Evening star., 1926-06-01

Desirous Of enlightening the voters
on all problems affecting the Airing
ton County water supply project and
the bond-issue plan for financing 1t,
officials of the water commission an
nounced today they will conduct a
n-and-answer" forum at the
meeting tonight Of the Arlington
County Civic Federation in the county
courthouse.
issued proposal bu two weeks off,
county officials are anxious to clarity
the minds of all citizens with regard
to the various points naturally aris-
ing with so important a public under
taking, 1t was explained by II. c. SAT-
fell, chairman of the Arlington Coun-
ty Water Supply Commission.
I'VE are prepared to answer any
and all inquiries in connection with
the plans for supplying the county
with water from the Federal pump
ing station at Dalecarlia," Mr.. Saffell
stated I'VE hope that all whose
understanding of certain phases of the
proposal is the least bit beclouded
will attend the meeting this eve
ming"
Bond Project Attacked.
Announcement Of the plans for
project followed publication recently
of an open letter to Asa E. Phillips,
consulting engineer Of the Water
Board, propounding a set Of ques-
tions designed to attack the soundness
Of the present bond issue financing
scheme.
Mr.. Phillips. who is confined to his
home in this city today with q cold,
told The Star that the questions
asked in the letter were for the most
part based on ''miSinformation ana
he proceeded to take them up. one by
one. in explanation. -,
In reply to a query as to what Will
be the security Offered purchasers
of the bonds to make them salable.'
the water engineer asserted that the
county itself will be the security.
THE county is going to underwr1te
tho entire ISSUE" he said. THE court,
granting the prayer for special vote
on the. bond plan, decreed that the
whole issue must not exceed $750,0OO.
This maximum was purposeiy nxed In
excess of the estimated cost or the
system to provide for contingencies.
We estimate, and have repeatedly
published the fact, that the cost Will
be apportioned as follows: washington
district, s2OO,0O0; Arlington district
$3.50 900. and Jefferson district, $780,
900. a total expense Of 100000. There
will be only sufficient bonds issued 10
meet the actual cost Of the system.
Vote to Be by Districts.
each of the three magisterial dis
tricts will vote separately on the prof.
ect, and rejection Of the plan by one
will have no effect on the others The
district or districts carrying the elec-
tion for the bonds will get the water.
In the event any of the districts fall
to join the project, the bond issue Will
be proportionately less.
"The county, in underwriting the
issue, will act in a capacity exactly
similar to a man who tndorseS the
note of another. If the whole water
system, by some inconceivable cata-
clysm, should be total 'fop.' the
county will have to stand the financial
crash. It will have as its own secu-
rity The mains and system itself, how
ever The security for the bonds Is
100 per cent sound.
Another question was how much
Of the annual water revenues will go
toward interest on the bonds and how
much toward the sinking fund. the
Implication being set forth that the
financing scheme proposed will not
take care Of the various expenses.
100000 Needed in "a Years.
eve estimate that the annual cost
for the metered allotment Of 10000
gallons to each consumer will be $27.
We have figured that a minimum Of
1900 consumers will be necessary to
retire a bond issue Of 100000 in "a
years. the time limit prescribed. The
annual revenue from 1900 consumers
will total $40,500.
Under the bond retirement plan
which I have recommended to the
county water board the issue will be
retired on an increasing scale Of
amounts, graduated according to Ave-
year intervals of retirement. Ten
thousand dollars worth Of the bonds
would be paid off during the first
years, 20,000 at the end of 10 years,
$4,000 in Is years, $4,000 in 20
years, $4,000 in 25 years and pos
sibly the whole of the remainder, or
$110. 900 in 30 years.
1.-THE interest, consequently, will be
reduced every five years as the ad-
ditional groups of bonds are retired.
The net interest and sinking fund for
the first five-year period will amount,
under this plan, to $751; ,625 annually,
taking into consideration interest re-
ceived from water main frontage as
sesments creditable against the bond
interest charges.
"Other annual expenses during the
first period will be. approximately,
$2,775 for operating expenses, 81 500
for maintenance costs, 81 900 for con.
%;ron0rios onN an estimated S3 En0 fOr