The Columbus dispatch. (Columbus, Miss.) 19??-1922, 1920-01-25
STREET CAR LINE
Is ABANDONED
COMPANY THROWS UP
FRANCHISE AND LINES
ARE ABANDONED.
WILL SELL OUTFIT
Line Was Non-Revenue Produc-
ing And Liability On Com
pany-PrOmise Better
Service at Lower Rates

The expected has happened. The
past week the Columbus Railway
Light and Power Company decided to
abandon street car service in Colum-
bus and throw up its trolley line
franchise.
The throwing up of the car line
franchise does not in any way affect
the contract the company has with
the city for furnishing light and gas
utilities.
Mr.. r. b. Claggett, Of Greenville,
general manager of the company,
came to Columbus the past week and
made final arrangements for the clos
ing of the car service. The service
had been abandoned several days ago
when work of taking up certain lines
was undertaken.
1t is understood that the ear line
equipment will be sold, and so far as
the company is concerned .he abandon
ment of the service is permancnt.
Mr. Claggett, general manager of
the company issued the following
statement:
The Columbus, Railway, Light and
Power Co., like hundreds of other
properties in small cities, notably
Jackson and Nstehez, in this state
which are already in the hands of re.
ceiyers, was confronted with two
propositions as solution of the di-
lemma it finds itself in as a result
of the increased costs of all elements
entering into the operations of it's
holdings here. One course was re-
ceiver of all its franchises and prop
critics here. The other the surrender
.of it's car line franchise, the dismem-
.berirg.of its Fvgtemof ears and lines,
selling the same and applying the
proceeds toward the reduction of its
bonded indebtedness. AT a meeting
of the stockholders in Memphis the
Columbus situation was the subject
of an exhaustive investigation and
the latter course was agreed upon as
the best solution of our troubles.
Permission of all stockholders and
bondholders was asked and it has teen
agreed to by all of the large holders
in this and other cities and the car
line will be discontinued, its equip
ment sold and. the proceeds of the
sale deposited with the trustees of the
bonds to be applied for the benefit Of
all bondholders. In this way our bond
ed Indebtedness will be reduced, the
loss of revenue through the operation
of the system will be saved and the
light and gas systems will be safe
guarded with better service assured
and lower rates promised if no in
creased cost of operation is incur
red.
Our company regrets the course it
has been forced to pursue. Lack of
patronage due to the ever increasing
use Of the automobile has caused the
car line to be run at tremendous
loss and necessitated its discontinue
ance Financial ruin stared us
in the face if the present situation
continued. Never a paying prop
ositon under normal conditions,
under the increased lining and
operating scale the maintenance of
the car line was steadily impair
ing the financial integrity of all our
properties. Our solution here is sim
liar to the hundreds Of smaller cities
where properties are in the hands
Of receivers and whose car line fran
chises have been surrendered. We
hope that the people Of Columbus,
whose generous support and good
will has been extended US at all times
will agree in this arrangement and
will endorse this move for the pro-
/ lection Of our properties and the inn
provement Of the other branches of
our service.