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Los Angeles, September 3, 1952 ® S|§tSfI Mr. W. R. Rouse: \ Referring to your letter of September 3rd, your file 2130, attaching copy of letter dated September 2nd from Mr. Hulsizer to Mr. Stoddard in connection with the proposal of the Las Vegas Valley Water District dated August 25th to purchase the water properties at Las Vegas: I think ray letter of August 29th to you and my supplemental letter of September 5th to Mr, Reinhardt* copy to you, pretty well cover the matters referred to in Mr. Hulsizer’s letter to Mr. Stoddard. It may be that the question of the advances made should be covered in the proposal, but I doubt if that would be necessary as these advances would either have to be turned over to the District as part of the assets of the Water Company or credit be given therefor to the District in the purchase price. With respect to the mechanics of handling the transfer I had frankly not given any consideration to that at the time as I did not think it would involve any complications. I I presume the suggestion that the collection system be transferred first to the Union Pacific and then by the Union Pacific to the Water District is made in order that certain tax advantages may accrue. That is something which I believe Mr, Sutton would have to pass on. 1 think we must keep in mind the agreement between the Railroads and the Wetter Company dated November 30, 1950, covering the furnishing of water -by the Railroad Company to the Water Company at Las Vegas and the payment of charges therefor. That too is a matter of minor mechanics and accounting. E, £, Bennett