upr000150 19

Loe Angeles, January 24, 1942. Nr. Leo A. MoMamee: Kr. Walter H. BraeJten; Mr. NoNaraee* s letter of January 23rd en­closing copy of draft of proposed rule to cover defense Lousing projects. I gather from the modifications contained in this rule that it is now your thought to require the contractor or eubdlvlder to advance the cost of the stain line extension to the subdivision as well as the laterals therein. If that is the thought, I have made changes in the proposed rule and an submitting a re­vised copy herewith. The first change is that the words "to serve* have been changed to *to and within*. In the second change I have Inserted after the words "number of houses" the words "which such others agree with the Company to construct". The reason for this is that the mains to the subdivision will be laid prior to the aotual construction of the houses therein. A further change has been made towards the latter part of the rule where the words "suoh de­fense housing projects at herein defined* have been deleted and the words "the number of houses required by said contract* inserted in lieu thereof. J also note you have reinstated the 24 months provision which Nr. Sexton eliminated. Possibly you have discussed this matter with him, but so far as I am concerned, it is*. immaterial whether that limita­tion is in or out of the rule. I have further inserted in the proposed rule the following language: "Such contract may contain other reasonable provisions not inconsistent with the other provisions of this rule." The purpose of this is to permit ue to provide in our