Evening star., 1953-05-10
Board
Hopes 10 Be0ut
Of Red by 1857
Statement Issued
On Its Finances
In Reply to Critics
BY RichoFd Rodgers

By Riehord Rodgers
Rate raises were long overdue
and although they're in effect at
last, operations are still In the
red, the. Washington Suburban
Sanitary Commission says.
Finances should be all the way
back in the black in 1857, the
utility said.
For years the water-selling.
Sewage-disposing, trash-collect-
ing outfit has been under almost
steady fire. Criticism Swelled to
a steady roar in April when
higher charges were announced.
Answers to Complaints.
In a statement released today.
the commission answers some Of
the complaints.
The present commissioners are
raymond w. Bellamy, L. S.
(Ted) Ray and j. Norman Ager.
Their report pictures them in
perlting a fiscal tangle when
they took Office in June, 1851.
The last knots are just being
united now, they say.
Their predecessors borrowed
money to pay bills that should
have been met by rate boosts,
the report says.
The practice postponed rate
increases but caused a spiraling
increase in the commission
bonded Indebtedness, with null
tiplying interest charges" they
say.
Various Rates Listed.
The increases announced in
April raise:
/. Water rates IA cents per
1000 gallons for water customers
who also use the commissions
sewers.
2. Montgomery County trash
collection rates by 60 cents.
3. Incinerator charges by 100
per cent.
4. Front-foot benefit charges
for persons who got new sewer
and water lines last year.
The water rate increase was
described as a charge for using
the sewers.
Water users who are not con-
nected to the sanitary sewer sys-
tenn no longer will pay for a
share OF the sanitary sewer Serv-
ice," the report points out.
Sewer rates are based on meter
readings. Thus all water entering
a home is considered to leave it
as sewage. Critics object to that
because water used on lawns. or
in car-washing, doesn't become
sewage.
The commissioners admit the
arguments are valid. but main
tain that the meter system is
"the most healthful solution. l."
And since everybody's in the
same fix, the system isn't dis-
criminatory, they claim.
To End Deficit Spending.
Money from the rate changes
will end deficit financing, the
report says. Deficit financing
sets up larger bond issues than
are actually needed for construc-
ton purposes.
Chairman Bellamy and Com
missioners Ager. and Ray said
they discovered, on taking Office.
that the provisions of law re-
quiring a detailed audit and
financial statement had not been
met, Financial reports for 1949
and 1850 were incomplete"
They ordered those audits,
they said, and have received
them, along with one for 1851.
The 1852 operations report was
completed only last week, they
added.
The commissioners list these
project as ones they've launched
or completed:
l. Doubling the Patuxent fl
tration plants capacity and
building a filter pump station
there.
2. Putting IL miles of 42-inch
water supply line from the Pa
tuXent plant to Wheaton.
8. Joining Wheaton to Be-
thesda with a 30-inch water
supply line.
4. Installing a 42-inch relief
sewer between Brentwood and
Bladensburg. !
S Damming the Patuxent
River at Rocky Gorge, near
Laurel. to increase reservoir gal
lonage.
6 Adding facilities at the
Lyttonsville storeyard.
7 Filling land near Laurel
with Montgomery County refuse.
8 Laying 203 miles of water
mains and sewers and 27,234
water and sewer connections to
houses.
8. Helping promote Federal
approval of the Anacostia River
basin food control.
10. Building an addition on the
utility headquarters in Hyatts-
vile. Md.
Experts Advice.
On reorganization, the COM
missioners said their New York
experts advised hiring an execu-
tive to supervise all money mat
ters. and shaking up the ac-
counting system. The board is
studying the first suggestion and
hopes to have the second in
effect next month.
The report lists four ways to
cut bond costs:
/. Bond-obtained money which
isn't needed Immediately for
construction is invested in Gov
ernment short-term securities.
Since 1851 such investments
have yielded $115,000 in interest
benefits"
2. Short term borrowing in
anticipation of bond issues will
be used to cut the gap between
collecting front foot benefit