Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-04-01
virginiaWeiighs
Inquiry. Into
Wafer Firms
Stanley Moy Luunch
Study Thot Would
Lead to Lower Rutes
By Alex R. Preston
By Alex R. Preston
Stur Stuff cerraspendant ..

SsoS St1U SoEtoSPonoent
RICHMOND. April la legis-
lative commission study Of
privately owned water COM
panies that might lead to lower
rates may be initiated by Gov.
Stanley, it was disclosed today.
Delegate Homer Hirst Of Fair
fax, who tackled the water COM
pany problem several times dur
ing the recent session of the
General Assembly. asked Gov.
Stanley to launch the inquiry.
The Governor told Mr.. Hirst
he would consider the matter.
He also said he would be in
terested in getting an expression
from the various civic groups in
Fairfax County.
Mr.. Hirst was mere yesterday
for the final constructive"
session of the Legislature, which
went through the formality of
sitting while the presiding
officers of the House and Senate
signed 403 bills and resolutions
enacted late in the regular 60
day session, which ended on
March IA.
Session Officially Ended.
Both branches Of the Assembly
adjourned at 1:13 pm, thus
officially putting an end to the
1854 session.
Before calling on Gov. Stanley,
Mr.. Hirst conferred with 1t.
Gov. A. z. S. Stephens, who is
chairman of the Senate Rules
Committee.
A resolution by Mr.. HirSt di-
recting that a study be made
of water companies which are
allowed earnings on assets con-
tributed by customers, passed
the House but was killed in the
Senate Rules Committee.
Mr.. HirSt asked if it were pos
Sible for the committee to re-
port the measure and have the
Senate give final approval yes
terday. 1t. Gov. Stephens
previously had opposed any leg
islative action by the construc-
tive session as a dangerous
precedent which could lead to
q few legislators enacting laws
In the absence Of others.
At yesterdays bill-Signipg ses-
sion, there were only Is Senators
and 81 Delegates present out Of
q membership Of 40.
Mr.. Hirst said he pointed to
a series Of stories on Fairfax
County water companies. which
recently ran In the Washington
Star, when he conferred with
the Governor and Lieutenant
Governor.
He said he also presented fig
ureS offered at a meeting last
Friday night at Fairfax Court.
house by about 80 representa-
tives Of civic organizations. They
showed that three water COM
panies in the county have assets
totaling 50 million, of which $1.2
million was required to be con-
tributed by customers. Yet. he
said. the State allows the COM
panies to earn a return on Gin
vestment" for the assets for
which they never paid.
Star Story Is Cited.
He cited a story in The Star
in which one company was
worth SIS eight years ago and
is worth $4,000 today. He told
them Virginia did not allow con-
tributed capital as a rate base
prior to 1887, and that 81 other
States still prohibit the practice.
The United States Supreme
Court ruled that contributed
capital must be figured as in
come for tax purposes, he added.
Only a handful of Northern
Virginia legislators showed up
for the formality of the bill sign
ing. Mr.. Hirst's colleague. Dele
gate John webb, also of Fairfax,
was among those present.
The constitution requires that
all titles to bills be read at the
time they are signed by the pre-
siding officers. In the House, a
precedent was set when two
clerks simultaneously droned out
the titles to expedite proceed
ings. In the Senate, a clerk
merely read the number of the
bill and q brief synopsis of the
title.