Evening star., 1953-08-13
Auditor Backs
Maryland Rise
In Sanitary Rate
Bookkeeping 'FouIts'
Seen of No Effect:
Civic Unit to Protest
BY Riehord RODGERS

BY Riehord Rodgers
A Maryland Public Service
Commission auditor has reported
the Washington Suburban Sani-
tary Commissions bookkeeping
was off in several respects but
not enough to make a change in
its new increased rates.
The report came from e. Ed
ward Mclean, chief auditor Of
the PSC. The Sanitary Commits
sion said it would have no COM
ment until the audit is adopted
officially by the PSC.
Civic Group to Protest.
The Allied Civic Group, Inc,
OF Silver Spring Immediately
announced its lawyers would
protest the report. The PSC re-
Gently heard the groups COM
plants against the rate increases
promulgated by the Sanitary
Commission.
In supporting the rate in
creaseS, Mr.. Mclean wrote that
his scrutiny of the Sanitary
Commissions records showed the
bookkeeping was off base in sew
eral respects. But his recon-
mendations wouldn't change the
new prices to any great degree,
he added.
One complaint the Allied Civic
Group submitted dealt with the
Sanitary Commissions new, So
called pay as you go" policy.
The new plan eliminates some
payments formerly made from
money obtained by bond issues
and charged to construction.
Calls Old Plan Wrong.
The PSC auditor seems to
agree with the Civic Group. At
the same time he agrees with
the utility's argument that the
old plan was wrong.
MY examination of the pro-
cedures and methods used in all
locating 1852 indirect and over
head COSTS" he ruled, has de-
termined that too little is now
being charged construction,
whereas in the past, too much
has been charged"
1t should be noted here that
Mr.: McLean's opinions, and those
of the PSC itself, cannot force
the Sanitary Board to change it's
policies. It is not subject to the
PSC.
Mr.. Mclean said the utility is
going against the statutes by
forcing customers to pay off in
40 years what should take 70
years to pay.
He said the boards recent
bond issues require the taxpayers
to pay the whole freight now for
service that should be paid for
by future customers as we'll.
Persons who start buying the
service 40 years from now will
be free riders. their costs already
being paid by then, his opinion
indicated.
Sets Sum at 100000.
AS for the items he thinks are
wrongfully charged to current
bills instead of to future pay
ments, the total amounts to less
than 100000.
Other utilities charge off such
things as certain taxes, salaries,
advertising and equipment de-
probation to the construction
fund, he said, whereas the Sani-
tary Commissions new policy
pays for them as they come due.
Thus future beneficiaries of
these sums get them free, at the
expense of present taxpayers, he
wrote.
But even if the Sanitary Com
mission conformed to his plan.
he pointed out, water charges
would be reduced less than / cent
per 1000 gallons, and sewer
charges would not be lowered
at all.
See Backing for Stand.
The civic group claimed Mr..
McLean'S audit supported it's
main theme about the charges
being too high. Willard Morris.
the civic leaders head, noted
that Mr.. Mclean didn't say any,
thing about the trash collection
costs. The civic group is also
fighting the rate raises in that
department of the sanitary out
fits services.
The Sanitary Commission is
empowered to decide for itself
what its charges should be: it
need not seek approval of the
PSC, nor any other group.
Any policy change is up to the
Sanitary Commission itself, the
General A"--"'~ce'.. or the Gov.
ernor.
The Legislature could rewrite
the laws governing the sanitary
board to make it obey PSC rul-
ings like other utilities. And
the Governor could change things
because he appoints the three
man commission.