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Los Angeles, May 21, 1953 80-11 Mr. W. R. Rouses (ce - Mr. Wm. Reinhardt) I am enclosing two copies of a working draft of a~ greement covering proposed sale of the water system at Las Vegas, Nevada, to the Las Vegas Valley Water District which has been agreed to by the attorney for the District and me. There may be some slight modifications in the agreement which will occur as a result of a final check, which we are now making, but I expect to prepare the agreement In final form substantially in accordance with the enclosed document when it has had your approval. You may be familiar with the fact that there has been a good deal of comment in the public press at Las Vegas, Nevada, concerning delay in the consummation of this agreement, and of course the blame has been thrown on the Union Pacific rather than the local citizenry. On May 12th and 13th a meeting was held at Las Vegas with the representatives of the District, at which all of the disputed points were settled in principle, and public announcement was made that it was expected that the agreement would be executed by June 1, 1953* Since that time we have been completing the details of the agreement with the District. The only thing which has not been definitely decided upon is the estimated cost of the work to be performed under Section 5 of the agreement. Our engineers are conferring with the engineers of the District, and it is expected that this figure will be available in a day or two. Mr. Reinhardt desires to have the agreement executed by June 1st. Therefore I shall appreciate it if you will wire me as soon as you have approved the enclosed draft. In substance this draft does not differ substantially from the draft which I sent you on March 19, 1953, except that the provisions for liquidated damages and for payment over a period of years for relocation work has been eliminated. In lieu thereof the agreement requires the estimated cost of the relocation work to be deposited in escrow before the sale date. The intention is that the District will perform this work, but if the Union Pa-