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COPY Las Vegas - January 5, 1942 W 23-1-17 Mr. C. B. Sexton, Chairman, Public Service Commission of Nevada, Carson City, Nevada. Dear Sir: Referring to our conversation when you were last In Las Vegas, with regard to Installation of water mains for the McNeil Housing Company, south of Charleston Boulevard. I very much appreciate the statement given the press, by yourself and Mr. Smith, with regard to the fairness of Rule 9 and its practice in other cities besides Las Vegas. However, I have borned in mind the reference in our discussion to the fact that a national emergency exists and we should all go out of our way to assist in every way possible. With this thought in mind we have had some further conferences with the McNeil Company, as well as our own officials and have tentatively agreed to permit the McNeil Company to install their own water mains within the tract; and refund the cost to them after the first 80 units are actually constructed. The main purpose of Rule 9 is to require some evidence of good faith on the part of the promoter before the Water Company extends its mains; for this reason, under Rule 9, the promoter is required to advance the cost of the mains. However, in this particular instance, if the promoter will actually construct 80 houses and install the water mains at his own expense, we would feel that he has shown good faith and would be willing to refund the cost of the mains after the houses have actually been constructed. On arriving at this tentative agreement it was definitely decided that no action whatever would be taken thereon until the approval of the Public Service Commission had first been secured. With that thought in mind I am transmitting a copy of the proposed agreement between the Lag Vegas Land and Water Company and the McNeil Housing Company. If this