Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-02-22
RAT1ONS
n, WILSON'S PLAN
xsPt Sees Need of Gov
Eninent Aid for Public
Utilities
CONES HAVE BEEN CUT
t1ldeo Wants Finance Bill
ctretched to Cover Point and
Relieve Tension
wAsu1NGroN Feb 20

+III&4 WAShlNGION. feD. s1'
pfosident wilson and Secretary Me-
16& through correspondence just made
ok(le. give assurance TO public utilities
sfp5ratIons that every aid will be ex-
t1nd<d them to prevent tneT finances
<son, reaching state OF bankruptcy
According TO ofilc.ais in the Treas.
nv Department, the financial condition
" public utilities is grave. Their in
tome virtually is limited through the
leeat prices they can charge. and in
many cities the problem of meeting fixed
kharees is acute. A material service is
teing rendered in many instances in
t,fes. and the Government has taken
y position that assistance must he
Granted. and IN the case of railway
companies In Transporting workers TO
lhdustriai plants
Hf 1t In the intention Of Treasury off,
Gals TO impress upon State commits
Mons and other regulatory bodies the
position which now exists so that the
pressure from this source may be re-
lleved.
t1 PLAN LOANS FROM l.. =.
IN Ample powers To remedy the stua-
Ecu are contained In the war finance
corporstion bill. which may be stretched
ID cover the making of direct loans by
the Treasury Department TO public utili-
Ties In case the banks are unable to ex-
tend credit facilities. provided that the
rorporations have sufficient security for
the loan. 1t is believed, however. tbs
creation OF the war finance corporation
Hnd the knowledge that II Is able to ex-
tend such aid will be sufficient guaranty
Tor prompt extension OF money by the
bankers of the country.
The correspondence between Secre.
tary McAdoo and President Wilson fol.
lows:
February rs. 1918
III Dear Mr.. President beg TO hand
you herewith several memoranda and
letters relating to the street railway
and other local public utilities furnish :
Ing light. heat and power. which | have
been asked to bring to your attention
py committee representing public
btility interests.
These 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 as 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.
SHOULD MAINTAIN INDUSTRIES
-As Secretary. of the Treasury must
take Official notice of these matters. 1t
Is obvious that every part Of our in
dustrial and economic life should he
maintained at its maximum strength In
fullest. measure to the vigorous prose.
cution OF the war. Our local public
utilities must not be permitted to be-
come weakened The transportation OF
and the health and comfort of our citi.
xens In their homes are dependent upon
and the necessary power to drive many
Industries essential TO the war is pro
ouced by them.
1T may be that here and there. be
cause OF the prominence given TO les
Important interests Immediately at hand
State and local authorities do not al
ways appreciate the close connection be
tween the soundness and efficiency o
these local utilities and the nationa
strength and vigor and do not resor
With sufficient promptness to the cal
\ Tor remedial measures. In such case
am confident that all such state an'
local authorities will respond promptl!
90 the national needs when the matte
them.
"Our public service utilities are closel,
connected with and are an essential par
pf our preparations for a successful
prosecution of the war and the unfavor
able tendencies which the accompanying
papers reveal may most effectively b,
z checked. wherever they may be found L
exist. and the needed relief obtained onl,
by prompt action on the part of the re
spective local authorities.
a ~ earnestly hope that you may fee
Justified In expressing the conviction tha
the vital part which the public utilities
companies represent in the life and war
making energy Of the nation ought to re
eeiye fair and Just recognition by Stat,
and local authorities.
Cordially yours.
Wv G. McADOO."