Puget Sound Ferry System
Costing $1.<111199 Runs $37,920,000
In the Red In Fie veil Years Service
(Editor's Note: The following
article is the first of a two
part series exploring the finan
cial plight of the Washington
State Ferry System.i
By John Komen
OLYMPIA UP) — In 1951 the
State of Washington bought itself
a Puget Sound ferry system for
$4,944,499.
Eleven years later that same
ferry system — plus a bridge that
has been tied to it — is saddled
with a bonded debt of $37,920,000,
an amount more than seven times
the original purchase price.
The figures reflect in a nutshell
the financial troubles that have
bothered and bewildered the
ferry system since it became a
state monopoly.
The 1961 Washington legisla
ture confronted the problem and
came up with a plan it apparently
felt would provide a solution.
The plan called for issuing $38 j
million in new bonds to pay off !
the present outstanding bonds.
The main idea behind this so
called “refunding plan” was to
reduce from 140 per cent to 100
per cent the amount of cash the
state must have on hand at all
times to meet minimum yearly
debt service payments.
By reducing the requirement to
1 DO nor rent mnrr> each wniild Van
released for operating expense
and debt payments.
The refunding plan was pro
moted as a move to eliminate state
subsidies needed to run the ferry
system and meet bond debt re- i
quirements.
But the plan never was sub
mitted into effect. It became tied
up in court.
It was submitted for a legal j
test to the State Supreme Court I
Jan. 22. On Oct. 30 — more than
nine months later — the court
decided to rehear the case. It wili I
be re-argued Nov. 21.
The court gave no reason, but
there was speculation the eight
judges who had heard the original
arguments nine months ago had
split on whether the refunding
plan was legal.
Thus the ferry system financial
problem continues. The need for a
further subsidy has already been
revealed.
Since 1957 the ferry system,
which includes the Hood Canal
floating bridge, has received $9,
307,718 in subsidies and loans
from the legislature and from ex
ecutive emergency funds.
Next January the 1963 legisla
ture convenes, and it will be asked
to appropriate another subsidy of
$1,416,401 to keep the system on
an even keel during the 1963 fiscal
year.
Refunding, or refinancing out
standing bonds against the ferry
system has been done once before.
In 1955 the state floated a $10
million bond issue to refinance the
system's then bonded indebtedness
of $9,218,000.
Some $7,420,000 of the $10 mil
lion in 1955 bonds is still out
standing.
It was in 1957 that the ferry
system was saddled with its big
gest debt.
r
THE CHURCH OF
JESUS CHRIST OF
LATTER DAV SAINTS
(Mormon)
Sunday Services 11:30 aun.
Robert Johnson Residence
Across From Nome School
Telephone — 2402
In that year a $30.5 million bond
issue was sold to improve the sys
tem and construct the Hood Canal
bridge.
That brought the total bonded
debt to its present $37,920,000.
To pay off the debts and operate
the ferry system, the state has
revenue from 21 ferry boats that
ply nine basic ferry runs, plus in
come from the Hood Canal toll
bridge.
The ferry system has 654 full
time employes on the payroll. An
additional 18 employes work at the
bridge.
The financial problems, which
have loomed larger in the past five
years, have given rise to a great
deal of controversy.
Some groups have urged that
bridges be built to replace the
ferryboats. But these groups split
into pro-toll bridge and anti-toll
bridge factions.
Some have called for elimination
of the more uneconomical ferry
runs. But this immediately raises
howls of protest from those who
would lose ferry service.
And away in the background is
muted talk of hiking ferry rates.
The ferry system has from the
beginning been in the thick of po
litical fights, and those who would
have to carry the burden of pro
posing a fare increase hesitate for
fear it would be political suicide.
The ferry system issue has been
blamed in large part for the de
feat in 1948 of Democratic Gov.
Mon Wallgren.
Running for his second term,
Gov. Wallgren announced seven
months before the 1948 election
that he intended to put the state
into the ferry business.
His Republican opponent, Arthur
Langlie, hit hard at the “Wallgren
plan” and won the election.
Four months later Gov. Langlie
signed an order authorizing the
state toll bridge authority to ac
quire the ferry system. The plan
was similar to the one advocated
bv Wallgren, but the price was
less.
On June 1, 1951, the state bought
the Old Black Ball Ferry Line from
its owner, the Puget Sound Naviga
tion Co.
To obtain the $4,944,499 purchase
price, the state floated a $6.8 mil
lion bond issue.
“Bond issue” has since become
a very familiar term in the ferry
system.
Another $500,000 in bonds was
sold in 1952 to buy the Seattle
Ferry Terminal.
In 1953, a $3.8 million bond
issue was sold to buy two used
ferryboats from the State of Mary
land and to build a new 100-car
vessel, the "Evergreen State.”
The 19544 and 1957 multi-million
dollar bond issue followed easily.
The first time George Gershwin
the noted composer, played the
piano in a theater he was laughed
off the stage by both the audience
and his fellow performers. And
who remembers their names now?
OUR SAVIOR'S
LUTHERAN CHURCH
Sth and Bering St.
Reynold F. Wilson. Pastor
SATURDAY
Sr. Luther League 7:30 p.m.
SUNDAY
Sunday School 9:45 a.m.
Morning Worship 11:00 a.m.
Hi Luther League Committee
2:30 p.m.
Evening Service. 7:30 pan.
TUESDAY
Jr. Hi Luther League 7:00 pan.
WEDNESDAY
Mid-Week Meeting
and Prayer 7:30 p.m.
FRIDAY
Sr. Hi Luther League 7:30 pan.
STATE HOUSE . . .
• Continued from Page !•
chorale voters to moke up the bn
district’: 14 seat bloc. They art
Republicans Bruce Kendall, Har
old Strandberg, Jack White, Wm.
