Evening star., 1955-09-18
Consumers Pay and Pay
For AnnondoIe Water

means the pipe lines. easements
and rights Of way originally
paid for by customers who do
mated them to the company in
order to get on its rolls as pay
ling customers.
| AS the Annandale firm ex-
lpanded its lines and grew into q
major utility over the years, il
applied to the State Corporation
Commission from time to time
flor higher rates.
The commission, in determin-
ing a fair return on invest
ments" does not take into con-
sideration how the assets were
Observation-Disclosures by actual in
Ivestments or by donations.
Thus. customers were charged
higher rates based partly on the
pipes and rights-of-way which
they had paid for originally, in
many cases.
A second phase Of the Hirst
bill last year had as its objective
the limitation of a company,s
income to a fair rate Of return
on actual investments. &
Now that Fairfax has agreed
to take over the Annandale firSa
by the end Of this month, Gus
toners viii pay q third time on
their contributed capital
$950.0O0 Compromise
Mr.. McWhorter asked for 81
million and the county offered
5000, 900. This was compromised
at the $95o.000 figure.
But in order to liquidate the
debt. water bills will have to be
raised from the present average
Of $50 a year to about $64.50. the
county has indicated.
The supervisors would have
preferred to wait until November
| 8 when voters will decide wheth-
er to authorize a $34 million
revenue bond issue for a county
wide integrated water system,
But 90-day option to purchase
the company expired Tuesday
and Mr.. McWhorter said his
directors could not extend the
deadline.
The supervisors had reason
to believe that unless they &C.
Rquired the company Immediately
another utility firm would pur-
chase 1t. thus making the ulti-
mate price to the county even
higher.
Runy0n Dissented
So they authorized the sale
with only Supervisor c. B. Run
yon dissenting, They hope that
the bond issue will pass this fall
II voters turn down the plan
the supervisors propose to set
up the territory served by An
nandale as a separate sanitary
district. In that case voters OF
the district would be called upon
to vote on a much smaller bond
issue to pay for the Annandale
company.
In the event both propositions
are turned down. the county will
be left holding the bag" so to
speak.
They knew that If the county,
wide system is to be launched.
Annandale had to be acquired.
along with several other COM
panies. 1t was just a case Of being
pressed by Tuesdays deadline.
Due In December
Under the agreement to pur-
chase the company's stock-and
hence all Of its liabilities-the
county will make a $3.50, 900
down payment out Of the general
fund. The balance Of 100000 Is
due by December is.
II the bond referendum is ap-
proved, the general fund will
be repaid the $3.50, 900 and the
balance also will be paid from
the proceeds of that issue. If,
on the other hand. the bonds are
turned down. then the general
fund-which is budgeted for the
county's normal operations
would be drawn on to pay the
entire $950.000.
1t is this latter possibility that
has drawn the. most criticism
Mr.. Massey conceded that the
current budget could not stand
the entire cost and that the debt
would have to be passed on to
budgets in succeeding years.
In any case. the loans -
whether for q countrywide sys-
tenn, an Annandale sanitary dis
trict or from the general fund
would be repaid from water
rates only. and not by increased
taxes. ofiicisls have promised.