- Federal anti-trust laws break up Stone & Webster.
- The Seattle municipal railway system is operating 410 streetcars on 26 electric routes and three cable car lines with a total of 231 miles of track. The city also operates 60 gasoline-powered buses on 18 routes, but the entire system continues to operate at a loss.
- The Overlake Transit Service extends routes to Medina, Bellevue and the south end of Lake Sammamish.
- Seattle voters reject "Beeler Plan" March 9 to replace streetcars with trackless trolleys and buses.
- Seattle & Rainier Valley Railway makes its final run between Seattle and Renton on January 1 after city revokes franchise.
- The financial situation of the municipal railway system is so bad that employees are paid with nickels and dimes straight from the fare boxes.
- North Coast Transportation Company shuts down Seattle-Everett interurban.
- Seattle secures a $10.2 million federal loan to pay off debts, replace streetcars and organize new Seattle Transit System under management of independent Seattle Transportation Commission. The conversion to buses and trackless trolleys begins immediately. Plans made to purchase 235 trolley buses and 102 motor coaches.
- Streetcars are driven to scrap yards and rail lines are pulled up or paved over.
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