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Omaha - t, G, M W 23 1954 May 2.4, 1954 Mr. E. E. Bennett - Los Angeles 704-36 (CC-Mr. A. E. Stoddard Mr. Wm. Reinhardt - Los Angeles Mr. W. R. Rouse Mr. W. H. Hulsizer Mr. L. R. Maag - Las Vegas) In compliance with request contained in Mr. Maag*s telegram M-70 of April 29, 1954, representatives of our com­pany met with representatives of the Las Vegas Valley Water District to establish firm figures for the period subsequent to September 1, 1952 for use as additions to and deductions from the basic purchase price of $2,500,000, in connection with the sale of our water properties at Las Vegas, Nevada. The meeting was held in Las Vegas on May 10, 1954, and the subsequent audit which lasted through May 19, 1954 included a thorough examination of our books, accounts, records, and underlying documents, by the C.P.A. firm of Conway, Moe, Hibbs and Funston of Las Vegas. The participants in the audit were; For the Water District: L. H. Conway, CPA (part time) L. I. Loren, CPA K. F. Rudd, Accountant (part time) I. W. Bradshaw, Accountant (part time) For LVL&W Co.: L. R. Maag, General Manager (part time) M. E. Davis, Asst, to Gen.Manager (part time) Ned Doty, Traveling Auditor (part time) W. P. McCafferty, Asst. Traveling Auditor C. G. Parkinson, Accountant, General Auditor* s Office The Water District*s representatives reviewed the records for the period September 1, 1952 to April 30, 1954. No formal exceptions whatsoever were taken to any of our figures and the net total of $2,317,663.43 was accepted as representing the actual sale price brought down to April 30, 1954. However, Mr. Conway orally stated that while he was not making a formal exception to the net figure mentioned above, he was going to call the District*s attention to the fact that included therein as an addition to the basic purchase price were 53 work orders involving $18,633.79 representing the con­struction of fire hydrant laterals, the cost of which was paid