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Los Angeles - August 2f, 1954 80-11 Mr. R. M. Sutton: cc - Mr. A. E. Stoddard Mr. Wm. Reinhardt Mr. Leo McNamee Mr. C. M. Cory Referring to earlier correspondence relative to outstanding balance due the Water Company and Railroads in connection with sale of the Water Company properties to the Water District in Las Vegas: I went out to Las Vegas yesterday and discussed this matter with Leo McNamee, Attorney for the Water Dis­trict, and Mr. Renshaw, General Manager, Initially, Mr. Conway of the accounting firm for the District has filed a report approving the accounts. 1 was unable to get a copy thereof but hope to do so as it apparently is formal approval of the final settlement, exclusive, of course, of taxes. 5V However, Mr. McNamee and I felt, after considera­tion of the Escrow Instructions, that a new resolution should be prepared. You will recall that the Escrow instructions provide that upon the completion of the accounting the parties shall give written instructions as to the manner in which the Bank should disburse the Purchase Price Adjustment Fund (Section VII). Mr. McNamee and I agreed that after the new resolution was prepared the Water District would write the Bank, with copy to Mr. Reinhardt, stating that the account­ing had been completed and agreed upon, and subject to the approval of the Water Company, necessary disbursement, ft®?* R eitnhhea Bradnt kw islhlou ltdh emna kwer itthee the Bank, with copy to the District, approving such disbursemen ts, and the Bank will then proceed to close up the Purchase Price Adjustment Fund by distributing to us $18,245.29# and distri­buting to the District $157#771.25# which is in line with your letter of August 2nd. Unfortunately, I can not advise you when this will be done, except that I am sure it will not be done until after September 7th. There were only four Directors of the District available Wednesday for their meet­ing, and at the close of the meeting ohe of the Directors was taken to the hospital for an emergency operation, so there 1