Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-03-03
Boothe Sndgs
Bill on Fairfax
Water Firms
Goes Too Far, He
Says, in Excluding
Gifts From Assets
BY q stor ssoff Correspondent

BY Star Staff Correspondent
RICHMOND, Mar. 3.-Legis-
1ation designed to restrict Fair
fax County water companies
from using contributed capital"
as a basis for charging fees, has
run into q Snag as a result
of objections raised by Delegate
Armistead Boothe Of Alexandria.
Mr.. Boothe. a member of the
General Laws Committee which
considered the bill yesterday,
said he wanted the other men,
berS to understand at the outset
that his law firm represents the
Virginia Water Co., which serves
Alexandria and a number of
Fairfax County communities.
Mr.. Boothe said he was in
sympathy with the detectives of
the legislation, but thought it
would go too far in removing
the jurisdiction of the State
Corporation over water COM
panieS.
The bill, sponsored by Dele
gate Omer HirSt, would prohibit
privately owned water companies
from requiring customers, as a
condition of serving the public,
to pay for extensions Of water
mains.
Sees Legal Larceny"
Mr.. Hirst commended that it is
illegal larceny" for the companies
to require customers to pay for
water mains and then to be al
lowed to include the cost Of these
mains as capital investment, in
applying for rate increases be-
fore the sec.
His contention is that these
mains do not represent invest
ments by the companies and
therefore should not be allowed
by the commission in setting
rates to give fair return on in
veStment.
I'm Fairfax County," Mr.. Hirst
said, there are three companies
with So million in capital assets.
OF this $1.2 million is donated
capital"
He offered an amendment to
provide. that contributed capital
the assets paid for by consum-
erS-should not be included in
capital investments on which the
State Corporation Commission
allows a fair earning.
Mr.. Hirst read a letter from
former State Senator Andrew w.
Clarke of Fairfax. stating his OPP
position to the bill. Mr.. Clarke
said he did not know that the
bill was to be considered, al
though yesterdays meeting had
been publicized in the press.
Pressure on BoOthe.
Mr.. Boothe said Mr.. Clarke
had been putting the pressure
on me" to oppose the bill. but
that he had a great many tele-
grams from Fairfax County res
idents urging him to support the
measure. It was at that point
he brought out his law firms
interest in the Virginia Water
Co.
The bill has a very good pur-
pose," Mr.. Boothe said, "but it
goes too far"
He said the Virginia Water
Co. is not permitted to charge
the entire cost of water mains
to the customers, but it is al
lowed to make the charge for
the original installation and then
rebate the costs, on a pro-rata
basis, as other customers hook
on to the line.
Mr.. Boothe said the Hirst bill
would prohibit such practices.
He suggested that representa-
tives Of the State Corporation
Commission be called to make
their views known.
Later Mr.. Boothe called the
sec and Judge Ralph T. Cat
terall Of the commission ap-
peared and testified that he
thought the bill is too stringent.
Previous Protests.
Mr.. Hirst told the committee.
"the State Corporation Commits
sion is not unaware of the feel
ings Of the people of Fairfax
County. The people have been
before the commission on many
occasions with their complaints. u
A delegation of about 80 Fair
fax citizens attended the hear
ing to support the bill. In addi-
ton. Acting Chairman Frank
Moncure said he had received
% kilograms from Fairfax citi-
Gems.
The only opponent to the bill
was a man who refused to iden-
tify himself or give his address
to reporter later. THE only
name he would give was "R.
McDearman." In a brief state
ment, he said the Hirst bill was
'conf1Scatory."
A member of the committee,
who didn't hear the statement,
asked what the witness said. -
Mr.. Moncure said, ''conflsca-
tory. That's a good word"
The committee may meet
again today or tomorrow, to
decide the fate Of the bill.