Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-04
EFFICIENCY BUREAU
ASKS TRANSFER OF
WATER PLANT UNIT
Would Place Supply Branch
Under Control of
District.
PROPERTY APPRAISAL
is URGED IN SURVEY
Means of Determining Depreciation
Sought-Report Raises Issue
of Relative Investments.

water system from the Army Engineer
once to the District Water Depart
ment, which now controls only the dis
tribution service, is the most far-reach-
ing of a number of recommendations
made by the Bureau of Efficiency, fol-
lowing a survey of the water facilities
of the National Capital.
The bureau also urges an appraisal
of the properties of the water SyStem
to establish an accurate valuation FOL
determining a rate Of depreciation In
calculating the cost Of water.
The Efficiency Bureau studied the
water system at the request OF Senator
Hiram Bingham, Republican of Con-
necticut, chairman OF the Subcommittee
in Charge OF District Appropriations in
the Senate. The report was completed
some time ago, but its conclusions have
just become known.
Question Arises.
The report raises, a question bearing
on the relative investments of the
United States and District Governments
in the water system, by taking issue
with the Army Engineer once in cred
iting the United States with a part
of amounts spent on development OF
the water plant since the lump sum
method of Federal contribution to Dis
CrlcC expenses began III 1870. IL HE pu-
reau takes the view that the annual
lump sum contribution since 1925 was
'for all expenses OF the District and no
portion was allocated to the water sup
ply or other projects" .
In discussing the financial statement
prepared by the Engineer once to show
the amounts spent for all time by the
Federal and District Governments on
the water system, the efficiency report
states:
In order to determine the respective
contributions Of the United States and
the District OF Columbia, except where
in specific appropriations were author
lied, the Corps of Engineers, U. S. A,
apportioned the annual expenditures in
accordance with the ratio fixed by Con-
greSS in the appropriations llade for
the water system. During the period OF
development of the water system this
ratio has varied, but such changes were
considered and given effect in making
the compilation"
Cite U. S. Construction Cost.
The bureau then recites the facts that
prior to 1880 the Federal Government
paid the whole cost of construction
that from 1882 to 1920 the major ex-
tensions to the water plant were
charged so per cent to the Federal Gov
and from 1921 to 1924, the Federal
Government contributed 40 per cent.
The bureau report then added:
For the fiscal years 1925 to 1880 the
entire cost was charged to the District
of Columbia, but each year the Federal
Government made a lump sum ccntri-
button of $4,000, 600 in lieu Of the pro-
portionate contribution formerly made.
This contribution was for all expenses
of the District and no portion was all
located to the water supply or other
projects
Referring again to this question fur
Their on in its report, the bureau states:
The statement by the Corps OF
Engineers shows that all expendi-
lures which have been made by the
United States have been capitalized to
fix the value CT the property investment
of the Federal Government. Under this
method during the years the Federal
Government contributed to the support
of the District of Columbia on the $3.50
and 1880 basis, so or 40 per cent Of
the expenditures by the Corps of Engi-
neers and the water department fer
construction and maintenance has been
added to the investment of the United
States. In like manner, each year since
the Federal Government has been con-
tributing a lump sum. percentage
representing the ratio of the lump sum
contribution to the total expenditures
for the District Of Columbia has been
added to the investment of the Federal
Government.
Expense Basis Changed.
1.-THE act of Congress approved June
7. 1924 changed the basis of the
Federal contribution to the District Of
Columbia from 40 per cent to the
amounts expended to a lump sum. 1t
provides that any revenue then required
by law 10 be credited to the District of
Columbia and the United States in the
same proportion, each contributed to
the activity or source from whence such
revenue was derived, shall be credited
wholly to the District, excepting revenue
arising as the result Of the expenditures
of appropriations made fer the fiscal
year 1924 and prior to fiscal years. The
action of the Corps Of Engineers treat
ing part of investments made from ap-
preparations since 1924 is incorrect, be-
cause the contributions on the lump
sum basis are clearly outright contribu-
tons to the District Of Columbia"
In letter Of transmittal accompany
ing the Efficiency Bureau report 1t Is
sugge Sted that 'the investments of the
Federal Government. District Govern
the capital assets of the water system
since 1924 be calculated on different
basis"
The question of allocating expendi-
lures for the enlargement and improve
ment of the water system since the
lump sum practice began in 1928 be-
comes important when it is remembered
that In the fiscal years 1925 to 1927,
inclusive, there was appropriated SIS, $780,
900 toward the building Of the new con-
duit. new filtration plant and related
facilities. This enlargement project was
started during the 6o-4o regime and
was estimated to cost something over
$s,500,0o so that the greater part OF
1t was appropriated for under the lump
sum policy.
1880 Costs Compiled.
The financial statement of expendi-
lures for the water system up to 1880,
prepared by the Engineer Corps and
made a part of the Efficiency Bureau
report, Shows the total amount spent
for construction Of the system up to
that year, $35,012,6l1, allocated as fol-
lows:
United States S10.964 ,s01; District
of Columbia. S9,072, 1781l, and District
Water Department. $l4,975, 63l89. The
local community, therefore, through its
two sources of payment, has spent $24,-
o47,510 on construction. The water
department figure includes what it has
spent on developing the distribution sys-
tenn, which 1t controls, as we'll as what
the department has contributed to the
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