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to. Reinhardt - Los Angelas Las Vegas - February 25, 195** Please refer to your ooplss of ay letters to Mr. Janes m . Montgomery dated December Jo , 195J and January 27, 195**, relative to transfer of certain lteaa of transits pipe and fittings fron Railroad aooounts to LVL&W MOH account so that when the District takes over the ledger value thereof will be added to the baalo purchase price In accordance with Agreement ?C'L.D. 113h2. Also please refer to your letter dated Deoenber 17, 1953, requesting that I handle this natter with the Vater District and ascertain If they will desire to acquire any of these materials In connection with the sale of the water facilities to then. Mr. Montgomery has not replied to ay letter of January 27th, and I therefore called him on the phone and requested advice as to what stand the District is going to take with respeot to the acquisi­tion of the transits materials listed in attaohaent to ay letter of December 30th. Very auoh to ay surprise, Mr. Montgomery seemed to take the position that, sines the materials In question were purchased primarily for use In connection with the water facilities being sold to the District, these materials might be deemed to have been lnoludsd In the purchase price and that he wanted to ascertain the District's Ideas in this respect before answering ay latter of December 30., 1953. I told Mr. Montgomery that our Inquiry as to their desires In this natter was nerely a natter of oourtesy since the Agreement with the Distrlot does not require that we oonsult with then as to the kind