s tu d ie d by a l l o f th e d ep artm en ts who a r e now p a r t i c i p a t i n g in t h a t w ork. I f th e w a te r p r o d u c tio n f a c i l i t i e s w ere t r a n s fe r r e d to th e w a te r company, th e d i s t r i b u t i o n company would have t o tak e o v e r th e s e r v ic e t o in d u s t r ie s now s e rv e d by th e R a ilr o a d Company. On th e t h e o r y t h a t i t has n ot been s e r v in g th e s e in d u s t r ie s as a u t i l i t y th e R a ilr o a d Com­pany has ig n o r e d th e law p r o h ib it in g th e use o f m eters and has s o ld them w a te r on a m etered b a s is . The c o n t r a c t r a t e s w it h a l l o f th e in d u s t r ie s e x c e p t th e P .F .E . a r e in ­ten d ed to r e tu r n a p r o f i t , bu t I u nderstand t h a t i t i s in ­ten d ed to fu r n is h w a te r t o th e P . P . 3 . a t c o s t . The w a te r d i s t r i b u t i o n company would be r e q u ir e d to fu r n is h w a te r to th e s e in d u s t r ie s on a f l a t r a t e , and some stu d y o f th e a - mounts a c t u a l l y r e c e iv e d f o r w a te r under o u r c o n tr a c t s sh ould be made in com parison w ith th e ch a rg es w h ich m ight be r e c e iv e d from them on a f l a t ra t© b a s is . 3. B en n ett * I n c l * *