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M r. W. R, R o u se 2. May 6 , 1 9 5 4 should be lib e r a l enough to in clu de the c o st o f the two new w e lls which are now being d r ille d and a l l oth er ex^ pen dltures fo r a d d itio n s and betterm ents to the w ater system which can reasonably be expected to be made p r i­o r to July 1 , 19 54. In the S ale Agreement no attem pt was made to a l lo ­ca te the amount o f the purchase p ric e o f the w ater sy s­tem as between the R ailroad Companies and the Water Com­pany. The on ly property which w ill be conveyed to the D is tr ic t on the s a le date by the R ailroad Companies w ill be the easements fo r pipe lin e s and power lin e s re fe rre d to in paragraphs 4 and 5 o f S ection I I I o f the Escrow In ­s tr u c tio n s . I presume fo r tax or oth er reasons there should be an a llo c a tio n o f some p ortio n o f the purchase p ric e to the R ailroad Companies as co n sid era tion fo r the gran tin g o f th ese easem ents. A ccordingly i t may b© de­s ir a b le to have the escrow in stru c tio n s f i x a c e r ta in sum to be paid to the R ailroad Companies and the balance to the Water Company. I should ap p reciate the su ggestion s o f Mr. H u laizer and Mr, Sutton on th is p o in t and a s t a t e ­ment from them o f the amount o f co n sid era tion which should be a llo c a te d to the R ailroad Companies. I would a ls o su ggest th a t Mr, Stoddard au th orise Mr. Reinhardt to execute a l l escrow in stru c tio n s or su pple­ments th e reto in connection w ith the tr a n sfe r o f the wa­te r system . We are asking the attorn eys fo r the D is tr ic t fo r an e a r ly conference to d iscu ss the form o f the various doc­uments to be executed by the S e lle r s and I hope to be ab le to send these documents forward fo r execu tion a t an e a r ly d a te . I would a ls o su ggest th a t you d iscu ss w ith Mr. B u rr! and le t me have h is comments w ith re sp e ct to the p ro v i­sio n s o f Paragraph X o f the proposed Escrow In stru c tio n s which d eal w ith the nature o f the d ep osit o f funds in the escrow and the s e c u r ity th e r e fo r . I t may be th a t these p ro v isio n s are somewhat s tr in g e n t. However I c a ll your a tte n tio n to the fa c t th a t S ection 24 o f the R esolu tion o f the Board o f D irecto rs o f the D is tr ic t provid in g fo r the Issuance o f i t s bonds, found a t page 10 o f Appendix ' A” to the P rospectu s, provides th at a l l d ep o sits o f funds