Evening star., 1926-03-19
To the Editor of The Star

To the Editor of The star:
The article published in The Star
TUESDAY on the rate increas Sc to Wash
ington consumers for water directed
in the pending appropriation bill con
tains statements and figures which
NAV give the public rather wrong
impre ssion as to the facts in the case.
This large increase in rates is de-
clared necessary To avert a deficit IN
the fund for operating and maintain
ing the water supply system, unless.
as Commissioner Bell states. the cost
of operation and maintenance Is made
a charge against the general property
tax. Now when we come TO examine
the published reports Of the District
Water Department we find that. after
paving all charges for operating ana
maintain the entire water supply
system, including the Washington
Aqueduct. there is an annuai surplus
of not less than quarter OF million
dollars This was true in 1924 and
1925. and will he equally true in 1926
and 1897. as the estimated revenues
clearly indicate. The following figures
are taken from pages 81 and SO of the
1924 report, and from pages % and %
of the 1925 report:
1924 receipts from water rents 81 .O35. s5s 81
Expended for main
tenance and oper-
EXPENDED H II Tor wash
ington Aoueduct. l9s.2Iooo
ro,., 1Is3IO.35
Net profit on operations. S3l' .54sH+
lao, recaipts from water rents 81 .0?3.6o rs
Expended for main
tenance and oper- r-,,o,e,
alton by d. c.. .S6S2.4O3Sl
txnen"e" nset"m A"nedHr1. ."r 1ae..1O.oo
"'- Wv --- .Ia.1I3.Sl
Net profit on operations ... S3o4 SOL :
With this showing. why put the bur
den of large increase in water rates
on the shoulders Of the District mouse
holder? The answer is that this proht
is not sufficient to build new mains AS
fast as is desired. Under existing and
na at rates the water consumers have
paid a huge sum into the construction
fund, i'm addition to paying all operat-
ing charges. as the following state
ment shows:
Total receipts from water q,
rents .S"0.S34.64s 81
tenance and operation. 1885 .6342
Total net profit on operations. S1O,549. .O15. .6s
This $1O,549,0i5.6s profit on opera
tions has been, in fact at least. trans
ferred from income account to capital
account, and expended during the past
wears in paying the cost of new mains
laid throughout the District.
The official figures here quoted
| should demonstrate beyond all doubt
that the present water rates are not
1,ff n a
operating and maintaining the water
system. but furnish a large annual
sum as new capital to go into pla mt
! Investment.
! Admitting that additional capital Is
| needed for further large plant invest
ment in water mains for the outlying
areas of the District. from what source
should it he obtained?
| Ordinarily and properly new capital
I for plant enlargement in the water
| supply systems throughout the country
Is secured through bond issues. This
of course, is not permitted to the Dis
trict, so the proper source here for
! new capital is the general property
tax, always remembering that these
/ improvements bear direct relation to
property values and their enhances
ment But no process of sound financ
II Ing can justify expanding water rates
to form a new reservoir of capital for
plant enlargement. Particularly when
\ this is proposed to be done by law
which takes away authority to MAKE
any downward adjustment when the
! deman for new capital has been sat
| isfied.
On the. other hand. the proposal e
| charge the cost of operating and
maintaining theHsafer supply system
' in other words the cost Of delivering