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Los Angeles, April 22, 1943 Mr* Charles Adams: ir.nD oo - Hr. Valter R. Bracken ,a ^943 Mr* Frank Strong Mr. 0. L. Rail In connection with the Las Vegas Land and Water sit* uation Messrs. Bracken, HoNamse, Hall and I had quits a lengthy discussion with Mr. Charles B. Sexton in Las Ve­gas last Tuesday. Although the disoussion was primarily called for the purpose of taking up other matters, Mr. Sexton got around to tax problems, and in view of your pending meeting with him 1 thought you might desire to be adwised of some of his views! Z am enclosing a oopy of an exhibit which was intro­duced at the hearing in Cass Mo. 1123 in Nevada, being a general investigation of the Las Vegas land and Vater Company. You will note on page 2 one of the items of the oost of produoing water was Taxes - Estimated, this figt» ure being the presumed allooatlon of the taxes paid by the Union Paoifio in Nevada to its water properties and wells in Las Vegas. Mr. Sexton was very critical of that item, stating first that the taxes of the Union.Pa­cific in Nevada would not be reduced in any way Whatso­ever if that land was not owned by the Union Paoifio. He also stated that it was impossible to determine how any allocation was being made and inferred that irrespective of how it was being made, it was too high. You may de­sire to be prepared to dlsoues this natter with him shea you next go to Carson, as he will no doubt bring it up. He also brought up the question of the taxation of the property of the Vater Company Itself in Las Vegas, stating that the assessed valuation of the satire com­pany to date was #150,000, and our annual report showed assets of #217,000. He is suggesting that the assessed valuation might be increased. His principal oomplaint seems to be the relative assessed valuations of the Las Vegas Land and Vater Company serving a city of around 20,000 people compared with the assessed valuations of water companies serving other cities in Nevada.