LETTERS TO THE EDITOR: RIVERBOAT BACKERS CORRECT THE FACTS

To the Editor:

"Here we go again..." indeed! As Mark Twain once humorously observed, "The truth is a precious thing, use it sparingly." Such is the case of riverboat opponent Dr. Richard Martin and his recent letter to the editor. Unfortunately, this is no laughing matter. The economic future of our city is at stake. To allow these continued distortions of the facts to go unchallenged is unthinkable.

For those who did not read Martin's article in the Southeast Missourian or attend the League of Women Voters debate or listen to Martin on the radio, here is his fictitious scenario: "Profit (from the operation of the riverboat) for Las Vegas operators is $45 million"; that there will be only "2 percent of the profit for the city" and "98 percent loss to Southeast Missouri Heartland."

He further states, "The profit for La Vegas per year equals the cost of the new Missouri-Illinois bridge."

To these gross exaggerations we have a simple response -- bunk!

What Martin has chosen to do repeatedly is substitute the term "profit" for "gross receipts from gambling," and imply that the vast majority of the $45 million generated from the riverboat will be going out of town. This simply isn't true. Out of the $45 million in gross receipts from gambling, Cape will receive much more than the 2 percent conceded by Martin.

As anyone should know, a business does not keep all of the money it receives as income (gross receipts). Every business has expenses that must be paid for out of the income received. What is left after these expenses is commonly known as profit.

As with the riverboat, out of the $45 million in gross receipts must come wages for some 800 people, wages estimated to total $16.1 million annually along with employment benefits of $6.5 million. Wages and benefits to people in Cape Girardeau. Wages that they will in turn spend in Cape Girardeau.

Also, out of the $45 million in gross receipts must come inventory and operating supplies estimated a $11.7 million in the first year of operation, many of these purchases will generate income for local individuals and business such as food and beverage suppliers.

Other items that must come from the $45 million are repair and maintenance ($1 million), fuel ($500,000), and utilities ($400,000).

Out of the $45 million, by law, must come $8.1 million to the state's educational fund. Out of the $45 million must come the City of Cape Girardeau's $900,000 share of gross receipts as well as another $1 million to the city from the boat's per capita tax.

Further, out of the $45 million must come an estimated $360,000 annually in real property tax that goes directly to Cape city schools, money that we need to improve our deteriorating school buildings.

So, to refer to the $45 million in gross receipts as "profit" is, to say the least, incorrect.

Martin's biological analogy of a riverboat as a parasite also completely misses the mark. As any student knows, a parasite gives nothing back to its host. It only takes to it own advantage. By providing 800 jobs and over $10 million in state and local tax revenues anyone can clearly see this relationship as symbiotic, not parasitic. Symbiosis is the relationship of two organisms (in this case, the Boyd Group and the city of Cape Girardeau) in close association for mutual benefit.

As to the notion that the profits will he leaving Cape Girardeau, we would ask -- Where do the profits from Walmart, K-Mart, Sears and JCPenney go? Where do the profits from Procter and Gamble, Lone Star, Biokyowa and Thorngate go? Of course, the profits from all these companies leave Cape, but in the meantime Cape reaps the benefits from them all in the form of jobs -- jobs for the people who work for these companies in addition to the good and services provided by them for our economy.

Why does Cape need more jobs? Ask the people who used to work for Central Hardware and Exchange Bank why we need more jobs. Ask the people who lost their home or business to the flood why we need jobs. Count the empty building on Broadway and Main Street to see why we need job. Cape Girardeau and Southeast Missouri State University haven't grown in the last 20 years. Both need jobs to do that.

Why do we need jobs to increase enrollment at the university? Simple. Few people today can afford the cost of higher education out of pocket. Therefore, students must work to support themselves while they go to school. If there are no jobs available, they must go to Springfield, Carbondale or Columbia or wherever jobs are available.

In a study conducted by Pauline Fox, professor of economics, she estimates, considering the fact that money in the form of wages and goods and services turns over several times within a local economy, that the riverboat will result in a total economic impact of $148.6 million for our area during the first year of operation alone.

As a spokesman for the opposition, Dr. Martin should strive for a more accurate portrayal of the facts. The people on both side of this issue deserve the facts. Like it or not, the riverboat will have a positive economic impact on our city. The riverboat will bring much more money to Cape Girardeau than it takes away. We are in need of the opportunity and jobs the riverboat will provide.

Don't just vote Yes on Nov. 2. Vote Yes because you understand the facts.

DAVID KNIGHT

CHUCK MCGINTY

TOM MOGELNICKI

EVELYN BOARDMAN

KENT ZICKFIELD

The Yes Group directors

Cape Girardeau