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Lg 3 Angeles, August 4, 1934 oO—1 2 Mr. B. M. Sutton* (cc - Mr, W. H, House Mr. W. H. Hulsizer Mr. vim. Reinhardt Mr, If. H. Johnson Mr. C. M. Bates) 1 have your raailgram of July 30th regarding billing by Union Pacific for general administrative, management, engineering, legal and accounting services furnished to LVL&WCompany. These services are furnished pursuant to Section 9 of agreement between the two companies dated November 3tf, 1930, UP Audit No. 7 4 5 3 1 and LVL&W Audit No. 1056?• Xt Is my view that Section 9 of that agreement should be terminated as of June 30, 1934. , Xt may be that the accounting Department will wish to make a charge to the LVL&WCompany for services rendered after July 1, 1954, in connection with the closing of the books of the Water Department of the LVL&WCompany, but it |§1 appears to me that that should be a separate item and not a charge made pursuant to the estimates which were made by all departments for services normally rendered in the main­tenance and operation of the Water Department. ? « ' . The agreement between the same parties dated August 1, 1953* UP Audit No. 30J00 and LVL&W Audit 10699* providing for granting of revocable license by Railroads to Water Company for water transmission and power lines and for fur­nishing of water by Water Company to. the Railroads, has ex­pired by its own terms, but it probably is. desirable to pre­pare a formal termination for record purposes. 2 also agree that commencing as of July 1, 1934, no further charges should be made against the LVL&W Company for such services.by the Union Pacific because such charges relate solely to services furnished in connection with the management of the,. Water Department of the LVL&W Company. Xt may be that our executivesMwill desire to mates some charge against the LVL&MCempany for management services furnished in connection with its other functions, but that is not re­lated to the charges which have to do solely with the Water Department of that company.