The Birmingham age-herald., 1921-01-23
CINCINNATI IS
 ONLY CITY THAT
 OWNS RAILROAD
Application Has Been Filed to Build New Bridge Over Ohio. Trustees In Report Show
 Enterprise Pays
By Associated Press


 Cincinnati Ono, January 22-The
 trustees of the Cincinnati Southern rail-
 road, the only municipally-owned rail. road in the United States, have forward cd to the interstate commerce conmis- sion a detailed statement of the condi- eion of the road, in support of an appli- cation of the Cincinnati New Orleans and Texas Pacific railway, lessees of the road, for approval Aof plans to build a new bridge across the Ohio river at Gin
 cinnat. The trustees propose to issue S2,5Co0OO worth of bonds to pay for the new bridge. The railway will bear the sinking fund and interest charges on these bonds, as well as the cost of main taining the bridge.
 According to city officials and bankers the leasing of the railway system from the city gives the Cincinnati, New Or ieans and Texas Pacific a distinct ad- vantage over other roads. In the present condition of the market, they say, pri- vateiy-owned railroad would have to cffer high rate of interest to float it's bonds. In this instance, however, the city of Cincinnati lends it's credit and the municipal bonds issued for the pur- pose are expected to find a ready market at an interest rate of 6 per cent. How ever, the city too, will benefit, for when the bonds mature the sinking fund cre- ated through the rentals paid for the bridge will redeem them, and the city will own a structure which did not cost it a cent.
 This condition is true, in fact, of the entire railway system owned by Cincin- nati, extending from Cincinnati to Chattanooga, Tenn. The bonds issued for the construction of the road are being redeemed through the rental pay ments made by the Cincinnati, New Or leans and Texas Pacific, and when the last payment has been made Cincinnati will have railroad, system which now is believed to be worth between $30. .000, 900 and $35,OO0,0OO without a penny of cost to the taxpayers.
 The facts placed before the interstate commerce commission show that the agi- tation for the building of the road started in Cincinnati in 1869, in order to make the city properly the gateway to the south' There were many years of vexat:ous delays and misunderstood irgs, but the completion of the con- struction of the line was celebrated in Music hall here March Is. 1880, with memorable banquet attended by 5,0JO citizens of this city and southern states.
 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 ap- pointed for life. The city originally is- sued $1S,5000O0 worth of bonds for the building of the road, but this has been reduced. through the redemption of bonds. to $l4932. 900. Tn addition to the former amount bonds were issued from time to time, in the aggregate of $3,- 1500o0, for the building of terminals These bonds are still outstanding.
 The Cincinnati, New Orleans and Texas Pacific railway pays an annual rental based originally upon the sinking fund and interest charges on all these bonds. It also Is meeting installments of de ferred payments, which accumulated during the early days of the road when it was not paying proposition A deficit of approximately $5,O0O,O00 devel- oped in the interest fund at that time. This has been reduced to $3,264 ,3S4 32
 During 1920 the amount paid for the Southern was $1.094.350 and $l4T.l25 addi- tional for the terminals. The amount is approximately $5G0.0O0 in excess of what is actually required to meet current sink ing fund and interest payments This is being used to meet interest and sink ing fund payments on other city bonds, thus relieving the taxpayers of that much of their burden,