The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1919-05-31
President Acts to
Aid Trolley Lines
SITUATION 10 PRESENTED TO
HIM IN LETTER FROM SEC
RETARlEs REDFIELD AND
WILSON.

Wilson
Washington. d. president
Wilson has cabled his approval of
a Federal Commission to investi-
gate problems of Electric Rail-
ways after situation is presented to
him in a letter from Secretary OF
Commerce, w. C. RedfieId. and Sec
rotary of Labor, w. b. Wilson. The
following is the letter from the Sec
retaries outlining the situation:
DEPARTMENT OF COMMERCE
Washington, d. c.,
May 1913.
Dear Mr.. President:
The Electric Railway problem to
which your attention has been call
ed on several occasions has recent
" assumed such serious national
proportions as to warrant the
prompt attention of the Federal
Government Already fifty or more
urban systems representing con-
siderable percentage of the total
electric railway mileage of the
country are in the hands of receiv-
ers. The communities affected are
among the most important-New
York, Providence, Buffalo, New Or
leans, Denver, ST. Louis. Birming-
ham, Montgomery, Pittsburg. Mem
phis, FIT Wayne, Des Moines. st.
Paul, Spokane, Chattanooga.
Other large systems are on the
verge of insolvency, for the industry
as while is virtually bankrupt.
The continued shrinkage in the
value of hundreds of millions of
eIectrict railway securities held by
savings banks, national banks. life
insurance companies and by the
public at large threatens to en-
barrass the nations financial poera-
ton. Further more, the withdraw
al of this industry's buying power.
which is said to rank third in mag
nitude involves the unsettlement of
collateral industries. naturally en-
failing labor dislocation that will
affect hundred thousands of en-
ployees.
The return to normal cnoditions
Is being hampered and the efforts
of the Government to avert strained
conditions in finance, labor and
commerce are being less fruitful of
satisfactory results than should be
expected. II some solution of the
electric railway problem were in
view. !
What the solution is. may, we
believe, be evolved by a thorough
investigating of general franchise
and operating conditions in their re-
lation to rates, including service
at-cost plans, state and municipal
taxation, local paving requirements.
and internal economies that may be
effected.
We, therefore, propose and rec
ommend the appointment by you
of a Federal Board of Commits
sion. whose duty it shall be to
study and report that the State and
Municipal authorities and others
concerned may have the benefit of
full information and of any con-
illusions or recommendation that
may be formulated. such study
will, in our opinion, exert helpful
and constructive force in this criti-
cal period of the industry's exist
ence, and viii laid in the readjust-
ment. If you would make such an
appointment before June Goth, your
Contingency Fund could be used TO
defray the expenses, which would
be about $4,000.
The National Association of State
Commissioners has always invited
Federal aid in this matter and the
recent Conference of Governors and
Mayors adopted a resolution recon-
meuding Federal consideration of
the problem of preventing the n
nancial disaster threatening this in
dustry.
We propose that such commits
sion shall be made up of one rep
resentative of each of the following
groupes:
Treasury Department of War FL
nance Corporation; Department OF
Commerce; Department of Labor;
National Association of State Com
missioners; American Cities League
of MAYORS: Amalgamated Associa-
ton of Street and Electric Railway
EMPLOYEES; American Electric Rail-
way Association of America.
we respectfully urge your au-
thorization for such a Commission,
to be followed by your formal proc
lamation upon the selection of per-
sonnet.
(Signed)
WILLIAM C. REDFIELD.
Cordially yours,
Secretary of Commerce.