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March 30, 1943 R-58 Mr. C. B. Sexton, Chairman Public Service Commission Carson City, Nevada Dear Mr. iSexton: Referring to the Commission1s approval of various contracts submitted by Las Vegas Land and Water Company to cover extension of water mains to Defense Housing projects, particularly the one to Mayfair Tract No. 2 covered by Commission's file No. 521 dated March 1, 1943. Separate contracts were drawn in this instance to cover Block 7 (our "N" .L.D. 900) and Block 8 (our "N".L.D. 878a) and separate orders were issued by the Commission indicating approval. The 34 houses referred to in "N".L.D. 900 are now completed but so far as we can see nothing whatsoever has been done on construction of houses in Block 8 covered by "NH.L.D. 878a. We inquired of the contractor this morning when he expected to commence construction of the houses in Block 8 and were advised that he did not intend to construct them; arid that his principals, Drs, Nelson and Shipley had decided to let their option expire on this land. He stated that they are having considerable difficulty in disposing of the houses already constructed and that apparently the building of Defense houses in Las Vegas was being overdone. I attach hereto a tabulation indicating by sub­divisions the number of houses for which we have underwritten water main costs under Rule 9-C together with the investment, I might say that this study is confined exclusively to Defense Housing projects installed under Rule 90C, and does not in­clude the large number of additional houses constructed in locations where water mains were already in place. The last six items marked (#) are not completed, nor of course, occupied although the water mains are in place on all except the last 177 contemplated for Huntrldge, It would appear from this that approximately 450 of these houses are now occu­pied and 652 ©.re not.