The $1,000 'Good Faith' Check That Became a Prisoner of Its Own Terms
Seattle’s streetcar pioneers petition the City Council to return their forfeited deposit, arguing the project stalled due to circumstances beyond their control. The paper argues they have no moral right to reclaim the money.
The story, cleaned up
A cleaned-up reading of the newspaper page: spelling and layout repaired, one story lifted off a crowded page. It follows the original closely but it is not a transcription. The original page is below; read it if a detail matters.
The stockholders of the Seattle Street Railway and Wagon Company have petitioned the city council for the return of the certified check deposited by them as a guarantee of good faith at the time the ordinance was passed granting them the right to build and operate the streets of the city.
The amount of the check was about $1,000. The company having asked for a franchise must show its financial ability to carry out the plans which it professed to have in view. In answer to this, the members of the enterprise expressed a willingness to deposit a certified check for one thousand dollars with the city treasurer, the conditions being that if they should complete their specific trust the check would be returned to them, while if they did not complete their work the amount for which it called would be forfeited to the city.
The foundation of an enterprise was laid granting the company a valuable franchise, upon the valuation of the road within a certain time. The company, as to its success, left the large check in the hands of the treasurer, under the understanding that it would be forfeited if the terms were not met. The specified time has almost practically expired. The stockholders now cease to hold the money and petition anew for the return of the certified check which they deposited with the treasurer when the prospects for the success of their enterprise seemed better than they do now.
If there is any reason why the check should be returned, it is not set forth in the petition. If there is any reason why the amount it represents should not be forfeited to the city, it is not specified. The company understood thoroughly that the check was placed as a forfeiture and that the company would lose all claim upon it if it failed to build its road within the specified time. It looks like an unmitigated appeal to the public to attempt to escape from the terms of the agreement at this late day.
The one thousand dollars which that check represents is deposited with the city as completely as if it had been paid to the city treasurer for taxes. The company has no moral right to get it back from the men from whom it was received, and the latter have no reason to expect it. They should not have it.
This 1890s dispute over a streetcar franchise deposit mirrors modern debates about developer accountability in Seattle’s housing boom. Just as these early transit investors tried to claw back their 'good faith' deposits after failing to build, today's city council frequently grapples with whether developers who miss affordable housing or infrastructure milestones should face financial penalties or be allowed to walk away from their commitments.
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