After the railway was built to Konya, the problem of passenger and freight transportation between the train station and the city arose. Because the train station was 3-4 kilometers outside the city. Over time, the goods that were unloaded at the station during the day or at night did not fit into the existing warehouses and formed heaps outdoors. In addition, passengers arriving at night would wake up in the passenger waiting room when they could not find a place to stay, as the hotels around the station were full.
At that time, between the station and the city, there were single-horse spring carriages that only operated during the day, and phaetons for passengers with better financial status. For the transportation of goods, there were four-wheeled horse-drawn carriages that worked during the day, made round trips and pulled by two horses.
These coachmen received a negotiated fee for the service they rendered. However, these fees were so high that they almost approached the transportation fee of the goods brought from Haydarpaşa to Konya. The same was true for passenger carriages. If a passenger coming from Akşehir or Sarayönü came to Konya Train Station for 20 money, he would pay 30 money at the station to go to the city.
Establishment of the Municipality Horse Tram Company Having learned about the transportation problem in Konya, the producers of the İzmir Electric Tramway Facility, Yusuf Mazhar, Yaruba Kapulu and German citizen Ogüst İztor, stated that they could solve this problem by applying to the Konya Municipality. If they are given a 99-year concession in their solution proposals, they can increase it to 20 km by generating electricity in a center to be established next to the Konya Government Building. that they can distribute in an area around 30km. They said that they will be able to establish an electric tram facility in length and expand the distribution area of the electricity they produce in the future. In return, they stated that they could give 300 liras to charities or the Hamidiye-Hicaz railway and 200 liras to the Konya Municipality.
Evaluating the situation, Konya Municipality cooperated with the province. An application was made to the Ministry of Commerce and Agriculture, with the thought that such a benevolent enterprise is of great importance as an indicator of the progress and development of Konya, which is in the fertile parts of Anatolia.
Evaluating the issue, the Ministry of Commerce and Agriculture and the Ministry of Public Works sent this file, which they welcomed, to the Grand Viziership, and the Grand Viziership to the Council of State to investigate the situation in terms of laws. As a result of the evaluation made in the Council of State Tanzimat, it was decided that the concession should be given to the merchant from İzmir and the license to the Municipality. Its decision, which was approved by the Majlis-i Vükela, was also approved by the sultan on February 16, 1321 (March 1, 1906). The file, whose will was issued, was sent to Konya by the Ministry of Trade and Agriculture on February 25, 1321 (March 10, 1906).
However, the concession of the electric lighting of Konya and the electric tram facility was canceled shortly after, due to high cost.