The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1921-02-08
{: 20
Paying Dividends.
No Interest Default.
Why No Cash Today.
Rotten Politics.

fTNfiE CITY Is paying dividends on
i a municipal railway valuation
OF SIS. 600 zoe. This is the outstand.
ing fact presented both by the city
treasurer and the city comptroller.
The railway is paying 5 per cent
interest on $4,000. .oOo- paying Il,
not owing Il. Tho city. Is not de
faulting--cn interest payments--and
Il IL not going to.
BY June IL Will be on n cash basis.
REMEMBER. WE STARTED
SISS.ooe IN THE RED
II would be on a cash basis today
n IL were not for the fact that the
railway fund was behind siS1.0
when the Puget Sound Traction sy@
tom was taken over. In addition 10
this. the railway department spent.
out OF its revenues. probably a
quarter million dollars for better
mcnts. These bettcrments arc
charged up 20 additional capital In
vcstmcnt Nevertheless. tho cash
was taken from the oarfares paid In
BY the people. And 30. II these bet.
termcnts or extensions were not
made. there would be cash ON hand
today.
Let IL be understood that better.
mcnts are not the same as main
tenancc charges. Better,nents are
additions to the railway property.
Maintenance and equipment charges
are In the nature OF costs for keep
ting property In good shape and re
pair.
Had the city pursued the same pol
Icy as the traction company did for
many years. these additions. exsen-
sions and betterrnents would not
have been undertaken.
Now. this rs trues That while the
city railway is paying dividends on
$4,000. 900. IL is not yet paying off
any part os the purchase price
CITY HASN'T A NICKEL
INVESTED IN THE ROAD
--srwcver. this Is nothing serious
Tho city hasn't a nickel invested In
tho road. II has paid nothing for
the system. IL II should mako
enough money our OF the earnings
Of the road TO pay for the entire
road. IL certainly would be an
achievement not paralieied usually
in private business. There IL n
chance that the city may do II. II
the present revenues are any cri-
terion. and II the revenues are not
waxted by bad management. or In.
efficient administrators
III the city cannot do II. what
them
n a, ~ tr.oh< e a. s-,e-r< a.. anwmrust
aspect Suppose the CITY went into
its pockets for si5.oO0. 900 to pay for
the system. This amount would be
It's investment. on that investment.
how much should the city have In
return? Five or six per cent. II the
average public utility return Is con
x1dered.
Well. that's what the city railway
- doing now. or approximately so.
II the city had the money invested
In the railway. the city would be
entitled to all the interest we are
now paying out. which is more than
100000 a year. But II has no in
rNesunent at ALL so why kick up
fuss because II isn't making loads Of
money? Why all this hulIabalooy
NEARLY ALL THE TINE
on A CASH BASIS
The city railway. 'it should be
borne In mind. has been on a cash
basis nearly all the time. And this
II more than can be said Of most
OF the city departments. and more
than can be said for tho city and
county as a whole.
Does IL not appear rather strange
that the railway should have been
made the butt OF such unjustified at.
tack and abuse7 Does it not seem
peculiar that some OF the men and
some OF the interests who helped
swing the deal. should now cast in
sinuatipns upon their own comrades
In action7 Does it not smell like
rotten polltics7
Verify dooaf