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S P E N C E R L . B U T T E R F I E L D V I C E - P R E S I D E N T W I L L I A M C O U L T H A R D S E C Y . - T R E A S . H A R R Y E. M I L L E R J A M E S C A S H M A N J O H N B U N C H O f f i c e r s a n d D i r e c t o r s T H O M A S A . C A M P B E L L PRESIDENT L A S V E G A S V A L L E Y W A T E R D IS T R IC T 9 0 0 S O U T H 5 T H S T R E E T L A S V E G A S . N E V A D A T e l e p h o n e 5 9 2 0 A p ril 23, 1954 M E M O R A N D U M SU B JECT: Accountants Audit o f Lot Vegas Land and W ater Company figures The following was excerpted from recorded telephone conversation of A pril 2 2 , 1954 between Thomas A . Campbell and Franklin T . Hamilton of O 'M e lve n y & Myers: M r. Ham ilton stated that M r. Bennett o f the UPRR had contacted him on several occasions regarding getting started on the escrow. A breakdown of the gross p rice , as o f January 3 1 , 1954, has been received by the District from M r. Reinhardt, of UPRR. M r. Ham ilton agrees w ith M r. Bennett that to fix the purchase p rice , they should start with an up-set date w ell In advance of the sale date, since there w e numerous Items such as accounts receivable, unpaid wages, contracts of purchase of equipment and m aterial, e tc. which are made during the last few weeks and can't be determined at the last m inute, so w ill not be able to get a firm price on the sale date, but can use an up-set date of one or two months In advance of the sale date and provide for an adjustment to be mode after Hie final figures are ascer­tained. This w ill require Hie services o f both the acoountants and engineer. Apparently the UPRR has the accounting procedure pretty w ell set up and the D istrict should have their accounts examined on behalf of the District to ascertain that proper Ite m ore covered and that no Improper Items a re fn clu d e d . M r, Conway should in itia te the contact w ith Mr* M agg of the Las Vegas Lend and try to work out a method o f establishing an up-set price and then the final price w hich would be reflected by an adjustment of thd up-sot p ric e . Mechanics should bo worked out b y the accountant, M r. Conw ay, who should consult 4th Hoskins and Sells If any matters come up In which they should have a vo ice . The UPRR accountants can make some arangoment to meet In Lost Vegas w ith M r. Conway and work out the details. The h itla l contact is to be ith M r. M aag. M r. Ham ilton fools the upset date should be os close as possible to the sale date, probably about March 31 if the District is to effect the sale on June I . The accountants should satisfy themselves on the adjustments - whether they are proper Items, such as correct depreciation, to what extent contracts providing for refund of construction money have been performed, e tc. It It strictly an accounting matter of determ!ng proper charges. The entire price w ill bo on adjustment of the up-sot p rice .