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(COPY) (Letterhead of) CONWAY, MOE, HIBBS & FUNSTON CERTIFIED PUBLIC ACCOUNTANTS 440 WEST HOOVER STREET LAS VEGAS, NEVADA June 3, 1954 Mr. Franklin T. Hamilton O'Melvany & Myers Attorneys at Law 433 South Spring Street WM.. R. JUN 9 1954 Los Angeles, Califoi*nia Dear S i n Upon receipt of your letter of May 24, 1954, we reviewed the status of the special rates being charged for air-conditioning and similar e-quipment, and have discussed the entire matter with the Directors of the Las Vegas Valley Water District. It appears that the Nevada Public Service Commission has approved these rate additions, and that the 1953 accounts now have all seen paid. However, due to the controversial nature of such charges? the difficulty as to collections experienced in the past? and particularly in view of the present terms of the contract expressed in the last sentence of sec­tion 9(e) as to the assumption of any liabilities, it is our recommenda­tion that the District not accept these accounts as an addition to the purchase price. The Board has expressed its verbal concurrence in our views. As an alternative, it is recommended that the District accept an assignment of these charges for purposes of collection only, said col­lections to be reported to and transmitted to the sellers every thirty days until liquidated. Yours very truly, CONWAY, MOE,HIBBS & FUNSTON By! Nelson S Nelson Conway Conway cot Mr. Thomas A. Campbell President, Las Vegas Valley Water District NC/t