upr000254 147

SAVI^ E L E G R A P H I N G M A I L G R A M SAVE TELEGRAPHING Form 5527-B | . 9-48-soom U N I O N P A C I F I C R A I L R O A D C O M P A N Y page 2 dona in accordance with the provisions of Station 5* this latter part of the escrow deposit it designated in the draft as *Keloeatlon Fond.11 The Pistrlet is to enter into a contract or eon* tracts for the performance of the work and the escrow .agent is to make payment direst to the eontraetor or contractors# If within a designated tine the District has not contracted tho work, then our companies may award a contract or eon* traets for the performance of it and payment to the eon* tractor or contractor* whom wo ongago will likewleo be made by the escrow agent, Thh estimated oost of the work is $320,000 plus 10 pereont, making ths totSl estimated dost #352*000. This manner of handling and paying for the So* eallsd relocation work ie in my opinion a decided improve* ment over the methods prescribed in the Harsh, 19^3 draft of agreement* and X believe it safoguards our interests as well as they ean be safeguardsd. There would seem to be only ono risk if we take on the relocation work, and that* as Hr* Bennett points out* is tho chance that the estimate of the amount to be put in the Be location Fund is not l^rge enough end we will be required to pay the excess coat out of our own funds* 1 assume that in making the estimate our engineers . havs considered the risk and with that in mind have approved an estimate which in their Judgment is sufficiently high to meet the contingency. Hr* Bennett in the last paragraph of his letter above referred to alludes, to the additional preteeblom given the District in the revised draft against' drilling of water wells in ths shop ground area except for the purposes of Dhlon Pacific and affiliates (page 1?)* This protection as well as the restriction Insisted upon by ths District against water produotlon to bo incorporated in future deeds to our land in the vicinity of the lend to be sold to the District (Exhibit B) seems to mo from the District *s view* point as a justifiable protection inasmuch as the District will wish to enjoy as much of a monopoly as possible in the sale of water* And from our viewpoint* although wo might prefer to - avoid furnishing this protection, yet X do not bo* lieve that it will; result seriously to our disadvantage and further than that it is my opinion that the elimination of the protection from tho agreoment would create an impasse between the District and ourselves* X assume that this