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Purchase of water system- Wardie Addition, Las Vegas, Los Angeles, Nov. 3, 1931 Mr. A. S. Halsted: Please note Mr. Shaughnessy*s letter of October 30th enclosed, to which is attached copy of correspondence between Public Service Commission and Sorth Nevada Land & Development Company relative to the above, together with my entire file in the matter. Will you kindly return enclosures when they have served your purpose. South Nevada Land & Development Company serves the Wardie Addition under franchise held by it, and its retail rates are based upon the uniform wholesale rate of eight cents paid Las Vegas Land and Water Company for each 100 cubic feet of water delivered. It is a fact that Wardie Addition retail rates are unremunerative, and application to the Public Service Commission for an increase of approximately one-third more than we asked the Commission to allow Las Vegas Land and Water Company is now pending. In the meantime, it has declined to make payment to Las Vegas Land and Water Company for the months of August, September and October, amounting to approximately $650.00. The contract between Las Vegas Land and Water Company and South Nevada Land & Development Company is in compliance with the provisions of Chapter 103 of the Statutes of Nevada, 1920, 1921, which was approved by the Public Service Commission, and Insofar as the furnishing of water to Wardie Addition is concerned, Las Vegas Land and Water Company as seller, is not, under the law, deemed a public utility, nor subject to the jurisdiction of the Public Service Commission. However, in my opinion, a question of policy is very much involved. Mr. Shaughnessy has suggested to me from time to time that it would be well for Las Vegas Land and Water Company to take over the Wardie Addition franchise so that the same retail rates could be applied. While under the law we can stand our ground and insist upon payment of the wholesale charges provided in our contract, a public hearing on the wholesale and retail rates to be applied to the Wardie Addition would in all probability bring about a review of the factors considered In fixing a basis for the recent increase of water rates applied by Las Vegas Land and Water Company and might, and probably would if carefully scrutinized, disclose that the rates allowed Las Vegas