The Clio messenger., 1918-04-26
900 SEEKS HELP
FOR PUBLIC UTILITIES
WILL ASK STATES AND MUNiCI.
PAliTlEs TO PERMIT RATE
INCREASES TO MEET WAR
CONDITIONS.
PRESIDENT APPROVES 1T
Declares II ls Essential That All
Utilities Be Maintained at
Maximum Efficiency.

the big public utility corporations ask.
ing that State and local 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 Treasury, brought the matter to
the attention Of President Wilson.
He received reply from the
President expressing the conviction
that the public utilities formed a vital
part OF the war machinery and author.
izing him to take up with the proper
officials, when circumstances might
make such action advisable, the prob.
lens 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 IL service was to be extended 10
meet the increased demands of war
time activities. 1t is possible that
some consideration may be given by
the Federal Government to the ques.
tion Of extending credit necessary for
expansion, especially il the War Fl.
nance Corporation bill is adopted.
The utilities in which the Federal
Railroad Administration will interest
itself are street, railway, light, heat
and power companies. Where it ap.
pears necessary increases in fares or
rates may be suggested.
McAdoo's Appeal.
Copies of the correspondence be-
tween the President and Mr.. McAdoo
were made public. The Secrctarys
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 furnish.
ing light, heat, and power, which l
have been asked to bring to your
ali ention by a 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
or local public utilities. The view
is expressed that increased wages
and the high cost of essential mate.
rials 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.
lie requirements for service and the
corporate financial needs upon which
that service depends.
Az 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 maximum
strength in order that each may con-
tribute in the fullest measure to the
vigorous prosecution Of the war. Our
local public utilities must not be per.
mitted to become weakened. Trans
portetion of workers to and from our
vital industries and the health and
comfort of our citizens In their homes
are dependent upon them, and the
necessary power to drive many or our
war industries and many other In
dustries essential to the war Is pro-
duced by them. 1t may be that here
and there, because Of the prominence
given to less important interests inn
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 sur.
ficient promptness to the call for rem
edial measures. In such cases, l am
confident that all such State and To-
cal authorities will respond prompt
Iy 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 or the
war. and the unfavorable tendencies
which the accompanying papers re-
veal may most effectively be checked,
wherever they may be found to ex'
list. and the needed relief obtained,
only by prompt action on the part OF
the respective local authorities.
earnestly hope that you may feel
justified in expressing the conviction
that the vital part which the public
utilities companies represent In the
life ard war-making energy or the
nation ought to receive fair and just
recognition by State and local author
tiles. Cordially yours,
(signed) w. G. McADoo.
The President, the White House.
President Wilson's Reply.
Here is the Presidents reply:
The White House, Washington.
10 February, 1918.
My Dear Mr.. Secretary:
I have examined with care the
memoranda and letters which you
transmitted to me with your letter OF
the fifteenth. / fully share the views
you express regarding the impor'
tance OF the public service utilities
as a part Of our national equip
msnt, especially in wartime. 1t Is
essential that these utilities should
be maintained at their maximum eft.
cheney and that everything reason
ably possible should be done with
that end in view. 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 neces-
stiles of the situation.
I shall be glad to have you COM
municate with the local authorities
when ever the information in your
possession suggests that such q
n