upr000100 93

Mr. W. R. Rouse -2- Feb.26,195** Numbered Paragraph 5s I had a talk with Mr. Beebe with respect to this matter, in view of the provisions of Section 14 of the contract between the Water District, the Railroad, and the Water Company which, as you know, contains a somewhat floating provision relative to a termination of the outstanding contract on ninety days* notice, Mr. Beebe stated the bond houses wanted something definite with respect to the right or waiver of such right on behalf of the parties to the contract, as they thought that such a notice of termination might be served while the bonds were being floated. I wrote Mr. Beebe a few days ago and asked him to send over to me a draft of whatever document he thought would be necessary , to which letter I have not received a reply as yet. Numbered Paragraphs 6 and 7 s Need no comments. Numbered Paragraph 8(a)jThis paragraph refers to a section of the contract relative to opening of an escrow, and the escrow instructions can be prepared as soon as we can definitely be advised as to when the Water District plans to take over the Water Company.. Numbered Paragraph 8(b)i With respect to this sub­division, I have had several talks with Mr. Campbell and sug­gested they retain our present superintendent, who I believe has another title, and he seems to think that would be a good idea, and I think that will be settled along that line. Numbered Paragraph 8(c): I have discussed this with Mr. Campbell and have urged him to get some accountants. Unfortunately, the District hasn’t any money, and they have been borrowing money from Clark County. Frankly, I do not know whether they have made any progress or not along the line of securing accountants. However, I intend to press this matter as it will be absolutely essential that our accountants and the District accountants get together to agree upon all the financial transactions and accounting matters which will have to be closed up eventually. Numbered Paragraph 8(d) is of no interest to us.