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N (bee - Mr. A. E. Stoddard Mr. W. R, Rouse Mr. R. M. Sutton Mr. Calvin M. Cory Mr. C. M. Bates Mr. L. R. Maag) May 26, 1954 File 80-11 Mr. Franklin T, Hamilton (2) O'Melyeny & Myers Attorneys at Law 433 South Spring Street Los Angeles 13, California Dear Mr. Hamilton* Re1 Sale of Las Vegas Valley water system Our Auditor advises ms that the accountants for the Dis­trict have completed their audit of the accounts of the Rail­road Companies and the Water Company relating to the purchase price of the water system as of April 30, 1954, It is also ray understanding that the accountants for the District accept­ed our figures of $2,317*663.43 as representing the sale price as of April 30, 1954, computed as provided in the contract of June 1, 1953# Therefore I suggest that we agree on the fig­ures which should be inserted in the Escrow Instructions so that they can be drafted in final form and submitted for exe­cution. Will you please advise me if the District agrees that the Preliminary Purchase Price provided for in the Escrow In­structions is $2,317*663.43. We have made an estimate of the additions to the purchase price which will be made during the period between May 1,1954, and July 1, 1954, and allowing for a cushion for contingencies, suggest that the Estimated Purchase Price as that term is used in the Escrow Instructions be $2,557*000, which will provide a Purchase Price Adjustment Fund of $239,336.57. I also suggest that July .1, 1954, be fixed as the sale date, I have already written you concerning the District's con­senting to the assignment of any accounts receivable involving water charges for refrigeration service which are unpaid upon the sale date. Anticipating that the District will accept the