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COPt BAIT PEDRO* LOS ANGELES AND SALT LAKE RAILROAD COMPANY Mechanical Department Los Angeles, Cal.* September 22, 1909. Living quarters for employees at Las Vegas. Mr, R, E. Wells, General Manager, City. Dear Sir:- I return herewith correspondence which care to me with your letter of September twenty-first, on above subject. In view of the fact that we have established a price for house rental at Caliente, of §10.00 for four room housed'and §14,,QO for six rooms, I believe there will be more or less adverse criti­cism if prices for cottages at Las Vegas are in excess of these amountsj however, if the houses are more comfortable and desirable than those at Caliente, I believe the limit should not exceed *16.00 for four-room houses, and $80.00 for five tooms. There are plenty of modern cottages of five and six rooms in the flat near shops at Los Angeles which are renting for §15,00 and §30.00 per month, and the actual valuation of the lots which they occupy 4s from §1000.00 to §1500.GO each. I do not believe it would be wise to figure on anything more than a four or five per cent profit on the investment at the beginning, and* later on* after we have an organization at Las Vegas that can be depended upon, a greater profit could be exacted on the investment if it was considered advisable. Any excess in cost of living at Las Vegas will be eagerly offered as an argument by employees for high rate of pay at that point, and this should be con­sidered in arriving at the rental price for company houses. Yours truly, (Signed) F. E. DAVISSON. if