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E . E . B E N N E T T G E N E R A L S O L IC IT O R E D W A R D C . R E N W I C K A S S I S T A N T G E N E R A L S O L IC IT O R M A L C O L M D A V I S G E N E R A L A T T O R N E Y - R O B E R T C , C A R fa B O N ? A S S IS T A N T G E N E R A L A T T O R N E Y - J A C K W . C R U M L E Y . A S S I S T A N T G E N E R A L A T T O R N E Y D O N A L D M. L A D D . J R . A T T O R N E Y 422 W E S T S IX T H S T R E E T L O S A N G E L E S 14. C A L I F O R N I A May 21, 1954 Pile 80-11 Mr. Franklin T. Hamilton O'Melveny & Myers Attorneys at Law 433 South Spring Street Los Angeles 13, California Dear Frank: R e : Sale of Las Vegas water system I understand that your auditors and ours have prac­tically completed an audit of the adjustment in the pur- ,;!i chase price up to April 30, 1954, and we should shortly ? he able to obtain from them the figures which we should be able to obtain from them the figures which we should insert in the proposed Escrow Instructions. The draft of the Escrow Instructions which I sent you on May 20th did not contain a provision taking care of the matter of charges for water furnished for air-con­ditioning, refrigeration, ice-making and other similar e-quipment which are referred to in Section 9 of the Sale Agreement. The litigated cases referred to in that sec­tion have been decided, as a result of which the Nevada Public Service Commission found justified charges for such service during the five summer months commencing May 1st of each year. It is my understanding that all charges accruing for the summer period in 19 53 have been paid and that charges for such services for the summer of 1954 will commence to be accrued oa May 1, 1954. If the District intends to take over the Accounts Receiv­able for such charges, as well as the other Accounts Re­ceivable referred to in Section 9(e) of the contract, we shall have to insert an appropriate provision in the Es-cros Instructions whereby the District consents to the