Evening star., 1923-01-21
S)0,0DOT0 Be
! USED IN SUBURBS
Sanitary Commission Plans
Extensive Water and Sewer
improvements.
PURPOSE OF BOND SALE
Chevy Chase, Takoma Park and
Hyattsville Among Places to
Profit by Issue.

One Of the biggest nnanciai tr0nS-
actions TO be consuTn1ated In the
District Of Columbia for long time
was put through yesterday when the
Washington Suburban Sanitary Com
mission opened bids for the purchase
OF 100000 Az per cent. bonds, ma
turing in fifty years, with the option
of redemption after thirty years.
The issue was sold to Dean, Ona-
tivia & Co. of Wall street. New
York, with local Offices in the Wood
ward building, at their bid of $3.50
per 500 of par value. The next high
est bid offered was that OF the Mer-
camille Trust & Deposit Company or
Baltimore and their associates at
sS75l. -,
be used by the commission for the
further extension of its water and
sewer lines in the Maryland suburban
territory adjacent to Washington ana
more particularly for water and and
Chase. north OF Takoma Park, north
of Hyattsville, and in the Seat Pleas
ant neighborhood.
Discussing the situation in the
Washington suburban sanitary dis
trict and the use to which the money
derived from the sale of the bonds Is
TO be put, T. Howard Duckett, chair
man of the commission, said last
night:
Plans for Expansion.
"Since its organization in May, 1918,
the commission has practically COM
pleted the acquisition of all of the
plants within it's territory. embrac-
ing an area of ninety-one square
miles contiguous TO the District OF
Columbia line. 1t has acquired the
municipal water and sewer systems
nS nd
Prince Georges county, and Takoma
Park and Kenstngton, in Montgom-
cry county. and IL has acquired the
privately owned plants in these coun-
systems Of Chevy Chase, Edgemoor.
Friendship Heights. Somerset. De-
catur Heights and Cottage City.
The systems in Montgomery
and are now being supplied with
water from the filter plant and
pumping station at Takoma Park.
where the facilities have been greatly
1890, the. commission completed and
put into operation a filter plant and
pumping station at Hyattsville with
maximum capacity OF over one
plants, together with the Mount
Rainier plant which Is still operated
parately. supply the whole OF the
territory. and have u combined ca
pacity of nearly two million gallons
per day. -.
Water Systcms Operated.
Within this time, in addition 10
the acquisition of the enumerated
plants, the commission has CONSTRUCT
cd and is now operating complete
water systems for Riverdale, Brent
wood and BladenSburg, connected
with the Hyattsviile filter plant and
is preparing to install a water sys-
tenn in College Park from the same
source. 1t Is about completing sewer
systems for Riverdape, Brentwood
work under way is finished ali of
the towns that are on the Baltimore
pike and the baltimore and Ohio
railroad from the District of Co
lumbta line to College Park will have
complete sanitary facilities.
I'm Montgomery county it has made
many extensions in the neighborhood
OF Takoma Park and installed water
and sewer systems III Silver Spring.
just north of Takoma; water and
Northwest Park on the Rockville
pike, and extensive work has been
done in both water. and sewer sys-
tenn extensions in and around the
Chevy Chase district
$2.OOO,oOO Already spent.
The cost of this work, not includ-
ing the present issue of bonds, has
been approximately two million dol
lars. the commission having issued
S1,SSo,O00, and assumed outstanding
ponds on existing systems of $219,60O.
The payment of interest and provi-
sion for the sinking fund on these
bonds is provided for by annual front
foot assessment against property
abutting upon the water and sewer
lines, which has not yet exceeded
20 cents per front foot for both
facilities, the assessment being levied
annually for period of years corr
responding TO the maturing of the
bonds.
The present seasons program will
practically complete the most nee
essary construction and provide ia
cilfties for the buiIt-up section Of
this territory. Thereafter. the COM
mission will simply be required to
take care of development in these
rapidly growing communities"
Operations Investigated.
Dean, Onativia & Co.. the purchas-
ers Of the bonds. plan to issue them
20 the public very soon. Mr.. O'Laugh-
lin, manager of the Washington
branch of Dean, Onatiyia & Co.. said
that the firm, before making its bid.
had made a thorough investigation of
the financial situation in the sani-
tary district and had satisfied itself
as to the financial soundness of the
commissions operations.
There is no doubt. in the mind of
Mr.. OLaughlin that the bonds will
be readily absorbed in part because
Of the value they represent and be-
cause of the favorable conditions
which they possess.
The bonds are payable out of
special tax required to be levied upon
all of the taxable property within
the sanitary district. assessed at over
s3o,000,000, as well as by the benefit
assessment on the front foot basis,
to be imposed and collected by the
commission, and are further guaran-
teed, both as to principal and inter
est, by the county commissioners of
both Montgomery and Prince Georges
counties
Tax Exempt I'm Maryland.
The genuineness Of the signatures
and seals of the commission and re-
spective counties will be certified to
by the Mercantile Trust and Deposit
Company. indorsed upon each bond.
Approval of this issue has been
given by the public service commits
sion and is further subject to the ap-
proval of Chester B. Masslich, at
torney. of New York city. The bonds
are by law exempted from taxation
in Maryland and have the same ex-
emption from United States income
or other taxes as other state and mt
7icipal bonds.
Supplied Him.
From the Kansas City Star.
The clerryman had called unex-