Concord’s Street car service ended at midnight Saturday and so far as is known now the service is ended for good. Services on the local lines of the North Carolina Public Service Co. was suspended on orders for the main offices of the company, sent to J.A. McEachern, manager of the plant here.
Mr. McEachern received his orders Saturday afternoon and the last run of the cars was made that night, the orders to Mr. McEachern indicating that so far as the North Carolina Public Service Company is concerned the line will not be operated again.
Suspension of the service did not come as a surprise due to the fact that aldermen of the city at their August meeting were advised by a representative of the public service company that the line here was being operated at a loss of about $7 a day and that the company would be forced to cut out this loss. Mayor C.H. Barrier at the meeting appointed a committee to make inquiry into the value of the company’s plant and also to ascertain whether the city could operate the line.
The committee has given thought to the matter but it is understood that it has not yet reached a definite decision as to what should be done. The Public Service company owes the city of Concord about $33,000 for street paving and interest, and the committee appointed by Mayor Barrier is understood to have devoted its conferences and study to means of securing at least part of this money from the company’s equipment and property in Concord. It is also understood that the company’s plant here is heavily mortgaged, but Concord’s claim is understood to come first, and if the property and equipment are sold the city is expected to get the major portion of the proceeds from the sale. However, it is said by persons who know something of the value of the company’s equipment and property that the value of these is not enough to cover the company’s debt to the city, to say nothing of any mortgages held by other parties.
The street car system has never been a paying proposition in Concord, according to various reports made to city officials by the public service company. For a number of years the company has operated without loss, but during the past six years, at least, expenses have been more than receipts and it has been known that the company was anxious to dispose of the property or cease operations.
Soon after the World War the fair on the line here was raised to 7 cents, but the increases did not raise enough revenue to make the line a paying proposition. The company has maintained that the street assessments could not be paid because the property here was a liability instead of an asset. However, the company always paid its taxes and for that reason its properties in other cities outside of Concord cannot be touched by the city in its efforts to get the $33,000 debt.
It is said equipment of the company here is in bad repair, requests for new equipment having been refused due to the fact that the company was contemplating suspension of the line here.
A storage battery car, said to have been the first in the South, was sent to Concord when the public service company started its schedule in the city. Later this car was abandoned and a trolley system was installed, such as are used in other cities.
The lines of the company extend from the depot of the southern Railway Company to the Gibson Manufacturing Company, and to a point on South Union street near the home of J. Leonard Brown. The South Union street line has not been operated for several years, however, its schedule having been suspended by request of the company which stated that only a few persons ever used the system from the square to its terminal on South Union street.
The committee appointed by Mayor Barrier to make a study of the system here probably will report at the September meeting and it is understood that nothing will be done until the committee is ready to report. It is also understood that the committee plans a conference with officials of the public service company relative to the $33,000 debt.
As the tracks of the street car system are on paved streets, it is believed they will be left, as repairs to the streets caused by their removal would cost more than the rails would bring.
The committee appointed to study the matter by the city is composed of Mayor Barrier, Aldermen Howard and Hahn and City Attorney J. Lee Crowell. While this committee has not yet completed its work, it was stated by one of its members this morning that one proposal has been agreed on by the members, this being that the city will square off accounts with the public service company if the latter will turn over to the former all of its real and personal property in Concord.
“I am not at all certain the company can or would do this,” the committee member stated, “but I am reasonably sure the committee would make the proposal. I have been informed that certain mortgages are held against the property and these mortgage holders probably would not cancel them unless paid and the company probably will not pay them. However, this proposal has not been made to the company yet, although it probably will be, and if it is not accepted we hope to have something else to offer that will be advantageous to Concord.”
Mayor Barrier was notified of the suspension of the street car service in the following letter from Stahle Linn of Salisbury, representative of the public service company:
“I regret to advise you that the management of the North Carolina Public Service Company finds it necessary to discontinue trolley service in Concord after Saturday, the 22nd, instant. This action is made necessary by the condition of the property and our fear that some serious accident might result from our attempt to continue service under the existing circumstances.
“We trust that you and your board will understand that this action is advisable both for our protection and that of the city. We regret the unfortunate position in which we find ourselves and if your committee recently appointed by you can find a solution of the matter, we will be very happy to assist in its consummation.”
Mayor Barrier stated this morning that the committee would continue its study of the matter with the hope that a solution favorable and just could be reached.
From the front page of The Concord Times, Monday, August 24, 1925
newspapers.digitalnc.org/lccn/sn91068271/1925-08-24/ed-1/seq-1/
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