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Los A ngelas, Dacamber 29* 1952 ? do- 1 1 Mr. W. R* Rouses fee Mr. A. £ 4 Stoddard) Mr* Wra. Reinhardt ) Copies or Mr. W* H. H u lsizer) en clo su res Mr* R. M* Sutton ) t o each. Mr. C alvin M. Cory) Mr. 1 . L. Adamson ) Mr. W. H* Johnson54'# | am e n clo sin g copy 0 f r e v ise d d ra ft o f suggested proposal o f th e Las Vegas V a lley Water D is t r ic t f03| the purchase o f the water production and water d is tr ib u tio n f a c i l i t i e s o f th e R ailroad and LVL&WCompany at Las Vegas and copy o f r e v ise d d r a ft o f suggested l e t t e r o f accep t­a n ce. These d r a fts have been r e v is e d as th e r e s u lt or Mr. Renwick’ s conference w ith you and other o f f ic e r s a t Omaha r e c e n tly . I have noted Mr. S utton ’ s comment in h is l e t t e r o f December 17th w ith referen ce to segregatin g th e m aterial and supply account as between maintenance m aterial® and m a teria ls h eld fo r a d d itio n s and b etterm en ts. I t i s my inform ation th a t most o f th e m a teria ls and su p p lies on hand charged t o t h is account are m a te ria ls and su p p lie s which e v e n tu a lly are used In a d d itio n and betterm ent p r o je c ts , but th a t th ere i s no way in which a seg reg a tio n can he made o f m a teria ls h eld fo r maintenance and th ose h eld fo r a d d itio n s and b etterm en ts. J th in k Mr. Sutton i s correct in tak in g the view th a t i t i s not e n t ir e ly lo g ic a l fo r th e D is t r ic t to ob tain th e f u l l b e n e fit o f th e amount outstand­in g in t h is account as o f September 1 , 1952, and be r e - quired by other p r o v isio n s o f th e agreement to d itio n s and b etterm ents amide a fte r September 1 , i9 5 2 . How­ever the n e g o tia tio n s appear to have been made on th a t bas­i s . and I b e lie v e we would be departing from the understand in k which th e D is t r ic t obtained in conference® w ith us i r we6were t o fo llo w Mr, Sutton ’ s su g g estio n . Therefore the r e v ise d d r a ft o f th e p roposal does not incorporate h is su g g e stio n s. I f you decide th a t h is su ggestion should be fo llo w e d , appropriate r e v is io n can be made in th e propos­a l b efore i t i s subm itted t o th e D is t r ic t , but I th in k i t w i l l meet w ith r e s is t a n c e .