One of the largest business transactions completed in this section in some time was consummated the first of the week when negotiations were completed whereby the Carolina-Tennessee Power Company purchased the hydro-electric plant of the town of Murphy. The present consideration was $200,000 and other rights and privileges, which will make the consideration greatly exceed this sum, according terms of the contract, to be made public this week. The mayor and town council have already signed the contract of sale on the part of the town but an election has been called for the purpose of obtaining the approval of the voters of the action of the city officials.
The proposition of selling the power plant on Notla River came up some weeks ago but there was little prospect of a sale until early in the month when President W.V.N. Powelson of the Carolina-Tennessee Power Company approached city authorities and made an offer to purchase the plant. Terms of sale and terms upon which the power company would buy the plant were exchanged between the contracting parties and showed a rather wide difference, but these differences were ironed out at a conference between the mayor and the power company at its New York office and the contract was formally approved by the board of commissioners this week.
The election has been called for December 23rd. For the purpose of the election a new registration is called. T.W. Axley has been appointed registrar and H.D. akin and Sid Pendley judges to hold the election.
By the terms of the contract, the power company obligates itself to pay all interest charges and liquidate all bonds issued for the purpose of building the city power plant and pay the town the difference between the amount of the outstanding bonds and $200,000. The power company also obligates itself to furnish the city free street lights for a period of sixty years, which is the length of the franchise granted the power company by the city. The power company is to make bond to guarantee its faithful performance of its part of the contract.
The city plant consists of a certain dam on Notla River, about three miles from the city power house, generators of approximately 500 horsepower capacity, riparian and other rights along the river, transmission lines, meters, poles, and other equipment necessary in the generating and distribution of electrical energy. Along with the plant, the Carolina-Tennessee Power Company received a franchise to use the city streets for a period of 50 years for poles and transmission lines and all contracts the city has for supplying electrical energy. The sale of the plant will become effective January 1, 1925, if the voters approve of the sale, and there is every indication that such will be the case.
The sale of this plant has much more significance than appears on the surface. It means the active entrance of New York capital int this area and will no doubt hasten the development of the Hiawansee River down which are ?? daily thousands of horsepower of energy awaiting to be harnessed and put to work. The Carolina-Tennessee Power Company has been in this field for 10 . . . . (can’t read several lines) right to develop the river. The purchase of the power plant of the town, it is believed here, is the first step toward getting under way huge developments down the Hiawassee river. It is believed that power from the Notla dam will be used in constructing the first large dam down the Hiawassee. This will be of tremendous benefit to Murphy and Cherokee County and this whole section as it will undoubtedly bring in other industries and create much taxable wealth in the county, utilize our natural resources and furnish labor to many of our people. The Carolina Tennessee Power Company is a North Carolina corporation owned by New York capital.
The city power plant was constructed in 1919 and 1920 and generates about 500 horsepower of electrical power. It is expected that its capacity will soon be increased by the new owners.
From the front page of the Cherokee Scout, Murphy, N.C., Friday, November 21, 1924
newspapers.digitalnc.org/lccn/sn83004710/1924-11-21/ed-1/seq-1/#words=NOVEMBER+21%2C+1924
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