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H .W . O’MELVENY 1885-1941 campb^ul Realty go. LOUIS W. MYERS JOHN tfMELVENY PAU L FUSS ELL WILLIAM W. CLARY HARRY L. DUNN JAMES L.BEEBE PIERCE WORKS HOMER I. MITCHELL 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 EDWARD C . FREUTEL, JR . JOHN A. POWELL FREDERICK N.EDWARDS ADRIAN C. STANTON LAUREN M. WRIGHT RODNEY K. POTTER PHILIP A.LOOMIS, JR . GEORGE F. ELMENDORF ROBERT W. LEWIS RUTH ANN SAYLE4* HOWARD J . D E A R D S V . FRANKLIN T. HAMILTON JAMES E. DUNLAP PHILIP F. WESTBROOK,JR HUGH L.MACNEIl! ' CLYDE E.TR ITT ERNEST M.CLARK,JR. EVERETT B.CLARY BENNETT W. PRIEST JAMES E.CROSS S U B J E C T E.HARLEY WALTHER JAMES W. BEEBE RICHARD B.RAGLAND WARREN M.CHRISTOPHER WILLIAM E.WILEY,JR. RICHARD F. IGL ROY E. POTTS ROGER WILLIAMS R.BRADBURY CLARK GILBERT E.HAAKH WENDELL B.WILL WILLIAM L.SCOTT EDWARD B .S M ITH ,in DONALD R.HODGMAN R. BRUCE HOFFE NEVINS D. YOUNG DOUGLAS F. RICHARDSON LAW O F F IC E S OF O ’ M E L V E N Y St M Y E R S Jun Z3 9 12 AM ’5*1 •433 S O U T H S P R I N G S T R E E T L O S A N G E L E S 13 H O L L Y W O O D O F F I C E 6 9 2 0 S U N S E T B O U L E V A R D L O S A N G E L E S 2 8 June Slat 1 9 5 4 C A B L E A D D R E S S “M O M S " I N R E P L Y R E F E R T O B-2805 LAS VEGAS VALLEY WATER DISTRICT Mr. Nelson Conway Messrs. Conway, Mae, Hlbbs & Funston 440 Hoover Avenue Las Vegas, Nevada Dear Mr. Conways This will confirm our telephone conversation of last Friday concerning the time at which a rate increase must be effected by the Las Vegas Valley Water District after the acqui­sition of the water facilities of the Las Vegas Land and Water Company. You inquired whether it would be necessary for the District, as a matter of law, to immediately put a rate increase into effect. At that time I advised you that there was no legal requirement that the rate increase be put into effeet at any particular time and that, accordingly, the District could, upon your recommendation and that of Mr. Renshaw, acquire the water system and continue the existing rates for a period of time. After our conversation, I further checked the pro­visions of the Districts resolution of bond issuance and find that my previous statement must be qualified to some extant. Under the provisions of Section 18 of the resolution, the Dis­trict must ”not later than the first day of the fourth month next succeeding the month in which the District shall acquire the facilities of the Las Vegas Land and Water Company” commence to set aside from the Revenue Fund amounts which will be sufficient to pay the first installment of interest due on March 1, 1955. It is my understanding that the present rates are not sufficient to provide for the first interest payment. Accordingly, it would appear that a rate Increase must be effected before the expiration of the above mentioned four-month period and that the rate increase