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upr000070-309
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I agree.Lob Angeles, March 9* 1954 File: 80-11 Mr. R. M. Sutton (cc -Mr. W. R. Rouse Mr. W. H. Hulsiz Mr, L. R. Maag) Your letter of March 4, 1954, with respect to donations received by the LVL&WCorapany under Work Orders 742 and 760i There is no provision in the purchase and sale agreement of June 1, 1953, for adding any amount to the basic purchase price for additions and betterments made after September 1, 1952, where no expenditure has been made by the sellers with respect thereto except the provision of Section 9(c) of the agreement relative to amounts charged to Investment Account for additions and betterments made pursuant to Rule 9 of the Rules and Regulations of the Water Company. I do not know under what circumstances the facilities referred to in your letter were made, but if they were not made pursuant to Rule 9, 16 is W opinion that the amount donated cannot be properly added to the purchase price. E. E. Bennett 3 11 ^