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Las Vegas - February 25» 195^ ¥W 92-61 i-—3 Ilf Mr* Wja* Reinhardt - Los Angeles cos Mr. £. £• Bennett Please refer to your copies of my letters to Mr. James M. Montgomery dated December 30, 1953 and January 2?, 1956-# relative transfer of certain items of transits pipe and fittings from Railroad accounts to LVL&W MOK account so that when the District yU^akes over the ledger value thereof will be added to the basic purchase price in accordance with Agreement rtC#L.D. 113^2. Also lease refer to your letter dated December 17, 1953» requesting hat I handle this matter with the Water District and ascertain if they will desire to acquire any of these materials in connection the sale of the water facilities to them. Mr. Montgomery has not replied to my letter of January 27th, and I therefore called him on the phone and requested advice as to what stand the District is going to take with respect to the acquisi­tion of the transits materials listed in attachment to my letter of ecember 30th. U Very much to ray surprise, Mr. Montgomery seemed to take the position that, since the materials in question were purchased primarily T f t h J> for use in oonneotion with the water facilities being sold to the District, these materials might be deemed to have been included in the purchase price and that he wanted to ascertain the District’s ideas in this respect before answering my letter of December 30, 1953* X told Mr. Montgomery that our inquiry as to their desires In this matter was merely a matter of courtesy since the Agreement with th© District does not require that we consult with them as to the kind