Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1918-02-26
SEEKS HELP FOR
PUBLIC UTILITIES
McAdoo Will Ask States to
Permit Rate Increase
During War


everal of the big public utility cor
porations asking that State and To-
cal authorities be urged to consider
quickly arguments for readjustment
of rates which would tend toward
maximum of efficiency, William G..
McAdoo, as Secretary of the Treas
ury, brought the matter to the at
tention of President Wilson.
He received a reply from the
President expressing the conviction
that the public utilities formed a
vital part of the war machinery and
authorizing him to take up with the
proper officials, when circumstances
might make such action advisable,
the problems involved.
/ The representatives of the public
utilities had brought before Mr.. Nc
Adoo what they believed to be the
necessity for a general increase in
rates If service was to be extended
to meet the increased demands of
wartime activities. 1t is possible
| that some consideration may be
given by the Federal Government
| to the question of extending credit
necessary for expansion, especially
If the War Finance Corporation bill
| is adopted.
The utilities in which the Federal
Railroad Administration will inter-
est itself are street, railway, light.
heat, and power companies. Where
1T appears necessary increases in
fares or rates may be suggested.
McAdoo'S Appeal
Copies of the correspondence be-
tween the President and Mr.. Nc
Adoo were made public to-day. The
Secretary's letter to the President
follows:
Feb. Is, 1918.
Dear Mr.. President beg to hand
you herewith several memoranda
and letters relating to street railway
and other local public utilities fur
nishing light, heat and power, which
| have been asked to bring to your
attention by committee represent
ing public utility interests.
These papers indicate the exist
ence of genuine apprehension re-
garding the adequacy, under present
conditions, of the services and rates
of local public utilities. The view is
expressed that increased wages and
the high cost of essential materials
and supplies have affected them as
they have affected everybody else,
and that united effort will be neces-
sary in order to meet alike the pub
lice requirements for service and
the corporate financial needs upon
which that service depends.
As Secretary of the Treasury. /
must take official notice of these
matters. 1t is obvious that every
part of our industrial and economic
life should be maintained at its max
imum strength in order that each
may contribute in the fullest meas
ure to the vigorous prosecution of
the war. Our local public utilities
must not be permitted to become
weakened. Transportation of work.
ers to and from our vital industries
and the health and comfort of our
| citizens in their homes are depend
| ent upon them, and the necessary
power to drive many of our war in
dustries and many other industries
essential to the war is produced by
them. 1t may be that here and
I there, because of the prominence
given to less important interests i'm
mediately at hand, State and local
authorities do not always appreciate
the close connection between the
soundness and efficiency of the local
utilities and the national strength
and Vigor, and do not resort with
sufficient promptness to the call for
| remedial measures. In such cases,
! l am confident that all such State
and local authorities will respond
promptly to the national needs when
the matter is fairly and properly
brought before them.
Our public service utilities are
closely connected with and are an
essential part of our preparations
for and successful prosecution of the
war, and the unfavorable tendencies
which the accompanying papers re-
veal may most effectively be check
ed, wherever they may be found to
exist, and the needed relief obtained,
only by prompt action on the part of
the respective local authorities.
l earnestly hope that you may feel
justified in expressing the conviction
that the vital part which the public
utilities companies represent in the
life and war-making energy of the
nation ought to receive fair and just
recognition by State and local au-
thorities. Cordially yours.
(Signed) w. G.. McADOO.
The President the White House.
President Wilson'S Reply
Here is the Presidents reply:
The White House, Washington,
19 February, 1918.
I have examined with care the
memoranda and letters which you
transmitted to me with your letter
of the fifteenth. l fully share the
views you express regarding the i'm
portance of the public service utili-
ties as a part of our national equip
ment especially in wartime. 1t is
essential that these utilities should
be maintained at their maximum
efficiency and that everything rea-
sonably possible should be done with
that end in view. I hope that State
and local authorities. where they
have not already done so, WILL when
the facts are properly laid before
them, respond promptly to .the ne
cessities of the situation.
I shall be glad to have you COM
municate with the local authorities
whenever the information in your
possession suggests that such a
course is desirable and in the ma
| tional interests.
I Cordially yours,
(Signed) WOODROW WILSON,
Hon. William G. McAdoo. Secretary
of the Treasury.
| T0-0~ooA D~ox~~wo