Sanders, James Parsons, Bennie
Leonard, Keith Miller and Wm.
Wiggins. Kendall. Strandberg, Bar
sons, Sanders and Leonard are in
cumbents. The Democrats are John
Bader, Karl Hillstrand, Mike
Gravel, Homer Moseley, Carl
Lottsfeldt and Joseph Josephson.
Four Republicans and two De
mocrats appeared sure in the Fair
! banks district with the seventh
scat still in doubt. In were Re
publicans V. Maurice Smith, a
newcomer, and incumbents Cb M.
Binkley. Edgar Baggen and Forbes
Baker; plus Democrats Warren
Taylor, Speaker during th firs
and second legislature and T’ S.
McCombe.
In the Southeast District, m
| curnbent Republicans Wm. B nr-;
; man and Walter Kuble.v of K ’
| chikan and John Longwot
| Petersburg were re-elected, a. \ . . e
Democrats Frank Cashel of Sitka
and Morgan Reed of Skagway,
Democratic incumbent Jalmar
i Kerttula apparently was defeab cl
j by Republican Eugene Reed in
the race for the Palmer-Wassila
! Talkeetna seat bv a count of 1046
: to 982.
And at Seward, Republican
I Carles Cole held a 488 to 440 mar
gin over Democrat Ralph Rider
with all but absentee ballots count
ed.
Re-elected were Democrats
Robert Ditmann of Valdez, Gilbert
Jarvela of Kodiak, Arthur Harris
of Nikolski village, Raymond
Christiansen of Bethel, Robert
Blodgett of Teller and Jacob
Stalker of Kotzebue.
In the Wade-Hampton district.
Democrat Axel Johnson, who had
no opposition on the ballot, poll
ed 254 votes to 206 write-in votes
for Democratic incumbent Scgun
do Llorente who did not file foi
re-election.
Returns were still sketchy and
incomplete from the Bristol Bay
district and the Yukon Kuskok
wim district. Incumbent Republi
can Jay Hammond led Democrat
Carl Nunn and incumbent Demo
crat Grant Pearson led incumbent
Republican Donald Harris.
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THE
BIBLE BAPTIST CHURCH
• SERVICES •
Sunday School 10:00
Morning Worship 11:00
Evangelistic Service 7:00 p.m.
•
Rible Study and Prayer Service
Wednesday — 7 p.m.
•
Boys and Girls Good News Club
Every Thursday and Friday at 4:00
•
Teen-Age Fellowship Every
Saturday Night at 7:30
Bob Leight — Missionary Pastor
STOP!
LOOK!
LISTEN!
★
Nome
City - Wide
Crusade for Christ
Revival Meeting
| # With Evangelist
DON
WHITE
| WILL BE HELD IN THE
j MULTIPURPOSE ROOM
AT THE NOME SCHOOL
★
DECEMBER
3 - 4 - 5 - 6 - 7 - 9
Sponsored by
The Bible Baptist Churches of Alaska
X-l i Rolls Over In
I4."mergencv Ia\n(i in
EDWARDS AIR FORCE EASE.
Calif. A The X-15 rocket plane
lost power high over the desert
; today and rolled over when its
j nose gear collapsed during emer
! gericy landing on a Nevada dry
i lake. The pilot apparently sur
j vived without serious injury.
Space Agency tot pilot John
McKay, flown here after the mis
hap. emerged from the plane in
company with medics “smiling and
talking," according to Air Force
sources.
For nearly an hour and a half
after the X-15 slammed down in
| a huge cloud of dust, his fate had
I been unci rtain.
McKay, 39, father of seven, was
taken to the base hospital for ob
servation.
Officials gave this report on his
condition: Superficial injuries, pos
sible fractured rib.
The tiny rocket research plane
lost power after dropping from a
bomber and McKay had to mak
| an emergency landing at Mud
Lake, Ncv.
The Journal of the American
Medical Assn, notes: “Scientists
| now tell us there are 1.600 things
a married man can worry about:
j a bachelor has only 1.100 things
! to worry about.”
COMMUNITY
METHODIST CHURCH
Howard L. DeVore, Pastor
Phone 2865 or 2277
Church School Classes 10 a.m.
Children, Youth, Adults
11 a.m. Divine Worship with
Rev. D. Blackburn preaching
5 p.m. Pot-luck Supper
6 p.m. Church Conference
7:30 p.m. Vesper Fellowship
and Sing
Ketchikan Bakery Is
Awarded Damages
In Suit Against State
KETCHIKAN iff - A Superior
Court jury tori;iv awarded $33,430
to owners of the Log Cabin Bakery
for damages to property and fix
tures which will result from the
widening of Tongass Ave. The
property owners had asked $102,
000. the state offered .$36,000.
The case was the first involv
ing the principle of eminent do
main heard since statehood, said
A-st. Any. Gen. Leroj Barker of
Juneau. Barker represented the
state and Robert II. Zeigler of
Ketchikan and Jercnua Long of
Seattle the bakery.
Before the state offer, a board
■if commissioners had set the dam
age figure at $33,000.
The trial was the first of sev
t ral scheduled on appeals by pro
perty owners and the state.
"The best way to keep teen
agers out of hot water is to put
•nme dishes in it.”
— Arnold H. Glasgow
Dial 2217
ARCTIC OIL
DELIVERY
—AUTOMATIC SERVICE—
Alexander
utomotive
DIAL 2532
Heuston & Betty Alexander
Miners and Merchants Bank of Alaska
BRANCHES IN KOTZEBUE and BARROW
"THE FRIENDLY BANK”
Full Banking Sorriest to N.W. Alaska Sines 1904