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Hr. W« R. Rouse Los Angeles, Hay l s 1953 8 0 -11 (go - Hr. Wra. Re inhal’d t Mr. R. M. Sutton) Please refer to Section 11 of the proposed draft of purchase and sale agreement with the District which was sent you with ray letter of March 19s 1953« The attorney for the District has asked us to In­sert in the agreement a provision that cost and expense of work performed prior to September 1, 1952# for addi­tions and betterments to or extension of the water sys­tem shall not be added to the basic purchase price. In principle I think this is a reasonable request, but I believe that there Is a possibility that a serious dis­pute could later arise concerning the t.portion of the cost of additions and betterments or extensions in the course of construction on September 1, 1952, which should be added to the purchase price and which should be deemed to be included within the basic purchase price. Therefore I think it would be highly desirable while we are in the course of drafting the agreement to have a statement prepared showing the division of the cost as of September 1st on all Jobs which were in the course of con­struction at that time. I think it would also be helpful if the statement were also to separately reflect work com­pleted In the year 1952 prior to September 1st and also new Jobs initiated subsequent to September 1, 1952. 1 think that such a statement would give both the District and ourselves a picture which would help iron out any dis­putes as to language which should be inserted in the agree ment. If you agree, will you please arrange for Mr. Sutton to furnish me with six copies of a statement showing (l) by work orders and appropriate description of the nature of the work, the amounts charged to Investment Account by the Rail­roads or the LVL&M Company during the per-