Evening star., 1941-09-28

designed.
The water budget includes Ian
guage authorizing the Commission
ers to let the Treasury sell what
bonds are needed to finance in
proVements, but the estimates Go
not contain any suggestion as to
how much, if any, would actually be
used. AS the department submitted
its financial program for 1943 it Will
result in a deficit of S806,000, even
with the proposed higher water rates
which have been condemned by
numerous civic leaders and organi-
cations. The rate increase proposed
is unofhcially computed at 1l5 per
cent to small consumers.
Reserve Could Be Used.
Several District officials said they
knew no reason why the reserve
could not be used in whole or in
part to pay for the Improvements
suggested and thus avoid a boost in
rates. In addition civic groups, In
cluding North Capitol and Midcity,
have suggested the Federal Govern
ment should bear its share Of the
expansion, due to national defense.
One District official warned, how
ever, that if the whole of the fund
was utilized there would be no
money left for Improvements to the
water supply system when they be-
come needed in a few yealS.
Hight lights Of the water eXpan-
sion plans are more than Sl,000.000
to improve the distribution system
in Anacostia. This would include
changes and additions to the Capitol
Hill trunk line. increase in water
storage facilities, two additional
pumping units and a 24-inch line
from Fort Stanton Park TO Alabama
avenue and Nichols avenue Sc.
As far as the s8O6,OOO deficit is
concerned. an official said it would
only be a paper deficit since many
of the projects would not be COM
pleted within the fiscal year and
could be paid for from 1914 water
revenue.
The story Of the s18OOOOO surplus
is this:
Water rates are fixed in the 1881
District appropriation bill. In 1884
the supply bill for that year author
lied a 10 per cent reduction. In
1885, 1886 and 1887. a double de-
crease was enacted, the rate being
cut 25 per cent and the meter
allowance being boosted from $500
to 10000 cubic feet.
Plan Described by Sultan.
At the hearings on the 1888 bud
get. however, the then Engineer
Commissioner Dan Sultan told Con-
gress of plans to make the Water
Department something of a public
utility in organization. with a re-
serve fund being built up year by
year to cover depreciation and big
improvements so these would not
have to come from the general fund.
In the period from 1923 to 1927 a
So 100000 Water Department eXpan-
sion had drawn heavily on the gen.
eral fund because the water revenues
were insufficient. and Col. Sultan
predicted that by 1945 about Sl0,-
100000 worth Of increase in supply
facilities would be needed.
Hence Congress struck from the
bill the language Of the past three
years reducing water bills and au-
thoriZed a study to be made TO set
up rates that would cover operating
costs of the department and still
permit a savings for the reserve fund
suggested. The rates then reverted
to the 1881 basic.
On June %. 1888, the Treasury
purchased at request of the Com
missioners Government bonds with
a par value of S73600 Because
these were bought above par and on
the open market with interest and
commission payments necessary. it
cost the District STAG, 900 of a S750,000
authorization.
On June IA, 1899, with an author
ization of S500,000 the Commits
sioners through the Treasury pur-
chased additional bonds with a par
value of S461 900 at above par rates.
which. with accrued interest and
commissions. cost the water fund
s499 900. The budget that year also
contained the first authorization
of the sale of the bonds by the
Treasury at request of the Commits
sioners when needed.
With the same authorizations. the
water fund added S476,OOO par value
Government bonds for S499.0 900. and
last April 80 was able to get 100000
par value bonds at par.