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July 2, 1927 085-365 Mr, E, X. C elyin , Vie© P resid en t, Omaha , 1 ebra ska . Pear S ir : R e fe rrin g to con tra ct Audit Ho, 2860-A (extended to October 1, 1926 by con tract Audit Ho, 2860-B) between Los Angeles & S alt Lake Railroad Company and la s Vegas land and Water Company, covering the fu rn ish in g o f water end e l e c t r i c i t y by the former to the la t t e r a t las Vegas* Under date o f June 36, you authorized n eg o tia tio n s fo r sale o f our power lin e , etc * to Consolidated Power & Telephone Company, su bject to your approval la t e r . We are proceeding accord­in g ly . We have a ls o had under con sid eration a new agreement coverin g the fu rn ish in g o f water t o the lend and Water Company, but because o f the l a t t e r ’ s in te r e s t in , o r r ig h t t o , the water flow in g from the springs and w e ll, i t is apparent th at instead o f the new document p ro vid in g f o r sa le o f water to the land and Water Company as has been the case under the old agreement, th e arrangement should provide that r e n ta l s h a ll be paid by the land and Water Company fo r the use o f th e Railroad Company’ s f a c i l i t i e s . Such an arrangement, o f course, in vo lves a knowledge o f th e r e la t iv e use made o f the f a c i l i t i e s by each company. We re c e n tly arranged to in s t a ll meters in order to a ccu ra tely measure water