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7. Wage cost per million gallons : 1937

$7. 72 1947

$9.52 Percent increase.

24 8. Percent of wages of total annual cost: 1937

60 1947

57 Percent decrease.

5 9. Total number of employees : 1937

170 1947

209 Percent increase_

23 10. Number of employees per billion gallons produced : 1937

4. 64 1947

3. 65 Percent decrease_

21 11. Total annual cost of operation : 1937

$470,000 1947

$955, 725 Percent increase_

103 12. Production cost per million gallons: 1937

$12.83 1947

$16.70 Percent increase_

30 In connection with the variable elements referred to in the foregoing, it is deemed proper to comment upon a few components of cost and production which otherwise would be obscured.

During the war years beginning with 1941 when the population of the District of Columbia soared to unprecedented heights, the water supply system successfully met all demands made upon it. This however, was not accomplished without some increase in operating costs, but limited capital expenditures only were involved. In order that the McMillan filter plant could turn out increased amounts of water to meet the needs of the wartime popuation, not only more water had to be pumped to the plant but more intensive cleaning operations on the sand beds were necessary. This required more mechanical equipment, more labor, additional chemical teratment, and more power. As a consequence, with only minor improvement expenditures, the plant capacity was increased 25,000,000 gallons per day through rather moderate increased operating costs.

In the last few years, a greatly improved quality of water has been produced with a definite reduction in taste and odor troubles through the application of modern treatment practices. This required not only the so-called superchlorination to burn out deleterious substances, but the application thereafter of sulfur dioxide to maintain standard chlorine residuals in the distribution system. The chemicals have added to operation costs but have aided in producing a safer and superior product.

Another factor increasing costs is that of a decreasing amount of Governmentgenerated power. All surplus water over the city demand is passed to the Dalecarlia hydroelectric station and all power thus generated reduces the amount that must be purchased annually. As the consumption increases with the growth in population, less and less surplus water is available to generate Government power. Where $50,000 to $65,000 was thus saved in past years, the savings after the fiscal year 1947 is estimated at only $25,000 In subsequent years this saving will substantially disappear as only intermittent operation during the winter months, when consumption is low, will be possible.

In the field of wages the war situation and its aftermath have created pronounced changes all in an upward direction. The 48-hour week was eliminated, requiring more employees for Saturday and Sunday operation of this day-in and day-out utility. A 10-percent night differential involving parts of two shifts of operators was imposed and double pay on holidays were all authorized by the Congress.

The cost of living index of the Department of Labor for wage earners and lowsalaried workers averaged 102.2 in 1937 and in January 1947 the index was 153, or an increase of 52 percent during this 11-year period. The Engineering

News-Record construction cost index (base 1913=100) by which the change in materials and labor is gaged at any particular time, was 225 in 1937 and in March 1947 was 391, an increase of 74 percent.

All supplies, materials, and equipment used for operating and maintenance purposes or requiring replacement by reason of ordinary wear and tear have, in many cases, practically doubled in cost in recent years. Parts and replacement items unobtainable during the war period, required excessive and uneconomical repair expenses to continue them in service.

In connection with any examination of water system costs due consideration should be given to the distinction between operating costs and capital outlay or improvements when reviewing supply division costs. Operating costs in general are a function of the water demand coupled with material and labor costs, while capital improvements are a function of plant capacity to meet immediate and future requirements of the water system consumers. The need and costs of the capital improvements which must be undertaken to keep pace with the increasing demand for water by reason of population growth is fully presented in House document 480, Seventy-ninth Congress, second session, entitled “Adequate Future Water Supply for the District of Columbia and Metropolitan Area,” which was prepared pursuant to a directive from the Congress.

In summary, several pertinent facts stand out with respect to the increases in cost of operation over those obtaining in previous years. Notwithstanding the many special conditions that have been noted, it is apparent that with an increase in population of 51 to 54 percent in the 11-year period, and an increase of 57 percent in the quantity of water supplied, the increase in the cost of producing a million gallons of finished water has only increased by 30 percent. At the same time with an average increase of 57 percent in the wage per employee, it has been possible to reduce the number of employees required to produce a billion gallons of water by 21 percent

It is considered that the above-noted statistics and other figures indicate an efficiently operated water supply division, producing an improved quality of water, at a unit cost below the increased costs obtaining in comparable water systems and those generally obtaining in commercial and industrial establishments.

