Evening star. [volume] (Washington, D.C.) 1854-1972, 1888-12-20
THE DISTRICTS SURPLUS.
The Proposition to Apply It to Paying
OF the Water Debt.


The proposition to pay the Districts share Of
the water works debt with the surplus that
has accumulated in the Treasury to the credit
Of the District has caused considerable discus
sion Congress intended, at the time the ap-
preparations for extending the water supply
were made, that the Districts portion, ONE
half, should be paid by the water takers only.
The act providing for the extension Of the
aqueduct directed that the Districts share OF
the contemplated expenditure should be lqui-
dated by the payment Of twenty-five equal an
nual installments, to be paid from the revenues
Of the water department. 1t is argued that
the proposition to abandon the plan of making
the water-takers pay for the improvements in
the service is not equitable. Appropriating
the surplus revenues of the District to this OBJ
ject would practically be requiring the entire
tax-paying population Of the District to pay
the debt.
In conversation with STAR reporter on the
subject the other day government official, a
fnancier, whose duties have brought him into
most intimate relations with the money mat
tiers Of the District said
THE total amount appropriated by the gov
eminent for the increase of the water supply Of
the city of Washington is q, $40. 279 80 one-hah
of which is to be refunded by the District in
twenty-five annual installments. and 8 per cent
per annum paid upon the principal sum remain
purpose for the fiscal year Of 1889 is ssS 962 IS.
j mention these facts to give point to what am
going to say later. Complaint is now made Of
the water tax as excessive and burdensome,
and the revenues are scarcely adequate to meet
the expenses of the water department.. The
total expense of increasing the water supply
has not yet been determined. and the amount is
more likely to increase than diminish. 1t
would seem, therefore, that il any surplus
funds of the District could be applied to
this debt il would be equivalent to in
vesting it at per cent per annum,
which would certainly be better than leaving
it TO lie idle in the Treasury. This surplus
fund is not invested now; it is simply deposited
In the Treasury without drawing a cent of in
terest. while the District owes a debt to the
United States Of over 81. 900 900, which, by
law, 1t cannot pay in less than twenty-five
years from the present time, and which is all
the time drawing interest at the rate Of three
per cent. In view Of the fact that the idle
surplus is. or will soon be, sufficient to liqui-
date this debt. and looking at the matter from
purely financial standpoint, should say that
the government has at present by far the best
end of this Legislative bargain. II this sur
plus in the Treasury drew interest from the
government things would be equaliZed. but as
it stands, the best remedy, in my opinion, for
this bad state Of things is to apply the surplus
to this Understanding debt This would, of
course, require a new law amending that pro-
viding for the liquidation of the debt by an
nual instalment.
The Commissioners OF the District are ad-
vocating bill to abolish the water tax and
providing for paying the expenses of the water
department from the general fund. If this bill
should become a law it would accomplish in an
indirect manner the object proposed by the
amendment to the District appropriation bill.
Of applying the surplus to the payment of the
water debt. The water debt would become a
burden upon the whole tax-paying population
instead ofupon the water takers only. Complaint
is made that the whole amount of the District
revenues are not appropriated for improve
menss. but so long as they are not so appropri-
ated it would seem to be wise to utilize the
surplus in an economical manner"
In answer to the argument that the whole
body of taxpayers should not. in equity, be
made to pay for the benefits enjoyed by the
water-takers, it is claimed that the extension
of the water-works system is improvement
to the District at large, and it should be paid
for by the District
1t is urged. too, that the water-takers being
in vast majority their interests should be re-
garded as those of the community.