Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-02-07
Sanitary Unit
Fails 10 PacifY
New Rate Foes
Maryland Lawmakers
Won't Introduce Bill
In Present Form
By Gene Goodwin
Stor Sfoff correspondent :

ANNAPOLIS, Fe0. 6.-An 0p-
parent attempt by the Washing
ton Suburban Sanitary Commits
sion to appease critics of its in
creased water and sewer rates
has been given a cold reception
here by the Montgomery and
Prince Georges County State
Senators.
The appeasement is in the
form of a proposed bill to give
the Maryland Public Service
Commission authority to review
the "reasonableness" of Sanitary
Commission rate increases-if
the Sanitary Commission makes
a written request for such re-
view.
The present law states that
the PSC can make such a review
only on the written request Of an
affected taxpayer. That's what
the PSC did last summer when
Willard Morris. president of the
Allied Civic Group of Silver
Spring, requested a hearing on
the Sanitary agency's action In
adding a sewer usage charge Of
IA cents per 1000 gallons to the
water rate of q cents.
The bill was prepared by SAM
tary Commission Counsel Arthur
C. Keefer and sent to the two
Washington area State Senators.
The measure would not give the
PSC any authority to change any
new rates decreed by the SAM
tary Commission.
Senator John Raym ON d
Fletcher, Republican. of Prince
Georges. said yesterday that he
and Senator Anders r. Lof-
strand. Republican, Of Mont
gomery, have decided they cam
not introduce the bill in its pres
ent form.
Doesn't Go Far Enough"
"It doesn't go far enough"
Mr.. Fletcher said.>
He said he has invited Mr..
Keefer and the sanitary COM
missioners to come here Tues
day for a conference with the
entire Montgomery and Prince
Georges County delegation to
the Legislature, which began its
30-day session Wednesday.
Out of that conference may
come a bill outlining drastic
new rate-setting and rate-re-
viewing procedures for the SAM
tary Commission.
Senator Fletcher and his
Montgomery and Prince Georges
colleagues here are well aware
that the increased water bills
now being received by suburban
Maryland home owners could
mean votes against them at the
polls this election year. The
three sanitary commissioners
are Republican appointees of
Governor McKeldin. All but two
of the IA lawmakers from Prince
Georges and Montgomery are
Republicans.
The Allied Civic Group. after
it lost its battle to upset the
accent sewer usage charge and
the higher incinerator and ref
use collection rates effected by
the commission last year. said
that it would seek a new law
making the sanitary agency
answer to the PSC for new rates
in the same manner required of
private utilities.
Calls 1t Too Drastic.
Senator Fletcher said he feels
that would be too drastic. He
pointed out that the Sanitary
Commission is non-profit
municipal corporation. The
principal reason private utilities
and carriers must get PSC per-
mission for rate increases is to
keep their profits at a reasonable
level.
Such requirement might
hamper the commissions ability
to sell bonds at a reasonable
rate. he said. Bond buyers would
be more heSitant to lend the
commission money if every bond
issue had to be submitted to
public hearing and PSC review,
he reasoned.
He recalled that last year when
the Prince Georges County COM
miSsioners threatened to hold
up the signing of the sanitary
agency's bonds, bidders raised
their bids overnight. That ges-
ture cost suburban Maryland
taxpayers about $4,000 in extra
interest charges, commission
officials estimated. AS it turned
out, the county commissioners
did sign for the bonds. They had
to, it's mandatory under the law.
1t was made mandatory, Sen
ator Fletcher explained, because
bonds are the life blood of the
Sanitary Commission. Without
large bond issues. it would be i'm
possible to build the dams, res
ervoirS and sewage disposal
plants necessary for the commits
sion's operation.
The Prince Georges senator
said he's in favor, however, of a
mandatory public hearing on
proposed rate increases by the
commission. A provision requir-
ing such hearings might be writ
ten into the bill, he said. =
When the commission passed
on its increased rates last spring,
it did so without prior public
notice in a closed meeting. Water
and sewer users are just now be-
ginning to feel the full effect of
their increases in bills being sent
out this winter. The average
, home owners bill seems to have
increased about so per cent.