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Represents third quarter, fiscal year 1947, substituted for fiscal year 1946. This quarter was chosen as it represents

only a skeleton force of the pay roll necessary in the initial stage of the reorganization of the District of Columbia National Guard. This does not include personnel to operate the National Guard Armory that will be necessary subsequent to the vacating by the FBI in the near future.

Beginning with the fiscal year 1942 a reduction in force was necessary due to the ordering of the District of Columbia National Guard in Federal service in 1911 and subsequent transfer of other personnel.

In 1913, 1944, and 1945 a skeleton force was necessary to maintain the activities of this headquarters.

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1938: Increase of $10,470 is for maintenance of new areas and electric lighting service in unlighted areas.

1939: Increase of $6,400 is for maintenance of new area.

1940: Increase of $22,513 is for one additional mechanic, and installation of utilities. Eight additional employees were authorized for reimbursable work, not requiring additional funds.

1941 : Decrease of $22,351 resulted from nonrecurring item for utility installation in previous year.

1942: Increase of $38,855 covers maintenance of new developed areas, withingrade promotions, and additional park police. This increase provided for four new maintenance employees and six additional park police.

1943: Increase of $58,438 provides for maintenance of new area, and legislative salary increases. A decrease of 23 employees is accounted for by the transfer of Recreation Coordinator to Recreation Department, District of Columbia, and elimination of 22 maintenance positions to meet the cost of overtime.

1944: Increase of $52,525 covers legislative salary and wage increases and equipment for police cruisers.

1915: Increase of $24,440 provides for increase of compensation of the park police force, and an additional amount for overtime.

1916: Decrease of $34,980 resulted from the elimination of 19 positions (8 park police and 11 operating positions).

Appropriations for National Capital Parks reflect a net increase of $156,310 for the 10-year period 1937 through 1946, or approximately 17.2 percent. During this period, the National Capital Parks acreage has increased by 60 reservations, or 1,033.79 acres in the District of Columbia.

NATIONAL CAPITAL PARK AND PLANNING COMMISSION, APPROPRIATIONS FOR

PERSONAL SERVICES FROM FISCAL YEAR 1937 THROUGH 1947

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$34. 850
37, 500 Vacancy of city planner filled and

made full-time position.
37, 500
38, 460 Administrative promotions (peri

odic pay increases). 38. 460 39, 740 Do. 42, 023 2 positions of draftsman added to

staff diiring part of fiscal year Increase needed in per diem to undertake preliminary and spe

cialized studies, 43, 380 Increase in annual fund due to

periodic pay increases and statutory increases; also, due to fact that position of Director of Planning was brought within sepe of civil-service rules and Classif. cation Act and transferred from per diem to annual basis-hence decrease in per diem fund and

increase in annual. 44, 720

Increase in annual rate due to

periodic pay increases and
statutory increases. Increase in
per diem due to increased need
for services of per diem experts to
undertake preliminary studies in
connection with planning mat.
ters resulting from war impact

on National Capital.
51,804
Periodic

pay

increases and statutory increases in pay. 61, 731

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1939: Increase for salaries and miscellaneous repair items.

1940: Increase for one additional position, Ramspeck promotions, and increased costs of fuel, food for animals, repair items, etc.; and one new truck.

1941: Increase for Ramspeck promotions and for minor supply items. 1943 : Includes salary deficiency appropriation of $7,690; one new position, $1,320; $5,500 for new incinerator (this a nonrecurring item—incinerator not built and money turned back); $3,000 for increased food costs; $10,000 for repairs to buildings; $1,600 for new transportation equipment; balance for minor supply items.

1944: Includes salary deficiency appropriation of $7,000 ; balance of increase required for new positions and for salary increases occasioned by legislation changes due to Public Law 694.

1945: Includes increase of $43,638 for overtime pay; $4,420 for three new positions ; $2,763 for Ramspeck promotions; $5,190 for increase in food costs; $2,400 for additional educational equipment; the balance to meet increased costs of fuel, building repair, and miscellaneous items.

