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Mr. Wm,. Reinhardt - Page 2 or extent of materials which would be Included in the Water Company's inventory on the sale date and which would therefore be acquired and paid for by the District as of that date provided, of course, that these materials were acquired for the purpose of the operation and maintenance of the facilities being sold to the District. I do not see how, by any stretch of the imagination, anyone could take the position that these materials were included in the basic purchase price since there is nothing said in the Agreement which could be interpreted as supporting such a position. As you know, these materials are of no use whatever to the Railroad Company, and I am of the opinion that if the District supports Mr. Montgomery's position, then all of the usable items in the list attached to my letter should be arbitrarily transferred into the inventory of the Water Company so that the Dlstriot would thereby be obligated to assume their cost and ownership on sale date. If it is not deemed desirable to follow this procedure, then the Railroad Company should dispose of these materials for whatever they could get out of them so that the money Invested in them would not be a total loss. I am opposed to making a gift of these materials to the District as Mr. Wlekstrom has set a total value on them of f>2,837»3^» Would appreciate your advice in this matter, L. R. Maag /