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cc Mr. A. S. Halsted Los Angeles, February 19, 1929. 085-355 Mr* F. H. Melfamee: With Mr. Balated’s letter to rae May 18, 1927, he submitted a proposed agreement between L A & S L B B O o . and lias Tegas Land and Water Company co Ye ring arrangement where­by the latter corapary secures water at Las Yogas, leva&a, which agreement had been prepared by you. The two originals and sis copies of the document which he sent me are returned to you herewith: the enclosed draft of agreement was prepared, it was decided to hold in abeyance the making of a new contract until we coaid obtain meter readings showing the water consumed by each company, on which to base division of cost. We now have such readings for the year 1928, and find that on basis of use of facilities serving""'the' two companies, the charge against the 1. Y. I* and W. Co. should be approximately §975yOQ war month. instead of $500.00, as called for in afiaohea draft of agree-"" raent. I suggest, therefore, that the enclosed document be revised accordingly. I think we shooId at the same time make provision in this agreement for revision each year of monthly charge on basis of previous year’s consumption, and also include a provision that the Land and Water Company shall bear its proportion of increased cost of water due to improve­ment in the facilities* enclosed document revised accordingly, and then return the papers to me for further handling. agreement extending, to October 1, 1928, the old agreement between the Bailroad Company and the Land and Water Company (contract audit Bo. 2850-A), covering sale of water and elec­tricity by the former to the latter. The extension agreement was duly executed, which, therefore, covered the arrangement to October 1, 1928. Pending farther development respecting the electrical situation, I think the old agreement should be extended for another year, i.e.» to October 1, 1929, insofar as furnishing of electricity is concerned. As I question the advisability of making the new water agreement retroactive, I As I advised you in my letter June 10, 1927, after I shall appreciate it if you will kindly have the In this connection you sent me October 12, 1927 an