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Form 2191-B 11-43-1M M ^ UNION PACIFIC RAILROAD COMPANY Tims Filed V M TELEGRAM BMmBI 80-11 LOS ANGELES 5/1/53 ORIG WRR - OMAHA CY RMS * OMAHA PLEASE REFER TO SUBPARAGRAPH (C) NUMBERED PARAGRAPH THREE LAS VEGAS VALLEY WATER DISTRICT PROPOSAL OF JANUARY 31 1953 TO PURCHASE WATER SYSTEM AT LAS VEGAS WHICH WAS REVISED IN ACCORDANCE WITH ITEM SIX YOUR LETTER TO ME JANUARY 6 1953. v| ON FURTHER CONSIDERATION I BELIEVE THE ORIGINAL WORDING IN THIS SUBPARAGRAPH SHOULD BE RESTORED AND THAT THE FIRST FEW WORDS SHOULD READ "THE AMOUNT CHARGED TO INVESTMENT ACCOUNT" INSTEAD OF ¥/ "THE AMOUNT EXPENDED". IN VIEW OF THE CREDIT ON PURCHASE PRICE PROVIDED FOR IN NUMBERED PARAGRAPH FOUR OF PROPOSAL THE PURCHASE PRICE MAY BE REDUCED AS MUCH AS $250,000 IF THE CAPITAL COST OF MAINS CONSTRUCTED SUBSEQUENT TO SEPTEMBER 1 1952 BY AND AT EXPENSE OF SUBDIVIDERS AND CONVEYED TO WATER COMPANY IS NOT ADDED TO BASIC PURCHASE PRICE. AS POINTED OUT IN NUMBERED PARAGRAPH SIX OF PROPOSAL, MAIN EXTENSIONS UNDER RULE NINE ARE CONSTRUCTED BY TWO DIFFERENT METHODS.WHERE THE SUBDIVIDER ADVANCES THE MONEY TO THE WATER COMPANY WHICH PERFORMS THE WORK THE COST OF ADDITIONS AND BETTERMENTS MADE TO DISTRIBUTION SYSTEM AFTER SEPTEMBER 1 1952 IS PROTECTED BY PROVISIONS OF SUBPARAGRAPHS (A) AND (B) OF NUMBERED PARAGRAPH THREE. WHERE SUBDIVIDER HIMSELF CONSTRUCTS MAINS AT HIS OWN EXPENSE AND CONVEYS THEM TO WATER COMPANY WATER COMPANY DOES NOT "EXPEND" ANY MONEY AND UNLESS THE AMOUNT CHARGED TO INVESTMENT ACCOUNT FOR SUCH EXTENSIONS CONVEYED TO WATER COMPANY IS ADDED TO BASIC PURCHASE PRICE THE CREDIT GIVEN IN NUMBERED PARAGRAPH FOUR WILL SERIOUSLY REDUCE THE ULTIMATE PURCHASE PRICE.