Memorandum as to Federal Utilities Advisory Board
Title
Memorandum as to Federal Utilities Advisory Board
Creator
Cooke, Morris Llewellyn, 1872-1960
Identifier
WWP25187
Date
[1918 September 20]
Description
Utilities advisory board should be established, says a member of the US Shipping Board.
Source
Library of Congress, Woodrow Wilson Papers
Publisher
Woodrow Wilson Presidential Library & Museum
Subject
World War, 1914-1918--United States
Contributor
Danna Faulds
Relation
WWP25185
WWP25186
Language
English
Provenance
Document scan was taken from Library of Congress microfilm reel of the Wilson Papers. WWPL volunteers transcribed the text.
Text
MEMORANDUM AS TO FEDERAL UTILITIES ADVISORY BOARD.
The situation in which many public utilities now find themselves is most unenviable. Practically all have had to face increasing costs of operation, and where additional capital has been needed interest rates have materially advanced. In some instances the business done has increased at such a rapid rate and the resulting economies have been so marked that the increase in operating costs and fixed charges has been offset in part or in whole, leaving little if any need for rate advances. In other cases there has been no such offset and the condition is reported to be worse today than it has been in many years.
As a result of these and other changes which have taken place within the immediate past, public service corporations have very generally asked for increase in the prices charged for the service rendered, or changes in the service supplied which would be equivalent to an increase in rate. Whether such rate increases or changes in service should reasonably be granted depends upon many factors which vary greatly in different cities. Consequently, it is impossible to promulgate general rules which would uniformly applicable. Further, the mere fact of an increase in operating costs does not establish the necessity for a proportionate increase in the cost of service or a change in the character of the service.
Generally speaking, there is a solution for each situation in that some public authority -- local or state -- has the power to grant relief where relief is needed, or to adjust rates and service to existing conditions. But owing to the war there are national aspects of these utilities problems which need to be considered and emphasized. On the other hand there are local factors such as legal formalities and restrictions which make prompt action difficult. It must be borne in mind however that in some situations immediate action is altogether imperative.
In order that every national consideration may be adequately presented to local and state authorities, and that communities and corporations alike may have the benefit of the advice of persons well versed in utility matters, particularly from the standpoint of the interests of the public -- a utilities advisory board, in touch with the war program, should be established. This Board should be provided with adequate facilities to investigate promptly any situation that may be brought to its attention and freely to advise municipal, state and Federal authorities, and public service corporations as to plans and measures to be adopted during the war period.
Nearly every department of the Government having directly to do with the conduct of the war is constantly issuing orders and taking actions bearing on utility matters. It is altogether desirable that there be harmony and reasonable uniformity in such matters. As a rule such commitments should be submitted to the Utilities Advisory Board before being issued.
In view of the general willingness of the country to comply with findings made by federal authorities, it is not necessary to confer upon this Board any power to enforce its own findings. As the conditions with which it is to deal have grown out of the war, there is no necessity for its action to apply except during the war and a brief post-war period. Thereafter, recourse may once again be had to peace-time methods for adjusting the relationships between the public and public service corporations.
The plan here proposed of bringing together a small expert body recruited from the several departments is one that has very frequently been adopted by the Administration with good success.
If such a Board is to be established it is obvious that it will succeed principally through the confidence it creates in the public by virtue of the pre-war activities and association of its members. Only through a Board so constituted would the existing prejudices of the people be so set at rest as to make the adoption of broad constructive policies at all possible. Without general acceptance and widespread confidence in the Board and its findings it will be impossible to secure the cooperation of public officials and others at interest that would be necessary for immediate action.
Such an agency can be most promptly and smoothly started through the appointment to it of men who are not only already in Government employ, but who are resident in Washington. There are a considerable number of names meeting all the above conditions that may be submitted.
The entire matter could be gotten under way through a letter from the President to the Chairman of the proposed Board which would be little more than the first six paragraphs of this memorandum followed by a line or two making the appointment.
A small allotment from the President’s special fund would be required for administrative expenses.
Morris L. Cooke.
United States Shipping Board.
The situation in which many public utilities now find themselves is most unenviable. Practically all have had to face increasing costs of operation, and where additional capital has been needed interest rates have materially advanced. In some instances the business done has increased at such a rapid rate and the resulting economies have been so marked that the increase in operating costs and fixed charges has been offset in part or in whole, leaving little if any need for rate advances. In other cases there has been no such offset and the condition is reported to be worse today than it has been in many years.
As a result of these and other changes which have taken place within the immediate past, public service corporations have very generally asked for increase in the prices charged for the service rendered, or changes in the service supplied which would be equivalent to an increase in rate. Whether such rate increases or changes in service should reasonably be granted depends upon many factors which vary greatly in different cities. Consequently, it is impossible to promulgate general rules which would uniformly applicable. Further, the mere fact of an increase in operating costs does not establish the necessity for a proportionate increase in the cost of service or a change in the character of the service.
Generally speaking, there is a solution for each situation in that some public authority -- local or state -- has the power to grant relief where relief is needed, or to adjust rates and service to existing conditions. But owing to the war there are national aspects of these utilities problems which need to be considered and emphasized. On the other hand there are local factors such as legal formalities and restrictions which make prompt action difficult. It must be borne in mind however that in some situations immediate action is altogether imperative.
In order that every national consideration may be adequately presented to local and state authorities, and that communities and corporations alike may have the benefit of the advice of persons well versed in utility matters, particularly from the standpoint of the interests of the public -- a utilities advisory board, in touch with the war program, should be established. This Board should be provided with adequate facilities to investigate promptly any situation that may be brought to its attention and freely to advise municipal, state and Federal authorities, and public service corporations as to plans and measures to be adopted during the war period.
Nearly every department of the Government having directly to do with the conduct of the war is constantly issuing orders and taking actions bearing on utility matters. It is altogether desirable that there be harmony and reasonable uniformity in such matters. As a rule such commitments should be submitted to the Utilities Advisory Board before being issued.
In view of the general willingness of the country to comply with findings made by federal authorities, it is not necessary to confer upon this Board any power to enforce its own findings. As the conditions with which it is to deal have grown out of the war, there is no necessity for its action to apply except during the war and a brief post-war period. Thereafter, recourse may once again be had to peace-time methods for adjusting the relationships between the public and public service corporations.
The plan here proposed of bringing together a small expert body recruited from the several departments is one that has very frequently been adopted by the Administration with good success.
If such a Board is to be established it is obvious that it will succeed principally through the confidence it creates in the public by virtue of the pre-war activities and association of its members. Only through a Board so constituted would the existing prejudices of the people be so set at rest as to make the adoption of broad constructive policies at all possible. Without general acceptance and widespread confidence in the Board and its findings it will be impossible to secure the cooperation of public officials and others at interest that would be necessary for immediate action.
Such an agency can be most promptly and smoothly started through the appointment to it of men who are not only already in Government employ, but who are resident in Washington. There are a considerable number of names meeting all the above conditions that may be submitted.
The entire matter could be gotten under way through a letter from the President to the Chairman of the proposed Board which would be little more than the first six paragraphs of this memorandum followed by a line or two making the appointment.
A small allotment from the President’s special fund would be required for administrative expenses.
Morris L. Cooke.
United States Shipping Board.
Original Format
Memorandum
Files
Collection
Citation
Cooke, Morris Llewellyn, 1872-1960, “Memorandum as to Federal Utilities Advisory Board,” [1918 September 20], WWP25187, World War I Letters, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.