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upr000031-085
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    Memorandum i Mr. 0 A. Bell, who, together with his Phoenix associates, intend to subdivide and develop the acreage between North Fifth and North Main Street, now under option to a local syndicate, called at the office this afternoon and stated that Federal Housing loans had been restricted, on orders from Washington, to the §00 houses to be built by McNeil Construction Company The application of Bell and his associates was first * , submitted through the bank, but for some reason was delayed sufficiantly so that the application of the McNeil Construction reached the F. H. A* first* The ruling is that these applications will not be pro-rated, but will be granted to the first party making application to build 500 houses, that is, the McNeil Construction. If this "freeze out" is enforced, it will result in a monopoly for McNeil Construction and will prevent the development of the town in other directions. It is suggested the Water Company can prevent this by refusing delivery of its entire extra production to the McNeil project and insist upon pro- rating to various developers and individuals who may wish to apply to F. H. A. * A. M. F. Nov. 21, 1941