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W.H JUL 28 Subject: Las Vegas Land and Mr. Frank Strong: Referring further to that part of Mr.Jeffers’ letter dated May 25,1942, No.199, to Mr.W.R.Bracken regarding approval of any deviations from the regular scheduled charges for water furnished by the Las Vegas Land and Water Co: Messrs. Ure and Barnes have returned from Las Vegas where they made an on-the-ground survey of the water situation as referred to in my telegram of July 12,1942, No.W 60, to Messrs. G-.F.Ashby and you. As a result of this survey the fol­lowing conclusions are given: Commission’s Order: The Order is definite as to vacancy allowances to apart­ment houses, bungalow courts and auto camps, subject to prescribed minimums. It cannot properly be construed as also applying to hotels as the disparity in rates Indicates the contrary. It likewise, cannot be properly construed as justifying a flat per­centage continuing over changing housing conditions such as have prevailed in Las Vegas during the last two or three years. Apartment Houses. Bungalow Courts and Auto Camps: Should be granted vacancy allowances on the basis of actual vacancies,- subject to practicability of application. This is the only way that "appropriate vacancy allowances" can be properly gauged. Review Indicates that this can be done with­out additional expense or inconvenience to either the Company or its customers. As of May 1,1942, without definite authority from anyone, the Las Vegas officers discontinued vacancy allow­ances to these customers. That action was not in accord with my understanding, l.e. that the matter would remain in status quo until all necessary Investigations had been completed and was contrary to the Commission’s order. It naturally resulted in a number of owners of such facilities withholding payment of their bills until a satisfactory adjustment could be given them. After discussion of the practicability of adopting a vacancy allowance program for these owners on an actual basis, Mr.Bracken concurred In the plan and arranged, effective July 15, 1942, to have owners of apartment houses, bungalow courts and auto camps submit to him when paying bills, a statement showing the actual vacancies for the previous month from which appropriate allowances would be computed. It was understood that adjust­ments where appropriate would be made in bills already paid for months of May and June. Hotels: T . Are not included in the Commission’s Order as being M2 4