South Bend news-times. (South Bend, Ind.) 1913-1938, 1921-01-25
CINCINNATI PLANS
new BRIDGE TO BE
LEASED TO RAILWAY
The Only Municipality Owned
Road In Nation Asks Com
missions Approval.

CINCINNATI. o.. Jan. 2f.-The
trustees OF the Cincinnati Southern
railroad. the only municipality owned
railroad In the United States, have
forwarded 20 the Interstate COM
merce Commission a detailed state
ment of the condition OF the road,
in support OF an application OF the
Cincinnati. New Orleans & Texas
Pacific Ry. lessees OF the road. Tor
approval OF plans TO build new
bridge across the Ohio river, NJ Gin
cinuati
The trustees propose 10 issue So
100000 worth OF fund and interest,"
charges on these bonds. as well as
the cost Of maintaining the bridge.
According TO city officials and
bankers the leasing OF the railway
system from the city gives the Gin
cinuati. New Orleans x Texas Pa
ciiic a distinct advantage over other
roads. In the present condition or
the market. they say a privately
owned railroad would have 20 offer
a high rate Of interest TO float its
bonds In this instance, however.
the city of Cincinnati lends It's credit,
and the municipal bonds issued for
the purpose are expected 10 find
ready market at an interest rate OF
six per cent.
City VIII Benefit
However. the city. TOO, will Oene-
FIT: for when the bonds mature the
sinking fund created through the
rentals paid FOR the bridge Will re
deem them, and the city will own q
structure which did not cost 10 d
cent.
This condition Is true. In fact, Of
I the entire railway system owned b.
/ Cincinnati. extending from Cincin-
natl 20 Chattanooga. Tenn. The
bonds issued for the construction Of
/ the road are being redeemed through
1.-THE rental payments made by the
Cincinnati. New Orleans &c Texas
| Pacific. and when the last payment
! has been made Cincinnati will have
a railroad system which now is be
\ lieved 10 be worth between $4,000
900 20 s35.000.000. without a penny
/ OF cost TO the taxpayers.
/ The facts placed before the Inter-
state Commerce commission show
/ that the agitation for the building
OF the road started in Cincinnati in
| 1869, IN order to make the city,
properly 1.-THE gateway 10 the South. y
| There were many years Of veNatiouE
! delays and Observation-Disclosures, but
/ the completion Of the ConS TuctOn
1 OF the line was celebrated in Music
| hall here on Mar. IS, 1900, with a
memorable banquet attended by
| 5000 citizens OF this city and south
ern states.
Trustees Supervise Interests.
a board of trustees. appointed by
] the superior court OF Cincinnati,
supervises the city's interests in the
| conduct OF the road. The members
| of the board are appointed for life.
The city originally issued $l8,30O,-
coo worth of bonds for the building
OF the road, but this has been re-
duced, through the redemption Of
bonds, to s14,932, 900. IN addition
10 the former amount. bonds were
issued from time TO time, IN the
aggregate Of S3,l50.0O0. for the
building Of terminals. These bonds
are still outstanding.
The Cincinnati, News Orleans and
Texas Pacific Ry. pays an annual
rental based originally upon the
sinking fund and interest charges OF
all these bonds, II also is meeting
linstallments Of deferred payments
which accumulated during the early
days OF the road when Il was not
a paying proposition. A deficit OF
approximately 100000 developed
in the interest fund at that time
This has been reduced to &3.264
334.32.
During 1920 the amount paid fol
the Southern was $1.094.35O. and
S147.12e addition for the terminals
The amount is approximately $500
600 IN excess of what is actually re
quired 10 meet current sinking funC
and interest payments. This IS be
ing used 70 meet interest and sink
ing fund payments on other city
bonds, thus relieving the taxpayer!
OF that much OF their burden.