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(bee - Mr. A. E. Stoddard Mr. Wm. Reinhardt Mr. W. B. Reuse Ir, H. M.' Sutton Mr. Calvin M. Cory Mr. L. R. Maag) > May 27, 1954 Pile 80-11 Conway, Moe, Hibbs & Fimaton 440 Hoover Avenue Laa Vegas, Nevada Gentlemen; I have been advised by Mr. H. M. Sutton, General Audit­or of the Las Vegas Land and water Company, that Mr. L. J. Loren, of your firm, orally requested one of his represent­atives who participated in the audit by the Las Vegas Valley Water District of the accounts of the Las Vegas Land and Wa­ter Company in connection with the pending sale of the Las Vegas water system to the District that the Law Department of the Las Vegas Land and Water Company advise you by let­ter that on April 30, 1954, (a) The Water Company is not now engaged in any litigation which would add to the liability of the Water District! (b) There are no judgments outstanding against the Water Company not satisfied,which would have to be assumed by the Water District: (c) There are no claims pending against the Wa­ter Company which may be subject to litiga­tion or settlement by the Water District. As you know, the water system is to be sold to the Dis­trict under the provisions of Agreement dated June 1, 1953, between the Los Angeles & Salt Lake Railroad Company, Union Pacific Railroad Company, Las Vegas Land and Water Company and the District, under which the District assumes certain specific liabilities after the sale date. Furthermore the District is purchasing the properties of the water system subject to conditions, restrictions, etc., of record. You