Evening journal., 1918-02-22
Increases OF Rates
FAVORED By Wilson
Urges Need for Maintenance
of Public Utilities at
Full Efficiency
AID IS ASKED
BY COMPANIES


WASHINGTON. Feb. 22-Ihe raising
OF rates by public utility corporations
wherever necessary 10 maintain them
at maximum efficiency during the
period Of the war is favored by prosi-
dent Wilson. In letter 70 Secretary
McAdoo the President expresses hope
that local authorities throughout the
country who have jurisdiction in such
matters Will respond promptly 10 Toe
necessities Of the situation 10 consid-
ering appeals for rate raises
Appeals for rate increases by public
utility corporations are pending all
over the country. but there has been
an indisposit.cn shown TO expedite
such cases or 10 view the Increases
asked for In the light VI a war neces-
sity. 50 serious has become the situ-
alton that a committee representing
public utility interests recently laid
before Secretary McAdoo facts and fig
urcs which showed that 10 some cases.
unless relier was quickly afforded even
the fixed charges OF some companies
could not be met. These interests, it
is understood. also carried their an
p9al directly 20 tho President pointing
out that. with their rates fixed by com
missions, they were helpless 70 aid
themselves.
. The Presidents statement today
was prompted by a letter and mem
oranda from Secretary McAdoo calling
attention TO the genuine apprehension
felt In many quarters regarding the
adequacy under present conditions OF
services and rates, Of local public utili-
ties furnishing light. heat and power.
The correspondence between Secre-
tary McAdoo and President Wilson fol-
lows:
February IS. 1918.
Dear Mr.. President beg 20 hand
you herewith several memoranda and
letters relating 10 the street railway
and other local public utilities furnish
Ing light, heat and power, which have
been asked to bring 10 your attention
by a committee representing public
utility interests.
These papers indicate the existence
Of genuine apprehension regarding the
adequacy under present conditions Of
the service 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
VIII be necessary ln order 10 meet
alike the public requirements FOR ser
vice and the corporate financial needs
upon which that service depends.
'As Secretary OF the Treasury ! must
take oflcial notice OF these matters. 70
Is obvious that every part Of our In
dustrial and economic life should be
maintained at It's maximum strength In
order that each may contribute In the
fullest measure 90 the vigorous prosecu-
tion Of the war. Our local public utili-
ties must not be permitted 10 become
weakened. The transportation Of work
ers 10 and from our vital industries and
the health and comfort OF our citizens
in their homes are dependent upon. and
the necessary power 10 drive many OF
our war industries and many other IN
dustries essential 20 the war is produced
by them.
1T may be that here and there. be-
cause OF the prominence given TO less
important interests Immediately az hand.
state and local authorities do not al
ways appreciate the close connection
between the sOundness and efficiency OF
these local utilities and the national
strength and vigor and do not resort
with sufficient promptness 70 the call
for remedial measures. In such cases
am, confident that all such State and
local authorities VIII 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 es-
sential part Of our preparations FOR
successful prosecution OF the war and
the unfsvorable tendencies which the
accompanying papers reveal way most
effectively be checked, wherever they
may be found 20 exist. and the needed
relief obtained only by prompt action
on the part OF the respective local au-
ihorities.
y 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 20 receive fair and just recoe-
milton by state and local authorities.
Cordially yours.
wv. q. McADOO"
The Presidents response follows:
Il have examined with care the
memoranda and letters which you
transmitted 20 me. with your letter OF
the 18th.
Il fully share the views you express
regarding the importance OF the public
service utilities as a part Of our ma
tional equipment. especially in war
time. 70 Is essential that these utilities
should be maintained st their maxi
mum efficiency and that everything
reasonably possible should be done
with that end 10 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 necessities Of
the situation.
Il shall be glad 70 have you com
municate with the local authorities
whenever the information in your pos
session suggests that such course is
desirable and In the national interest"
R.R. CLUB ELECTS.