The Goldfield news and weekly tribune. [volume] (Goldfield, Nev.) 1911-1947, 1918-03-30
PUBLIC SERVICE CORPORATIONS IN WAR

TO - -" has nrompted the government to seek measures of relief
TO sustain these industries and maintain their solvency in the
face of influences, due to the war, that are menaclng nell
ability to serve the public, if not their actual existence.
Secretary McAdoo has dealt with the situation in a letter
to the president, in which he says:
II earnestly hope that you may feel Justhled In expressing
the conviction that the vital part which the public utilities
companies represent in the life and war-maklng energy u tne
nation ought to receive fair and just recognition by state and
local authorities"
President Wilson, in his reply, says:
"t is essential that these utilities should be maintained at
their maximum efficiency and that everything reasonably
possible should be done with that end in view. l nope tha'
state and local authorities, where they have not already done
so, will, when the facts are properly laid before them' respohu
promptly to the necessities of the situation"
Under the caption, Maintenance of Efficiency and Credit
Of Public Utilities Essential" John Shelton Williams, comp
troner of the currency, in his annual report said: .
National and state banks, and many thousands OF small
and large investors. have suffered seriously from the decline of
the earning capacity of public utility corporations and the con
sequent shrinkage in the value OF their securltles, fepresenuhe
investments of many hundred millions OF dollars. hese oss
es naturally diminish the power and disposition of the public to
respond to the calls of the government for money for war.
This danger should arouse, I venture to suggest, the
anxiety and stimulate the efforts of the congress and OF every
patriotic citizen. A more urgent and pressing peril is forced
upon our attention by the obvious fact that we are dependent
so largely on the efficiency and strength OF these corporations
and on our railroads for speed and success in preparing for and
prosecuting the war.
1.-THE corporations referred to supply light, heat, pow r and
electric railway transportation for passengers and freight.
They touch Immediately the daily life of the people. In normal
times they have been favorite targets for sneers and savage
criticisms from large parts of the public and the press. In
some dUC uOuDutSS, tHCJ ave uOoOi y" "u H'i"" NO.
tnity. In others. the attacks upon them probably have been
unjust and unreasonable. Frequently they have been the vic
Tins or beneficiaries of local politics, suffering injury in the
end in either case. Yet, generally, they were able to serve the
needs of their communities with reasonable efficiency and to
earn fair returns on the money invested in them.
"Now they are threatened with ruin. If they are allowed
to sink into ineffciency much of the important war work OF
the government will be crippled or paralyzed.
1.-THE work of the war has thrown upon many of these cor
porations strains which they are unable to endure without
prompt help. The costs of their labor and of all material for
operation, betterment and upkeep have increased heavily and
suddenly.
1.-THE continued and increasing efficiency of these corpora
tons is important for the successful conduct of the war. This
efficiency is not possible with present conditions. Corpora
tons proved by their own figures to be approaching bank
ruptcy cannot obtain money for improvements or maintenance.
On the other hand, banks and citizens suffering severe losses
from investments in the securities of these entirely legitimate
and once promising enterprises will be discouraged from lend
ing money to the government or deprived of the means to
lend.
"The first and most direct relief to the public utilities cor
porations can be given by the state utilities commissions and
municipal and local authorities, with the broad-minded CO.
operation of the people generally, understanding the necessi-
ties of war and realizing that the more promptly its burdens
are accepted the sooner they will be lifted.
1T is essential that fOrbearance and consideration be eX-
ercised by the state commissions and municipal authorities, and
that the corporations also be permitted to make such additions
to their charges for service as will keep in them the breath of
solvency, protect their owners against unjust loss, and give
them a basis of credit on which they may obtain the funds with
which to meet the strain put on them by the governments
needs. The breaking down of these corporations would be a
national calamity.
With appropriate aid from the government through the
congress; with liberal recognition by local authorities of the
present acute conditions, and with some practical provision to
enable the corporations to meet their own needs and those of
the country, the danger now pressing and becoming more seri-
Gus with each day will be removed, the general business inter-
ests of the country will be fostered, the ability and readiness
of the public to respond to calls for money will be maintained,
the urgent requirements for the defense of the countrys life
and assurance of our freedom and peace will be met"
Henry Ford was laying keels for submarine chasers two
weeks after he got the contract. Henry is likely to be called