1946: Includes $65,670 deficiency appropriation for increases occasionel by legislative changes in salaries; $12,000 for a new incinerator ; $4,500 for road repairs ; $3,600 for transportation equipment; small increase to meet added cost of sundry items.

Senator Cain: We will now hear from Mr. Ford E. Young, president of the Fussell-Young Ice Cream Co.

STATEMENT OF FORD E. YOUNG, PRESIDENT, FUSSELL-YOUNG ICE

CREAM CO., WASHINGTON, D. C., APPEARING ON BEHALF OF THE ICE CREAM SECTION, MERCHANTS AND MANUFACTURERS ASSOCIATION

Mr. Young. My name is Ford E. Young. I am president of the Fussell-Young Ice Cream Co., 1306 Wisconsin Avenue NW., appearing on behalf of the ice cream section of the Merchants and Manufacturers Association, which is composed of Southern Dairies, Melvin Dairies, and the Breyer, Good Humor, Colonial, Washington Maid, Carry, and Fussell-Young Ice Cream Cos. I am appearing in.connection with S. 813 and H. R. 2290. I am appearing neither for nor against a sales tax for the District of Columbia. Rather I am concerned about two provisions in the proposed tax law.

First, page 5, lines 1 and 2, under exemptions appear the words, “milk and milk products, other than candy and confectionery." I believe that everyone would consider ice cream as a milk product. rather than a confectionery. The ice cream which is sold in the District of Columbia consists of at least 80 percent milk or milk products.

I would like to submit the basic food chart put out by the United States Department of Agriculture with the following advice:

You can get all the right kinds of food needed for health by using this simple guide the basic 7. Be sure to include in your meals each day at least the minimum number of servings from each group shown on the chart.

1938: Increase of $10,470 is for maintenance of new areas and electric lighting service in unlighted areas.

1939: Increase of $6,400 is for maintenance of new area.

1940: Increase of $22,513 is for one additional mechanic, and installation of utilities. Eight additional employees were authorized for reimbursable work, not requiring additional funds.

1941: Decrease of $22,351 resulted from nonrecurring item for utility installation in previous year.

1942: Increase of $38,855 covers maintenance of new developed areas, withingrade promotions, and additional park police. This increase provided for four new maintenance employees and six additional park police.

1943: Increase of $58,438 provides for maintenance of new area, and legislative salary increases. A decrease of 23 employees is accounted for by the transfer of Recreation Coordinator to Recreation Department, District of Columbia, and elimination of 22 maintenance positions to meet the cost of overtime.

1944: Increase of $52,525 covers legislative salary and wage increases and equipment for police cruisers.

1915: Increase of $24,440 provides for increase of compensation of the park police force, and an additional amount for overtime.

1946: Decrease of $34,980 resulted from the elimination of 19 positions (8 park police and 11 operating positions).

Appropriations for National Capital Parks reflect a net increase of $156,310 for the 10-year period 1937 through 1946, or approximately 17.2 percent. During this period, the National Capital Parks acreage has increased by 60 reservations, or 1,033.79 acres in the District of Columbia.

NATIONAL CAPITAL PARK AND PLANNING COMMISSION, APPROPRIATIONS FOR

PERSONAL SERVICES FROM FISCAL YEAR 1937 THROUGH 1947

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$34, 850
37,500 Vacancy of city planner filled and

made full-time position.
37, 500
38, 460 Administrative promotions (peri

odic pay increases). 38. 460 39. 740 Do. 42, 023 2 positions of draftsman added to

staff during part of fiscal year Increase needed in per diem to undertake preliminary and spe

cialized studies. 43, 380 Increase in annual fund due to

periodic pay increases and statutory increases; also, due to fact that position of Director of Planning was brought within scope of civil-service rules and Classification Act and transferred from per diem to annual basis-hence decrease in per diem fund and

increase in annual. 44, 720

Increase in annual rate due to

periodic рау increases and
statutory increases. Increase in
per diem due to increased need
for services of per diem experts to
undertake preliminary studies in
connection with planning mat-
ters resulting from war impact

on National Capital.
51, 804
Periodic

pay increases and
statutory increases in pay.
61, 731

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