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August 5, 1952 Memo to E . E . B .: The President has sought blanket authority from the Executive Committee to dispose of the water properties at Las Vegas upon such terms as seem reasonable at the time. Mr. Bachman called me yesterday to say that he had a long wire from Mr., Gharske asking several questions upon which he would like our help in answering. I told him I would try to get some information from O’Melveny’s office and more from other sources and call him today. If I do not reach him by the time I have to go to Court, I think it would be well for you to get the information and call him. 1. First Mr. Charske wanted to know what the lien of the bonds issued by the District would cover. Bachman did not know exact­ly what he meant by this, and I suggested he might be thinking that the District would issue a first mortgage bond. I do not know whether a public district can le­gally issue a first mortgage bond which can be enforced by foreclosure, or if they can, whether this District is thinking of issu­ing such a bond. My understanding was that they were merely thinking of issuing a gen­eral obligation bond which would be payable out of both revenues and taxes. In a sense such bonds would be a lien on all of the property in the District in the sense that property can be sold for failure to pay taxes levied by the District. 2. Charske wanted to know what the interest rate on the bonds would be, and if the Union Pacific had sought the advice of any investment expert as to whether the bonds would be salable at par. I told him I was sure that no one out here had sought any such advice, but I knew that one or two in­vestment house representatives had been talking to you or Bill Reinhardt, obtaining information about our properties.