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Los Angeles, December 29, 1952 #0*11 Mr. W# I* dousei 4oc ** Mr* A* &• Slo d ^ A fd i Mr* «Sm* teiahardt } Mr. Y* H* Bulstserl Mr. H* It* Sutton I Mr. Calvin M* Cory; Mr. It. L» Adamson } Mr. If.. 8* j©Mas©#/ Copies of enclosures to aach* 1 m enclosing copy of w i s e d draft of suggested proposal of the U s Vegas Valley Water District for the purchase of the eater productloo ami eater distribution facilities of the tailroad and L¥L4WCo»pany at Las Vsgas and copy of reelsad draft of suggested letter of accept* aace. These drafts hare bean revised as the result of Mr. Reawlek** conference with you and other officer* at Omaha recently* I I have noted Mr* Sutton*s earnest in hie letter of December ITtfe with reference to segregating the material and supply account as between maintenance materials and materials held for addition* and betterments* It is my information that most of the materials and supplies on hand charged to this account are materials and supplies which eventually are used la addition and betterment projects, but that there is no way is which a segregation can be node of materials held for maintenance and those held for add!tlone and betterments. X think Mr*- Sutton is correct in taking the view that it is not entirely logical for the District to obtain the full benefit of the amount outstand­ing in this account as of September 1, 1952, and be re­quired by other provisions of the agreement ditions and betterments made after Septembe rt o1 , pa19y5 2f*o rh oadw­­ever the negotiations appear to have been made on that bas­is, and X believe we would b# departing from the understand­ing which the District obtained in conference# with us if we were to follow Mr* Sutton*# suggestion. Therefore the revised draft of the proposal does not incorporate his suggestions. If you decide that his suggestion should be faoll lboewfeodr,e aipt prios prsiuabtmei trteevdi stoio tnh cea nD ibset rmicatd,e biunt thXe tphrionpko sit­will meet with resistance*