Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-02-26
Fairfax Citizens Ask
House Unit 10 Act on
Wafer Regulation Bill
BY s,off Correspondent Of The s.or

WsVu NV SsISsbsVSs I'LL
BY stoH Correspondent Of The stor
RICHMOND, Feb. 26.-A Cen
eral Assembly committee heard
a Fairfax County delegation yes
terday urge action on the Hirst
bill to prohibit privately owned
water companies from making
certain charges as a condition
to their serving the public.
Delegate Omer L. Hirst, of
Fairfax. told the General Laws
Committee that the companies
are in the position of eating
their cake and having it too"
Further consideration of the
bill was deferred until Tuesday
so that opponents can be heard.
Mr.. Hirst said former State Sem
ator Andrew w. Clarke, attorney
for one of the companies, desired
to speak against. the bill.
The legislation hits at the
practice of the companies requir-
ing customers to pay the costs
of water lines and then listing
those lines among assets on
which a fair rate of return is al
lowed by the State Corporation
Commission in setting rates.
+ Cites Star Stories.
AS an example of the matter,
Mr.. Hirst called attention to a
series of stories in The Wash
ington Star by William j. Elvin.
He held up for the committee
a page from last Sundays Star
with story bearing the head
line. Water Firm Worth $780,
900, Cost SIS Eight Years Ago"
Most members of the COM
mittee displayed intense interest
and apparently had no previous
knowledge of Mr.. Hirsts story
OF how a number of water COM
panieS in his area started on a
shoestring and have blossomed
into wealthy corporations in a
few short years.
Mr.. Hirst said one firm began
serving IL customers a few years
ago and now serves over 1000.
Attacks Certain Practices.
my bill says it is contrary to
the public policy for these COM
panies to continue certain prac-
tices," Mr.. Hirst said.
For instance. own a lot in
Annandale. In order to get
water. the company charges me a
connection fee that includes one
half Of the cost of the water pipe
running in front of my property. |
IF the fellow across the road |
connects. he pays the other half"
In other instances. the legis- |
lator went on. real estate devel-
opers include the cost of water !
mains their charges FOR lots. |
Then. in order to obtain water
service they must donate the
entire system of the subdivision
to the water company. /
The result is, Mr.. Hirst told
the committee. that the Gus |
toner pays for the entire cost !
of the water lines but the COM /
panies are allowed by the State !
to figure these lines as invested |
capital on which a fair rate of |
return is allowed on monthly |
fees. Furthermore, the rates are
further raised when the COM
panies figure depreciation on !
those parts of the system which !
they never had to pay for.
Cites Tax Matter.
Louis Sissman. who said he
represented five Fairfax civic |
associations, declared another |
factor contributes to higher
charges. The Internal Revenue
Service regards the contributed
assets as profits and imposes
Federal tax accordingly. The
State. on the other hand, recog-
nizes the Federal taxes paid as
one factor in allowing the COM
panies a fair rate Of return.
Others who appeared to sup
port the bill included John c. |
Shaver. president of the Fairfax |
Civic Federation; James |
Whylock. president. Pimmit
Hills Citizens Association; Har-
old Ward. former president of
the civic federation; Edward |
Lane and Matthew Monahan. !
both representing the Pimmit
Hills and the Bel Air Citizens
Associations.
Meanwhile. Senator John A. |
K. Donovan of Fairfax was
planning to amend Falls
Church charter bill to remove
a restriction on its powers of
Falls Church
now extends water service to
several Fairfax County COM
munities under provisions of a
general law which gives all
municipalities such authority. |