Every evening, Wilmington daily commercial., 1918-02-22
FINANCIAL AID
FOR UTILITIES
President and Secretary of Treas
urary See Necessity for
Relieving Tension.

Washington, Feb. 22-President VIII
pn and Secretary McAdoo, through
correspondence just made public give
assurance To public utilities corporations
hat every aid will be extended them to
prevent their finances from reaching a
state of bankruptcy
According to officials In the Treasury
Department, the financial condition of
public utilities is grave. Their income
virtually Is limited through the legal
prices they can charge, and In many
cities the problem of meeting fixed
charges is acute. A material service
is being rendered in many instances in
supplying light and power to war indus
tries. and the Government has taken the
position that assistance must be granted,
and IN the case of railway companies IN
transporting workers To industrial plants
Ii Is the intention of Treasury officials
10 impress upon State commissions and
other regulatory bodies the position
which now exists so that the pressure
from this source may be relieved.
PLAN LOANS FROM U. $.
Ample powers 10 remedy the situation
are contained in the war finance corpor-
alton bill, which may be stretched to.
cover the making of direct loans by the
IN case the banks are unable TO. extend
credit facilities, provided that the cor
porations have sufficient security for
the loan. 1t Is believed, however, the
creation of the war finance corporation
and the knowledge that II Is able TO extend
such aid will bc sufficient guaranty for
prompt extension of money by the bankers
OF the country.
N'Apoo WRITES pRrcIDrNr
The correspondence between Secretary
McAdoo and President Wilson follows:
February IL, 1918.
Dear Mr. President beg to hand
gou herewith several memoranda and
letters relating 10 the street railway
and other local public utilities furnishing
light, heat and power, which | have
bcen asked TO bring TO your attention by
a committee representing public utility
interests.
''TheSc papers Indicate the existence
OF genuine apprehension regarding 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 rs they have affected
everybody else, and that united effort
VIII be necessary in order to meet alike
the public requirements for service and
the corporate financial needs upon which
that service depends.
AS Secretary Of the Treasury I must |
take official notice of these matters. 1t |
Is obvious that every part OF our in |
dustrlal and economic life should be !
at ITS MAXIMUM strength in !
order that each may contribute in the |
fullest measure to the vigorous prose
cutlon of the war. Our locaI public /
utilities must not be permitted 70 be-
come weakened. The transportation Of !
workers To and from our vital industries
and the health and comfort Of our citi-
zens in their homes are dependent upon
and the necessary power to drive many
Of our war industries and many other
industries essential TO the war is produced |
by them.
at may be that here and there. be-
cause OF the prominence given 10 less
important interests immediately at hand
State and local authorities do not al
ways appreciate the close connection be
tween the soundness and efficiency Of
these local utilities and the national
strength and vigor and do not resort
With sufficient promptness TO the call
or remedial measures In such eases
am confident that all such State and
ocal authorities will respond promptly
10 the national needs when the matter
S fairly and properly brought before them.
''Our public service utilities are closely
with and are an essential part
If our preparations for 3 successful
of the war and the unfavor-
,ble tendencies which the accompanying
Dapers reveal may most effectively be
checked, wherever they may be bound TO
exist, and the needed relief obtained only
~ prompt action on the part OF the re-
ipectiye local authorities