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H.W. O’MELVENY-1885-1941 LOUIS W. MYERS JOHN O'MELVENY PAUL FUSSELL WILLIAM W. CLARY HARRY L. DUNN JAMES L.BEEBE PIERCE WORKS HOMER I. MITCHELL CLINTON LATOURRETTE GRAHAM L.STERLING.JR. W. B.CARMAN MAYNARD J.T O L L JACKSON W.CHANCE JAMES M. IRVINE,JR. SIDNEY H. WALL RICHARD C. BERGEN WILLIAM P. MARTIN DEANE F. JOHNSON RAY H. LINDMAN JAMES C.GREENE WILLIAM W.ALSUP LAW O F F I C E S O F O’ MELVENY 6c MYERS 4 3 3 S O U T H S P R I N G S T R E E T LOS AN G ELES 1 3 6 9 2 0 S U N S E T B O U L E V A R D H OLL YWO OD 2 8 JOHN A.POWELL FREDERICK N. EDWARDS ADRIAN C . STANTON LAUREN M. WRIGHT RODNEY K.POTTER PHILIP A-LOOM IS,JR. GEORGE F. ELMENDORF ROBERT W. LEWIS RUTH ANN SAYLES HOWARD J.DEARDS EDWARD C . FREUTEL.JR. FRANKLIN T . HAMILTON JAMES E.DUNLAP PHILIP F. WESTBROOK.JR. HUGH L.MACNEIL CLYDE E.TRITT ERNEST M -CLARK.JR. EVERETT B.CLARY BENNETT W. PRIEST JAMES E.CROSS E. HARLEY WALTHER JAMES W. BEEBE RICHARD B. RAGLAND HARNED PETTUS HOOSE WARREN M.CHRISTOPHER WILLIAM E.WILEY, JR . RICHARD F. IGL ROY E . POTTS ROGER WILLIAMS R.BRADBURY CLARK February 24th 1 9 5 3 C A B L E A D D R E S S “M O M S ' - IN R E P L Y R E F E R T O B-2805 S U B J E C T LAS VEGAS VALLEY WATER DISTRICT. Mr. Thomas A. Campbell, President Las Vegas Valley Water District 135 South Fourth Street Las Vegas, Nevada Dear Mr. Campbell: This will acknowledge receipt of various letters recently received concerning the offer, acceptance and formal contract of purchase between the Las Vegas Valley Water Dis­trict and Union Pacific Railroad Company and its subsidiaries. As bond counsel for the District, the provisions set forth in the offer and acceptance appear to be satisfactory with one possible exception. One of the conditions in Union Pacific's acceptance is Condition 5, which would require a provision in the formal agreement for termination of said formal agreement on Decem­ber 31, 1953 "if on or before that date [the District] shall not have paid the full purchase price for said properties." For reasons which are hereinafter mentioned, we feel that said deadline might force the District to engage in a premature marketing of its bonds. From the time that the Water District undertook active measures to acquire the existing water supply and dis­tribution system of Las Vegas and to obtain a new supply of water from Lake Mead, it has been recognized that it is highly important to the success of the project that the interest charges on bonded indebtedness be held to a minimum. It is important that the directors of the Water District have power to time the marketing of bonds to obtain the best possible bids.