New-York tribune., 1918-06-23
Stock and Bond Averages

can be provided only by the Federal
government, and the amounts required
are not enormous. The outstanding
issues of utility companies maturing in
the year 1913 requiring refunding
probably do not exceed s1a5,ooo, eco,
and in 1919 may not exceed $176,0oo,-
600. If the War Finance Corporation
cannot act, some other national agency
must be created to lend, not give, the
funds required--smail In amount in-
deed to assure continued and increased
mechanical efficiency in war That
Federal agency. duly empowered, which
declares it's intention to preserve Che
credit and solvency of the public utility
systems of the country husbands its
funds by that declaration; once the
investors of the country are authori-
tatively informed of the need Of tho
utilities IN war. and of the nations
readiness to support them, their funds
will become available as for any other
war need, and the drain on the national
Treasury will be small indeed in view
of the present national peril.
War the Cause
OF Utilities Plight
Except for the conditions resulting
from the war, anG which must gradu-
ally disappear as the financial and in
dustrial structure of the country re-
sumes its poise after the termination
of hostilities, the public utilities Of
the country are inherently sound. The
unification and expansion Of isolated
and competing systems, the improve
ment in the machinery Of generation
and distribution, the economies al
larger operations, have all tended h
normal times to decrease costs Of ep-
GRAFTON and to increase the use OF
public utility service Of all kinds. On
the other hand, that same increasing
use Of public service, the growth In
population, the multiplying applications
of power driven machinery. especially
electrical appliances, have demanded
larger and increasing capital for
permanent investment, which public
utilities have had difficulty in securing
because of the restricting influences of
public utility regulation. Neverthe-
less, the securities Of sound public
service companies have found increas-
ing favor with investors Of all classes
and the amounts held by great financial
institutions have been rapidly increas-
ing in recent years through recognition
Of their inherent safety.
Costs Of all material and labor enter
ing into industrial operations may. be
expected to be higher after the war
than in the complacent and easy-going
years Of the period of public utility
expansion and development, and rates
must be higher, not only to meet this
present emergency. but to assure thu
efficiency and constant expansion Of all
time and labor saving utilities in peace
as in war. Capital requirements Of
utility companies will increase as ma
chinnery progressively displaces hand
labor in modern industry, and that
capital can be devoted to public utility
expansion only if the current rates for
money are earned and paid.
The immediate emergency demand Of
the utility companies for capital for
meeting maturing obligations is duesfc
conditions which are obviously tenn
porary, although they must continue as
long as the war continues. As wAr
measure, utility rates must be raised
wherever required to reestablish their
credit, so that they may appeal sue
cessfully to the investment markets,
and in the meantime funds to meet
their maturing obligations must be pro-
vided, as a war measure. The nation
will not lose the money it Lends %
sound utilities to relieve them from
temporary embarrassment, but will be
paid in full with interest as soon as
the investment funds Of the country
are relieved FROM the temporary de-
mands of government war financing.
In the meantime the public utility
question is indeed an urgent one, and
it's prompt solution presses upon thusA
responsible for our war efficiency. 1t
is not q local question; It is neE :
question Of saving the Investments ~
scattered individuals; it is not merely
question Of safeguarding insurancs
companies and banks, whose funds are
invested in public utility securities;
it Is not merely question Of safe
guarding the general financial situation
or providing stability Of earnings and
integrity Of investments out Of which
war taxes and wae loans can be raised.
The public utility question Is clearly
9 question Of national war sincssnsx.
which requires immediate ernereenkv
remedies in both highes rates and cspS.
tai advances--eficiency which WIN kelp
US win the war. which will save the
lives OF our soldiers and our alsicss
soldiers by supplying them more
promptly with the tools Of war; ma
stional efficiency which, impaired, msans
loss Of untold lives and indefinite post.
ponnent Of that day to which ehe
whole anti -Csrman world lsshn S.r.
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