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Los Angeles July 12, 1954 80-11 Mr. R. M. Suttom (cc - Mr. Wm. Reinhardt)(bee - Mr.L.R.Maag) Referring to your G-33 of June 24th advising that Messrs. McCafferty and Parkinson would he In Las Vegas June 28th In connection with the auditing of the Water Company books, and would remain there until released by me: I went out to Las Vegas last week, and on Thursday discussed the situation with Messrs. McCafferty, Parkinson, and Maag. They are doing a very good Job out there, and as*near as I can gather, after a pretty long meeting with them, they should be pretty well cleaned up not later than August 1st. I understand that they are waiting for certain information from Mr. Peart, which w ill be transmitted to them by July 27th, and upon receipt of that information I am o f the opinion they w ill clean up a ll odds and ends and, as I have stated , be out by August 1 st. There were two questions which seemed to be the subject of dispute between our people and the Water District accountants. The first of these involved some $350 covering certain secondhand material which the Water Company had bought and paid for from Union Pacific and had taken into the investment account. Before this was taken over, Mr. Doyle, then Superintendent of the Water Company, stated it was usable. However, after Mr. Doyle became Superintendent of the Water District, he advised the Water District accountants he did not want it, and the District accountants suggested that there be deducted from the final purchase price this sum of approximately $350. I advised our accountants that they should tell the District this secondhand material was in the investment account and was theoretically paid for by the District, and there would be no deductions from the final purchase price allowed for the cost thereof, that if the District did not want it they could throw it away or give it to the Indians, but we did not want it and would not give them any credit for the value of it. Before I left Las Vegas that day I was advised that Mr. Doyle had changed his mind and was willing to accept this secondhand material,with the result that the accountants have taken the value thereof into the accounts•